EDUCATIONAL ENTREPRENEURSHIP THE NEED OF THE HOUR

- Mrs. B. Satyavani

ABSTRACT

Much of the recent literature on improving education in India seeks to promote

entrepreneurship as the solution to raising educational quality and equity. But, the historical
record documenting substantial and sustained departure from conventional educational
practices is scant despite numerous attempts at entrepreneurial innovation. This paper
contends that the challenge of entrepreneurially induced change is not due to a deficit of ideas
or lack of volition on the part of those who seek change. Rather it is due to intrinsic features
of the educational system which defy modification. These include not only such matters as a
stubborn school culture, but also the very role of schools as organizations that must serve
other organizations and depend upon them for resources. The paper evaluates the record of
new forms of organization such as charter schools and educational management organizations
as well as other well-intentioned strategies for transforming Indian education. It concludes
that successful educational entrepreneurship must overcome a deeply-rooted institutional
conservatism and resistance to change.

Key words: Educational Entrepreneurship, Educational Management Organizations,

Educational quality and equity and Indian education.

-----------------------------------------------
*Research Scholar, Dept of Commerce & Business Administration, Acharya Nagarjuna
University, and Assistant Professor, Dept of Management Studies, Vignans Nirula Institute of
Technology & Science for Women, Guntur. e-mail: satyavani.bethapudi@gmail.com

EDUCATIONAL ENTREPRENEURSHIP THE NEED OF THE HOUR

Introduction
There is a growing interest in the role that entrepreneurship can play as a catalyst to
achieve economic and social development objectives, including growth, innovation,
employment, and equity. An increasing area of interest in this field is how a range of actors
including governments, the private sector, and international organizationscan bolster
entrepreneurs success and progress on broader socioeconomic goals. The potential beneficial
spillovers of entrepreneurship and the potential success of entrepreneurs have garnered
attentionprovoking interest in interventions that stimulate individuals decisions to become
and succeed as entrepreneurs. Entrepreneurship promotion efforts can include the easing of
business environment constraints, enhancing access to finance and credit, as well as the
provision of support to strengthen business practices and enterprise management.

Embedded within a number of entrepreneurship promotion activities are efforts that

aim to develop mindsets, knowledge, and skills associated with entrepreneurial success.
Research suggests that several of these mind-sets, knowledge, and skills can be learned, thus
situating educational institutions and training programs firmly within the broader discussions
around entrepreneurship promotion.

The Concept of Educational Entrepreneurship

The term entrepreneurship has been used commonly in recent years to describe
strategies to improve education. Because the term has been associated generically with the
development of new alternatives in the marketplace, its educational variant has typically
referred to a system of school choice, and especially charter schools and vouchers. The
general view is that the rewards of the marketplace provide incentives for undertaking the risk
of innovation that is required to develop better educational alternatives. Even in the public
school districts it is not unusual to hear of a quest for entrepreneurship through the
establishment of new schools, and especially small high schools or to hear of
intrapreneurship, the quest to transform an existing school.

What is clear from the literature on entrepreneurship is that the term is used to describe
a wide range of phenomena. To some it is the establishment of a new enterprise under risky
conditions and with a high potential financial return for taking that risk. Others see
entrepreneurship as closer to the act of invention, also with great risk and great potential
payoffs. Yet others attribute entrepreneurship to any act that is likely to add considerable value
to a product or service. Entrepreneurship is a globally recognized phenomenon lacking a
single precise definition. Early in the 20th century, the role of entrepreneurship in promoting
innovation and implementing change in an economy by introducing new products or
processes. Researchers define entrepreneurship as a process of discovery; the acting upon
previously unnoticed and often marginalprofit opportunities. Some definitions tie
entrepreneurship only broadly to specific economic activities, describing a process of
opportunity recognition to create value and act upon that opportunity.

Emergence of Education and Training for Entrepreneurship

 Even against the backdrop of debates about whether entrepreneurship can be learned,
there is a growing global interest in entrepreneurship education and training (EET and by its
inclusion in international agendas and programs. Few researchers suggests that this
popularization of EET is in part driven by the mutual self-interests of key stakeholders,
including policymakers (the political imperative for job creation), students (more graduates
competing for fewer jobs, seeking new opportunities and ways to set them-selves apart), and
education institutions (to satisfy policymakers as well as the student market through course
offerings). Taken together with indications that aspects of entrepreneurship can be taught and
learned, education and training systems are emerging as a key component of broader
discussions about the pro-motion of entrepreneurship.

These broad definitions of entrepreneurship suggest a potentially key role

entrepreneurship in education, through innovation and managerial breakthroughs, providing
the spark needed to improve the productivity, quality, and equity of Indian education. Schools
are the focus of great expectations, but habitually charged with disappointing results and an
inability to meet expectations. Education is widely believed to be the solution to major social
challenges including those of workplace productivity, economic competition, social equity,
civic behaviour, technology, cultural knowledge, and effectiveness of democracy. In response
to these persistent issues, schools are under constant pressure to change, often in conflicting
directions, not only in the U.S., but in most countries.

Types of Entrepreneurship education and training (EET) Programs

Entrepreneurship education and training (EET) programs can be classified under two
related but distinct categories: education programs and training programs. Broadly speaking,
both aim to stimulate entrepreneurship, but they are distinguished from one another by their
variety of program objectives or outcomes. While differing from program to program,
academic entrepreneurship education programs tend to focus on building knowledge and skills
about or for the purpose of entrepreneurship. Entrepreneurship training (ET) programs, by
contrast, tend to focus on building knowledge and skills, explicitly in preparation for starting
or operating an enterprise (Volkmann et al. 2009; GEM 2010a). While these two categories
are conceptually distinct, it should be noted that in practice there are instances where the
characteristics of EE and ET overlap or are integrated into a single program.

Advancing the classification of EET, programs can also be distinguished by their

target audiences. The academic nature of EE means these programs target two groups in
particular: secondary education students and higher education students, the latter including
 both graduate and undergraduate students enrolled in formal degree-granting programs. By
contrast, ET programs target a range of potential and practicing entrepreneurs who are not part
of formal, degree-granting programs.

Potential entrepreneurs targeted by ET programs can include, at one end of the range,
vulnerable, unemployed, inactive individuals, or necessity-driven potential entrepreneurs, and
at the other end of the range, highly skilled, innovation-led, or opportunistic potential
entrepreneurs. Likewise, the range of practicing entrepreneurs runs from individuals owning
informal, micro- and small enterprises all the way to high-growth potential enterprise owners.
Building on these concepts, this study proposes the following definitions for classifying EET
programs according to both program type and target audience.

EEfor Secondary and Higher Education Students. This category generally refers to the
building of capabilities, skills, and mindsets about or for the purpose of entrepreneurship. The
goal is to expand the pool of potential future entrepreneurs. Thus, it is generally integrated
within formal education institutions at the secondary and higher education levels (including
universities, colleges, and vocational schools). In this context, this study examines EE
programs targeted at both secondary and higher education students enrolled in formal
secondary, undergraduate, and graduate degree-granting programs.
ETfor Potential and Practicing Entrepreneurs. This category generally refers to
the building of knowledge and skills in preparation for starting or operating a business. Thus,
the goal of ET is to aid potential entrepreneurs to become entrepreneurs as well as help current
entrepreneurs become higher performing entrepreneurs. The broad nature of these target
audience definitions means that ET programs can target a range of potential and practicing
entrepreneurs, regardless of age, level of education, prior experience, or circumstances (e.g.,
highly skilled and educated, self-employed, underemployed, and informal economy workers).
Business start-up as educational goal?

There are some general elements in the literature on what entrepreneurship education
is, should be or must be. It is described as perhaps the most important economic development
mechanism Entrepreneurship education is the structured, formal conveyance of
entrepreneurial knowledge, namely the concepts, skills and mentality individuals use during
start-ups and development of growth-oriented ventures

Entrepreneurship education is the process of providing individuals with the concepts,

creativity and skills to recognise opportunities that others have overlooked, and to have the
insight, self-esteem and knowledge to act were others have hesitated. Fostering
entrepreneurship also means having a vision of a future with a lot of possibilities. However,
entrepreneurship education is about promoting change in attitudes to increase the number of
students who view business start-up as a viable career Extra beneficial ways to conduct
entrepreneurship education are to arrange competitions, live case discussions (with successful
entrepreneurs), students creating and running mini-companies, and placement in
entrepreneurial companies, in other words just like it is described as a practice There is a
consensus that students can be successfully endowed with an entrepreneurial culture. In
contrast to traditional education, viewed as transformation of knowledge and skills,
entrepreneurship education is said to be about fostering and changing attitudes and motives.
The agreed importance of entrepreneurship education is not related to entrepreneurship
education in itself; it is related to the assumed effects of it.

Vitality of Entrepreneurial Education

These broad definitions of entrepreneurship suggest a potentially key role
entrepreneurship in education, through innovation and managerial breakthroughs, providing
the spark needed to improve the productivity, quality, and equity of American education. The
focus of this paper is to ask whether it is a shortage of entrepreneurialism or obstacles to
entrepreneurial success that has accounted for the inertia of the educational industry. Schools
are the focus of great expectations, but habitually charged with disappointing results and an
inability to meet expectations. Education is widely believed to be the solution to major social
challenges including those of workplace productivity, economic competition, social equity,
civic behaviour, technology, cultural knowledge, and effectiveness of democracy. In response
to these persistent issues, schools are under constant pressure to change, often in conflicting
directions, not only in India, but in most countries.

One of the most common complaints about education is its resistance to change.
Historically, there have been many attempts to shift the direction of education in the U.S.
through new ideas, new leadership, national campaigns for excellence, and instilling fears of
losing status or economic and military superiority to competitors because of an
underperforming educational system.

LEARNING ENTREPRENEURIAL EDUCATION

Many scholars state that there is only one way to learn to become entrepreneurial, and
that is by learning through own experience. Cope leans on a variety of scholars when stating
that there seem to be no shortcuts, it can only be acquired through learning-by-doing or
direct observation. The research that has been done on how real-life entrepreneurs learn is
however largely disconnected from the educational domain, and offers little advice to
teachers. This leaves teachers with the unanswered question learning-by-doing-what? There
is a need for robust advice on what to let students do in order to develop their entrepreneurial
competencies.

Activities that trigger entrepreneurial competencies

Previous research can give some initial advice on learning-by-doing activities that can
trigger the development of entrepreneurial competencies. Teachers should give their students
assignments to create value (preferably innovative) to external stakeholders based on
problems and/or opportunities the students identify through an iterative process they own
themselves and take full responsibility for. Such assignments lead to repeated interactions
with the outside world, which triggers uncertainty, ambiguity and confusion. This should be
regarded as a positive outcome and a source of deep learning. To alleviate the levels of
difficulty and uncertainty such an assignment can result in, a team-work approach should be
applied giving the students access to increased creative ability and peer learning opportunities.
Sufficient time allowing for establishing fruitful relationships with external stakeholders
should also be given to the students, preferably months or years. Robust advice on how to
manage the value creation process should be given to the students, some of which will be
outlined below in the Figure which outlines the relation between educational assignments,
triggered activities / events and developed entrepreneurial competencies.
Figure 1. A model of entrepreneurial education and its outcomes. The relationship between
educational assignments, emotional events / situations / activities and developed
entrepreneurial competencies.
The assessment of such an assignment should concentrate on the activities triggered
rather than the developed entrepreneurial competencies Each individuals contribution in
terms of interaction with outside stakeholders should be assessed and supported by the teacher
continuously. It is the interactions and activities that drive the learning process, and these
interactions and activities should therefore be the focus of teachers assessment rather than the
evasive entrepreneurial competencies. Assessment strategies could include asking students to
report names and other practical information about external stakeholders contacted,
occurrence of external stakeholders willing to engage with the students, and letting students
reflect on whether the value creation attempts were appreciated by the external stakeholders
Such assessment strategies will lead to what is often called constructive alignment, i.e. when
the assessment applied is in alignment with what the students need to do in order to achieve
the learning outcomes stated by the teacher

Future Perspectives
In the future we can hope for increased understanding of when, how and why learning-
by-doing works and how it can be integrated into education on all levels and for most (if not
all) subjects. The tools, methods and concepts presented in this chapter have hopefully been
contextualized to education resulting in curriculum material supporting teachers and students,
a task preferably accomplished through close collaboration between experienced and
committed teachers on all levels of education and researchers in entrepreneurship and
education, in line with recommendations by Elmore (1996). A more comprehensive list of
tools, methods and concepts useful for iterative student-driven value creation processes in
education will hopefully be compiled, together with illustrative case studies outlining
generalizable features. The code will hopefully be found for how to unlock the door to the
classroom, leading to teachers widely adopting effective and efficient entrepreneurial
education pedagogy. If so, it will have happened through a concerted effort involving teachers,
students, parents, principals, policymakers, researchers, authorities, international associations
and other key stakeholders, all playing their important role in the substantial challenge of
succeeding in educational reform. In the future we will hopefully also see the establishment
and strengthening of explicit support structures in schools, colleges and universities as well as
other crucial management and organizational structures, supporting teachers and students in
the task of interacting with the outside world leading to tandem learning and value creation.
Conclusion
Despite its promising effects on students and society, it is important to keep in mind
that the field of entrepreneurial education is in a quite early stage of development. It is still
regarded as an innovative but marginal pedagogical approach spurring much interest but also
much confusion among various stakeholders. There is tremendous work remaining if we are
to succeed in making effective and efficient entrepreneurial education available to a majority
of people in the educational systems of the world. And the road to achieving such an
ambitious goal is still long, winding and risky. There is a need to increase awareness of
entrepreneurial education as a pedagogical approach relevant to all students and on all levels
of education, a need for more and closer collaboration between researchers and practitioners
in the two domains of education and entrepreneurship, a need for closing the gap between
stated and desired effects of entrepreneurial education and a need for increased understanding
of when, how and why entrepreneurial education can develop entrepreneurial competencies,
especially on primary and secondary levels of education and with an embedded approach.

References

1. Alberti, F. (1999). Entrepreneurship Education: scope and theory, in C. Salvato, P.

Davidsson & A. Persson
2. Bird, B.J. (2002-2003) Learning Entrepreneurship Competences: the self-directed learning
approach, International Journal of Entrepreneurship Education, 1(2), pp. 203-227.
3. Giles, D. E. & Eyler, J. 1994. The theoretical roots of service-learning in John Dewey:
Toward a theory of service-learning. Michigan Journal of Community Service Learning, 1,
77-85.
4. Gilinsky, Jr., A. (2002), Turins Networks, Inc., Entrepreneurship Theory and Practice (ET
& P), 27(1), pp. 77-91.
5. Henry, C., Hill, F. & Leitch, C. (2003). Entrepreneurship Education and Training.
Aldershot: Ashgate.
6. Kirby, D. A. 2004. Entrepreneurship education: can business schools meet the challenge?
Education + Training, 46, 510-519.
7. Kliebard, H. M. 1988. Success and failure in educational reform: Are there historical
lessons? Peabody Journal of Education, 65, 143-157.
8. Solomon, G.T, Duffy, S. & Tarabisky, A. (2002) The State of Entrepreneurship Education
in the United States: a national survey and analysis, International Journal of
Entrepreneurship Education, 1(1), pp. 65-86.

ROLE OF ENTREPRENEURSHIP IN ECONOMIC

DEVELOPMENT IN INDIA
A. Bhagyaraj (Research Scholar),
Department of Management Studies, S.V. University, Tirupati
Prof. D.V. Ramana,
Department of Management Studies, S.V. University, Tirupati

ABSTRACT: Entrepreneurship is the engine of economic growth and development,

particularly in India. The latest Census reports the unemployment rate as 9.4%, and to
further lower this percentage, we need more job opportunities. At a large scale, it should be
done by Entrepreneurs. Entrepreneurs provide a supernatural stroke to an organization,
whether in public or private or joint sector, in achieving innovativeness, speediness,
flexibility and a strong wisdom of self-determination. They bring a new vision to the forefront
of economic growth. In that regard, an Entrepreneur can bring certain changes to the society
and to our country. This paper focuses on the entrepreneurs role in economic development
in India.

Keywords: ENTREPRENEURS, DEVELOPMENT, ECONOMIC DEVELOPMENT,

WEALTH, EMPLOYMENT, GROWTH RATE

INTRODUCTION
The word entrepreneur is derived from the French word entreprendre, which means to
undertake. This refers to those who undertake the risk of new enterprises. An enterprise is
created by an entrepreneur. The process of creation is called entrepreneurship.

Definitions
According to A.H.Cole: Entrepreneurship is the purposeful activity of an individual or a
group of associated individual, undertaken to initiate, maintain or aggrandize profit by
production or distribution of economic goods and services.
According to J.A. Timmons: Entrepreneurship is the ability to create and build something
from practically nothing.
According to Musselman and Jackson: Entrepreneurship is the investing and risking of
time, money and effort to start a business and make it successful.
According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not
necessarily motivated by profit but regard it as a standard for measuring achievement or
success.

An entrepreneur can be industrialist as a person who has the initiative skill and motivation to
set up a business or enterprise of his own and who always look for high achievements.
Entrepreneur is the catalyst for social change and works for the general good. They looks for
opportunities, identifies them and seizes them mainly for economic gains. An action oriented
entrepreneur is a highly calculative individual who is always willing to to undertake risks in
order to achieve their goals.

Its evident that Entrepreneurs create initiatives, which in turn creates opportunities, which in
turn creates jobs. The latest Census reports the unemployment rate as 9.4%, and to further
lower this percentage, we need more job opportunities. At a large scale, it should be done by
Entrepreneurs. Its worth noting that both the reports prepared by Planning Commission to
generate employment opportunities for 10crore people over the next ten years have strongly
recommended self-employment as a way-out for teaming unemployed youth. One such
example can be pointed to Mr. N.R Narayana Murthy, whose company Infosys now employs
over 1,45,088 employees.

However, the most important role that Entrepreneurs can play in the countrys development is
by creating wealth for the country, which in turn can fund further start ups and budding
Entrepreneurs. Entrepreneurial companies offer the greatest opportunity for wealth creation,
simply because they have the potential of capturing the market, especially international.
Creating and sharing wealth can enable entrepreneurs to do what Indias government has
failed to do since Independence, such as transforming education and rural India, making
wealth an instrument for bringing the revolutions to build the new India.

Considering Indias increased poverty rate of 37.2%, Entrepreneurs should create

wealth overflow in the country for its development. The economy of India is an
underdeveloped mixed economy. It is the world's seventh-largest economy by nominal GDP
and the third-largest by purchasing power parity (PPP). The country ranks 141st in per capita
GDP (nominal) with $1723 and 123rd in per capita GDP (PPP) with $6,616 as of 2016. After
1991 economic liberalisation, India achieved 6-7% average GDP growth annually. In FY
2015 India's economy became the world's fastest growing major economy surpassing China
India has one of the fastest growing service sectors in the world with an annual growth rate
above 9% since 2001, which contributed to 57% of GDP in 201213. India has become a
major exporter of IT services, Business Process Outsourcing (BPO) services, and software
services with $154 billion revenue in FY 2017. India ranks second worldwide in farm output.
Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the
GDP and employed 49% of its total workforce in 2014. Textile industry contributes about 4
per cent to the country's GDP, 14 per cent of the industrial production, and 17 per cent to
export earnings. The services sector has the largest share of India's GDP, accounting for 57%
in 2012, up from 15% in 1950. It is the seventh-largest services sector by nominal GDP, and
third largest when purchasing power is taken into account. The services sector provides
employment to 27% of the work force.

The Indian pharmaceutical industry has grown in recent years to become a major
manufacturer of health care products to the world. India produced about 8% of the global
pharmaceutical supply in 2011 by value, including over 60,000 generic brands of medicines.
The industry grew from $6 billion in 2005 to $36.7 billion in 2016, a compound annual
growth rate (CAGR) of 17.46%.

Industry accounts for 26% of GDP and employs 22% of the total workforce.
According to the World Bank, India's industrial manufacturing GDP output in 2015 was 6th
largest in the world on current US dollar basis ($559 billion),and 9th largest on inflation-
adjusted constant 2005 US dollar basis ($197.1 billion).

Objectives of the Study

To know the importance of entrepreneurship in India.
To study the impact of entrepreneurship in economic development.

Review of literature
Characteristics of Entrepreneurship
Some of the key characteristics of the entrepreneurs
Economic and self-motivated activity: Entrepreneurship is an economic activity because it
involves the creation and operation of an enterprise with a view to creating value or
wealth by ensuring optimum utilization of scarce resources. Since this value creation
activity is performed continuously in the midst of uncertain business environment,
therefore, entrepreneurship is regarded as a dynamic force.

Risk bearing: The essence of entrepreneurship is the willingness to assume risk arising out
of the creation and implementation of new ideas. New ideas are always tentative and
their results may not be instantaneous and positive. An entrepreneur has to have
patience to see his efforts bear fruit. In the intervening period (time gap between the
conception and implementation of an idea and its results), an entrepreneur has to
assume risk. If an entrepreneur does not have the willingness to assume risk,
entrepreneurship would never succeed.

Profit potential: Profit potential is the likely level of return or compensation to the
entrepreneur for taking on the risk of developing an idea into an actual business
venture. Without profit potential, the efforts of entrepreneurs would remain only an
abstract and a theoretical leisure activity.

Value Creation: The process of creating value is a characteristic in describing

entrepreneurship. Through entrepreneurship, services, new products, transactions, resources,
technologies, and markets are created that contribute some value to a community or
marketplace. Drucker says, Until entrepreneurial act, every plant is a seed and every mineral
just another rock.

Related to innovation: Entrepreneurship involves a continuous search for new ideas.

Entrepreneurship compels an individual to continuously evaluate the existing modes
of business operations so that more efficient and effective systems can be evolved
and adopted.

Skilful management: Entrepreneurship involves skilful management. The basic managerial

skill is the most important characteristic feature of entrepreneurship. The effective
management of an enterprise, the role of an entrepreneur is to initiate and supervise design of
organization improvement projects in relation to upcoming opportunities is very much
important.

Accepting challenges: Entrepreneurship means accepting challenges amidst risk and

uncertainty. While accepting entrepreneurship as a career the entrepreneur accepts the
challenges of all odds and puts his efforts to convert the odds into viable business
opportunities by pooling together the resources of building and running the enterprise.

Goal-oriented Activity: The entrepreneur who creates and operates enterprises seeks to earn
profits through satisfaction of needs of consumers; hence, entrepreneurship is a goal-oriented
activity. Entrepreneurship emphasizes results, achievements and targets achieved. It is work
done not imaginary plans or paper decisions. Hence entrepreneurship is a goal-oriented
activity.

Dynamic Process: Entrepreneurship is a dynamic function. Entrepreneur thrives on changes

in the environment, which bring useful opportunities for business. An entrepreneur deals
proactively with changing markets and environment. He looks at the changes as the source of
market advantages, not as a problem. Uncertainties are market opportunities for him. He
capitalizes on fleeting market anomalies.

Individuality: Other characteristic found in entrepreneurship is that of uniqueness.

Entrepreneurship involves new combinations and new approaches with which entrepreneurs
are willing to experiment. Through Entrepreneurship unique products are created and unique
approaches are tried. Its doing something new, something untested and untried something
unique.

Interest and Vision: The first factor for entrepreneurial success is interest. Since
entrepreneurship pays off according to performance rather than time spent on a particular
effort, an entrepreneur must work in an area that interests them. The day-to-day activities of
a business are interesting to an entrepreneur, this is not enough for success unless she can turn
this interest into a vision of growth and expansion. This vision must be strong enough that
she can communicate it to investors and employees.

Risk and Rewards: Entrepreneurship requires risk. The measurement of this risk equates to
the amount of time and money you invest into your business. However, this risk also tends to
relate directly to the rewards involved.

ENTREPRENEURS HELP GROW INDIAN ECONOMY

An entrepreneur is business a leader look for ideas and puts them into effect in
encouragement economic growth and development. They play the most important role in the
economic growth and development of Indian economy. An entrepreneur plays a pivotal
role not only in the development of industrial sector of a country but also in the development
of farm and service sector. The major roles played by an entrepreneur in the economic
development of an economy are as follows.

Create large scale Employment: Entrepreneurs provide direct large-scale

employment to the unemployed which is an unending problem of India. Small
entrepreneurs provide self employment to technically qualified persons and
professionals. Entrepreneurs clear the path towards economic development of our
country.
Capital Formation: Entrepreneurs promote capital formation by mobilizing the idle
savings of our citizens. They employ resources for setting up their enterprises. Such
types of entrepreneurial activities lead to value addition and creation of wealth, which
is very essential for the industrial and economic development of India.
Balanced Regional Development: Entrepreneurs help to eliminate regional
disparities by industrializing rural and backward areas. The growth of industries and
business in these areas lead to a large number of public benefits like road transport,
health, education, entertainment, etc. They help to reduce the problems of
overcrowding, slums and populationin cities by providing employment and incomes
to them.
Standard of Living Improve: Entrepreneurs take up latest innovations in the
production of wide variety of goods and services in large scale that too at a lower cost.
It enables the people to benefit better quality goods at lower prices which results in
the improvement of their standard of living.
Wealth Creation and Distribution: An entrepreneur stimulates impartial
redistribution of wealth and income in the interest of the country to more people and
geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial
activities also ensure equitable distribution of income and wealthy by inculcating the
spirit of entrepreneurship amongst people thereby providing them self employment
with limited resources.
Increasing GDP and Per Capita Income: They encourage effective resource
mobilisation of capital and skill, bring in new products and services and develops
markets for growth of the economy. In this way, they help increasing gross national
product as well as per capita income of the people in our nation.
Facilitates Overall Development: Once an enterprise is established, the process of
industrialisation is set in action. The unit will generate demand for various types of
units required by it and there will be so many other units which require the output of
 this unit. This leads to overall development of an area due to increase in demand and
setting up of more and more units.
Concentration of Economic Power Reduces: Industrial development normally leads
to concentration of economic power in the hands of a few individuals which results in
the growth of monopolies. Entrepreneurs contribute towards the development of
society by reducing attentiveness of income and wealth.
Induces Backward and Forward Linkages: Entrepreneurs work in an environment
of changing technology and try to maximise profits by modernization. Entrepreneurs
induces backward and forward linkages which encourage the process of economic
development in the country.
Increase Country's Export Trade: Entrepreneurs earn valuable foreign
exchange through increased exports. They produce goods and services in large scale
for the purpose earning huge amount of foreign exchange from export.
DISCUSSION
The latest Census reports the unemployment rate as 9.4%, and to further lower this
percentage, we need more job opportunities. At a large scale, it should be done by
Entrepreneurs. Its worth noting that both the reports prepared by Planning Commission to
generate employment opportunities for 10crore people over the next ten years have strongly
recommended self-employment as a way-out for teaming unemployed youth

Several state governments provides welfare schemes to the peoples, for that
government want the financial support from the central government, but some of the states
like Gujarat, Tamil Nadu need not depend central government. Because of they can get more
income from the industrialist (entrepreneurs).

At the same time Mr. Narendra Modi became Prime Minister of India, the main
reason is model of Gujarat development but the main reason is Gujarat state is
entrepreneurship state, the development is credited to Modi pocket. Like Tamil Nadu
provides a more welfare schemes to public, for the reason well developed industry in Chennai
and Coimbatore. So that industrial (entrepreneurs) developed states provides employment,
infrastructure facilities and standard of living.

A little of the business family like TATA group, Birla, RPG Group and Infosys
Narayana moorthy create a huge employment and production of the country development.

Some of the drawbacks of the same time India has the second highest number of
shadow entrepreneurs in the world. Shadow entrepreneurs are individuals who manage a
business that sells legitimate goods and services but they do not register their businesses. For
every business that is legally registered in India, there are 127 shadow businesses that are not.
This means that they do not pay tax, operating in a shadow economy where business
activities are performed outside the reach of government authorities.

Informal entrepreneurs trade legal products and services, yet do not apply for business
registration or file any incorporation documents with government authorities. The
phenomenon of informal entrepreneurship is seen as a potential driver of job growth and
economic development, especially in developing countries.

Some of the entrepreneurs is identified to have adverse impact on the economic

development of India, like Satyam Ramallinga Raju, Vijay Malya and Gali Janardana Reddy.

CONCLUSION

Entrepreneurship plays an important role for economic development in developing

countries like India. It is evident from the study that entrepreneurs are ready to face the
challenges associated with setting up of business. Therefore, the entrepreneurs need to be
motivated to take up entrepreneurship as a career, with training and sustaining support
systems providing all necessary assistance. Entrepreneurs are creating jobs, generating
wealth and nurturing innovation are some of the very crucial job roles that entrepreneurs
should play, all aimed towards sustained development of our country.

References
1. Bednarzick, Robert W. The Role of Entrepreneurship in U.S. and European Job
Growth. Monthly Labor Review, Vol. 123, No.7, 2000, 3-16.
2. Cantillon. R. 1971. Entrepreneurship and econpmica development. The free press.
New Yark.
3. Audretsch, David and Keilbach, Max. Entrepreneurship and Regional Growth: An
Evolutionary Interpretation. Journal of Evolutionary Economics, Vol. 14, No.5,
2004, 605616.
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5. S. Kanoi, Role of Government in Developing Entrepreneurship in Assam, Ph. D

dissertation, Assam University, 2011.

6. Amrita Dhaliwal Role of Entrepreneurship in Economic Development

International Journal of scientific research and management (IJSRM), Volume.4,
4262-4269, 2016

7. Alvareza, S.A. and Busenitz Lowell W. (2001) 'The entrepreneurship of resource-

based theory' Journal of Management 27: 755775.

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ETF-AF-2006-08.

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RP2008/20. World Institute for Development Economic Research (UNU-WIDER).

ROLE OF GOVERNMENT IN ENTREPRENEURSHIP DEVELOPMENT

B.V. Brahmaji Harika

Assistant Professor Student Coordinator-Mba
Department of Mba
V.S. Lakshmi Engineering College for Women, Matlapalem
Abstract:
In recent decades, economic growth in countries around the world has become
increasingly dependent on the dynamism of small and medium sized enterprises (SMEs).
This is especially important in the transition economies.

We have focused on (i) attitudes of entrepreneurs in the private sector towards the role
of government in SME development through provision of assistance to SMEs in (ii) the
business environment in which firms operate, and (iii) attitudes of the employed in
government sector towards the role of government in SME development through the
provision of assistance to SMEs.

Without the government support they cant do anything. Government will always
support the Eco-Friendly Industries.

Pattern of entrepreneurial activities in India has undergone a sea change in the later
half of the 20th century, more towards the end of it. From being a government dominated
sector in the immediate post-independence scenario to a one with reasonable space for
operation of private entrepreneurs, this transition has not been a smooth one at all. In fact, at
every step, the country has learnt by experience. We attempt to briefly and sequentially
enumerate the policies followed by the government of India with respect to entrepreneurial
activities since its birth as an independent democracy, and their economic implications. We
attempt to bring out two main issues in this context, one being the public sector - private
sector debate, and the other being the foreign entrepreneur - domestic entrepreneur tussle. We
use some elementary microeconomics in trying to show the problems posed by these issues,
and methods in which the government may intervene to improve situations.

Introduction
Pattern of entrepreneurial activities in India has undergone a sea change in the later
half of the 20th century, more towards the end of it. From being a government dominated
sector in the immediate post-independence scenario to a one with reasonable space for
operation of private entrepreneurs, this transition has not been a smooth one at all. In fact, at
every step, the country has learnt by experience. What we attempt to do in this paper is to
bring out two main issues in this context, one being the public sector - private sector debate,
and the other being the foreign entrepreneur domestic entrepreneur tussle. We use some
elementary microeconomics in trying to show the problems posed by these issues, and
methods in which the government may intervene to improve situations. We also attempt to
briefly and sequentially enumerate the policies followed by the government of India with
respect to entrepreneurial activities since its birth as an independent democracy, and their
economic implications. Section 2 briefly discusses the scenario of the entrepreneurial sector
as it was before The New Industrial Policy of 1991,

Section 3 briefly discusses the New Industrial Policy of 1991, section 4 tries to
analytically provide a solution to the public sector-private sector debate, section 5 addresses
the foreign Vs domestic entrepreneur issue and section 6 concludes the discussion.

Entrepreneurship
The capacity and willingness to develop organize and manage a business venture
along with any of its risks in order to make a profit. The most obvious example of
entrepreneurship is the starting of new businesses.
(The activity of setting up a business or businesses, taking on financial risks in the
hope of profit.)
Entrepreneurship Development
The Entrepreneurship development involves equipping a person with the required
skills and knowledge needed for starting and running the enterprise.
Role of Government in Entrepreneurship Development
To Encourage the Entrepreneurs financially the government of India establishes
Financial Institutions Such as Industrial Development Bank of India (IDBI) and the Small
Industries Development Bank of India (SIDBI).

Government plays a very important role in developing entrepreneurship. Government

develops industries in rural and backward areas by giving various facilities with the objective
of balances regional development. The government set programmes to help entrepreneurs in
the field of technique, finance, market and entrepreneurial development so that they help to
accelerate and adopt the changes in industrial development. Various institutions were set up
by the central and state governments in order to fulfill this objective.

1. Small industries development organization (SIDO)

SIDO was established in October 1973 now under Ministry of Trade, Industry and
Marketing. SIDO is an apex body at Central level for formulating policy for the development
of Small Scale Industries in the country.

2. Management development Institute (MDI)

MDI is located at Gurgaon (Haryana).It was established in 1973 and is sponsored by

Industrial Finance Corporation Of India, with objectives of improving managerial
effectiveness in the industry.

3. Entrepreneurship development institute of India (EDI)

Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-

profit institute, set up in 1983, is sponsored by apex financial institutions the IDBI Bank
Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI has helped set up
twelve state-level exclusive entrepreneurship development centres and institutes.

4. All India Small Scale Industries Board (AISSIB)

The Small Scale Industries Board (SSI Board) is the apex advisory body constituted
to render advise to the Government on all issues pertaining to the small scale sector.

5. National Institution of Entrepreneurship and Small Business Development

(NIESBUD), New Delhi
 It was established in 1983 by the Government of India. It is an apex body to supervise
the activities of various agencies in the entrepreneurial development programmes.

6. National Institute of Small Industries Extension Training

It was established in 1960 with its headquarters at Hyderabad. The main objectives of
national Institute of Small Industries Extension Training is:

i) Directing and coordinating Persons for training of small entrepreneurs.

7. National Small Industries Corporation Ltd. (NSIC)

The NSIC was established in 1995 by the Central Government with the objective of
assisting the small industries in the Government purchase programmes. The corporation
provides a vast-market for the products of small industries through its marketing network.

8. Risk Capital and Technology Finance Corporation Ltd .(RCTFC)

RCTFC was established in 1988 with an authorized capital of 15 crores rupees.The

main objectives of RCTFC are provision of risk capital for the extension and expansion of
entrepreneurial development and venture capital for the projects with high techniques for
technology development and transfer.

9. National Research and development corporation (NRDC)

NRDC was established in 1953 under Department of Science and Industrial Research
under Government of India. Its main objectives are:

i) Providing assistance in technology transfer

ii) Transfer of technology
iii) Establishing relations with various technology institutions and collecting various
indigenous techniques developed by them.

10. Indian Investment Centre

This is an autonomous organization established by Central Government. Its main

objective is to assist in promoting foreign cooperation with Indian entrepreneurs and
providing necessary information to foreign entrepreneurs.

B) Institutions set up at State Level

 There are a number of institutions establishes at state level for organizing, developing,
developing, assisting and making successful entrepreneurial development programmes.
Prominent among these are:

i) Small Industries Service Institute (SISI)

ii) State Financial Corporation (SFC)

iii) State Small Industries Corporation (SSIC)

iv) District Industries Centers (DIC)

v) Technical Consulting Organization Ltd. (TCO)

vi) Industrial Directorates

vii) Commercial and Cooperative Banks

viii) State Industrial Development Corporation

ix) Industrial Estates

x) State Industries Corporation

Industrial Policy Resolution, 1956

The government s faith in the public sector was strongly expressed in the year 1956,
when the Industrial Policy Resolution, 1956, was adopted. Salient features of this policy
were:

Rapid expansion of the public sector to cover almost all industries, barring a few.
In the ones remaining, the government was to play the role of pioneer entrepreneur,
followed by individual private sector initiatives.
The government would have extensive control and regulation over the activities of the
private sector units.
To exercise this control, the famous industrial Licensing System was adopted.
To deter direct foreign initiatives, laws like Foreign Exchange Regulation Act (FERA)
were introduced.
To encourage import substitution, high tariff rates were put into place.
To encourage development of Small Scale Industries (SSI) sector, by providing them
huge concessions and subsidies.
Industrial licensing system
Before making an investment, an entrepreneur had to obtain first approval in principle
from the Ministry of Industries. After having been granted this approval, he had to carry the
issued Letter of Intent (LoI). Armed with this LoI, he had to make other arrangements for his
project. If he needed to import a capital good, he had to obtain a Capital Good Import License
from the Chief Controller of Exports and Imports in the Ministry of Commerce, the formal
approval for which, however, was given by the Ministry of Industries. If he had to go to the
capital market, he needed a separate approval from the Controller of Capital Issues in the
Ministry of Finance and so on and so forth!!!.

Monopolies and Restrictive Trade Practices Act (MRTP)

This Act, passed in the year 1969, was another tool through which the government
could exercise its control over the industries. This Act aimed at preventing restrictive trade
practices on one side and concentration of economic power on the other. Under this Act,
undertakings whose assets are greater than or equal to Rs. 20 crores had to register
themselves with the MRTP Commission. They have to take permission from the government
for substantial expansion, establishment of new undertakings, mergers and Acquisition. The
MRTP Commission was given authority to investigate and control all restrictive trade
practices.
The New Industrial Policy, 1991
According to Bhagwati (1992), there were three main factors behind the failure to
bring about entrepreneurship development in India:

1. Extensive bureaucratic controls over production, investment and trade,

2. Inward looking policies for trade and foreign investment, and
3. A huge public sector. Mainly keeping these issues in mind, the 1991 Industrial Policy
adopted the following sub-policies:
o Abolition of the Industrial Licensing system, except for investment in a few
industries for location or environmental reasons.
o Relaxation of the restrictions on large industrial houses brought about by the
MRTP Act.
o Easing of entry requirements for foreign direct investment, keeping the
playing field level for the domestic producers.
o Allowing private investment in a number of industries previously reserved for
the public sector, thereby reducing its size.
o A new policy called for Exit Policy was constituted, which required the loss
making firms to be reorganized or to shutdown. A national renewal fund
 (NRF) for assisting workers currently employed in enterprises that would have
to be trimmed or closed down altogether was formed so as to facilitate this
policy, but this has not been implemented very strongly owing to severe
political pressure of the consequences of massive job losses.

SUPPORTIVE ROLE:

1. Supportive Polices. (Less Rules and Regulations)

2. Government Funding to Eco-Friendly Industries.
3. Based on the industries (Small, Medium, and Large) the taxes should be imposed.
4. Developing Credit System (Installment payments of Taxes etc.,)
5. Providing Infrastructure facilities.
6. Support to the Young Entrepreneurs.
7. Established IDBI Bank (Industrial Development Bank of India) to support the Industries
form sickness.
8. Giving a chance to take the help of FDI.
9. Support to the Innovational Ideas.
10. Encouraging small scale Industries by support financially.

Conclusion

We have discussed in brief the policies followed by the Indian Government with
respect to entrepreneurship since independence, and have observed that changes were very
slow in coming. It took two and a half decades to understand what was good for the economy
at what time. We have also seen that it cannot be said whether more government intervention
or less government intervention is good for the society or not; it depends crucially on the
goals that have been set to achieve. Also, in a situation when a country like India, being a
member of the WTO, cannot erect entry barriers to foreign investments from other member
countries, we have seen that it can strengthen the domestic firms through various policies of
indirect assistance.

ROLE OF GOVT. IN ENTREPRENEURSHIP DEVELOPMENT

*Mr. D. Bhaskara Rao, **Dr.J.Revathy ,
Research Scholar, Principal& Associate professor
Dept. of Commerce & Business Administration, PG Department of Commerce &
Acharya Nagarjuna University, Management
Nagarjuna Nagar, India. Studies VRS & YRN College,
Email: bhashi414@gmail.com Chirala, Andhra Pradesh, India
Email: revathy_jagarlamudi@yahoo.com
ABSTRACTS
Entrepreneurship
 Entrepreneurship is a complex term that's often defined simply as running your own
business. But there's a difference between a "business owner" and an "entrepreneur," and
although one can be both, what distinguishes entrepreneurship is a person's attitude.

"Entrepreneurship is much broader than the creation of a new business venture," said
Bruce Bachenheimer, a clinical professor of management and executive director of the
Entrepreneurship Lab at Pace University. "At its core, it is a mindset a way of thinking and
acting. It is about imagining new ways to solve problems and create value."

Definition of entrepreneurship:
Entrepreneurship is both the study of how new businesses are created as well as the
actual process of starting a new business. The basic entrepreneurship definition is the act of
creating a business or businesses while building and scaling it to generate a profit.

Government schools in India are the largest providers of education. However, data
indicates that parents are increasingly opting out of the government system due to its poor
quality and enrolling their children in private schools. Therefore, the government must take
steps to improve the quality of education in schools. Public-Private Partnership (PPP) is a
mechanism that can introduce innovation and create models of quality within the government
system.

Global evidence suggests that whole school adoption PPPs are particularly effective at
demonstrating innovation. In this model, the government authorises and reimburses a private
operator to manage school operations, with varying degrees of autonomy to innovate.

Whole school PPPs give flexibility to the operator to innovate, increase competition,
give choice to low-Income families and hold operators accountable for the quality of
outcomes.

Public-Private Partnerships can introduce innovation and investment into Indias

government school system, which urgently needs to improve the quality of education.
Lessons from existing models in India and international efforts at collaboration between the
private and public sector show that PPPs have an important role in improving the system.

Opportunity for PPP in School Education

Well-designed PPPs can create models of innovation for the school system in India.
Increasing access to school:
 India has a high dropout rate from primary to secondary school, with the national
Gross Enrolment Ratio (GER) falling from 118 in primary school1 to 34in senior secondary
school.

Using underutilized school infrastructure:

Across India, major metropolitan areas such as Mumbai, Chennai, Pune and
Ahmedabad have experienced up to 25% decline in enrolment in government schools over
the past 10 years and simultaneously their education budgets have almost doubled.

Improving the quality of education:

The government school system urgently needs improvement.

Understanding the School Management and School Adoption PPP Models Beginning
with government aided schools, the state in India has experimented with various forms of
PPPs to improve access and quality in education.

Recommendations for PPP Implementation

India can draw valuable insights from countries that have used PPPs as a policy
response to address quality and access issues in school education.

These include:
Private operators should have autonomy to introduce innovation
Government should reimburse private operators the full amount of per child costs in a
timely manner to ensure financial viability
Full transparency in selection process of operators
High accountability standards with well-defined evaluation and assessment methods.

2. Understand the process of identifying the beneficiaries and interact with them
Beneficiary Assessment (BA) is a qualitative research tool used to improve the impact
of development operations by gaining the views of intended beneficiaries regarding a planned
or ongoing intervention. The objective of BA is to assess the value of an activity as perceived
by project beneficiaries and to integrate findings into project activities. It is designed
specifically to undertake systematic listening of the poor and other stakeholders by giving
voice to their priorities and concerns. This method of systematic consultation is used by
project management as a design, monitoring, and evaluation tool.

The BA approach is not intended to supplant quantitative surveys and other traditional
methods for data gathering. It seeks to complement these methods by providing reliable,
qualitative, in-depth information on the socio cultural conditions and perceptions of the
projects target group.
 This information is intended to be immediate use to managers and policymakers
responsible for improving peoples lives. BA facilitates the development of initiatives that are
demand-driven and enhances their sustainability.

The approach is useful in:

Identifying and designing development activities;
Signaling constraints to participation faced by the target group;
Obtaining feedback on reactions of the target group to the interventions implemented;
Un covering new information that would otherwise not come to light
Techniques
The approach relies primarily on three data collection techniques:
1. Conversational Interviews
2. Focus group discussions
3. Direct Observation and Participant Observation
Conversational Interviews:
These interviews, which are in-depth in nature, are the foundation of the beneficiary
assessment approach. In well-guided, naturalistic interviewing, people reveal their feelings,
thoughts, and beliefs about a particular issue.

Key characteristics of conversational interviewing: -

1. Establishing a good rapport between interviewer and respondent based on mutual trust
and respect
2. Interviews that generally do not exceed 45 minutes may require more than one visit to
complete all interviews.

Focus Group Discussions

This technique is used to interview target communities in groups. Such interviews are
useful in interviewing persons from the same neighborhoods, or those involved in making the
same livelihoods. Usage of focus groups facilitates data collection of a larger sample group at
one time, although precise attribution of findings and individuals is inherently difficult.

Direct Observation and Participant Observation

Direct Observation is the simplest of techniques. It involves counting, noting
behavior traits and patterns, and other notable facets of a particular developmental situation.
The potential for quantifying observed phenomena is major and immediate.

Critically analyze the financial commitments made under this project

 Organizations perform work continuously. These works include operations or projects
though some works may overlap with each other. For the organizations, projects are
important elements of change. They are considered to be the leading edge of change in
organizations. A project consists of a combination of organizational resources pulled together
to create something that did not previously exist and that will provide a performance
capability in the design and execution of organizational strategies. Projects are
conceptualized, designed, engineered and produced (or constructed); something is created
that did not previously exist. An organizational strategy has been executed to facilitate the
support of ongoing organizational life. Projects therefore support the ongoing activities of a
going concern.

For example,
An R&D project bridges the gap from an existing technology to a future technology.
A new factory adds to the manufacturing capability.
A new building contributes to the infrastructure of the city.
A new highway improves transportation systems.
A canal provides a waterway over land.
A pipeline moves oil, gas, or water.
A new house improves the living standards of a family.
Classification of Projects, Sub-Projects
A detailed study of different types of projects with reference to sequence of stages or
processes used in each case would provide us an idea to use project management in a most
effective manner. The success of a project-based organization lies in managing a portfolio of
projects. In this regard the study of criteria for selection of projects is needed.

Types of Projects
One of the methods to classify projects is:
1. Open project or Walking in the fog
2. Semi-open project or 'Making movies'
3. Closed project or 'Painting by numbers'
4. Semi-closed project or 'Going on a quest'

Open Project or "walking in the fog:

Strict control over costs and on time-scale is important. Projects may not achieve
anything as in semi-closed project. Neither is it known what to do nor how to do it. But the
project can be altered and act differently. Usually these are reactions to change in certain
circumstances like political, competitive). A lot of quest and speed is required in projects. Not
all the projects are closed projects with definite mission. However as the projects passes
through phases of a life cycle they usually change from 'Fog' to 'Paint by Numbers'.

2. Semi-open Project or "making movies"

In this type, commitment to use of method adopted becomes essential. It can be
known how to do something but what is to be to achieve is unknown. The organization might
have expertise and capability but are looking for ways to apply it. It is like we have actors but
no script but interested to make movie.

Closed Project or "Painting by Numbers"

Traditional projects are suitable example for this type of project. They have clear
goals and a well defined set of activities to be carried out. You can know what you want to
achieve and how you will achieve it. It is so clear-cut that you can paint the numbers on it.

Semi - closed Project or "Going on a quest"

In this type, strict control over the costs and time-scale at the same time allowing
freedom to explore is the main feature. The organization knows what they want to achieve
but how to achieve it is unknown. Hence they send employees on a quest to explore 'out of
the box possibilities. These types of project will lead to overspending, getting delayed, or
getting nothing from the project. Another method to classify the projects is:

1. Simple projects

2. Rapid projects

3. Just-do-it projects or 'Loose Cannons'.

1. "Simple" Projects
A usual project may start off as 'painting by numbers', a fog, a quest, or a movie. The
investigative stage are worked out until the organization is confident (say, around 90-95
percent) where at this stage the required benefits can be achieved.

2. "Rapid" Projects
In this case a project is defined with a fixed budget and time-scale but scope is varied
to suit a predetermined minimum scope. Usually a prototype or actual operational platform is
used in this project to cut down resource requirements and time-scale. Hence some of the
stages and processes are merged. But it should be noted that just to save time and cost,
phases, and processes of project couldn't be dispensed
3."Just do it" Projects - Loose Cannons
These are undertaken to achieve results irrespective of time and cost. Sometimes these
may be a Management's "pet project" with little relevance to strategy. Of course, these start
often with optimistic projections and end up bouncing around the organization demanding
more and more resources.

Objectives of the study:

1. To study the initiatives proposed in the CSR-PPP model and the methods of
implementation.
2. Understand the process of identifying the beneficiaries and interact with t
3. Critically analyze the financial commitments made under this project.

Conclusions
The main role which should be played by the government is to do things which is not
presently done by any another bodies. Develop the country with efficient private
participation. Finally protect investors and take up efficient taxation policy. Keep track of
changes of the environment. It may be stated that the role of government in future must be
redefined but not en deed. The redefinition must be in the direction of improving quality of
intervention.

Reference
1. Tyson, Laura d'Andrea & Petrin, Tea & Rogers, F Halsey, 1994. "Promoting
Entrepreneurship in Eastern Europe," Small Business Economics, Springer, vol. 6(3),
pages 165-184, June.
2. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and
destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
o Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive,
and Destructive," Journal of Political Economy, University of Chicago Press, vol.
98(5), pages 893-921, October.
3. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction,
Framework and Research Agenda," Scales Research Reports H200823, EIM
Business and Policy Research.
Role of Entrepreneurship in Economic Development
*Mr. B. H. Venkata Siva Krishna,
Research Scholar at Acharya Nagarjuna University
E Mail Id: hem.b99@gmail.com , Mobile No: - 07799545477, 09493720569.
** Dr. V. Srinivasa Prasad
Director
V.R.S. & Y.R.N. P.G. & U.G. College, Chirala, (A.P.)
E Mail Id: - vspsivaprasad@yahoo.co.in , Mobile No: - 09866306818.
Abstract
 The study tells that the entrepreneur acts as a trigger head to give spark to economic
activities by his entrepreneurial decisions. He plays a pivotal role not only in the development
of industrial sector of a country but also in the development of farm and service sector.
Entrepreneurs are like gamblers, and like any gambler, their chances of winning increase if
they have the right cards. The role of entrepreneurship in economic development varies from
economy to economy depending upon its material resources, industrial climate and the
responsiveness of the political system to the entrepreneurial function.Path breaking offerings
by entrepreneurs, in the form of new goods & services, result in new employment, which can
produce a cascading effect or virtuous circle in the economy.If we understand the benefits
and drawbacks, a balanced approach to nurturing entrepreneurship will definitely result in a
positive impact on economy and society.

Keywords:-Entrepreneur, Economic development, balanced regional development

Introduction
An entrepreneur can be regarded as a person who has the initiative, skill and
motivation to set up a business or enterprise of his own and who always look for high
achievements. He is the catalyst for social change and works for thecommon good. They look
for opportunities, identifies them and seizes them mainly for economic gains. An action
oriented entrepreneur is a highly calculative individual who is always willing to undertake
risks in order to achieve their goals. An entrepreneur supplies risk capital as a risk taker, and
monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a
partner, or the one who owns the majority of shares in an incorporated venture.

The entrepreneur who is a business leader looks for ideas and puts them into effect in
fostering economic growth and development. Entrepreneurship is one of the most important
input in the economic development of a country. The entrepreneur acts as a trigger head to
give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not
only in the development of industrial sector of a country but also in the development of farm
and service sector.

According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not

necessarily motivated by profit but regard it as a standard for measuring achievement or
success.

Characteristics & Skills

Entrepreneurs are like gamblers, and like any gambler, their chances of winning
increase if they have the right cards. Let's look at some characteristics and skills that help an
entrepreneur succeed.

1. A tolerance for risk-taking is a necessary attribute for entrepreneurs. You can think of
risk-taking as pursuing an activity even if there is a chance of a negative consequence.
Starting a business is risky, and even more so when you're using your own money.
Sometimes you can spread the risk by convincing investors to come along on your
new venture or by forming an entrepreneurial team.But at the end of the day, you can't
avoid risk if you are going to start a new business and innovate.
2. Entrepreneurs also need creativity. Think about Steve Jobs and Mark Zuckerberg;
these two entrepreneurs brought innovative products to the market that changed the
way we live. Successful entrepreneurs innovate in one of two ways. They can bring an
entirely new product or service to the market, like the first cellular phone. On the
other hand, they can radically improve upon something in a dramatic way, just like the
iPhone changed the world of smart phones.
3. Initiative is also required. Entrepreneurs lead. If you are not willing to start without
being pushed, your new business will never get off the ground. For example, Eddie
had an idea fresh out of college and took the initiative to start his business venture. No
one had to convince him to act; he just acted.
4. Independence is also a paramount attribute for entrepreneurs. Nobody holds an
entrepreneur's hand, and they don't want any hand-holding. Successful entrepreneurs
must be willing to go it alone and succeed or fail on their own effort without relying
much on the other people.
Need for Entrepreneurship Development
Economic development essentially means a process of upward change whereby the
real pr capita income of a country increases over a period of time .Entrepreneurship has an
important role to play in the development of a country. It is one of the most important inputs
in economic development. The number and competence of entrepreneurs affect the economic
growth of the country. The economic history of the presently advanced countries like USA,
Russia and Japan supports the fact that economic development is the outcome for which
entrepreneurship is an inevitable cause. The crucial and significant role played by the
entrepreneurs in the economic development of advanced countries has made the people of
developing and under developed countries conscious of the importance of entrepreneurship
for economic development. It is now a widely accepted fact that active and enthusiastic
entrepreneurs can only explore the potentials of the countries availability of resources such as
labour, capital and technology.

Role of entrepreneurs in Economic Development

The role of entrepreneurs is not identical in the various economies. Depending on the
material resources, industry climate and responsiveness of the political system, it varies from
economy to economy. The contribution of entrepreneurs may be more in favorable
opportunity conditions than in economies with relatively less favorable opportunity
conditions.

Adam Smith, the foremost classical economist, assigned no significance to

entrepreneurial role in economic development in his monumental work. An Enquiryinto the
Nature and Causes of the Wealth of Nations, published in 1776. Smith extolled the rate of
capital formation as an important determinant of economic development.

The problem of economic development was ergo largely the ability of the people to
save more and invest more in any country. According to him, ability to save is governed by
improvement in productivity to the increase in the dexterity of every worker due to division
of labor. Smith regarded every person as the best judge of his own interest who should be left
to pursue his own advantage. According to him, each individual is led by an invisible hand
in pursuing his/her interest. He always advocated the policy of laissez-faire in economic
affairs.

In his theory of economic development, David Ricardo identified only three factors of
production, namely, machinery, capital and labour, among whom the entire produce is
distributed as rent, profit and wages respectively. Ricardo appreciated the virtues of profit in
capital accumulation. According to him, profit leads to saving of wealth which ultimately
goes to capital formation.

1. Thus, in both the classical theories of economic development, there is no room for
entrepreneurship. And, economic development seems to be automatic and self-
regulated. Thus, the attitude of classical economists was very cold towards the role of
entrepreneurship in economic development. They took the attitude: the firm is
shadowy entity and entrepreneur even shadowed or at least is shady when he is not
shadowy. The economic history of the presently developed countries, for example,
America, Russia and Japan tends to support the fact that the economy is an effect for
which entrepreneurship is the cause.
2. The crucial role played by the entrepreneurs in the development of the Western
 countries has made the people of underdeveloped countries too much conscious of the
significance of entrepreneurship for economic development. Now, people have begun
to realize that for achieving the goal of economic development, it is necessary to
increase entrepreneurship both qualitatively and quantitatively in the country. It is
only active and enthusiastic entrepreneurs who fully explore the potentialities of the
countrys available resources labour, technology and capital.
3. Schumpeter (1934) visualised the entrepreneur as the key figure in economic
development because of his role in introducing innovations. Parson and Smelser
(1956) described entrepreneurship as one of the two necessary conditions for
economic development, the other being the increased output of capital.
4. Harbison (1965) includes entrepreneurs among the prime movers of innovations, and
Sayigh (1962) simply describes entrepreneurship as a necessary dynamic force. It is
also opined that development does not occur spontaneously as a natural consequence
when economic conditions are in some sense right: a catalyst or agent is always
needed, and this requires an entrepreneurial ability. It is this ability that he perceives
opportunities which either others do no see or care about. Essentially, the entrepreneur
searches for
5. Change, sees need and then brings together the manpower, material and capital
required to respond the opportunity what he sees.
6. Akio Morita, the President of Sony who adopted the companys products to create
Walkman Personal Stereo and Indias Gulshan Kumar of T-Series who skimmed the
audio-cassette starved vast Indian market are the clearest examples of such able
entrepreneurs.
7. The role of entrepreneurship in economic development varies from economy to
economy depending upon its material resources, industrial climate and the
responsiveness of the political system to the entrepreneurial function. The
entrepreneurs contribute more in favourable opportunity conditions than in the
economies with relatively less favourable opportunity conditions. Viewed from the
opportunity conditions point of view, the underdeveloped regions, due to the paucity
of funds, lack of skilled labour and non-existence of minimum social and economic
overheads, are less conducive to the emergence particularly of innovative
entrepreneurs. In such regions, entrepreneurship does not emerge out of industrial
background with well developed institutions to support and encourage it. Therefore,
entrepreneurs in such regions may not be an
 8. Innovator but an imitator who would copy the innovations introduced by the
innovative entrepreneurs of the developed regions (Brozen 1954-55).
9. In these areas, according to McClellands (1961) concept of personality aspect of
entrepreneurship, some people with high achievement motivation come forward to
behave in an entrepreneurial way to change the stationary inertia, as they would not
be satisfied with the present status that they have in the society.
10. Under the conditions of paucity of funds and the problem of imperfect market in
underdeveloped regions, the entrepreneurs are bound to launchtheir enterprises on a
small-scale. As imitation requires lesser funds than innovation, it is realized that such
regions should have more imitative entrepreneurs. And, it is also felt that imitation of
innovations introduced in developed regions on a massive scale can bring about rapid
economic development in underdeveloped regions also. But, it does not mean that
such imitation requires in any way lesser ability on the part of entrepreneurs.
In this regard, Berna opines: It involves often what has aptly been called subjective
innovation, that is, the ability to do th ings which have not been done before by the particular
industrialists, even though unknown to him, the problem may have been solved in the same way
by the others.

These imitative entrepreneurs constitute the main spring of development of

underdeveloped region Further, India which itself is an underdeveloped country aims at
decentralized industrial structure to militate the regional imbalances in levels of economic
development, small-scale entrepreneurship in such industrial structure plays an important role
to achieve balanced regional development.

It is unequivocally believed that small-scale industries provide immediate large- scale

employment, ensure a more equitable distribution of national income and also facilitate an
effective resource mobilization of capital and skill which might otherwise remain unutilized.
The establishment of Entrepreneurship Development Institutes and alike by the Indian
Government during the last decades is a good testimony to her strong realisation about the
premium mobile role of entrepreneurship plays in economic development of the country.

The important role that entrepreneurship plays in the economic development of an

economy can now be put in a more systematic and orderly manner as follows:

Promotes Capital Formation:-Entrepreneurs promote capital formation by

mobilising the idle savings of public.They employ their own as well as borrowed
 resources for setting up their enterprises. Such type of entrepreneurial activities lead
to value addition and creation of wealth, which is very essential for the industrial and
economic development of the country.
Creates Large-Scale Employment Opportunities:-Entrepreneurs provideimmediate
large-scale employment to the unemployed which is a chronic problem of
underdeveloped nations. With the setting up. of more and more units by
entrepreneurs, both on small and large-scale numerous job opportunities are created
for others. As time passes, these enterprises grow, providing direct and indirect
employment opportunities to many more. In this way, entrepreneurs play an effective
role in reducing the problem of unemployment in the country which in turn clears the
path towards economic development of the nation. 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.
Promotes Balanced Regional Development:-Entrepreneurs help toremove regional
disparities through setting up of industries in less developed and backward areas. The
growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc. Setting up of more
industries lead to more development of backward regions and thereby promotes
balanced regional 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.
Reduces Concentration of Economic Power:-Economic power is the
naturaloutcome of industrial and business activity. Industrial development normally
lead to concentration of economic power in the hands of a few individuals which
results in the growth of monopolies. In order to redress this problem a large number of
entrepreneurs need to be developed, which will help reduce the concentration of
economic power amongst the population.
Wealth Creation and Distribution:-Itstimulates equitable redistribution of wealth
and income in the interest of the country to more people and geographic areas, thus
giving benefit to larger sections of the society. Entrepreneurial activities also generate
more activities and give a multiplier effect in the economy.
 Increasing Gross National Product and Per Capita Income:-Entrepreneurs are
always on the lookout for opportunities. They explore and exploit opportunities,,
encourage effective resource mobilization of capital and skill, bring in new products
and services and develops markets for growth of the economy. In this way, they help
increasing gross national product as well as per capita income of the people in a
country. Increase in gross national product and per capita income of the people in a
country, is a sign of economic growth. . An increasing number of entrepreneurers are
required to meet this increasing demand for goods and services. Thus
entrepreneurship increases the national income.
Improvement in the Standard of Living:-Increase in the standard of livingof the
people is a characteristic feature of economic development of the country.
Entrepreneurs play a key role in increasing the standard of living of the people by
adopting latest innovations in the production of wide variety of goods and services in
large scale that too at a lower cost. This enables the people to avail better quality
goods at lower prices which results in the improvement of their standard of living.
Promotes Country's Export Trade:-
Entrepreneurs help in promoting a country's export-trade, which is an important
ingredient of economic development. They produce goods and services in large scale
for the purpose earning huge amount of foreign exchange from export in order to
combat the import dues requirement. Hence import substitution and export promotion
ensure economic independence and development.
Induces Backward and Forward Linkages:-Entrepreneurs like to work inan
environment of change and try to maximize profits by innovation. When an enterprise
is established in accordance with the changing technology, it induces backward and
forward linkages which stimulate the process of economic development in the
country.
Facilitates Overall Development:-
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once
an enterprise is established, the process of industrialization is set in motion. This unit
will generate demand for various types of units required by it and there will be so
many other units which require the output of this unit. This leads to overall
development of an area due to increase in demand and setting up of more and more
units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus
creating an environment of enthusiasm and conveying an impetus for overall
development of the area.
Creating innovation:-An entrepreneur isa 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.
Entrepreneurs Create New Businesses:-
Path breaking offerings by entrepreneurs, in the form of new goods & services, result
in new employment, which can produce a cascading effect or virtuous circle in the
economy. The stimulation of related businesses or sectors that support the new
venture add to further economic development. For example, a few IT companies
founded the Indian IT industry in the 1990s as a backend programmers' hub. Soon the
industry gathered pace in its own programmers domain. But more importantly,
millions from other sectors benefited from it. Businesses in associated industries, like
call centre operations, network maintenance companies and hardware providers,
flourished. Education and training institutes nurtured a new class of IT workers
offering better, high-paying jobs. Infrastructure development organizations and even
real estate companies capitalized on this growth as workers migrated to employment
hubs seeking new improved lives.
Similarly, future development efforts in underdeveloped countries will require robust
logistics support, capital investment from buildings to paper clips and a qualified workforce.
From the highly qualified programmer to the construction worker, the entrepreneur enables
benefits across a broad spectrum of the economy.

Entrepreneurs Also Create Social Change:-Through their unique offeringsof new

goods and services, entrepreneurs break away from tradition and indirectly support
freedom by reducing dependence on obsolete systems and technologies. Overall, this
results in an improved quality of life, greater morale and economic freedom.
For example, the water supply in a water-scarce region will, at times, force people to
stop working to collect water. This will impact their business, productivity and
income. Imagine an innovative, automatic, low-cost, flow-based pump that can fill in
people's home water containers automatically. Such an installation will ensure people
are able to focus on their core jobs without worrying about a basic necessity like
carrying water. More time to devote to work means economic growth.
For a more contemporary example, smart phones and their smart apps have
revolutionized work and play across the globe. Smart phones are not exclusive to rich
countries or rich people either. As the growth of China's smart phone market and its
 smartphone industry show, technological entrepreneurship will have profound, long
lasting impacts on the entire human race. Moreover, the globalization of tech means
entrepreneurs in lesser-developed countries have access to the same tools as their
counterparts in richer countries. They also have the advantage of a lower cost of
living, so a young individual entrepreneur from an underdeveloped country can take
on the might of the multi-million dollar existing product from a developed country.
Personal Growth:-Entrepreneurship hascreated millions of good jobs. In a startup
workplace, jobs often call for creativity and collaboration, leading to personal
development. Those exposed to entrepreneurship have higher confidence and greater
independence. Not bound by the hierarchy and restrictions of large corporations,
young entrepreneurs can take on greater responsibility, work flexible schedules and
use creative solutions to problem solve. The freedom associated with entrepreneurship
comes with certain challenges. Entrepreneurs often work long hours and risk their
personal assets in developing their business.
Entrepreneurship puts new business ideas into practice.-In doing so, it createsjobs
that facilitate personal development. With their innovative and disruptive ideas,
entrepreneurs can tackle social problems too. Its a worthy pursuit to consider, but if
its not for you, see how to pass down its principles to the next generation and enroll
in How to Encourage and Teach Our Children Thus, it is clear that entrepreneurship
serves as a catalyst of economic development. On the whole, the role of
entrepreneurship in economic development of a country can best be put as an
economy is the effect for which entrepreneurship is the cause
Conclusion
Paradoxically, a significantly high number of entrepreneurs may lead to fierce
competition and loss of career choices for individuals. With too many entrepreneurs, levels of
aspirations usually rise. Owing to the variability of success in entrepreneurial ventures, the
scenario of having too many entrepreneurs may also lead to income inequalities, making
citizens more not less unhappy. However, the interesting interaction of entrepreneurship
and economic development has vital inputs and inferences for policy makers, development
institutes, business owners, change agents and charitable donors. If we understand the
benefits and drawbacks, a balanced approach to nurturing entrepreneurship will definitely
result in a positive impact on economy and society. Entrepreneurship puts new business ideas
into practice, in doing so, it creates jobs that facilitate personal development. With their
innovative and disruptive ideas, entrepreneurs can tackle social problems too. Its a worthy
pursuit to consider, but if its not for you, see how to pass down its principles to the next
generation and to Encourage and teach our children. Thus, it is clear that entrepreneurship
serves as a catalyst of economic development. On the whole, the role of entrepreneurship in
economic development of a country can best be put as an economy is the effect for which
entrepreneurship is the cause
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http://www.preservearticles.com/201101143326/role-of-an-entrepreneur-in-economic-
development.html
http://www.indiastudychannel.com/resources/93451-Role-entrepreneurship-economic-
development.aspx
http://study.com/academy/lesson/what-is-an-entrepreneur-definition-characteristics-
examples.html
http://www.yourarticlelibrary.com/essay/role-of-entrepreneurship-in-economic-
development/40658
http://unu.edu/publications/articles/are- entrepreneurial-societies-also-happier.html
https://blog.udemy.com/importance-of- entrepreneurship/
http://www.kauffman.org/what-we-do/resources/entrepreneurship-policy-
digest/entrepreneurships-role-in-economic- development Audretsch, David and
Keilbach, Max.
Entrepreneurship and Regional Growth: An Evolutionary Interpretation. Journal of
Evolutionary Economics, Vol. 14, No.5, 2004, 605 616.
o Audretsch, David and Lehmann, Erik. Does the Knowledge Spillover Theory of
Entrepreneurship
Hold for Regions? Research Policy, Vol. 34, No.8, 2005, 1191-1202.
Bednarzick, Robert W. The Role of Entrepreneurship in U.S. and European Job
Growth. Monthly Labor Review, Vol. 123, No.7, 2000, 3-16.
P. Sharma and J.J. Chrisman, 1999, Toward a Reconciliation of the Definitional Issues in
the Field of Corporate Entrepreneurship,
Entrepreneurship Theory and Practice . .Sternberg and S. Wennekers, 2005, The
Determinants and Effects of Using New Business Creation
Cooper, 2003 Entrepreneurship: The Past, the Present, the Future. In Handbook of
o Entrepreneurship Research, 21-36.
M. Casson, Entrepreneurship, Business Culture and the Theory of the Firm. In
Handbook of Entrepreneurship Research, G.L.S. Shackle, Foreword to R.F. Hebert
and A.N. Link, The entrepreneur: mainstream views and radical critiques
 THE ROLE OF GOVERNMENT IN PROMOTING ENTREPRENEURSHIP

Dr. A. Kanaka Durga Immaniyelu Yepuri

Assistant Professor, Research Scholar,
Dept. of Commerce & Business Administration
Acharya Nagarjuna University, Guntur - 522510.
E-mail - immaniyelu@gmail.com
Phone : 8500009958
Abstract:
Entrepreneurial activity involves identifying opportunities within the economic
system. Entrepreneurship is dynamic process. Entrepreneurship plays a crucial role in the
growth and development of economic system of society. In spite of having a large publicly
funded science and technology infrastructure and a sizeable education base, India has not
been able to realize its innovative potential due to a fragmented innovation ecosystem. The
government of India has taken many initiatives towards strengthening the innovation
ecosystem, the most important of which are: i) the establishment of the National Innovation
Council, whose mandate is to coordinate various innovation-related activities, and ii) the new
Science, Technology and Innovation Policy 2013, which is intended to promote
entrepreneurship and science-led solutions for sustainable and inclusive growth. Government
support is a prerequisite for development of entrepreneurship among entrepreneurs.
Government of India is promoting this cause through various schemes such as Technical
Assistance, Supply of Machinery and Equipment, etc. The Department of Small-Scale
Industries and Agro and Rural industries was created in 1991, in the Ministry of Industry to
exclusively formulate the policy framework for promoting and developing small-scale
industries in the country. No doubt, the Government has been introducing various self-
employment generating schemes in order to generate employment but still it is seen that
entrepreneurial activities in some areas of the country is not satisfactory. Hence, there is an
acute need to study the role of Government in promotion and growth of entrepreneurship.
The present study is a modest attempt to study on the Role of Government in Developing
Entrepreneurship.

Introduction:
Many developing countries like India has been facing the problem of rapid growth of
population on the one hand and increasing unemployment on the other hand. In order to
promote economic development, these countries have been spending huge amount of money
in different sectors including education. The Government has been launching number of
entrepreneurship development programmes / schemes and as such have established various
promotion and support organizations like Indian Institute of Entrepreneurship (IIE), North
Eastern Industrial and Technical Consultancy Organizations (NIETCO), Khadi and Village
Industries Commission (KVIC) etc. for entrepreneurship development in the country. The
Government has been providing various types of incentives in the form of subsidy relating to
investment, research and development, taxes, resources, export/import, excise duty
exemption etc. various assistances in different forms, viz.-technical assistance, cash
assistance, assistance for obtaining raw materials, marketing assistance etc., providing
training through entrepreneurship development programmes and providing infrastructural
facilities to the entrepreneurs in the country.

Objectives of the Study:

i. To understand the concept of entrepreneurship
ii. To study various entrepreneurship development programmes
iii. To look into Government policies to micro, small and medium enterprises
iv. To offer suggestions for further improvements
Meaning and Definition of Entrepreneurship:
Entrepreneurship is the capacity and willingness to develop, organize and manage a
business venture along with any of its risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses. In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part
of a nation's ability to succeed in an ever changing and increasingly competitive global
marketplace.

Richard Cantillon defined entrepreneurship as self-employment of any sort.

Entrepreneurs buy at certain prices in the present and sell at uncertain prices in the future.
The entrepreneur is a bearer of uncertainty.

The Entrepreneurship Center at Miami University of Ohio has an interesting

definition of entrepreneurship: "Entrepreneurship is the process of identifying, developing,
and bringing a vision to life. The vision may be an innovative idea, an opportunity, or simply
a better way to do something. The end result of this process is the creation of a new venture,
formed under conditions of risk and considerable uncertainty."

An entrepreneur has been defined as, "a person who starts, organizes and manages
any enterprise, especially a business, usually with considerable initiative and risk; running
a small business with all the risk and reward of any given business process". Entrepreneurs
tend to be good at perceiving new business opportunities and they often exhibit
positive biases in their perception (i.e., a bias towards finding new possibilities and seeing
unmet market needs) and a pro-risk-taking attitude that makes them more likely to exploit the
opportunity. An entrepreneur may be in control of a commercial undertaking, directing
the factors of production the human, financial and material resources that are required to
exploit a business opportunity. Entrepreneurs act as managers and oversee the launch and
growth of an enterprise. Entrepreneurship is the process by which either an individual or a
team identifies a business opportunity and acquires and deploys the necessary resources
required for its exploitation.

Joseph Schumpeter (1934); The entrepreneur is the innovator who implements change
within markets through the carrying out of new combinations. The carrying out of new
combinations can take several forms; 1) the introduction of a new good or quality thereof, 2)
the introduction of a new method of production, 3) the opening of a new market, 4) the
conquest of a new source of supply of new materials or parts, 5) the carrying out of the new
organization of any industry.

Jean Baptiste Say (1816); The entrepreneur is the agent "who unites all means of
production and who finds in the value of the products...the reestablishment of the entire
capital he employs, and the value of the wages, the interest, and rent which he pays, as well
as profits belonging to himself."

Harvey Leibenstein (1979); the entrepreneur fills market deficiencies through input-
completing activities. Entrepreneurship involves "activities necessary to create or carry on an
enterprise where not all markets are well established or clearly defined and/or in which
relevant parts of the production function are not completely known.

Role of Government in Promoting Entrepreneurship:

India is a country with over 1.2 billion people, 379 million (31%) of which are
between the ages of 18 and 35 (Census of India, 2011). And, many of these young people are
in search of jobs, despite being educated. For example, only one in every four urban males
under 29 years is employed even though they hold at least a certificate or diploma (National
Sample Survey Office, 2013). The aim of the government has been to create employment
opportunities for youth while focusing on rapid economic growth. Entrepreneurship
development is one of the mechanisms adopted by the Government of India towards the
creation of job opportunities. The government's assumption is that support for innovation will
enhance entrepreneurship development, which will in turn accelerate economic growth.

The Government has established number of institutions to implement various

entrepreneurship development programmes / schemes launched within the frame work of five
year plan and provided support facilities to the entrepreneurs in the form of various types of
assistances and incentives. In fact, both the Government and various industrial promotion and
support institutions have been making considerable efforts to facilitate the process of
emergence of entrepreneurs for setting up of enterprises in different field of activity.

The India Inclusive Innovation Fund is designed to "combine innovation and

dynamism of enterprises to solve the problems of the bottom of the pyramid in India"
(National Innovation Council, 2014). The initial investment of INR 500 crores is slated to
expand 10 times. The government contributed 20% of the fund, and the rest came from
financial institutions, insurance companies, multilateral/bilateral development agencies, and
Indian and global corporations. The life of the fund is nine years, and it is focusing on
healthcare, food and nutrition, agriculture, education energy, financial inclusion, and
environment technology, among other areas.

Government always has a very vital role in the promotion of entrepreneurship. This is
a key objective of Government now since employment opportunities are limited and
encouraging entrepreneurs and entrepreneurship not only creates additional employment but
also limits the burden of Government. The government agencies promote entrepreneurship
through different institutions which have been set up to fulfill this objective.

Ministry of MSME is implementing the entrepreneurship development and skill

upgradation schemes through appropriate training facilities. The Ministry has set up three
national level Entrepreneurship Development Institutes viz., National Institute for Micro,
Small and Medium Enterprises (NI-MSME) (1960) at Hyderabad, The National Institute for
Entrepreneurship and Small Business Development (NIESBUD) (1983) at Noida (Uttar
Pradesh), and Indian Institute of Entrepreneurship (IIE) (1993) at Guwahati, to inculcate
entrepreneurial culture especially among the first generation entrepreneurs. There is the
scheme for Providing Support for Entrepreneurial and Managerial Development of SMEs
through Incubators in implementation since 2008. There is the MSME Technology Centres
(earlier Tool Room & Technology Development Centres) which provide high end skill
training to the youth. A national award scheme has been initiated by MSME for outstanding
performance in Entrepreneurship, Research and Development, Innovation, Lean
Manufacturing Techniques and Quality Products.

Government accords the highest preference to development of MSME by framing and

implementing suitable policies and promotional schemes. It is the apex body for assisting the
Government in formulating, coordinating, implementing and monitoring policies and
programmes for micro, small and medium enterprises (MSMEs) in the country. MSME-DO
provides a comprehensive range of common facilities, technology support services,
marketing assistance, entrepreneurial development support, etc. Besides providing developed
land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure,
special schemes have been designed for specific purposes like quality upgradation, common
facilities, entrepreneurship development and consultancy services at nominal charges.
Government of India has been executing the incentive scheme for providing reimbursement
of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a
maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption
of consistent management practices and production technique as decided by the entrepreneur
himself. This facilitates achievement of desired level of quality while keeping check on
production process and management of the enterprise.

Focus will also be placed on encouraging women entrepreneurs through appropriate

incentives for women owned businesses under the public procurement process. It will also be
ensured that gender neutral incubation/ accelerator, network of mentors, industry, resource
centres and credit institutes are developed to facilitate Women Entrepreneurs. Priority will be
given for mentorship and support system for women entrepreneurs in existing business
centres and incubators. Steps will also be taken to assemble gender disaggregated data.

The problem of unemployment is a matter of great concern for any underdeveloped or

a developing country. In India, the unemployment rate has been increasing over the years.
The increasing number of job seekers in the Live Registers of different Employment
Exchanges of the country signifies the alarming rate of unemployment problem. To promote
self-employment as a means of job-creation and to promote entrepreneurship for further job
creation, the Micro, Small and Medium Enterprises (MSME) Act, 2006 was enacted to
facilitate the promotion, development and enhancing the competitiveness of micro, small and
medium enterprises. Earlier to that the small scale industries (SSIs) were regulated by two
sections of the Industries (Development & Regulation) Act, 1951 which led to absence of an
institutional regulatory and consultative mechanism to capture and guide the progress of an
SSI unit from being a micro unit to a small scale and eventually to medium scale one. The
earlier Act also excluded the fast emerging service sector. But even after the implementation
of the MSME Act, 2006 the high proportion of unregistered MSME units outside the purview
of the Act is a matter of concern.

Besides, several schemes and programmes have been undertaken by the Government
with the aim of facilitating access to adequate credit from financial institutions; funds for
technology upgradation and modernisation; integrated infrastructural facilities; modern
testing facilities and quality certification laboratories; modern management practices,
entrepreneurship development and skill up gradation through appropriate training facilities;
etc. The schemes so announced include i. Tax Holiday Scheme ii. Composite Loan Scheme
iii. Industrial Estate Scheme iv. Scheme for International Cooperation v. Scheme of Surveys,
Studies and Policy Research vi. Scheme of Fund for Regeneration of Traditional Industries
(SFURTI) vii.Scheme of Product Development, Design Intervention and Packaging
(PRODIP) viii. Scheme of Khadi Karigar Janashree Bima Yojana for Khadi Artisans ix.
Scheme of Interest Subsidy Eligibility Certification (ISEC).

A startup ecosystem has been created through the new policy initiatives which would
not only promote startups particularly in the manufacturing sector but also the micro units
would be able to graduate faster as small and medium units. If this objective is achieved the
goal of job realization through self-employment would be complete as self-employment is the
answer to providing jobs to the huge proportion of population in the economically active age
group. This process would be fast tracked by the flagship programmes well supported by the
Skill India Mission which would facilitate availability of right skilled manpower as
entrepreneurs complains about skill mismatch. Given that startups are emerging as major job
creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.

Suggestions:
i) The success of any Government sponsored programme/scheme depends very much
upon proper co-ordination between the Government officials and the officials of lending
institutions but many times it is seen that the outlook and approach of both are dissimilar.
Thus, there is a need for building up such an environment in which both the Government
officials and the officials of the lending institutions can play their role effectively and with
proper co-ordination with each other.
ii) Efforts should be made by the government to channel funds to small businesses towards
their development. This can be done by compelling banks to set aside certain percentage of
their credit distribution for lending to small businesses.
iii) Both the Central and the State Governments should take adequate steps to disseminate
information to the entrepreneurs about its policies, incentives, schemes, programmes etc.
relating to enterprises. Moreover, the Government should organize re-orientation
programmes, workshops and seminars at district level in order to provide latest information
on different entrepreneurial activities and as such ensure peoples participation.
iv) Government should establish more agencies meant to grant small scale businesses credit
facilities as well as financial and technical advice.
v) The Government institutions/departments under any Government sponsored programme /
scheme should select such activities which have sufficient potentialities for development
rather than selecting the stereo-type activities in the area where the scheme is implemented.
vi) The Government should make arrangements to develop and provide all types of
infrastructural facilities to the entrepreneurs through policy resolution and various
institutions.
vii) The Government as a facilitator should motivate and provide proper training on different
aspects like research and extension, credit facilities, quality control, marketing facilities etc.
viii) The Government should ensure such type of credit flow system which is free from
political influence or recommendation from higher authority.
ix) Availability of good markets for goods and services is the first and foremost requirement
of an enterprise. Therefore, the Government should take efforts to provide such services to
the entrepreneurs.
x) The entrepreneur should try to develop a positive work culture by identifying the task,
maintaining punctuality and discipline in their enterprises.
Conclusion:
Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more
about overcoming barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship
is one of the important segments of economic growth. Innovation is a key factor that an
entrepreneur brings in an overall change through innovation for the maximum social good.
However, the investments in science, technology, and innovation are not yet translating into
the desired reality. Realizing that the innovation-led entrepreneurship development holds
promise for growth, the government should take major policy initiatives with a strong
innovation agenda.

References:
1. T.Swetha, Dr.K.Venugopal Rao, Entrepreneurship in India, International Journal of Social
Science & Interdisciplinary Research, Vol. 2 (7), July 2013
2. Ravindra Abhyankar, The Government of India's Role in Promoting Innovation,
Technology Innovation Management Review, August 2014
3. Nkem Okpa Obaji1, Mercy Uche Olugu, The role of government policy in
entrepreneurship development, Science Journal of Business and Management Vol. 2, No.
4, 2014
4. Adeusi S.O., Aluko O.A., Assessing the Role of Government in Promoting Small Scale
Businesses in Kogi State: The Kabba/Bunu Experience, IOSR Journal of Business and
Management (IOSR-JBM)
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Investment and Financial Development, AIMA Journal of Management & Research,
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ups, Laghu Udyog Samachar, January, 2016
An Outlook of Indian Beauty & Wellness Industry:
A future scope for budding entrepreneurs
*
A Sai Manideep, ** Dr. P Srinivas Reddy
*Research Scholar, Department of Management Studies, Vignans Foundation for Science,
Technology and Research University, Vadlamudi, Guntur District, Andhra Pradesh.
sn8820@gmail.com , 9000652592
**
Professor, Department of Management Studies, Vignans Foundation for Science,
Technology and Research University, Vadlamudi, Guntur District, Andhra Pradesh.
Abstract:

All desire for is to look good and fit and admire ourselves if we are and if others make
a compliment of our attire it would boost our confidence and makes happy. Ones strive to
look good and fit drives them to a wellness center it may be salons/beauty parlor, hair and
skin care, cosmetic treatment, spa and fitness/slimming centers. Research on wellness
industry is imperative because the wellness market is expanding with a growth rate about
33% per year. It is an attractive platform for budding entrepreneurs to concentrate on a low
explored market to fulfill their entrepreneurial notion. The field of entrepreneurship is
characterized by a competitive spirit, financial gain, independence and socioeconomic
factors; it would be possible only when future markets are explored by budding
entrepreneurs. This paper speaks to the growth of Indian Beauty & Wellness Industry and
scope for entrepreneurship development.

Keywords: Entrepreneurship, Health & Wellness, budding entrepreneurs.

Introduction and Industry Overview:

In India, wellness is an idea which has been in vogue since antiquated circumstances.
Customary therapeutic and wellness hones like Ayurveda and yoga have propounded the idea
of mental and real health. The greater part of the antiquated wellness ideas have generally
centered around the fundamental needs of a person inside the need progressive system,
specifically an emphasis on wellness, sustenance, and unwinding.

The evaluated showcase size of the worldwide wellness and health industry is about
$1.4 Trillion. It is a proof that wellness and health industry could require a more noteworthy
measure of workforce and an open door for the millennial age to adapt their entrepreneurial
wish. Divisions, for example, assembling, development, and coordinations require enormous
venture and one ought to manage a contemporary rivalry to keep up their business as usual.
In any case, Beauty and wellness industry is consistently thriving it might due to expanded
magnificence and wellness cognizant, urbanization and impact of brand famous people who
we begrudge them.

The worldwide excellence and health industry is developing at a CAGR of 15 %

every year (Report: NSDC and KPMG) in the course of the most recent ten years. The main
five development magnificence and health markets are US, Brazil, China, India, and
Indonesia. The ascent in world's driving medical issues (stoutness, hypertension, and
cardiovascular maladies) add to the interest for wellness related items and administrations.
The rundown of another quickly developing sub - parts incorporate needle therapy,
naturopathy, Ayurveda, reflection, biofeedback, and yoga.

Global beauty and wellness Industry

Nd

Indian Beauty and wellness Industry

Source

(Source: KPMG Analysis)

From the above source it is clearly that the sectors is prosperous. The market share was
about $200 billion in 2002and there is an drastic increase to $1000 billion by 2012 and it is
expected to $1.4 trillion by 2020. A budding entrepreneur could avail this source to explore
opportunity in this sector. To establish a firm to other sectors like manufacturing, construction
and logistics could require huge resources in terms of finance, skilled labor, etc., but to attain
expertise over these sector government organizations like NSIC, MSMC Institutions are
extending their services through offering diploma certified courses. These institutions also
give training over entrepreneurial activities, optimization of resources, market establishment
and financial support from banks encouraging budding entrepreneurs.

Indian Beauty and wellness Industry

(Source: KPMG Analysis)

From the above source the total industry is classified into four major categories. Now
we have a look at the present statics i.e. is 2017 with 2012. Initially beauty and wellness
sector increase of 34% from 33%, it can be inferred that there was and study and constant
growth. So that investment by an entrepreneur in this category would always have a constant
and persistent opportunity. When come to sale of beauty products by the service provider has
shown a consistent growth from 51% to 49% with an average of 50% growth expected. When
come to fitness and slimming category has a constant trend followed through the years, but
when come to Rejuvenation sector has an increase form 3% to 5% to the FY2012 to FY2017.
As a whole it can be determined that the industry is persistently consistent since last five
years and would it could be expected as growth and because of foreign and domestics fashion
products could positively impact the industry.

The beauty and wellness industry in India is growing at a CAGR of 18.6 %( Report:
KPMG and NSCD). The sector is thriving on the increasing section of affluent and middle-
class population that has started considering beauty and wellness as a necessity- when come
to demographic factors of the country 47% (census 2011) are young and most of this
workforce in private sector and their contribution to economy is about 50%. According to
CSO, personal expenditure has reduced to 4% in FY2016 from 8% in FY2015, but
expenditure on personal products and services was study instead of global crises. Expanded
accentuation on an all encompassing prosperity with individuals' want to look great and
youthful are different helpers for the business. The restoration fragment is never again seen as
a minor extravagance benefit yet it is presently recognized as a basic instrument to de-stretch.

Created nations like the US, European countries and numerous Asian creating
countries like India, China, and Indonesia are endeavoring their conceivable endeavors to
degree their administrations into wellness, excellence and health industry. The real angles like
the impact of beautifying agents, FMCG organizations through their ad techniques having an
effect on customer conduct towards wellness administrations. Changing pattern and purchaser
want towards extravagant way of life would likewise tend towards benefiting these
administrations. Were, advertise is client driven. At whatever point there is need and wand
frames a hole and this hole is a possibility for ones like maturing business visionaries to enter
the market.

The factor that is broadly looked into in connection to business enterprise is

inspiration. McClelland (1961) and Winter (1969) has set up this accomplishment inspiration
is a powerful factor for business enterprise. Indian examinations have likewise settled the
way that accomplishment inspiration adds, as it were, in helping the general population to end
up business visionaries (Rao and others 1975). It has additionally been discovered that
exceptionally energetic business people have obtained an attention to their own qualities and
shortcoming, in the meantime they know about encouraging components and limitations
winning in the earth.
Industry Classification:

The sector includes services that can be broadly classified along an evolving
continuum as
o Hygiene services
o Preventive services
o Enhancement services
Each of the following sub-segments fall into each of the above segments or are
placed at their intersection.
From a notional perspective, the industry considers the following as distinct
subsectors based on the unique skill requirements across each

(Source: KPMG Analysis)

1. Beauty care services, including invasive (Botox) and non-invasive cosmetic

treatments including nail services, pedicure and manicure.
2. Hair cutting, hair styling, hair colouring and advanced techniques, such as hair
weaving and rebonding.
3. Physical activity, including gymnasiums and group exercises such as aerobics and
zumba.
4. Slimming and weight loss centers such as body therapy, weight loss and lymphatic
drainage therapies.
5. Includes therapeutic massages for body rejuvenation and detoxification, anti-ageing
treatments and extended therapies such as acupuncture.
6. Sale of beauty and cosmetic products at salons and retail outlets (both general and
specialized outlets)
7. Includes traditional systems of Indian, oriental and western healthcare system such as
ayurveda, yoga, unani, siddha and homeopathy.

Sprouting business people could investigate this market and offer significance to most
recent patterns and shopper fulfillment in conveying this excellence and wellness
administrations with most extreme care and could pick up the market. Fixation on target
divided customer and their necessity as a noteworthy need. Presently, there is the place a
business visionary could extend his firm by obtaining new abilities and innovation selection.

Levers for income development for Entrepreneur

Embracing an adjusted way to deal with scaling up: Franchising has been a typical course
to accomplish quick scale. Notwithstanding, organizations are additionally investigating half
and half models and growing the system of their own outlets with a specific end goal to deal
with the difficulties around the loss of control and brand weakening.

Multi-mark procedure to address differing client portions: Companies are chalking out a
multi-mark methodology so as to target particular client fragments, enter further into existing
markets, and at the same time broaden into more up to date advertises.

Putting resources into building buyer mindfulness and put stock in: Consumer
mindfulness and trust assumes a key part in the development of the wellness items and
administrations showcase and in addition broadening its purchaser base. Players have taken
up various activities to teach and enhance purchaser mindfulness with respect to the
advantages of wellness items and benefits, and are setting up systems for star dynamic
shopper associate and criticism.

Training Infrastructure from Government to boost Entrepreneurship in these sectors:

Modular Employable Skills (MES) Schemes:

1. Offered under the Skill Development Initiative Scheme (SDIS)

2. The plan has a goal to enhance aptitude improvement for early school leavers and existing
laborers, IT/ITC graduates, and so on, particularly in the chaotic segment, in close meeting
with the business, smaller scale ventures in the sloppy area, state governments, specialists and
the scholarly world

3. Further, the ability levels of people officially utilized can likewise be tried and guaranteed
under this plan, i.e., accreditation of earlier/experiential learning

4. It has given a pathway to various passage and ways out, and additionally changing
expertise advancement from long haul aptitude obtaining periods (1 2 years) to here and
now (around three months).

Star Schemes:
1. The Beauty and wellness segment aptitude chamber is the national body organization for
the advancement and development of the excellence and health industry

2. To advance ability improvement in the division, the Beauty and wellness Sector Skill
Council of India take an interest in the national accreditation and reward plot the STAR
(Standard Training Assessment and Reward) Scheme and means to connect with a million
adolescents.

3. The program rewards workers experiencing preparing with a normal reward of INR10,000
per competitor as motivating force under the National Skill Certification and Monetary
Reward Scheme (NSCMRS) dependent upon the hopeful clearing the evaluation with least 90
percent participation

Several leading organized players have established training capacities, primarily to

meet capative requirements:

VLCC Institute: Established in 2001, VLCC has 51 organizations offering courses in 39

urban communities alongside open doors for temporary positions; VLCC is subsidiary to
IGNOU to offer professional preparing in nourishment and excellence in India and is
associated with Doncaster College, UK; Cengage Learning, US, and City and Guilds.

L'oreal Academy: L'Oral Professional International Hairdressing Academy was propelled

in 2006 to draw in ability into the calling of hairdressing. The courses offered at the
foundation are in hairdressing and prepare the coach; they offer prepare the-mentor courses
and permit accomplice establishments to give coach

Anand spa organization, Hyderabad: It was built up in March 2008 by India's head spa
administrator, IHHR Hospitality Pvt. Ltd . The courses offered at the Institute are
International body medications, Ayurveda and Yoga. It offers three understudy admissions a
year, with CIBTAC and ITEC accreditation that keeps going 6 days

Enrich Academy: Enrich foundation was propelled in 2009. Right now, it has a nearness in
more than five areas crosswise over Mumbai, Pune, and Ahmedabad. Improve institute offers
more than 30 courses in hair, excellence and compensate for people at all levels.
Accreditations for the courses are from India Skills City and Guild and CIBTAC

Matrix: Matrix was set up with around 36 Educational studios; the establishment offers
C.R.A.F.T instructive projects and in-salon ace class for existing experts searching for greater
innovativeness Matrix conducts instructive visits exhibiting hair form and showings
 Jawed Habib Academy: Jawed Habib Academy built up around 45 salon institutes in
India. It offers courses in an assortment of courses in hair mind and furthermore courses in
excellence and skin.

. Talwalker Training Academy: Established in 2007, Talwalkers offers courses, positions,

and open doors for the establishment. It empowers preparing for different types of activity,
including Personal preparing Zumba, Nutrition, Nuform, and so on.

Blossoms Kochhar Training Institutions: Operates a chain of preparing foundations under

the brand name Blossom Kochhar College of Creative Arts and Design. BKCCAD possesses
Pivot Point India A Hair and Beauty Academy, Style Inc. a preparing institute, MUD
Make-up Designory and Blossom Kochhar Esthetics and Spa Academy giving all-
encompassing way to deal with spa and wellness instruction

Some of the Successful Entrepreneurs in the Industry:

Ms Carolin Praba Reddy is the first south indian certified Trichologist from the
international associaltion of Trichologists(IAT), Australia. She started prabas Vcare hair
clinic in 2001 in Chennai to provide complete hair care solutions. With strong network of
over 100 professionals in clinics in Andhra Pradesh and Tamilnadu.

Vandana Luthra: Founder of VLCC. In 1989, Vandana Luthra framed a gathering of

Transformation focus in New Delhi. The goal was to offer weight reduction arrangements and
a threpeutic approach for magnificence, wellness and wellness. It is among the biggest chains
of thinning and magnificence focuses crosswise over Asia. Spreaded its operations in India,
Sri Lanka, Nepal, UAE, Saudi Arabia, Kenya and so forth.

Anoos: Anoos is a cosmetics company established in 1982, they have 9 branches in south
india. Anoos is the brain child of four sisters ( Ms Anuradha, Ms Annapurna, Ms Anupama,
Ms Anirudha).

Vijay Krishna D: He is the founder of Kolors Health care institute is an organization of

health and wellness specialist has begun with just 11 employees they have grown to a leading
health service provider, with branches across major metro cities in south India.

Conclusion:

While there are just a modest bunch of players today with incomes of 0.5-1 billion
INR, new venture openings are relied upon to develop as littler players try to develop in size
and scale.The wellness segment has a set number of players having a sizeable extent of
operations (i.e. incomes of more than 0.5-1 billion INR). This can be credited to the
moderately late passage of sorted out players 'into a division, which was to a great extent
described by little scale operations and single-store outlets. Be that as it may, passage of
numerous corporate players in this section is relied upon to produce greater speculation
openings.

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ENTREPRENEURSHIP DEVELOPMENT IN INDIA- A SPECIAL EMPHASIS ON
START-UPS AN EMPIRICAL STUDY

Dr.Prasad Chundi
MBA. LLM., M.Phil.,Ph.D
(Freelancing Business & Law consultant)
HoD Dept.of Business Administration
Scient Institute of Technology, Imbrahimpatnam, R.R. Dist.Telangana State
E.mail: prasadchundi2016@gmail.com
Abstract

The Entrepreneurship Development policy of government of India is projected to

empower the manpower system of the country to gain competitive advantage in the global
market. Entrepreneurship is not new to India. In fact to quote from the Indian Industrial
Commission Report (1916-1918)"At a time when the West of Europe, the birth place of
modern industrial system, was populated by uncivilized tribes, India was famous for the
wealth of her rulers and for high creative 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." Andhra Pradesh is strategically located on the Southeast coast
of India and is a natural gateway to East and Southeast Asia. The State has a population of
4.93 crores.

Introduction

India is a fast developing economy, emerging as one among the top industrial
countries in the world. The higher education policy of government of India is projected to
empower the manpower system of the country to gain competitive advantage in the global
market. The supply of intellectually equipped and technically qualified manpower in the form
of software engineers, scientists ,Entrepreneurs and other professionals to the global market
is a good sign to the country. India today has reached that stage of the demographic shift
wherein more than 60 percent of the population is in the economically active age group of 15-
59 years, commonly referred to as the DEMOGRAPHIC DIVIDEND. For India to tap this
dividend it is necessary that the economy is able to generate enough job opportunities to
productively absorb this economically active population. We do keep mentioning of 500
million strong workforce by 2022 but India faces challenges in reaping this demographic
dividend considering that illiteracy levels among the labour force is still high and between
70-80 percent of the labour force have education levels below secondary. Almost 48 percent
of the workforce is engaged in agriculture while contribution of agriculture to GDP is not
more than 16 percent. This situation may be attributed to the low level of education and
thereby inability to access decent jobs in the non-farm sector. In terms of status of
employment 52 percent of the workforce is self-employed as own-account workers or
helpers, 30 percent as casual workers while only around 18 percent have regular jobs. This
has resulted in more than 90 percent of the workforce engaged in informal jobs and slowing
down the structural transition from farm to the non-farm sector. The policy focus in the
labour market has therefore been to create decent jobs which can give the workforce a
reasonable standard of living. While the emphasis has been on wage employment it has been
felt essential to promote self-employment or to be specific entrepreneurship as an
entrepreneur would be in a position to create more jobs.

Entrepreneurial Environment in India

The Entrepreneurship Development policy of government of India is projected to
empower the manpower system of the country to gain competitive advantage in the global
market. Entrepreneurship is not new to India. In fact to quote from the Indian Industrial
Commission Report (1916-1918)"At a time when the West of Europe, the birth place of
modern industrial system, was populated by uncivilized tribes, India was famous for the
wealth of her rulers and for high creative 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." In fact an earlier version of the current Make in India policy
was the Swadeshi movement launched in 1905 during the pre-Independence era to boycott
British made goods and use Indian made goods. The movement saw the development of the
Indian textile industry, the iron & steel industry by the Tatas, publishing of vernacular
newspapers, setting up of vernacular medium educational institutions, financial institutions
etc.

However, post-independence the policy focus of increased public investment in heavy

industries and setting up of PSUs did not provide an ideal environment for entrepreneurship.
The main problems faced by an entrepreneur were lack of mentoring facilities, technology
support or easy availability of credit. Though different Reports on employment highlighted
the need for promoting entrepreneurship as means of self-employment, entrepreneurship did
not scale up. To mention a few, in the S.P Gupta Special Group Report on Targeting 10
million Employment Opportunities Per Year (2002) recommended appropriate programmes
should be launched to increase entrepreneurial capabilities and skill for self-employment.
The Montek Singh Ahluwalia Report of the Task Force on Employment Opportunities, July
2001 also mentions about developing entrepreneurship ability among the newly self-
employed. The Report even recommends entrepreneurship training for the informal sector. To
quote, A large part of the employment generated by the economy will be self-employment in
the informal sector. These self-employed entrepreneurs need training of the multi-skill
variety, going beyond production skills to include marketing, finance and accounting and
elementary management. Such skills cannot be developed through structured formal training
but requires the guidance of mentors in actual business conditions.
Need of the Study

There is a rising demand for manpower and employment opportunities across various
countries all over the world. Since globalization has blurred borders people move across
continents to take up employment opportunity. But at the same time it is an obvious fact that
the demand is most often for the qualified and suitably skilled manpower only. Various
studies and research have shown that providing employment opportunities in Government
sector as well as private sector is a big challenge for the public governments influencing the
various factors on it. This being the scenario, most institutions of higher learning, state and
National Government taking positive initiatives aim at incorporating entrepreneurial building
skills in their curriculum. India has a huge band of population in the young age group and
statistics show that most of them are professionals. The fact that they are technically
knowledgeable alone is not enough. They need to be trained in various aspects of
employability and entrepreneurial skills. Based on the need the researcher has taken the
problem to study the new approach to Entrepreneurship development in India and concept of
startups in modern times. The sun rising state of Andhra Pradesh is one among others
potentially utilizing the natural resources as well as human resources in order to create the
new avenues for skill development and entrepreneurship for sustainable development.

However, entrepreneurship in India has been confined to being own-account workers

with one or more helpers and did not expand in size beyond that. As maybe seen from the
Fifth Economic Census 2005, 95 percent of establishments were engaging not more than five
workers and they accounted for almost 64 percent of the employment. If the employment
size of a unit is taken as not more than 10 workers then 98.5 percent of the establishments are
covered. (Table-1)

Table-1 Distribution of Establishments by size class of Employment

S. Size by class of
Item Year
No Employment

1 1-5 Establishments 1990 1998 2005

Persons usually working 93.4% 94.0% 95.1%
2 6-9 Establishments 54.5% 58.6% 64.2%
Persons usually working 3.5% 3.3% 3.4%
3 10 & above Establishments 8.4% 8.3% 10.2%
Persons usually working 3.1% 2.8% 1.5%
 S. Size by class of
Item Year
No Employment

37.1% 33.1% 25.5%

Source: Table 5.12, Chapter V, Fifth Economic Census 2005-All India Report, GoI
To promote self-employment as a means of job-creation and to promote
entrepreneurship for further job creation, the Micro, Small and Medium Enterprises (MSME)
Act, 2006 was enacted to facilitate the promotion, development and enhancing the
competitiveness of micro, small and medium enterprises. Earlier to that the small scale
industries (SSIs) were regulated by two sections of the Industries (Development &
Regulation) Act, 1951 which led to absence of an institutional regulatory and consultative
mechanism to capture and guide the progress of an SSI unit from being a micro unit to a
small scale and eventually to medium scale one. The earlier Act also excluded the fast
emerging service sector. But even after the implementation of the MSME Act, 2006 the high
proportion of unregistered MSME units outside the purview of the Act is a matter of concern.

The government has over time implemented policies for the promotion of the small
industries which included providing concessional credit, training in entrepreneurship
development, marketing assistance etc. But the entrepreneurial growth did not take off in a
big way in India as compared to other countries because of the procedural hassles, stringent
labour laws, economic regulations etc that the establishments had to face. Further with import
liberalization and entry of MNCs into India, the Indian small scale entrepreneurs are not able
to face the competition and are finding it difficult to survive. In this context to quote from the
Second National Commission on Labour (2002) New economic changes will provide more
opportunities and not enough jobs. Therefore, one has to take advantage of the opportunities.
Both in urban and rural areas, there may not be an impressive rise in wage employment but
there will probably be enough scope for self-employment. The emphasis, therefore, has to be
not on wage jobs but on creating self- employed persons or entrepreneurs. The entire system
of training and education will have to give emphasis on the development of
entrepreneurship.

In keeping with this spirit the Ministry of MSME is implementing the

entrepreneurship development and skill upgradation schemes through appropriate training
facilities. The Ministry has set up three national level Entrepreneurship Development
Institutes viz; The National Institute for Entrepreneurship and Small Business Development
(NIESBUD) (1983) at Noida (Uttar Pradesh), National Institute for Micro, Small and
Medium Enterprises (NI-MSME) (1960) at Hyderabad, and Indian Institute of
Entrepreneurship (IIE) (1993) at Guwahati, to inculcate entrepreneurial culture especially
among the first generation entrepreneurs. There is the scheme for Providing Support for
Entrepreneurial and Managerial Development of SMEs through Incubators in
implementation since 2008. There is the MSME Technology Centres (earlier Tool Room &
Technology Development Centres) which provide high end skill training to the youth. A
national award scheme has been initiated by MSME for outstanding performance in
Entrepreneurship, Research and Development, Innovation, Lean Manufacturing Techniques
and Quality Products.

In addition the creation of Self Help Groups cannot be underestimated. Self Help
Group is a homogeneous group of micro entrepreneurs which are formed voluntarily to save
whatever amount they can and mutually agree to contribute to a common fund of the group
from which small loans are given to the members for meeting their productive and emergent
credit needs on rate of interest and terms decided by the group. These have helped in
providing livelihood opportunities to group of women to start their own business and break
the shackles of poverty. Some of the best case entrepreneurial models are the SEWA,
Kudumbashree etc. Though entrepreneurship has been privy to India and despite various
schemes being in place the country has not witnessed the natural gradation from self-
employment to entrepreneurship as part of the growth process excepting a few cases.

Entrepreneurship climate in Andhra Pradesh

Andhra Pradesh is strategically located on the Southeast coast of India and is a natural
gateway to East and Southeast Asia. The State has a population of 4.93 crores (as per
population census - 2011), accounting for 4% of Indias population, residing in 4.9% of
geographical area. The State is endowed with abundant natural resources (Barytes,
Limestone, Bauxite, and a number of minor minerals), fertile land and river basins, water
resources, extensive canal system and conducive agro-climatic conditions. The State has the
second longest coastline in India and is also one of the largest producers of marine products.
At current prices, the Gross State Domestic Product (GSDP) of Andhra Pradesh was
4,75,859 crores in 2013-14. Between 2004-05 and 2012-13, the average annual GSDP
growth rate of Andhra Pradesh was 7.25% while the average per capita income at (current
prices) increased from 46,345 in 2008-09 to 88,876 in 2013-14.

The Advanced Estimate for GSDP in 2014-15 is 5,20,030 crore and the target for
GSDP in 2015-16 is 6,36,606 crore (both at current prices). Over the years, the State has
established a strong presence in agro and food processing, textiles, chemicals &
petrochemicals, pharmaceuticals, metallurgy, electronics and electrical engineering sectors.

Under the stable leadership of Sri. N Chandra Babu Naidu, Chief Minister of Andhra
Pradesh has identified development of MSMEs as a catalyst for job creation and poverty
mitigation and Government of AP has accorded top priority to their development. In parallel,
there is significant thrust on encouraging startups and setting up incubation centres to provide
a conducive eco-system for MSME. The MSME sector in AP manufactures a variety of
products. There is a high concentration of micro and small units in the food sector, mineral
and building materials sector, drugs and pharmaceuticals, fabricated materials, trading and
service sector. The Andhra Pradesh MSME Policy 2015-20 is aimed at establishing state-of
the art infrastructure, advancing inclusivity, fostering innovation and creating employment
opportunities across different skill sets.

Strategic advantages that Andhra Pradesh State

Robust Infrastructure
Andhra Pradesh has robust infrastructure comprising good road and rail network, 4
major ports, 4 active airports and 24X7 power for industrial/commercial use. Additionally,
the State is creating a land bank of 10 lakh acres to facilitate industrial development. Mega
projects like Vizag-Chennai Industrial corridor (VCIC) and Chennai-Bengaluru Industrial
Corridor (CBIC) will help develop new economic centres in the State, further giving fillip to
industrial development

Large base of Skilled Manpower

The State has over 120 polytechnics, 225 engineering colleges and several
management institutes which meet the industries requirements for skilled manpower. The
State also boasts of cordial labour relations as well as general peace and order owing to
GoAPs welfare policies (Andhra Pradesh was the first state to amend Contract Labour Act to
define core and non-core activities). Last but not the least, Andhra Pradesh is uniquely
positioned to access the global talent pool by leveraging a strong diaspora active in this
sector.

The factors inhabiting in up gradation process

In the entrepreneurial ecosystem the journey of an entrepreneur begins from
conceiving an idea to developing it into a project proposal for starting a business. The
handholding is required at this stage which is lacking. The entrepreneur is saddled with
regulatory hurdles and financial blocks in moving the startup ahead. The availability of risk
capital from banks or venture capital companies is limited. Poor infrastructure availability
also increases the operational costs for the startups. To quote the National Knowledge
Commission, 50% of the entrepreneurs experienced difficulties while seeking statutory
clearances and licenses. Two-thirds faced hassles while filing taxes and 60% claimed to have
encountered corruption. Another hurdle was in accessing reliable information on registration
procedures, finance and other schemes. 56% claimed that the paucity of quality infrastructure
especially transport, power, and telecommunications was a critical barrier. As a result of
these hurdles the proportion of closure of units is also high at the startup stage. The
entrepreneurial culture is also lacking as the institutions of learning train students for wage
employment rather than in becoming entrepreneurs. A key socio-cultural factor also pertains
to social attitudes towards risk and failure. To better understand and manage risk as well as
create a supportive social environment for entrepreneurs, it is essential to remove the stigma
associated with failure.

Start-up a Revolutionary thought for Transformation

On the other hand, a change is being witnessed today, as quoted by Prime Minister
Shri. Narendra Modi, The convergence of technology, integration across diverse fields,
distributed architecture and people willing to back an idea, have opened a new world for
enterprise. --- I see Start-ups, technology and innovation as exciting and effective instruments
for Indias transformation, and for creating jobs for our youth. For start-ups today there are
different levels of financial support that has come to provide the initial seed capital in the
form of incubators, angel funds, or venture capital funds followed by private equity and debt
in that order. Between January-September 2015, Angel Funds and VCFs have invested $7.3
billion in early stage Indian Start-ups. Indias first generation e-commerce and mobile
entrepreneurs have become angel investors which is a sign of maturing of startup ecosystem.
However, there is a danger that too many mentors/ angel investors with little experience may
lead to a situation of unsuccessful startups.

Start-up! An Idea selling for self empowerment

The government has also come a big way in promoting startups. The question
therefore what needs to be answered is what is a start-up? A start-up is a company that is in
the first stage of its operations. These companies are often initially bank rolled by their
entrepreneurial founders as they attempt to capitalize on developing a product or service for
which they believe there is a demand. The start-up and SMEs appear to be of the same size
with limited revenues, high cost of operation, job creating but they operate on entirely
different business models. The difference between a start-up and a SME unit is that a startup
is new organization designed to search for a repeatable and scalable business model. A start-
up according to Steve Blank is searching for answers to the product it will sell, the
customers it will serve and the way it will make money from delivering value to its
customers. A SME, according to the U.S. Small Business Administration (SBA) is an
independently owned and operated, organized for profit, and not dominant in its field.
SMEs generally sell known products to known customers in known local markets. These
startup needs an appropriate ecosystem to thrive which includes adequate funds for startups
to help them grow; government to create an environment of ease of doing business; ready
availability of essential services like office space, location, supplies telecom connectivity etc.;
and mentors to provide strategic advice.

Latest Policy Initiatives for Start-ups

To simplify the regulatory framework the government introduced the Ease of Doing
Business wherein an MSME unit has to fill in a single one page self-declaration online form
called Udyog Aadhaar. The Apprentices Act, 1961 was amended to enable even the MSME
units engage apprentices which will enable the units to get trained labour as well as in turn
supply skilled labour. Under the Apprentice Protsahan Yojana, 50 percent of the stipend
payable to the apprentices would be reimbursed by the Government for the first two years
which is an incentive for MSME units to take in more apprentices.

To give boost to the Make in India programme, the MSME Ministry has launched the
ASPIRE scheme in March 2015, a Scheme for Promotion of Innovation, Rural Industry and
Entrepreneurship. The objective of the scheme is to set up a network of technology and
incubation centers to accelerate entrepreneurship and also to promote start-ups for innovation
and entrepreneurship in agro-industry.

To ease the credit availability requirements of startups the Government had

announced the MUDRA scheme- Micro Units Development & Refinancing Agency, operated
by SIDBI for providing refinance to micro units. This would improve the liquidity of the
micro units who right now have to borrow from NBFCs and moneylenders at high rates of
interest.

Atal Innovation Mission (AIM) - This programme operated from NITI Aayog is
about an Innovation Promotion Platform involving academics, entrepreneurs and researchers
and draw upon national and international experiences to foster a culture of innovation, R&D
and scientific research in India. The platform will promote a network of world class
innovation hubs and grand challenges for India. The overarching purpose of this mission is to
promote a culture of entrepreneurship and innovation in India. The key objectives of the AIM
are:

To create an umbrella structure to oversee innovation eco-system of the country;

To provide platform and collaboration opportunities for different stakeholders;
To study and suggest best and novel practices to be adopted by different stakeholders
in the innovation chain;
To provide policy inputs to NITI Aayog and various Government Departments and
Organizations.
To create awareness and provide knowledge inputs in creating innovation challenges
and funding mechanism to government; and,
To develop new programmes and policies for fostering innovation in different sectors
of economy.
SETU (Self Employment and Talent Utilization)- SETU meaning bridge in Hindi is a
Techno-Financial, Incubation and Facilitation Programme to support all aspects of startup
businesses and other self-employment activities, particularly in technology driven areas
operated from NITI Aayog. An Expert Committee on Innovation & Entrepreneurship for
working out the detailed contours of the Atal Innovation Mission (AIM) and SETU was
constituted by NITI Aayog. The Expert Committee has identified five major drivers for
creating a vibrant entrepreneurial eco system viz; (i) catalytic government policy and
regulatory framework (ii) easy access to equity capital and debt (iii) businesses as
entrepreneurial hubs (iv) culture and institutions which encourage entrepreneurship over
careerism (v) adequate and effective collaboration forums.

Electronics Development Fund- the Ministry of C&IT has launched the Electronics
Development Fund (EDF) to promote innovation, research and development, and product
development in the field of semiconductors, nano-electronics, IT and associated sectors by
bringing in established companies and startups on board13. The objective is to do research,
design and develop electronic products within the country for which the startup units would
be provided supportive financial assistance from the EDF.
Digital India- Digital India Programme has been launched to provide broadband connectivity
in rural and urban areas. Introduction of digital rural connectivity would give a big boost in
developing traditional rural arts, crafts or other innovative ideas into business models.

Make in India is an initiative launched by the Government of India to encourage national,

as well as multi-national companies to manufacture their products in India. It was launched
by Prime Minister Narendra Modi on 25 September 2014.

Standup India - This is organically integrates Bhartiya Micro Credit (BMC) E-Rickshaws
program into Prime Minister Shri Narendra Modi flagship 'Stand Up India' initiative. The
Prime Minister on 15th August 2014 launched the Pradhan Mantri Jan Dhan Yojana
(PMJDY) for Banking the Unbanked.

This program was launched by Honble Prime Minister Narendra Modi the 'Stand up
India' scheme on 5 April 2016 as part of the government's efforts to support entrepreneurship
among women and SC & ST communities.

Intellectual Property Rights-With the growing number of startups it is essential to protect

ones products from impersonators. The startups need to go for design patents, trademarks,
copyright or trade secrets protection as the need maybe before marketing their product.

India Aspiration Fund- A Rs. 2000 crore India Aspiration Fund (IAF) was launched
by SIDBI in August 2015 to boost the startups fund of-funds ecosystem in the country. This
fund would invest in various venture capital funds for meeting the equity requirement of
MSME start-ups. A SIDBI Make in India Loan for Small Enterprises (SMILE) Scheme of
Rs.10,000 crore has also been launched to catalyze tens of thousands of crores of equity
investment in start-ups and MSMEs, creating employment for lakhs of persons, mostly
educated youth over the next 4-5 years. The objective of SMILE is to provide soft loans in
the nature of quasi-equity and term loans on relatively soft terms to MSMEs to meet the
required debt-equity ratio norm. The 25 sectors under the Make in India programme would
be the focus with emphasis on financing smaller enterprises in the MSME sector. There will
be concessional terms for the enterprises promoted by (SC) / (ST) / Persons with Disabilities
(PwD) and women. The scheme is expected to benefit approximately 13,000 enterprises, with
employment for nearly 2 lakh persons.

These two schemes are in addition to the Rs.20000 crore MUDRA scheme. Together
the three finance schemes should boost the startups as well as MSMEs already in the
transition phase and create good number of jobs in the years to come. Till date the startups
have been successful in e-commerce, and other IT based applications of service sector. The
startups in manufacturing sector are yet to take off in a big way. The launch of the above-
mentioned policy initiatives should give a boost to startups in manufacturing as well. As of
16th November 2015, 806 startups have taken off during the year and the main sources of
funding were seed funding and private equity and the products were mainly IT based
applications in the service sector.

In the Global Competitiveness Index (GCI) 2015-16 India has scored 16 points and
moved up from its earlier ranking of 71 to 55 out of a total of 144 countries. Region-wise
among the emerging and developing Asia India ranks sixth after Malaysia (18), China (28),
Thailand (32), Indonesia (37) and Philippines (47). India does have the potential to move
ahead of these countries. In the World Banks Ease of Doing Business Ranking 2015 India is
placed at 142 place out of a total of 189 economies. But on the startup front India ranks third
position globally with 4200 startups. The new initiatives in promoting startups would enable
India to move up to the top position.

Conclusion:

Startup India campaign is based on an action plan aimed at promoting bank financing for
start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The
Standup India initiative is also aimed at promoting entrepreneurship among SCs/STs, women
communities. To conclude, a startup ecosystem has been created through the new policy
initiatives which would not only promote startups particularly in the manufacturing sector but
also the micro units would be able to graduate faster as small and medium units. If this
objective is achieved the goal of job realization through self-employment would be complete
as self-employment is the answer to providing jobs to the huge proportion of population in
the economically active age group. This process would be fast tracked by the flagship
programmes well supported by the Skill India Mission which would facilitate availability of
right skilled manpower as entrepreneurs complains about skill mismatch. Given that startups
are emerging as major job creators, governments both at the Centre and States need to put in
place appropriate policy framework for the start-ups.
References:

1. Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small
and Medium Enterprises Development Act, 2006-Department-Related Parliamentary
Standing Committee (2013)
2. Transferred to Ministry of Skill Development & Entrepreneurship vide GoI Order
No.9(1)2015-EDI dated 22nd May 2015
3. Entrepreneurship in India, NKC, 2008
4. Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015,
San Jose, California)
5. http://yourstory.com/2015/10/indian-startups-invested/
6. Young Entrepreneurs turn Angels for Younger Startups, Times of India, June 30, 2014.
7. Investopedia
8. https://www.quora.com/Peter Baskerville
9. Young Entrepreneurs turn Angels for Younger Startups, Times of India, June 30, 2014.
10. Economic Times, 11th June,2015

11. http://www.indiainfoline.com/article/news-sector-banking-financials/sidbi-launches
india-aspiration fund-and-sidbi-makein-india-loan-for-enterprises-scheme-
5082000192_1.html

12. Source: http://trak.in/india-startup-funding-investment-2015/.

13. Figures in brackets indicate GCI rankings

14. MSME Policy document of Andhra Pradesh State

Role of central Government in Empowerment & Entrepreneurship development of

Persons with Disabilities (PwDs) in India
Y. Nagendra
Email: nagendra6391@gmail.com, (M):9958906391
Research Scholar, Department of Business Management, Yogi Vemana University, Kadapa,
AP.
Dr. S. Subba Reddy
Assistant Professor, Department of Business Management, Yogi Vemana University, Kadapa,
AP.
Introduction:
 Entrepreneurship Development is a rapidly growing distinct field of study.
Entrepreneurship and entrepreneurship development has become an everyday buzzword,
Policy makers, economists, academics and even common people are talking about it.
Seminars, conferences and workshops are being conducted every year across the world.
Which emphasized on the importance of entrepreneurship to country, society as well as
individual development (Bechard and Toulouse 1998). Today entrepreneurship is regarded as
one of the best economic development strategies to develop country's economic growth and
sustain the country's competitiveness in facing the increasing trends of Globalization
(Schaper and Volery 2004). Entrepreneurship is a major engine driving many nations
economic growth, innovation and competitiveness.

Many studies have been made in the subject of entrepreneurship in general and other
relative field, women entrepreneurship, Ethnic entrepreneurship, Social entrepreneurship, and
other allied topics. Entrepreneurship and social development, but less works and studies has
been found out in the field of Entrepreneurship Development of PwDs.

This paper is attempts to present the various central government measures for the
empowerment of disabled people through the development of entrepreneurial quality,
innovation and creativity.

World Scenario
Persons with disabilities make up an estimated 15 per cent of the worlds population,
over one billion80% of whom live in developing countries. They frequently experience
discrimination and face barriers to participation in all aspects of society. As a result, persons
with disabilities are at a high risk of poverty, which in itself increases the likelihood of having
a disability. The inclusion of persons with disabilities in development programming also
makes sense from an economic perspective. Excluding persons with disabilities from the
world of work has costs for societies, in terms of their productive potential, the cost of
disability benefits or pensions, where these exist, and the implications for their families. This
exclusion may cost countries between 1 and 7 per cent of Gross Domestic Product. These
costs to society can be minimized by dismantling barriers to participation of persons with
disabilities, in education, skills development, enterprise development and employment, as
well as poverty reduction and development programmes.

Indian Context:
 According to the employment projection given in the Eleventh and twelfth Plans, in
the Chapter Employment Perspective and Labour Policy, 116 million job opportunities will
be created leading to a reduction in the unemployment rate to below 1%. There is a wide gap
between the employment rate of people with and without disabilities in the country.
Therefore, the above target for bringing down the unemployment rate cannot be achieved
without addressing the employment issues of people with disabilities, who constitute about 5-
6% of the population.

According to census 2011, there are 2.68 Crore Persons with Disabilities (PwDs) in
India. About 1.34 crores persons with disabilities are in the employable age of 15 to 59 years.
Even though, disabled people constitute a significant percentage of the population of India,
their need for meaningful employment largely remains unmet, in spite of implementation of
The Persons with Disability Act, 1995. Improving vocational training and employment
opportunities for people with disability is a critical element for enhancing the quality of life
for individual with disability, their families, but there are also substantial gains for the
broader economy.

Government Initiatives for empowerment and entrepreneurship development of PwDs:

The following are the details of the Schemes & Institutions working for Entrepreneurship and
Skill Development of PwDs being implemented by the Government of India.

I. NHFDC (National Handicapped Finance Development Corporation):

In 1997, the Government set up a Corporation named National Handicapped Finance and
Development Corporation (NHFDC) under the administrative control of the Ministry of
Social Justice & Empowerment for providing financial assistance at concessional rate of
interest to Persons with Disabilities (PwDs) for self-employment. This Corporation also gives
skill training grant for Skill Training and Entrepreneurship of PwDs wherein it provides
100% of the total recurring cost of the training programme to the training
institutes/organisations. The various schemes of NHFDC are

Scheme for Financial Assistance for Skill & Entrepreneurial Development: The
objective of the scheme is to provide training to the disabled persons to make them
capable and self-dependent through proper technical training in the field of traditional
and technical occupations and entrepreneurship. Financial assistance in the form of grant
is provided for conducting/sponsoring the training. The major features of this scheme are
 The beneficiaries should be in the age group of 15-50 years and fulfill the other
eligibility criteria for availing loan from NHFDC.

100% of the total recurring cost of the training programme is provided by NHFDC.

Stipend - The recurring training cost shall include a stipend of Rs. 500/- per
week per trainee i.e Rs 2000/- per month to the trainee to cover the cost of
transportation and other incidental expenses. The training institute/SCA shall release
the stipend in favour of the trainee through A/c payee cheque only.

The training may be provided through Government Training Institutes like Industrial
Training Institute (I.T.I.), Polytechnic, Engineering College, Agriculture University,
National Institute for Entrepreneurialship and Small Business Development etc. or by
the Private Training Institutes.

Persons with Disabilities can also be included in regular batches of scheduled training
along with non-disabled persons. In such cases, the number of Persons with
Disabilities and the nature of their disability should be clearly indicated.

Micro Financing Scheme: The Corporation assists PwDs by providing loan for self
employment and other economic ventures. The major features of this scheme are

NHFDC would provide 100% of the project cost.

The Loan will be provided for the income generation activities like Small
business/trade, Tiny/cottage industry, Artisan activities, Agricultural & allied
activities, Transport sector activities etc.,

The maximum loan amount shall be limited to Rs 10 lakhs in case of NGO or SHG.
The rate of interest shall not exceed 5% per annum.

A rebate of 1% per annum on interest rate will be admissible to women beneficiaries.

The term loans should be repaid within a period of 36 months in quarterly

installments.

Scheme for Vocational Education and Training of PwDs: The scheme aims at
providing financial support to those eligible PwDs who, have the minimum qualification,
as required by the institution / organization running the vocational education or training.
The major features of this schemes are:

The Quantum of finance is up to Rs 2.00 Lakhs.

 The Rate of interest is as per the education loan scheme of NHFDC.

If the course duration is 1 year, then the repayment will start 6 months from the
completion of the course.

If the course duration is more than 1 year, then the repayment will start 12 months
from the completion of the course.

The repayment period is up to 7 years after commencement of the repayment.

Scheme of Financing Construction of Commercial/Business Premises for starting

Self Employment Activity: The main objective of the Scheme is to assist the
needy disabled persons by providing composite concessional loan for construction of
Commercial/Business premises and starting self-employment activity. The
Commercial/Business premises constructed under the Scheme must be approved by
concerned department i.e. Development Authority or Urban Improvement Trust etc. The
major features of this schemes are:

The Quantum of finance is up to Rs 3.00 Lakhs.

Eligibility and rate of interest as per the NHFDC norms for self-employment loan.

The loan is to be repaid within 10 years.

Scheme for providing handholding support to Disabled Entrepreneurs through

Vishesh Udyami Mitras: The main objective of the Scheme is to provide assistance to
the needy disabled persons in form of information, support, guidance for
procedural/documentation formalities required for availing concessional credit under
NHFDC schemes through SCAs/RRBs by various Institutions/Agencies individuals i.e.
'Vishesh Udyami Mitras' for setting up and running of the enterprise. Role and
Responsibilities of Vishesh Udyami Mitras are as follows:

Identification of potential eligible PwDs interested to take up self-employment

ventures.

Identification of suitable project/product/enterprise and preparation of bankable

project report for the same; and filling of loan application for accessing concessional
credit under NHFDC scheme through SCAs/RRBs/etc., of NHFDC.

Provide guidance to PwDs entrepreneurs regarding various registrations / licenses/

clearances / No Objection Certificates related to chosen business activity.
 Once the enterprise has been successfully set up, the Udyami Mitras would also
monitor and follow up on the functioning of the enterprise and provide help in
overcoming various managerial, financial and operational problems.

Rates of financial assistance to be given by NHFDC to Vishesh Udyami Mitras

(i) For loan up to Rs.1.0 lakh : Rs.500/- per project

(ii) For loan above Rs.1.0 lakh & up to Rs 5.0 lakh : Rs.750/- per project

(iii) For loan above Rs 5.0 lakh :Rs.1000/-per project

Scheme of Financing NGOs working in the area of Disabilities in order to make

Social Entrepreneurs: The major Purpose of the scheme is to provide financial
assistance in the form of loan to the NGOs working in area of disabilities in order to
make them social entrepreneurs by setting up/expansion of an income generating activity
for the benefit of the disabled persons. The nature of income generating activity will be
such that it involves the PwDs directly and income will be distributed among the PwDs.
The income generating activity will be managed by concerned NGOs, which is expected
to render its services voluntarily.

The main objective of the Scheme is to assist the NGOs working in area of
disabilities in order to promote economic development activities and self-employment
ventures in production/manufacturing sector for the benefit of Persons with Disabilities.

Scheme of financing assistive devices to enhance the employability or increased

opportunity of self-employment of PwDs: The major purpose of this scheme is to
provide financial assistance in the form of loan to the target group for purchase of
assistive devices like screen reader, motorized tricycle, scooty, hearing aid etc. to
enhance their employability/improve the prospects of self-employment.

The main objective of the Scheme is to assist the needy disabled persons by providing
concessional loan for procuring durable, reliable and scientifically manufactured,
modern, standard aids and appliances that may enhance their prospects of taking up self-
employment/ employability. The aids and appliances purchased under the Scheme must
be ISI marked or has equivalent certification of quality. The major features of this
scheme are follows:

The quantum of loan is up to Rs 5.00 lakhs.

The repayment of loan is to be made within 5 years.

 The rate of interest up to Rs 50,000 to be paid by SCAs to NHFDC is 2% P.A and
individual beneficiaries need to pay 5% P.A to SCAs.

The rate of interest for above Rs 50,000 to Rs 5.00 lakhs to be paid by SCAs to
NHFDC is 3% P.A and individual beneficiaries need to pay 6% P.A to SCAs.

II. Deendayal Disabled Rehabilitation Scheme (DDRS):

The umbrella Central Sector Scheme of this Ministry called the "Scheme to Promote
Voluntary Action for Persons with Disabilities" was revised w.e.f. 01.04.2003 and was
renamed as the "Deendayal Disabled Rehabilitation Scheme (DDRS)".

Under Deendayal Disabled Rehabilitation Scheme (DDRS) Vocational Training

Centre projects are given financial assistance (up to 90% of the project cost) for skill up
gradation of PwDs. These are meant for the age group of 15-35 years to provide skills to
enable such persons to move towards economic independence. "Rehabilitation" as "a process
aimed at enabling persons with disabilities to reach and maintain their optimal, physical,
sensory, intellectual, psychiatric or social functional levels". Some of the main components of
rehabilitation are:

i. provision of assistive aids and appliances

ii. education
iii. vocational training
iv. assistance for employment
v. training in or assistance for independent living
III. Skill training through the National Institutes:

The seven National Institutes (NIs) under the administrative control of Department of
Disability Affairs also organize Vocational Training Programmes for the PwDs in their
respective field of disability for appropriate trades.

IV. SIPDA (Scheme for Implementation of Persons with Disabilities Act:

Under this scheme, financial assistance is provided to State Governments and to

autonomous organizations/Institutions under Central or State Governments, for various
activities relating to implementation of The Rights of Persons with Disabilities Act, 2016.
Under this scheme grant-in-aid is provided for the skill development programmes for PwDs
with effect from the year 2013-14.
V. Vocational Rehabilitation Centre for Handicapped:

The Ministry of Labour & Employment has set up 21 Vocational Rehabilitation

Centres for Handicapped (VRCs) at different parts of the country. The main objective of
these centers is to impart non formal vocational training and extend vocational rehabilitation
assistance to PwDs as per their residual capacities with a view to assist them to lead an
independent and productive life in society.

VI. Pradhan Mantri Kaushal Vikas Yojana:

PMKVY is a skill development initiative scheme of the Government of India for

recognition and standardization of skills maintained by Ministry of Skill Development and
Entrepreneurship. This scheme the targets to provide training to 50,000 PwDs from 2016 to
2020.

Reference

1. Shanimon.S The Emerging Development Model in India Differently-Abled

Entrepreneurs, IJSR Publications, Volume 4, Issue 1, January 2014.
2. Base Line Report Employment of Disabled People in India prepared for National
Centre for Promotion of Employment for Disabled People (NCPEDP), February 2009.
3. Reports of WHO, UNDP, UNICEF.
4. The Rights of Persons with Disabilities Act, 2016.
5. Various schemes of NHFDC. Retrieved from http:// www.nhfdc.nic.in/schemes.
6. Pradhan Mantri Kaushal Vikas Yojana. Retrieved from http://www.pmkvyofficial.org.
7. Deendayal Disabled Rehabilitation Scheme. Retrieved from
http://disabilityaffairs.gov.in/content/page/ddrs.php.

ETHICAL ENTREPRENEURS
--Organizational Escalation in India

Dr. T. Lokeswara Rao, Associate Professor & D. Poornima Devi, Assistant

Professor
Department of Management Studies
Sri Vatsavai Krishnam Raju College of Engineering & Technology.
Bhimavaram,W.G.Dt.
Abstract
This paper aims to develop a conceptual framework that examines the Ethical
Entrepreneurs Organizational Escalation in India. Entrepreneurship practitioners now face
more ethical issues every day of their working lives than ever. In addition, factors that
influence of unethical behaviors are explored. It is therefore, recommended that
entrepreneurial organizations should endeavor to go for training on ethical rudiments
irrespective of the circumstances that led them to start business of their own. Majority of
entrepreneurs are following unethical practices in their organizations. Government should
take serious steps for avoiding the unethical practices for public safety.

Keywords: Ethics, Entrepreneurs, Ethical Consciousness, Govt., Unethical Practices.

Introduction
Earlier belief that entrepreneurs are a special creed and are born with special traits,
entrepreneurship can be cultivated through proper training and financial support. An
entrepreneur is a channel who can mobilize different resources and put them to effective use.

Interest in entrepreneurship as a phenomenon rests in the perceived contributions

entrepreneurs make to public policy goals such as economic growth, increased productivity,
job creation, technological innovation, deregulation and privatization, and structural
adjustments or realignments (Gibb 1996; Shane 1996).

Entrepreneurship practitioners in organizations currently face more ethical issues than

ever. Whether they are engaged in planning, organizing, motivating, communicating,
delegating or some other management role, they face the matter of morality; right and wrong,
fairness and unfairness, and justice or injustice which creeps into their decisions, actions or
behaviors. Virtually, issues of ethics always arise in all the decision in contemporary
organizational or business setting (Jamnik, 2011).

This study tries to look at the ethics and entrepreneurial growth of an organization in
India. Ethics and social responsibility are very important values in entrepreneurship; this is,
particularly, essential in decision making process. Ethical conscience guides entrepreneurs to
make responsible, trustworthy and profitable entrepreneurship outcomes. Entrepreneurs are
trying to implement ethical decision making approach in all business decisions.

Nowadays, entrepreneurship is considered as a growth and development force of

organizations and societies. An entrepreneur is a channel who can mobilize different
resources and put them to effective use.

Role of ethics in Entrepreneurship

Ethics have a huge role to play in business as they give a guideline as to which business
practices are socially and morally acceptable and which are not. In cases where there are no
laid down rules as to the right and wrong ways of doing business, Ethics fill in the gap and
give the much needed direction.

It is through awareness of ethics that entrepreneurs desist from engaging in business

practices that lead to loss of human life and human rights, compromise the environment or
bring about gain at the unfair expense of other businesses, employees, consumers, etc, Sound
business ethics benefit to consumer as they strive to direct businesses to be open and honest
to their customers about the product or service that they offer.

Right versus right

Business ethics is not simply a philosophical concept it is concerned with decisions.
It is obviously concerned with right and wrong. This is usually relatively easy to sort out. We
know it is wrong to steal or to kill. More importantly, business ethics seeks answers to real
life problems which often involve conflicts of right versus right and clashes of moral
principles.

Considering the fact that entrepreneurial organization faces many challenges in

upholding ethical management practices, practitioners and managers are expected to embrace
options such as accountability and responsibility, revitalizing the culture of excellence,
encouraging the establishment of ethical organization, orientation and a host of others as
good measures to forestall standard practices in India

Rule Breaking
Entrepreneurs are often characterized by traits such as innovation, independence, and
high risk taking. Invariably, a flair for breaking rules seems to be de rigueur to be innovative
and successful in a venture. Rule-breaking can pay dividends in contrast, the demonstration
of independence that underlies modest rule breaking may help individuals develop a habit of
thinking out of the box and behave in ways that are more innovative to solve problems.
Entrepreneurs who frequently break rules might perceive less danger in a risky decision-
making situation with regard to ethical issues.

However, breaking rules does not necessarily have to be completely negative. Positive
forms include challenging established standards and practices, and bypassing obsolete norms
to improve efficiency.

Unfair Trade Practices

 Any company that participates in unfair trade, including but not limited to coercing
partners, suppliers, or distributors into signing exclusivity agreements, forcing customers or
clients to use unwanted company products or services, or underselling in the market in an
attempt to starve out weaker competition, shall be guilty of anticompetitive practices.

Rise of unethical practices in business

It is observed that non-ethical behavior occurs at all levels in business. Most cases,
fortunately, do not have the magnitude of the scandals seen in the press, but they exist in a
range of forms. Somewhat unfair attitudes are multiplying rapidly in business, especially
when times are difficult. A danger is that people do not even realize their behaviour is
inappropriate. The fading away of norms has perfidious effects. Some managers even believe
that certain dirty tricks are good management practices: delaying payment to suppliers to
improve the cash flow is seen as efficient, even if a different agreement was made.

A breed apart
Entrepreneurs have long been recognized as being a breed apart, in that some of
their attitudes and motivations are thought to differ from those of the population at large.
Successful entrepreneurs have a high propensity to make decisions on their own, to be action-
oriented, to assume risk, and to persevere in the face of uncertainty and adversity. In a word,
they tend to exhibit a high degree of individualism.

Whistle-blowers

Employees who make allegations of illegality or indiscretion against a company are

protected by law and must not be harassed or made to suffer economically or psychologically
for their actions.

Ethical people make unethical choice

Most companies have ethics and compliance policies that get reviewed and signed
annually by all employees. Employees are charged with conducting their business affairs in
accordance with the highest ethical standards, reads one such example. Moral as well as
legal obligations will be fulfilled in a manner which will reflect pride on the Companys
name. Of course, that policy comes directly from Enron. Clearly it takes more than a
compliance policy or Values Statement to sustain a truly ethical workplace. Corporate ethical
failures have become painfully common, and they arent cheap. In the last decade, billions of
dollars have been paid in fines by companies charged with ethical breaches.
Entrepreneurship Development
Entrepreneurship Development is one of the key elements for promotion of micro and
small enterprises, particularly, the first generation entrepreneurs. Entrepreneurship and
resultant creation of employment and wealth is a major mean for inclusive development.
Hence, entrepreneurship development has been one of the priorities in countries, the world
over. Entrepreneurship Development Programmes (EDPs) are conducted through MSME-
DIs, with focus on entrepreneurial development coupled with 4 Specific skills relating to
trades like electronics, electrical, food processing, etc, which enables the trainees to start their
own ventures. The programmes covered include the following:

1. Industrial Motivation Campaigns (IMCs)

2. Entrepreneurship Development Programmes (EDPs)
3 Entrepreneurship Skill Development Programme (ESDPs)
4. Management Development Programmes (MDPs)

Supportive Government Policies

As government is in the lead of the establishment, sponsorship and administration of
most support programmes especially in the developing countries, a proclamation from the
government as it relates to entrepreneurship will go a long way to ensuring the sustainability
and positive entrepreneurial practice. Thus, it will bring economic development through SME
development, job creation as well as wealth creation.

Conclusion
Earlier belief that entrepreneurs are a special creed and are born with special traits,
entrepreneurship can be cultivated through proper training and financial support.
Entrepreneurship practitioners in organizations currently face more ethical issues. Business
ethics seeks answers to real life problems which often involve conflicts of right versus
right. Entrepreneurs who frequently break rules might perceive less danger in a risky
decision-making situation with regard to ethical issues. It is observed that non-ethical
behavior occurs at all levels in business. Entrepreneurship Development is one of the key
elements for promotion enterprises, particularly, the first generation entrepreneurs. Majority
of entrepreneurs are following unethical practices in their organizations. Government should
take serious steps for avoiding the unethical practices for public safety.

References
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Burke, F (2005). Social Ethics. Theological Studies, 66, 137-158.

Kersey, C. (1998), Unstoppable: 45 Powerful stories of perseverance and Triumph from

people, just like you. Naperville, Illinois: Sourcebooks Inc. Landrum, N.E.; Howell, J.P.; and
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Wikipedia, (2007) Business Ethics. Free Encyclopedia.

scu.edu/ethics/practicing/focusareas/business/ethics-human-resources.html accessed on
21/1/2017.

ROLE OF ENTREPRENEURSHIP ON ECONOMIC DEVELOPMENT AND

ENTREPRENEURIAL DEVELOPMENT AND ITS ANTECEDENTS IN INDIA-
A STUDY

Author
*Dr. Y. Ramakrishna Prasad
Professor, Department of Management Studies, GRIET, Hyderabad
Phone No # +91- 09849826538, Email: rkprasady@gmail.com, yrk@griet.ac.in

Abstract: The role of entrepreneurship in economic development varies from economy to

economy depending upon its material resources, industrial climate and the responsiveness of
the political system to the entrepreneurial function. The entrepreneurs contribute more in
favourable opportunity conditions than in the economies with relatively less favourable
opportunity conditions. Now, people have begun to realize that for achieving the goal of
economic development, it is necessary to increase entrepreneurship both qualitatively and
quantitatively in the country. It is only active and enthusiastic entrepreneurs who fully
explore the potentialities of the countrys available resources labour, technology and
capital. Several dynamic forces, such as technological disruption, fluctuating economies or
demographical changes, have brought new opportunities and threats for organizations, and
transformed societies from all over the world. In order to cope with these shifting forces,
governments, public and private organizations, and the public are more and more aware of
the importance of entrepreneurship. Entrepreneurship is a multifaceted phenomenon, being
analysed as a process, a resource or a state-of-being. According to the Schumpeterian view,
the entrepreneurial process constitutes one of the key factors in the economic development of
a country/region. However, researchers have expressed different views about the relationship
between the stages of economic development and entrepreneurship during the time This
conceptual paper emphasis on the growth of entrepreneurship development in India and its
status in promoting economic development of India. Entrepreneurship can play a pivotal role
in giving a boost to the economic development to one of the largest populated countries like
India. Based on the review of literature about the ancient aspects about entrepreneurial
development in India as well as the current trends in growth of entrepreneurship in India.
Data was collected from the secondary source. The outcomes are resultant to find the
development of Indian entrepreneurial economy in comparison with other fast-growing
economies like China and Brazil, its role in providing large scale employment/ self-
employment, and modes of promoting entrepreneurship and entrepreneurship training in
India. It has been concluded that the time is ripe for an entrepreneurial revolution in India and
entrepreneurship provides a great scope for faster development of its economy.

Key words: Entrepreneurship, Economic Development, Innovation, Self-Employment,

Service Sector, Promoting entrepreneurship, entrepreneurial revolution.

Introduction:
Entrepreneurs who are business leaders look for ideas and puts them into effect in
nurturing economic growth and development. They play the most important role in the
economic growth and development of Indian economy. The entrepreneur acts as a trigger
head to give spark to economic activities by his entrepreneurial decisions. An entrepreneur
plays a pivotal role not only in the development of industrial sector of a country but also in
the development of farm and service sector.
 Entrepreneurship is the process of designing, launching and running a new business,
which is often, initially a small business, offering a product, process or service for sale or
hire. The people who create these businesses are called entrepreneurs. Entrepreneurship has
been described as the "capacity and willingness to develop, organize and manage a business
venture along with any of its risks to make a profit". While definitions of entrepreneurship
typically focus on the launching and running of businesses, due to the high risks involved in
launching a start-up, a significant proportion of businesses should close, due to "lack of
funding, bad business decisions, an economic crisis or a combination of these" or due to
lack of market demand.

In the 2000s, the definition of "entrepreneurship" expanded to explain how and why
some individuals (or teams) identify opportunities, evaluate them as viable and then decide to
exploit them, whereas others do not and, in turn, how entrepreneurs use these opportunities to
develop new products or services, launch new firms or even new industries and create wealth.
Recent advances stress the fundamentally uncertain nature of the entrepreneurial process,
because although opportunities exist their existence cannot be discovered or identified prior
to their actualization into profits. What appears as a real opportunity exalted might be a non-
opportunity or one that cannot be actualized by entrepreneurs lacking the necessary business
skills, financial or social capital.

An entrepreneur is an individual who, rather than working as an employee, founds

and runs a small business, assuming all the risks and rewards of the venture. The entrepreneur
is commonly seen as an innovator, a source of new ideas, goods, services and business/or
procedures.

Entrepreneurs play a key role in any economy. These are the people who have the
skills and initiative necessary to anticipate current and future needs and bring good new ideas
to market. Entrepreneurs who prove to be successful in taking on the risks of a start-up are
rewarded with profits, fame and continued growth opportunities. Those who fail suffer losses
and become less prevalent in the markets.

Entrepreneurship is one of the resources economists categorize as integral to

production, the other three being land/natural resources, labour and capital. An entrepreneur
combines the first three of these to manufacture goods or provide services. He or she
typically creates a business plan, hires labour, acquires resources and financing, and provides
leadership and management for the business.
 The term entrepreneur comes from the French word entreprendre, which means to
undertake something. Entrepreneurship is a process which involves all those activities
associated with identifying an opportunity and creating an enterprise to utilise that
opportunity. Joseph A. Schumpeter defined entrepreneurship in 1939, which was considered
as most appropriate. He defined it as entrepreneurship is based on purposeful and systematic
innovation. It includes not only the independent businessman but also company directors and
managers who actually carry out innovative functions. Given the increasing significance and
visible impact of Entrepreneurship in wealth-creation and employment-generation, National
Knowledge Commission considers it critical to Indias growth and development. It has
undertaken this study to explore factors that have advanced Entrepreneurship in India as also
various other factors that could further encourage and facilitate even greater growth.

National Knowledge Commission, 2008 defines Entrepreneurship as follows:

Entrepreneurship is the professional application of knowledge, skills and competencies
and/or of monetizing a new idea, by an individual or a set of people by launching an
enterprise de novo or diversifying from an existing one (distinct from seeking self-
employment as in a profession or trade), thus to pursue growth while generating wealth,
employment and social good. It is proved that there is positive correlation between economic
development, innovation and entrepreneurship (Guin K.K., 2014). Entrepreneurship not
only creates large scale jobs thereby increasing the national income, but also function as a
bridge between innovation and the market (Barot D. H., 2015). Entrepreneurship is also
considered as an important ingredient along with knowledge which differentiates the level of
wealth among rich and poor countries (Nickels W.G., 2004). This is a concept paper which
looks at the growth of entrepreneurship development in India and its present status in
promoting economic development of India.

Economic development is the development of economic wealth of countries, regions

or communities for the well-being of their inhabitants. From a policy perspective, economic
development can be defined as efforts that seek to improve the economic well-being and
quality of life for a community by creating and/or retaining jobs and supporting or growing
incomes and the tax base. Economic development is the process by which a nation improves
the economic, political, and social well-being of its people. The term has been used
frequently by economists, politicians, and others in the 20th and 21st centuries. The concept,
however, has been in existence in the West for centuries. Modernization, Westernization, and
especially Industrialization are other terms people have used while discussing economic
development. Economic development has a direct relationship with the environment and
environmental issues.

Generally, tax authorities will view a person as self-employed if the person chooses to
be recognized as such, or is generating income such that the person is required to file a tax
return under legislation in the relevant jurisdiction. In the real world, the critical issue for the
taxing authorities is not that the person is trading but is whether the person is profitable and
hence potentially taxable. In other words, the activity of trading is likely to be ignored if no
profit is present, so occasional and hobby- or enthusiast-based economic activity is generally
ignored by authorities. Self-employed people generally find their own work rather than being
provided with work by an employer, earning income from a trade or business that they
operate.

Entrepreneurship to have a broader impact on job creation and in promoting

sustainable development, policymakers can enhance the regulatory environment by
addressing regulatory barriers that hinder young entrepreneurs from starting up, introducing
online registration and simplified regulations, minimizing the stigma surrounding business
failure and facilitating restarts. Orienting business development services to provide services
to young entrepreneurs is essential to ensure that they obtain adequate support. The public
and private sectors, as well as other relevant partners, can come together to improve
education and skills development, and better align the skills acquired by young people with
labour market demands. Building the capacity of teachers to inculcate entrepreneurship skills
among students is critical.

Literature Review
The purpose of the literature review on entrepreneurial development is to identify the
related facts in the research work that were determined by other authors through their
research in the similar field of work and to know the outcome of their research. The literature
reviews will throw light on the broad spectrum of entrepreneurial activities in India and other
countries.

Conventional entrepreneurship has been linked to the discovery of opportunities,

innovation and the creation of new business ventures and is implicitly associated with the
pursuit of commercial objectives separate from, and perhaps in conflict with, ethical
behaviour (Clarke and Holt 2010; Sen 1993b). In contrast, the emergence of social
entrepreneurship, with its focus on the innovative use of resources to explore and exploit
opportunities that meet a social need in a sustainable manner (Sud et al. 2009, p. 203),
presents a more ethical variant of entrepreneurial activity, with an explicit social change
agenda (Branzei 2012). Social entrepreneurship offers solutions to a range of social problems
(Nicholls 2006) and is acknowledged to be an effective mechanism for generating economic,
social and environmental value (Acs et al. 2013; Austin et al. 2006; Murphy and Coombes
2009). Social entrepreneurship has also been associated with wider social change processes
(Acs et al. 2013; Alvord et al.2004; Mair et al. 2012a, b; Mair and Mart 2009; Steyaert and
Hjorth 2006); however, we know little about how social entrepreneurship leads to social
change.

Entrepreneurial competencies have been identified as a specific group of

competencies relevant to the exercise of successful entrepreneurship. Such entrepreneurship
is often associated with the development of small and new businesses (e.g. Colombo and
Grilli, 2005; Nuthall, 2006), although there is increasing interest in corporate
entrepreneurship and intraprenuership (e.g. Hayton and Kelley, 2006; Sathe, 2003; Zahra et
al., 1999). In a study into the learning behaviour of small firms, Chaston et al. (1999) looked
at how differing modes of behaviour relate to, and, impact on organisational capability and
found that despite the extensive literature which exists relating to organisational learning,
there were few attempts to operationalise the construct through the application of quantitative
techniques, especially in the small firm sector. Research to determine whether identifiable
relationships exist between the performance of the firm, the learning mode of the organisation
and organisational competence does not provide clear statistically significant relationships
and further work is clearly needed (Chaston et al., 1999). Scholars researching in the field of
entrepreneurship distinguish between managerial competencies and entrepreneurial
competencies (Lerner and Almor, 2002; Chandler and Hanks, 1994a, b, c). Some suggest that
entrepreneurial competencies are needed to start a business, while managerial skills are
needed to grow the business, although competence in entrepreneurship requires competencies
in both areas (Man et al., 2002).

Let us regard things in retrospection. When human society entered the 20th century
the spotlights were on the big things- big used to be beautiful and respectable, or the
political establishment. Big was the future. It provided a scale economy based on mass
production which brought welfare to the people, if not exactly wealth. In this way, the
Western democracies kept the ordinary man in his place. Those times bore their own
professional elite: the managers (Burns, 2011).
 In most developed economies, the first two post-war decades represented a success
for the great enterprise, considered the only one capable to conform itself to the code of the
industrial society, expressed in six essential principles: standardization, specialization,
synchronization, concentration, maximization and centralization. The small enterprise seemed
doomed to remain the Cinderella of the economies, maybe even a brake on their way towards
development. At the beginning of the 1970s, the literature started to refer to the role of the
SMEs in the economy. There was ample evidence that economic activity moved away from
large firms to small firms in the 1970s and 1980s. But did this mean that the small
companies, a David of business, had triumphed over the Goliath of the big enterprises? In act,
the small companies, the new companies and the entrepreneurs had always been there.
Therefore, in the latter part of the past century the perception began to change. Schumacher
(1973) asserted that the giant organizations and the growth of specialization would lead to
economic inefficiency at the macroeconomic level, to pollution and to improper working
conditions and offered as an alternative a system of intermediary technologies based on small
production units. It seemed that the orthodoxy of the big enterprise had not brought mankind
the economic success it had expected (Burns, 2011). People started to value the importance of
the SMEs. Around the 1980s the special contribution that the SMEs brought to the labour
market began to be much more appreciated as more than 80% of all new jobs were created by
small enterprises (below 500 employees) in the India. Since then this pattern has been kept
until today. In India, the SMEs generate more than a half of the gross domestic product
(GDP) and more than 50% of all the exports are carried out by companies with less than 20
employees. As the clear majority of companies (80-90%) are micro-enterprises, they have
reduced the bureaucracy a lot to make sure that the requirements of the SMEs have been
taken into account.

Entrepreneurship should do with individuals, people with their own traits and actions
(roles). Various roles of the entrepreneur can be distinguished in the business world. To
express the connection between entrepreneurship and economic growth and development,
two major roles of the entrepreneur can be singled out. The first should do with new entry
and the second with newness in general. Firstly, the entrepreneur is the founder of a new
business: . . . someone who creates and then, perhaps, organizes and operates a new business
firm, whether there is anything innovative in those acts. Secondly, the entrepreneur plays a
more general innovative role in economic life: ... the entrepreneur as the innovator as the
one who transforms inventions and ideas into economically viable entities, whether or not,
while doing so they create or operate a firm (Wennekers and Thurik, 1999). Thus, newness
through start-ups and innovations are some of the most relevant factors linking
entrepreneurship to economic growth.

Methodology & Analysis

For analysis, the articles were categorized under the following headings which made
the analysis easier. The categories were 1) Entrepreneurship in India, ahistorical perspective,
2) Entrepreneurship in India compared with other fast-growing economies like China and
Brazil, 3) Entrepreneurship- provider of large scale employment/ self-employment, 4)
Growth of Service Sector, 5) The role of MSME in economic development and

Data Reviewed for Inference

Emerging Economy Entrepreneurship and the International Domain
Entrepreneurship in emerging economies is not an isolated domain. Instead, it is part
of the broader international business domain that helps to identify other relevant issues. For
example, more and more emerging economy firms go international soon after their founding
(Ahlstrom, Bruton, &Yeh, 2007; Zucchella, Palamara, & Denicolai, 2007). The nature of
these entrepreneurial firms local market that encourages them to seek out other markets
should be explored. For example, these firms often internationalize to either gain market
share or to gain knowledge; which of these two is the principal motivator for entrepreneurial
firms or how the two motivations impact each other merits examination.

There is also a need to understand the impact of cultural and institutional differences
between the country of the entrepreneur and the country where the entrepreneur is doing
business. For example, the cultural distance between countries and how that impacts the
expansion of entrepreneurial firms should be explored.

It is important to not stop at the firm- and country-level effects in examining

entrepreneurship in emerging economies. Country effects are important, yet often overlooked
are the countryfirm interaction effects. The interaction effects would include how firms
uniquely benefit from going international in that type of country. For example, Middle
Eastern entrepreneurs are experiencing some success with investment in the Moslem
countries of Southeast Asia such as Malaysia and Indonesia. Similar religious and cultural
orientation would appear to provide a variety of benefits apart from standard cost savings or
new marketing opportunities that emerge.
 A third aspect of examining international dimensions of entrepreneurship in emerging
economies is seeking to better understand born global firms from the developing worlds.
Born global firms are firms that are international from their very beginning. These firms are
not unlike domestic only firms as they must consider all the difficult questions entrepreneurs
have about financing, managing, and strategizing within the organization.

But the born global firms face a far more complex analysis since the new firms are
crossing national borders. By crossing boundaries, the entrepreneurial firm faces constraints
but the firm also obtains opportunities to enhance market value based on the strategic
deployment of firm resources and assets, as well as intangible assets gained by going
international. For firms from emerging economies that are often facing constrained resources,
the act of going international would appear to provide unique challenges that need greater
understanding.

Entrepreneurship in India Compared with Other

Fast Growing Economies like China and Brazil Indian economy has become the
second fastest growing economy in the world even during the recent world-wide recession
(Kular I.K.A.S.B.J.S.). It is expected to be the fastest growing economy in the years to come.
Small and medium enterprises are considered world-wide as the promoters of economic
development. In India, they constitute 95% of the industrial units, accounts for 40% of the
total industrial production and 34% of the exports. They provide employment to about 312.5
lakh people in 128.5 lakh units as on 2006- 07(Kular I.K.A.S.B.J.S.). China gives more
importance to SMEs than India, where over 68% of Chinas exports come from small and
medium sector. The growth of SMEs in China has been phenomenal that in the last 20 years it
has created more SMEs than the total number of SMEs in US and Europe combined. In the
case of Brazil, another fast-growing economy, SMEs constitute 96.8% of the registered
business employing 59% of the active population (Kular I.K.A.S.B.J.S.). This shows that
India

Economic Development and Institutional Theory

Similar institutions and resources can have different effects in different contexts.
Thus, there is also a need for a more subtle way to analyse how contextual variables differ in
emerging economies and to what degree they shape entrepreneurial goals, behaviours, and
effectiveness of actions. A theory is more powerful if its applicability is established in
different settings. The ability to connect established theories in new and rich manners offers
the potential for significant new insights. Emerging economies are a unique environment that
offers the ability to obtain fresh insights to expand theory and our understanding of it by
incorporating more contextualized considerations. To illustrate the need for a richer
theoretical development, institutional theory has been recognized for its ability to provide
insight to emerging economies (Hoskisson, Eden, Lau, &Wright, 2000). However, the exact
nature of institutional forces in emerging economies is not yet well conceptualized. The most
common model used by researchers is Scotts (2002) formulation of institutional theory.
However, some applications of this model, even in leading journals, are somewhat unusual.
In addition, in sociology this model is somewhat controversial. Other slightly different
formulations exist in economics (e.g. North, 1990, 2005) and political science (Patriotta &
Lanzara, 2006). Thus, there is a need to more fully develop a conceptualization of
institutional theory. The richness of emerging economies has the potential to allow that to
occur. It was noted earlier that too often, culture differences are given as the cause of any
differences from mature economies that are found. But there is a rich set of institutions that
could be causing any difference. Therefore, there is a strong need to better understand the
impact of those different institutions on entrepreneurs and entrepreneurship in emerging
economies. For example, the impact of legal institutions has been shown to have an impact in
the finance domain (La Porta, Lopez-de Silanes, Shleifer, & Vishny, 1998, 2000).
Entrepreneurship should explore if legal institutions play a similar role in the development
and success of new ventures emerging economies.

A desired outcome of better theory development is better application of the theory.

The better understanding of the role of institutions has the potential to not only shape the
understanding of institutional theory in emerging economies but also in mature economies. It
is surprising, but rarely has previous research examined the impact of institutions in shaping
entrepreneurial actions in developed economies. If institutions have the explanatory power
expected then it would imply that researchers in these developed economies should be
including institutions in their research in a manner no different than if they were examining a
topic in China or India. As a result, emerging economies can help researchers to develop
theory in a way so that they can better understand how to incorporate the theory in mature
economies.

Role of MSMEs in Indian Economic Development

In India, small enterprises are now included in the category MSME, Micro Small and
Medium Enterprises. These small enterprises are equated with entrepreneurship and their
growth is considered as growth of entrepreneurship which in turn will facilitate economic
development. The MSMEs generate highest employment per capita investment as well as it
will reduce rural urban migration by providing employment in the village itself (Kular
I.K.A.S.B.J.S.). It is very easy to start an SME as compared to large industry. Analysis of
census data on SMEs have shown that an investment of Rs.0.72 lakh is required for creating
one employment in the MSME sector as compared to Rs.5.56 lakh in the large-scale sector
(Kular I.K.A.S.B.J.S.), So employment generation is more in the MSME sector.

Small enterprises offer cost effective and customised products to niche markets and
provide employment to local talents [Majumdar S.]. They are a source of products for large
organizations and it is very easy for small enterprises to adapt to changing environment
[Majumdar S.].

Like other small businesses in the world, small enterprises in India face challenges in
their activities. Then there are problems they face which are unique to India. Challenges like
efficiency and global reach can be overcome through embracing information technology.
Those related to risk taking, innovation and proactiveness can be met by encouraging
entrepreneurship (Patricia R Todd R.G.J., 2007). India has abundant unskilled labour,
widespread underemployment while it lacks skilled labour, enterprising and experienced
entrepreneurs and managerial talent. By promoting small enterprises, India can overcome
these adversities and promote a democratic socialistic society and prevent concentration of
economic power (Barot D. H., 2015). Due to liberalisation and globalisation, the small
enterprises in India began to face competition from foreign companies. Due this intense
competition, these domestic firms have to change their ways and improve their efficiency in
order to survive (Patricia R Todd R.G.J., 2007). The recent advances in the IT front and
communication infrastructure have helped the Indian SMEs to cater to the global markets.

Encouraging and supporting entrepreneurship, encouraging innovation and providing

necessary finance are necessary for Indian SMEs to go globally (Patricia R Todd R.G.J.,
2007). According to the National Sample Survey of 1999-2000, the total workforce as on 01-
01-2000 was 40.6 crores. Only 7% of the workforce were employed in the organized large-
scale sector. 93% were employed in the unorganized small-scale sector. The unorganized
sector employed 36.9 crores people during 2000. This data shows the importance of
entrepreneurship in the economic development of a developing country like India (Barot D.
H., 2015).

Findings
 Even though India had a glorious past in entrepreneurship, two centuries of British
rule had demolished it and India became a poor less developed country at the time of
Independence with a large population and rampant unemployment. After independence, the
Government of India had come out with Industrial Policy Resolutions and Five-Year Plans to
give boost to industrialisation and promote entrepreneurship. But during the initial four
decades, it did not produce the desired result in the case of entrepreneurship and an
entrepreneurial culture was not evolved in the country. Thrust was not given to
entrepreneurship as it was an engine of economic development.

But, things changed from 1991 onwards due to liberalisation and when the New Small
Enterprises

Policy was announced in the year 1991. The Government has realised the importance
entrepreneurship has got in the economic development of the country. All the advanced
countries like US, Japan etc. achieved progress due to a vibrant entrepreneurship culture.
When compared with other fast-growing economies like China and Brazil, India still has to
go long way in the entrepreneurial front.

All over the world, entrepreneurship is associated with small businesses. In India,
small enterprises which falls in the category MSME is generating highest employment per
capita investment. It is providing about 93% of the industrial employment. Entrepreneurship
development is one of the mechanisms adopted by the government of India for creating large
scale employment. MSME Act was passed in 2006 to provide necessary assistance to
entrepreneurs and small businesses. A separate ministry was formed to look after the affairs
of MSME. Government is providing institutional, financial and fiscal support to
entrepreneurs. Government has also realised the importance of entrepreneurship training,
which is equally important for the promotion of entrepreneurship. To enhance the skill set of
people a comprehensive policy on National Skill Development and Entrepreneurship was
formulated in 2015. A separate ministry is also formed for Skill Development and
Entrepreneurship Development. So, time is ripe for an entrepreneurial revolution in India. An
entrepreneurial culture will slowly develop which will make India an advanced country.

Conclusion
India is one of the fastest growing economies in the world. But it is plagued by an
ever growing population and unemployment. India has gone through the Agricultural
revolution, White revolution, Blue revolution etc. An entrepreneurial revolution is due which
will take India in comity with the developed nations. Only an entrepreneurial awakening will
make India to grow on a much faster rate and become a developed nation at least by 2050.
Government initiatives like Make in India, Stand Up India, PMKVY are going to jump
start the entrepreneurial revolution and mind set.

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ROLE OF PERSONALITY AND LEADERSHIP TRAITS IN ENTREPRENEURSHIP
G. VENKATESWARLU
Asso. proff in Psychology.
V.R.S&Y.R.N College, Chirala.

PVS CHOWDARY
Asso. Professor in Physics
VRS & YRN College, Chirala

The concept of Entrepreneurship is most influenced factor of the national economic

development and growth. Innovative nature is developed globally by the name of
Rationalization, privatization and Globalization and it can influence the sustainable economic
growth due to the technical relation between the nations. The entrepreneurs with their vision
and innovative qualities lay down a strong foundation for sustainable growth of the various
sectors like agriculture, industry, technology, education, trade and services. Various factors
contributing to economic development and labor, capital, natural resources, technology and
entrepreneurship. Entrepreneurship plays a key role in the process of development.
Entrepreneurship is depend upon production, marketing, financing, pricing and personnel
relations. Mostly depends upon effective policies and their efficient implementation.

Definitions of Entrepreneur:

The concept of entrepreneur varies from country as well as from period to period and
the level of economic development thoughts and perceptions. The word entrepreneur is
derived from the French word Entrepreneur Which means to undertake i.e the person
who undertakes the risk of new enterprise.

Adam Smith described entrepreneur as a person who only provides capital without taking
active part in the leading role in enterprise.

Jean Baptiste say opined that the entrepreneur was a person endowed with the qualities of
judgment, perseverance and a knowledge of the world as well as business. The entrepreneur
shifts economic resources out of an area of lower and into an area of higher productivity and
greater yield.

Karl Marx regarded entrepreneur as a parasite.

Noah Webster thinks entrepreneur is one who assumes the responsibility of the risk and
management of business.

Peter F. Drucker defines an entrepreneur as one who always searches for change, respond to it
and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, that means
by which they exploit change as an opportunity for a different business or service.

Akhouni, M.M.P describe entrepreneur as a character who contributes, innovativeness,

readiness to take risk, sensing opportunities, identifying and mobilizing potential resources
concern for excellence, and who is persistent in achieving the goal.

Hennry Ford who created the manufacturing miracle that launched a modern era in industry.
Entrepreneur can do anything with passion and enthusiasm. Enthusiasm is the yeast that
makes his hopes rise to the stars. Enthusiasm is the spark in his eye, the swing in his gait, the
grip of his hand, the irresistible surge of his will and his energy to execute his ideas.
Enthusiasts are fighters, they have fortitude, they have strong qualities.

Qualities of entrepreneur:
 A true entrepreneur besides possessing functional qualities, must also process in a
broad personality which help in developing initiative and drive to accomplish great task and
face challenges squarely.

James J. Berne has stressed the following qualities of a good entrepreneur:

1. He is an enterprising individual, energetic, hardworking, resourceful, aware of new

opportunities and able to adjust himself to changing conditions with ease and willing
to assume risk involved in change.
2. He is interested in advancing technologically and in improving the quality of his
product or service
3. He is interested in expanding the scale of his operations by reinvesting his earnings.
4. He visualizes changes and adapts to changing conditions.
5. He is a firm believer in planning and systematic work.

6. He works for the society at large and for the good of his fellow-beings.

Psychologists View:

Among psychologists, Frank young describes an entrepreneur as a change-agent. K.L.

Sharma maintains that entrepreneurs are men who exhibit qualities of leadership is solving
persistent professional problems; but those persons likewise demonstrate eagerness to seize
unusual opportunities. They have a business gamblers itch. T.v rao and Udai Pareek describe
entrepreneurship as a creative and innovation response to the environment. The entrepreneur
is goal-oriented rather than means-oriented. He must not only have a high capacity of risking-
taking but must also have a high capacity of risk-sustaining which is a function of high
degree of self-confidence.

Joseph Schumpeter states that the entrepreneur is mainly motivated and driven by
three things:

1) The dream and the will to found a private kingdom.

2) The will to conquer.
3) The joy of creating.

J. Schumpeters formulation can be translated as:

1) The desire for power and independence.

2) The will to succeed.
3) The satisfaction of getting things done.
 According to him, money is not what ultimately motivates the entrepreneur
Entrepreneurs, according to Schumpeter, are certainly not economic men in the theoretical
sense.

According to David McClelland, entrepreneurship has to do with an individuals so

called need for achievement. He identified three features of entrepreneurs that were related to
their need for achievement:

1) Desire to accept responsibility for solving problems, setting goals and reaching the goals.
2) A willingness to accept moderate risks.

3) A desire to know the outcomes of their decisions. It was widely believed that a high
achievement motivation has a strong likelihood of predicting entrepreneurial behavior.
Individuals with high achievement motive tend to take keen interest in situations of risk,
desire for responsibility and a desire for concrete measure of task performance.

Motivational entrepreneurs:

Motivation is the force that influences the efforts of the entrepreneur to achieve his
objectives. An entrepreneur is motivated to achieve or prove his excellence in job
performance. He also motivated to influence others by demonstrating his power, thus
satisfying his ego.

Pure entrepreneur:

A pure entrepreneur is an individual who is motivated by psychological and

economical rewards. He undertake an entrepreneurial activity for his personal satisfaction in
work, ego or status.

Induced entrepreneur:

This entrepreneur is one who is induced to take up an entrepreneurial task due to the
policy measure of the government that provides assistance, incentives, concessions and
necessary overhead facilities to start a venture. Most of the entrepreneurs belong to this
category and enter business due to financial, technical project is provided package assistance
to his project. Today, import restrictions and allocation of production quotas to small units
have induced many people to start a small-scale industry.

Motivated entrepreneur:

New entrepreneurs are motivated by the desire for self-fulfillment. They come into
being because of the possibility of making and marketing some new products for the use of
consumers. If the product is developed to a saleable stage, the entrepreneur is further
motivated by reward in the in term of profit.

Spontaneous entrepreneurs:

These entrepreneurs start their business out of their natural talents. They are persons
with initiative, boldness and confidence in their ability which motivate them to undertake
entrepreneurial activity. Such entrepreneurs have a strong conviction and confidence in their
ability.

Entrepreneurial skills:

1) Creative problem solving.

2) Persuading.
3) Negotiating.
4) Selling.
5) Proposing.
6) Holistically managing business/project/situations.
7) Strategic thinking.
8) Intuitive decision making under uncertainty.
9) Networking.

Leadership is the capacity to frame plans which will succeed and the facility to
persuade others to carry them out in the face of all difficulties

Strategic Leadership:

This style of leadership analyze the current situations, decide on strategies and put
those strategies into action and evaluation or modify if changes are needed in strategies.

Transactional Leadership:

Transactional leadership focus on tactical issues, daily affairs of short term goals,
maintain human relations and fulfill role expectations by striving to hole effectively.

Visionary Leadership:

Characteristics are mostly influenced are innovative, whole system thinkers,

conventional through in their efforts. They have advance planning, highly professional with
little supervision, flexibility, rapid change, innovation, complexity and optimism about the
future.

Charismatic leader create a good atmosphere of change and they have an ability to
communicate complex ideas and goods in clear, compelling ways ,so that everyone can
understand and identify with their message, they inspire to the followers.
Leadership traits influenced in entrepreneur:

The following leadership traits mostly influenced in entrepreneur are

1) Decision making. 2) Leading by examples. 3) Setting standards. 4)Multi-tasking.

5) Building Relationship. 6) Creativity. 7) Dedication. 8) Commitment. 9) Mission. 10)
Vision. 11) Resolving conflicts. 12) Team player. 13) Approachable. 14) Approachable. 15)
Integrity. 16) Trust. 17) Passion. 18) Compassion. 19) Capability. 20) Involvement. 21)
Presence of mind. 22) Energy. 23) Clarity of thoughts.24) Patience. 25) Daring to dream.
26) Sincerity. 27) Trust. 28) Honesty.

Roles of personality traits in an entrepreneurship:

Personality is defined as the whole characteristics of the individual. Personality is the

dynamic organization with in the individual of those psycho physical systems that are
determine his characteristic behavior and thought. Personality traits mostly influenced in
Entrepreneurship .They are

1. Outgoing:
It means entrepreneur have the warm hearted, easy going and participating nature.

2. More intelligent:
Entrepreneur have Abstract thinking, brightness in behavior.

3. Emotionally stable:
It means mature in nature, faces reality and calm.

4. Dominant:
This trait is more influence on entrepreneur they have aggressive, stubborn and
competitiveness.

5. Happy.go.lucky:
He is enthusiastic in nature of work.

6. Conscientious:
Persistent, moralistic and staid behavior.

7. Venture some:
Uninhibited, socially bold.

8. Tender-hearted:
Sensitive, clinging and overprotected.
9. Trusting:
Accepting conditions.

10. Practical:
Practical in nature.

11. Forthright:
Unpretentious, genuine but socially clumsy.

12. Self-assured:
Secured, placid, complacent.

13. Conservative:
Respecting traditional ideas.

14. Group-dependent:
Joiner and sound follower.

15. Controlled:
Socially precise, exercising will power and compulsive.

16. Relaxed:
Tranquil, unfrustrated and composed.

Entrepreneurship plays an influential role in the economic growth and standard of

living of the country as a startup founders or small business owners, can identified various
sectors needed the startups. The below futures of aerospace, agriculture, artificial intelligence,
financial services, healthcare, manufacturing, technology ,transportation and logistics, virtual
reality, and augmented reality.

Several studies prove the existence of a relationship between entrepreneur personality

traits and firms performance. Personality traits can be correlated with start-ups
innovativeness .Entrepreneurs plays a crucial role in managing them. Their personality
strongly influenced business decision. The main personality traits we consider are narcissism,
the big five (i.e. extraversion, agreeableness, conscientiousness, openness to experience) and
locus of control.

ROLE OF ENTREPRENEURSHIP EDUCATION

IN NURTURING POTENTIAL ENTREPRENEURS
TO FUEL THE ECONOMIC GROWTH ENGINE
 *K. Sivaji Ganesh, M.B.A, M.F.T, M.Phil.
**Prof. G. V. Chalam, M.Com., L.LM., M.B.A., Ph.D.
__________________________________________________________________________

The success of the young entrepreneur will be the key to India's

transformation in the new millennium.
Dhirubhai Ambani
Former Chairman, Reliance Industries Limited

Abstract
Entrepreneurship education is extremely important from the national point
of view as it promotes job creation and ensures economic development.
Entrepreneurship education in India has gained momentum in the recent
past but it is not free from deficiencies. There needs to be restructuring of
pedagogy to suit the native requirements if at all India wants to nurture a
pool of talented entrepreneurs who can contribute to economic growth.
This paper attempts to present the role of entrepreneurship education in
augmenting economic growth of a nation, the trends in and the challenges
faced by entrepreneurship education in India. If entrepreneurship
education in India cannot completely remove the major hindrances in the
pursuit of economic development and employment, at least it can make a
fine restart. The Government also needs to play their part in encouraging
entrepreneurship education directed at nurturing entrepreneurial
competencies and formulating favorable policies to reinforce the
entrepreneurial ecosystem in the country.
Key Words: Entrepreneurship, Economic development, Entrepreneurship education

Introduction
With the globalization as the order of the day, entrepreneurship has been receiving
accolades alike from government as well as educational institutions. Changes in the global
economy have led to fewer job avenues for students, which made the government to develop
plans to foster creativity among students through entrepreneurial activities and programs.
Entrepreneurship education in India has gained momentum in the recent past as it may help
students to hone up their knowledge and skills, which in turn could benefit them to begin
their start-ups.
___________________________________________________________________________
__

*Ph.D. Scholar, Department of Commerce and Business Administration, Acharya Nagarjuna

University, Nagarjuna Nagar, Andhra Pradesh.
**Professor, Department of Commerce and Business Administration, Acharya Nagarjuna
University, Nagarjuna Nagar, Andhra Pradesh.
Entrepreneurship education is extremely important from the national point of view as
it stimulates innovation, promotes job creation and ensures economic development. To
achieve this mission, teaching pedagogy of entrepreneurship education should be appropriate
and relevant enough to enable the learner to acquire knowledge, develop creative talents and
managing skills of an enterprise. However entrepreneurship education in India is not free
from deficiencies. There needs to be restructuring of pedagogy to suit the native requirements
if at all India wants to nurture a pool of talented entrepreneurs who can contribute to
economic growth.

The objectives of this paper are: to understand the role of entrepreneurship in

economic development, to present the role of entrepreneurship education in augmenting
economic growth of a nation, to analyze the trends in entrepreneurship education in India, to
assess the challenges faced by entrepreneurship education in India and to suggest measures
for the improvement of entrepreneurship education in India. The present paper makes use of
qualitative literature to understand the pertinent concepts undertaken for the study and to
arrive at drawing suggestions and conclusions.

Entrepreneurship
Entrepreneurship is a derived from the French verb entreprendre, meaning to
undertake, to attempt, or to adventure. It is the process of giving individuals the prospect that
enables them to identify profitable opportunistic ventures and the needed application of
knowledge, skills and attitudes to initiate action to enter into the venture (Jones & English,
2004). Entrepreneurship is dealing with uncertainty, making a distinction between risk, which
can be calculated, and uncertainties which cant be overcome (Chandler,
1990). Entrepreneurship as a systematic innovation consists of purposeful and organized
search for changes, and systematic analysis of the opportunities such changes might offer for
economic and social innovation. Entrepreneur is a person who is willing to risk his capital
and other resources in new business venture, from which he expects substantial rewards if not
immediately, then in the foreseeable future (Peter Drucker, 1985). Entrepreneur is the bearer
of the mechanism for change and economic development, and entrepreneurship as the
undertaking of new ideas and new combinations that is innovations (Schumpeter, 1934).

Role of Entrepreneurship in Economic Development

Entrepreneurs contribute to economic development in terms of job creation, innovation

and external income generation depending upon priorities and different stage of market
reform (Small bone & Welter, 2001). The impact of entrepreneurship on employment is found
to be high in firms with less than twenty employees. Those firms have great potential for
future economic development. Economic policy changes should be precisely made to boost
entrepreneurship (Carland & Carland, 2004). Entrepreneurship has an important role to play
in fostering from a predominantly traditional / agrarian economy to modern economy. With
innovation driven growth, productivity is increased in advanced countries. Self-employment,
startup and credit market determine quantity and quality of entrepreneurship and low
entrepreneurial activity contribute to economic stagnation and even developmental gap
(Naude, 2008). Some of the benefits that the Entrepreneurs contribute to the economic
development are presented here under.
An entrepreneur provides employment opportunities to a large number of people thus
remove unemployment problem.
Entrepreneurs to avail the incentives granted by the government establish industries in
backward and rural areas. In the process regional disparity is removed and regional
development is emphasized to help in improving the standard of living of the people
residing in suburban and rural areas by providing employment and income.
Entrepreneurs help to mobilize and utilize local resources like small savings and
talents of acquaintances, which might otherwise remain idle and unutilized. Thus they
help in effective utilization of resources.
Entrepreneurs reduce the pressure on the countrys balance of payments by exporting
their goods. They earn valuable foreign exchange through exports.
Entrepreneurs produce a wide range of products required by consumers. They meet
the demand of the consumers without creating a shortage for goods.
Entrepreneurs help in the development of the society by providing employment to
people and encourage democracy and self-governance.
Entrepreneurs raise money for running their business through shares and debentures.
Trading of shares and debentures by the public with the help of financial services
sector leads to capital market growth.
The infrastructure development of any country determines the economic development
of a country. Entrepreneurs by establishing their enterprises in rural and backward
areas influence the government to develop the infrastructure of those areas.

The Indian Scenario

Modernization is one area that is witnessing development of entrepreneurship in the regional
areas in the country. Due to financial constraints and competition in the metro cities,
entrepreneurs are setting up industries in Tier II cities. Some State Governments like Kerala,
Maharashtra and Tamil Nadu are offering schemes/incentives for setting up of SMEs in Tier
II and III cities. The growth of businesses in these smaller towns is not only providing several
public benefits like better transportation, health facilities, education etc., but also promoting a
balanced development in the country. This has motivated more entrepreneurs setting up base
in their hometowns due to lower costs and affordable talent driving investor attention and
incubation centers to these cities too. Today, entrepreneurial driven economy is the answer to
better standard of living as it drives innovation in manufacturing of goods and services
leading to availability of goods at lower costs making them more affordable. These are for
consumption within the country and hence will lead to growth in the national income and
invariably reduce our import dependency making the economy stronger (Ajai Chowdhry,
2015).

Entrepreneurship is getting importance as the current economic situation demand job

providers to have a dominant role in the nations economic development as India is struggling
to provide job and income security to its citizens. Entrepreneurship assumes significant role
in the global as well as domestic economy by industrializing rural and backward areas, as a
supplier of input to large industries, creating employment opportunities. It is key driver to
transform agrarian economy into industrial economy. This is vital for India, as its 31% of
population resides in rural areas that are devoid of basic amenities forcing them to migrate
from rural areas to urban areas. Despite the importance of entrepreneurship environment for
venturing into it is not so favorable in India even though it has improved significantly (Amit,
2014). A study of Entrepreneurial framework condition in India proves that there are some
loose ends that are to be fixed up for realizing the benefits of entrepreneurship to the fullest
extent (See Table 1).

Table 1 Entrepreneurial framework condition in India

Strengths Weaknesses

Education and training Emphasis on entrepreneurship is lacking in

Large pool of manpower. the education sector.
Strong educational base in the country. Education is not practice-based.
High quality management education which can Poor literacy rates in the country.
be branched out to entrepreneurship. Poor quality of school education.
 Cultural norms Entrepreneurship is not considered a high
Hardworking and innovating Indians. status career in India.
Entrepreneurially oriented communities in the Indians are risk averse.
states of Rajasthan (community: Marwaries, Lack of awareness of entrepreneurship as a
Sindhies) and Gujarat. career.
There is change in perception, entrepreneurship Entrepreneurial spirit lies dormant.
is gaining respect. Lack of support in non- business families.
Greater awareness of opportunities amongst Succeeding generations tend to follow earlier
present generation. generations; hence secured employment is
the first choice.
Entrepreneurial capacity Entrepreneurial potential is not nurtured in
Large number of NGOs facilitates the country.
entrepreneurship. Fear of failure.
Good industrial base in the country makes There needs to be greater awareness about
people entrepreneurial. entrepreneurship.
Government policy Too many government controls.
The countrys liberalization policy in the early A more proactive role of the government is
90s has established the governments role of required.
being viewed as a facilitator rather than a Too many laws regulating the starting and
provider of job. running of business.
Labour policy on wages is conducive to small Multiple legislations on every issue.
business. Reforms need to continue and further
reforms required.
Social status and esteem Well documented and published success
Publicity for success stories like Infosys and stories could help in changing some negative
Wipro. perceptions.
Low manpower cost is a big advantage.
Source: S. Vaidya (2014). Developing Entrepreneurial Life Skills, Springer Briefs in
Education.

Entrepreneurship Education
Entrepreneurship education includes all activities aiming to foster entrepreneurial
mindsets, attitudes and skills and covering a range of aspects such as idea generation, start-
up, growth and innovation (Fayolle et al., 2009).

Entrepreneurship education was pioneered by Shigeru Fij II, who started teaching in this field
in 1938 at Kobe University in Japan. Courses on small business management were started in
the 1940s and Myles Mace introduced the first course in entrepreneurship in US in 1947 at
Harvard Business School. Only half a century later this phenomenon did gain a more
universal recognition (Alberti et al, 2004). Entrepreneurial education has seen worldwide
exponential growth in higher education institutions (Kuratko, 2005). Entrepreneurship
courses are taught at nearly every AACSB (American Assembly of College Schools of
Business) accredited institutions. By the year 2001, it was offered at around 1200 business
schools only in United States (Katz, 2008).

The objectives of entrepreneurship education as predicted by Osuala (2010) are:

To provide meaningful education for youth to make them self-reliant and

subsequently encourage them to be self-independent
To provide graduates with the training and support necessary to help them establish a
career in small and medium size business.
To provide graduates with training skills that will make them meet the manpower
needs of the society.
To provide graduates with enough training in risk management to make uncertainty
bearing possible and easy.
To stimulate industrial and economic growth of rural and less developed areas.
To provide graduates enough training that will make them creative and innovative in
identifying new business opportunities.
To provide small and medium sized companies with the opportunity to recruit
qualified
graduates who received training and tutoring in the skills relevant to management of
the business.
Understanding the benefits related with entrepreneurship education, many researchers
are now shifting their attention to the study of economic development through
entrepreneurship education (Haveman & Habinek, 2012). Today entrepreneurial education
has become an important part of both industrial and educational policy in many countries
(Hytti & OGorman, 2004). Entrepreneurship contributed to the creation of 27 million jobs in
the United States between 1980 and 1995 (Sexton & Smilor, 1997). The self-employment
intentions among students of institutions of higher learning could be increased through
entrepreneurship education and training programs (Tkachev & Kolvereid, 1999). The most
common reason that researchers and experts promote entrepreneurial education is that
entrepreneurship is seen as a major engine for economic growth and job creation (Wong et
al., 2005). Entrepreneurial education is also frequently seen as a response to the increasingly
globalized, uncertain and complex world we live in, requiring all people and organizations in
society to be increasingly equipped with entrepreneurial competencies (Gibb, 2002). Table 2
depicts the reasons for the relevance and importance of entrepreneurial education.
Table 2 Reasons for the relevance and importance of entrepreneurial education.
Reason Individual level Organizational level Societal level
 Commonly stated reasons for entrepreneurial education.
Job creation More individuals are Growing organizations Entrepreneurship and
needed that are willing create more jobs innovation are primary
and capable to create job paths to growth and job
growth creation
Economic Entrepreneurship can Organizational renewal Renewal processes are
success give individuals is fundamental to every fundamental to the
economic success firms long-term vitality of economies
success
Globalization, People need Entrepreneurial firms A deregulated and
innovation entrepreneurial skills play a crucial role in flexible market requires
and renewal and abilities to thrive in changing market people with higher-level
an ever-changing world structures general skills
Rarely stated reasons for entrepreneurial education.
Joy, Creation / value creation Employee creativity and Economic wealth of
engagement, / creativity is a main joy is essential for the nations correlates with
creativity source of joy and pride performance of new and happiness of its citizens
for people existing organizations
Societal People can make a Corporations can Social entrepreneurship
challenges difference to society, and collaborate with small addresses problems in
marginalized people can social entrepreneurship society that the market
achieve economic initiatives to create economy has failed to
success social value address
Source: Martin Lackus Entrepreneurship in Education What, Why, When, How

Having appreciated the contribution of entrepreneurship education in economic

development, many institutions of higher learning have enriched their entrepreneurship
program with practical pedagogy such as case studies, simulations, and internships in order to
bring out the entrepreneurship competencies of students. Such approaches allow enhanced
job creation and not only help the government but also individuals and the society by
reducing the dependency rate and consequently leading to economic growth and development
(Peggy &Maramark, 1996).

Indeed, entrepreneurship education has truly earned a global status for itself, given that
it is now pursued with equal passion even in the developing countries. Most of the studies on
entrepreneurship training look at whether people who have received this education perform
better as entrepreneurs than those who have not. Studies by researchers at the University of
Arizona, New York University and other institutions have found that people who have
received entrepreneurship education perform better at running their own businesses (Scott
Shane, 2011).
Entrepreneurship Education in India
Entrepreneurial education is considered as an instrument for economic growth as it
has immense potential of employment generation. Therefore developing the culture of
entrepreneurial mindset among the students has become a thrust area for Government, policy
makers and the society. Government has to promote entrepreneurial culture to create new
venture for the economic growth. New venture creation is the result of excellent human skill
with developed technology and availability of resources. In order to nurture the
entrepreneurial spirit among the younger generation some of the educational institutions in
India are beginning to include entrepreneurship as a core course in business education.
Greater emphasis has been laid down in the recent past on benefits of entrepreneurial focused
education at the universities, instilling the confidence in students to turn ideas into business
ventures.

With over 3100 start-ups and a steep projection to reach around 10000 by 2020 India is
building its very own Silicon Valley. India is the 3rd largest start up location globally with
over 800 start-ups created each year and over USD 2.9 Billion in funding received since 2010
(NASSCOM Startup Report, 2014). With a strong venture capital and private equity
backbone of over 70 active players in just 2014, more than 550 angel investors and over 80
incubators and accelerators, the youth in India are being groomed to succeed with new and
innovative ideas (CXO Today, 2015).

The Government of India has also been contributing significantly in order to promote
entrepreneurial spirit within the students by way of risk funding. In order to push start-ups
and SMEs, the Government of India has launched two new investment and loan programs
with a combined budget allocation of INR 12,000 Crore (Mohul Ghosh, 2015). The Finance
Ministry of India has launched a new program fund of funds in order to invest in various
venture capitalists funds for meeting the equity requirement of start-ups. The Ministry has
also launched India Aspiration fund with an initial corpus of INR 200 Crore in order to
boost the entrepreneurial ecosystem within the country (Sujata Sangwan, 2015).

As the role of institutes of higher education in promoting entrepreneurial mind set

among the students is concerned, most of the top business schools and technical schools are
offering entrepreneurship education in the form of short and long term programs. The NS
Raghavan Centre for Entrepreneurial Learning in Indian Institute of Management (IIM)
Bangalore has a management program designed for entrepreneurs and family businesses. The
Indian School of Business in Hyderabad offers executive management and post graduate
programs in entrepreneurship education. IIM Bangalore is in the process of making
entrepreneurship a compulsory course in the years to come. The Indian Institute of
Technology (IIT) Madras incubation cell consists of alumni dedicated to providing funding
along with the technical and business mentorship needed for a start-up to succeed and thrive.
iCreate is an autonomous center to facilitate a wide range of Next Generation
Entrepreneurship in order to create a vibrant entrepreneurial ecosystem. S.P.Jain Institute of
Management and Research has set-up a Centre for Entrepreneurship development with a view
to promote student interest in entrepreneurship, facilitate new venture creation and
commercialize grass-root inventions (IDCK, 2016).

The start-up ecosystem growth has also brought together faculty members and students
at universities and institutions to join in with their own ventures. Many faculty members
across universities in India are now working with startups either independently or
collaboratively with students and co-faculty members. Faculty members of IITs from across
India, including Bombay, Delhi, Madras, Kharagpur and Hyderabad, are leading the trend of
joint start-up
collaboration (IDCK, 2016).

Apart from institutional support the methods of teaching entrepreneur education and
student orientation are important dynamics to determine the effectiveness of entrepreneurship
education. At university level the methods of teaching entrepreneurship education can be
classified into: traditional methods also known as passive methods which comprise normal
lectures and innovative methods also known as active methods that are more action-based
respectively. Compared with passive methods, active methods require the teacher to facilitate
learning, not to control and apply methods that enable students self-discovery (Bennett,
2006). In India, the three methods that are mostly employed for teaching entrepreneur
education are: lectures, case studies, group discussions. In reality these are the same
approaches used in other business management courses and are passive and ineffective in
developing entrepreneurial spirit. Such methods actually make students become indolent
participants and prepare them to work for an entrepreneur, but not to become entrepreneurs.

Challenges of Entrepreneurship Education in India

The leaning to pursue entrepreneurship is comparatively strong in India, where as
the educational support for its development is still far cry from the agenda (Raichaudhuri,
2005).Entrepreneurship education in India is well established but it is not free from
deficiencies. Entrepreneurial education in India has several challenges to take on and the
most important one is turning the idea of entrepreneurship into an educational model.
Creation and the success of entrepreneurs greatly depend on motives, attitudes of people.
Entrepreneurship has not been the preferred course among management students in India and
it has to go a long way in attaining the status of a favored destination. Perhaps, this is one of
the reasons why entrepreneurship is offered as an extra-curricular or co-curricular program in
the majority of the colleges and universities in India (Shankar, 2012).

Lack of institutionalization, absence of indigenous experience, dearth of trained

teachers, focus on short-term results, limitations with pedagogy and subject not considered as
core are six primary obstacles to teaching entrepreneurship in India (Shankar, 2012).

Top institutes in India are offering technical or management education with their
popular support programs for entrepreneurship, called "entrepreneurship cells" or "E-cells"
are inadequate to create entrepreneurial spirit (Mutsuddi, 2012). The educational framework
for instructing the entrepreneurial frame of mind seems far from being satisfactory (Dutta,
2012). Entrepreneurship education is an important component for entrepreneurship policy
framework. But entrepreneurship education taught by many Indian institutions is not holistic
enough (Liyan, 2003). There are contextual differences between developed and developing
economies that demand the development of indigenous standards that are appropriate for
entrepreneurial education with relevant knowledge about socio-political governance,
infrastructure, unorganized competition, chronic shortages, or sensitivity to local culture
(Bhardwaj & Sushil, 2012).

Indian Entrepreneurship Education Programs (EEP) offer training and coursework, but
not the other components. Even when the supportive frameworks exist, they are often not
coordinated with the other components of the EEP for instance, almost every IIM has its
own incubator, but these incubators are mainly designed for outside entrepreneurs, and are
not synchronized with the EEPs offered by the IIMs (Liyan, 2003).

Teachers of entrepreneurship education lack practical experience in business. In

most of the institutions Management graduates without specialized skills in entrepreneurship
teach the students. Entrepreneurial intentions of the graduates in the developing countries are
louder than that of the developed ones, but actions speak lesser. The outcomes of
entrepreneurship programs are not instantaneous, as graduates impulse and competences
progress overtime. Hence, it is undesirable to evaluate entrepreneurship education in terms of
entrepreneurial intensions and the rate of graduates business creation.

Another problem related to entrepreneurship education is mixing it up with

Management education. As a result, the vital aspect of entrepreneurship education
entrepreneurial training is missing. Aspects like acquaintance with technological
innovations, creative thinking, new product development, leadership etc. do not get due
recognition as they deserve. In most of the universities entrepreneurship courses are
comparable with general business programs.

The aim of entrepreneurship education is to sow the seeds of entrepreneurial drive

and spirit among the students. Passive modes of learning adopted by the schools of
entrepreneurship education do not meet the requirements of the real life situation and fails to
instill such a vision in the younger students. Most of the students prefer lucrative jobs with
multinational companies with a good pay packet as it is socially more satisfying and less
risky. This mindset is a result of social norms and education imparted.

Younger generation in India is scared of launching startups as they believe that they
lack confidence and knowledge required. If properly trained, the students in India will have
ample opportunities to become entrepreneurs. Entrepreneurship will progress in those
societies where cultural norms permit variability in the choice of paths of life. Unfortunately,
the Indian culture comprises a web of benefits that in many ways run counter to
entrepreneurship (Leo Paul Dana, 2000). Indians believe that it is healthier to be passive and
satisfied with the status quo for the inner soul than striving to improve ones situation. Most
of the people, feel that taking up a job is much better than running the risk of starting a
venture.

Suggestions for improving Entrepreneurship Education in India

No doubt the promotion of entrepreneurial education leads to true entrepreneurship

among the students which can be seen as fuel for economic growth engine and job
creation. However certain issues are to be addressed sooner than later to realize the
intended results. The following are the suggested measures to improve
entrepreneurship education in India. Entrepreneurship education programs must be
precisely designed to multiply the students knowledge base in entrepreneurship. The
course contents and teaching methodologies have to be distinguished between
entrepreneurship education and other traditional business courses.
 Strong didactic methods in entrepreneurial education for teaching, learning, and
evaluation of outcomes, review and feedback to teachers need to be established.
Entrepreneurial education requires qualified teachers who can motivate and instill the
much needed entrepreneurial mind set among the students. Competent teachers with
entrepreneurial qualities like risk taking, scouting for opportunities to exploit and
good communications skills must be selected in institutes of entrepreneurial
education. Entrepreneurship education would be more successful if some experienced
entrepreneurs are invited to associate with the institute as visiting faculty.
Small groups of teachers must be provided with strong encouragement, support, time
for focus and access to specialized knowledge to develop effective and efficient
entrepreneurial education pedagogy. To meet this purpose, they must be given the
opportunity to observe in other premier institutes of entrepreneurial education to
discover and refine a methodology that exactly fits their environment. A concerted
effort involving stake holders such as teachers, students, heads, policymakers,
researchers, should be made in bringing in robust reforms in entrepreneurial
education.
In order to make entrepreneurial education more effective, diligent care must be taken
by the institutions while identifying and selecting the candidates for the courses.
Proper testing tools should be devised to select the best candidates with
entrepreneurial spirit. Teachers should give their students assignments that can lead to
continual interactions with the outside world, for deep learning. Such learning by
doing activities can produce the development of entrepreneurial competencies
among the graduates.
If graduates want entrepreneurship to be learned as a career, it is best done through
apprenticeship. The learning tools that must be deployed in entrepreneurial education
to a greater effect could be: student business start-up plans, consultation with
practicing entrepreneurs, entrepreneurship simulations, behavioral simulations,
interviews with entrepreneurs, live case studies, field trips, and the use of success
stories of entrepreneurs.
Nurturing an entrepreneurial culture acts as a force to reckon with in the economic
development. An entrepreneurial culture can be fostered through promoting
entrepreneurial values in media and well documentation and publication of success
stories. This could help in changing some negative perceptions about entrepreneurship
among the younger people.
 Too many laws regulating the starting and running of business can do no good to the
economy. Multiple legislations on every issue will hamper the entrepreneurial spirit of
the prospective entrepreneurs. Hence the government should continue with reforms
and should play more proactive role to create an entrepreneurship friendly eco system
which in turn will benefit entrepreneurial education.

Conclusions:
Entrepreneurship supports economic development of a nation as it is a key
contributor to employment creation and national income. In the context of the Indian market,
entrepreneurship led economic growth is more inclusive and hence Governments, both at
Centre and State level, have been taking initiatives to boost the entrepreneurial ecosystem as
they realize the benefits of entrepreneurship brings to the economic growth of the country.
Entrepreneurs and government can work collectively to transform a developing economy into
developed economy. In order to catch up with the developed countries, India needs the hands
of many entrepreneurs who are willing to make it big in businesses. If the students with
entrepreneurial dynamism get proper training, they will have the chances of becoming true
entrepreneurs and contribute their might for economic development of the nation.
Entrepreneurship is a philosophy that requires the government, society, and the educational
institutions to work in tandem. Entrepreneurship education in India to achieve its quest for
nurturing potential entrepreneurs to contribute to economic development and employment,
the institutions should restructure their programs and can make a fine restart. The
Government also needs to play their part in encouraging entrepreneurship education directed
at nurturing entrepreneurial competencies and formulating favorable policies to reinforce the
entrepreneurial ecosystem in the country.

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ongoing Debate. Proceedings of 14th Annual International Entrepreneurship Conference.
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Amit (2014). Entrepreneurship Development in India: Role of Economic Growth, Foreign
Investment and Financial Development, AIMA Journal of Management & Research, Volume
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Bennett, R. (2006). Business lecturers perceptions of the nature of
entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 12(3), 165
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Carland, J., & Carland, J. (2004). Economic development: Changing the policy to support
entrepreneurship, Academy of Entrepreneurship Journal, 10(2), 104-114.
Chandler, A. (1990). Entrepreneurship and Economic Growth. Cambridge, Harvard
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CXO Today (2015, February 12). What it takes for Indian firms to be global leaders,
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Drucker, P. F. (1985). Innovation and Entrepreneurship. Practice and Principles, London,
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Dutta, S. 2012. Entrepreneurship and Global Competitiveness: A Study on India. Indian
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Gibb, A. (2002). In pursuit of a new `enterprise' and `entrepreneurship' paradigm for
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IDCK (2016, January).Entrepreneurship and Start-Up Activities at Indian Higher Education
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Leo Paul Dana (200). Creating entrepreneurs in India, Journal of Small Business
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growth: Evidence from GEM data. Small Business Economics, 24, 335-350.

EMERGING ENTREPRENEURSHIP IN INDIAN SCENARIO

*KumaraswamyManepalli MBA, M.Com, Asst. Prof. Department of Management Studies,

manepalli505@gmail.Com,9966617505.
Pottisriramulu Chalavadi Mallikharjuna Rao College of Engineering and Technology,
Kothapeta, Vijayawada-520001

ABSTRACT:

The Indian employment market is uncertain. The number of unemployed is ever increasing.
In this context, both the Central and State governments are working on to develop
entrepreneurship as a recourse to employment problems. In order to do so, there needs to be
specific skill and knowledge set needed from the individual who is looking for
entrepreneurship. The dimension of the entrepreneurship is changing not from its perceptive
form but also from its origin. The lusts of entrepreneurship in rural and urban areas are
different. Entrepreneurship is the key to Indias development. It is important as it utilized
local resources, employment and rural development. Entrepreneurship can be viewed as a
creative and innovative response to the environment and an ability to recognize, initiate and

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exploit an economic opportunity. An entrepreneur is an innovator who introduces something
new in an economy. Entrepreneurship is doing things that are generally not done in the
ordinary course of business. Innovation may be in; introducing a new manufacturing process
that has not yet been tested and commercially exploited, introduction of a new product with
which the customers are not familiar or introducing a new quality in an existing product,
developing a new combination of means of production. Innovation involves problem solving
and an entrepreneur is a problem solver. An entrepreneur does things in a new and a better
way. A traditional businessman working in a routine manner is not entrepreneurial.
Innovative organization wants must have to prepare for renewing the offerings and its
delivery process to its stakeholders to survive in todays globalised world. In the present
paper, concept of innovation and entrepreneurship has been studied by the authors. The
paper will also include the challenges and opportunities faced by the entrepreneur in India.
Key words: Entrepreneurship, Challenges, Opportunities

Introduction:

Entrepreneur is a person who innovates, allocates and manages the factors of

production. This particular person has the ability to perceive latest economic opportunities
and to device their exploitation. This particular person is the supplier of resources, supervisor
and coordinator and ultimate decision maker. Entrepreneur has the greatest chance of success
by focusing on a market niche either too small or too new to have been noticed by established
businesses. The new generation entrepreneurs are well educated and are capable of
understanding the fluctuating trends of markets. The entrepreneurs in most of the cases are
having business family background. In certain cases the new generation has started after
facing a lot of difficulties from their first generation. In these cases the new generation is very
careful in selecting their business career. Entrepreneurship has been a male-dominated
phenomenon from the very early age, but time has changed the situation and brought women
as today's most memorable and inspirational entrepreneurs. In almost all the developed
countries in the world women are putting their steps at par with the men in the field of
business.
An entrepreneur is a person who develops a new idea and takes the risk of setting up
an enterprise to produce a product or service which satisfies customer needs. All
entrepreneurs are business persons, but not all business persons are entrepreneurs.
Entrepreneurship is the activity which is being carried out by the Entrepreneur. Generally
Entrepreneur is the concerned authority of the business, without their permission, not single

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changes or decisions are made. In other words, An Entrepreneur is an owner or manager of
the business enterprise who makes money through risk or initiative. They are responsible for
any changes happened in the business or in the organization.
Importance of Innovation in Entrepreneurship:
The rules and principles are similar for every entrepreneur who owns large or small
enterprise. Only the difference is, the starter face toothache and hick ups at the early stage,
whereas existing business face different problems, limitations, management problems and
constraints in the market etc. Both the cases it needs to learn many things and should be
innovative for the survival in the business market. The daily crisis cannot be postponed; it has
to be dealt with right away. And the existing operation demands high priority and deserves it.
It thus takes special effort for the existing business to become entrepreneurial and innovative.

As Drucker says, the enterprise that does not innovate inevitably ages and declines.
And in a period of rapid change such as the present, an entrepreneurial period, the decline
will be fast. Innovation requires major effort. It requires hard work on the part of performing,
capable peoplethe scarcest resource in any organization.
Women Entrepreneurs in India:
Since time in memorial women are contributing a great deal to the development of
any nation across the world. It goes without saying that Indian women entrepreneurs have
significantly contributed to the industrial development of India. Apart from giving good
citizens to the nation, women have also given good organizations to the nation. Obviously,
what man can do, women can do better through their dedication and commitment. This has
been proved time and again in the analysis of Indian business history. Under the stewardship
of women scores of industries have made rapid strides and progress. The business models and
management styles followed women entrepreneurs worth replicating across the world. There
is saying where women are respected, dwells God. Similarly where women are there in the
industry dwells progress and prosperity.
Future of Entrepreneurship:
Technology plays a crucial role in the future of entrepreneurship. Entrepreneurs have
the chance to do both strategic planning and administrative work for their business. They can
get involved in all sides of their business because the Internet makes it possible to do so. The
future of entrepreneurship could involve high-performing entrepreneurs rather than people
working for huge, faceless organizations. The Internet and especially social media tools
makes it possible to turning passion into a thriving business, and that anyone can create a
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personal brand and leverage it worldwide through technology. Further, that entrepreneurs
need to get up to speed with the latest innovations in business. Managers, entrepreneurs and
other business-driven people simply cannot compete in todays market if they do not adopt
the right tools. This means that anyone, wherever that person is located, can build a
successful business if online tools are properly optimized. As the Internet revolution
advances, so does entrepreneurship. With constantly new and easier ways to build business,
succeeding in this new era is a matter of having two things: Internet and a device that gives
you access to it. Once an entrepreneur is in possession of these two, it is a matter of learning
and mastering the different tools available online to turn your idea into a thriving business.
Opportunities of Entrepreneurs:

Free entry into world trade.

Improved risk taking ability.
Governments of nations withdrawn some restrictions
Technology and inventions spread into the world.
Encouragement to innovations and inventions.
Promotion of healthy completions among nations
Consideration increase in government assistance for international trade.
Establishment of other national and international institutes to support business among
nations of the world.
Benefits of specialization.
Social and cultural development

Challenges faced by Entrepreneurs:

Family Challenges: Convincing to opt for business over job is easy is not an easy task for an
individual. The first thing compared is Will you make more money in business of your
choice or as a successor of family business. This is where it becomes almost impossible to
convince that you can generate more cash with your passion than doing what your Dad is
doing.
Social Challenges: Family challenges are always at the top because that is what matter the
most but at times social challenges also are very important. Let us say you and your friend
graduated at the same time. You opted for entrepreneurship and your friend opted for a job.
He now has a flat, car and what not because he could easily get those with a bank loan but
you still have nothing to show off and this is where challenge comes.

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Technological Challenges: Indian education system lags too much from the Job industry as a
whole but then it lags even more when it comes to online entrepreneurship. What technology
would be ideal and how to use that technology effectively?
Financial Challenges: (Difficulty in borrowing fund): Financial challenges are a lot different
in India especially for online entrepreneurs. When you are starting out as an entrepreneur you
dont opt for venture funding but try to go with funding from small to medium business
people. Many such non-technical business people dont understand the online business
models as a whole and so getting an initial business funding from them becomes challenging.
The other option you can think of is loan but bank loan is not at all an option in India for new
online entrepreneurs.
Policy Challenges: Now and then there is lot of changes in the policies with change in the
government.
Problems of TRIPS and TRIMS.
Problems of raising equity capital
Problems of availing raw-materials.
Problems of obsolescence of indigenous technology
Increased pollutions Ecological imbalanced.
Exploitation of small and poor countries, etc.

Conclusion:
An entrepreneur searches for change, responds to it and exploits opportunities. Innovation
is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a
resource. -Peter Drucker, Management Guru
Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more
about overcoming barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship
is one of the important segments of economic growth. Innovation is a key factor that an
entrepreneur brings in an overall change through innovation for the maximum social good. As
someone said failures are the stepping Stones for Success. If we observe the way any
entrepreneur, their life is not a bed of roses. They faced many obstacles in the way of
entrepreneurial achievement. Furthermore, women can tell the condition of a nation, she acts
as a central cohesive source of support and stability, not only to her family but also to whole
nation. There is saying where women are respected, dwells God. Similarly where women are
there in the industry dwells progress and prosperity. The bottom line for all the
entrepreneurial life taught the first lesson for success; and that is failure.

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References:
1. T.Swetha, Dr.K.Venugopal Rao: Entrepreneurship in India paper presented in
International Journal of Social science & Interdisciplinary Research.
2. Mr.Sanjay Manocha: Innovation and Entrepreneurship in Todays Scenario paper
presented in International Journal of Marketing, Financial Services & Management
Research.
3. Mr.Kapil Gulati, Mr.Suniel Sharma: Entrepreneurship in Indian Scenario paper
presented in International Journal of Economics, Finance and Management.
4. Dr.N,Santhi and S.Rajesh Kumar: Entrepreneurship Challenges and Opportunities in
India paper presented in International Journal of Industrial Engineering and
Management Science.

DEVELOPMENT OF ENTREPRENEURSHIP IN INDIA

- M. Krishna Chaitanya, M.com, M.B.A, B.Ed., (M.Phil)
Research scholar,
Acharya Nagarjuna University, Guntur.
Entrepreneurs are a special group of people who enjoy a distinct status and play a
crucial role in the success of any business or trade. In the wake of liberalisation, privatisation
and globalisation of Economies across the world, the entrepreneurship has gained greater
importance. Economic growth of a nation basically draws vital initiative from a stream of
young and talented entrepreneurs. Joseph Schumpeter in his book titled Small is Beautiful
has viewed an entrepreneur as an innovator who brings economic development through new
combinations of factors of production. Basically an entrepreneur is one who assumes
incalculable risks and uncertainties, seizes many opportunities for economic gain and initiates
activity leading to production of goods and services.

Promoting Entrepreneurship:
Entrepreneurship plays a significant role for expediting the process of economic
development is the country. Even the developed nations like U.S.A, U.K, Japan have long
ago realised the need to promote the entrepreneurship for their economic development. These
could be able to change their small based industries into big industrial houses only with the
development of entrepreneurial abilities and efforts. The advent of economic liberalisation
and need for industrial growth in India has led to an unprecedental development of
entrepreneurship. An effective functioning of the support systems like financial, marketing
and infrastructural, play a crucial role in the development of entrepreneurship.

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 Today, a plethora of organisations are engaging themselves in the promotion of
entrepreneurship. The government has launched various programmes and schemes to promote
industrial self-employment. The major schemes are Prime Ministers Rozgar Yozana
(PMRY), Training of Rural Youth for Self-Employment (TRYSEM), Self-Employment for
Educated unemployed Youth (SEEUY), Indira Mahila Yojana (IMY), Rashtriya Mahila Kosh
(RMK),Science and Technology Entrepreneur's Park (STEP) and Development of women
and Children in Rural Areas (DWCRA) etc..,

The above mentioned schemes have proved to be the most beneficial for the potential
entrepreneurs in the country. The Entrepreneurship Development Institute of India (EDII) set
up in 1983, at Ahmadabad has been serving as a national resource organisation to facilitate
and guide the state level agencies like state Technical Consultancy Organisations Small
Industry Service Institutes and nationalised banks. National Institute of Entrepreneurship and
small Business Development (NIESED) set up at New Delhi is serving for promotion of
entrepreneurship at the national level. The Industrial Development Bank of India (IDBI) and
State Bank of India (SBI), Small Industries Development Bank of India (SIDBI), APSFC and
District Industries centres (DICS), of late, are actively organising entrepreneurial training
programmes for the benefit of prospective entrepreneurs. The training is aimed at to effect
changes in the individuals in terms of knowledge, attitude and skills relevant to the selected
field of trade. It is indeed landable that government's and development banks training
programmes have achieved a remarkable degree of success in creating a new class of
entrepreneurs. The National Institute of Small Industry Extension Training (NISIET) of
Hyderabad is providing extension training mainly to officers and field staff working in
different government departments, banks and NGOS as to suit the specific requirements of
the target groups.

Problems of Entrepreneurship:
Despite that there has been a significant progress of entrepreneurship development,
there are certain problems which hinder the growth of entrepreneurial culture. The
entrepreneurial field is still dominated by a few individuals and organisations. The benefits
and government licences and other supportive measures have gone to select established
business houses. The main problems faced by India entrepreneurs are financial constraints,
scarcity of raw materials, intense competition, high cost of production, the initial lack of
confidence in ones own abilities etc, besides, lack of self-motivation and shyness to venture
into new activity reluctance to accept risk and change and lack of managerial talents are some

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of the problems being faced by the individuals. Unrealistic policies and programmes of
implementing agencies, lack of integration among different agencies are also some of the
other drawbacks in the way of entrepreneurship.

Developing Entrepreneurship:
Entrepreneur and entrepreneurship are in fact, the dynamic processes that require a
multi - dimensional approach for development. More importantly, they have become of late,
assumed greater dimensions due to their substantial contribution to the process of economic
development of the country, Moreover part of the solution of growing unemployment
particularly among educated youth lies in the promotions of entrepreneurship. It is suggested
that the government should encourage the formation of Entrepreneurship Development
Cells in all banks to help the prospective entrepreneurs for their development. Voluntary and
non-governmental organisations should work in close cooperation with financial institutions
and government agencies in creating a cadre of dedicated young men and women
entrepreneurs. It is necessary that all training institution and their training programmes be
brought under the control of an apex body to be set up at the national level to coordinate and
regulate the activities of all institutions engaged in the entrepreneurship development
programmes throughout the country. The apex body should have a mechanism for monitoring
and evaluating the results of EDPS. The colleges and universities should also be involved in
the process of growth of entrepreneurship in the country. New generation of entrepreneurs
possessing creativity and professional skills will have to emerge to meet the ever increasing
challenges of industry and trade.

PROBLEMS AND PROSPECTS OF SOCIAL ENTREPRENEURSHIP

*M.V Subba Rao,

Assistant Professor,
Viswa Bharathi pharmacy and Management, Perecharla,
Mail id- vsrrsv2@gmail.com, Mobile No- 91 7989643198
**MVS Vaishnav
MBA student,
GITAM UNIVERSITY, Vishakhapatnam
Mail id- saivaishnav41@gmail.com, Mobile No- 8332838754

ABSTRACT: Social entrepreneurship is a topic of growing interest among academicians

and practitioners. The potential of social problems in India is well known, but the degree of
support and interest is hardly significant. An entrepreneurial mindset is re-emerging in India.
Right from ancient times, India has been entrepreneurial. But the era of liberalization of late

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had released the genie from the bottle the suppressed urge and natural instincts of our
effervescent entrepreneurial class has once again been unleashed. The opening up of the
industrial sector to foreign competition had created a flutter among the Indian industrial
circles. The paper attempts to shed light on the comment state of affairs on the theme of
challenges and opportunities facing the social entrepreneurship scene in India.
Keywords: social entrepreneurship, challenges, problems, opportunities.

INTRODUCTION
The economic development of a Nation depends on its industrial development. The industrial
development is based on the entrepreneurial competencies of the people. Entrepreneurs are innovative, highly
motivated, and critical thinkers. When these attributes are combined with a drive to solve social problems, a
social entrepreneur is born. Social enterprises are the organizations which aim their efforts toward improving
the general welfare of society and they apply marketbased strategies to achieve a social purpose. Social
entrepreneurs and social enterprises share a commitment of going ahead with a social mission of improving
society. There is a great difference between social entrepreneurs and nonprofit organizations on the basis of
their goals and objectives. Social Entrepreneurs are driven by social as well as financial goals whereas non
profit organizations work purely for social purpose.

An understanding of whether and how social entrepreneurship differs from processes and activities by
political actors or social activists who also aim to bring about social change or alleviate social problems. In a
nutshell, the concept of social entrepreneurship is still poorly defined and its boundaries to other fields of study
are still fuzzy. While to some this may appear to be a problem, we see it as a unique opportunity for researchers
from different fields and disciplines, such as entrepreneurship, sociology and organizational theory, to challenge
and rethink central concepts and assumptions.

LITERATURE REVIEW
Social entrepreneurship as a practice that integrates economic and social value creation has a long
heritage and a global presence. The global efforts of Ashoka, founded by Bill Drayton in 1980, to provide seed
funding for entrepreneurs with a social vision (http://www.ashoka.org); the multiple activities of Grameen Bank,
established by Professor Muhammad Yunus in 1976 to eradicate poverty and empower women in Bangladesh
(http://www.grameen-info.org); or the use of arts to develop community programs in Pittsburgh by the
Manchester Craftsmens Guild, founded by Bill Strickland in 1968 (http://www.manchesterguild.org): these are
contemporary manifestations of a phenomenon that finds its historical precedents in, among other things, the
values of Victorian Liberalism. The conviction of enlightened entrepreneurs, as some Victorian industrialists
are referred to, that there was a need to combine commercial success with social progress gave birth to
industrial groups that used economic wealth for the good of the community (Bradley, 1987; Thompson, Alvy, &
Lees, 2000). While entrepreneurial phenomena aimed at economic development have received a great amount
of scholarly attention (see Busenitz, West III, Sheperd, Nelson, Chandler, & Zacharakis (2003) for a review of
the empirical and theoretical development of the entrepreneurship concept), entrepreneurship as a process to
foster social progress has only recently attracted the interest of researchers (Alvord, Brown, & Letts, 2004;
Boschee, 1995; Dees and Elias, 1998; Thompson, 2002). The development of social entrepreneurship as an
area for research closely resembles the development of research on entrepreneurship itself. Williams (1999)
argued that interest in entrepreneurship as a field of study was crucially stimulated by community leaders belief

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that entrepreneurship was a defining trend of the 21st century. Similarly, we observe that the rise of scholarly
interest in social entrepreneurship goes hand in hand with an increasing interest in the phenomenon among
elites. Over the last few years, a number of successful business entrepreneurs have dedicated substantial
resources to supporting social entrepreneurship. For example, Jeff Skoll, co- founder of eBay, created a
foundation and donated 4.4 million pounds to establish a research center for social entrepreneurship
(http://www.skollfoundation.org). Jeff Bezos, founder of Amazon, recently announced a one million US dollar
award for innovative approaches and breakthrough solutions to effectively improve communities or the world at
large (http://www.amazon.com). Finally, social entrepreneurs join the leaders of nations and corporations in
panel discussions at the World Economic Forum in Davos (http://www.weforum.org).

DISCUSSION

SCOPE OF SOCIAL ENTREPRENEURSHIP

Social entrepreneurship is a growing, worldwide movement. The scope of social work is no longer
limited to activism. Today, there are many opportunities in child welfare, community policing, healthcare,
counselling etc in not only NGOs but also national and international bodies as well as social enterprises.
Additionally, there is immense scope for social entrepreneurship and starting your own social initiatives. Social
entrepreneurship will play a big role in bringing the growth to the rural masses in India and so it becomes
important to study the factors, like fair trade, that will shape the social entrepreneurship philosophy.

First we will look into the areas where India faces problems, some of which are listed below:

1. Making the educated youths employable- many of our courses are designed in
such a way that they dont cater to needs of the industry.
2. Healthcare- affordability
3. Urban and Rural Sanitation
4. Making use of renewable sources of power
5. Nutrition and Food for the poor.
6. Affordable housing.
7. Agriculture
Many more are there, but these are the basic needs of the Indian society, which are being the topics of
discussions from so many years, many policies and laws were passed by state and central governments of
India. But still exists!

Social enterprises in these sectors will not only create many opportunities but also can find a solution
for these problems. For example an enterprise to train the youth with industrial oriented skills, is a good
entrepreneurial option at the same time it will answer the problem of unemployed educated youth.

COSTFORD, an organization with 13 centers across Kerala offers cost effective plans to build house.
COSTFORD encourages its institutional, public and private clients. Along with organisations sharing similar
concerns about social equity and a healthier ecosystem, to envision alternative architecture as a path to a more
just, peaceful and sustainable world (www.costford.com) is a very good example for an enterprise with social
goal (social enterprise) of affordable homes.

EARTHEN LIFE Earthen Life provides a sustainable and a decentralized waste management solution
by converting organic waste to renewable energy at source while taking an inclusive approach of integrating the

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waste pickers and other low income communities in the value chain. Earthen Life is based in Maharashtra with
offices at Mumbai and Pune. When many opportunities are available, when the Indian scene is wide open for
new ideas, when many social entrepreneurs set the examples, why does entrepreneurs hesitate to make a first
step?

Challenges for Social Entrepreneurs in India

The positive feedback of success and attention will naturally encourage new entrants, driving more
and more effective social entrepreneurial initiatives. Peredo & McLean (2006) indicate that there are
nevertheless tremendous hurdles and challenges that many social entrepreneurs face while operating in India
and that hinder the entrance of new social entrepreneurial ventures. Unfriendly bankers, procedural delays,
bureaucratic indifferences all impede the smooth launching of enterprises. Ironically enough, the policy
imperatives with their trust on protecting the new entrepreneurs in the small sector from the shocks of unequal
market relations with the large sector, have turned out to be the hardest stumbling blocks on their path to growth
and prosperity. Complex and burdensome regulatory and administrative environment created as a result of
excessive state intervention became the major deterrent to the emergence of new entrepreneurship. Some of
the major challenges are explained below:

Lack of Education in Entrepreneurship: Entrepreneurship in India is still encumbered by the traditional

educational system of the country. As education is the main source for promoting entrepreneurship in the
business sector of the economy, there is still a lack of specific curriculum on entrepreneurship development in
the Indian education system. Due to the increasing demand of this sector, currently, the entrepreneurship
education is a new cup of tea limited to graduates of business schools and management institutes, whereas
for other streams of education like the sciences and arts there is not a single course on entrepreneurship in the
curriculum. Due to this gap in the Indian education system the countrys entrepreneurial sector is still
underdeveloped and struggling. Even business schools that have developed curriculum on entrepreneurship
are lacking in terms of social entrepreneurship. This lack of social entrepreneurship knowledge presents a
major challenge for social enterprises in finding competent and skilled promoters.
Lack of Financial Assistance: Lack of financial sources is a major challenge for the Indian entrepreneur.
Generally, the social entrepreneurs run their business with their own funds or by raising funds from the local
money lenders at a high rate of interest, which sometimes becomes a financial burden on them. The reason
behind this is the banks avoidance to providing loan facilities for social entrepreneurs given the various social
complications attached with them. Hence the social enterprises have to deal with the challenge of facing a
hostile reaction from financial institutions and governments as far as funding is concerned. This forces social
entrepreneurs to take, what can be, a more difficult path of approaching venture capitalist and philanthropic
organizations.
Social and Cultural Effect: In India, the social and cultural perception of social entrepreneurship sometimes
becomes a challenge for social entrepreneurs in running their business activities. As in the case of Water Health
International, the major focus of this social venture was to awaken the people about various water diseases and
how they can be cured, but people were still sceptical about how, and why, WHI is providing the purified water
at such a low cost. This impression shows the lack of knowledge or foresightedness of the local community in
distinguishing a social business from a normal profitdriven business.

Comparative disadvantages to business:

Social entrepreneurs mainly deal with the difficult task of improving the welfare of the society and they are
always keen to find affordable solutions to various societal problems. But every activity of social business
carries a cost, which is mostly borne by the owner out of his own pocket or by taking loans from money lenders.

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Social entrepreneurs are not necessarily working in a lucrative market; they identify a problem within society
and try to find affordable solutions for them. Once they find the way to earn some profit after providing the best
low cost solution to the needs of the society, more traditional businesses will enter the market competing with a
similar solution and technique, increasing transaction costs and competition for social entrepreneurs and
hampering their future growth.
Lack of Government support: Lack of government support is a major hindrance for social business
development in India. Currently, the government is not providing any kind of assistance for promoting these
social cause ventures. The governments policies and regulations for social entrepreneurs are very complex
and strict, with no tax incentives or subsidies being provided for a social business, the combination of which
acts as major impediment to the growth of social businesses in India.

Lack of Skilled Manpower: Social enterprises have to get competent

Manpower from a variety of sources; professionals, volunteers, labourers and community participants. To align
the motives of all these groups with the long term growth of the organization is a challenge for the founders. In
order for social enterprises to fulfil their mission in a holistic manner they must typically employ manpower from
the underprivileged sector of the society, leading to increased training and developmental cost as these people
are typically uneducated and unskilled. The organizations have to attempt to fulfil the aspirations of all these
divergent groups and still come out with the best results.
Social entrepreneurs in India face a variety of challenges and problems in their day to day operations
and while many of them have come a long way in meeting these challenges, there remains a long journey
ahead in terms of satisfying their social mission.

SUGGESTIONS
A few workable suggestions could help Indian social entrepreneurs in achieving their objectives:

Social enterprise should use the network approach with other ocial enterprises to avail
the opportunities in the market. It helps them to educate the consumer and set the
market standards. The social enterprises should work together to educate customers
about the difference between their product and those offered (possibly at lower Prices)
by other businesses. This would lead to increased demand for their products by the
people who support their cause. This network approach can also be used in lobbying
the government and regulatory agencies to create a business environment supportive
of social enterprising. This lobbying can influence the government to provide liberal tax
policies and investment regulations for the social enterprises.
Social entrepreneurs should assist higher education institutes in India in developing
curriculum that instils social entrepreneurship in their students and, in doing so,
provides social enterprises with access to good quality managers and promoters.
Majority of the social enterprises are operating mostly in the southern and western
parts of India. This is primarily due to the jurisdictional focus of many of these
enterprises and this leads to a regional imbalance in the growth of social

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 entrepreneurship within the country. These enterprises should try to expand their
operations to act as a mentor for similar organizations in the underserviced areas of
India. Balancing the growth of social entrepreneurship in the country would go a long
way in solving the social problems of a large population spread over the width and
breadth of the country.

CONCLUSION
Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who
recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to
make social change. Social entrepreneurship is a process aimed at enabling business to develop more
advanced and powerful forms of social responsibility.

The Indian scene is full of possibilities and challenges. The country possesses capable human
resources, and has made good progress in achieving scientific and technological capabilities. The economy has
been witnessing rapid growth since the onset of liberalizations from 1991 onwards. Unfortunately social and
environmental problems of the country are increasing year after year (Christie& Honig, 2006) which
necessitates the extensive application of multidisciplinary approaches and entrepreneurial energy in the social
and environmental sectors.

India is experiencing an increase in social entrepreneurship and attempts by social entrepreneurs to

find affordable solutions to various social problems of society. With changes in technology and increasing
competition, social entrepreneurs have to become more dynamic.

REFERENCES
Austin, J., Stevenson, H., & WeiSkillern, J. (2003). Social Entrepreneurship and Commercial
Entrepreneurship: Same, different, or both?

Harvard Business Review pp.04029. Chakraborty, S.K. (1987), Managerial effectiveness And
Quality of Work life: Indian Insights, New Delhi, Tata McGrawHill Publishing Co. Ltd.pp.169.

Christie, M. J., & Honig, B. (2006). Social Entrepreneurship: New Research Findings. Journal of World
Business, pp 15, 44.

Dees and Anderson (2006), Framing a Theory of Social Entrepreneurship: Building on

Two Schools of Practice and Thought, in Research on Social Entrepreneurship:
Understanding and Contributing to an Emerging Field, Association for Research on
Nonprofit Organizations and Voluntary Action (ARNOVA), 006.
Frumkin, P. (2002). Social Entrepreneurship on Being Nonprofits. Cambridge, Mass.:
Harvard University Press pp.129162.
Gupta, R. (2001) Creating Indian Entrepreneurs. India Today, organizations India.
Participatory Research in Asia (PRIA) (2002), 167195.
A GLIMPSE ON CONTRIBUTION OF ENTREPRENEURSHIP IN GDP
GROWTH

A special focus on service sector

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Abstract:

An organization comes into existence only because of the efforts put in by an

individual, who would be prepared to assume responsibility of leading the enterprise with
him. For that, the individual must have a special quality that is known as entrepreneurship.
Entrepreneurship refers to all those activities which are to be carried out by a person to
establish and to run the business enterprises in accordance with the changing social, political
and economic environments. Entrepreneurship plays a major role in economic development.
It serves as a catalyst.

The role of entrepreneurship in economic development varies from economy to

economy depending upon its material resources, industrial climate and political system. The
primary objective of this paper is to throw light on role of entrepreneurship in economic
development. This paper begins with presenting segmentation of entrepreneurs. This paper
gives an overview of contribution of different sectors in growth of GDP in India and also
studies contribution of Service sector in growth of GDP in India.
Keywords: Entrepreneurship, Economic Development, GDP, Service Sector.

==================================================================
===

Smt. V. Mydhili MBA, Assistant Professor, Dept of Management Studies, Vignans Nirula
Institute of Technology & for Women, Guntur & Research Scholar, KLU Business school,
KL University, Guntur; E-mail : mydhili.mba@gmail.com.

ENTREPRENEURSHIP:

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 Entrepreneurship refers to all those activities which are to be carried out by a person
to establish and to run the business enterprises in accordance with the changing social,
political and economic environments. Entrepreneurship includes activities relating to the
anticipation of the consumers likes and dislikes, feelings and behaviors, tastes and fashions
and the introduction of business ventures to meet out all these expectations of the consumers.
Entrepreneurship is the ability of entrepreneurs to assess the risks and establish businesses
which are risky but at the same time suits perfectly to the changing scenarios of the economy.

Entrepreneurship as the function of seeking investment and production opportunity,

organizing an enterprise to undertake a new production process, rising capital, hiring labor,
arranging the supply of materials, finding site, introducing new techniques and commodities,
discovering new sources of raw materials and selecting top managers of day to day operations
of the enterprise.

According to Schumpter, Entrepreneurship is the purposeful and systematic

innovation. It included not only the independent businessman but also company directors and
managers who actually carry out innovative functions.

According to Schumpeter Entrepreneurship and economic development are

intimately related. Entrepreneurial process is a major factor in economic development and the
entrepreneur is the key to economic growth.

According to Robert C. Ronstadt, Entrepreneurship is a dynamic process of vision,

change, and creation. It requires an application of energy and passion towards the creation
and implementation of new ideas and creative solutions. Essential ingredients include the
willingness to take calculated risks-in terms of time, equity, or career; the ability to formulate
an effective venture team; the creative skill to Marshall needed resources; the fundamental
skill of building a solid business plan; and, finally, the vision to recognize opportunity where
others see chaos, contradiction, and confusion.

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.

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 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

Characteristics of an Entrepreneur:

The following are the characteristics of an entrepreneur:

Hardworking nature

Desire for high achievement

Highly optimistic

Independence

Foresight

Good organizer

Innovative

In a study it was found that possession of certain competencies or abilities result in

superior performance. An entrepreneur may possess certain competencies and at the same
time it is possible to develop these through training, experience and guidance.

Types of Entrepreneurs:

Innovating entrepreneurs: An innovative entrepreneur is the person who introduces

new products, new methods for production, discovers new market and recognises the
enterprise.

Imitating entrepreneurs: These are the people who are ready to adopt the innovations
of innovating entrepreneurs. They only imitate the techniques and technology
innovated by others.

Fabian entrepreneurs: These people are characterised by very great caution in

experimenting any change in their enterprises. They imitate only when it becomes

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 perfectly clear that failure to do so would result in a loss of the relative position in the
enterprise.

Drone entrepreneurs: These people are characterized by a refusal to adopt

opportunities to make changes in production even at the cost of severely reduced
returns relative to others.

Positive attitude is very important to the entrepreneurs. If they do not have positive
attitude, they will not be able to achieve the goals. For people who have positive attitude,
if they do any mistake they learn a lesson from that mistake and carry on their life.They
will spent more time for finding out the optimal solutions. The positive attitudes which
are associated with entrepreneurship are listed below.

Attitude toward imagination

Attitude toward hard work

Attitude toward frank expression and action

Attitude toward new opportunities

Attitude toward change in the environment

Attitude toward initiative

Attitude toward thoughts and execution upon a project

Role of Entrepreneurship in Economic Development:

Entrepreneurship plays a vital role in economic development. The following are the roles:
1. It promotes capital by mobilizing savings.

2. It provides employment.

3. It promotes balanced regional development.

4. It helps to reduce the concentration of economic power.

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 5. It stimulates the equitable redistribution of wealth, income and even political power in
the interest of the country.

6. It encourages effective utilization of resources.

7. Promotes exports.

Thus, it is clear that entrepreneurship serves as a catalyst of economic development. The

entrepreneurship is a cause and the economic development is the effect. It represents the
cause and effect relationship.

Contribution Of Different Sectors In Growth Of GDP In India:

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Contribution of Service sector in growth of GDP in India:
Indias services sector covers a wide variety of activities such as trade, hotel and
restaurants, transport, storage and communication, financing, insurance, real estate, business
services, community, social and personal services, and services associated with construction.
The contribution of service sector in Gross Domestic Product growth rate is around
66.1 per cent of its Gross Value Added growth in 2015-16.
The contribution of service sector in Gross Domestic Product growth rate in 2014-15
is 57.9%.
The contribution of service sector in Gross Domestic Product growth rate in 2013-
2014 is 57%.
The contribution of service sector in Gross Domestic Product growth rate in 2012-
2013 is 64.8%
The contribution of service sector in Gross Domestic Product growth rate in 2011-12
is 34%.
The following table shows the year wise contribution of service sector in the growth of GDP:

Year Service Sector (%)

2011-12 34.0

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 2012-13 64.8
2013-14 57.0
2014-15 57.9
2015-16 66.1

The reasons for the growth of contribution of service sector in GDP growth rate is due
to the fact that India has a large pool of highly skilled, low cost, and educated workers in the
country. This has made sure that the services that are available in the country are of the best
quality.
Entrepreneurship development to Economic development
The significant role that entrepreneurship plays in the economic development of an economy
can now be put in a more orderly and systematic manner as follows:

1. Formation of capital

Entrepreneurs promote capital formation by mobilizing the idle savings of public.

They employ their own as well as borrowed resources for setting up their enterprises.
Such type of entrepreneurial activities leads to value addition and creation of wealth,
which is very essential for the industrial and economic development of the country.

2. Large-Scale Employment Opportunities

Entrepreneurs provide immediate large-scale employment to the unemployed

which is a chronic problem of underdeveloped nations. With the setting up of more
and more units by entrepreneurs, both on small and large-scale numerous job
opportunities are created for others. As time passes, these enterprises grow, providing
direct and indirect employment opportunities to many more. In this way,
entrepreneurs play an effective role in reducing the problem of unemployment in the
country which in turn clears the path towards economic development of the nation.

3. Balanced regional development:

Entrepreneurs help to remove regional disparities through setting up of industries in

less developed and backward areas. The growth of industries and business in these areas
lead to a large number of public benefits like road transport, health, education,
entertainment, etc. Setting up of more industries leads to more development of backward
regions and thereby promotes balanced regional development. When the new
entrepreneurism grow at a faster rate, in view of increasing competition in and around

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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. Creation and Distribution of Wealth:-

It stimulates equitable redistribution of wealth and income in the interest of the

country to more people and geographic areas, thus giving benefit to larger sections of the
society. Entrepreneurial activities also generate more activities and give a multiplier
effect in the economy.

5. Strengthens Export Trade

Entrepreneurs help in promoting a country's export-trade, which is an important

ingredient of economic development. They produce goods and services in large scale for
the purpose earning huge amount of foreign exchange from export in order to combat the
import dues requirement. Hence import substitution and export promotion ensure
economic independence and development

6. Facilitates Overall Development

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once
an enterprise is established, the process of industrialization is set in motion. This unit will
generate demand for various types of units required by it and there will be so many other
units which require the output of this unit. This leads to overall development of an area
due to increase in demand and setting up of more and more units. In this way, the
entrepreneurs multiply their entrepreneurial activities, thus creating an environment of
enthusiasm and conveying an impetus for overall development of the area.

7. Innovation

An entrepreneur is a person who always looks for changes apart from combining the
factors of production; he also introduces new ideas and new combination of factors. He
always tries to introduce newer and newer technique of production of goods and
Services .An entrepreneur brings economic development through innovation.

8. Social Change

Through their unique offerings of new goods and services, entrepreneurs break away
from tradition and indirectly support freedom by reducing dependence on obsolete

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 systems and technologies. Overall, this results in an improved quality of life, greater
morale and economic freedom.

For a more contemporary example, smart phones and their smart apps have
revolutionized work and play across the globe. Smart phones are not exclusive to
rich countries or rich people either. As the growth of China's smart phone market
and its Smartphone industry show, technological entrepreneurship will have
profound, long lasting impacts on the entire human race.
Moreover, the globalization of tech means entrepreneurs in lesser-developed
countries have access to the same tools as their counterparts in richer countries.
They also have the advantage of a lower cost of living, so a young individual
entrepreneur from an underdeveloped country can take on the might of the multi-
million dollar existing product from a developed country.

CONCLUSION:

Entrepreneurship plays a vital role in the economic development of the country.

In India entrepreneurship played an important role in the development of the economy. In the
growth of Indias gross domestic product there is contribution of different sectors. In
particular service sector is playing a major role in its contribution in the growth of gross
domestic product. The contribution of service sector in the growth of gross domestic product
is increasing year by year.

Entrepreneurship puts new business ideas into practice. In doing so, it creates
jobs that facilitate personal development. With their innovative and disruptive ideas,
entrepreneurs can tackle social problems too. Its a worthy pursuit to consider, but if its not
for you see how to pass down its principles to the next generation and enroll in How to
encourage and Teach Our Children Thus, it is clear that entrepreneurship serves as a catalyst
of economic development. On the whole, the role of entrepreneurship in economic
development of a country can best be put as an economy is the effect for which
entrepreneurship is the cause

REFERENCES:

Audretsch, David and Keilbach, Max. Entrepreneurship and Regional Growth:

An Evolutionary Interpretation. Journal of Evolutionary Economics, Vol. 14, No.5,
2004, 605 616.

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 Cooper, 2003 Entrepreneurship: The Past, The Present, The Future. In Handbook of
Entrepreneurship Research, 21-36.

Dr. S.S.Khanka, Entrepreneurial Development, S.Chand Publications.

H. Nandan, Fundamentals of entrepreneurship, PHI Learning private Limited.

http://www.preservearticles.com/2011011433 26/role-of-an-entrepreneur-in-
economic-development.html
http://www.indiastudychannel.com/resources/ 93451-Role-entrepreneurship-
economic-development.aspx
http://study.com/academy/lesson/what-is-an-entrepreneur-definition-
characteristics-examples.html
GOVERNMENT INITIATIVES FOR ENTREPRENEURSHIP
DEVELOPMENT
*N. RamaKrishna MBA, Asst. Prof. Department of Management Studies,
davidnagandla11@gmail.com, 9701834062.
Pottisriramulu Chalavadi Mallikharjuna Rao College of Engineering and Technology,
Kothapeta, Vijayawada-520001

ABSTRACT:
India today has reached that stage of the demographic transition wherein more than 60 percent of the population is
in the economically active age group of 15-59 years, commonly referred to as the DEMOGRAPHIC DIVIDEND. For India
to tap this dividend it is necessary that the economy is able to generate enough job opportunities to productively absorb
this economically active population. We do keep mentioning of 500 million strong workforce by 2022 but India faces
challenges in reaping this demographic dividend considering that illiteracy levels among the labour
force is still high and between 70-80 percent of the labour force have education levels below secondary.
Almost 48 percent of the workforce is engaged in agriculture while contribution of agriculture to GDP is not
more than 16 percent. This situation may be attributed to the low level of education and thereby inability to access
decent jobs in the non-farm sector. In terms of status of employment 52 percent of the workforce is self-employed as
own-account workers or helpers, 30 percent as casual workers while only around 18 percent have regular jobs. This has
resulted in more than 90 percent of the workforce engaged in informal jobs and slowing down the structural transition from
farm to the non-farm sector. The policy focus in the labour market has therefore been to create decent jobs which can give
the workforce a reasonable standard of living. While the emphasis has been on wage employment it has been felt essential
to promote self-employment or to be specific entrepreneurship as an entrepreneur would be in a position to create more jobs.

Introduction:
Entrepreneurship is not new to India. In fact to quote from the Indian Industrial Commission Report (1916-
1918)"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."

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 In fact an earlier version of the current Make in India policy was the Swadeshi movement launched in 1905 during
the pre-Independence era to boycott British made goods and use Indian made goods. The movement saw the development of
the Indian textile industry, the iron & steel industry by the Tatas, publishing of vernacular newspapers, setting up of
vernacular medium educational institutions, financial institutions etc.

However, post-independence the policy focus of increased public investment in heavy industries and setting up of
PSUs did not provide an ideal environment for entrepreneurship. The main problems faced by an entrepreneur were lack of
mentoring facilities, technology support or easy availability of credit. Though different Reports on employment highlighted
the need for promoting entrepreneurship as means of self-employment, entrepreneurship did not scale up. To mention a few,
in the S.P Gupta Special Group Report on Targeting

10 million Employment Opportunities Per Year (2002) recommended appropriate programmes should be
launched to increase entrepreneurial capabilities and skill for self- employment. The Montek Singh Ahluwalia Report of
the Task Force on Employment Opportunities, July 2001 also mentions about developing entrepreneurship ability among
the newly self-employed. The Report even recommends entrepreneurship training for the informal sector. To quote, A large
part of the employment generated by the economy will be self-employment in the informal sector. These self-employed
entrepreneurs need training of the multi-skill variety, going beyond production skills to include marketing, finance and
accounting and elementary management. Such skills cannot be developed through structured formal training but requires the
guidance of mentors in actual business conditions.

However, entrepreneurship in India has been confined to being own-account workers with one or more helpers and
did not expand in size beyond that. As maybe seen from the Fifth Economic Census 2005, 95 percent of establishments were
engaging not more than five workers and they accounted for almost 64 percent of the employment? If the employment size
of a unit is taken as not more than 10 workers then 98.5 percent of the establishments are covered. (Table-1)

Table-1 Distribution of Establishments by size class of

Employment
Size by class of
S. No. Item Year
Employment
1 1-5 Establishments 1990 1998 2005
Persons usually working 93.4% 94.0% 95.1%
2 6-9 Establishments 54.5% 58.6% 64.2%
Persons usually working 3.5% 3.3% 3.4%
3 10 & above Establishments 8.4% 8.3% 10.2%
Persons usually working 3.1% 2.8% 1.5%
37.1% 33.1% 25.5%
Source: Table 5.12, Chapter V, Fifth Economic Census 2005-All India Report, GoI

To promote self-employment as a means of job-creation and to promote entrepreneurship for further job creation,
the Micro, Small and Medium Enterprises (MSME) Act, 2006 was enacted to facilitate the promotion, development and
enhancing the competitiveness of micro, small and medium enterprises. Earlier to that the small scale industries (SSIs) were
regulated by two sections of the Industries (Development & Regulation) Act, 1951 which led to absence of an institutional
regulatory and consultative mechanism to capture and guide the progress of an SSI unit from being a micro unit to a small
scale and eventually to medium scale one. The earlier Act also excluded the fast emerging service sector. But even after the
implementation of the MSME Act, 2006 the high proportion of unregistered MSME units outside the purview of the Act is a
matter of concern.

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 The government has over time implemented policies for the promotion of the small industries which included
providing concessional credit, training in entrepreneurship development, marketing assistance etc. But the entrepreneurial
growth did not take off in a big way in India as compared to other countries because of the procedural hassles, stringent
labour laws, economic regulations etc that the establishments had to face. Further with import liberalization and entry of
MNCs into India, the Indian small scale entrepreneurs are not able to face the competition and are finding it difficult to
survive. In this context to quote from the Second National Commission on Labour (2002) New economic changes will
provide more opportunities and not enough jobs. Therefore, one has to take advantage of the opportunities. Both in urban
and rural areas, there may not be an impressive rise in wage employment but there will probably be enough scope for self-
employment. The emphasis, therefore, has to be not on wage jobs but on creating self- employed persons or entrepreneurs.
The entire system of training and education will have to give emphasis on the development of entrepreneurship.

In keeping with this spirit the Ministry of MSME is implementing the entrepreneurship development and skill up
gradation schemes through appropriate training facilities. The Ministry has set up three national level Entrepreneurship
Development Institutes viz; The National Institute for Entrepreneurship and Small Business Development (NIESBUD)
(1983) at Noida (Uttar Pradesh), National Institute for Micro, Small and Medium Enterprises (NI-MSME) (1960) at
Hyderabad, and Indian Institute of Entrepreneurship (IIE) (1993) at Guwahati, to inculcate entrepreneurial culture especially
among the first generation entrepreneurs. There is the scheme for Providing Support for Entrepreneurial and Managerial
Development of SMEs through Incubators in implementation since 2008. There is the MSME Technology Centers (earlier
Tool Room & Technology Development Centers) which provide high end skill training to the youth. A national award
scheme has been initiated by MSME for outstanding performance in Entrepreneurship, Research and Development,
Innovation, Lean Manufacturing Techniques and Quality Products.

Start-up Revolution
However, a change is being witnessed today, as quoted by Prime Minister Shri. Narendra Modi, The convergence
of technology, integration across diverse fields, distributed architecture and people willing to back an idea, have opened a
new world for enterprise.

I see Start-ups, technology and innovation as exciting and effective instruments for Indias transformation, and for
creating jobs for our youth. For start-ups today there are different levels of financial support that has come to provide the
initial seed capital in the form of incubatorsii, angel fundsiii or venture capital fundsiv followed by private equity and debt in
that order. Between January-September 2015, Angel Funds and VCFs have invested $7.3 billion in early stage Indian Start-
ups. Indias first generation e-commerce and mobile entrepreneurs have become angel investors which is a sign of maturing
of startup ecosystem. However, there is a danger that too many mentors/ angel investors with little experience may lead to a
situation of unsuccessful start- ups.

What is Start-up?
The government has also come a big way in promoting startups. The question therefore what needs to be answered
is what is a start-up? A start-up is a company that is in the first stage of its operations. These companies are often initially
bank rolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they
believe there is a demand. The start-up and SMEs appear to be of the same size with limited revenues, high cost of operation,
job creating but they operate on entirely different business models. The difference between a start-up and a SME unit is that
a startup is new organization designed to search for a repeatable and scalable business model. A start-up according to Steve
Blank is searching for answers to the product it will sell, the customers it will serve and the way it will make money
from delivering value to its customers. A SME, according to the U.S. Small Business Administration (SBA) is an
independently owned and operated, organized for profit, and not dominant in its field. SMEs generally sell known

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products to known customers in known local markets. These startup needs an appropriate ecosystem to thrive which includes
adequate funds for startups to help them grow; government to create an environment of ease of doing business; ready
availability of essential services like office space, location, supplies telecom connectivity etc.; and mentors to provide
strategic advice.

Latest Policy Initiatives for Start-ups

To simplify the regulatory framework the government introduced the Ease of Doing Business wherein an MSME
unit has to fill in a single one page self-declaration online form called Udyog Aadhaar. The Apprentices Act, 1961 was
amended to enable even the MSME units engage apprentices which will enable the units to get trained labour as well as in
turn supply skilled labour. Under the Apprentice Protsahan Yojana, 50 percent of the stipend payable to the apprentices
would be reimbursed by the Government for the first two years which is an incentive for MSME units to take in more
apprentices.

To give boost to the Make in India programme, the MSME Ministry has launched the ASPIRE scheme in March
2015, a Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship. The objective of the scheme is to set up a
network of technology and incubation centers to accelerate entrepreneurship and also to promote start-ups for innovation and
entrepreneurship in agro-industry.

To ease the credit availability requirements of startups the Government had announced the MUDRA scheme-
Micro Units Development & Refinancing Agency, operated by SIDBI for providing refinance to micro units. This would
improve the liquidity of the micro units who right now have to borrow from NBFCs and moneylenders at high rates of
interest.

Atal Innovation Mission (AIM) - This programme operated from NITI Aayog is about an Innovation Promotion Platform
involving academics, entrepreneurs and researchers and draw upon national and international experiences to foster a culture
of innovation, R&D and scientific research in India. The platform will promote a network of world- class innovation hubs
and grand challenges for India. The overarching purpose of this mission is to promote a culture of entrepreneurship and
innovation in India. The key objectives of the AIM are:

To create an umbrella structure to oversee innovation eco-system of the country;

To provide platform and collaboration opportunities for different stakeholders;
To study and suggest best and novel practices to be adopted by different stakeholders
in the innovation chain;
To provide policy inputs to NITI Aayog and various Government Departments and
Organizations.
To create awareness and provide knowledge inputs in creating innovation challenges and
funding mechanism to government; and,
To develop new programmes and policies for fostering innovation in different sectors
of economy.
Digital India-Digital India Programme has been launched to provide broadband connectivity in rural and urban areas.
Introduction of digital rural connectivity would give a big boost in developing traditional rural arts, crafts or other innovative
ideas into business models.

Intellectual Property Rights-With the growing number of startups it is essential to protect ones products from
impersonators. The startups need to go for design patents, trademarks, copyright or trade secrets protection as the need maybe
before marketing their product.

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India Aspiration Fund- A Rs. 2000 crore India Aspiration Fund (IAF) was launched by SIDBI in August 2015 to boost the
startups fund- of-funds ecosystem in the country. This fund would invest in various venture capital funds for meeting the
equity requirement of MSME start-ups. A SIDBI Make in India Loan for Small Enterprises (SMILE) Scheme of Rs.10,000
crore has also been launched to catalyze tens of thousands of crores of equity investment in start-ups and MSMEs, creating
employment for lakhs of persons, mostly educated youth over the next 4-5 years. The objective of SMILE is to provide soft
loans in the nature of quasi-equity and term loans on relatively soft terms to MSMEs to meet the required debt-equity ratio
norm. The 25 sectors under the Make in India programme would be the focus with emphasis on financing smaller
enterprises in the MSME sector. There will be concessional terms for the enterprises promoted by (SC) / (ST) / Persons with
Disabilities (PWD) and women. The scheme is expected to benefit approximately 13,000 enterprises, with employment for
nearly 2 lakh persons. These two schemes are in addition to the Rs.20000 crore MUDRA scheme. Together the three finance
schemes should boost the startups as well as MSMEs already in the transition phase and create good number of jobs in the
years to come.

Till date the startups have been successful in e-commerce, and other IT based applications of service sector. The
startups in manufacturing sector are yet to take off in a big way. The launch of the above-mentioned policy initiatives should
give a boost to startups in manufacturing as well. As of 16th November 2015, 806 startups have taken off during the year and
the main sources of funding were seed funding and private equity and the products were mainly IT based applications in the
service sector.

In the Global Competitiveness Index (GCI) 2015-16 India has scored 16 points and moved up from its earlier
ranking of 71 to 55 out of a total of 144 countries. Region-wise among the emerging and developing Asia India ranks sixth
after Malaysia (18), China (28), Thailand (32), Indonesia (37) and Philippines (47). India does have the potential to move
ahead of these countries. In the World Banks Ease of Doing Business Ranking 2015 India is placed at 142 place out of a
total of 189 economies. But on the startup front India ranks third position globally with 4200 startups. The new initiatives in
promoting startups would enable India to move up to the top position.
Conclusion:

To conclude, a startup ecosystem has been created through the new policy initiatives which would not only
promote startups particularly in the manufacturing sector but also the micro units would be able to graduate faster as
small and medium units. If this objective is achieved the goal of job- realization through self-employment would be
complete as self-employment is the answer to providing jobs to the huge proportion of population in the economically active
age group. This process would be fast tracked by the flagship programmes well supported by the Skill India Mission which
would facilitate availability of right skilled manpower as entrepreneurs complains about skill mismatch. Given that startups
are emerging as major job creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.

References
1. Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small
and Medium Enterprises Development Act, 2006-Department-Related Parliamentary
Standing Committee (2013)
2. Transferred to Ministry of Skill Development & Entrepreneurship vide GoI Order
No.9(1)2015-EDI dated 22nd May 2015
3. ibid
4. Entrepreneurship in India, NKC, 2008

140
5. Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015,
San Jose, California)
6. http://yourstory.com/2015/10/indian-startups-invested/
7. Young Entrepreneurs turn Angels for Younger Startups, Times of India, June 30, 2014.
8. Investopedia
9. https://www.quora.com/Peter Baskerville
10. Economic Times, 11th June,2015
11. http://www.indiainfoline.com/article/news-sector-banking-financials/sidbi-launches-
india-aspiration-fund-and-sidbi-make-in-india-loan-for-enterprises-scheme
115082000192_1.html
12. Source: http://trak.in/india-startup-funding-investment-2015/

ROLE OF GOVERNMENT IN ENTREPRENEURSHIP

DEVELOPMENT

141
 *O. Naresh, Research Scholar, Dept. of
Commerce & Business Administration,
Acharya Nagarjuna University,
Nagarjuna Nagar, India.
Email: ogiral.naresh@yahoo.com

** Dr. J. Revathy, Principal &

Associate
Professor,
PG Department of Commerce &
Management
Studies VRS & YRN College,
Chirala, Andhra Pradesh, India
Email: revathy_jagarlamudi@yahoo.com

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----------------------------------------------------------------------------------------------------------------
-----Abstract:

In recent decades, economic growth in countries around the world has become
increasingly dependent on the dynamism of Entrepreneurship. This is especially important in
the transition economies. The creation of a new SME sector in India as a transition country
may play an important role in the process of economic regeneration and job creation. The
paper sets out an approach to analyzing the development of Business Entrepreneurs in India.
We have focused on (i) attitudes of entrepreneurs in the private sector towards the role of
government in Entrepreneurship development through provision of assistance to
Entrepreneurs in India, (ii) the business environment in which firms operate, and (iii)
attitudes of the employed in government sector towards the role of government in SME
development through the provision of assistance to SMEs in India. The paper reviews the
literature on these three approaches and available evidence on relevance to understanding the
performance of SMEs as main agents of entrepreneurship in the India.

Key words: Entrepreneurship, Development of Indian Economy, Government

schemes.

Introduction:

It is reported in entrepreneurship literature that several variants of definition of

entrepreneurship concept exist for the reason that entrepreneurship epitomizes a complex
phenomenon, being examined as a process, a resource or a state-of-being. In line with this,
researchers classify entrepreneurship into three main groups. The groups are behavioral
definitions occupational definitions synthesis definitions. This study will adopt the behavioral
definition of Schumpeter. Schumpeter , defined entrepreneurship, as making new
combinations which include the introduction of new goods, new methods of production,
opening of new markets, new sources of supply and new organizations. The importance of
entrepreneurship development in several economies globally cannot be overemphasized; as
such majority of countries worldwide have established programmes to support
entrepreneurship within their communities. One of the support schemes that spur
entrepreneurship development is the business incubator and the policy tool to achieve this is
the business incubation initiative.

143
 Economic development has been defined by as the method of creating wealth by the
gathering of human, financial, capital, physical and natural resources to produce marketable
goods and services. Rice and Matthews reported that the main goal of business incubation
initiative is entrepreneurship development. In other words an incubators main goal is to
produce successful firms that will leave the programme financially viable and freestanding.
Business incubators within such programmes serve as places where entrepreneurs receive
value-added support and access to critical tools, information, education, contacts, capital, and
other resources that may otherwise be unaffordable, inaccessible, or unknown to them. These
resources can be made available by a responsive government to fill gaps that have been
identified in entrepreneurship support activities stated that economic development is one of
the objectives that drive each incubator.
Other studies in entrepreneurship and economic development have focused on the role
of government as the lead entity in the entrepreneurial development study. Thus, this study
fills the gap by proposing a study where government policy moderates the relationship
between entrepreneurship and economic development. Against this backdrop, this study seeks
to identify the salient role of government enactment towards entrepreneurship in particular
and the importance attached to the other factors of production in general. In the context of
this study, three variables will be studied. They include entrepreneurship which includes start-
up motive,
Creativity and innovativeness and risk taking. The second variable is the economic
development which is composed of job creation, SME development and Wealth creation. The
third variable is government policy which consists of policy implementation, supportive
government policies and government funding. In this paper we seek to contribute to the
entrepreneurship literature. Specifically, this paper aims at examining the importance of
government policy in the entrepreneurial development.
Objectives of the Study:
1. To Study the Role of government in providing the subsidiaries to Entrepreneurs.
2. To determine the Entrepreneurship development through government schemes in
Entrepreneurship training institutions.
3. To examine the role of Entrepreneurship in Economic development of the nation.
Research Methodology:
The study is fully based on Secondary data source from various Entrtrepreneural
organizations, journals, research papers and magazines etc. To be used for this study.

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Review of Literature

It has been established that entrepreneurship is a very vital ingredient for job creation
as well as economic development as the success of income generation for the major group of
both rural and urban inhabitants without recognized paid job highly depends on
entrepreneurship. The relationship between entrepreneurship and economic development has
been studied extensively both at the local, state and federal levels. Kumar and Liu study
reveal that entrepreneurial sector contribution to employment and GDP is on the increase. For
this reason suggested that governments should minimize the constraints on entrepreneurship.
In the case of government support policies, it is assumed that since government is in the lead
for entrepreneurial development, it should provide the much needed resources within its
capability. Such resources include provision of environment conducive to business that will
highly promote entrepreneurship. Government policy in this contexts any course of action
which aims at regulating and improving the conditions of SMEs in terms of supportive,
implementation and funding policies by the government. Based on this definition,
government policy as it relates to entrepreneurial practice is targeted at encouraging
entrepreneurship by making a favorable environment for the entrepreneurs. This, it does
through enactment of guidelines that will regulate entrepreneurial activity generally for the
reason that entrepreneurship is the bedrock of a nations path to industrialization.
Furthermore, government needs to enact policies that would be user friendly to the
entrepreneurs. Pals argued that there is a need for government policies as they relate to
entrepreneurship to be successfully implemented irrespective of which administration is in
power in order to achieve the goals of the guideline which often times is always lacking.
Government of most countries especially developing countries have in the past invested so
much efforts and resources in establishing policies intended to uplift entrepreneurship . Cases
in point are in China, Brazil, Saudi Arabia, Malaysia and Nigeria. The Chinese government
has made concerted efforts through policies and resources on the development of high
technology businesses.
Role of Government in Providing the Subsidiaries to the Entrepreneurs.
The entrepreneurs and their dreams that create economic opportunity for cities,
regions and countries. So, what can governments do to support and encourage innovation
development from entrepreneurs?

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1. Create incentives for risk capital. Establish policies (e.g. reduced capital gains taxes)
and programs (e.g. matching funding with the private sector such as the SBIR from the
US government) to ensure the availability of risk capital.
2. Establish incentives for small and large businesses to co-innovate together. Create a
tax and IP incentive for large businesses to invest, partner and support the innovations
created by small businesses.

3. Encourage entrepreneurs to invest in R&D. Eliminate the negative incentives such as

the US governments AMT that wipes out any R&D tax credit for most small businesses.

4. Build leverage into innovation programs. Establish incentives (reduced red tape,
special infrastructure investment, hiring and training incentives, etc) to invest in common
areas thereby creating an ecosystem of participants (university, investors, and
entrepreneurs.

GOVERNMENT SUBSIDIARIES IN VARIOUS ACTIVITIES:

1. Investment subsidy:
2. Reimbursement of Stamp duty, Transfer duty, Mortgage & Hypothecation duty
3. Reimbursement of land cost in Industrial Estates/Industrial Development
Authority/Industrial Parks (IE/IDA/IPs)
4. Reimbursement of land conversion charges
5. Reimbursement of Tax:
6. Tax on end product/intermediate product
7. Reimbursement of power consumption charges.
8. Reimbursement of Interest Subsidy.
9. Seed Capital Assistance
10. Reimbursement of expenses incurred for Quality Certification/Patent Registration
11. Incentives for Swachh Andhra
12. Reimbursement of cost involved in skill up gradation and training
13. Textile industry
14. Marketing incentives
15. Reimbursement of Transportation charges
16. Special Incentives for Biotechnology Units
17. Guidelines for SCSP/TSP schemes and B.C. Entrepreneurs
18. Service Sector projects by the SC/ST entrepreneurs as listed at Annexure- III
Proposed Scheme on Entrepreneurship Development in India:

An entrepreneurship development scheme is currently being developed by Ministry of

Skill Development and Entrepreneurship. The scheme will be designed around the following
major elements:

146
1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Approved for another four years (2016-2020) to benefit 10 million youthPradhan
Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill
Development & Entrepreneurship (MSDE).

2. UDAAN:
UDAAN is a Special Industry Initiative for Jammu & Kashmir in the nature of
partnership between the corporate of India and Ministry of Home Affairs and implemented
by National Skill Development Corporation. The programme aims to provide skills training
and enhance the employability of unemployed youth of J&K. The Scheme covers graduates,
post graduates and three year engineering diploma holders.

3. Standard Training Assessment and Reward (STAR) Scheme:

The National Skill Certification and Monetary Reward Scheme, known as STAR
(Standard Training Assessment and Reward), was operational between August 2013 and
September 2014.

Schools Expected
State/Board (In 2014- Sectors Number
15) 2014-15
Auto, Healthcare, Retail, Security, IT-ITeS,
Haryana 240 23,000
Beauty and Wellness and Sports
Auto, Healthcare, Retail, Security, IT-ITeS,
Himachal Pradesh 200 18,000
Agriculture
Uttarakhand 44 Auto, Healthcare, Retail, IT-ITeS 5,000

Madhya Pradesh 50 Auto, IT-ITeS 2,500

Auto, Retail, IT/ITES, Security, B&W and
Punjab 100 5,000
Healthcare
Automotive, Gems &Jewellery, Healthcare,
Rajasthan 70 3,500
Travel & Tourism and Beauty & Wellness
Auto, Healthcare, IT-ITeS, Construction,
Maharashtra 350 15,000
Capital Goods
Nagaland 6 IT-ITeS 300

Karnataka 100 Auto, Healthcare, IT-ITeS, Retail 15,000

Chhattisgarh 30 Automotive, Retail and IT-ITES 2,000

1. Educate and equip potential and early stage entrepreneurs across India:
2. Connect entrepreneurs to peers, mentors, incubators:

147
 3. Support entrepreneurs through Entrepreneurship Hubs (E-Hubs):

4. Catalyses a culture shift to encourage entrepreneurship:

5. Encourage entrepreneurship among underrepresented groups:

6. Promote Entrepreneurship amongst Women:

7. Foster social entrepreneurship and grassroots innovations:

16th Youths (2017) Profile as Respondents of Primary Survey, Andhra Pradesh

16th YOUTHS PROFILE IN , ANDHRA PRADESH(2017)

Trainees 33%
Employed 17%
Self employed 19%
Unemployed 31%

(Source: A survey of National Skill Development Centre).

148
List of Supporting Institutions to Entrepreneurship Development

149
1. National Institute for Entrepreneurship and Small Business Development
(NIESBUD)
2. National skill development centers (NSDC)
3. Micro small medium enterprises (NSIC)
4. District industry centers (DIC)
5. Entrepreneurship Development Institute of India(EDII)

The Role of Entrepreneurship in Economic Development of the Nation

The important role that entrepreneurship plays in the economic development of an

economy can now be put in a more systematic and orderly manner as follows:

1. Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment
problem in the country, i.e., the root of all socio-economic problems.
3. It promotes balanced regional development.
4. It helps reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and even political power in the
interest of the country.
6. It encourages effective resource mobilization of capital and skill which might otherwise
remain unutilized and idle.
7. It also induces backward and forward linkages which stimulate the process of economic
development in the country.

Conclusion

The main role which should played by the government is to do things which are not
presently done by any other bodies. The most important development in the post
independence period has been the growth of number of key institutions to promote, assist and

150
develop entrepreneurs to initiate industrial growth in the country, the country has laid a strong
foundation broad based its infrastructure and provide much needed support & assistance

REFERENCE:

1. Science Journal of Business and Management2014; 2(4): 109-115Published online

September 30, 2014 (http://www.sciencepublishinggroup.com/j/sjbm) doi:
10.11648/j.sjbm.20140204.12 ISSN: 2331-0626 (Print); ISSN: 2331-0634 (Online)
2. Toma, S.-G., Grigore, A.-M., and Marinescu, P.Economic Development and
Entrepreneurship.Procedia Economics and Finance, 2014. 8: p. 436-443.
3. Naud, W.A., Entrepreneurship and economic development: Theory, evidence and policy.
2013, IZA Discussion Paper.
ENTREPRENEURS IN THE ERA OF GST
P. Anitha Saravanan
Research scholar, under the guidance of Dr. R. Siva Ram Prasad,
Department of Commerce & Business Administration, Acharya Nagarjuna University,
Guntur.

----------------------------------------------------------------------------------------------------------------
-----
Abstract: Entrepreneurship is a rapidly rising concern of a modern competitive economy
and its contribution in economy is viably recognized worldwide. It is the purposeful activity
of an individual or a group of associated individuals, undertaken to initiate, maintain or
organize a profit oriented business unit for the production or distribution of economic goods
and services. Goods and Services Tax (GST) will give a boost to Indian economy and also
help the entrepreneurs to become stable in Indian Market. GST will help in streamline of the
business and create a common market for the whole country. It will help entrepreneurs to
focus on their business rather than being worried about tax compliances. GST is set to
benefit entrepreneurs of all kind, with a transformational shift in the indirect tax
administration in India. This paper focuses to highlight the main points of GST and its
working and impact on entrepreneurship and business.

Key words: Entrepreneur, GST

Introduction:
The entrepreneur is someone who specializes in making judgmental decisions about
the coordination of scarce resources. The term emphasizes that the entrepreneur is an

151
individual. As G. L. S. Schackle wrote, The entrepreneur is a maker of history, but his guide
in making it is his judgment of possibilities and not a calculation of certainties, and
identified uncertainty bearing as the economic function of the entrepreneur. According to
Schumpeter, the entrepreneur is the prime mover in economic development and his function
is to innovate. It is defined and established in traditional theories that Investment in new
knowledge increases the technology opportunity set and sharpens the ability to look into the
future. Entrepreneurial activity thus could be very well understood as the activity that holds
the discovery, evaluation and exploitation of opportunities within the defined established
framework and how these opportunities are discovered exploited is related to institutional
arrangement of the country or the individual.

Characteristics of Enterpreneurs:
To be successful entrepreneurs one has to acquire and develop certain qualities, namely:
a) High motivation for achievement of goal,
b) Insatiable drive and persistent enthusiasm,
c) Ready to take risk and face challenge,
d) Technical expertise,
e) Spirit of innovation,
f) Hard working, dedication, commitment and self confidence,
g) Willingness to take advice/ learn from the failure and use of Feedback,
h) Effective management of time.
During the study we found four types of ventures:
Independent start-ups;
Spin-offs;
Acquisitions;
Corporate ventures
How was the necessity entrepreneurship born? After the fall of the Berlin Wall many
uneconomical factories were closed in Central Europe as economies became integrated into
the global economy. Those workers who had jobs in the plants and factories of the former
socialist countries were productive members of society. However, as factories were closed
one after another, many of these workers found them- selves with no other options for work
than self employment necessity entrepreneurship. As one would expect, the influx of many
former wage workers into necessity entrepreneurship resulted in several years of negative
GDP growth. When a new business opportunity is taken up or exploited it is assumed that it

152
will lead to economic development but on the other hand taking up of necessity
entrepreneurship may not lead to the same. It also may be the case that under development
may happen due to self employment. Many countries have some level of both opportunity
and necessity entrepreneurship, studies suggest that the ratio of opportunity-to-necessity
entrepreneurship could be a useful indicator of economic development; we can say it can also
act as a guide for development policy for the policy makers. So the equation comes out to be
of positive relationship between the opportunity ratio and GDP per capita. The suggestion
could be given to less developed countries that they should focus on strengthening General
National Framework Conditions, and developed economies policy should focus on
strengthening the entrepreneurial framework conditions.
GST:
The Goods and Services Tax (GST) is a vast concept that simplifies the giant tax
structure by supporting and enhancing the economic growth of a country. GST is a
comprehensive tax levy on manufacturing, sale and consumption of goods and services at a
national level. The Goods and Services Tax Bill or GST Bill, also referred to as The
Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, initiates a Value
added Tax to be implemented on a national level in India. GST will be an indirect tax at all
the stages of production to bring about uniformity in the system.
On bringing GST into practice, there would be amalgamation of Central and State
taxes into a single tax payment. It would also enhance the position of India in both, domestic
as well as international market. At the consumer level, GST would reduce the overall tax
burden.
Various central taxes that will be subsumed in GST are:

Central Excise Duty,

Additional Excise Duty,

Service tax,

Additional Custom Duty,

Special Additional Duty and

Central Sales tax.

In order to avoid the payment of multiple taxes such as excise duty and service tax at
Central level and VAT at the State level, GST would unify these taxes and create a uniform

153
market throughout the country. Integration of various taxes into a GST system will bring
about an effective cross-utilization of credits. The current system taxes production, whereas
the GST will aim to tax consumption. Out of a diversified range of proposals that are
necessary to encourage the startups, Goods and Services Tax (GST) is the one, which is quite
important too in terms of indirect tax perspective.
Statement of problem:

Entrepreneurial skills and knowledge, their talents and abilities in business and
compelling desire of wanting to do something positive are some of the reasons for the
entrepreneurs to organize industries. Entrepreneurship leads to break the inequalities and
reduce the poverty in the economy. The purpose of the study is to explore and determine the
problems faced by entrepreneurs in the recent changes in the taxation system. It also aims to
understand the various motivational factors and policies influence them to start their business
and also make an evaluation regards government support activities for GST implementation.
Objectives of the study:

to know the favourable impacts of GST on entrepreneurs

to know the problems faced by the entrepreneurs for the implementing GST
To study the policies, programmes, institutional networks and the involvement of
support agencies in promoting entrepreneurship.

Research methodology:

The purpose of methodology is to describe the process involved in research work. The
present study is based only on secondary data. The data were collected from books, journals,
and websites.
Favourable impacts of GST on entrepreneurs
Ease of starting a business by bringing uniformity in the Centralized registration
process.

An easy regulatory mechanism will bring out benefit not only to new age business,
but also helps to attract more foreign investment from the global market.

Higher exemption to new business by extending the limit up to 25 lacs which will
bring down the tax burden to newly established business.

GST will make the process of paying tax simpler by merging all taxes of different
states.

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 In GST, there is no difference between sales & services and thus tax will be calculated
on total basis.

GST will reduce the logistic cost of the company producing non-bulk goods by 20%.

GST eliminate the cascading effect of multiple Central & States taxes.

GST is a destination base tax system i.e. the liability to pay tax is only generated after
the goods/ services reach to the customers.

GST bring down the fiscal deficit, boost GDP & bring economic integration in the
country.

GST is levied only at the point of sale & not on the purchase i.e. levied only by the
last dealer and make the product cheaper for the final consumer.

GST is about to create a unified market by cutting the cost of various taxes imposed
by central and state government

In previous tax laws, various input tax credit is not available for set off, after GST
implementation this problem gets resolved.

The inclusions from the Traders association Confederation of All India Traders also
deducted the point that GST will surely increase the compliance policies and structural
working of the business units worthwhile but the building of the framework online and
creating knowledge and awareness may prove lacking in the case of small business units.
Problems faced by the entrepreneurs in implementing GST:

The registration on multi stages can be an issue if the business is doing the trade with
multiple states because now it is mandatory to register with each state you are doing
business with
The monthly return filing procedure can create problems for businesses as they have
to comply with it else they will be burdened with Rs. 100 per day penalty which is not
favourable even for their compliance rating on the portal

As there are total 36 returns to be furnished in a year, to cope-up with the system they
have to hire an accountant or ask the third party to do the return filing work. So, the
burden of return filing can increase the cost for businesses

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 For e-commerce operator, it became more complicated because they dont have any
threshold limit to exempt from the law and they have to register and track the supply
of each goods

SMEs dealing with supply to end-users can face the burden as there is no tax
exemption for supply of goods under input credit and it will increase the cost of the
product

It can create mismatch in society as there are same tax on luxury goods and normal
goods; it can make rich to be more rich and poor to be poorer

There is variation in demand-supply ratio due to increased raw material cost. So it is

expected that the profitability and debt ratio for SMEs can be burdened if they are not
able to overcome the tax fumes. The last resort for the SMEs is to increase the product
prices so that they can resist the overload

Policies and programs introduced by government in promoting entrepreneurship:

The government supports innovative enterprises and entrepreneurs in a number of

ways
Promoting cooperation between researchers and the private sector
The government is working with the private sector and knowledge institutions to
improve public-private partnership.
Reducing the regulatory burden on entrepreneurs
The government is taking steps to reduce the regulatory burden on entrepreneurs.
These include granting permits more quickly or even automatically and making greater
use of digital technology.
Developing IT tools for entrepreneurs
Providing government services online reduces the regulatory burden on entrepreneurs.
IT also offers unlimited scope for new products or for making business processes more
efficient.

Better links between education and the labour market

The government also wants to establish better links between education and the labour
market. It is important for young people who have finished their training to find a job quickly
and for there to be enough skilled workers for companies.

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 Better cooperation with the franchise sector
The government and the franchise sector created a code of conduct. An independent
disputes committee will also be established. These measures should improve cooperation in
the sector and prevent issues like unfair distribution of income between the entrepreneur
(franchisee) and the owner of the trading name (franchisor).

Retail Agenda
Customer behaviour and preferences are changing. More and more purchases are
being made online. The governments 2015 Retail Agenda describes these and other
developments in the retail sector. It also lists the 20 agreements reached between the
government and the retail sector. These include new ideas on combined zoning for shops,
cultural establishments and hospitality businesses, and additional training for shop workers.
Increasing scope for finance
The government has various financial schemes for:

entrepreneurs wanting to expand their businesses quickly;

Innovative entrepreneurs.

Conclusion:
An entrepreneur is one who plays significant role in the economic development of a
country. The most important challenges faced by new entrepreneurs include Developing the
Vision and Business Idea, Raising Capital for Startup, Assembling a Business Team, Finding
the Right Business Location, Finding Good Employees, infrastructural facilities etc. So it is
necessary to overcome these challenges in order to conduct an efficient business. GST
facilitates various benefits for entrepreneurs. It might have affected entrepreneurs due to
procedural difficulties such as registration, returns filing etc., but in the long run, it is going to
break all the hurdles for startups and lays a great path for the countrys development.
References:
1. https://blog.saginfotech.com/impact-gst-on-startups-smes

2. https://blog.saginfotech.com/gst-benefits-for-startups-in-india
3. The Chartered Accountant journal, ICAI may 2017, Regd. With the RNI No.738/57
ISNN 0009-188X

4. The Management Accountant journal, ICMA July 2017, Regd. With the RNI
No.12032/66

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 5. https://yourstory.com/2017/07/impact-gst-small-businesses-india-tax-finance-arun-
jaitley/

6. https://gst.registrationwala.com/gst-impact/impact-of-gst-on-entrepreneurs

RELATION BETWEEN ENTREPRENEURSHIP AND ECONOMIC GROWTH

THROUGH MANUFACTURING SECTOR: REVIEW

P.Daniel Paul*1,2, V. Srinivasa Prasad3

1
Department of Communications and Soft Skills, K L University, Green Feilds, Vaddeswaram,
Guntur, Andhra Pradesh, 522 520.
Department of Human Resource Management, University College of Arts and Commerce,
Acharya Nagarjuna University, Nagarjuna Nagar, Guntur
3
PG Department of Commerce & Management Studies VRS & YRN College, Vodarevu Road,
Chirala, Andhra Pradesh, 523157.
Email: danielpaul1987@gmail.com
Abstract

Entrepreneurship is the key to economically developing country like India. It is

important as it utilized local resources, employment and rural development. Entrepreneurship
especially manufacturing industry is of significant importance to the development of any
economy. Developing countries like India largely depend on manufacturing industry for
growth and employment. Diversity of resources and the varying degree of skills and
qualification of the available labour makes it essential to understand the importance of both
the small as well as large scale industries. The small-scale sector, largely dependent on the
strengths of our traditional skills and knowledge, creates largest employment opportunities,
next only to Agriculture. It also helps in alleviation of poverty and brings about equitable
distribution of income and wealth. At the same time the large scale industry, apart from
providing job opportunities, plays important role in promoting exports resulting in increased
foreign exchange earnings and expanding demand base for domestic products leading to
overall inclusive growth. National manufacturing policy aims at enhancing the share of
manufacturing in GDP to 25 per cent within a decade and creating 100 million jobs. It also
seeks to empower rural youth by imparting necessary skill sets to make them employable.
Manufacturing sector has the potential to play a crucial role for India to achieve its goal of
becoming the fastest growing economy in the world. And the right mix of strong commitment
from the government as well as the industry can make this a reality.

Keywords: Entrepreneurship, Manufacturing Sector, Economic Development

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1. 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.

To understand the nature of entrepreneurship, it is important to consider some of the

theory development so as to better recognize the emerging importance of entrepreneurship.
The research on entrepreneurship has grown dramatically over the years. As the field has
developed, research methodology has progressed from empirical surveys of entrepreneurs to
more contextual and process-oriented research. As yet, no comprehensive theory base has
emerged, however. A theory of entrepreneurship is defined as a verifiable and logically
coherent formulation of relationships, or underlying principles that either explain
entrepreneurship, predict entrepreneurial activity (for example, by characterizing conditions
that are likely to lead to new profit opportunities to the formation of new enterprises), or
provide normative guidance (that is, prescribe the right action in particular circumstances). As
we are now in the new millennium, it has become increasingly apparent that we need to have
some cohesive theories or classifications to better understand this emerging field. In the study
of contemporary entrepreneurship, one concept recurs: Entrepreneurship is interdisciplinary.
As such it contains various approaches that can increase one's understanding of the field.
Thus we need to recognize the diversity of theories as an emergence of entrepreneurial
understanding

Indian economy which has traditionally been agriculture based, is taking big leaps
towards promoting manufacturing which constitutes 16 per cent of GDP in India. But, its
contribution to employment sector and growth is well below its true potential. Restrictive and
rigid labour laws, abundance of unskilled workforce over skilled workforce, lack of
technology innovations are some of the factors contributing to this.

Inadequate growth in manufacturing has had its adverse impact on employment

generation in India. The current mismatch between distribution of workforce and value added
in agriculture is one of the main reasons for the large number of poor in our country. This
needs urgent correction. Manufacturing has to be the sponge which absorbs people who need
to move out of agriculture in pursuit of higher incomes. In a highly globalised economy, the

159
need for enhanced export competitiveness needs no introduction. India must aim to match
China in manufacturing given the low-cost labour with the added virtue of skills. The share of
the manufacturing sector in the gross domestic product in India is 17 per cent compared to 33
per cent in China, 29 per cent in Korea, 25 per cent Brazil and 27 per cent in Thailand.
However, we are short in other resources and infrastructure that investors seek, a weakness
that has checked the flow of investments into skill-intensive manufacturing.

The present paper provides an overview of the empirical evidence concerning the
relationship between independent entrepreneurship, also known as self-employment or
business ownership in manufacturing sector and economic development.

2. Important reason for the boom of entrepreneurship

Entrepreneurship has become a hot policy issue. The rise of solo self-employment is
important because it increases the flexibility and productivity of the economic system, while
contributing to a higher degree of job satisfaction. On the downside the re-emergence of self-
employment also increases insecurity for those involved and income inequality. The upward
trend of innovative and/or ambitious entrepreneurship at the high end of economic
development is of particular interest for competitiveness, economic growth and job creation.
Policymakers in advanced economies should be aware of both revolutions and tailor their
policies accordingly.

Recent trends in some sectors, such as auto and auto components, specialty chemicals,
generic drugs and engineering, however, suggest a the author is Director, Institute of Small
Enterprises and Development. Cochin. He is recipient of the Birla National Fellowship in
Economics, has served as Member of the Dr. S. P. Gupta Committee on Development of
Small Enterprises, at the Planning Commission. He is also a Chevening Fellow of the Foreign
and Commonwealth Office of the U.K. Government. He is founder of the India Micro, Small
and Medium Enterprise Report Series, and has authored, Small Enterprise Development: The
Experience of the North and the South (Oxford). Vast scope for global manufacturers to
locate here. The policy thrust outlined by the Prime Minister through the two flagship
programmes, Make in India and Skill India, should be understood against this background.
And worryingly, it is losing depth. While Chinas GDP is 3.8 times larger than Indias, its
production of machine tools, the mother industry of manufacturing, is 55 times more! India
needs a strategy to grow manufacturing 12 per cent to 14 per cent per annum, create 100
million new manufacturing jobs in the next 15 years to realise its demographic dividend,

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and create more depth in capital goods industries and innovation for its manufacturing sector
to be competitive and sustainable. An innovation strategy must be closely intertwined with an
integrated manufacturing strategy. This demands a radical departure from the strategies we
are used to.The recent budget of the Government has made efforts to provide favourable
environment and facilities to promote domestic as well as international industry by
simplification, rationalization and digitization of processes. Initiatives like Make in India,
Skill India, MUDRA etc are aimed at encouraging the spirit of entrepreneurship and making
India the manufacturing hub of the world. The budget also tries to address issues relating to
lack of robust infrastructure, constraints on energy supply, importance of innovation and
technology etc. The articles inside take a look at what has been done so far and what more
needs to be done to give much needed impetus to the sector.

3. Entrepreneurship Policy

Entrepreneurs, given the right market signals, can create growing businesses at a
time of high uncertainty, caused by rapidly changing technological and socio-political
environment

Employment generation policies in India consist of a number of self-employment

schemes which can be broadly clubbed as SME policies. These policies, in essence, represent
a patchwork of financial measures to mitigate the disadvantages of small businesses vis--vis
their large counterparts. SME policies mainly focus on creating small businesses, but not on
entrepreneurs. Entrepreneurs, given the right market signals, can create growing businesses at
a time of high uncertainty, caused by rapidly changing technological and socio-political
environment. The world over, it is now being increasingly felt that massive allocation for
self-employment schemes and creating a good climate for small business are not enough to
ensure growth oriented entrepreneurial businesses, generate more employment and provide
sustainable competitive advantage.

Measurement and monitoring of the progress regarding the shifting of the Indian
economy to an entrepreneurial mode is crucial. Mechanisms need to be evolved for this. The
implementation of a national entrepreneurship policy cannot be left to a single Ministry
alone. Inter-ministerial working groups are necessary to make entrepreneurship development
a priority. At the local level, this must translate into cooperation and collaboration between
different educational, financial and socio-cultural organisations, both from the public as well
as private sectors. This is not possible without a strong political leadership at local levels that

161
has the capability tobring together a broad spectrum of professionals and social activists. A
young leadership that understands the need for an entrepreneurial economy better, is probably
better suited to drive the process of entrepreneurial transformation of the nation.

Having a manufacturing competitiveness agenda in place, this is the right time for
India to launch a National Entrepreneurship Policy. The rapid spread of globalisation has
stimulated integration process of local SMEs into the international economy. In this dynamic
marketplace, strategy is of particular importance to businesses. Therefore, local enterprises
should try to construct their own brands or form alliances with international enterprises in
order to be better equipped to embrace competition; local SMEs who continue to operate in
old style single shop method should also adjust their strategy and grasp every opportunity to
improve their competitiveness and business environment, so as to improvethe business
environment, create a distinctive brand, and finally to excel in the competition.

4. Hindrances in the Sector

The manufacturing sector is still afflicted by problems of land acquisition,

rehabilitation, multiple laws and rules to adhere to, lack of clarity for the entrepreneurs,
multiple and complex process of clearances to be obtained to set-up a factory, lack of
marketing strategies and export orientation, lack of infrastructure, power and water supplies.
Economic Survey 2014-15 states that the manufacturing sector has one of the highest
numbers of stalled projects in the last few quarters. Among manufacturing, the majority of
stalled projects are in steel, cement, garments and processed food. 212 manufacturing
projects are stalled due to lack of funds, demand and unfavourable market conditions.

5. Policies to Boost the Sector

The manufacturing sector revolves around two sets of major participants, the
entrepreneurs and the workers. The Government comes in between these two, to balance and
facilitate the interaction of the two segments and provide enough facilities for both sides so
that the system continues to function smoothly. The policies and programmes rolled out by
the Government come in this interplay and act like a catalyst for the manufacturing sector as
a whole.

The recent policy reforms clearly reveal that government is leveraging on skill
development for ensuring sustainable entrepreneurship development in the country. However,
a proper supervision and monitoring mechanism should be set to analyze the outcome of

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these initiatives on periodic basis and to avoid the overlapping of activities performed by the
newly established government agencies and programmes. According to survey undertaken by
Local Circles, 59 percent of citizens still feel that corruption and delays prevent the growth of
entrepreneurship in India while only 14 percent felt funding as the main problem. Thus, the
effectiveness of the recent policy reforms needs to be checked by analyzing the benefits
entailed by the entrepreneurs on regular basis to ensure that these initiatives deliver
maximum results unlikely the previous reforms.

According to Economic Survey 2015-16, start-up sector is witnessing unusual

dynamism with focus mainly on ecommerce and financial services sector which led to huge
growth of technology enabled start-ups in the year 2015. Therefore, the Start-up India
mission of government should go beyond digital or technology start-ups and enable
entrepreneurship in manufacturing sector to ally with Make in-India drive and particularly at
grassroots level so as to provide self-employment opportunities to technologydeficient
section of the society.

Conclusions

Entrepreneurship acts as a catalyst for the economic prosperity of a nation as it leads

to generation of employment, contribution in national income, rural development,
industrialization, technological development, export promotion etc. In India, various
initiatives have been taken by the government from time to time for entrepreneurship
development in the country. However, literature reveals that entrepreneurs face a number of
problems which obstruct the growth of entrepreneurship. To meet these challenges, a need
was felt by government to initiate a new set of policy reforms in India which has led to a
remarkable improvement in recent years. Therefore, an attempt has been made to study the
implications of the recent policy reforms of entrepreneurship in India which has made India a
hotspot destination for start-ups. The study found that most of these recent reforms are
focusing on skills development measures giving birth to technology enabled start-ups. Hence,
it is suggested that a proper supervision and monitoring mechanism should be set to analyze
the outcome and effectiveness of these initiatives on periodic basis and entrepreneurship
development at grassroots level should be targeted so as to provide self-employment
opportunities to technology-deficient section of the society.

PROBLEMS AND PROSPECTUS OF ENTREPRENEURSHIP IN INDIA

163
 Dr. R. Emmaniel
Professor & HOD, St. Ann,s col.of Engineering & Technology.
Chirala. Andhra Pradesh,
Email. emmanielr@yahoo.com
Ph. 9440873408

P. Vikram Babu
Asst professor, St. Ann,s col.of Engineering & Technology.
Chirala. Andhra Pradesh,
Email. vicky.paladugu@gmail.com
Ph:7995320049
Abstract
Entrepreneurship is the risk taking by innovators called entrepreneurs in an economy.
Typically, entrepreneurship involves the creation of new products, new ways to produce
products, or new businesses. Innovation is the intrinsic characteristic of every developed
nation. Innovation fuels a nations growth, and a highly innovative country has the potential
to reach pinnacle of prosperity. The actions of entrepreneurs are so valuable to the operation
of a dynamic, changing economy that some economists consider entrepreneurship to be a
fourth factor of production joining natural, human, and capital resources. This paper focuses
on the importance of innovation in entrepreneurship development as it is only innovation,
which made the products and services better from the others. This paper clearly depicts the
current role of innovation in entrepreneurship development. It also highlights how these
innovations can lead to economic growth of our country.

Key Words: Growth, Government Policy, growth of Indian economy, innovation in business.

Introduction
To quote the economist, T. N. Srinivasan, Innovation and Entrepreneurship is a two-
way relationship. In one sense, in innovation, someone finds something but that somebody
may not be equipped to translate that something into a commercial proposition. That is where
Entrepreneurship comes in.

"Innovation is the specific instrument of entrepreneurshipthe act that endows

resources with a new capacity to create wealth" (Drucker, 1985). An entrepreneur is a
person who is willing and able to convert a new idea or invention into a successful
innovation. Invention means generation of new ideas whereas innovation means bringing that
idea into life. Eentrepreneurs are those persons who take the risk to bring those ideas into life.
The success of a business enterprise depends upon its novelty or the unique thing, be it a
product or any feature, which it offers to its customers (Sharma and Chrisman, 1999). The

164
vitality of entrepreneurship and innovation can be highlighted by the fact that they form the
backbone of a majority of the economic s growth in a given country. Thus, if USA is the
largest economy, it can be attributed to the commitment towards research and innovation.

In research work, an attempt has taken to explore all important factors in relation of
entrepreneurship and innovation. In India, how education system is playing a significant role
in promotion of entrepreneurship is a very challenging issue. Data collected from the
National Knowledge Commission defines how several numbers of entrepreneurs are
increasing over a period of time with innovative business plans.

The Objective of this paper is to understand the role of innovation in entrepreneurship

development in India, and also try to understand the Government support for innovative
knowledge enterprises. Furthermore, it tries to examine the role of education studies in
generation of innovative ideas. The main objective will be to suggest certain measures; this
can be adopted to take the advantage of innovation. India has tremendous potential in the
field. India offers a unique incubation environment for most, entrepreneurs, greatly
distinguishing it from other western democracies. A country where almost 50% of the Indian
population is below 35 years old, it is apparent that India has a large working class, which is a
great potential and assets for a nation (Chandra, 2009). In addition, young technocrats are
also looking out for opportunities to exploit their full potential by setting up their own
ventures thus becoming job generators rather than job seekers. They are generating job
opportunities for the unemployed people.

In spite of being a developing nation with a population of over billion people, we fail
to produce the entrepreneurs, such as Narayana Murthy, Dhirubhai Ambani, Lakshmi Mittal,
Kiran Shaw in large numbers, which is required for large nation. This is deep rooted problem
and involves a minutiae analysis of our complex mindset (Menon and Ramsay, 2008).

Relevance of the Study

Given the increasing significance and visible impact of Entrepreneurship in wealth-
creation and employment-generation, we consider it critical to Indias growth and
development. This study has been undertaken to explore factors that have advanced
Entrepreneurship in India and also several other factors that could further encourage and
facilitate even greater growth through innovation.

The Role of Education Studies in Generation of Innovative Ideas

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 As discussed previously, the key generators of wealth from knowledge depends upon
the availability of the skilled human resource. These skills and competencies can be
generated in an individual through good education system. There is a fact that passion and
curiosity form the very base of innovation. An entrepreneur should have good perception of
an idea, credible business plan, and clarity of what he wants to do to become successful. This
knowledge and idea about the business can only be built through sound education system.

The purpose is to fill the gap in preparing today's youth with a CEO mindset,
supported with skills to deal with changing critical needs of the knowledge era that is
revolutionizing the global economy. Generating a critical mass of entrepreneurs oriented to
high levels of growth depends on the quality of education provided and the presence of an
environment that encourages innovation (Maqbool, 2006).

The highly rigid educational system should be more flexible one, so that students can
choose their own subjects of interests and thus design their own curriculum. This will result
in a greater level of interest, which indirectly would result in a greater level of interest with
more curiosity and passion. The schools across America follow this flexible system, which
has proved to a blessing in disguise and is now an intangible asset (Drucker, 2007).

To encourage entrepreneurship, the academic institutions must encourage students

initiatives, organizations and unions. Business plans competitions should be organized on
more frequent basis and proper guidance and assistance to prospective entrepreneurs on
various aspects, such as preparing reports, obtaining project approvals, loans and facilities
from agencies of support system, information on technologies, etc (Devarajan and
Ramnarayan, 2003). History had recorded many school and college leaders blossom into
business pioneers. Be it N Hira Nandani, Lakshmi Mittal or Arun Jaietly, they were all
leaders at their schools, colleges at some point in time. Recently, some young students from
R.A Poddar School start their very own cookie company under the guidance of the school
authorities. These facts point out to the need of developing leadership qualities at an early
stage in life.

Government Role Regarding Innovation

The government has to be investor and entrepreneur friendly, in order to exploit the
true potential. The government on its part should give a plethora of incentives to new risk
takers in order to make theirs rather than risky decision that is somewhat easier. These
incentives could include tax benefits, land allocations, water and electricity supply etc.
Novice risk takers should be provided with trouble shooters and mentors on behalf of the

166
government, so as to choose the correct path and strategy. Banks and other financial
institutions should also provide adequate credit to new ventures, so as to stimulate the
business through good liquidity. Besides helping to establish companies, government should
also regulate these companies in order to ensure that they abide by the highest standards of
business ethics (Goswami and Dalmia, 2008).
Role of Innovation in Entrepreneurship Development in India
Entrepreneurship is to take the initiative to start a new business venture with an
innovative idea or to make certain amendments in the existing product according to the
opportunities available to the entrepreneurs. To take repeated action to overcome obstacle that
may prevent them from reaching their goals. Entrepreneurs takes action on their own to get
information that will help them to achieve their objectives or clarify problems and to
successfully persuades others to buy a product or service, also to convinces' someone to
provide finance, and finally, to monitor continuous change for further innovation.

Highlights of Innovative Entrepreneurship in India

A critical eye on the power of ideas that is, innovation and bringing ideas into life
which is done through entrepreneurship together can be considered as innovative
entrepreneurship. Here an analysis of some of such innovative ideas and their success in the
business field is thus explained further.

1. Suvarna Urja wind power Pvt. Ltd., Pune: It designs and manufactures wind-turbines and
power storage systems specifically for the Indian rural power market. Since 2009, this
small company has already received orders to produce wind turbines and power systems
for four Indian states (Ramachandaran et al., 2006).
2. Sustainable technologies and environmental projects Ltd., Mumbai
3. In the focus on oil industry recycling technologies, STEPS have been developed, such as
the Poly Crack technology, to converts plastic waste into diesel. The process is more
efficient than competing technologies and leaves no heavy metal residues (pollutants).
Since 2007, STEPS efforts have received world-wide media coverage. The company has
sold their Poly Crack conversion system to several companies in India and Europe.
Promising new opportunities in the USA and South East Asia are on the horizon, and
STEPS N.A., a North American subsidiary has already been established.
4. Telugumatrimony.com: An idea of starting a Telugu portal, which later shifted its focus on
Matrimony, became a world class business. The innovative ideas of Telugu
matrimony.com are as follows:
5. Photo Protection: they saw the need from their customers about privacy.
6. Horoscope matching and creation: Another important need which created value for their
customers.
7. Profile verification: To their surprise, people opted for 3rd party verifications, while
searching for their business partner on the net

167
8. Matrimony reference: Their customers became their marketers when reference system
was put into place.
9. Payment options Through Sifi Way, tie ups with banks, creating local associates (who
get commission) in various cities.
10. Going mobile: Another trend they spotted to serve the needs of their customers
11. Partnerships, such as with Tata Sky. All of these innovative ideas lead to the success of
Telugumatrimony.com.

In May 2008, 27-year old Rajnish Sinha and his IIM-Kozhikode batch mate Siva
Cotipalli started Bangalore-based DhanaX. A microfinance firm and the idea of clubbing it
with person to person (P2P) lending, a platform where people contribute small amounts
online as loans. NGOs take up the task of disbursing these loans to needy communities in
their areas of operation. Interest is charged at 24%, of which DhanaX keeps approximately
6%. So far, DhanaX has helped its four partner NGOs acquire loans of Rs 20 lakh.

In summary, in this new era of the knowledge revolution, India must seek out and
exploit some of its inherent strengths to accelerate economic development, while creating
extremely attractive avenues for employment generation. BioTechnology (BT) and
Information Technology (IT) are the two new pillars of the era of knowledge management.

Recent surveys, such as those undertaken by Goldman Sachs and Price water house
Coopers, have estimated that India has the potential to be among the worlds leading
economies by 2050.1 In this situation, India enjoys enormous potential for the creation of
wealth through knowledge. Entrepreneurship and Innovation are the key drivers for
generating wealth from knowledge, supported principally by the availability of skilled human
resources, access to finance and the ability of the State to create an enabling environment
(Punnathara, 2009).

Outlook Business, May 5, 2007; Goldman Sachs BRIC report states that by 2050,
India could have a GDP of $37.66 trillion, just marginally less than USAs estimated $38.51
trillion. The Price water house Coopers report, The World in 2050 states that India could be
the fastest growing economy by 2050.

Science, Technology, and Innovation in the Indian context

The use of the word innovation in the national science and technology policy
lexicon is rather new. Indias Scientific Policy Resolution 1958 sought the cultivation of
science and scientific research in all its aspects. The focus was on early and large scale
development of science and technology for the wealth and prosperity of the nation. The

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1983 Technology Policy Statement focused on the need for technical competence and self-
reliance. It also mentioned technology acquisition and transfers, as well as a critical facet that
was hitherto missing from policy debate in India implementation.

The idea of innovation was inserted in the Science and Technology Policy 2003 with a
view to strengthening the national R&D infrastructure and creating a national innovation
system. Innovation implies science- and technology-based solutions that are successfully
deployed in the economy or the society. Also mentioned was the need to develop and
leverage Indias traditional knowledge, as well as to generate and manage Indias intellectual
property resources. Monitoring for speedy implementation of the policy was also given
weight age.

Barriers to Innovation in India SMEs

To improve the innovation performance of SMEs, it is very important to understand
the key barriers in the innovation ecosystem. The barriers to innovation are classified in six
categories: people, financial, information, government policy, infrastructure, and market
constraints. The Indian National Innovation Survey captures the response of the innovative
firms for different barriers and sub-barriers. The responses show the factors that firms
typically consider to be barriers to pursuing innovation. The barriers are analyzed in the
context of innovative small and medium firms; non-innovative firms as classified in the
survey are not included.

1. People and Skills as a Barrier to Innovation

Development and implementation of any innovation demand skilled labor. The need for
specialized skills in the form of scientists, technicians, or engineers is more apparent in the
case of R&D innovations. Non-R&D innovations, such as organizational and marketing
innovations, also require specialized skills and staff who are well versed in management and
marketing practices. More than 85% of innovative small and medium firms see unavailability
of skilled workers as a barrier to innovation, making it one of the foremost challenges in
SME innovation. SMEs are generally unable to recruit a highly skilled workforce due to
financial constraints and lack of adequate infrastructure. The lack of the right internal
management can adversely impact both the firms innovation capability and its overall
performance due to lack of direction, rising inefficiencies, and absence of market focus,
among others. Innovative small and medium firms perceive internal management as a barrier
to innovation.
2. Finance as a Barrier to Innovation

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 The financial barriers mainly involve the availability of internal and external finance
and the cost of innovation. More than 87% of innovative small and medium firms see limited
availability of finance from both within the enterprise and external sources as a barrier to
innovation. The cost of innovation is a key barrier for more than 75% of the innovative small
and medium firms; this clearly shows that financial constraints remain one of the biggest
barriers to SME innovation.

3. Information as a Barrier to Innovation

Timely access to valuable information is critical for SMEs to gain strategic advantage
in pursuing innovation. The inability to access key market information can seriously impair a
firms performance. The information barriers refer to access to information on technology and
markets.

4. Government as a Barrier to Innovation

Government policy and the government in itself exert a strong influence on the
innovation capacity of SMEs. The government has a critical role to play in every sphere of
innovation including access to finance and technology, capacity building and human
resources, market linkages, availability of research facilities, and access to key information,
among others, via different policies and schemes. It would not be wrong to say that the
government is the single biggest factor governing the innovation ecosystem of SMEs,
especially in the case of developing economies such as India.

5. Infrastructure as a Barrier to Innovation

Availability and access to infrastructure are crucial for R&D-based innovations. The
ability of a firm to use laboratories and research facilities inside and/or outside the premises
exerts a significant influence on its capability to develop R&D innovations. Majority of the
innovative small and medium firms do not have access to adequate infrastructure and test labs

6. Market Factors as a Barrier to Innovation

Market factors have an important role to play in innovation. Market characteristics
such as competition, protectionist nature, dominance and monopoly, and demand, among
others, affect a firms ability to innovate, especially product and market-related innovations.
More than half of the innovative small and medium firms also face the barrier of uncertain
demand for innovative products and services. Given the uncertain demand, SMEs would be
reluctant to invest their resources in developing new products and would focus instead on
improving their production and quality processes.

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7. Intellectual Property Rights (IPR) issues
The patent offices in the country work very slowly and SMEs are able to get patents
only after

Some delay. In some case, it has taken almost five years for a patent to be granted.
This hampers the introduction of new products developed by SMEs into the market.

Conclusion
Entrepreneurship is a critical aspect of the knowledge economy and India has a large
pool of entrepreneurs, who have the ability to make a difference and need to be nurtured to
achieve their potential, and provide a further boost to the Indian economy. India needs
entrepreneurs for two reasons first, to create employment and wealth and, second, to get the
most out of existing opportunities. Practical knowledge based education system should be
started that will create more interest in the students. Educational institutes should also work
as regional information centers by keeping the record of databases of the research work done
(Srinivasan, 2007). Government should also take the initiatives by not only providing
adequate support in financial terms but also by rendering training facilities to the
entrepreneurs as and when the need arises. To explore the possibility of having an all
encompassing website on Entrepreneurship as a one-stop information portal for current and
aspiring entrepreneurs.

Synergies between Education (including modern vocational education training/skill

development), Innovation (converting ideas into wealth and employment) and
Entrepreneurship should be encouraged. There is need to enact a uniform legislation for
publicly funded research that would grant IP the rights for successful results of research to
universities/research centers and also entitle the inventor to a share of the royalties from
commercialization, as a source of innovation and entrepreneurial advancement. Indias
innovation intensity could also improve significantly if more PhD and other research scholars
are encouraged by providing a supportive environment for Entrepreneurship. There is also a
need to significantly increase business incubation for Entrepreneurship (BIE) by
comprehensively exploring policy options to improve access to financing. While valuable
work is being done by Indian incubators, there is huge scope for them to become
entrepreneurial themselves by providing services such as market data, helping in preparing
business models, recruiting skilled employees, etc.

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 If India is able to use its true potential of becoming leader in entrepreneurial activities,
then the resultant financial gain are always of benefit to the country. The budding sectors to
innovate and in which Indian entrepreneurs can prove themselves the leaders are Bio-
technology and Information Technology (Saxena, 2004).

References
Export-Import Bank of India. 2012. Strategic Development of MSMEs: Comparison of
Policy Framework and Institutional Support Systems in India and Select Countries.
Occasional paper. Mumbai.

Finston, S. K. 2015. The Innovation Blueprint: Identifying, Adapting and Assimilating

Best Practices for R&D Intensive MSMEs. Washington, DC: Finston Consulting, LLC.
www.finstonconsulting.com/files/InnovationBlueprint-Final-2015.pdf

Fourth All India Census of Micro, Small and Medium Scale Enterprises 20062007:
Unregistered Sector. New Delhi.

The contribution of MSMEs to GDP, Exports, and Employment. Press Information

Bureau. July. http://pib.nic.in/newsite/PrintRelease.aspx? relied=10720

Chandra A (2009). India: Country replete with phenomenal innovation and

entrepreneurship potential. Available on the web at http://www.knowledgeportal-
in/contents/node/445,

Devarajan RTP, Ramnarayan S (2003). Entrepreneurial Leadership and Thriving

Innovation Activity, Proceed of 7th Intl. Conf. on Global Business and Eco.
Development, Bangkok,

Drucker PF . The Practice of Innovation, Innovation and Entrepreneurship Practice and

Principles, Harper and Row, New York, pp. 19-33.

Drucker PF. Entrepreneurial Strategies, Innovation and Entrepreneurship Practice and

Principles, Harper & Row, New York, pp. 207-243. Corporate Entrepreneurship, Effective
Executive, the ICFAI University Press.

Goswami A, Dalmia N, Pradhan M,Report of Knowledge Commission India 2008

Entrepreneurship in India.

Ramachandaran K, Devarajan TP, Sougata Ray , Corporate Entrepreneurship: How?,

Vikalpa, 31: 1.

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 Saxena SC, The Role of Innovation: Technology and entrepreneurship lead the way.
Prabandhan: Ind. J. Manage., 12(1): 49-65.

Srinivasan TN, Create a Framework that helps Entrepreneurs, interview to The Hindu,
Business Line.

A STUDY ON ESSENTIAL SKILLS REQUIRED FOR MODERN

ENTREPRENEURS
T. Narayana Rao1, Dr. V. Srinivasa Prasad 2
1-MVGR of College of Engineering (A),
Department of Management Studies Chintalavalasa -Vizianagaram
2-VRS&YRN College, Department of Management Studies
Chirala Prakasam-district
Abstract

Entrepreneurs are people who start their own business. They are known for taking up high
risk, having big ideas, and making major innovations that can change how others do
business. While anyone who starts a business has entrepreneurial spirit which makes them
move, true entrepreneurs are distinguished by a certain visionary quality. For success of any
business there are certain skills which are highly essential. In this research paper, well look
at the skills need to be a successful entrepreneur, and we'll explore resources that you can use
to develop the traits needed for success.

Key words: Entrepreneurs competencies, Character, Entrepreneur behavior

1. Introduction:

Entrepreneurship has long been valued as a key contributor to the growth of an economy. It is
widely believed that economies that are abundantly supplied with entrepreneurs will tend to
grow far more rapidly than those in which entrepreneurial talent is scarce. The entrepreneur
continues to play a critical part in the growth process, and there is no reason to expect that
role to disappear. An entrepreneur is an individual or group of persons who try to create
something new, who organizes production and undertakes high risk involved in the
establishment and operation of a business enterprise. Entrepreneurship Development Institute
of India(EDI) Ahmadabad conducted a research study of entrepreneurs and explore (or)
identified competencies namely, innovation, watching for opportunity, persistence,
information seeking, quality consciousness, commitment to work, efficiency lover, proper
planning, self confidence, assertiveness, persuasion, efficient monetary and concern for
people.

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2. Objective of the study:

The objective of the study is to identify the essentials skills that are required for modern
entrepreneurs.

3. Definition: Entrepreneurship as the function of seeking investment and production

opportunity, organizing an enterprise to undertake a new production process, rising capital,
hiring labor, arranging the supply of materials, finding site, introducing new techniques and
commodities, discovering new sources of raw materials and selecting top managers of day to
day operations of the enterprise
3.1 Prevailing concepts of entrepreneurship are:
3.1.1 Psychological Traits: Entrepreneurship development is due to the ability of the
rage to achieve something in their life. This concept was developed by Mc Clelland.
According to him individuals have psychological urge to achieve something new. Of
course the degree of urge varies from one individual to another. Those who have high
degree of urge to achieve in their life become entrepreneurs and all the activities
enabling them to fulfill their urges are called entrepreneurship.
3.1.2 Sociological Traits: Entrepreneurship development is also due to the
sociological traits of the individuals living in a particular place. Certain individuals
would like to attain status in the society by means of setting up of a new business or
industry. However, they are allowed to act within the constraints of the cultural norms
and religious moves that are customary in the society.
3.1.3 Economic Factors: Apart from the psychological and sociological factors,
entrepreneurship development is also due to the existing economic activities of the
state where the entrepreneurs live. Individuals learn from the existing economic
activities as how best to equip themselves for meeting the future challenges. They
collect adequate economic and technical information and decide as how best to
introduce new business that suits to the expectations of the Government and its
revised economic policies.
4.0 Review of literature:
4.1 There are many fields on what make someone an entrepreneur and what an
entrepreneurial skill is. An entrepreneur can be defined the one who organizes,
manages and assumes the need of a business enterprise. It can be defined as a person
who have decided to take control f his/her future and becomes self employed whether
by creating his own unique business or working as a member of a team at a multi

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 level vocation. He is a person who has possession of an enterprise or venture and
assumes significant accountability for the inherent risks and the outcome. He is an
ambitious leader who combines land, labor and capital to create and market new
goods or services (Stephen 1991)-(01)
4.2 Entrepreneurial skill can be defined as the ability to create something new with
value by devoting the necessary time and effort, assuming the accompanying
financial, psychic and social risks, and receiving the resulting rewards of monetary
and personal satisfaction and independence (Hisrich & Peters, 2002)-(02).
4.3 Pajarinen et al. (2006) [03] have said that entrepreneurs with higher academic
background are more innovative and will use modern techniques and models to do
business. Barringer and Bluedorn (1999) [04] have described entrepreneurs as
individuals who can explore the environment, discover the opportunities, and exploit
them after proper evaluation. Kuratko (2009) [05], in his book, distinguishes between
entrepreneurs and small business owners. He highlights that these two terms are often
used interchangeably, but both have a lot of differences in their reaction under certain
situations.
4.4 Several researchers claimed that optimism was associated with positive outcomes
in entrepreneurs, their success, and their contributions to the economies in which they
operate. Kuratko and Hodgetts suggested that optimism among entrepreneurs, even in
bad times, is an important factor in their drive toward success (Kuratko & Hodgetts,
2004) - [06].
4.7 Marcela Rodica Luca (2013)[07] Analyzed the relations between entrepreneurial
personality traits and entrepreneurial intentions in students belonging to bachelor,
master and doctoral level. From the comparison between two paired samples, one
involved in entrepreneurial training and the other one not involved, results a strong
interaction effect between involvement/ non-involvement in entrepreneurial training
and the intent of starting a business on all the entrepreneurial personality traits.
4.5 Jeya Ani J. and Lourdes Poobala Rayen42 (2014) [08] in their study says that
the rural women entrepreneurs doing family business have higher business
management skills than the family of women entrepreneurs doing private occupation,
agriculture and others. Moreover, the rural women entrepreneurs doing family
business are having higher enterprise skills than the other categories.
5.0 Types of Entrepreneurs:

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 Based on their working relationship with the business environment they are
functioning in, various types of entrepreneurs can be found. The chief categories are
these four types of entrepreneurs, i.e.

5.1 Innovative Entrepreneurs This type of an entrepreneur is more interested in

introducing some new ideas into the market, organization or in the nation. They are
drawn towards innovations and invest a lot of time and wealth in doing research and
development.
5.2 Imitating Entrepreneurs these are often disparagingly referred to as copy cats.
They observe an existing successful system and replicate it in a manner where all the
deficiencies of the original business model are addressed and all its efficiencies are
retained. These entrepreneurs help to improve an existing product or production
process and can offer suggestions to enhance the use of better technology.
5.3 Fabian Entrepreneurs These are entrepreneurs that are very careful in their
approaches and cautious in adopting any changes. They are not prone to sudden
decisions and try to shy away from any innovations or change that doesnt fit their
narrative.
5.4 Drone Entrepreneurs These are entrepreneurs who do not like a change. They
are considered as old school. They want to do business in their own traditional or
orthodox methods of production and systems. Such people attach pride and tradition
to even outdated methods of doing business.

6.0 Skills for entrepreneurs business to success:

Personal characteristics and attitudeswhich can often be hard or impossible to

change entrepreneurs can acquire skills if they are willing to learn them. Additionally,
they can hire people to work for them who have the needed skills. Either way, the
following skills are important if the entrepreneurs business is to succeed.

Ability to Plan Leadership Skills Management

Skills

Team Building Marketing Skills Interpersonal Skills

Skills
7.0 Essential skills for modern entrepreneur:

There are certain skills helps to be expertise in some key area, but these are not
defining characteristics of entrepreneurship. Instead, the key qualities are traits such
as creativity, the ability to keep going in the face of hardship, and the social skills

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needed to build great teams. If you want to start a business, it's essential to learn the
specific skills that underpin these qualities.

7.1 Creative thinking: Entrepreneurs are known for thinking outside of the box.
Anyone can start an online business or a storefront; it takes Jeff Bezos to conceive of
Amazon.com and expand an online book-selling business to using drones, streaming
media, and supplying nearly any item under the sun Creative thinking can take a
smart, capable business owner to another level of success. In cover letters and
interviews, emphasize this skill to show potential employers that you see connections
and possibilities where others do not.
7.2 Communication & Persuasion: It is a skill to be able to express an idea in a clear
and concise manner. You should be able to pick out the most important concepts of
your ideas and speak about them with clarity. You will also need to understand
thoroughly the business industry in order to be persuasive. If you are talking to a
potential investor and you get asked a hard question.
7.3 Finance. While you dont need to be a CPA (Certified Public Accountant) to run a
successful business, you should still have a decent understanding of your finances,
profit margins, cash flow and funding. The more comfortable you are with all of these
numbers, the more confident youll be, and the better decisions youll make.
7.4 Time management & planning skills: As mentioned earlier, time is a finite
resource. If you let time get away from you, you will have a hard time starting a
successful business. Your planner should be your best friend. Learn to prioritize and
plan. Setting aside several hours each week to plan for the entire week and to make
them utilized in productive way.
7.5 Strong Work Ethic: Being an entrepreneur may seem flashy and exciting. But a
lot of hard work and long hours are required to launch something new. To be
successful, entrepreneurs must execute. You'll often hear stories of entrepreneurs who
begin their workday well before sunrise, or send middle-of-the-night emails.
Entrepreneurs are relentless when it comes to completing projects and following
through on the work required to turn ideas and plans into sellable products.
7.6 Strategy. Its easy to think about the right-now aspect of your business, because
the results are easy to see. But what about the bigger picture, long-term challenges
and goals? How often are you thinking about those? Without a constant eye on your
business strategy and skilled assessment of that strategy relative to the industry and
your competition, you cant hope to grow it over time and remain competitive in the
marketplace.

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7.7 Risk Taking: Entrepreneurs often seem more comfortable with risk than other
business leaders. This can lead to tremendous failures, but also stunning successes.
Entrepreneurs are willing to live without a steady paycheck and make short-term
sacrifices for a long-term payoff. That said, the risks that entrepreneurs take are
calculated, and aren't simply done for the thrill.
7.8 Identify strengths and weaknesses: As a business owner, you dont need to be
perfect at everything. You do, however, have to understand where youre strong and
where youre weak. Assessing this will inform everything from the business decisions
you make, to the partners you bring on, and to the employees you hire.
7.9 Branding (personal and business). Whether youre striving to brand your
business or looking to establish yourself as an expert in your industry, knowing how
to do so online is essential to your success. Branding starts with being active on social
media, and is shaped through content publication, whether on or off your website. Be
aware, though, that poor content can lead to negative branding. Its important to know
how to deliver content and resources that your target audience wants and will find
valuable.
7.10 Make entrepreneur friends. According to entrepreneur Jim Rohn, You are the
average of the five people you spend the most time with. So who do you want to be?
Improve your odds of success by finding entrepreneur friends who will be able to
understand your struggles and give you much needed insight.
7.11 Connect via social networking: Along with SEO, social networks represent a
key part of any businesss marketing strategy. Not only will you need to understand
each platform, youll want to arm yourself with the best strategies for getting your
startup and personal brand noticed on each one.

7.12 Focus on your customers: To be clear, without customers, you have no

business. Make sure all of your pitches, products, and services are focused on actual
customer needs. If you dont know what these are, research and ask questions so that
youre able to give great customer service.

7.13 Learning skills: Learning is a skill. As an entrepreneur you need to be a quick

learner. You have to be willing to learn new skills constantly. Understanding and find
meaning that is deeper than the surface. You must learn to make your own arguments
(not just those made by the media), synthesize new knowledge, memorize
information, gain new relevant skills, and be able to utilize all this knowledge to
create new things and make old things more efficient.

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Conclusion:

The present study achieves the stated objective. It provides an insight for proper
understanding of the skill that are essential for modern entrepreneurial success. in this article
it has identified thirteen major skill-related that act as driving agents for entrepreneurial
success they are Creative thinking, Communication & Persuasion, Finance, Time
management & planning skills, Strong Work Ethic, Strategy, Risk Taking, Identify
strengths and weaknesses, Branding (personal and business), Make entrepreneur friends,
Connect via social networking, focus on your customers, in this article we focused on
understanding and acquisition of essential entrepreneurial skill are necessary strategies and
tools for the development of entrepreneurial competencies.

References:
1. Abbasi, M.H., Siddiqi, A., & Rahat ul Ain, A. (2011). Role of effective communications
for enhancing leadership and entrepreneurial skills in university students. International
Journal of Business and Social Science, 2(10), 242250.
2. Dickson, P. H., Solomon, G. T. and Mark Weaver, K. Entrepreneurial selection and
success: does education matter? Journal of Small Business and Enterprise Development,
15(2), 2008, pp.239258.
3. Jeya Ani. J, Lourdes Poobala Rayen, Women Entrepreneurship in Rural Areas, Discovery
Publications, New Delhi, 2014, p 232
4. Marcela Rodica Luca, Ana-Maria Cazan and Denisa Tomulescu, Entrepreneurial
Personality in Higher Education Procedia - Social and Behavioral Sciences, Volume 84,
9 July 2013, Pages 10451049.
5. Mr. T.D.Babu (2007) A Study on Women Entrepreneurial Skills Journal of
Contemporary Research in Management.
6. Sunday Adeniyi ADEYEMO (2009) Understanding and Acquisition of Entrepreneurial
Skills: A Pedagogical Re-Orientation for Classroom Teacher in Science Education
TURKISH SCIENCE EDUCATION Volume 6, Issue 3, December 2009.
7. https://www.thebalance.com/list-of-skills-entrepreneurs-need-2062391
8. https://www.entrepreneur.com/article/242327
9. https://www.mindtools.com/pages/article/newCDV_76.htm
10. http://www.huffingtonpost.com/neal-jenson/entrepreneurship-skills_b_3228479.html
11. http://www.cefe.illinois.edu/tools/Making%20A%20Job/MAJ_Student%20Guide
%20Sample.pdf

ROLE OF ENTREPRENEURS IN ECONOMIC DEVELOPMENT

Taidala Vasantaha Rao.
Research Scholar. Department of Commerce and Business Administration,

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 Acharya Nagarjuna University, Guntur, AP
Email- vasantharao.taidala@gmail.com, Mobile No: +919493162185

Bandlamudi Kalpana
Research Scholar. Department Of Commerce and Business Administration,
Acharya Nagarjuna University, Guntur, AP
Email- kalpana.bandlamudi@gmail.com, Mobile No: +91 9703462036

Abstract:
Entrepreneurship is one of the most important inputs in the economic development of
a country. Entrepreneurs play a central role in the economy by establishing firms, which in
turn create markets and organizations. An individual engages in entrepreneurial activities
before the firm is established and then becomes an owner after the firm is established. In the
case of India, Entrepreneur have performed below expectation due to a combination of
different problems themselves through environmental related factors, instability of
governments and frequent government policy changes etc. Entrepreneurship Promotions
should thus ensure the availability or possession of managerial capacity and acumen before
pursuing financial resources for the development of the respective enterprise. The aim of the
paper is to develop and analyze the contributions of entrepreneurship in the economic
development in India. Whereas both the positive as well as the negative impact of
entrepreneurship on the economy has been discussed.

Keywords
Entrepreneurship, Positive Impact, Negative Impact, Economic Development, India.

Introduction:
The word entrepreneurship means has its origin in French Language which refers to
organizers of musical or other entertainment. An entrepreneur is a person who has already
started or is in the process of starting an enterprise. Entrepreneurship play vital role in the
Economic growth and development of the country and new product formation and
technological change in production process and economic transformation is occurs due to
effective entrepreneurship. An entrepreneur takes more risk for the organizational
development and He gives innovation to the industry. This types of habit of taking High risk
innovate new things brings economic development of the country. In present scenario,
Economic development is not possible without effective entrepreneurship and thus a
Entrepreneur is an major component for Economic Growth. The entrepreneurs with their
ability to scan, analyze and identify opportunities in the environment transform them into
business proposition through creation of economic entities.

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Entrepreneurship is a purposeful activity of an individual or a group of associated
individuals, undertaken to initiate, maintain or organize profit oriented business unit for the
production and distribution of economic goods and Service. A. H. Cole

The entrepreneur who is a business leader looks for ideas and puts them into effect in
fostering economic growth and development. Entrepreneurship is one of the most important
inputs in the economic development of a country. The entrepreneur acts as a trigger head to
give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not
only in the development of industrial sector of a country but also in the development of farm
and service sector. The major roles played by an entrepreneur in the economic development
of an economy are discussed in a systematic and orderly manner as follows.

(1) Promotes Capital Formation:

Entrepreneurs promote capital formation by mobilizing the idle savings of public.
They employ their own as well as borrowed resources for setting up their enterprises. Such
type of entrepreneurial activities leads to value addition and creation of wealth, which is very
essential for the industrial and economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is
a chronic problem of underdeveloped nations. With the setting up.of more and more units by
entrepreneurs, both on small and large-scale numerous job opportunities are created for
others. As time passes, these enterprises grow, providing direct and indirect employment
opportunities to many more. In this way, entrepreneurs play an effective role in reducing the
problem of unemployment in the country which in turn clears the path towards economic
development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in
less developed and backward areas. The growth of industries and business in these areas lead
to a large number of public benefits like road transport, health, education, entertainment, etc.
Setting up of more industries leads to more development of backward regions and thereby
promotes balanced regional development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial
development normally leads to concentration of economic power in the hands of a few

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individuals which results in the growth of monopolies. In order to redress this problem a large
number of entrepreneurs need to be developed, which will help reduce the concentration of
economic power amongst the population.

(5) Wealth Creation and Distribution:

It stimulates equitable redistribution of wealth and income in the interest of the
country to more people and geographic areas, thus giving benefit to larger sections of the
society. Entrepreneurial activities also generate more activities and give a multiplier effect in
the economy.

(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the lookout for opportunities. They explore and exploit
opportunities,, encourage effective resource mobilization of capital and skill, bring in new
products and services and develops markets for growth of the economy. In this way, they help
increasing gross national product as well as per capita income of the people in a country.
Increase in gross national product and per capita income of the people in a country, is a sign
of economic growth.

(6) Improvement in the Standard of Living:

Increase in the standard of living of the people is a characteristic feature of economic
development of the country. Entrepreneurs play a key role in increasing the standard of living
of the people by adopting latest innovations in the production of wide variety of goods and
services in large scale that too at a lower cost. This enables the people to avail better quality
goods at lower prices which results in the improvement of their standard of living.

(7) Promotes Country's Export Trade:

Entrepreneurs help in promoting a country's export-trade, which is an important
ingredient of economic development. They produce goods and services in large scale for the
purpose earning huge amount of foreign exchange from export in order to combat the import
dues requirement. Hence import substitution and export promotion ensure economic
independence and development.

(8) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximize profits
by innovation. When an enterprise is established in accordance with the changing technology,
it induces backward and forward linkages which stimulate the process of economic
development in the country.

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(9) Facilitates Overall Development:
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once
an enterprise is established, the process of industrialization is set in motion. This unit will
generate demand for various types of units required by it and there will be so many other
units which require the output of this unit. This leads to overall development of an area due to
increase in demand and setting up of more and more units. In this way, the entrepreneurs
multiply their entrepreneurial activities, thus creating an environment of enthusiasm and
conveying an impetus for overall development of the area.

Eminent entrepreneurs in History & Their Journey towards entrepreneurship

Walchand Hirachand Doshi (23 November 1882 8 April 1953)
Some of the major construction projects of the pre-independence era were all directed
and executed in the supervision of Walchand. Later it was again renamed as Premier
Construction with a major stake of the Tata's. In his later years, he went on to start a Shipping
company, the Scindia Steam Navigation Company which went on to grab 21% of the Indian
coastal traffic. Then the first Indian Aircraft company; the Hindustan Aircraft, and a modern
shipyard known as Hindustan Shipyard Limited and lastly the first car factory of India known
as Premier Automobiles.

Jamsetji Tata (3 March 1839 19 May 1904):

He was known as the Father of Indian Industry. The entrepreneurial insightfulness of
Jamsetji coupled with his nationalistic outlook, which led him to believe that the fruits of his
business success would enrich the nation as a whole, made him truly unique. The repression
of the Indians in the hands of British rulers coupled with widespread poverty all across the
nation at that time, was at the root of this entrepreneurs philosophy. This is what precisely
set the stage for the Enterprise to plough back profits into various social-development
initiatives a direct fallout of the empathy set in the founders philosophy of business. His
started his adventurous life in business by setting a cotton mill in Bombay and then one
another in Nagpur. His dream was to set-up a iron and steel company, a science institution
where one can learn science, a world-class hotel, and a hydro-electric plant.

Ardeshir Godrej (1868 - 1936):

The founder of the Godrej group of companies. Ardeshir Godrej studied law but
couldn't do well as a lawyer. So he came to Bombay and started to work as an attendant to a
chemist. Because of his great sense of business, he saw everything as a business opportunity.
Taking a loan from his father's friend he started to manufacture medical equipments that are

183
required by a surgeon. Equipment such as scalpels, surgeon's scissor, forceps etc. When he
was satisfied that his equipments are world-class, he went to the boss of the company which
he was working as an attendant. His boss accepted that the equipment is great but the tag
"Made in India" will not be there as that won't be marketable (I am talking about 1891).

Govindram Seksaria (October 19, 1888 - June 29, 1946):

He was the Cotton King of the World. Not many people know but Govindram
Seskaria is the most famous businessman of the pre-independence era of India. At that time,
not many Indians ventured in to business when the British were ruling the country. But that
didn't deter Govindram and he went on to be known by the name of cotton king of the world.
First he become a member of Bombay Cotton Exchange and then of New York Cotton
Exchange and many others throughout the world. He started his firm in 1937 which sold
vegetable oil and then diversified business to many other fields. Considering the hostile
environment for Indians at the time of British Raj; Govindram is nothing short of a pearl in
the ocean.

Ghanshyam Das Birla (April 10, 1894 - June 11, 1983):

G.D Birla is the founder of the Aditya Birla group, now a multinational conglomerate
having its Base in Mumbai. Ghanshyamdas left the traditional business (to lend money on
hocked items) of His family and went to Bombay (now Mumbai) to start dealership in cotton.
His venture was Successful. Further in the years to come he diversified in various other
industries. He started a paper mill, a sugar factory, then a car factory, and also expanded his
business in to cement, steel and also started a commercial bank now known as United
Commercial Bank which is still operational by the name of UCO Bank. Now Aditya Birla
group operates in more than 33 countries and employs over 133,000 with an annual turnover
of USD 35 billion.

Jahangir Ratanji Dadabhoy Tata (29 July 1904 29 November 1993):

Father of the Indian Aviation Industry. If JRD Tata started it then Ratanji Tata was the
one who made that in to a much larger success. The vision of his founder to set up a steel
company was completed by starting Tata Steel. And the other two wishes resulted in Indian
Institute of Sciences and Tata Power.JRD Tata was an aviator and got his commercial pilot
license. He set up India's first commercial airline company known as Tata Airlines in 1932
which was rechristened as Air India in 1946 and is now India's national airline. For his
achievement in business he was awarded the highest civilian award of India: Bharat Ratna.

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Dhirubhai Ambani (28 December 1932 - 6 July 2002):
Dhirubhai Ambani is the most famous businessman of India. Ask even a 5 year old in
India, and he/she will know about Dhirubhai Ambani or at least about his last name. In all his
life, he learnt and applied. From his student life in dusty lanes of a small village in Gujarat to
the major seaport city of Aden and finally in Bombay where he become the doyen of the
Indian industry. All his life he had been doing only one thing and that is to learn and apply.
After doing his matriculation; though he wanted to continue study, Dhirubhai went to Aden,
Yemen to earn money as his home's financial condition was not good. In Aden he worked
with a trading firm as a clerk. In those days, Aden was the second-most busiest port in the
world, and traders from across the world came there for business.

Entrepreneurship-Present Era:
C.K. Prahlad, Fortune at the bottom of the pyramid states that the need for innovation in
entrepreneurship. Entrepreneurs should follow the sand box approach in innovation.
The reason is, sand in box is free flowing, shifting boundaries i.e., free from exploration and
even playful experimentation with in extremely fixed specific constraints (the walls, straight
& rigid). In countries like India with 700 million bottom-of-the pyramid. Consumers at
varying level of income; the need for innovations that meet these criteria is now become
obvious. Nation urges Entrepreneurs to explore domestic opportunities To succeed, one need
to continuous innovation & to have continuous innovation, one need to tap thinking of every
one in enterprise. Innovation plays a key factor in an entrepreneurial quality.
Conclusion:
An Entrepreneur Searches For Change, Responds To It And Exploits Opportunities.
Innovation Is A Specific Tool Of An Entrepreneur Hence An Effective Entrepreneur Converts
A Source Into A Resource.

-Peter Drucker, Management Guru.

Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more
about overcoming barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship
is one of the important segments of economic growth. Innovation is a key factor that an
entrepreneur brings in an overall change through innovation for the maximum social good.
The growth of entrepreneurship particularly in the small scale sector can be traced to the
Second World War boom which brought many enterprising people from various walks of life.
As someone said failures are the stepping Stones for Success. If we observe the way any
entrepreneur, their life is not a bed of roses. They faced many obstacles in the way of

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entrepreneurial achievement. Furthermore, women can tell the condition of a nation, she acts
as a central cohesive source of support and stability, not only to her family but also to whole
nation. There is saying where women are respected, dwells God. Similarly where women are
there in the industry dwells progress and prosperity. The bottom line for all the
entrepreneurial life taught the first lesson for success; and that is failure.

References:
1. Swami Vivekananda Entrepreneurship on Focus
2. Wikipedia, http://en.wikipedia.org/wiki/Entrepreneur
3. Jaggi Vasu dev, the 3 Imantras of entrepreneurs, Business Line, 2012
4. Tata steel India, Pioneers, The men of Steel, jemshedji Tata profile.
5. Scribd, History of entrepreneurship, entrepreneurship and SME Management.
6. Economics of the Indus valley civilization, by Chad greenwood
7. Ratnagar, Shereen (2006). Trading Encounters: From the Euphrates to the Indus in the
Bronze Age. Oxford University Press, India
8. Ozgurzan, Peter Drucker on Entrepreneurship
9. The economist, Indian Entrepreneurs: 10 Greatest Businessman from History
10. C.K.Prahlad, Entrepreneurs to Explore domestic opportunities,2008.
11. Daniel Priestley, The Future Of Entrepreneurship

ECONOMY & ENTREPRENEURSHIP

(Role of Govt., in Entrepreneurship Development)
Vunnam Venkata Ramanjaneyulu
M. Com
Head, Department of Commerce
Andhra Muslim College, Guntur.

Introduction:-

The Entrepreneurship is very an old concept according to which anyone who runs
business is called an entrepreneur. The more precise meaning of entrepreneur is; one who

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receives a need and then brings together manpower, material and capital required to meet that
need.

Entrepreneur is one who understands the market dynamics and searches for change
respond to it and exploit is as an opportunity.

The word Entrepreneur is derived from the French Verb Enterprendre. It means
to undertake.

Oxford Dictionary

The Entrepreneur as an individual who forms an organization for commercial

purpose. He/ She are 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

Types of Entrepreneurs:-

Small Business
Home-based Business
Online Business
Inventors

Serial Entrepreneurs

Routes for getting started as an Entrepreneur:-

Family Business

Franchise
New Venture
Buying, Acquisition
Between age 20s & 30s

A persons education, work experience and financial resources are most likely to
enable him/her to become an Entrepreneur.

Start-ups:-

Starting a business generally requires:

A business concept or idea involving a product, service, process. Or new technology

People to support the work, whether as employees, vendors, or advisors

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 A process by which the product or service will be delivered, or the technology will be
developed

Enough money to support the development of the idea to the point that It generates
revenue

Why New Business are Started:-

The main reasons entrepreneurs go out on their own, rather than staying employed,
are:

Control to be their own boss

Ambition to start something from scratch themselves
Financial opportunity to earn more money

In fact, an Intelligent Office Study reported that 65% of employees would rather be
entrepreneurs than work for someone else.

Role of Govt., in Entrepreneurship Development

Government plays a very important role in developing entrepreneurship. Government

develops industries in rural and backward areas by giving various facilities with the objective
of balances regional development. The government set programmes to help entrepreneurs in

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the field of technique, finance, market and entrepreneurial development so that they help to
accelerate and adopt the changes in industrial development. Various institutions were set up
by the Central and State Governments in order to fulfill this objective.

Institutions Set Up by Central Government:-

Small industries Development Organization (SIDO)

Management Development Institute(MDI)
Entrepreneurship Development Institute Of India (EDI)
All India Small Scale Industries Board (AISSIB)
National Institution Of Entrepreneurship and Small Business Development
(NIESBUD), New Delhi
National Institute of Small Industries Extension Training
Risk Capital and Technology Finance Corporation Ltd.,(RCTFC)
National Research and Development Corporation(NRDC)
Indian Investment Centre
Khadi and Village Industries Commission(KVIC)
Indian Institute of Entrepreneurship (IIE)
National Alliance of Young Entrepreneurs(NAYE)
Centre for Entrepreneurial Development(CED) Ahmadabad
Institute for Entrepreneurial Development (IED)
Technical Consultancy Organization(TCOs)
Public Sector Banks

Institutions Set Up at State Level:-

There are a number of Institutions establishes at State Level for organizing,

developing, assisting and making successful entrepreneurial development programmes,
prominent among these are :

Small Industries Service Institute (SISI)

State Finance Corporation (SFC)
State Small Industries Corporation (SSIC)
State Industrial Development Corporation
State Industries Corporation
Technical Consulting Organization Ltd.,(TCO)
Commercial and Cooperative Banks

The above mentioned State and Central level Institutions have provided a number of
concessions and facilities to promote entrepreneur development in India. They have also
played an important role in balanced industrial development in the country.

Conclusion and Policy Implication:-

From the foregoing, it can be seen that Government of several countries view
entrepreneurship as the bedrock of industrialization of their economy and thus encourage

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entrepreneurship. However, argued that policy makers had better discontinued subsidizing the
establishment of the generic start-up; instead consideration should be on businesses with
growth potential. His argument relates to how these policies direct people to commence
marginal companies that are likely to be unsuccessful or have slight economic effect as well
as making small employment. Nonetheless, entrepreneurial success of any nation is largely
dependent on the policy behavior of the government. Since most governments especially in
the developing countries are striving to achieve economic development, they are always
bringing out supportive policy programmes in different forms, e.g. infrastructural, financial,
and fiscal among others. This scholarly work fills the literature gap by linking the antecedents
of entrepreneurship to economic development while government policy intervenes in the
relationship.

References:-

Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small
and Medium Enterprises Development Act,2006- Department- Related Parliamentary
Standing Committee (2013)
Entrepreneurship in India,NKC,2008
IBID
Investopedia
Economic Times,11th June,2015
Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 th September,2015,
San Jose, California)
http://www.indiainfoline.com
www.mca.gov.in

*****

ROLE OF ENTREPRENEURSHIP DEVELOPMENT IN ECONOMIC

DEVELOPMENT

Y. Srinivasa Rao,
Head of the Department, Department of Commerce, V.R.S. & Y.R.N. College,
Chirala.
Abstract:-
In developing countries, there is no paucity of ideas, but there is real scarcity of men
with the right blend of vision and practical sense to groom themselves as successful
entrepreneurs. An entrepreneur is a kingpin in every economy.

Industrialization is indeed bedrock over which spectacular economic and social

transformation always banks upon in developing countries. In the event of failure of an

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agriculture sector to sustain the burden of ever increasing population in developing country
like India, the rapid progress on industrialization front becomes need of the hour.

Therefore, role played by the industrialization in developing countries for accelerating

economic growth is much more pronounced. Ever since entrepreneurship has been
acknowledged as an engine of growth governments of developing countries are leaving no
stone unturned to create entrepreneur - friendly environment towards fostering vibrant
entrepreneurial base in India. Competitive advantage of every country emanates from strong
entrepreneurial base. In the face of slew of road blocks to entrepreneurship development the
sincere attempt has been made in this paper to throw a light on various impediments which
inhibit the growth of entrepreneurship in India.

Introduction:-

Entrepreneur, is a person who discovers new ideas and business opportunities, bring
together funds to establish a business, organizes its operations to provide economic goods and
services for public. By and large, entrepreneurs are found in every economic system and in
every form of economic activity and in other social and cultural activities. Role of
entrepreneurs in the economic development varies from economy to economy depending
upon its material resources, industrial climate and government policy towards growth of
entrepreneurs. Entrepreneurs contribution to economic growth is relatively higher in
favorable conditions than in less favorable conditions.

Entrepreneurship is indeed barometer of overall economic, social and industrial

growth and it brings about revolutionary changes in society. It highly contributes to
remarkable social transformation marked by increase in employment generation and
increase in economic conditions of people. Entrepreneur is a king pin in every economy.
Entrepreneur is an opportunity seeker. He is also the organizer and co-ordinater of the agents
of production. He not only pursues opportunities but also mobiles other resources like 5 MS
Men, money, machines, materials and methods.

Entrepreneurship is the propensity of mind to take calculated risk with confidence to

achieve a predetermined business objectives. The need for expected growth of
entrepreneurial class has been recognized in the light of objectives to be attained such as
creation of employment opportunities, development of backward and tribal areas,
improvement in the standard of living of the weaker and vulnerable sections of the society,
dispersal of economic activities and high rate of economic growth.

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Objectives of the Study:-

To identify the lacuna in entrepreneurship development.

To make an objective examination of impact of entrepreneurship an economic
development.
To analyze the stumbling blocks which hamper entrepreneurship development.
To examine the opportunities available for entrepreneurship development.

Methodology:-

The information required for preparing this paper has been gathered from secondary
sources such as magazines, journals, research studies.

Literature review:-

Having gone through the available literature on entrepreneurship, systematic attempt

has been made in this paper to present a holistic coverage about entrepreneurship landscape
in India. Several studies on entrepreneurship, Industrial policy statements, Five year Plans,
National and International Organizations form an important part of literature on which the
present study has banked upon.

History or entrepreneurship:
History of entrepreneurship can be traced back to 60s when entrepreneurs hailed
from mercantile background. Traditionally Trading castes such as Hindus and Jain Brahmins
of Gujarat were forerunners as main springs of entrepreneurship. Naidus of south, patels of
Gujarat, Kayasthas of West Bengal, Khatris and aroras of Punjab showed legacy to the future
generation entrepreneurship. First generation entrepreneurs came from non-business
community. Next generation entrepreneurs came from traditional family businesses.

The Crucial role played by entrepreneurs in western countries made people of

developing countries conscious of the significance of entrepreneurship for economic
development. Importance of Entrepreneurship development has been recognized a long time
back. It was as early as 1950 that the need for entrepreneurial development was first felt.
Entrepreneurship has developed along with civilization.

Entrepreneurship in Pre Independence Period:

Growth of entrepreneurship in India was negligible and slow. It was plagued by
several obstacles. Since the environment for entrepreneurship in India in Pre Independence
Period was unfavorable, entrepreneurship did not take off at that time.

Entrepreneurship in Post Independence Period:

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 Growth of entrepreneurship in India was slow and inhibited by several hassles. Since
1950 a substantial volume of study has been carried out on the different facets of
entrepreneurial development in India to accelerate the process of industrialization. The study
showed that entrepreneurs are born and they can be made. Post - planning period witnessed
phenomenal spike in number of entrepreneurs.

Present Entrepreneurial Landscape:

Growth of entrepreneurship in post planning period was commendable. Between
1960-1989 number of Private companies went up from 26,000 to 1, 05,200. Number of small
scale units increased from 16,000 in 1951 to 38,00,000 units by the end of 2004. New
economy entrepreneurs and their units differ from old economy entrepreneurs and their
ventures.

Every growing problems triggered by the ever increasing population necessitated the
need for identifying individuals and creating entrepreneurial urge in all communities in rural
areas, urban areas among men and women motivate them to groom them entrepreneurs of
tomorrow through properly organized programmes for raising growth in agriculture,
industry and service sectors through creation of entrepreneurship development institutions.
In India, entrepreneurship landscape has Undergone sea changes in recent times. With the
onset of new breed of entrepreneurs such as first generation enterprises, women entrepreneurs
and social entrepreneurs new era has started in the history of entrepreneurship in India. First
generation entrepreneurs like N.R. Narayana Murthy, Azizm Premji have made path breaking
contribution by creating numerous opportunities in technology segment and created
unprecedented wealth which enabled India to get global laurels.
Role of Several Institutions in the Entrepreneurship Development:-
Government and development financial institution are the forerunners in the realm of
entrepreneurship development. Economic liberalization has opened up new vistas for
unleashing entrepreneurial base. Opportunities for reinforcing entrepreneurial base are galore
thanks to favorable environment created by new economic policy of Government in 1991.

It is widely acknowledged that entrepreneurs can be developed through properly

designed entrepreneurship development programmes. EDPS are most sought after activities
which several organizations have embarked on in letter and spirit. Training is an important
element in EDP programme. Training should be not only to set up venture but also to enable
trainee to run it successfully.

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 Entrepreneurs cannot be created like degree holders in a university EDPS should
focus on encouraging those who possess potential to became entrepreneurs and eliminate
those who lack basic capabilities for joining into league of entrepreneurs.

Following institutions are bound to play catalyst role towards the creation of
congenial environment for EDP in India.

1. Management development institute.

2. Entreprenersh development institute of India.
3. Science and technology entrepreneurial parks
4. National institute for entrepreneurship and small business development.
5. National skill development centres.
6. District Industries centers.
7. Micro small Medium enterprises.

Role of Entrepreneurship Development in Economic Development:-

Economic development will remain a distant dream, when entrepreneurship
development is beset with several hassles. Following advantages to be reaped by the EDP
will provide justification for promotion of EDP.

Entrepreneurship development will scale up competitiveness of developing

economics.
Grave and perennial problem of unemployment in developing countries will be
mitigated through EDP.
EDP results in substantial escalation in public revenue.
Balanced regional development will become reality through EDP.
It will make economy self-reliant.
It will undermine concentration of economic power.
It steps up domestic skills for reducing imports.
It will go a long way in stepping up capital formation.

Conclusion:-

India is no longer poor performer on entrepreneurship front. The phenomenal

increase in number of entrepreneurs since Independence bears testimony to the splendid
growth of entrepreneurship in India. Notwithstanding several impediments in the way of ED,
the ED has come a long way evidenced by the exemplary success of some men and women
entrepreneurs who became embodiment of good entrepreneurial skills. The efforts made by
government and educational institutions and financial institutions to promote ED are
laudable. In addition, economic liberalization ushered in 1991 has provided enormous
impetus to ED in India. Scores of institutions are in the process of making India resurgent
and vibrant in the realm of entrepreneurship.

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References:-
1. Dynamics of entrepreneurial development and Management Vasant Desai.
2. Naude. W.A. Entrepreneurship and economic development theory, evidence and
policy 201312A discussion paper.
3. The Hindu dt. 28-08-2017.
4. The Deccan Chronicle dt.11-06-2017.
5. Mr. Sanjay Maocha, Innovation and entrepreneurship in Todays scenario,
International Journal of marketing, Financial Services and Management Research.

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