CHAPTER-1

INTRODUCTION TO THEME

1.1 Executive Summary

India needs to create 1-1.5 crore jobs per year for the next decade to provide gainful employment to its young population. Accelerating entrepreneurship and business creation is crucial for such large-scale employment generation. Moreover, entrepreneurship tends to be innovation-driven and will also help generate solutions to Indias myriad social problems including high-quality education, affordable health care, clean energy and waste management, and financial inclusion. Entrepreneurship-led economic growth is also more inclusive and typically does not involve exploitation of natural resources.

Large Indian businesses both in the public and private sector have not generated significant employment in the past few decades and are unlikely to do so in the coming decade or two. Public sector and government employment has declined in the last few years, and is expected to grow very slowly in the coming years. Large private sector firms have also been slow in generating employment, which is unlikely to change due to increasing automation, digitization, and productivity gains. For example, the banking sector in India has recorded almost no employment growth in the last two decades despite multifold growth in its revenue and assets. Agriculture employs nearly a half of Indias work force but employment is likely to decline in this sector, due to improvements in productivity.

India is an entrepreneurial country, but its entrepreneurs have had to struggle to create and grow their business ventures. There is, however, a growing group of first-generation Indian entrepreneurs the founders of companies such as HCL, Cognizant, Infosys, Bharti and others that have generated large scale employment and significant wealth. They and others such as IndiaBulls, Makemytrip and Naukri have also demonstrated value creation through a public listing. These successes have encouraged a new breed of entrepreneurs especially in the internet and e-commerce space. Indias entrepreneurial growth can be accelerated by creating more conducive conditions a catalytic government and regulatory environment, adequate capital flows (both debt and equity), support from businesses and society, and availability of appropriate talent and mentoring. Such an environment could replicate the success demonstrated by the Indian Information Technology (IT) and IT enabled services (ITES) industry over the last two decades. Starting in the early 1990s, the industry now directly employs 28 lakhs and indirectly an additional 89 lakhs people. Its revenues have grown from Rs. 350 crore in 1990 to Rs 4.5 lakhs crore in FY 2012. Several leading companies in this industry started as first-generation entrepreneurial ventures. By 2020, the IT and ITES industry is projected to contribute 9% of GDP with a revenue of over Rs 12 lakhs crore and direct and indirect employment to 30 million people. India has the potential to build about 2,500 highly scalable businesses in the next 10 years and given the probability of entrepreneurial success that means 10,000 start-ups will need to be

spawned to get to 2,500 large-scale businesses. These businesses could generate revenues of Rs10 lakhs crores a contribution to GDP and creation of employment at the same scale as projected for IT and ITES industry. Experience across countries suggests that vibrant entrepreneurial activity significantly improves social harmony, living standards, and quality of life. However, there are significant roadblocks that hold back and dampen entrepreneurial activity in India. The country ranks low on comparative ratings across entrepreneurship, innovation and ease of doing business. The ecosystem for starting and running new ventures has many gaps. Regulations and procedures are restrictive and time-consuming and add significant cost for an emerging venture. Banks and financial institutions are wary of lending to firstgeneration entrepreneurs and to MSMEs in general, due to various norms like tangible asset coverage, DER etc., even though such enterprises make a major contribution to the economy, employment, and exports. This imposes constraints on their credit absorption capacity and consequently, growth. Established businesses have generally been passive in engaging with emerging ventures. Educational institutions are yet to actively promote entrepreneurship over careerism. Lack of Collaboration between all stakeholders leads to further roadblocks.

The words entrepreneurs, intrapreneurs and entrepreneurship have acquired special significance in the context of economic growth in rapidly changing socio-economic and sociocultural Climates, particularly in industry, both in developed and developing countries. Entrepreneurial development is a complex phenomenon. Entrepreneurship is the lifeblood of any economy, more so in the developing economy. In India entrepreneurism is in its cultural ethos. Entrepreneurship and enterprises are a continuous process and it is growing from centuries to centuries.

The entrepreneurs journey proceeds from idea generation to venture formation to scaling up a business.

1.2 Introduction
The word entrepreneur is derived from the French verb enterprendre. It means to undertake. The Frenchmen who organized and led military expeditions were referred to as entrepreneurs. It was extended to cover civil engineering activities such as construction in 17th century. But it was Richard Cantillon, an Irishman living in France who first used the term entrepreneur to refer to economic activities. According to Cantillon An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain prices. There are many views and opinions on the concept of entrepreneurship forwarded by some of the world famous management gurus and economists as mentioned below which will help in understanding this concept Oxford Dictionary A person who sets up a business or businesses, taking on financial risks in the hope of profit. International Encyclopedia An individual who bears the risk of operating a business in the face of uncertainty about the future conditions. According to F.A.Walker: Entrepreneur is one who is endowed with more than average capacities in the task of organizing and coordinating the factors of production, i.e. land, labour capital and enterprises. Schumpeter's Definition The entrepreneur in an advanced economy is an individual who introduce something new in the economy- a method of production not yet tested by experience in the branch of manufacturing, a product with which consumers are not yet familiar, a new source of raw material or of new markets and the like.
Druckers Views on Entrepreneur An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different service.

Adam Smith The entrepreneur as an individual who forms an organization for commercial purpose. He is proprietary capitalist, a supplier of capital and at the same time a manager who intervenes between the labor and the consumer.

Entrepreneur is an employer, master, merchant but explicitly considered as a capitalist

CHAPTER -2
OBJECTIVES OF STUDY AND REASERCH METHOLDOGY

2.1 Objectives of Research

To Understand the Brief Meaning Of Entrepreneurship. To understand the model of Indian Entrepreneurship. To be aware of the different types of Entrepreneurship.

2.2 Research Methodology

The research methodology used for this research project is as follow: The information has been collected from internet and the attempt has been made to give latest trend and statistics. 50 entrepreneurs and aspiring entrepreneurs have agreed to present their opinion on Indian entrepreneurship. This is the backbone of this research project. The attempt has been made to provide the support of pictures collected information and graphs for statistics

CHAPTER -3
THEORIES OF ENTREPRENEURSHIP

3.1 Economist point of view

According to economist entrepreneurship and economic in those situation where particular economic conditions are most favorable. Entrepreneur connects different markets he is capable of gap-filling he is input completer and he creates or expands things. Small industry is a natural habitat of the entrepreneur where his role is like of a striker who keeps the fire burning. The entrepreneurship development in a particular country largely depends upon the economic policy, programme and economic environment of that country.

3.2 Sociologists point of view

It emerges under specific social culture. According to sociologist special sanction cultural value and role expectations are responsible for the emergence of entrepreneurship. Society values are most important determents of attitude and role expectation. Sociologists considers the entrepreneurs as role performer corresponding to the role expected by the society. According to sociologists the function of entrepreneur is to coordinate at every stage i.e., beginning, maintenance and expansion. Every entrepreneur needs two qualities they are optimistic outlook and dynamism e.g. Protestant ethic from west emerged as a new class of industrialist. Halai Memon industrialist from Pakistan. Marwaris & Parsis from India.

3.3 The Psychologists view

It is more likely to emerge when a society has sufficient supply of individuals possessing particular psychological characteristic. Its the high need of achievement which drives people towards entrepreneurial activity. Individual with high achievement motive tend to take keen interest in situation of high risk desire for responsibility and desire for task performance. Frank young describes an entrepreneur as a change agent. T.V. Rao describes entrepreneurship as a creative environment. and innovative response to

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CHAPTER -4
BACKGROUND OF ENTREPRENEURSHIP IN INDIA

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4.1 History of Entrepreneurship in India

The history of entrepreneurship is important worldwide, even in India. In the pre colonial times the Indian trade and business was at its peak. Indians were experts in smelting of metals such as brass and tin. Kanishka Empire in the 1st century started nurturing Indian entrepreneurs and traders. Following that period, in around 1600 A.D., India established its trade relationship with Roman Empire. Gold was pouring from all sides. Then came the Portuguese and the English. They captured the Indian sea waters and slowly entered the Indian business. They forced the entrepreneurs to become traders and they themselves took the role of entrepreneurs. This was the main reason for the downfall of Indian business in the colonial times which had its impact in the post-colonial times too. The colonial era make the Indian ideas and principles rigid.

A region of historic trade routes and vast empires, the Indian subcontinent was identified with its commercial and cultural wealth for much of its long history. Gradually annexed by the British East India Company from the early eighteenth century and colonized by the United Kingdom from the mid-nineteenth century, India became an independent nation in 1947 after a struggle for independence that was marked by widespread nonviolent resistance. It has the world's twelfth largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed it into one of the fastest growing economies however, it still suffers from high levels of poverty, illiteracy, and malnutrition. For an entire generation from the 1950s until the 1980s, India followed socialistinspired policies. The economy was shackled by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. Since 1991, the nation has moved towards a market-based system Entrepreneurship is the result of three dimensions working together: conducive framework conditions, well-designed government programmes and supportive cultural attitudes. Across these three perspectives of entrepreneurship, two major conclusions are apparent. Firstly, the economic, psychological and sociological academic fields accept that entrepreneurship is a process. Secondly, despite the separate fields of analysis, entrepreneurship is clearly more than just an economic function.

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4.2 Economy of India before British-Raj

The Indian economy in the pre-British period consisted of isolated and self-sustaining villages on the one hand, and towns, which were the seats of administration, pilgrimage, commerce and handicrafts, on the other. Means of transport and communication were highly underdeveloped and so the size of the market was very small.

4.3 Industries and handicrafts in pre-British India

The popular belief that India had never been an industrial country is incorrect. It was true that agriculture was the dominant occupation of her people but the products of Indian industries enjoyed a worldwide reputation. The muslin of Dacca, the calicos of Bengal, the sarees of Banaras and other cotton fabrics were known to the foreigners. Egyptian mummies dating back to 2000 B.C. were wrapped in Indian muslin. Similarly, the muslin of Dacca was known to the Greeks under the name Gangetika. The chief industry spread over the whole country was textile handicrafts. The high artistic skill of the Indian artisans can be visualised from this account given by T.N. Mukherjee : "A piece of the muslin 20 yards long and one yard wide could be made to pass through a finger ring and required six months to manufacture." Besides the muslins, the textile handicrafts included chintzes of Lucknow, dhotis and dopattas of Ahmedabad, silk, bordered cloth of Nagpur and Murshidabad. In addition to cotton fabrics, the shawls of Kashmir, Amritsar and Ludhiana were very famous. Not only that India was also quite well-known for her artistic industries like marble-work, stone-carving, jewellery, brass, copper and bell-metal wares, woodcarving, etc. The cast-iron pillar near Delhi is a testament to the high level of metallurgy that existed in India.

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The Indian industries "not only supplied all local wants but also enabled India to export its finished products to foreign countries." Thus, Indian exports consisted chiefly of manufactures like cotton and silk fabrics, calicos, artistic wares, silk and woolen cloth. Besides, there were other articles of commerce like pepper, cinnamon, opium, indigo, etc. In this way, Europe was a customer of Indian manufactures during the 17th and 18th centuries. It was this superior industrial status of India in the pre-British period that prompted the Industrial Commission (1918) to record: "At a time when the West of Europe, the birth place of modern industrial system, was inhabited by uncivilized tribes, India was famous for the wealth of her rulers and for high artistic skill of her craftsmen. And even at a much later period, when the merchant adventures from the West made their first appearance in India, the industrial development of this country was, at any rate, not inferior to that of the more advanced European nations."

4.4 Decline of Indian handicrafts and progressive realization of the Indian economy
Before the beginning of Industrial Revolution in England, the East India Company concentrated on the export of Indian manufactured goods, textiles, spices, etc., to Europe where these articles were in great demand. The Industrial Revolution reversed the character of India's foreign trade. Tremendous expansion of productive capacity of manufactures resulted in increased demand of raw materials for British industry and the need to capture foreign markets. As a first step, attempts were made to restrict and crush Indian manufactures. On the other hand, efforts were made to commercialise agriculture so as to step up the export of raw materials. The Indian textile handicrafts were the first to be hit. The decline of this industry started a chain reaction leading to the speedy decline of other handicrafts. The process of decline of handicrafts was accelerated by the development of means of transport. The principal causes that led to the decay of handicrafts were as follows: Disappearance of the Indian royal courts who patronized the crafts earlier. The lukewarm attitude of the British colonial govt. towards the Indian crafts. Imposition of heavy duties on the imports of the Indian goods in England. Low priced British made goods produce on large scale which reduced the competing capacity of the product of the Indian handicrafts Development of transport in Indian facilitating the easy access of British product even to far-flung remote part of the country. Changes in the tastes and habits of the Indian, developing craziness of foreign products. Unwillingness of the Indian craftsmen to adapt to the changing tastes and needs of the people

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4.5 Nature of Unemployment in India

India is a developing economy, the nature of unemployment, therefore, sharply differs from the one that prevails in industrially advanced countries. Lord Keynes diagnosed unemployment in advanced economies to be the result of a deficiency of effective demand. It implied that in such economies machines becomes idle and demand for labour falls because the demand for the products of industry is no longer there. Thus Keynesian remedies of unemployment concentrated on measures to keep the level of effective demand sufficiently high so that the economic machine does not slacken the production of goods and services.

This type of unemployment caused by economic fluctuations did arise in India during the depression in the 1930s which caused untold misery. But with the growth of Keynesian remedies, it has been possible to mitigate cyclical unemployment. Similarly, after the Second World War, when war-time industries were being closed, there was a good deal of frictional unemployment caused by retrenchment in the army, ordnance factories, etc. These workers were to be absorbed in peacetime industries. Similarly, the process of rationalization which started in India since 1950, also caused displacement of labour. The flexibility of an economy can be judge from the speed with which it heals frictional unemployment. But more serious than cyclical unemployment or frictional unemployment in a developing economy like India is the prevalence of chronic under- employment or disguised unemployment in the rural sector and the existence of urban unemployment among the educated classes. It would be worthwhile to emphasize here that unemployment in developing economies like India is not the result of deficiency of effective demand in the Keynesian sense, but a consequence of shortage of capital equipment of other complementary resources.

4.6 Process of industrial-transition in India

The process of industrial transition in the British period is broadly divided into industrial growth during the 19th century and industrial progress during the 20th century. It was mainly the private sector whether indigenous or foreign that carried industrialization forward. Only after the First World War some protection was granted to Indian industries otherwise Indian industry had to weather all storms and face world competition on its own strength. This explains the slow growth of industrialization.

Private enterprise and industrial growth in the 19th century: The outstanding industrial events of the 19th century were the decline of indigenous industries and the rise of large-scale modern industries. This change was brought about by private enterprise. The rise of large-

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scale industries was slow in the beginning but by the close of the 19th century, the movement was more rapid. The period 1850 to 1855 saw the establishment of the first cotton mill, first jute mill and the first coal mine. In the same period, the first railway line was laid in India. In a period of 25 years, that is, by the last quarter of the 19th century, there were 51 cotton mills and 18 jute mills. During the same period, India produced one million tons of coal per annum and the Indian railways had a mileage of 8,000. By the end of the 19th century there were 194 cotton mills and 36 jute mills, and coal production had risen to over 6 million tons per annum. In spite of the very rapid increase in industrialization and the fact that the foundations for the development of modern industries for the utilization of coal and iron resources were laid by the end of the 19th century. During the 19th century, it was but natural that British business should pioneer industrial enterprise in India. The Britisher had experience of running industries at home. British enterprise received maximum state-support. Besides, much of the business developed in India was related either to the Government or interests in some way connected with Britain.Though industrialization was started by the British in the 19th century, the Britishers were more interested in their profit and not in accelerating the economic growth of India.

Apart from the British, the Parsis, the Jews and the Americans were also prominent first as merchants and later as industrialists. They were close-knit and highly progressive communities. The Parsis were particularly progressive to rapidly adopt European busine

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CHAPTER-5
SIGNIFICANCE OF ENTREPRENEURSHIP

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5.1 Significance Of Entrepreneurship

The world is experiencing one of the most extraordinary periods in history. The power equation continues shifting across countries and regions, while rapid changes unfold in the marketplace, reshaping both the political landscape and the interactions between governments and businesses. The financial crisis, combined with rising inflation and the consequent slowdown in global demand, has engendered significant insecurity about the outlook of the world economy, and increased anxiety about its potential implications on the accomplishment of the Millennium Development Goals by 2015. On the other hand, India has been one of the fastest growing economies of the past decade. Indian economic growth has been characterized by multifaceted development increases in production have been consistent and robust, and the economy has displayed clear indicators of shifting from an agrarian one to one in which services like business services, banking, communications, etc. play a major part. Growth has been fueled, in part, by rising exports exports grew by more than 180% over the last decade, and exports of manufactured goods, in particular, now account for more than half of the foreign trade. More encouragingly, a strong rise in domestic demand has played a major role in this growth.

Entrepreneurship is driving growth everywhere from Israel to Ireland, Taiwan to Turkey, and, of course, in India and China. Even the mature economies of the Old World long enamored of central planning and tight coordination between big business and big government are getting into the act. Carl J. Schramm.

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CHAPTER-6
ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

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Entrepreneurship helps in the process of economic development in the following ways :

1) Employment Generation : Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment.

2) National Income : National Income consits of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurers are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income.

3) Balanced Regional Development : The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development . When the new entrepreneurers grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions. 4) Dispersal of economic power : Industrial development normally may ledS to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurers helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly.

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5) Better standards of living : Entrepreneurers play a vital role in achieving a higher rate of economic growth. Entrepreneurers are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements.When the price of of the commodies decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people.

6) Creating innovation : An entrepreneur is a person who always look for changes. apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always try to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation. Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short, the development of the entrepreneurship is inevitable in the economic development of the country. The Role played by the entrepreneurship development can be expressed in the following words : " Economic development is the effect for which entrepreneurship is a cause "

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CHAPTER-7
SMALL SCALE ENTREPRENEURSHIP IN INDIA

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Journey of Thousand Miles Begins With a Single Step.

7.1 Introduction
A common classification is between traditional small industries and modem small industries. Traditional small industries include khadi and handloom, village industries, handicrafts, sericulture, coir, etc. Modern small-scale industries produce wide range of goods from comparatively simple items to sophisticated products such as television sets, electronics control system, various engineering products, particularly as ancillaries to the large industries. The traditional small industries are highly labour-intensive, while the modem small-scale units make use of highly sophisticated machinery and equipment. For instance, during 1979-80 traditional small industries accounted for only 13 per cent of the total output but their share in total employment was 56 per cent. In that year, total output of traditional small industries came to be Rs. 4,420 crores and this output was produced with the employment of 133 lakh workers, the average output of labour in traditional small industries was roughly Rs. 3,323. As against this, the share of modem small industries in the total output of this sector was 74 per cent in 1979-80 but their share in employment was only 33 per cent. Obviously, these industrial units would be having higher labour productivity. For instance, in 1979-80 a total output of Rs. 24,885 crores was produced by 78 lakh workers in modem small-scale industries-the average product of labour being Rs.31,900. One special characteristic of traditional village industries is that they cannot provide full time employment to workers, but instead can provide only subsidiary or part-term employment to agricultural labourers and artisans. Among traditional village industries, handicrafts possess the highest labour productivity; besides, handicrafts make a significant contribution to earning foreign exchange for the country. Under these circumstances, active encouragement of handicrafts is a must. On the other hand, traditional village and small industries are largely carried on by labourers and artisans living below the poverty line, while modem small industries can provide a good source of livelihood. Hence, if with an expansion of employment, the number of persons living below the poverty line has also to be reduced, then a rapid and much larger expansion of the modem small sector will have to be planned.

7.2 Small sector industrial policy

The Government announced its policy towards the small sector on 6th August 1991. The main features of the Policy were: The small-scale Industrial Sector has emerged as a dynamic and vibrant sector of the economy during the eighties. At the end of the Seventh Plan period, it accounted for nearly 35 per cent of the gross value of output in the manufacturing sector and over 40 per cent of the total exports front the country. It also provided employment opportunities to around 12 million people.

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The primary objective of the Small Sector Industrial Policy during the nineties was to impart more vitality and growth impetus to the sector to enable it to contribute its mite fully to the economy, particularly in terms of growth of output, employment and exports.

7.3 Role of small-scale industries in Indian economy

The small-scale industrial sector which plays a pivotal role in the Indian economy in terms of employment and growth has recorded a high rate of growth since Independence in spite of stiff competition from the large sector and not so-encouraging support from the Government. This is evidenced by the number of registered units which went up from 16,000 in 1950 to 36,000 units in 1961 and to 33.7 1akh units in 2000 - 2001. During the last decade alone, the small-scale sector has progressed from the production of simple consumer goods to the manufacture of many sophisticated and precision products like electronics control systems, micro-wave components, electro-medical equipment, T.V. sets, etc. The Government has been following a policy of reservation of items for exclusive development in the small-scale sector. At the time of the 1972 Census of a Small - Scale Industrial Units, there were 177 items in the reserved list. By 1983, the reserved list included 837 items for exclusive production in the small-scale sector. These units produce over 8,000 commodities. Census 2010-11 reported that 97.2% of the registered SSI units were proprietary, only 1.3 percent were partnerships and 0.5 per cent were private companies and just 0.1% were cooperative. In other words, the dominant type in the ownership pattern is proprietary with a small fraction operating as partnerships.

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7.4 Output and Employment of the Small Industries

According to the Third Census, in 2001-02, there were 13.75 lakh units in the registered sector and 91.46 lakh units in the unregistered sector, thus recording a total number of 105.21 lakh units in the SSI sector. Ironically, the Census estimated a much lower figure of production by SSI sector. Keeping these facts in view, the Ministry of Small Scale Industries has revised the data pertaining to SSI sector.

The data reveal that the total number of SSI units has increased from 79.6 lakhs in 1994-95 to 123.4 lakhs in 2005-06, indicating an annual, average growth rate of 4.1 per cent, but their production increased from Rs. 1,09,116 crores in 1994-95 to Rs. 2,77,668 crores in 2008-09 i.e. an annual average growth of 8.8 per cent. As a consequence of the increase in SSI units, more especially in the unregistered sector, employment increased from 191.4 lakhs in 199495 to 294.9 lakhs in 2005-06, recording an average growth rate of 4.5 per cent per annum. So far as exports by the SSI sector are concerned, they increased from Rs. 29,068 crores in 199495 to Rs. 1,50,242 crores in 2005-06, recording a growth rate of 16.1 per cent per annum. The Ministry has not changed the data pertaining to exports. On the whole, it can be stated that during 1994-95 to 2005-06, the SSI sector recorded an annual average growth rate of

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production by 8.8%, of employment by 4.5 per cent and of exports by 16.1 %. This is a creditable achievement.

Obviously, the growth rate of the small-scale sector has been faster both in terms of output and employment. In other words, the output employment ratio for the small scale sector is 1: 1.4. The rapid growth of the small-scale industries has a great relevance in our national economic policies. The growth of the small sector improves the production of the non-durable consumer goods of mass consumption. As such, it acts as an anti-inflationary force. If a big push is given to the small sector, it can become a stabilising factor in a capital-scarce economy like India by providing a higher output capital ratio as well as a higher employment-capital ratio.

In this connection, we may refer to the relatively low capacity utilisation of the small-scale industries. The capacity utilisation in the small sector as a whole was of the order of 53 per cent. There were, however, many units having high capacity utilisation e.g., industries utilising 60 to 80 per cent of the capacity included leather goods, readymade garments, tiles, woollen knitwear, etc. Industries like plastic products had very low capacity utilization

7.4.1 Exports From Small Scale Industry

Substantial increase in exports were observed in the case of readymade garments, canned and processed fish, leather sandals and chappals, food products, hosiery and marine products, etc. The value of exports increased to Rs.1,643 crores in 1980-81 and to a record high figure of Rs.1,50,242 crores in 2005-2006. A very significant feature of exports from the small-scale sector is their share in non-traditional exports. The share of exports from the small-scale sector represents about 32.3 per cent of total exports in 2005-2006. The obvious conclusion is that the growth of SSIs in terms of number and output is comparatively much higher in reserved items than in unreserved items. The policy of reservation has, therefore, positively helped the growth of this sector. Despite such positive evidence in favour of reserved items, the Union Budget (1997-98) dereserved 14 items till now manufactured by SSI sector. These items included ice-cream, biscuits, synthetic syrups, a variety of automobile parts, corrugated paper and boards, vinegar, poultry feed, rice milling, dal milling etc.

After the announcement of Industrial Policy of 1991, the Government has been dereserving more and more items of the SSI sector. As against 806 reserved items in 1977, the number of reserved items in 2007 is only 239.

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CHAPTER-8
WOMAN ENTREPRENEURSHIP IN INDIA

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8.1 INTRODUCTION
In the past women is taken only as house manager but with the change of time, change of thinking and spread of education the role of women in society is also changed. Now a days the women is not only a housewife but she plays different roles like Bank Manager, Civil Officer, I.A.S. etc.The women entrepreneur is also the one outcome of this fast changing society. But the women entrepreneur in Indian context has to face a lot of challenges to survive in this male dominating society. Women entrepreneurship has been recognized as an important source of economic growth. Women entrepreneurs create new jobs for themselves and others and also provide society with different solutions to management, organization and business problems. However, they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based barriers to starting and growing their businesses, like discriminatory property, matrimonial and inheritance laws and/or cultural practices; lack of access to formal finance mechanisms; limited mobility and access to information and networks, etc. Womens entrepreneurship can make a particularly strong contribution to the economic wellbeing of the family and communities, poverty reduction and womens empowerment, thus contributing to the Millennium Development Goals (MDGs). Thus, governments across the world as well as various developmental organizations are actively undertaking promotion of women entrepreneurs through various schemes, incentives and promotional measures. Women entrepreneurs in the four southern states and Maharashtra account for over 50% of all women-led small-scale industrial units in India.

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States

No of Units Registered 9618 7980 5487 4791 4339 3872 3822 2967 14576

No. of Women Percentage Entrepreneurs % 2930 30.36 3180 39.84 2135 38.91 1618 33.77 1394 32.12 1538 39.72 1026 26.84 842 28.38 4185 28.71 Source: Economic Survey 2008-09

Tamil Nadu Uttar Pradesh Kerala Punjab Maharastra Gujrat Karnataka Madhya Pradesh Other States and UTS

Out of total 940.98 million people in India, in the 1990s, females comprise 437.10 million representing 46.5 percent of the total population. There are 126.48 million women workforce but as per the 1991 census, only 1, 85,900 women accounting for only 4.5 per cent of the total self-employed persons in the country were recorded. As per a rough estimate the numbers of SSIs are expected to be2.5 billion having 9% women entrepreneurs in to it. Considering this trend, women participation in another five years was 20 % more, raising the number of women entrepreneurs to about 5, 00,000. Combined effect of motivational drive, preparation of information material, conducting training, creation of women industrial estates, and training of promoters and use of mass media all together is bound to accelerate the process of women entrepreneurship development.

8.2 Challenges To Woman Entrepreneur:

1. Lack of Education: The first and most serious problem to women entrepreneur is the lack/ less education facility. These further results in lack of knowledge and information about availability of raw material, financial facilities, Govt. helps and coming opportunities. This blocks the path of growth of women entrepreneur. 2. Male dominated Society: The Indian society is changing fastly but yet it is male driven society. The thinking towards women is inferior as compared to men. About 90% women talent goes waste due to the negligence and non-supporting nature of family members. So women have to fight a long battle to become a successful entrepreneur as compared to men.

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3. Family Ties: Every entrepreneur has to spend a lot of time for his business if he wants to grow. But in case of women entrepreneur the family becomes an obstacle in that thing. If a woman is unable to devote enough time to family, it gives rise to conflicts on the other hand without giving full time to business she can not be a successful entrepreneur. 4. Problem of Finance: In India it is a trend that the parental immovable properly or business goes in hands of male child by succession. So the woman faces the difficulty in obtaining finance, managing the working capital and credit. As the women has very less property in their own name which restricts in obtaining loans from financial institutions as they demand the security for loan granted. 5. Scarcity of Raw Material: The women are not much aware about the alternative source of raw material or they do not have access to them. So the women entrepreneur faces difficulty in obtaining proper and adequate raw material. 6. Stiff Competition: A lots of women enterprise have imperfect organizational set up but they have to face severe competition from organized industries which compels them to withdraw or to fight a cutthroat competition.

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8.3 Motivational Triggers for Women Entrepreneurship

As we discussed there are many serious problems exists in the way of women entrepreneur. But these cannot block the way of progress if these are tackled properly. So we should have to take some positive steps to motivate the women entrepreneur some of which can be as under : 1. Overcoming family Resistance: The first and most serious problem of family resistance can be removed through the cooperation from the male partners. If the male members give support and motivates women they can become successful entrepreneur.

2. Education & Training: The professional education and training should be imparted to women which should start right from the high school level. The well designed courses for building confidence and practical knowledge should be made part of the curriculum. 3. Change in Attitude: Societal change is not an overnight phenomenon it is a gradual and slow process. But without this change the subsidies and credit allocation to women will not bring much change. 4. Initiation into Professional Work: Usually families provide financial and emotional support to sons for setting up a business or profession. But the parents and daughters should be convinced that the skills and knowledge of daughter if utilized could provide them with profitable occupation. 5. Self Recognition: Women must be pulled out of normal restrictive environment and should teach to recognize her own psychological needs and give her needs an expression. They must be motivated to involve actively in business being run in their names.

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8.4 Provision of Amenities

It is desirable to provide amenities particularly required by them in industrial areas like easy mobility and closeness to homes, child care facilities, regular bus service, crches for children etc. Now a day's Indian Govt. Is becoming aware about status of women in society. So government is Providing some facilities to women which are as under: 1. Prime Minister Rojgar Yozna: Started in April 1999 The Govt. has modified elegibility criteria and has given age limit relaxation to women. 2. Khadi & Village Industries Commission: This scheme took measures to generate more employment opportunities for women. 3. Support for Training & Employment (STEP): Govt. has started training programmes exclusively for self-employment of women. 4. Trade Related Entrepreneurship Assistance and development scheme (TREAD): Some other schemes are also introduced by Govt. for initiating women entrepreneurship but the way is so long that these steps too short.

In India the past image of restricted and home bound women is slowly going under change. The Indian women even after facing many obstacles is now becoming a educated and economically independent. Govt. has come forward with many facilities, concessions and incentives exclusively for women entrepreneur. But in spite of these women have to go a long way fulfilling their multiple role of a mother, wife and a business women as well.

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CHAPTER-9
SOCIAL ENTREPRENEURSHIP IN INDIA

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9.1 Introduction
The terms social entrepreneur and social entrepreneurship were used first in the literature on social change in the 1960s and 1970s. The terms came into widespread use in the 1980s and 1990s, promoted by Bill Drayton the founder of Ashoka: Innovators for the Public, and others such as Charles Leadbeater From the 1950s to the 1990s Michael Young was a leading promoter of social enterprise and in the 1980s was described by Professor Daniel Bell at Harvard as 'the world's most successful entrepreneur of social enterprises' because of his role in creating more than sixty new organizations worldwide, including the School for Social Entrepreneurs (SSE) which exists in the UK, Australia and Canada and which supports individuals to realize their potential and to establish, scale and sustain, social enterprises and social businesses. Another British social entrepreneur is Lord Mawson OBE. Andrew Mawson was given a peerage in 2007 because of his pioneering regeneration work. This includes the creation of the renowned Bromley by Bow Centre in East London. He has recorded these experiences in his book "The Social Entrepreneur: Making Communities Work and currently runs Andrew Mawson Partnerships to help promote his regeneration work Social entrepreneurship means identifying or recognizing a social problem and using entrepreneurial principles to organize, create, and manage a social venture to achieve a desired social change Business entrepreneurs typically measure performance in profit and return, but social entrepreneurs also take into account a positive return to society. Social entrepreneurship typically furthers broad social, cultural, and environmental goals and is commonly associated with the voluntary and not-for-profit sectors . Profit can at times also be a consideration for certain companies or other enterprises. Social entrepreneurship practised in a world or international context is called international social entrepreneurship.

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9.2 What does a social entrepreneur do?

While business entrepreneurs aim to generate profits, social entrepreneurs aim to improve social values. But they differ from non-governmental organizations in that they aim to make broad-based, long-term changes, instead of few immediate small-time results. They recognize when a section of the society is stuck and offer innovative ways to break out of its stagnant state. They find out the things that dont work and alter the system to solve the problems. They detect resources while others see problems. They consider the affected people as part of the solution and not as passive beneficiaries. They propagate the solution and persuade the whole society to adopt it.

9.3 Social Entrepreneurs In India?

Social entrepreneurship is quietly revolutionizing the less privileged sections of India. Here are some of the more prominent social entrepreneurs in India.

Dr Govindappa Venkataswamy and Thulasiraj D Ravilla established Aravind Eye Hospital in 1976. Till date, it has treated more than 2.3 million outpatients and carried out more than 2.7 lakh operations in 2006-07, about two-thirds of them free.

Barefoot College, started by Bunker Roy in 1972, has made innumerable school dropouts in villages into barefoot doctors, engineers, architects, teachers, designers and communicators

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Self-Employed Womens Association (SEWA) started by Ela Bhatt in 1972 provides financial, health, insurance, legal, childcare, vocational and educational services to poor self-employed women, who comprise its members.

Bhartiya Samruddhi Investments & Consulting Services (BASIX) started by Vijay Mahajan is the first microfinance project to lend to the poor.

Narayana Hrudayalaya Institute of Medical Sciences and its network of hospitals run by Devi Shetty perform about three dozen surgeries a day. Of these, 60% are carried out at nominal cost or free of charge. Technology Informatics Design Endeavour (TIDE) run by S Rajagopalan and Svati Bhogle supports the development of financially rewarding and environmentallyfriendly methods invented by leading research institutions into thriving enterprises.

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CHAPTER-10
CORPORATE ENTREPRENEURSHIP

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10.1 Introduction
First, though, what exactly is corporate entrepreneurship? We define the term as the process by which teams within an established company conceive, foster, launch and manage a new business that is distinct from the parent company but leverages the parents assets, market position, capabilities or other resources. It differs from corporate venture capital, which predominantly pursues financial investments in external companies. Although it often involves external partners and capabilities (including acquisitions), it engages significant resources of the established company, and internal teams typically manage projects. Its also different from spinouts, which are generally constructed as stand-alone enterprises that do not require continuous leveraging of current business activities to realize their potential Corporate entrepreneurship is more than just new product development, and it can include innovations in services, channels, brands and so on. Traditionally, companies have added value through innovations that fit existing business functions and activities. After all, why would they develop opportunities that cant easily be brought to market? Unfortunately, this approach also limits what a company is willing or even able to bring to market. Indeed, the failure to recognize that new products and services can require significantly different business models is often what leads to missed opportunities. Corporate entrepreneurship initiatives seek to overcome such constraints.

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10.2 The Need for Corporate Entrepreneuring

Many companies today are realizing the need for corporate entrepreneuring. Articles in popular business magazines are reporting the infusion of entrepreneurial thinking into large bureaucratic structures. In fact, in many of his books, Tom Peters has devoted entire sections to innovation in the corporation. Quite obviously, both business firms and consultants / authors are recognizing the need for in-house entrepreneurship.
This need has arisen in response to a number of pressing problems, including rapid growth in the number of new and sophisticated competitors, a sense of distrust in the traditional methods of corporate management, an exodus of some of the best and brightest people from corporations to become small-business entrepreneurs, international competition, downsizing of major coorprations, and an overall desire to improve efficiency and productivity.

The first of these issues, the problem of competition, has always plagued businesses. However, today's high-tech economy is supporting a far greater number of competitors than ever before. In contrast to previous decades, changes, innovations, and improvements are now very common in the marketplace. Thus corporations must either innovate or become obsolete. Another of these problems, losing the brightest people to entrepreneurship, is escalat-ing as a result of two major developments. First, entrepreneurship is on the rise in terms of status, publicity, and economic development. This enhancement of entrepreneurship has made the choice more appealing to both young and seasoned employees. Second, in recent years venture capital has grown into a large industry capable of financing more new ventures than ever before. The healthy capital market enables new entrepreneurs to launch their projects. This development is encouraging people with innovative ideas to leave large corporations and strike out on their own. The modern corporation, then, is forced into seeking avenues for developing in-house entrepreneuring. To do otherwise is to wait for stagnation, loss of personnel, and decline. This new "corporate revolution" represents an appreciation for and a desire to develop entrepreneurs within the corporate structure.

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CHAPTER -11
INTRAPRENEURSHIP IN INDIA

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11.1 INTRODUCTION

The global economy is creating profound and substantial changes for organizations and industries throughout the world. These changes make it necessary for business firms to carefully examine their purpose and to devote a great deal of attention to selecting and following strategies in their pursuit of the levels of success that have a high probability of satisfying multiple stakeholders. In response to rapid, continuous, and significant changes in their external and internal environments, many established companies have restructured their operations in fundamental and meaningful ways. In fact, after years of restructuring, some of these companies bear little resemblance to their ancestors in their business scope, culture, or competitive approach. The new century is seeing corporate strategies focused heavily on innovation. This new emphasis on entrepreneurial thinking developed during the entrepreneurial economy of the 1980s and 1990s. Peter Drucker, the renowned management expert, de-scribed four major developments that explain the emergence of this economy. First, the rapid evolution of knowledge and technology promoted the use of high-tech entrepreneurial start-ups. Second, demographic trends such as two-wage-earner families, continuing education of adults, and the aging population added fuel to the proliferation of newly developing ventures. Third, the venture capital market became an effective funding mechanism for entrepreneurial ventures. Fourth, American industry began to learn how to manage entrepreneurship. Continuous innovation (in terms of products, processes, and administrative routines and structures) and an ability to compete effectively in international markets are among the skills that increasingly are expected to influence corporate performance in the twenty-first century's global economy. Corporate entrepreneurship is envisioned to be a process that can facilitate firms' efforts to innovate constantly and cope effectively with the competitive realities that, companies encounter when competing in international markets. Entrepreneurial attitudes and behaviors are necessary for firms of all sizes to prosper and flourish in competitive environments.

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11.2 Defining the Concept

Operational definitions of corporate entrepreneurship have evolved over the last 30 years through scholars' work. For example, one researcher noted that corporate innovation is a very broad concept that includes the generation, development, and implementation of new ideas or behaviors. An innovation can be a new product or service, an administrative system, or a new plan or program pertaining to organizational members. In this context corporate entrepreneurship centers on reenergizing and enhancing the firm's ability to acquire innovative skills and capabilities.

11.3 The Nature of Intrapreneurship

In recent years the subject of intrapreneurship has become quite popular, though very few people thoroughly understand the concept. Most researchers agree that the term refers to entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results. The major thrust of intrapreneuring is to develop the entrepreneurial spirit within organizational boundaries, thus allowing an atmosphere of innovation to prosper.

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CHAPTER -12
CYBERPRENEURSHIP IN INDIA

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12.1 Introduction
It is a combination of the words 'cyber' and 'entrepreneur' and loosely means many things but generally regarded as meaning an entrepreneur who has an online based business on the Internet that targets international consumers. These cyberpreneurs do not need offices or extensive support staff all over the world. They just need an idea, a great idea, and a cable to the Internet.

12.2 The Internet

Most people alive today have probably heard of the Internet. In fact, if the propaganda is believed, most people have already surfed the Internet. At least most computer users have probably done so. It is becoming more and more common for firms and organizations everywhere to advertise and even sell their products and services via the Internet. Cyber Entrepreneurs is similar to Entrepreneur but the difference is where the conduct their business. Internet entrepreneurs combine creativity and marketing skills to sell goods and services on the World Wide Web. The Internet has shown spectacular growth over the past few years and will almost certainly continue to grow. On the other hand, the failure rate of Internet businesses is high, because the medium evolves in ways that are impossible to predict. Employment in Web-related business is volatile. Many large companies have invested heavily in developing Internet sites. Then, as those sites fail to produce revenue, companies alter their plans and "downsize" or abandon the sites, often laying off employees in the process. Like other new industries, the Internet offers high-risk opportunities. Individuals with the rightidea and the skills necessary to capitalize on it can earn a fortune. At the same time, far more Internet-based businesses will fail rather than succeed.

12.3 Nature Of The Work

The Interneta worldwide network of computer networksoffers businesses and individuals a relatively inexpensive way to communicate with a global audience. The development of the Internet over the past forty years has opened an entirely new medium for communication and commerce. Creative individuals with something to say or something to sell and technical interests and abilities can use the Internet to reach vast numbers of people. Internet entrepreneurs are individuals who are familiar with the culture and technology of the Internet and are able to apply their knowledge to sell products or services via the Internet. In

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general, these entrepreneurs exploit the World Wide Web (the Web)the portion of the Internet where users post "pages" of text, images, audio, and video using the HTML programming language. On a basic level the Web provides individual entrepreneurs and business organizations with an inexpensive means to offer documents and software to a worldwide audience. Commercial Web sites fall into two basic types: pay sites and free sites. Pay sites offer subscribers proprietary information for a fee. The information can range from financial analysis to software applications to sports statistics. Free sites attract users with interesting content, and then make money through advertising or sales generated through the site. For example, "search engines" such as Yahoo and Google help users find Web pages for free while exposing the users to advertisements. Other free sites are essentially online catalogs selling products and offering feature articles and reviews. Home electronics, computer equipment, books, music, video games, and travel arrangements are among the most popular items sold over the Internet. Many Web sites are owned and maintained by huge corporations. Nearly all Fortune 500 companies have Web sites. On the other hand, there are also thousands of smaller businesses represented onlinemany owned and operated by individuals. Regardless of whether they work for a large corporation or a tiny business, Internet entrepreneurs must combine marketing skills with an aptitude for using new and evolving technology.

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CHAPTER -13
ULTRAPRENEURS IN INDIA

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13.1 Introduction
Entrepreneurs no longer have the luxury of long development and product proving time spans. Windows of market opportunity open and close rapidly. Todays entrepreneur needs a new mindset, what we term ultrapreneuring. Gone are those days of developing a company to die with-no more cradle to grave thinking. Ultra growth companies arent made to be passed on to the next generation. Ultrapreneurs create them and sell out, merge or combine. Their lifelong challenge is to do it again and again. Many people have established successful businesses and then suddenly sold them off to managers at good valuations and move on to a new venture. Such people are called as serial entrepreneurs. The watch word is harvest. The sole intent is to build a company, then sell out in three years or less. The challenge is to leverage the investment dollars, the management team, and the product or service niche to attract a predetermined, designated purchaser Ultrapreneur is about taking enterprise beyond the paradigm of shareholder value, quarterly results and human resources to incorporate a new vision, a new ethics and a new way of working. If entrepreneurship meant to take in hand, to manage (in its original, literal sense), from the Old French entreprendre to take between (the hands) then ultrapreneurship is about taking (organizations) beyond the pattern of capitalism that is now threatening our very existence on this planet. Ultrapreneur is for everyone who is looking for fresh thinking in the wake of climate change, globalisation and the growing unrest of the worlds underemployed and undervalued populations and who wants to change the world. But who also seeks the knowledge, skills and experience and the wisdom to make that change positively and effectively. Ultrapreneurs make it happen by being prepared for constant change by continually adapting their business plans for the changes that are dictated by the realities of their market place, customers and team. Making it happen, ultrapreneurial style, can be summarised by addressing two primary pressures, those from outside and those from within the organisation. The ultrapreneurial key is to maintain realistic goals, delegate, put effort, into a balanced life, and be around to really enjoy the rewards

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48

CHAPTER -14
BEING ENTREPRENURS IN INDIA

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14.1 What Makes Someone an Entrepreneur?

Who can become an entrepreneur? There is no one definitive profile. Successful entrepreneurs come in various ages, income levels, gender, and race. They differ in education and experience. But research indicates that most successful entrepreneurs share certain personal attributes, including: creativity, dedication, determination, flexibility, leadership, passion, self-confidence, and smarts.

Creativity is the spark that drives the development of new products or services or ways
to do business. It is the push for innovation and improvement. It is continuous learning, questioning, and thinking outside of prescribed formulas.

Dedication is what motivates the entrepreneur to work hard, 12 hours a day or more,
even seven days a week, especially in the beginning, to get the endeavor off the ground. Planning and ideas must be joined by hard work to succeed. Dedication makes it happen.

Determination is the extremely strong desire to achieve success. It includes persistence

and the ability to bounce back after rough times. It persuades the entrepreneur to make the 10th phone call, after nine have yielded nothing. For the true entrepreneur, money is not the motivation. Success is the motivator; money is the reward.

Flexibility is the ability to move quickly in response to changing market needs. It is being
true to a dream while also being mindful of market realities. A story is told about an entrepreneur who started a fancy shop selling only French pastries. But customers wanted to buy muffins as well. Rather than risking the loss of these customers, the entrepreneur modified her vision to accommodate these needs.

Leadership is the ability to create rules and to set goals. It is the capacity to follow
through to see that rules are followed and goals are accomplished.

Passion is what gets entrepreneurs started and keeps them there. It gives entrepreneurs
the ability to convince others to believe in their vision. It cant substitute for planning, but it will help them to stay focused and to get others to look at their plans.

Self-confidence comes from thorough planning, which reduces uncertainty and the level
of risk. It also comes from expertise. Self-confidence gives the entrepreneur the ability to listen without being easily swayed or intimidated.

Smarts consists of common sense joined with knowledge or experience in a related

business or endeavor. The former gives a person good instincts, the latter, expertise.

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Many people have smarts they dont recognize. A person who successfully keeps a household on a budget has organizational and financial skills. Employment, education, and life experiences all contribute to smarts.

Every entrepreneur has these qualities in different degrees. But what if a person lacks one or
more? Many skills can be learned. Or, someone can be hired who has strengths that the entrepreneur lacks. The most important strategy is to be aware of strengths and to build on them.

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14.2 Why Become an Entrepreneur?

What leads a person to strike out on his own and start a business? Perhaps a person has been laid off once or more. Sometimes a person is frustrated with his or her current job and doesnt see any better career prospects on the horizon. Sometimes a person realizes that his or her job is in jeopardy. A firm may be contemplating cutbacks that could end a job or limit career or salary prospects. Perhaps a person already has been passed over for promotion. Perhaps a person sees no opportunities in existing businesses for someone with his or her interests and skills. Some people are actually repulsed by the idea of working for someone else. They object to a system where reward is often based on seniority rather than accomplishment, or where they have to conform to a corporate culture.

Other people decide to become entrepreneurs because they are disillusioned by the bureaucracy or politics involved in getting ahead in an established business or profession. Some are tired of trying to promote a product, service, or way of doing business that is outside the mainstream operations of a large company. In contrast, some people are attracted to entrepreneurship by the advantages of starting a business. These include:

Entrepreneurs are their own bosses. They make the decisions. They choose whom to do
business with and what work they will do. They decide what hours to work, as well as what to pay and whether to take vacations.

Entrepreneurship offers a greater possibility of achieving significant financial rewards than

working for someone else.

It provides the ability to be involved in the total operation of the business, from concept
to design and creation, from sales to business operations and customer response.

It offers the prestige of being the person in charge. It gives an individual the opportunity to build equity, which can be kept, sold, or passed on
to the next generation.

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 Entrepreneurship creates an opportunity for a person to make a contribution. Most new

entrepreneurs help the local economy. A fewthrough their innovationscontribute to society as a whole. One example is entrepreneur Steve Jobs, who co-founded Apple in 1976, and the subsequent revolution in desktop computers.

Some people evaluate the possibilities for jobs and careers where they live and make a conscious decision to pursue entrepreneurship. No one reason is more valid than another; none guarantee success. However, a strong desire to start a business, combined with a good idea, careful planning, and hard work, can lead to a very engaging and profitable endeavor.

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14.3 Entry Strategies for New Ventures

It is easy to be captivated by the promise of entrepreneurship and the lure of becoming ones own boss. It can be difficult, however, for a prospective entrepreneur to determine what product or service to provide. Many factors need to be considered, including: an ideas market potential, the competition, financial resources, and ones skills and interests. Then it is important to ask: Why would a consumer choose to buy goods or services from this new firm? One important factor is the uniqueness of the idea. By making a venture stand out from its competitors, uniqueness can help facilitate the entry of a new product or service into the market. It is best to avoid an entry strategy based on low cost alone. New ventures tend to be small. Large firms usually have the advantage of lowering costs by producing large quantities. Successful entrepreneurs often distinguish their ventures through differentiation, niche specification, and innovation.

Differentiation is an attempt to separate the new companys product or service from that of
its competitors. When differentiation is successful, the new product or service is relatively less sensitive to price fluctuations because customers value the quality that makes the product unique. A product can be functionally similar to its competitors product but have features that improve its operation, for example. It may be smaller, lighter, easier to use or install, etc. In 1982, Compaq Computer began competing with Apple and IBM. Its first product was a single-unit personal computer with a handle. The concept of a portable computer was new and extremely successful.

Niche specification is an attempt to provide a product or service that fulfills the needs
of a specific subset of consumers. By focusing on a fairly narrow market sector, a new venture may satisfy customer needs better than larger competitors can.

Changes in population characteristics may create opportunities to serve niche

markets. One growing market segment in developed countries comprises people over 65 years old. Other niches include groups defined by interests or lifestyle, such as fitness enthusiasts, adventure-travel buffs, and working parents. In fact, some entrepreneurs specialize in making homemade dinners for working parents to heat and serve.

Innovation is perhaps the defining characteris tic of entrepreneurship. Visionary

business expert Peter F. Drucker explained innovation as change that creates a new dimension of performance. There are two main types of product innovation. Pioneering or radical innovation embodies a technological breakthrough or new-tothe-world product. Incremental innovations are modifications of performance. There are two main types of product innovation. Pioneering or radical innovation embodies a

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technological breakthrough or new-to-the-world product. Incremental innovations are modifications of existing products But innovation occurs in all aspects of businesses, from manufacturing processes to pricing policy. Tom Monaghans decision in the late 1960s to create Dominos Pizza based on home delivery and Jeff Bezos decision in 1995 to launch Amazon.com as a totally online bookstore are examples of innovative distribution strategies that revolutionized the marketplace. Entrepreneurs in less-developed countries often innovate by imitating and adapting products created in developed countries. Drucker called this process creative imitation. Creative imitation takes place whenever the imitators understand how an innovation can be applied, used, or sold in their particular market better than the original creators do.Innovation, differentiation, and/or market specification are effective strategies to help a new venture to attract customers and start making sales.

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14.4 Choosing a Form of Business

In many countries, entrepreneurs must select a form of organization when they start a small business. The basic forms of organization are sole proprietorships, partnerships, and corporations. Each has advantages and disadvantages. Moreover, the laws and regulations that apply to business owners vary from country to country and by local jurisdiction. Entrepreneurs should consult an attorney or other expert to make sure that they have all the necessary licenses and permits, and are aware of all their legal obligations. In many countries, the local Chamber of Commerce or local business council is also a good source of information.

Sole Proprietorship: In a sole proprietorship, the individual entrepreneur owns the

business and is fully responsible for all its debts and legal liabilities. More than 75 percent of all U.S. businesses are sole proprietorships. Examples include writers and consultants, local restaurants and shops, and home-based businesses. This is the easiest and least expensive form of business to start. In general, an entrepreneur files all required documents and opens a shop. The disadvantage is that there is unlimited personal liability all personal and business assets owned by the entrepreneur may be at risk if the business goes into debt.

Partnership: A partnership consists of two or more people who share the assets,
liabilities, and profits of a business. The greatest advantage comes from shared responsibilities. Partnerships also benefit by having more investors and a greater range of knowledge and skills. There are two main kinds of partnerships, general partnerships and limited partnerships. In a general partnership, all partners are liable for the acts of all other partners. All also have unlimited personal liability for business debts. In contrast, a limited partnership has at least one general partner who is fully liable plus one or more limited partners who are liable only for the amount of money they invest in the partnership. The largest disadvantage of any partnership is the potential for disagreements, regardless of how well or how long the partners have known each other. Experts agree that a partnership agreement drawn up by an experienced lawyer is essential to a successful partnership. It is often used to: Create a mechanism for resolving disagreements; Specify each partners contribution to the partnership; Divide up management responsibilities; Specify what happens if a partner leaves or dies

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Corporations: Corporations are recommended for entrepreneurs who plan to conduct a large-scale enterprise. As a legal entity that has a life separate from its owners, a corporation can sue or be sued, acquire and sell property, and lend money.

Corporations are divided into shares or stocks, which are owned by one, a few, or many people. Ownership is based on the percentage of stock owned. Shareholders are not responsible for the debts of the corporation, unless they have personally guaranteed them. A shareholders investment is the limit of her liability. Corporations can more easily obtain investment, raise capital by selling stock, and survive a change of ownership. They provide more protection from liability than other forms of business. Their potential for growth is unlimited. However, corporations are more complex and expensive to set up than other forms of business and are usually subject to a higher level of government regulation.

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14.5 Creating a Business Plan

A comprehensive business plan is crucial for a start-up business. It defines the entrepreneurs vision and serves as the firms resume. There are many reasons for writing a business plan: To convince oneself that the new venture is worthwhile before making a significant financial and personal commitment. To assist management in goal-setting and long-range planning. To attract investors and get financing. To explain the business to other companies with which it would be useful to create an alliance or contract.

A business plan can help an entrepreneur to allocate resources appropriately, handle unexpected problems, and make good business decisions. A well-organized plan is an essential part of any loan application. It should specify how the business would repay any borrowed money. The entrepreneur also should take into account all startup expenses and potential risks so as not to appear naive.

A standard business plan is usually about 40 pages in length. It should use good visual formatting, such as bulleted lists and short paragraphs. The language should be free of jargon and easy to understand. The tone should be business-like and enthusiastic. It should be strong on facts in order to convince people to invest money or time in the new venture. The basic elements of a standard business plan include: Title Page Table of Contents Executive Summary Company Description Product/Service Market and Competition Marketing and Selling Strategy Operating Plan Management/Organization Financing Supporting Documents

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The executive summary is the cornerstone of a good plan. This is the section that people read in order to decide whether to read the rest. It should concisely summarize the technical, marketing, financial, and managerial details. More importantly, it needs to convince the reader that the new venture is a worthy investment. The company description highlights the entrepreneurs dream, strategy, and goals. The product/service section should stress the characteristics and benefits of the new venture. What differentiates it from its competition? Is it innovative? The financial components of a new ventures business plan typically include three projections: a balance sheet, an income statement, and a cash-flow analysis. These require detailed estimates of expenses and sales. Expenses are relatively easy to estimate. Sales projections are usually based on market research, and often utilize sales data for similar products and services produced by competitors. Writing a business plan may seem overwhelming. However, there are ways to make the process more manageable. First, there are many computer software packages for producing a standard business plan. Numerous books on entrepreneurship have detailed instructions, and many universities sponsor programs for new businesses.

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14.6 Sources of Financing

Many entrepreneurs struggle to find the capital to start a new business. There are many sources to consider, so it is important for an entrepreneur to fully explore all financing options. He also should apply for funds from a wide variety of sources.

Personal savings: Experts agree that the best source of capital for any new business is the entrepreneurs own money. It is easy to use, quick to access, has no payback terms, and requires no transfer of equity (ownership). Also, it demonstrates to potential investors that the entrepreneur is willing to risk his own funds and will persevere during hard times. Friends and family: These people believe in the entrepreneur, and they are the second easiest source of funds to access. They do not usually require the paperwork that other lenders require. However, these funds should be documented and treated like loans. Neither part ownership nor a decision-making position should be given to these lenders, unless they have expertise to provide. The main disadvantage of these funds is that, if the business fails and money goes lost, a valuable relationship may be jeopardized. Banks: Banks are very conservative lenders. As successful entrepreneur Phil Holland explains, Many prospective business owners are disappointed to learn that banks do not make loans to start-up businesses unless there are outside assets to pledge against borrowing. Many entrepreneurs simply do not have enough assets to get a secured loan from a lending institution. However, if an entrepreneur has money in a bank savings account, she can usually borrow against that money. If an entrepreneur has good credit, it is also relatively easy to get a personal loan from a bank. These loans tend to be short-term and not as large as business loans. Venture investors: This is a major source of funding for start-ups that have a strong potential for growth. However, venture investors insist on retaining part ownership in new businesses that they fund. Formal institutional venture funds are usually limited partnerships in which passive limited partners, such as retirement funds, supply most of the money. These funds have large amounts of money to invest. However, the process of obtaining venture capital is very slow. Several books, such as Galantes Venture Capital & Private Equity Directory, give detailed information on these funds.

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Corporate venture funds are large corporations with funds for investing in new ventures. These often provide technical and management expertise in addition to large monetary investments. However, these funds are slow to access compared to other sources of funds. Also, they often seek to gain control of new businesses . Angel investors tend to be successful entrepreneurs who have capital that they are willing to risk. They often insist on being active advisers to businesses they support. Angel funds are quicker to access than corporate venture funds, and they are more likely to be invested in a start-up operation. But they may make smaller individual investments and have fewer contacts in the banking community.

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CHAPTER -15
ENTREPRENURSHIP EDUCATION IN INDIA

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15.1 INTRODUCTION
I'm not afraid of storms, for I'm learning to sail my ship.

Entrepreneurship has been considered the backbone of economic development. It has been well established that the level of economic growth of a region to a large extent, depends on the level of entrepreneurial activities in the region. The myth that entrepreneurs are born, no more holds good, rather it is well recognised now that the entrepreneurs can be created and nurtured through appropriate interventions in the form of entrepreneurship development programmes. In the era of liberalisation, privatisation and globalisation along with ongoing IT revolution, capable entrepreneurs are making use of the opportunities emerging from the evolving scenario. However, a large segment of the population, particularly in the industrially backward regions/rural areas generally lags behind in taking advantage of these opportunities. Therefore, there is a need to provide skill development and entrepreneurship development training to such people in order to mainstream them in the ongoing process of economic growth. Entrepreneurship development and training is, thus, one of the key elements for development of micro and small enterprises (MSEs), particularly, the first generation entrepreneurs. To undertake this task on regular basis, the Ministry has set up three nationallevel Entrepreneurship Development Institutes (EDIs). These are, the National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad; the Indian Institute of Entrepreneurship (IIE), Guwahati and the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida. Further, the Ministry has been implementing (in addition to the schemes of MSME-DO) an important scheme, namely, Scheme for Assistance for Strengthening of Training Infrastructure of Existing and New Entrepreneurship Development Institutes (EDIs).
The main objectives of the scheme are (i) promoting entrepreneurship for creating self-employment through enterprise creation (ii) facilitating creation of training infrastructure; and (iii) supporting research on entrepreneurship related issues.

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15.2 NATIONAL INSTITUTE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (NI-MSME), HYDERABAD
NI-MSME, formerly known as National Institute of Small Industry Extension Training (NISIET), was set up in 1960 at New Delhi as a Department of Central Government under the Ministry of Commerce and Industry and was initially known as Central Industrial Extension Training Institute (CIETI). Subsequently, in 1962, it was shifted to Hyderabad and converted into an autonomous society. In 1984, the Institute was renamed as National Institute of Small Industry Extension Training (NISIET). After enactment of the MSMED Act, 2006, the Institute has been renamed as National Institute for Micro, Small and Medium Enterprises (NI-MSME), w.e.f. 11th April 2007. The Institute has benefited not only the Indian micro, small and medium enterprises (MSMEs) but also those in other developing countries through a plethora of activities and thus helped in promoting self-employment and enterprise development. The Institute is constantly evolving in accordance with the changing times, modifying its focus with the emerging needs of MSMEs and providing solutions in the form of consultancy, training, research, and education. NI-MSMEs programmes

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are designed to have universal relevance for successfully training the entrepreneurs to face challenges and emerging competition in the era of globalisation. The academic activities of the Institute are organized through centres of excellence focusing on specific needs of the MSMEs. The Academic Council of the Institute is the central coordinating body for benchmarking, formulation and evaluation of academic activities and programmes.

15.3 INDIAN INSTITUTE OF ENTREPRENEURSHIP (IIE), GUWAHATI

The Indian Institute of Entrepreneurship (IIE) was set up at Guwahati in 1993. It took over NIMSMEs NER Centre w.e.f. 1st April, 1994. The Institute is completing 14th year of its operation on 31st March 2008. During this period, the Institute has expanded its activities to a great extent covering all facets of MSME activities. Since its establishment and up to March 2007, the Institute has organized 1167 training programmes / workshops / seminars / meets with a cumulative participation of 38524 persons. The Institute has obtained ISO-9001-2000 certification from the Bureau of Indian Standards. The Institute has expanded its canvas of activities not only in terms of geographical coverage but also in terms of diversification into various related areas of the activities pertaining to socio-economic development. The Institute regularly organises training programmes and undertakes research and consultancy services in the field of promotion of MSMEs and entrepreneurship

15.4 SCHEME OF PARTNER INSTITUTIONS

In spite of the best efforts of existing national and state level entrepreneurship development institutions (EDIs), it is felt that there is a need to fill the gap in providing entrepreneurship training in the selected backward/rural areas and also organising entrepreneurship development programmes (EDPs) for persons belonging to Scheduled Caste / Scheduled Tribe / Minority / Women categories, which might have been left out of the network of existing training institutions. In order to bridge this gap, the three national-level Entrepreneurship Development Institutions have recently come out with a scheme of setting up of Entrepreneurship Development Centres (EDCs) through Partner Institutions (PIs). Through this scheme these institutions would be collaborating with Partner Institutions for organising training programmes and for implementing other income generating schemes/programmes, especially in the remote and backward areas. This scheme will enhance the outreach of these institutions and at the same time, the Partner Institutions will also be benefited in terms of capacity building of their faculty, access to the infrastructure and resources of national-level institutions through e-classes etc. Through this approach, these institutions would be able to spread the entrepreneurship movement throughout the length and breadth of the country.

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Government of India has established several other institutions for young ignited minds to learn entrepreneurship. Government and private institutions are coming up with many new courses for making entrepreneurship very good carrier. Many institutions have planned special courses for woman entrepreneurship, social entrepreneurship, growth of family business etc.

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CHAPTER -16
INDIAN ENTREPRENEURS

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Dhirajlal Hirachand Ambani

(28 December 1932 - 6 July 2002)

Think big, think fast, think ahead. Ideas are no ones monopoly

Dhirajlal Hirachand Ambani was born on 28 December 1932, at Chorwad, Junagadh in Gujarat, When he was 16 years old, he moved to Aden,Yemen. Initially, Dhirubhai worked as a dispatch clerk with A. Besse & Co. Married to Kokilaben. Dhirubhai also worked in Dubai for sometime. He returned to India and founded the Reliance Commercial Corporation with an initial capital of Rs 15000. Dhirubhai set up the business in partnership with Champaklal Damani from whom he parted ways in 1965. Achievements: Dhirubhai Ambani built India's largest private sector company. Created an equity cult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.

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After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company. Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionised capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian company to raise money in global markets, its highcredit-taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century". Dhirubhai Ambani died on July 6, 2002, at Mumbai.

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Jehangir Ratanji Dadabhoy (J.R.D.)

(July 29, 1904- November 29, 1993 )

One of the pioneering industrialists of India, Jehangir Ratanji Dadabhoy(J.R.D Tata ) was born in Paris on July 29, 1904. He became the chairman of the Tata Group in 1938. He saw the assets of the Tata Group climbing from Rs 62 crore (Rs 620 million) in 1939 to over Rs 10,000crore 1990. Under him, the Tata Group diversified into a large number of sectors from airlines to hotels, trucks to locomotives, soda ash, heavy chemicals to pharmaceuticals, financial services, tea, air-conditioning etc. He was not only an industrialist, but was a pioneering aviator too and brought commercial aviation to India, besides being a patron of the arts and philanthropist. He faced severe problems like foreign exchange crunch and severe government controls on big business, but all these could not deter him. He was a great leader and motivator. He encouraged entrepreneurs such as Sir Homi Mody, Russi Mody, Sumant Moolgaokar and Darbari Seth, and many others. He formed the Tata Administrative Service and the Tata Management Training Centre , the Tata Institute of Fundamental Research, and was the longest serving member of the Atomic Energy Commission. He passed away in Geneva on November 29, 1993.

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Lakshmi Nivas Mittal

Lakshmi Nivas Mittal was born on June 15, 1950 in Sadulpur, Rajasthan, India and is presently the CEO & Chairman of Arcelor Mittal. Lakshmi Nivas Mittal was listed in the Forbes List of Billionaires in 2006 as the the richest Indian and the fifth richest man in the world with an estimated wealth around of $25.0 billion and is the richest man in the United Kingdom. Young Lakshmi Nivas Mittal spent his first years in Sadulpur, before his father moved to Kolkata. Lakshmi graduated from St. Xavier's College, Calcutta. He founded Mittal Steel in 1976, which soon became a global steel producer with operations on 14 countries. His success mantra lies in the identification, acquisition and turnaround of many loss making steel companies all across the world. In 1994, he took over the international operations of his family's steel business. Arcelor Mittal is presently the world's largest producer of low and mid-grade steels, with operations in Romania, Bosnia-Herzegovina, South Africa, Poland, Czech Republic, Indonesia, Kazakhstan and many other countries. Mittal is considered to be close to the British Prime Minister Tony Blair and has donated large sums of money to the Labour party coffers. He bought his residence at 18-19 Kensington Palace Gardens from Formula One car racing boss Bernie Ecclestone in 2004 for 57.1 million ($105.7 million), the highest-ever price paid for a house. His son Aditya is the CFO(Chief Financial Officer) of Arcelor Mittal. Mr. Mittal has been nominated as a member of the Foreign Investment Council in Kazakhstan, the International Investment Council in South Africa, the World Economic Forum's International Business Council, besides being a Director of ICICI Bank Limited and being on the Advisory Board of the Kellogg School of Management in the United States.

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Azim Premji

The software czar of India Azim Premji is the Chairman of Wipro Technologies, one of the largest software companies in India. One of the richest Indians worldwide, Premji was born on July 24, 1945. When he was studying Electrical Engineering at Stanford University in the United States, he had to rush back and take over the mantle of the family's business on the sudden demise of his father. In those days, Wipro dealt with hydrogenated cooking fats, bakery fats, toiletries, hair care soaps, baby toiletries etc. Under Premji, the company shifted from soaps to software. Under his stewardship, WIPRO has grown from a US$ 2 million hydrogenated cooking fat company to a US $1.76 billion IT- giant. Ranked among the top 100 Technology companies globally, Wipro is also the largest BPO services provider based in India. Premji was named as the Business Man of the Year 2000 by Business India and the Business Leader of the Year 2004 by the Economic Times. The TIME magazine listed him in 2004 as one of the 100 most influential people worldwide. In 2003, the Fortune magazine named him as one of the 25 most powerful business leaders outside the US. He was awarded honorary doctorates by many renowned institutions like the Indian Institute of Technology, Roorkee and the Manipal Academy of Higher Education, besides serving on the Prime Minister's Committee for Trade and Industry in India. He founded the Azim Premji foundation in 2001, a not-for-profit organization to help the poor and the downtrodden. He received the Padma Bhushan award from the Union Government in 2005.

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Dr. Kiran Mazumdar-Shaw

Dr. Kiran Mazumdar-Shaw has entered the elite ranks of the Indian business world as India's richest woman. Born on 23 March, 1953, she is the Chairman & Managing Director of Biocon Ltd. She did her schooling from Bangalore and graduated in Zoology from Bangalore Universityin 1973, after which she moved on to Ballarat University in Melbourne, Australia. She became India's first woman Brew Master and started off as a trainee brewer in Carlton & United Beverages in 1974, following which she worked in various positions in Kolkata and Vadodara. She collaborated with Biocon Biochemicals Limited, Ireland, to found Biocon India in 1978. Initially, she faced many problems, but she was not the one to give up. Her firm has grown to be the biggest biopharmaceutical firm in India today. Though her business interests keep her occupied, she has found time to write a book titled 'Ale and Arty'. She tied the knot with John Shaw, in 1998, who was working as the managing director of Madura Coats. After their marriage, John Shaw quit Madura Coat and joined Biocon.

A very active social activist, she has been involved in various projects like the Bangalore Agenda Task Force (BATF). She was awarded the MV Memorial Award, given in honour of the great engineer and visionary Sir M Vishwesharaiah. Apart from this, she was awarded the Wharton Infosys Business Transformation Award in 2006, the Padma Bhushan in 2005, the Lifetime Achievement Award from the Indian Chamber of Commerce in 2005, the Ernst & Young Entrepreneur of the Year Award in Healthcare & Life Sciences Category in 2002 besides the Padma Shri in 1989.

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Dr.Majumdar-Shaw has held several honorary and advisory positions. Among them, she was the Chairperson and Mission Leader of the Confederation of Indian Industry's National Task Force on Biotechnology, a member of the Prime Minister's Council on Trade & Industry in India, Member, Board of Science Foundation, Ireland , Member, Board of Governors, IIM Bangalore and many others. In doing so, she has set an example for other Indian women to follow.

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RAHUL BAJAJ

Rahul Bajaj is the Chairman of the Bajaj Group, which ranks among the top 10 business houses in India. The Bajaj Group has diversified interests ranging from automobiles, home appliances, lighting, iron and steel, insurance, travel and finance. Rahul Bajaj is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. Rahul Bajaj is an alumnus of Harvard, St. Stephen's and Cathedral. He took over the reins of Bajaj Group in 1965. Under his stewardship, the turnover of the Bajaj Auto the flagship company has risen from Rs.72 million to Rs.46.16 billion. Rahul Bajaj created one of India's best companies in the difficult days of the licence-permit raj. He established factories at Akurdi and Waluj. In 1980s Bajaj Auto was top scooter producer in India and its Chetak brand had a 10-year waiting period. The initiation of liberalization in India posed great challenges for Bajaj Auto. Liberalisation brought the threat of cheap imports and FDI from top companies like Honda. Rahul Bajaj became famous as the head of the Bombay Club, which opposed liberalization. The scooter sails plummeted as people were more interested in motorcycles and the rival Hero Honda was a pioneer in it. The recession and stock market collapse of 2001 hit the company hard and it was predicted that the days of Bajaj Auto were numbered. However, Bajaj Auto re-invented itself, established a world-class factory in Chakan, invested in R&D and came up with Bajaj Pulsar Motorcycle. Bajaj Pulsar is currently a leader in its segment. Recently, Rahul Bajaj was elected to Rajya Sabha from Maharashtra

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NARAYANA MURTHY

One of the founders of Infosys Technologies Limited; Chosen as the World Entrepreneur of the Year - 2003 by Ernst and Young Narayana Murthy is the Non-Executive Chairman and Chief Mentor of Infosys Technologies Limited. He is a living legend and an epitome of the fact that honesty, transparency, and moral integrity are not at variance with business acumen. He set new standards in corporate governance and morality when he stepped down as the Executive Chairman of Infosys at the age of 60. Born on August 20, 1946, N.R. Narayana Murthy is a B.E. Electrical from University of Mysore (1967) and M.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in Pune. In 1981, Narayana Murthy founded Infosys with six other software professionals. In 1987, Infosys opened its first international office in U.S.A. With the liberalization of Indian economy in 1990s, Infosys grew rapidly. In 1993, the company came up with its IPO. In 1995, Infosys set up development centers across cities in India and in 1996, it set up its first office in Europe in Milton Keynes, UK. In 1999, Infosys became the first Indian company to be listed on NASDAQ. Today (in 2006), Infosys has a turnover of more than $ 2billion and has employee strength of over 50,000. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" survey conducted by Hewitt and in the Business World's survey of "India's Most Respected Company." Conducted in the same year. Along with the growth of Infosys, Narayana Moorthy too has grown in stature. He has received many honors and awards. In June 2000, Asia week magazine featured him in a list of Asia's 50 Most Powerful People. In 2001, Narayana Murthy was named by TIME/CNN as one of the 25 most influential global executives. He was the first recipient of the Indo-French

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Forum Medal (2003) and was voted the World Entrepreneur of the Year - 2003 by Ernst and Young. The Economist ranked Narayana Murthy eighth on the list of the 15 most admired global leaders (2005) and Narayan Murthy also topped the Economic Times Corporate Dossier list of India's most powerful CEOs for two consecutive years - 2004 and 2005.

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CHAPTER -17
DATA EXAMINATION AND INTERPRETATION

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Q.1 which generation entrepreneur are you?

Fig 17.1
Aspirning 6%

Third 10%

Second 30%

First 54%

Interpretation

Out of 50 survey samples 54% said they are first generation Entrepreneur. 30% said they are second generation entrepreneurs. 10% said they are continuing with their ancestors business. While 6% said they are willing to become entrepreneurs.

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Q.2 What is your qualification?

Fig 17.2

Others 7%

MBA 30%

Under graduate 33%

Graduate 30%

Interpretation

Out of 50 survey samples 40% said they are Under Graduate. 30% said they have completed their graduation. 30% said they have done Masters (M.B.A). 7% said they have done some or other technical courses.

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Q.3 what was the motivational trigger for you to become entrepreneur?
Fig 17.3
Market oppurtuinity 10%

Family background 2%

Idea driven 12%

Independence 41%

Dream desire 25%

challenge 10%

Interpretation

Out of 50 survey samples 41% said they opted for entrepreneurship for Independence. 25% said it was their dream to be an entrepreneur. 10% said they opted for entrepreneurship because of challenge . Market opportunity made them entrepreneurs said 10%. 12% said they opted entrepreneurship because they had some unique ideas. And 2 % said they opted entrepreneurship because of family back ground.

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Q.4 what was the stand of your family members when you opted for establishing enterprises?
Fig 17.4

Very Opposed supportive 10% 10%

Neutral 30% Supportive 50%

Interpretation Out of 50 survey samples 50% of people said their family was supportive to them when they thought of establishing an enterprises. 30% said their family was neutral when they were struggling for becoming an entrepreneur. 10% said their family opposed their decision for opting entrepreneurs. 10% said their family was very much supportive.

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Q.5 what was the source of your start up funding?

Fig 17.5
Angel investor 8%

Venture Capitalist 20% Self financed 60%

Banks 12%

Interpretation

Out of 50 survey samples 60% said they started their enterprises by their own finance. 20% they had taken help of venture capitalist to start their business. 12% said they had taken loan from banks. 8% said angel investor has helped them to start their business.

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Q.6 what is the biggest problem faced by you?

Fig 17.6
Infrastructure 6% Licence Raj 26%

Labor laws 20%

Taxation 20% Corruption 14%

Legal system 14%

Interpretation

Out of 50 survey samples 6% said Infrastructure is problem for them. 14% said legal system is hurdle for them. 14 % Corruption is stopping them from achieving their goals. 20% said labor laws is problem for them. 20% said taxation system is problem for them. 26% said license raj is hurdle for them.

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Q.7 According to you which is the best place to do business in India?

Fig.17.7

Bangalore 6%

delhi 8%

Gujarat 20% Maharashtra 66%

Interpretation

Out of 50 survey samples 66% said Maharashtra is the best place for establishing enterprises in India. 20% said Gujarat is their dream destination do to business. 8% said Delhi is the place they think is best for establishing enterprises. 6% said Bangalore is best place to do business in India.

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Q.8 would you like your son/daughter to become entrepreneur?

Fig 17.8
Their choice 6% No 14%

Yes 80%

Interpretation

Out of 50 survey samples 80% of said they would like their son / daughter to became entrepreneur. 14% said they would like if their Son/Daughter do service rather than business. 6% said it will be their son/daughters decision if they want to became entrepreneur or not .

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Q.9 Have globalization policy affected business?

Fig17.9

No 21%

Yes 79%

Interpretation

Out of 50 survey samples 79% said yes Globalization policy has affected their business. 21% said their business is not affected by globalization policy.

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Guiding tips for Aspiring Entrepreneur

Focus. Focus. Focus. Know what you do. Do what you know. Know what you know, what you don't know and who knows what you don't. Act like a startup. Learn under fire. No one will give you money. Don't fall victim to your own Business. Know when to call it quits.

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CHAPTER -18
IN CONVERSATION

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INTERVIEW WITH PROF. DINESH AWASTHI, PART TIME ENTREPRENEURSHIPS DEVELOPMENT OF INDIA, GANDHINAGAR

LECTURER,

1) There is a lot of talk about entrepreneurship in India. Never before have we seen people so eager to start ventures. What, according to you, is the key driver for this?

Ans: You are absolutely correct. These are very exciting times. I think several key drivers are

leading to this new thrust in entrepreneurship: a never-before economic growth; a more challenging mindset of the youth; new first-generation role models, such as Narayana Murthy and Sunil Mittal; the takeover of large companies abroad by Indian businessmen; a more liberal policy framework; and a general environment that celebrates the success of entrepreneurial initiatives. All these factors have boosted the confidence of the countrys youth. They dream big and achieve big. Never was it so in the history of Indian business. However, a note of caution to this enthusiasm is the findings of the Global Entrepreneurship Monitor (GEM),which indicate that while India is at the top of the table with an Entrepreneurial Activity Index of 17.5as compared to Japan, which is at the bottom with an Index of 2.5the quality of Indian entrepreneurship is not very encouraging. It is dominated by necessity-driven entrepreneurial intents, rather than opportunity-driven ones.

2) What do you think are the main hurdles in the growth of entrepreneurship? How can they be overcome?

Ans: The major hurdle I see is the lack of access to risk capital for first-generation powerhouses. The banking system remains conservative, and the venture capital market is still in its infancy. Hoards of brilliant but somewhat risky ideas get killed due to a lack of funds. The government is currently promoting innovations through facilitating the setting up of Technology Business Incubators in various engineering colleges, universities and centers of excellence, such as IIM-A, MICA, NID and IIT-B. But a lot more needs to be done. For instance, while the Department of Science & Technology in India has set up around 50 incubators (which have seen decent success), China has promoted close to 800 technology business incubators, leading to surge of high-tech businesses in China. We need to do a lot more to facilitate the emergence and growth of firstgeneration entrepreneurs who are competent and globally competitive

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3) Can entrepreneurship be taught or is it an inbuilt quality? Ans: Entrepreneurship can be successfully taught, just like any other discipline. But the methodology and pedagogy has to be very different; it has to be very action-oriented. Today, international universities are offering full-fledged courses on entrepreneurship. The Harvard Business School, Sloan School of Management and the Babson College, U.S.A., are some of the reputed institutions that offer entrepreneurship programs. Of late, management institutes in India, too, have woken up to the fact that entrepreneurship is a challenging option that presents opportunities galore. Prestigious institutions like the IIMs and the Indian School of Business (ISB) have already started offering entrepreneurship as an elective. It has now been proven that people arent necessarily born entrepreneurs; entrepreneurs can also be created through well-conceived training.

4) I have seen a number of people starting up, but failing to make it really big. What are the reasons for this? Ans: Setting up and running a business enterprise encompass multiple operations that demand certain competencies in the entrepreneur. In the absence of the right orientation, it becomes difficult for the entrepreneur to sustain the business. Moreover, if one becomes the CEO of an enterprise just by virtue of being born into that family, not on the basis of his/her aptitude, knowledge and competency, the chances are high of that business going bust. So, it is important that the successor have the right kind of knowledge and orientation before taking over the reins of the business.

5) What is your take on the future of entrepreneurship in India? Ans:Just amazing. The 90s belonged to managers; the early 21st century will belong to entrepreneurs. Without doubt, entrepreneurs are going to witness interesting and fruitful times in realizing their dreams. Optimism is in the air, opportunities are aplenty, and the killer instinct among the youth is abundant. All this makes it the most ideal time to take the big plunge. India is going to witness an unleashing of entrepreneurial spirit like never before.

6) How can entrepreneurship be further promoted in India? What is the best ecosystem for it?

Ans: All that is needed is to facilitate the growth of entrepreneurship, unhindered. I strongly believe that
the time has come to introduce entrepreneurship into the field of education, beginning at the secondary

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level. Its a pity that we have all sorts of policies in India, but we have yet to develop a National Entrepreneurship Policy. It will also be worthwhile to think of setting up an Entrepreneurship Commission, if not a separate Ministry of Entrepreneurship, as in Malaysia. Moreover, we need to promote innovations and facilitate the emergence of high-tech enterprises to remain global leaders. We need a more focused and well-crafted strategy to promote entrepreneurship education in engineering colleges and to set up incubators therein. Such an effort must be backed by providing these innovators access to startup funds or risk capital. Our financial institutions and banks will need to be more proactive in helping these efforts come to fruition. The media, too, will play a critical role in creating an environment in which entrepreneurship germinates and grows

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CHAPTER -19
CONCLUSION

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19.1 CONCLUSION

The report attempted to provide the reader with a broad brief overview of entrepreneurship in India in general. The first section presented the History of entrepreneurship in India importance of entrepreneurship as a key factor in driving growth, and of the impact entrepreneurship has on economies of countries. Different types of entrepreneurship Additionally, it also emphasized that entrepreneurship education has indeed a vital role in shaping attitudes, skills and culture required to foster entrepreneurship. The next section concentrated on entrepreneurship education in the Indian context. India has a long record of investing in entrepreneurship education, starting from very soon after Independence. This section traces the timeline of efforts made by government and nongovernmental players in this area. The another section of report contain the stories of some of the great entrepreneurs of India who have played important role in shaping Country and who are being the source of inspiration to many young entrepreneurs.

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CHAPTER -20
ANNEXURE

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REFERENCES Entrepreneurship Education in India -A PERSPECTIVE By: Priya Bahadur Report Of National Knowledge Commission By: Govt of India Entrepreneurship in India: Why & How? By:Megha Aggarwal Entrepreneurship Development in the Micro Small and and Medium Enterprise Sector in India By: Shamika Ravi

Women Entrepreneurship in India By:Mrs. Savita Kumari

WEBLIOGRAPHY http://economictimes.indiatimes.com/topic/Entrepreneurship http://www.atrc.net.pk/resources/entrepreneurship/entrepreneurship. http://www.ediindia.org/&q=edi&ei=YwErUfCTM4yNrge16YG4Ag&usg=AFQjCN Eq4SgGf-nipTGQw1FWeC3gTxb5Ng http://www.entrepreneur.com/magazine/index.html

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