Def init ions

Entrepreneur (Oxford Dictionary) Person who undertakes an enterprise with chances of

profit or loss. (As I have understood, Entrepreneur is a person who undertakes a business
activity of whichhe has no background and faces considerable risks in the process. If either of
the two elements, i.e., no background or considerable risk is missing in the venture, it is no
entrepreneurship).

Advantages of Entr epreneur s hip

To an Individual
(a) Provides Self Employment for the entrepreneur
(b) Entrepreneur can provide employment for near & dear one as well
(c) Entrepreneurship often provides an employment and livelihood for next
generations as well.
(d) Freedom to use own ideas Innovation and creativity
(e) Unlimited income / higher retained income Bill Gates has risen to become
richest in the world in a single life time through entrepreneurship
(f) Independence
(g) Satisfaction

To the nation
(a) Provides larger employment Entrepreneurs provide employment for self as
well as other people and is source of employment creation.
(b) Results in wider distribution of wealth This is a logical sequel of above
issue. Higher the employment, greater the distribution of wealth

(c) Mobilizes local resources, skills and savings

(d) Accelerates the pace of economic development Entrepreneurship is the
govts one of the most trusted vehicles for economic development
(e) Stimulates innovation & efficiency
Wha t makes a Succ es s ful Ent repr eneur?
1. The urge for achievement (most often monetary ambitions) Most Important
2. Willingness to take moderate risks (High risk takers are not entrepreneurs but gamblers).
3. Determination to win
4. Win Win Personality
5. Ability to identify & explore opportunities
6. Analytical ability to take strategic decisions
7. Perseverance
8. Flexibility
9. Capacity to plan and organize
10. Preparedness to undergo physical and emotional stress
11. Positive self concept/Self Belief
12. Future orientation Vision
13. Ethics and Values Mission
Who can be an Ent repr eneur?
1. Who feels the need for achievement
2. Who can take moderate risks
3. Who possess skills in organizing
4. Who can capitalize on opportunities
5. Who has some financial strength On his own or borrowed
6. Who has ability to work hard
7. Who has desire for responsibility
8. Who has a clear perception of probability of success
9. Who gets stimulation by feedback
10. Anyone He can be male, female or even a Eunuch
11. Who does not have previous experience
Characteristics of an Entrepreneur
1. Mental ability
2. Clear objectives
3. Business secrecy
4. H.R. ability
5. Communication ability
6. Technical knowledge
7. Achievement oriented
8. Perseverance
9. Ethical
10. Motivator
11. Self confident
12. Long term involvement
13. High energy level
14. Problem solver
15. Initiator
16. Goal setter
17. Risk taker
(Please note that all the three headings are necessarily the same)

Key Elements of Entrepreneur

1. Need for Achievement
2. Risk taking
3. Organizing Skills
4. Ethics & Values
5. Vision
6. Innovation

Importance of SSIs.
Ans. Small Scale Industries (SSIs) provide numerous benefits to the entrepreneurs, the
society and to the nation as a whole. These can generally be clubbed into two heads
economic benefits and social benefits, and are as elucidated hereunder.
Economic Benefits
(a) SSIs generally are less intensive on technology and are therefore within
reach of individuals who may not be highly educated.
(b) They need small capital and can be started by people with little resources.
(c) Due to small size, their gestation period is often short.
(d) Most SSIs use local raw materials which ensures good prices for producers
of raw materials.
Social Benefits
(a) SSIs generate employment at the local level, which is much needed for a
developing country like ours with a heavy population load. In India there are
35 lac SSI units, generating employment for over 2 crore people.
(b) With SSIs generating employment and wealth creating avenues, equitable
distribution of income is possible to some extent with their help.
(c) Also, SSIs check monopoly of strong players to a large extent by producing
substitutes, which are cheaper and affordable.
(d) Infrastructure development in rural and semi urban areas has also been
possible because of SSIs. Baramati, Ichalkarangi, Mokhama, Sivakasi,
Tumkur, Tirupur are some such places where infrastructure has vastly
developed.
(e) SSIs have helped in rural development. Agriculture provides employment
for only few months in a year. SSIs provide employment round the year.
(f) SSIs have improved employment opportunities and many SSIs are in
under/semi developed areas, even in villages. This keeps a check on the
exodus of workers to metros and urban zones.
(g) SSIs help to establish the linkage between agriculture and industry to
harness the potential of both the sectors.
Corporate Social Responsibility

is not a new concept in India, however, the Ministry of Corporate Affairs, Government of India
has recently notified the Section 135 of the Companies Act, 2013 along with Companies
(Corporate Social Responsibility Policy) Rules, 2014 "hereinafter CSR Rules" and other
notifications related thereto which makes it mandatory (with effect from 1st April, 2014) for
certain companies who fulfill the criteria as mentioned under Sub Section 1 of Section 135 to
comply with the provisions relevant to Corporate Social Responsibility. As mentioned by United
Nations Industrial Development Organization (UNIDO), CSR is generally understood as being
the way through which a company achieves a balance of economic, environmental and social
imperatives ("TripleBottom-Line- Approach"), while at the same time addressing the
expectations of shareholders and stakeholders. WHAT IS CSR? The term "Corporate Social
Responsibility (CSR)" can be referred as corporate initiative to assess and take responsibility for
the company's effects on the environment and impact on social welfare. The term generally
applies to companies efforts that go beyond what may be required by regulators or environmental
protection groups. Corporate social responsibility may also be referred to as "corporate
citizenship" and can involve incurring short-term costs that do not provide an immediate
financial benefit to the company, but instead promote positive social and environmental change.
Moreover, while proposing the Corporate Social Responsibility Rules under Section 135 of the
Companies Act, 2013, the Chairman of the CSR Committee mentioned the Guiding Principle as
follows: "CSR is the process by which an organization thinks about and evolves its relationships
with stakeholders for the common good, and demonstrates its commitment in this regard by
adoption of appropriate business processes and strategies. Thus CSR is not charity or mere
donations. CSR is a way of conducting business, by which corporate entities visibly contribute to
the social good. Socially responsible companies do not limit themselves to using resources to
engage in activities that increase only their profits. They use CSR to integrate economic,
environmental and social objectives with the company's operations and growth3 ." FOR WHOM
its APPLICABLE? The companies on whom the provisions of the CSR shall be applicable are
contained in Sub Section 1 of Section 135 of the Companies Act, 2013. As per the said section,
the companies having Net worth of INR 500 crore or more; or Turnover of INR 1000 crore or
more; or Net Profit of INR 5 crore or more during any financial year shall be required to
constitute a Corporate Social Responsibility Committee of the Board "hereinafter CSR
Committee" with effect from 1st April, 2014. The pictorial representation below gives the
representation of Section 135 (1)
CSR Activities The Policy recognizes that corporate social responsibility is not merely
compliance; it is a commitment to support initiatives that measurably improve the lives of
underprivileged by one or more of the following focus areas as notified under Section 135 of the
Companies Act 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014: i.
Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation &
making available safe drinking water; ii. Promoting education, including special education &
employment enhancing vocation skills especially among children, women, elderly & the
differently unable & livelihood enhancement projects; iii. Promoting gender equality,
empowering women, setting up homes & hostels for women & orphans, setting up old age
homes, day care centers & such other facilities for senior citizens & measures for reducing
inequalities faced by socially & economically backward groups; iv. Reducing child mortality and
improving maternal health by providing good hospital facilities and low cost medicines; v.
Providing with hospital and dispensary facilities with more focus on clean and good sanitation so
as to combat human immunodeficiency virus, acquired immune deficiency syndrome, malaria
and other diseases; vi. Ensuring environmental sustainability, ecological balance, protection of
flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining
quality of soil, air & water; vii. Employment enhancing vocational skills viii. Protection of
national heritage, art & culture including restoration of buildings & sites of historical importance
& works of art; setting up public libraries; promotion & development of traditional arts &
handicrafts; ix. Measures for the benefit of armed forces veterans, war widows & their
dependents; x. Training to promote rural sports, nationally recognized sports, sports & Olympic
sports; xi. Contribution to the Prime Ministers National Relief Fund or any other fund set up by
the Central Government for socio-economic development & relief & welfare of the Scheduled
Castes, the Scheduled Tribes, other backward classes, minorities & women; xii. Contributions or
funds provided to technology incubators located within academic institutions, which are
approved by the Central Government; xiii. Rural development projects, etc xiv. Slum area
development. Explanation. For the purposes of this item, the term slum area shall mean any
area declared as such by the Central Government or any State Government or any other
competent authority under any law for the time being in force.
Nine Qualities Every Woman Entrepreneur Needs to Succeed in Business

1. Management and Control:

A woman or a group of women manages the whole business of enterprise. She prepares
various plans and executes them under her own supervision and control. There may be
some persons to help her but ultimate control lies with the woman.

2. Employment to Women:
A woman entrepreneur must provide at least 51 percent of the employment generated in her
enterprise to women.

3. Risk-taking:
Risk means uncertainty. It is the condition of not knowing the outcome of an activity. A woman
entrepreneur takes calculated risk.

She faces uncertainty confidently and assumes risk. She has to tie up capital and wait for good
returns. A woman entrepreneur likes to take realistic risks because she wants to be a successful
entrepreneur.

4. Good organizer:
The most critical skill required for industrial development is the ability of building a sound
organization. A woman entrepreneur assembles, co-ordinates, organizes and manages the other
factors namely land, labor and capital. She obtains factors of production from the society and
supplies them finished product.

5. Self confidence:
It is essential to be a self confident for a woman entrepreneur. She should have faith in herself
and in her abilities. She should have the confidence to implement the change and overcome any
resistance to change. A woman entrepreneur should have courage to own the mistakes and
correct them.

6. Decisionmaker:
The main function of a woman entrepreneur is to make decision. She takes various decisions
regarding the activities of her enterprise. She decides about the type of business to be done and
the way of doing it. A woman entrepreneur must be clear and creative in decision making
process.
7. Visionary:
A woman entrepreneur is one who incubates new ideas, starts her enterprise with these ideas and
provides added value to society based on their independent initiative.

8. Hard worker:
A distinguishing feature of a woman entrepreneur is the willingness to work hard. She has to
follow the principle, Hard-work is the key to success.

9. Achievement oriented:
A woman entrepreneur is an achievement oriented lady, not money hungry. She works for
challenge, accomplishment and service to others. Achievement orientation is a derive to
overcome challenges, to advance and to grow.

10. Optimistic:
A woman entrepreneur must be optimistic. She should approach her venture with a hope of
success and attitude for success rather than with a fear of failure. The positive thinking of woman
entrepreneur can turn the situation favorable to her.

11. Technically competent:

The success of an enterprise largely depends upon the ability of woman entrepreneur to cope
with latest technology. Technical competency refers to the ability to devise and use the better
ways of producing and marketing goods and services.

12. Bold and brave:

Women entrepreneurs face the adversities boldly and bravery. She has faith in herself and
attempts to solve the problems even under great pressure.

13. Mentally sound:

A woman entrepreneur is energetic, single-minded, having a mission and a clear vision. She
should be a lady of creative thinking and analytical thinking. She must be intelligent, adaptable
and problem solver.

14. Leadership:
Leadership quality is one of the most important characteristic of a woman entrepreneur. It is the
process of influencing and supporting others to work enthusiastically towards achieving
objectives.
TYPES OF ENTERPRISES

Micro, Small and Medium Enterprises (MSMEs) are widely called the back-bone of the Indian
economy. According to the online official portal of MSME, this sector is the largest employment
providing sector in India with employing more than 600 lakhs persons in India. In recent years,
it has emerged as the most dynamic sector displaying phenomenal growth by contributing 10%
of share in GDP of India, contributing 40% to total economy exports, producing about 7500
items and involving in Technology Upgradation and implementation (55% of MSMEs involved)
in particular (ASSOCHAM report, 2010). This sector comprises of business units with varying
sizes that range from tiny to medium based on level of investment. Most of these also act as
ancillary units for large scale industry. The following section defines each type of units in the
small scale sector.