A

STUDY OF
ENTREPRENEURSHIP DEVELOPMENT IN
THE DISTRICT OF SAMBALPUR

PROJECT SUBMITTED IN
BACHELOR IN COMMERCE

SUBMITTED BY :-
AKASH KUMAR SAHOO
Roll No: BC16-255
Exam Roll No:UBC16COM255
Semester-VI

Under the guidance of

Mr. SUBASH CHANDRA JHANKAR
Asst. Professor
P.G. Department of Commerce

GANGADHAR MEHER UNIVERSITY

AMRUTA VIHAR , SAMBALPUR
2019
 CERTIFICATE

Certified that the project entitled “Entrepreneurship

Development in the Sambalpur District” submitted as project of

Bachelor in Commerce to Gangadhar Meher University,

Sambalpur embodies the result of bonafide research work carried

out by Akash Kumar Sahoo under my guidance and supervision.

No part of the report or work has been submitted for any other

degree or diploma earlier.

Dt :- Mr. Subash Chandra Jhankar

Asst. Professor
P.G. Dept. of Commerce
G.M. University
 DECLARATION

I do hereby declare that the Dissertation entitled “

ENTREPRENEURSHIP DEVELOPMENT IN SAMBALPUR

DISTRICT” submitted to G.M. University, Sambalpur as project

of the Bachelor in Commerce, is an original piece of work done

by me and has not been submitted for the award of any other

degree, diploma and other similar title earlier.

Akash Kumar Sahoo

 ACKNOWLEDGEMENT

I am extremely grateful to my guide Mr. S.C. Jhankar, Asst.

Professor, G.M. University for his continuous guidance,
cooperation and encouragement at all stages of this study. I also
thank to Miss M.K. Behera, OIS, General Manager of R.I.C,
Sambalpur for allowing me to conduct my study in R.I.C,
Sambalpur. I am also grateful to other staffs of R.I.C for their
guidance and kind cooperation of providing data. I wish to express
my gratitude to the almighty God and my parents who generously
helped me to complete this project with their blessings.
 CHAPTERISATION
PAGE NO.
(1) INTRODUCTION
1.1 Introduction 1–5
1.2 Review Literature
1.3 Problem statement
1.4 Objective of the study
1.5 Relevance of the study
1.6 Research Methodology
1.7 Limitation of the study
1.8 Tentative Chapterisation of the study
(2) DISTRICT PROFILE
2.1 Brief description of Sambalpur 6 – 15
2.2 Economy
2.3 Demographics
2.4 Languages
25 Culture
2.6 Politics
2.7 Education System
2.8 District Industries Centre
(3) AN OVERVIEW OF ENTREPRENEURSHIP DEVELOPMENT
3.1 Introduction 16 – 39
 3.2 Meaning of Entrepreneur
3.3 Definition of Entrepreneur
3.4 Meaning of Entrepreneurship
3.5 Definition of Entrepreneurship
3.6 Meaning of Entrepreneurship Development
3.7 Definition of Entrepreneurship Development
3.8 Need for Entrepreneurship Development
3.9 Objective of Entrepreneurship Development
3.10 Relevance of Entrepreneurship Development
3.11 Phase of Entrepreneurship Development

3.12 Traits of a Successful Entrepreneur

3.13 Institutional efforts and role of Government in developing
entrepreneurship

(4) ANALYTICAL STUDY OF ENTREPRENEURSHIP

DEVELOPMENT IN SAMBALPUR 40 – 48

(5) SUMMARY OF FINDINGS CONCLUSIONS AND

SUGGESTIONS
5.1 Findings of the study 49 – 51
5.2 Suggestions
5.3 Conclusion
5.4 Bibliography
 CHAPTER – 1
INTRODUCTION
1.1 INTRODUCTION :-
In the present society where the population always tends to increase, India is facing the
severe the problem of unemployment. Hence, there is a need of a system by which
people can be self employed as well as can generate employment opportunities for rest.
One of the ways is “Entrepreneurship”. Entrepreneurs are essential to our society
because they build the economic engine that helps our country and economic grounds.
They faster technology and social change and their innovation and creativity forge our
future.

CONCEPT OF ENTREPRENEURSHIP
Like other economic concepts, entrepreneurship has been a subject of much debate and
discussions. It is a novel concept. Hence, it is being defined differently by different
authors. While some call Entrepreneurship as ‘risk bearing’ other view it ‘innovation’
and yet other consider it ‘thrill seeking’. Entrepreneurship is based on purposeful and
systematic innovation. It include not only the independent businessman but also
company director and manager who actually carry out innovation functions.

Entrepreneurship refers to the functions performed by an entrepreneur in

establishing an enterprise. Entrepreneurship may be regarded as what entrepreneurs do.
In other word, entrepreneurship is the act of being an entrepreneurs. Entrepreneurship
is a process involving various actions to be undertaken to establish an enterprise.
Innovation and risk bearing are regarded as the two basic element involved in
entrepreneurship.
 Concept of Innovation
Innovation is doing something new or something different is a necessary condition to
be called a person as an entrepreneur. The entrepreneur constantly on the look
out to do something different and unique to meet the challenging requirement of the
customers.

Page – 1

Risk bearing

Starting a new enterprise involves risk and trying for doing something new and different
is also risky. An entrepreneur, therefore needs to be bold enough to assume the risk
involved in the enterprise.

Relationship between entrepreneur and Entrepreneurship

Entrepreneur Entrepreneurship
(1) Person Process

(2) Innovator Innovation

(3) Risk bearer Risk bearing

(4) Motivator Motivation

(5) Creator Creation

(6) Visualizer Vision

1.2 REVIEW LITERATURE

Prof. Hampanna, Dean S.K. University, Dr. Zakkariya, Associate Professor, School of
Management studies, Cochin, Dr. Rajib Lahiri, Assistant Professor of Commerce,
 Derozio memorial college, Kolkata and N. Arun, HOD Dept. of Commerce, Vigmana
Jyoti Institute, Telangana given emphasis on the micro entrepreneurs in all India
Scenario. He has given his suggestions on those micro entrepreneurs sector having
industrial prospect on all India level.

The research findings reveals the following :-

(i) Micro entrepreneurship makes significant contribution in total GDP and in
employment generation among rural economy.

Page – 2

(ii) Micro entrepreneurship helps to cope with the problems of poverty,

unemployment and under development in rural area and helps to promote
entrepreneurship for total development of the country.
(iii) Entrepreneurship helps in boosting exports and thus helps in earning foreign
currencies.

1.3 PROBLEM STATEMENT

The followings are the problems which are faced by the micro entrepreneurs :-
(i) The financial problem of MSME is the root cause for all the other problems
faced by the MSME sectors. These industries are generally poor and there are
no facilities for cheap credit. They fall into clutches of money lender who
charges exhibited rate of interest.
(ii) The problem of finance in these units is mainly due to two reasons. Firstly it is
partly due to scarcity of capital in the country as a whole. Secondly, it is partly
due to weak credit worthiness of micro enterprise in the country. Due to their
weak economic base, they find it difficult to take financial assistance from the
commercial banks and financial institutions. As such, they are bound to obtain
credit from the money lender on a very high rate of interest and are thus
exploitative in character.
 (iii) The major problem that the micro enterprises have to content with is the
procurement of raw material.
(iv) One of the main problems faced by the micro enterprise in the field of
marketing. There units often do not possess any marketing organization.

1.4 OBJECTIVE OF THE STUDY

The followings are the objective of the study.
(i) To analyse the entrepreneurship development in Sambalpur

Page – 3

(ii) To evaluate the role of entrepreneurs in the industrial development of

Sambalpur.
(iii) To examine the job opportunities created by such development.

1.5 RELEVANCE OF THE STUDY

(i) It motivates the individuals to use their creative mind as entrepreneurs.

(ii) It makes the individuals from job seekers to job provides and hence generates
employment.
(iii) It contributes towards the economic growth of the country.
(iv) It provides a record of the entrepreneurs of the district.

1.6 RESEARCH METHODOLOGY

The present study is based upon both primary and secondary data. The secondary data
have been collected from R.I.C Sambalpur. The entrepreneurs have interviewed from
time in order to generate primary information for the purpose of analyse of our study.

1.7 LIMITATIONS OF THE STUDY

  The present study is based upon a period of ten years only. Hence, period
relating to the period beyond ten years has not been analysed.
 The data may not be descriptive due to lack of time

1.8 TENTATIVE CHAPTERISATION OF THE STUDY

(i) The first chapter contains the objectives, relevance, data source and limitation
of the study.
(ii) The second chapter contains information about the profile of Sambalpur district.

Page – 4

(iii) The chapter three deals with the overview of Entrepreneurship Development.
(iv) The fourth chapter deals with Entrepreneurship Development in Sambalpur.
(v) The Last chapter contains the summary of findings, conclusion and suggestion.
 Page – 5

CHAPTER – 2
DISTRICT
PROFILE
2.1 Brief Description of Sambalpur
Sambalpur district is a district in the western part of Odisha, India. The historic city of
Sambalpur is the district headquarters.

The district is located in the Mahanadi river basin. It has a total area of 6,702 km square
(2,588 sq.m), of which almost 60% of the district is covered in dense forest. The district
is bounded by Deogarh district to the east, Bargarh and Jharsuguda to the west,
Sundergarh district to the north, and Subarnapur and Angul district in the south.

Sambalpur city is the connecting city between Chhattisgarh and Odisha. Whereas it is
used to be known for its importance as a diamond trading centre, nowadays it is mainly
known for its textiles, especially the Sambalpuri Saree. It is a good place from which
to explore the surrounding forests and spot, some of the rare species still roaming the
area in one of the wildlife sanctuaries, such as the well known Badrama sanctuary,
Sambalpur is also famous for Sambalpuri song and Sambalpuri dance.

Sambalpur state was a former princely state of British India. When its ruler died without
a male heir in 1849, the British seized the state under the doctrine lapse. It was attached
to the British Bengal Presidency provinces in 1862. The district was transferred back
to Bengal in 1905, but the subdivisions of Phulijhar and Chandrapur – Padampur
remained with the Central Provinces. Bengal’s Odisha division became part of the new
 province of Bihar and Orissa 1912 and in 1936 became the separate province of Odisha.
After Indian independence in 1947, Odisha became an Indian state.

Sambalpur district was subsequently divided into four separate districts. Abargad was
separated in 1993, and Jharsuguda and Debgad districts were separated in 1994.

In the district of Sambalpur, a large number of Shiva temples were built during the
Chauhan period. The most important among them eere the Asta Sambhus in the
undivided Sambalpur District as detailed below:

Page – 6

Sl. No. Name Place

1 Bimaleswar
2 Kedarnath
3 Biswanath
4 Balunkeswar
5 Mandhata Baba
6 Swapneswar
7 Neelakantheswar
8 Baba Kamleswar
Huma
Ambabana (Now in Bargad district)
Degaa (Now in Bargad district)
Gaisama (Now in Bargad district)
Maneswar
Sorna (Now in Bargad district)
Niiee (Now in Bargad district)
Sason, Kamalchowk

An interesting feature of Shiva shrines found in Sambalpur area is “type of Brahmin

Priest” called Chanapati of general caste of these shrines.

2.2 Economy
The economy of Sambalpur district is basically dependent on agriculture and secondly
on forests. Forests play an important role in the economy in terms of contribution to
revenue, domestic product as well as dependence of people for livelihood. The people
living adjacent to the reserved forests of Sambalpur Forest Division are heavily
dependent on these forests. In the past, Sambalpur has been a great centre of “Diamond
trade”. Kendu leaf (Diospyros Melanoxylon) is also produced in Sambalpur. Tendu leaf
 is one of the most important non-wood forest products of Sambalpur and is also called
as green gold of Odisha. Lately industrialisation has started in the district and the prime
industries of power, alumina and steel have been established. The place is famous for
its globally renowned textile bounded patterns and fabrics locally known as “Baandha”.
Sambalpur is famous for its handloom textile works popularly known as “Sambalpuri
Textile” It has earned international fame for its unique pattern, design and texture. Apart
from textiles, Sambalpur has a rich tribal heritage and fabulous forestlands.

Page – 7
In 2006 the Ministry of Panchayati Raj named Sambalpur one of the country’s 250 most
backward districts (out of a total of 640). It is one of the 19 districts in Odisha currently
receiving funds from the Backward Regions Grant Fund Programme (BRGF).

2.3 Demographics

Percentage Decadal Growth of Population of Sambalpur District.

 Trend in Decadel Sex ratio of Sambalpur District.

According to the 2011 census Sambalpur district has a population of 1,044,410, roughly
equal to the nation of Cyprus or the US state of Rhode Island. This gives it a ranking of
433rd in India (out of a total of 640). The district has a population density of 158
inhabitants per square kilometre 410/sq mi). Its population growth rate over the

Page – 8

decade 2001 – 2011 was 11 - 63%. Sambalpur has a sex ratio of 973 females for every
1000 males, and a literacy rate of 76.91%.

2.4 Languages

Languages spoken here include Asuri, an Austro-Asiatic language spoken by

approximately 17000; and Bhunjia, spoken by approximately 7000 Bhunjia Adivasis.
Languages spoken in Sanibalpur, Burla & Hirakud is Oriya by person migrated from
other places of odisha. Other communities speak Hindi and in their own language. 90%
population speaks Sambalpuri.

2.5 Culture

Places of interest

The town of Sambalpur, lying 321 km from Bhubaneswar, is an ancient centre for the
diamond trade is famous for its internationally renowned textiles (ikat) rich tribal
heritage and fabulous forestlands. Sambalpur is easily accessible by rail and road.

Samaleswari, the presiding deity of this region is enshrined at ‘Samlei Gudi’ on the
bank of Mahanadi River. The other temple of importance is the Budharaja Temple,
dedicated to Lord Shiva and is perched atop the Budharaja hill. These temples are
located at a few kilometres’ distance from Sambalpur. The Hirakud Dam, the longest
dam of the world, is some 15 kilometres from Sambalpur and can be easily visited on a
day trip.
 About 20 km from Sambalpur lies the Huma Temple which is a leaning structure,
angling up to almost an astonishing 17 degrees. A mystery of engineers since the past
few decades, it was made by the erstwhile ruler of Sambalpur.

Page – 9

2.6 Politics

Vidhan sabha constituencies

The following are the four Vidhan Sabha Constituencies of Sambalpur district and the
elected members of the area.

No. Constituency Reservation Extent of the Members Party

assembly of the
Constituency Assembly
1 Kuchinda ST Kuchinda (NAC), Rabi Nayak B.J.P.
Bamra, Jamankira
2 Rengali SC Rengali, Ramesh B.J.D.
Dhankauda, Chandra
Maneswar (Part) Patua
3 Sambalpur Gen Sambalpur,Burla Dr. B.J.D
Hirakud Rajeshwari
Panigrahi
4 Rairakhol Gen Rairakhol,Jujomura, Er.Rohit B.J.D
Naktideul, Pujari
Maneswar(Part)

The literacy rate of the district is 76.91%. Male literacy rate is 85.17% and female
literacy rate is 68.47%.

2.7 Education system

 The education system in rural areas is government operated. Government runs primary,
high and secondary schools. In urban areas the system is a mix of government and
private operated schools. There are colleges for higher education both in rural and urban
areas but most of them are located in urban or semi-urban places.

Page – 10

2.8 District Industries Centre: (Now R.I.C.)

1. In each district one agency to deal with all requirements of small and village
Industries. This is called "District Industries Centre"

2. The District Industries Centres have undertaken various programmes for

investment promotion at the grassroot level such as a organizing seminars
workshops, extending support for trade fairs and exhibitions organized by
various Industries associations.

3. All the services and support required by for MSME units under the single roof
of the District Industries Centre. The Centre has a separate wing to look-after
the special needs of cottage and house-hold industries as district from small
industries.

4. Administration

General Manager is the head of the District Industries Centre. The post of
General Manager is of Joint / Deputy Commissioner level. The General
Manager has senior officers to assist him, such as Manager (Raw Material),
Manager (Credit), Manager (Economic Investigation), Manager (Marketing)
Industrial Promotion Officer(IPO) and Technical Officer cum Project Manager
(PM)

General Manager
 Accounts Manager Manager Manager Manager Tech.Officer Industrial
Officer (Credit) (RM) (EI) (Marketing) & Manager Promotion
(Project) Officer

CL.-II Cl.-II Cl.-II Cl.-II Cl.-II Cl.-II Cl.-II

Page – 11

5. Monitoring of DOCs

The functioning of DICs and their achievement is monitored by Industries

Commissioner, Meeting of General Managers are organized frequently to
evaluate the performance and also help in resolving difficulties in
implementation of different schemes. To resolve the problems of
industries/industrialists, there are two types of committee at the district level
viz.

1. District Industrial Executive Committee (DIEC)

DIEC is constituted for solving industry related problems and promoting
industrial growth. District Collector is the Chairman of this Committee and
General Manager of DIC is the Member Secretary. The other members of
the
DIEC are President of District Panchayat, DDO, MP, MLAs, Prominent
persons active in Industries in the district and members of all district level
industries associations. 2. Single Window Industrial Follow up Team
(SWIFT) Enterpreneurs face many difficulties when they start new
industries. They have to deal with many government agencies and get many
clearances. SWIFT helps them in guiding solving their problems at a single
spot. This committee is working under the District Collector, General
Manager of DIC is the Member Secretary and District Development Officer
 is Vice President of SWIFT. All industries related officers in the district are
members of this committee.

LOAN SCHEME

1. PRIME MINISTER ROJGAR YOJANA (PMRY)

2. SEED MONEY SCHEME
3. DIC LOAN SCHEME

OTHER SCHEMES

1. PSI – 2001
Page – 12
2. RAW MATERIAL (SLACK COAL) RECOMMENDATION

3. SSI REGISTRATION (PROVISIONAL & PERMANENT)

4. DISTRICT AWARD SCHEME

PRIME MINISTER ROJGAR YOJANA (PMRY)

BRIGHT FEATURE

1. Loan upto 1 lakh for business

2. Loan upto 2 lakh for SSI & SSSBE
3. Loan upto 10 lakh for partnership
4. Applicant’s share upto 5 to 16.25% for project cost.
5. Subsidy 15% or 7500 out of Total loan sanction.

ELIGIBILITY

1. Educational – Minimum 8th pass

2. Age Limit 18 to 35 years
(For SC/ST/Handicap/Ex-serviceman/women 18 – 45 years)
3. Family Income limit upto 40,000/-
4. Residence in dist. Minimum 3 years
5. No defaulter for Banks & other financial institution
REQUIRED DOCUMENTS

1. T.C. / Marklist
2. Employment card
3. Ration card
4. Photo (Passport size)
5. Quotation
6. Affidavit

Page – 13

7. Income certificate
8. SSI Registration only for industry
9. Other required document

SEED MONEY SCHEME

BRIGHT FEATURE

1. Total cost of project is max. 10 lakhs, for out of approved project cost minimum 15%
seed money up to limited to 1.5 lakh sanctioned by DIC.

ELIGIBILITY

1. Unemployed
2. Education – 7th pass
3. Age Limit 18 to 35 years
4. Residence in Maharashtra for 15 years

DIC MONEY SCHEME

BRIGHT FEATURE

1. No need of education
2. SSI & SSSBE
3. Project cost upto 2 lakhs
4. Objectives – To give funds in rural areas for tiny industries

Page – 14

DISTRICT AWARDS SCHEME

A Scheme of District Awards to Small Scale Entrepreneurs :

A Scheme of District for promoting entrepreneurship and recognizing the achievements

of successful entrepreneurs in the sector of Small Scale Industries, The categories of two
awards for each District are indicated below

1) Rs. 5000/- in cash + a Silver Plated Mometo + a Shawl.

2) Rs. 5000/- in cash + a Silver Plated Mometo + a Shawl.
 Page – 15

CHAPTER – 3
AN OVERVIEW OF
ENTREPRENEURSHIP
DEVELOPMENT
3.1 INTRODUCTION :

After independence, the Indian society is being divided into two classes: the rich class
and the poor class. Through the uneven distribution of income, the rich gets richer and
the poor gets poorer. Again, India is a developing as well as a poor country. The major
reason for which the country is lagging behind in the race of development is
unemployment. There is no source of income for many of the youths. So, in order to
feed such a massive population, all need a way of earning. With the limited employment
opportunities, it is not possible to provide a job for every job needed fellow. Hence, as
far as the present scenario of the country is concerned, India badly needs a good number
of entrepreneurs, so that, the entrepreneurs can themselves can be self employed and
doing with that they can become the job providers creating new employment
opportunities for others. Though it involves risk and is really not an easy task but they
should be motivated for that because:

“Only those who dare to fail greatly can ever achieve greatly”.

By Robert f. Kennedy.

3.2 Meaning of ENTREPRENEUR:

The word 'Entrepreneur' originates from the French word `Entreprendre' which means
‘to undertake’. In a business context, it means to start a business.
 An entrepreneur is a person of very high aptitude who pioneers change, possessing
characteristics found in only a very small fraction of the population, or, in simple words,
we can say that any person who starts his / her own enterprise is known as an
entrepreneur.

A person is said to be an entrepreneur if he / she has the ability of:

 Risk-taking,
 Innovation.

Page – 16

3.3 Definition of Entrepreneur :

“An entrepreneur is someone who can take any idea, whether it be a product and/ or
service, and have the skill set, will and courage to take extreme risk to do whatever it
takes to turn that concept into reality and not only bring it to market but make it a viable
product and/ or service that people want or need”.

Gottlieb.
3.4 Meaning Of Entrepreneurship:

Entrepreneurship is the development of business from the ground up coming up with

an idea and turning it into a profitable business. But while the definition of
entrepreneurship may be simple, its execution is much more difficult.

3.5 Definition of Entrepreneurship:

“Entrepreneurship is the journey of opportunity exploration and risk management to

create value for profit or social good”.

Ajay Bam
3.6 Meaning of entrepreneurship development

As the term itself denotes, Entrepreneurship Development is a programme meant to

develop entrepreneurial abilities among the people. In other words, it refers to
 inculcation, development and polishing of entrepreneurial skills into a person needed
to establish and successfully run his/ her enterprise. Thus the concept of
entrepreneurship development involves equipping a person with the required skills and
knowledge needed for starting and running the enterprise”.

3.7 Definition of Entrepreneurship Development:

Small Industries Extension and Training Institute ( STET 1974), now National Institute
of Small Industry Extension Training (NISIET), Hyderabad defined it as “an attempt to
develop a person as entrepreneur through structural training”.

Page – 17

The main purpose of such EDP is to widen the base of entrepreneurs up by

development, achievement, motivation and entrepreneurial skills among the less
privileged sections of the society.

3.8 Need for EDPs:

Entrepreneurs possess certain competencies or traits. These competencies are the

underlying characteristics of the entrepreneurs which result in superior performance
and which distinguish successful entrepreneurs from the unsuccessful ones.

Then, the important question arises is:

Where do these traits come from?

Or, whether these traits are in born in the entrepreneurs or can be induced and
developed?

In other words whether the entrepreneurs are born or made?

Behavioral scientists have tried to seek answers to these questions.

The world is rapidly moving from the knowledge based economy. Success in a dynamic
goal environment requires an enlightened cadre of engineers, scientists and managers
who have depth in their specific disciplines, as well as keen understanding of how their
work meets the needs of society, business, industry and government.
 Innovation is the process of designing, inventing, developing and implementing newer
or improved products, services, processes, systems and organisational models and
structures for the purpose of creating new value for the universal community, the region
and the nation.

There are start up entrepreneurs who realize the value of a new enterprise, as well as
entrepreneurs who realize the value of innovation for their university, company, or
government agency.

Page – 18

Entrepreneurs are people of vision and courage, capable of managing risk to create
value. Nurturing, tomorrow’s innovators and entrepreneurs require an a university
environment attained by bridging the culture of academe with the culture of the market
place while building on the strengths of both.

Business and industry must thrive in global competition which entails market dynamics,
investor’s expectations and government regulations. Large cooperation and small and
medium sized enterprises encounter difficulties in partnering with universities because
of the gap between the culture of academe and the realities of the market place.
Innovation Strategies International (ISI) helps organisations harvest the value of their
research for revenue growth. ISI assists universities and businesses in establishing
partnerships for their mutual benefits. ISI works with government agencies to design
and evaluate R&D investment and educational strategies that advance entrepreneurship
and innovation for economic growth and social well being. ISI assists companies in
partnering with other enterprises to achieve innovation in the global market place.

3.9 Objectives of EDP:

The objectives of EDP are to provide assistance for the following:

I. Develop and strengthen the entrepreneurial quality, i.e., motivation or need for
achievement.
II. Analyse environmental set up relating to small industry and small business.
III. Select the line of product, time of starting, etc.
IV. Formulating proposal for the product.
 V. Understand the process and procedure involved in setting up a small enterprise.
VI. Know the source of help and support available for starting a small scale
industry.
VII. Know the pros and cons in becoming an entrepreneur.
VIII. Appreciate the needed entrepreneurial discipline.
IX. Let the entrepreneur himself/ herself set on reset objectives for his/her enterprise
and strive for their realization.
X. Prepare him/her to accept the uncertainty in running a business.
Page – 19

XI. Enable him/her to take decisions, viz., quality level decisions, estimated time,
production decisions, etc.
XII. Enable to communicate clearly and effectively.
XIII. Develop a broad vision about the business.
XIV. Make him subscribe to the rural democracy.
XV. Develop passion for integrity and honesty.
XVI. Make him learn compliance with law.

3.10 Relevance of Entrepreneurship Development:

Entrepreneurship plays a very important role in the economic development.

Entrepreneurs act as catalystic agents in the process of industrialisation and economic
growth. Technological process alone cannot lead to economic development unless
technological breakthroughs are put to economic use by entrepreneurs. It is the
entrepreneur who organises and puts to use capital, labour and technology in the best
possible manner for the setting up his enterprise.

EDP enables entrepreneurs in initiating and sustaining the process of economic

development in the following ways:

I. Creation of Employment Opportunities: Unemployment is one of the most

important problems confronting developing and under developed countries.
EDPs enable the prospective entrepreneurs in the setting up of their own units,
thus, enabling them to get self employment. With the setting up of more and
more units by entrepreneurs, both on small and large scale, numerous job
opportunities are created for other. Entrepreneurs in this way get an opportunity
 to lead an independent and honourable life and at the same time they enable
others in getting gainful employment. Several schemes like Nehru Rozgar
Yojana, National Rural Employment Programme (NREP), etc. have been
initiated by the government of India in this direction. The thrust of all these
schemes is to eliminate poverty and generate gainful employment opportunities
for the unemployed. Thus, entrepreneur can play an effective role in reducing
the problem of unemployment.

Page – 20

II. Capital Formation: It is not possible to set up an enterprise without adequate

funds. Entrepreneurs as the organizer of factors of production employ their own
as well as borrowed resources for the setting up of their enterprise. Entrepreneur
mobilises idle savings of the public and put them to productive use. In this way,
he helps in capital formation which is so essential for the industrial and
economic development of a country. Various development banks like ICICI,
IFCI, IDBI, SFCs, SIDCs take initiative in promoting entrepreneurship through
assistance in various agencies involved in EDP and by providing financial
assistance to new entrepreneurs.
III. Balanced Regional Development: Small scale units can be set up in
industrially backward and remote areas with limited financial resources.
Successful EDPs assist in accelerating the pace of industrialisation in the
backward areas and reduce the concentration of economic power in the hands
of a few, Entrepreneurs feel like taking advantage of the various concessions
and subsidies offered by the state and central government. Success story of
entrepreneurs set right example for others to follow and this accelerates the pace
of industrialisation in the backward areas. Setting up of more units leads to more
development of backward areas and balanced regional development.
IV. Use of Local Resources: In the absence of any initiative, local resources are
likely to remain unutilized. Proper use of these resources can result in the
progress or development of the area and that too at lower cost. Alert
entrepreneurs seize the opportunity to exploit it in the best interests of the area
and industry. Effective EDPs can help in the proper use of local resources by
providing guidance, assistance, education and training to the prospective
entrepreneurs.
V. Improvement in Per Capita Income: Entrepreneurs are always on the lookout
for opportunities. They explore and exploit the opportunities. Entrepreneurs
take lead in organising various factors of production by putting them into
productive use through the setting up of their enterprises. More enterprises will
lead to more production, employment and generation of wealth in the form of
goods and services. It will result in increase in the

Page – 21
overall productivity and per capita income in the country. EDPs play a positive
role in the setting of more units and thus help in generation of more employment
and income.
VI. Improvement in Standard of Living: Entrepreneurs by adopting latest
innovations help in the production of wide variety of goods and services. By
making efficient use of the resources they start producing more and more and
better quality and that too at lower costs. This enable them to ensure easy
availability of better quality products at lower prices to the consumers which
result in the improvement in the standard of living of the people. EDPs provide
the necessary support to entrepreneurs by educating them about the latest
innovations and market trends.
VII. Economic Independence: Entrepreneurs enable a country to produce wide
variety of better quality goods and services and that too at competitive prices.
They develop substitutes of the goods being imported and thus prevent over-
dependence on foreign countries and at the same time help in the saving of
precious foreign exchange. Through sale of their surplus products in foreign
market entrepreneurs enable a country to earn foreign exchange, which is so
essential for meeting development needs of the economy. Export promotion and
import substitution thus help in promoting economic independence of the
economy.
VIII. Preventing Industrial Slums: Industrially developed areas are faced with
problem of industrial slums, which result in over burdening of civic amenities
and adverse impact on the health of people. Dispersal of industries can help in
the overcoming of this grave problem. EDPs can help in preventing speed of
industrial slums by providing various incentives, subsidies and infrastructural
 support to entrepreneurs for setting up their enterprise in industrially backward
areas. This will also help in reducing pollution and overtaxing of civic
amenities.
IX. Reducing Social Tension: Unemployment amongst the young and educated
people is emerging as the major cause of social unrest. People are bound to feel
frustrated if they fail to get gainful employment after completion

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of their education. EDPs can help in channelizing the talent of this section of
society in the right direction by providing proper guidance, training and
assistance for setting up their enterprises. This results in generation of self
employment and prevention of social tension, unrest, etc.
X. Facilitating overall development: An entrepreneur acts as a catalystic agent
for change which results in chain reaction. With the setting up of an enterprise,
the process of industrialisation is set in motion. This unit will generate demand
for various types of inputs required by it and there will be so many other units
which will require the output of this unit. This leads to overall development of
an area due to increase in demand and setting up of an area due to increase in
demand and setting up of more and more units there. Moreover success of one
entrepreneur sets the right type of example for others to follow. Entrepreneurs,
thus, create an environment of enthusiasm and convey a sense of purpose. This
gives future impetus the overall development of that area.

3.11 Phases of Entrepreneurial Development:

There are three broad phases of EDPs and these are:

i. Pre - training phase,
ii. Training phase,
iii. Post- training phase.

Pre – training phase: The success of EDP depends on the training promotional ground
work carried out by the training organisation.

Various activities undertaken by an organisation while organising EDPs are:

 Designing of course curriculum or contents: EDPs depends upon the objectives of
EDP. While designing innovative course curriculum utmost care is taken to ensure that
it must meet the requirements of the programme. The main thrust is on the following
subjects:
(a) Introduction of Entrepreneurship: An attempt is made to generate knowledge

Page – 23

about entrepreneurship, knowledge is imported about various factors affecting

small scale business, the role entrepreneurs in economic development,
entrepreneurial behaviour and the facilities available for setting up the enterprise.
(b) Motivation training: Under motivational training, an attempt is made for
increasing the need of achievement and confidence amongst the participants. It
helps in developing the right aptitude and behaviour towards business. Successful
entrepreneurs are invited to narrate their own experiences in setting up and running
of their respective business. An earnest attempt is made for promoting and preparing
entrepreneurs for starting their own enterprise.
(c) Management and technical skills: No business can successfully run without
proper managerial and technical skills. The basic aim of this is to import
management and technical know how required by the participants to operate their
business enterprises efficiently and effectively. Knowledge is imparted regarding
basic and essential managerial skills in the functional areas like production,
marketing. finance, etc.
(d) Support system and procedure: Entrepreneurs need to be informed about support
available from various agencies and institutions for setting up and running of
enterprises. They are to be made aware about the procedure of applying and
obtaining assistance from the institutions.
(e) Fundamentals of Project feasibility study: The participants are provided
guidelines on the effective analysis of viability or feasibility of the project in view
of marketing, organisation, technical, financial and social aspects. Knowledge is
provided for preparing project and feasibility report.
 (f) Plant visits: For making participants familiar with real life situations in business,
plant visits are arranged. Such trips provide participants with opportunities to learn
about entrepreneur’s behaviour, personality thoughts and aspirations.
Besides above an attempt is made to generate quality consciousness among
participants. They are also informed about social responsibility.
The duration of EDP varies normally from four to six weeks.

Page – 24

 Selection of faculty and resource persons: The success of EDP depends upon the
calibre of the faculty or resource persons. The identification and finalisation of terms
and conditions with the faculty thus becomes very important for the conduct of EDP.
Small Industries Services Institute (SISI) regularly conducts EDPs and is of the opinion
that identification of faculty is one of the most important activities in the pre- training
phase. Expert faculty can be invited from engineering colleges, universities,
consultancy firms, technical institutes, banks, financial institutions and firms engaged
in Research and Development.
 Insertion of Advertisement: Information regarding forthcoming EDPs along with
relevant details is flashed through various medias of advertisement. Normally
advertisement in the local newspaper is given, as the objective is to attract local talent.
Advertisement can be repeated in case the response is found to be inadequate.
Awareness about EDPs can be generated through other medias like press releases,
handbills, meetings with trade unions, industry associations, etc. District Industries
Centres, Employment Exchanges and Educational Institutes can be contacted for
getting information about interested candidates. An earnest effort is made to attract
maximum number of prospective entrepreneurs for EDPs.
 Selection of Potential Entrepreneurs: The success of EDP depends upon the proper
identification and selection of participants for training. Utmost care should be exercised
in selecting entrepreneurs for EDPs. The EDP selection scheme should be designed in
such a manner that it restricts admission to EDP to the top 20 to 30 applicants, who are
supposed to possess the requisite traits or qualities of potential entrepreneurs.

Selection of prospective entrepreneurs is made on the basis of :

 a. Information available in the application form.
b. Written test for knowing about aptitude for candidates.
c. Personal interview of the shortlisted candidates for knowing about the family
background, willingness to take risk, ambitions or aspirations, etc. The
interview board comprises of nominees of agency conducting EDP, General
Manager of District Industries Centre and representatives of Banks, financial

Page – 25

institutions and other supporting agencies. Failure to make proper identification

and selection of potential entrepreneur will result in wastage of time, effort and
money on the organising and conduct of EDP.

Training Phase :

The main aim of training programme is to develop motivation and requisite skills
amongst the potential entrepreneurs. Both theoretical and practical knowledge is
imparted to the trainees. They are given practical exposures in areas like market
surveys, preparation of project and feasibility report, marketing of products and
services, etc. The basic purpose of training is to develop, ‘Need for Achievement’
among the trainees.

According to N.P. Singh, a trainer should see the following changes in the behaviour
of participants.

 Is he/she attitudinally tuned very strongly towards his proposed project idea?
 Is the trainee motivated to plunge for entrepreneurial venture and risk that is
expected of an entrepreneur?
 Is there any perceptible change in his entrepreneurial attitude, outlook, skill role,
etc.?
 How should he/she behave like an entrepreneur?
 What kinds of entrepreneurial traits the trainee lacks the most?
 Whether the trainee possess the knowledge of technology, resources and other
knowledge related to entrepreneurship?
  Does the trainee possess the required skill in selecting the viable project,
mobilising the required resources at the right time?

Entrepreneurial training can be imparted by the following methods:

(a) Individual Training: A single individual is selected for training under this method.
This method of training is most suited where a complicated skill is to be taught to an
individual.

Page – 26

(b) Group Training: This method of training is more suitable for a group of individuals
with a similar type of work and where similar general instructions are to be given to all.
(c) Lecture Method: Under this method, the instructor communicates in theory the
practice to be followed by trainees. Whatever are the queries, classifications or doubts
of the trainees, these are cleared on the spot.
(d) Written Instruction Method: This method aims at providing written material for
future reference by the learners. This method is generally adopted where a standardised
production is followed.
(e) Demonstration Method: This method aims at providing practical exposure to the
trainees by the trainer for better understanding. Trainer while giving demonstration
explains at length minute details of the performance of the work.
(f) Conference Method: Under this method, experts in different fields share their ideas
aimed at providing knowledge to trainees for improving their effectiveness.
(g) Meetings: This method aims at providing opportunity to the trainees to discuss various
problems confronting them. This method enables them to exchange ideas and views on
various issues and finally arrive at firm conclusions based on discussions.

Post training and follow up Phase ::

EDPs aim at developing the right type of calibre and motivation amongst the potential
entrepreneurs so as to enable them to set up their own enterprises. The success or failure
of EDPs depends upon the extent up to which the objectives of EDPs have been
achieved. Through follow up, we can know about our past performance, weakness, if
 any, and draw up plans for removing these bottlenecks in. future. Appraisal can help us
in knowing as to what extent entrepreneurs have selected the projects which suit their
calibre and background. Suitable assistance can be provided to those entrepreneurs who
have failed to identify the right type of project or are facing certain other problems. The
main aim of this follow up exercise is to make EDPs all the more useful and effective
for promoting entrepreneurial talent.

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3.12 The 8 Traits of a Successful Entrepreneur:

If anybody starts an enterprise, then, it just cannot be assumed that he/she is going to
be successful in that, he/she has to adopt certain qualities or traits in order to be successful:

1. Strong leadership qualities

Leaders are born, not made. Do you find yourself being the go-to person most of the
time? Do you find people asking your opinion or to help guide or Make decisions for
them? Have you been in management roles throughout your career? A leader is
someone who values the goal over any unpleasantness the work it takes to get there
may bring. But a leader is more than just tenacious. A leader has strong communication
skills and the ability to amass a team of people toward a common goal in a way that the
entire team is motivated and works effectively to get there as a team. A leader earns the
trust and respect of his team by demonstrating positive work qualities and confidence,
then fostering an environment that proliferates these values through the team. A leader
who nobody will follow is not a leader of anything at all.

2. Highly self-motivated
You probably know from knowing even a little bit about some of the most famous
business entrepreneurs in history that leaders are typically pretty intense personalities.
Nobody makes progress by sitting back and waiting for it to find them. Successful
people go out into the world and invoke change through their actions. Typically, leaders
enjoy challenges and will work tirelessly to solve problems that confront them. They
 adapt well to changing situations without unraveling and are typically expert of helping
their teams change with them by motivating them toward new goals and opportunities.
Often you will learn that successful entrepreneurs are driven by a more complete vision
or goal than simply the task at hand and able to think on a more universal level in that
regard. They are also often very passionate about their ideas that drive toward these
ultimate goals and are notoriously difficult to steer off the course.

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3. Strong sense of basic ethics and integrity

Business is sustainable because there is a common, understood code of ethics
universally that underpins the very fabric upon which commerce is conducted. While
cheaters and thieves may win in the short term, they invariably lose out in the long run.
You will find that successful, sustainable business people maintain the highest
standards of integrity because, at the end of the day, if you cannot prove yourself a
credible business person and nobody will do business with you, you are out of business.
With importance in working with clients or leading a team, effective leaders admit to
any error made and offer solutions to correct rather than lie about, blame others for, or
dwell on the problem itself.
4. Willingness to take risk:
Successful entrepreneurs are risk takers who have all gotten over one very significant
hurdle: they are not afraid of failure. That’s not to say that they rush in with reckless
abandon. In fact, entrepreneurs are often successful because they are calculating and
able to make the best decisions in even the worst of cases. However, they also accept
that, even if they make the best decision possible, things don’t always go according to
plan and may fail anyhow. If you’ve heard the old adage, “nothing ventured, nothing
gained,” that's exactly what it’s saying: do not be afraid to fail, put it out there and give
it your best shot. Again, there’s not one successful entrepreneur out there sitting on his
couch asking, “what if?”
5. Serial innovators
Entrepreneurs are almost defined by their drive to constantly develop new ideas and
improve on existing processes. In fact, that’s how most of them got into business in the
 first place. Successful people welcome change and often depend on it to improve their
effectiveness as leaders and ultimately the success of their businesses as many business.
concepts rely on improving products, services and processes in order to win business.
6. Know what you don’t know
While successful entrepreneurs are typically strong personalities overall, the best have

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learned that there’s always a lesson to be learned. They are rarely afraid to ask questions
when it means the answers will provide them insight they can then leverage to effect.
Successful entrepreneurs are confident, but not egotistical to the point that their bull-
headedness is a weakness that continually prohibits them from seeing a bigger picture
and ultimately making the best decisions for the business.
7. Competitive Spirit:
Entrepreneurs enjoy a challenge and they like to win. They would have to since starting
a business is pretty much one of the biggest challenges a person can take on in their
lifetime. In business it’s a constant war with competition to win business and grow
market share. It’s also a personal challenge to use all of this to focus inward and grow
a business from nothing into a powerhouse that either makes a lot of money or is so
effective that it is sold or acquired for a profit as well.
8. Understand the value of a strong peer network
In almost every case, entrepreneurs never get to success alone. The best understand it
takes a network of contacts, business partners, financial partners, peers and resources
to succeed. Effective people nurture these relationships and surround themselves with
people who can help make them more effective. Any good leader is only as good as
those who support him.

3.13 Institutional Efforts and Role of Government in developing Entrepreneurship:

After independence of our country, the Government of India found that on one hand
industrial development was confined to a few developed cities and on the other it was
concentrated in the hands of a few top business houses. The government decided to promote
entrepreneurial activity through various incentives in both industrially backward and rural
areas. The thrust of these programmes was to provide technological, financial, market and
morale support the potential entrepreneurs, who can act as an catalytic agent of business and
society.

There are various agencies and institutions engaged in entrepreneurship development activity
and these are as under:

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i. National Institute for entrepreneurship and Small Business Development: It is

the highest body entrusted with the task of coordinating and supervising the
activities of different agencies engaged in the task of entrepreneurial development.
This institute aims at creating an environment which is conducive to emergence of
entrepreneurship and in developing favourable response from the people to support
potential entrepreneurs. NIESBUD confines its training activities to only such areas
which are totally new or where no other organisation is coming forward for
organising such programmes. NIESBUD was established in 1983 by the Ministry
of Industry of Government of India. The main functions of these organisations are:
a) Evolving effective training strategies and methodology.
b) Formulating scientific selection procedure.
c) Standardising model syllabus for training various target groups.
d) Developing training aids, manuals and other tools.
e) Facilitating and supporting agencies engaged in entrepreneurship
development
f) Conducting such programmes which are not undertaken by other
agencies.
agencies.
g) Maximising their benefits and accelerating the process of
entrepreneurship development.
h) Organising all those activities that help in developing the entrepreneurial
culture in the society.
 ii. Entrepreneurship Development Institute in India: It is a national institute set up
by Public Financial Institutions and Government of Gujrat. It promotes research,
training and institution building activities by encouraging active participation of
backward areas and special target groups in entrepreneurship. Its EDP is quite
comprehensive and successful and consists of the following steps.
a) Selecting potential entrepreneurs.
b) Achievement motivation training.
c) Product selection and project report preparation.
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d) Practical training and work experience.

e) Post training support and follow up.

Various programmes organised by EDII are rated as the most comprehensive, best
organised and most successful EDPs in our country.

iii. Technical Consultancy Organisation: Various State Governments in association

with all India financial institutions have promoted various technical consultancy
organisations to provide technical consultancy and training to perspective
entrepreneurs. These organisation provide a comprehensive package of services to
potential entrepreneurs. Some of the activities of TCOs can be summed up as below:
a) Development of industry clusters.
b) Conducting Industry Potential Surveys.
c) Energy and Environment Research and Management.
d) NPA Resolution.
e) Vocational Training.
f) Technology Facilitation/ Preparation of Project Profiles.
g) Conducting Entrepreneurship Development Programmes.
h) Carrying out Market Research for specific products.
i) Offering Merchant Banking Services.
j) Offering Consultancy for export oriented enterprises.

iv. Industrial Development Bank of India: IDBI was established under Industrial
Development Bank of India Act,1964. It is the principal financial institution for
providing credit and other facilities for developing industries and assisting
 development institutions. Till 1976, IDBI was a subsidiary bank of RBI and the
ownership was transferred to Government of India. IDBI is the tenth largest bank
in the world in terms of development. The National Stock Exchange, the National
Securities Depository Services Ltd., Stock Holding Corporation of India are some
of the institutions built by IDBI. The main functions of IDBI are:

Page – 32

a) To provide financial assistance to industrial enterprises.

b) To promote institutions engaged in industrial development.
c) To provide technical and administrative assistance for promotion management
and expansion of industry.
d) To undertake market and investment research and surveys in connection with
development of industry.
v. State Financial Corporations: Under the provision of State Financial Corporation
Act, 1952, the SFCs are set up in the different states for providing term finance to
medium and small scale industries. There are 18 SFCs (including Tamil Nadu
Industrial Investment Corporation Ltd.) operating in seventeen different states and
Delhi (Union Territory). There SFCs are under the diarchical control of the State
Government and the IDBI. The SFCs are empowered to provide financial assistance
in the form of loans and advances, subscription to shares and debentures,
underwriting of new issues, and guarantee of loans. But in practice, they have
concentrated mostly on loans and advances only.
vi. Small Industries Service Institutes: At the heart of all agencies dealing with
development of small industry is small industries development organisation, SIDO.
It was originally known as Central Small Industries Organisation (CSIO). Attached
to the ministry, SIDO administers Small Industries Service Institute. The Small
Industries Service Institutes are set up one in each state to provide consultancy and
training to small and prospective entrepreneurs. The activities of SISIs are
coordinate by the industrial management training division of the DC, SSI office
(New Delhi). In all there are 28 SISI’s and 30 branch SISI’S set up in state capitals
 and other places all over the country. SISI has wide spectrum of technological,
management and administrative tasks to perform. The functions of SISI are:
a) To assist existing and prospective entrepreneurs through technical and
managerial counselling such as help in selecting the appropriate machinery and
equipment, adoption of recognized standards of testing, quality performance,
etc.
b) Conducting EDPs all over the country.
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c) To advise the central and state governments on policy matters relating to small
industry development.
d) To assist in testing of raw materials and products of SSIs, their inspection and
quality control.
e) To provide market information to the SISI’s.
f) To enlist entrepreneurs for partition in Government stores purchase programme.
g) To recommend SSI’s for financial assistance from financial institutions.
h) Conduct economic and technical surveys and prepare techno economic feasible
reports for selected areas and industries.
i) Identify the potential for ancillary development through sub-contract
exchanges.
j) Organise seminar, workshops and Industries Clinics for the benefit of
entrepreneurs.

vii. Industrial Finance Corporation of India: Government of India set up the IFCI in
July, 1948 under special Act. This is the first financial institution set up in India
with the main object of making medium and long term credit to industrial needs.
The Industrial Development Bank of India, Scheduled Banks, insurance companies,
investment trusts and cooperative banks are the shareholders of IFCI. The Union
Government has guaranteed the repayment of capital and the payment of a
minimum capital dividend. The corporation is authorised to issue bonds and
debentures in the open market, to borrow foreign currency from the World Bank
and other organisations, accept deposits from the public and also borrow from the
Reserve Bank. The authorised share capital of the IFCI was Rs. 10 crore at the initial
 stage. According to the Industrial Finance Corporation (Amendment) Act, 1986, the
authorised capital of the corporation has been raised from Rs. 100 crore to Rs. 250
crore (the authorised capital may be fixed by the government of India by notification
from time to time). The functions of the IFCI are:
a) The corporation grants loans and advances to industrial concerns.

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b) Granting of loans both in rupees and foreign currencies.
c) The corporation underwrites the issue of stocks, bonds, shares, etc.
d) The corporation can grant loans only to public limited companies and
cooperatives but not to private limited companies and cooperative firms.

The IFCI performs many promotional activities:

a) Soft loan assistance: This scheme provides soft loan assistance to existence
industries in small and medium sector for developing technology through in-
house research and development.
b) Entrepreneur Development: IFCI provides financial support to EDPs conducted
by several agencies all over India in cooperation with Entrepreneurship
Development Institute of India.
c) Industrial Development in backward areas: IFCI also take measures to promote
industrial development in backward areas through a scheme of concessional
finance.
d) Subsidial Consultancy: The IFCI gives subsidised consultancy for:
 Small entrepreneurs for meeting the cost of the project.
 Promoting ancillary industries.
 To do the market research.
 Reviving sickness.
 Implementing Modernisation.
 Controlling Pollution in factories.
e) Management Development: To improve the professional management the IFCI
sponsored the Management Development Institute in 1973. It established the
Development Banking Centre to develop managerial, manpower in industrial
concern, commercial and development banks.
viii. District Industries Centre: Districts Industries Centres have emerged since 1978
as the model agency for development of small and village industries. It provides all
the
ix. support services needed for development of SSI in the country. The DICs were
established with a view to provide integrated administrative framework at the

Page – 35

district level with professionally qualified personnel in technology, marketing,

credit, economic investigation, raw materials, so that DICs would be the ‘single
window’ raw materials through which all type of assistance would be channeled to
the small scale sector. They are virtually acting as per the plans and programmes of
both central as well as state government for the implementation of various
promotional measures from grass root level to develop SSI in the country. The DIC
is an integrated institution at the district level which provides all type of services
and facilities to the entrepreneurs. The entrepreneurs can get assistance from DIC
for setting up and running an industry. Upto 1991, 422 DICs were in operation in
the country, almost one for each district. These DICs have assisted more than 1.5
lakh units generating employment for more than 10.3 lakh persons. The four
metropolitan cities Mumbai, Chennai, Delhi and Kolkata have been kept outside the
purview of DICs. The DICs are funded by the State concerned and the centre jointly.
The government has provided substantial assistance to the DICs which can be spent
by DICs on construction of an office building, expenditure on furniture, fixtures,
equipment, vehicles and other recurring expenses. With thus facility, DICs in the
district level undertakes various promotional measures with a view to bring all out
development of SSI in the district. It starts from exploration of potential
entrepreneurs to marketing the products produced by the SSIs. The DICs provide
and arrange a package of assistance and facilities for credit guidance, raw materials,
training, marketing, etc. including the necessary help to unemployed educated
young entrepreneurs in general. Thus it may be said that DIC extends promotional,
technical, physical, financial, marketing and all other type of services required for
growth and development of SSI The main important functions of DIC are:
a) Identification of entrepreneurs: DICs help new entrepreneurs by conducting
entrepreneurial motivation programmes throughout the district particularly under
SEEUY scheme. DICs also take association of SISIs and TCOs for conducting
EDPs.

Page – 36

b) Provisional registration: Entrepreneurs can get provisional registration with DICs

which enable them to take all necessary steps to bring the unit into existence. The
entrepreneur can get assistance from term lending institutions only after getting
provisional registration. The provisional registration is awarded for two years
initially and can be renewed every year but only for two times.
c) Permanent Registration: When the entrepreneur completes all formalities required
to commence the production like selection of site, power connection, installing
machinery, etc. he can apply to DIC for permanent registration. It is only after
getting the permanent registration that the entrepreneur can apply for supply of raw
materials on concessional rates. Permanent registration is essential to avail all types
of benefits extended by the government from time to time.
d) Purchase of Fixed Assets: The DIC recommends loan applications of the
prospective entrepreneur to various concerned financial and developmental
institutions, e.g., NSIC, SISI, etc. for the purchase of fixed assets. It also
recommend to the commercial banks for meeting the working capital requirement
of SSI to run day to day operations.
e) Clearences from various departments: DIC takes the initiative from clearance from
various departments which is essential to start a unit. It even takes follow up
measures to get speedy power connection.
f) Assistance to village artisans and handicrafts: Inspite of inherent talent and ability
village artisans are not better up because they lack financial strength to strive in the
competitive market. DIC in support with different lead banks and nationalized
banks extends financial support to those artisans.
g) Incentives and subsidies: DIC helps SSI units and rural artisans to subsidies granted
by government under various schemes. This boost up the moral as well as the
 financial capacity of the units to take further developmental activities. The different
types of subsidies are power subsidy, interest subsidy for engineers and subsidy
under IRDP, etc. from various institutions.

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h) Interest free sales tax loan: SIDCO provides interest free sales tax loan up to a
maximum limit of 80% of the total fixed assets of SSI units set up in rural areas.
But the sanction order for the same is to be issued by DIC. The DIC recommends
the case of SSI units to National Small industries Corporation Limited for
registration for government purchase programme
i) Assistance of import and export: Government is providing various types of
incentives for import and export of specific goods and services. These benefits can
avail by any importer or exporter provided the same is routed through the concerned
DIC.
j) Fairs and Exhibitions: The DICs inspires and facilitates the SSI units to participate
in various fairs and exhibitions which are organized by the Government of India
and other organizations to give publicity to industrial products. DICs provide free
space to SSIs for the display of their products and attitudes financial assistance for
the purpose.
k) Training Programmes: DIC organizes training programmes to rural entrepreneurs
and also assists other institutions or organization imparting training to train the
small entrepreneurs.
l) Self employment for educated unemployed youth: The DIC has launched a scheme
to assist the educated unemployed youth by providing them facilities for self
employment. The youth should be in the age group of 18 to 35 years with minimum
qualification of Metric or Middle with ITI in Engineering or Technical trade.
Technocrats and women are given preference.
x. ICICI: ICICI venture is a specialist alternative assets manager based in India. The
firm is a wholly owned subsidiary of ICICI Bank, the largest financial sector
financial services group in India. ICICI venture has been at the forefront of driving
entrepreneurship in India for over two decades, both as a partner and as a capital
provider for individuals with a clear common objective, the passion to pursue
business ideas in the quest for creating value for all stakeholders and for the larger
good of the nation. Till date, various funds managed by the firm have invested in
over 500 companies in sectors as diverse as Information Technology,

Page – 38

Life Sciences and Healthcare, Media and Entertainment, Banking and Financial
Services, Infrastructure, Retail, Aviation, Auto textiles, Fine chemicals, Consumer
Products, Logistics, etc. The firm played a pioneering role in the Indian Venture
Capital Industry during the 1990s but shifted focus to other alternative asset classes
during the past decade in line with the evolution of Indian Industry. Across sector,
the firm has helped in establishing several new business models to enable
productivity improvements, technology upgradation and import substitution as a
means of enhancing the competitive advantage of Indian Industry in a rapidly
changing global market environment. The firm is widely regarded as prime mover
in the Indian alternative assets industry, having established a successful track record
of investing and nurturing companies across economic cycles and across various
classes of alternative assets such as Private Equity, Real Estate and Mezzanine
Finance, with infrastructure and Special Situations being the latest additions to its
spectrum of activities. Going forward, the firm continues to explore new avenues
within the alternative assets industry as a means of addressing funding requirements
of Indian entrepreneurs and also as a means of offering a comprehensive alternative
asset management platform to long term investors who are interested in
participating in India’s economic development.
 Page – 39

CHAPTER – 4
ANALYTICAL STUDY
OF
ENTREPRENEURSHIP
DEVELOPMENT
IN SAMBALPUR
 TABLE : 1

Number of units registered

YEAR NUMBER OF UNITS % CHANGE

REGISTERED
1984 – 85 579 NIL
1985 – 86 27 (2044.44)
1986 – 87 33 18.18
1987 – 88 29 (13.79)
1988 – 89 36 19.44
1989 – 90 40 10
1990 – 91 28 (42.85)
1991 – 92 20 (40)
1992 – 93 22 (9.09)
1993 – 94 15 (46.66)

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of units
registered in the industrial sector with exception to 1990 – 91, 1991 – 92, 1992 – 93 and
1993 – 94. It is because the Government has taken steps to train more number of
entrepreneurs to take up number of industrial unit.

Page – 40

TABLE : 2

Number of Employment Generated

YEAR NUMBER OF % CHANGE

EMPLOYMENT
GENERATED
1984 – 85 6055 NIL
1985 – 86 285 (2024.56)
1986 – 87 307 7.16
1987 – 88 362 15.19
1988 – 89 353 (2.54)
1989 – 90 471 25.05
1990 – 91 410 (14.8)
1991 – 92 314 (30.5)
1992 – 93 461 31.88
1993 – 94 155 (197.41)

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of
employment generated in the industrial sector. It is because the Government has taken
steps to develop more and more industrial units in the district so that the number of
employment opportunities increases.

Page – 41

TABLE : 3

Investment

YEAR INVESTMENT (LAKH) % CHANGE

1984 – 85 348 NIL
1985 – 86 29.12 (1095.05)
1986 – 87 33.03 11.83
1987 – 88 35.29 6.40
1988 – 89 48.64 (27.44)
1989 – 90 82.69 (41.17)
1990 – 91 141.85 0.41
1991 – 92 98.54 (43.95)
1992 – 93 56.06 75.77
1993 – 94 29.35 (91.05)

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that the investment in industrial unit under R.I.C,
Sambalpur shows a declining trend. This may be due to the unwillingness to take risk on
the part of the prospective entrepreneur.

Page – 42

TABLE : 4

Number of units registered

YEAR NUMBER OF UNITS % CHANGE

REGISTERED
1994 – 1995 21 NIL
1995 – 1996 10 (110)
1996 – 1997 16 0.0037
1997 – 1998 38 0.005
1998 – 1999 31 (0.002)
1999 – 2000 29 (6.89)
2000 – 2001 45 0.0035
2001 – 2002 55 18.18
2002 – 2003 35 57.14
2003 – 2004 32 (0.09)
2004 – 2005 22 (45.45)

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of units
registered in the industrial sector. It is because the Government has taken steps to train
more number of entrepreneurs to take up number of industrial unit.

Page – 43

TABLE : 5

Number of Employment Generated

YEAR NUMBER OF % CHANGE

EMPLOYEMENT
GENERATED
1994 – 1995 312 NIL
1995 – 1996 101 (208.9)
1996 – 1997 177 42.93
1997 – 1998 450 60.6
1998 – 1999 261 (72.41)
1999 – 2000 187 (39.57)
2000 – 2001 267 32.58
2001 – 2002 270 1.11
2002 – 2003 140 (92.85)
2003 – 2004 166 15.66
2004 – 2005 120 (38.33)
 SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of
employment generated in the industrial sector. It is because the Government has taken
steps to develop more and more industrial units in the district so that the number of
employment opportunities increases.

Page – 44

TABLE : 5

Investment

YEAR INVESTMENT (LAKH) % CHANGE

1994 – 1995 225.17 NIL
1995 – 1996 38.92 47.85
1996 – 1997 70.13 44.50
1997 – 1998 262.64 192.30
1998 – 1999 117.71 (126.83)
1999 – 2000 197.43 40.52
2000 – 2001 95.92 (105.82)
2001 – 2002 174.01 44.87
2002 – 2003 58.32 (198.97)
2003 – 2004 75.27 22.58
2004 – 2005 95.19 21.01

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that the investment in industrial unit under R.I.C,
Sambalpur shows a declining trend. This may be due to the unwillingness to take risk on
the part of the prospective entrepreneur.

Page – 45

TABLE : 4

Number of units registered

YEAR NUMBER OF UNITS % CHANGE

REGISTERED
2005 – 06 17 NIL
2006 – 07 18 5.55
2007 – 08 17 (5.88)
2008 – 09 08 (112.5)
2009 – 10 15 46.67
2010 – 11 20 25
2011 – 12 18 (11.11)
2012 – 13 15 (20)
2013 – 14 17 11.76

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of units
registered in the industrial sector. It is because the Government has taken steps to train
more number of entrepreneurs to take up number of industrial unit.

Page - 46

TABLE : 5

Number of Employment Generated

YEAR NUMBER OF % CHANGE

EMPLOYEMENT
GENERATED
2005 – 06 244 NIL
2006 – 07 155 (57.42)
2007 – 08 162 (4.32)
2008 – 09 53 (205.66)
2009 – 10 131 59.54
2010 – 11 141 7.09
2011 – 12 115 22.60
2012 – 13 121 4.95
2013 – 14 118 2.54

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that there has been a growth in a number of
employment generated in the industrial sector. It is because the Government has taken
steps to develop more and more industrial units in the district so that the number of
employment opportunities increases.

Page - 47

TABLE : 5

Investment

YEAR INVESTMENT (LAKH) % CHANGE

2005 – 06 329.73 NIL
2006 – 07 160.06 (106.01)
2007 – 08 324.24 50.63
2008 – 09 12.55 (2483.58)
2009 – 10 164.69 92.37
2010 – 11 131.06 (25.66)
2011 – 12 121.07 (8.25)
2012 – 13 132.01 8.28
2013 – 14 129.02 (2.31)

SOURCE – R.I.C, SAMBALPUR

The analysis of above table reveals that the investment in industrial unit under R.I.C,
Sambalpur shows a declining trend. This may be due to the unwillingness to take risk on
the part of the prospective entrepreneur.

Page – 48

CHAPTER – 5
SUMMARY OF
FINDINGS,
CONCLUSION AND
SUGGESTIONS
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS :

The Country cannot be economically developed unless the common people develop.
This development can only be possible if there will be sufficient creation of new enterprise and
for that purpose we need more entrepreneurs which will lead to entrepreneurship development
in India. If there will be sufficient investment, the formation of enterprise will be a lot easier.
It can be seen from the study conducted that with the support of the R.I.C, in terms of
investment Sambalpur has stepped in the Industrialized world resulting in the creation of more
numbers of industries as well as more employment opportunities. Ultimately, it can be said that
Entrepreneurship Development has lead to the development of Sambalpur.

5.1 FINDINGS OF THE STUDY

1) It is observed from the study that there has been a steady growth in the formation of
small scale units in the district.

2) It is further observed from the study that the process of industrialisaton has created
employment opportunities for the people of the district.

3) The investment pattern shows a declining trend. It indicates that the new entrepreneurs
are not willing to take the risk in certain fields.
 4) It is observed from the study that upto 1984-85, 6055 persons were employed in
different industries units.

5) It is further observed that it will solve the unemployment problems of the district.

6) The investment pattern shows a declining trend after 2004-05 because the new
entrepreneurs are not able to take up new projects with confidence.

Page - 49

5.2 SUGGESTION :

1) The R.I.C should take steps to identify new talents to create new industrial
entrepreneurs.
2) Common people should be made aware of the facility provided by Government.
3) New Entrepreneurship Development Programme should be conducted to develop the
emerging entrepreneurs.
4) New viable projects should be introduced by the State as well Central Government.
5) Agro based industries should be taken care of as the district fully depends on the
agriculture.
6) New infrastructural facilities should be provided to the entrepreneurs like better
transport facility, communication facility and power facility at the village level in order
to develop the village entrepreneurs.

5.3 CONCLUSION

The problem of unemployment can only be solved if there will be maximum enterprises
which will lead to self employment and those self employment people can act as the job
provider for other people which will raise the per capita income of those and will also raise the
national income of the country. With the entrepreneurial development, we can use the untapped
resources and can meet the rising demand. By providing financial and technological help to the
emerging entrepreneurs, we can raise the GDP of the country which will lead to economic
growth. So the Central as well as well State Government should concentrate about framing
different policy and to encourage entrepreneurial development across the country and leads to
economic development.

Page - 50

BIBLIOGRAPHY :

BOOKS

1. C.B. Gupta, S.S. Khanka., Entrepreneurship and Small Business Management, Sutan
Chand and sons, New Delhi, Fourth Edition.
2. S.P. Gupta, Statistical Method (Kalyani publisher)
3. D.N. Patri (Kalyani Publisher)
4. R.K. Sharma & Gupta, Business organization (Kalyani publisher)
5. Peter Drucker, Entrepreneurship development
6. Billy Cox, Development of Entrepreneurs
Page – 51