+

PROJECT REPORT
ON

A role of entrepreneurship in growing India

Submitted in partial fulfillment of requirement of

Bachelor of Business Administration (B.B.A) General

BBA (V) Semester (M)

Batch 2017-2020

Submitted to: Submitted by:

Ms Shweta Khandelwal Lakshya Agarwal

Assistant Professor Enroll no.: 50214101717

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

KALKAJI

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 Acknowledgement
A lot of effort has gone into this training report and for that I would like all those who
have contributed in completing this project..

Also, I am highly intended and extremely thankful to Dr.Shweta Khandelwal,

Assistant Professor, JIMS Kalkaji who as my guide was a constant source of
inspiration and encouragement to me. The strong interest evinced by her has helped
me in dealing with the problems I faced during the course of project work.

I express my profound sense of gratitude to them for their timely help and co-
operation in completing the project.

I would also like to thank my entire beloved family & friends for providing me
monetary as well as non – monetary support, as and when required without which
this project would not have completed on time. Their trust and patience is now
coming out in form of this thesis.

I perceive as this opportunity as a big milestone in my career development. I will

strive to use gained skills and knowledge in the best possible way, and I will continue
to work on their improvement, in order to attain desired career objectives. Hope to
continue cooperation with all of you in the future

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 Declaration

Student’s Undertaking

I hereby certify that this is my original work and it has never been submitted el
sewhere.

Project Guides:

Ms Shweta Khandelwal (Lakshya Agarwal)

Assistant Professor

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 CERTIFICATE OF COMPLETION

This is to certify that LAKSHYA AGARWAL, enrollment number 50214101717

pursuing BBA (General) from Jagannath International Management School,

Kalkaji has successfully completed the research project on “A role of

entrepreneurship in growing India” under my supervision and guidance.

He has taken care of all necessary aspects and has shown keen interest and utmost
sincerity during the completion of this project file.

I certify that this project file is up to my satisfaction and as per the

guidelines laid down by the Guru Gobind Singh Indraprastha University.

Ms Shweta Khandelwal

(Internal mentor)

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 CONTENTS

Description Page No.

Acknowledgement 2
Certificates 3
Introduction to topic 6
Objectives 17
Literature review 19
Research Methodology 33
Analysis 36
Finding 56
Limitations 58
Recommendations and Conclusion 60
Bibliography 62

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Introduction to topic

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 Introduction

Since independence India is setting path to sustain economic growth in the

country (Lal & Clement, 2005). Many organizations are involved in
entrepreneurship development activities with specialized goals to cater
growing the need of the industry (Ahmed & Julion, 2012). Researchers have
analysed entrepreneurial orientations, entrepreneurs’ behaviour, their
personality traits, leadership styles, and impact of entrepreneurial education
on entrepreneurial orientations of the youth (Lee, Lim & Pathak, 2009,
Lepoutre et. al., 2010, Ryan, Tipu & Zeffane, 2011). Various other exogenous
factors like, culture/ethnic experience on the overall business, and family
businesses background, gifted business acumen, and their emotional
intelligence were found to be related with entrepreneurial orientations
(innovativeness, risk taking capacity of an entrepreneurs, proactiveness, info-
seeking behaviour) (Pradhan & Nath, 2012) in the past. However, these
observations are from the studies conducted mainly in developed part of the
world like USA, European Counties, Japan, & China. In the present scenario,
need of study in a developing country like India is imperative.
According to the Planning Commission of India, developing countries are
characterized by coexistence of unutilized or underutilized manpower and
unexplored natural resources. Pertaining to this, there are two crucial
measurements of economic development i.e. per capita income and
development potentials (Gupta & Srinivasan, 1992). In the present scenario,
entrepreneurship development means adding value to the business, society,
and most importantly to revenue generation in the country. In the pursuance of
adding academic value, this study is an effort to synthesize information to
determine current states of knowledge about entrepreneurship. The idea is to
identify factors that may contribute efficiently in the progression of concept
“entrepreneurship."

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Entrepreneurship is the process of designing, launching and running a new
business, which is often initially a small business. The people who create these
businesses are called entrepreneurs.

Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the

risks and enjoying most of the rewards. 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, using the skills and initiative
necessary to anticipate needs and bring good new ideas to market. Entrepreneurs
who prove to be successful in taking on the risks of a startup are rewarded with
profits, fame, and continued growth opportunities. Those who fail, suffer losses and
become less prevalent in the markets.

How Entrepreneurs Work:

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. They typically create a business plan, hire labour, acquire resources and
financing, and provide leadership and management for the business.

Entrepreneurs commonly face many obstacles when building their companies. The
three that many of them cite as the most challenging are as follows:

1. Overcoming bureaucracy
2. Hiring talent
3. Obtaining financing

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The Entrepreneur and Financing

Given the riskiness of a new venture, the acquisition of capital funding is particularly
challenging, and many entrepreneurs deal with it via bootstrapping: financing a
business using methods such as using their own money, providing sweat equity to
reduce labour costs, minimizing inventory, and factoring receivables.

While some entrepreneurs are lone players struggling to get small businesses off the
ground on a shoestring, others take on partners armed with greater access to capital
and other resources. In these situations, new firms may acquire financing from
venture capitalists, angel investors, hedge funds, crowd sourcing, or through more
traditional sources such as bank loans.

Entrepreneurship:

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 start-up businesses have to close due to "lack of funding,
bad business decisions, an economic crisis, lack of market demand, or a
combination of all of these."

A broader definition of the term is sometimes used, especially in the field

of economics. In this usage, an Entrepreneur is an entity which has the ability to find
and act upon opportunities to translate inventions or technologies into products and
services: "The entrepreneur is able to recognize the commercial potential of the
invention and organize the capital, talent, and other resources that turn an invention
into a commercially viable innovation." In this sense, the term "Entrepreneurship"
also captures innovative activities on the part of established firms, in addition to
similar activities on the part of new businesses.

Economists have never had a consistent definition of "entrepreneur" or

"entrepreneurship" (the word "entrepreneur" comes from the French
verb entreprendre, meaning "to undertake"). Though the concept of an entrepreneur

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existed and was known for centuries, the classical and neoclassical economists left
entrepreneurs out of their formal models: They assumed that perfect information
would be known to fully rational actors, leaving no room for risk-taking or discovery.
It wasn't until the middle of the 20th century that economists seriously attempted to
incorporate entrepreneurship into their models.
Three thinkers were central to the inclusion of entrepreneurs: Joseph Schumpeter,
Frank Knight, and Israel Kirzner. Schumpeter suggested that entrepreneurs—not just
companies—were responsible for the creation of new things in the search of profit.
Knight focused on entrepreneurs as the bearers of uncertainty and believed they
were responsible for risk premiums in financial markets. Kirzner thought of
entrepreneurship as a process that led to the discovery.

Entrepreneurs Impact the Economy

In economist-speak, an entrepreneur acts as a coordinating agent in a capitalist

economy. This coordination takes the form of resources being diverted toward new
potential profit opportunities. The entrepreneur moves various resources, both
tangible and intangible, promoting capital formation.
In a market full of uncertainty, it is the entrepreneur who can actually help clear up
uncertainty, as he makes judgments or assumes the risk. To the extent that
capitalism is a dynamic profit-and-loss system, entrepreneurs drive efficient
discovery and consistently reveal knowledge. Established firms face increased
competition and challenges from entrepreneurs, which often spurs them toward
research and development efforts as well. In technical economic terms, the
entrepreneur disrupts course toward steady-state equilibrium.

Entrepreneurs Help Economies

Nurturing entrepreneurship can have a positive impact on an economy and a society

in several ways. For starters, entrepreneurs create new business. They invent goods
and services, resulting in employment, and often create a ripple effect, resulting in
more and more development. For example, after a few information technology

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companies began in India in the 1990s, businesses in associated industries, like call
center operations and hardware providers, began to develop too, offering support
services and products.

Entrepreneurs add to the gross national income. Existing businesses may remain
confined to their markets and eventually hit an income ceiling. But new products or
technologies create new markets and new wealth. And increased employment and
higher earnings contribute to a nation’s tax base, enabling greater government
spending on public projects.

Entrepreneurs create social change. They break tradition with unique inventions that
reduce dependence on existing methods and systems, sometimes rendering them
obsolete. Smartphones and their apps, for example, have revolutionized work and
play across the globe.

Entrepreneurs invest in community projects and help charities and other non-profit
organizations, supporting causes beyond their own. Bill Gates, for example, has
used his considerable wealth for education and public health initiatives.

Entrepreneurial Ecosystems:

There is research that shows high levels of self-employment can stall economic
development: Entrepreneurship, if not properly regulated, can lead to unfair market
practices and corruption, and too many entrepreneurs can create income inequalities
in society. Overall, though, entrepreneurship is a critical driver of innovation and
economic growth. Therefore, fostering entrepreneurship is an important part of the
economic growth strategies of many local and national governments around the
world.

To this end, governments commonly assist in the development of entrepreneurial

ecosystems, which may include entrepreneurs themselves, government-sponsored
assistance programs and venture capitalists. They may also include non-government

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organizations, such as entrepreneurs' associations, business incubators, and
education programs.
For example, California's Silicon Valley is often cited as an example of a well-
functioning entrepreneurial ecosystem. The region has a well-developed venture
capital base, a large pool of well-educated talent, especially in technical fields, and a
wide range of government and non-government programs fostering new ventures
and providing information and support to entrepreneurs.

Becoming an Entrepreneur

After retiring her professional dancing shoes, Judi Sheppard Missett taught a dance
class to civilians in order to earn some extra cash. But she soon learned that women
who came to her studio were less interested in learning precise steps than they were
in losing weight and toning up. Sheppard Missett then trained instructors to teach her
routines to the masses, and Jazzercise was born. A franchise deal followed. Today,
the company has more than 8,900 locations worldwide.

Following an ice cream making correspondence course, Jerry Greenfield and Ben
Cohen paired $8,000 in savings with a $4,000 loan, leased a Burlington, Vt., gas
station and purchased equipment to create uniquely flavored ice cream for the local
market. Twenty years later, Ben & Jerry’s hauls in millions in annual revenue.

Although the "self-made man" (or woman) has always been a popular figure in
American society, entrepreneurship has gotten greatly romanticized in the last few
decades. In the 21st century, the example of Internet companies like Alphabet, fka
Google (GOOG) and Facebook (FB)—both of which have made their founders wildly
wealthy—people are enamored with the idea of becoming entrepreneurs.

Unlike traditional professions, where there is often a defined path to follow, the road
to entrepreneurship is mystifying to most. What works for one entrepreneur might not
work for the next and vice versa. That said, there are five general steps that most, if
not all, successful entrepreneurs have followed:

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1. Ensure Financial Stability
This first step is not a strict requirement but is definitely recommended. While
entrepreneurs have built successful businesses while being less than financially
flush (think of Facebook founder Mark Zuckerberg as a college student), starting out
with an adequate cash supply and ensuring ongoing funding can only help an
aspiring entrepreneur, increasing his or her personal runway and give him more time
to work on building a successful business, rather than worrying about making quick
money.

2. Build a Diverse Skill Set

Once a person has strong finances, it is important to build a diverse set of skills and
then apply those skills in the real world. The beauty of step two is it can be done
concurrently with step one.

Building a skill set can be achieved through learning and trying new tasks in real-
world settings. For example, if an aspiring entrepreneur has a background in finance,
he can move into a sales role at his existing company to learn the soft skills
necessary to be successful. Once a diverse skill set is built, it gives an entrepreneur
a toolkit that he can rely on when he is faced with the inevitability of tough situations.

3. Consume Content Across Multiple Channels

As important as building a diverse skill set is, the need to consume a diverse array of
content is equally so. This content can be in the form of podcasts, books, articles or
lectures. The important thing is that the content, no matter the channel, should be
varied in what it covers. An aspiring entrepreneur should always familiarize himself
with the world around him so he can look at industries with a fresh perspective,
giving him the ability to build a business around a specific sector.

4. Identify a Problem to Solve

Through the consumption of content across multiple channels, an aspiring
entrepreneur is able to identify various problems to solve. One business adage
dictates that a company's product or service needs to solve a specific pain point—
either for another business or for a consumer group. Through the identification of a

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problem, an aspiring entrepreneur is able to build a business around solving that
problem.

It is important to combine steps three and four so it is possible to identify a problem

to solve by looking at various industries as an outsider. This often provides an
aspiring entrepreneur with the ability to see a problem others might not.

5. Solve That Problem

Successful startups solve a specific pain point for other companies or for the public.
This is known as "adding value within the problem." Only through adding value to a
specific problem or pain point does an entrepreneur become successful.

Say, for example, you identify the process for making a dentist appointment is
complicated for patients, and dentists are losing customers as a result. The value
could be to build an online appointment system that makes it easier to book
appointments.

Passion to Action

What else do entrepreneurial success stories have in common? They invariably

involve industrious people diving into things they’re naturally passionate about.

Giving credence to the adage, “find a way to get paid for the job you’d do for free,”
passion is arguably the most important component startup business owners must
have, and every edge helps. While the prospect of becoming your own boss and
raking in a fortune is alluring to entrepreneurial dreamers, the possible downside to
hanging one’s own shingle is vast. Income isn’t guaranteed, employer-sponsored
benefits go by the wayside, and when your business loses money, your personal
assets can take a hit—not just a corporation’s bottom line. But adhering to a few tried
and true principals can go a long way in diffusing risk.

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Getting Your Hands Dirty

When starting out, it’s essential to personally handle sales and other customer
interactions whenever possible. Direct client contact is the clearest path to obtaining
honest feedback about what the target market likes and what you could be doing
better. If it’s not always practical to be the sole customer interface, entrepreneurs
should train employees to invite customer comments as a matter of course. Not only
does this make customers feel empowered, but happier clients are more likely to
recommend businesses to others.

Personally answering phones is one of the most significant competitive edges home-
based entrepreneurs hold over their larger competitors. In a time of high-tech
backlash, where customers are frustrated with automated responses and touch-tone
menus, hearing a human voice and is one surefire way to entice new customers and
make existing ones feel appreciated—an important fact, given that some 80% of all
business is generated from repeat customers.

Paradoxically, while customers value high-touch telephone access, they also expect
a highly polished website. Even if your business isn’t in a high-tech industry,
entrepreneurs still must exploit internet technology to get their message across. A
startup garage-based business can have a superior website than an established
$100 million company. Just make sure a live human being is on the other end of the
phone number listed.

Knowing When to Change Course

Few successful businesses owners find perfect formulas straight out of the gate. On
the contrary: ideas must morph over time. Whether tweaking product design or
altering food items on a menu, finding the perfect sweet spot takes trial and error.

Former Starbucks Chairman and CEO Howard Schultz initially thought playing Italian
opera music over store speakers would accentuate the Italian coffeehouse

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experience he was attempting to replicate. But customers saw things differently and
didn’t seem to like arias with their espressos. As a result, Schultz jettisoned the
opera and introduced comfortable chairs instead.

Questions for Entrepreneurs

Embarking on the entrepreneurial career path to “being your own boss” is exciting.
But along with all your research, make sure to do your homework about yourself and
your situation.

Few Questions to Ask Yourself:

Do I have the personality, temperament, and mindset of taking on the world on my

own terms?

Do I have the required ambiance and resources to devote all my time to my venture?

Do I have an exit plan ready with a clearly defined timeline in case my venture does
not work?

Do I have a concrete plan for next "x" number of months or will I face challenges
midway due to family, financial or other commitments? Do I have a mitigation plan
for those challenges?

Do I have the required network to seek help and advice as needed?

Have I identified and built bridges with experienced mentors to learn from their
expertise?

Have I prepared the rough draft of a complete risk assessment, including

dependencies on external factors?

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Importance of role of entrepreneurship in the growing India:

1. Wealth Creation and Sharing: By establishing the business entity, entrepreneurs

invest their own resources and attract capital (in the form of debt, equity, etc.) from
investors, lenders and the public. This mobilizes public wealth and allows people to
benefit from the success of entrepreneurs and growing businesses. This kind of
pooled capital that results in wealth creation and distribution is one of the basic
imperatives and goals of economic development.

2. Create Jobs: Entrepreneurs are by nature and definition job creators, as opposed
to job seekers. The simple translation is that when you become an entrepreneur,
there is one less job seeker in the economy, and then you provide employment for
multiple other job seekers. This kind of job creation by new and existing businesses
is again is one of the basic goals of economic development. This is why the Govt. of
India has launched initiatives such as StartupIndia to promote and support new
startups, and also others like the Make in India initiative to attract foreign companies
and their FDI into the Indian economy. All this in turn creates a lot of job
opportunities, and is helping in augmenting our standards to a global level.

3. Balanced Regional Development: Entrepreneurs setting up new businesses and

industrial units help with regional development by locating in less developed and
backward areas. The growth of industries and business in these areas leads to
infrastructure improvements like better roads and rail links, airports, stable electricity
and water supply, schools, hospitals, shopping malls and other public and private
services that would not otherwise be available.Every new business that locates in a
less developed area will create both direct and indirect jobs, helping lift regional
economies in many different ways. The combined spending by all the new
employees of the new businesses and the supporting jobs in other businesses adds
to the local and regional economic output. Both central and state governments
promote this kind of regional development by providing registered MSME businesses
various benefits and concessions.

4. GDP and Per Capita Income: India’s MSME sector, comprised of 36 million units
that provide employment for more than 80 million people, now accounts for over 37%
of the country’s GDP. Each new addition to these 36 million units makes use of even

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more resources like land, labor and capital to develop products and services that add
to the national income, national product and per capita income of the country. This
growth in GDP and per capita income is again one of the essential goals of
economic development.

5. Standard of Living: Increase in the standard of living of people in a community is

yet another key goal of economic development. Entrepreneurs again play a key role
in increasing the standard of living in a community. They do this not just by creating
jobs, but also by developing and adopting innovations that lead to improvements in
the quality of life of their employees, customers, and other stakeholders in the
community. For example, automation that reduces production costs and enables
faster production will make a business unit more productive, while also providing its
customers with the same goods at lower prices.

6. Exports: Any growing business will eventually want to get started with exports to
expand their business to foreign markets. This is an important ingredient of
economic development since it provides access to bigger markets, and leads to
currency inflows and access to the latest cutting-edge technologies and processes
being used in more developed foreign markets. Another key benefit is that this
expansion that leads to more stable business revenue during economic downturns in
the local economy.

7. Community Development: Economic development doesn’t always translate into

community development. Community development requires infrastructure for
education and training, healthcare, and other public services. For example, you need
highly educated and skilled workers in a community to attract new businesses. If
there are educational institutions, technical training schools and internship
opportunities, that will help build the pool of educated and skilled workers.

A good example of how this kind of community development can be promoted is

Azim Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for
promoting education through the Azim Premji Foundation. This foundation works
with more than 350,000 schools in eight states across India. So, there is a very
important role for entrepreneurs to spark economic development by starting new
businesses, creating jobs, and contributing to improvement in various key goals such
as GDP, exports, standard of living, skills development and community development.

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Objectives

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 Objective

 To study the role of entrepreneurship in the growing economy.

 To understand the importance of entrepreneurs and entrepreneurship

for any developing country.

 To study how our government is helping to promote entrepreneurship.

 Contribution of an entrepreneur in any society.

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Literature review

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 Literature review

ROLE OF ENTREPRENEURSHIP

2.1 INTRODUCTION

Entrepreneurship lies at the centre of economic development. The relationship

between entrepreneurship and economic development is similar to the relationship
between cause and effect. It is the spirit of enterprise among people that leads to the
development of particular society. Entrepreneurship is directly and indirectly
responsible for the alround development of the country. It has not only contributed to
the economic development of the country but also largely contributed for the
industrial development of the country. Even today, entrepreneurship is required in
agriculture, horticulture, sericulture, etc. for the development of country as a whole.
Entrepreneurship, therefore, in our country has to subserve the national objective.
There is an apparent conflict between social objective and economic imperatives.
This conflict has to be resolved first by the individual entrepreneur in his own mind
and make economic growth, which includes industrial development, as one of the
instruments of attaining the social objectives. A high sense of social responsibility is
thus an essential attribute of the emergent entrepreneurship in India.

2.2 ROLE OF ENTREPRENEURSHIP: -

2.2.1 Economic Development

Entrepreneurship plays an important role in economic system. Economic system

determines the nature and scope of entrepreneurship. Economic system grows and
takes shape under the influence of industrial policy, economic policy, socio-political
and cultural ideas of the people. Entrepreneurship gives a fillip to new organisational
forms and the economy has to adjust to these demands. There is a direct correlation
between the level of economic development and the level of entrepreneurship. An
entrepreneur is a creator of wealth which is key to economic development.

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Entrepreneurship is the most important and indispensable part of the social and
economical growth of any country - developed, developing or underdeveloped. This
entrepreneurship is very scare source in the country. It has rightly been said that
entrepreneurs are not bom but prepared/ produced. The entrepreneurship has direct
relationship with the people. Those who take up the challenge to start their own
business/ industry are recognised as entrepreneurs. The development of
entrepreneur has been recognised widely as the key to economic growth,
development and human welfare. It has therefore, become necessary to find out
suitable entrepreneurs. To bring out the hidden entrepreneurship ability of people, it
is necessary to motivate them. Entrepreneurial skill is very much essential for
industrialization and to meet the employment. Mr. V. V. Bhatt, member of Economic
Institute of World Bank, Washington has rightly mentioned that looking historically, to
start and maintain the change in the social and economical growth process, the
contribution of entrepreneur has been recognised as godfather. According to the
German economist, settled in USA., Mr.Joesph Schumpeter, in the economic growth
of any country, the entrepreneur and entrepreneurship both play a vital role.
Peter Drucker, father of modern management, said that, in all the countries in the
world, the entrepreneurs are between 12% to 15%. This is very low percentage. It is
absolutely necessary to increase this ratio for economic growth. The solution to this
problem is to attract more and more people for entrepreneurship. Entrepreneurs
initiate, increase and sustain the process of economic development in the following
ways.

(a) Capital Formation:-

Entrepreneurs mobilise the idle savings of the public through the issue of shares and
debentures and collecting deposits or through issues of industrial securities.
Investments of public savings in industry result in productive utilisation of natural
resources. Thus, entrepreneurs increase the rate of capital formation which is
essential for rapid economic growth. It also helps in the development of the country.
Below given are the figures of capital formation during last few years.
Capital formation includes investment in India by Indian investors, foreign countries
and investment outside India by Indian companies is shown in table 2.1.

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(b) Increase in Per-Capita Income:

Entrepreneurs locate and exploit opportunities. They convert the latent and idle
resources like land, labour and capital into productive form. Entrepreneurs can start
new industrial units and also can introduce new products in the market. They thus,
help to increase gross national product and net national income in the country and
due to this per-capita income also increases, which is an important yard stick for
measuring economic growth. The data of increase in per-capita income for last few
years is shown in Table 2.2.

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(c)Generation of Employment:-
Entrepreneurs generate employment opportunities directly and indirectly. Directly
means self-employment which is the best way for independent and honorable
business or industrial life. Indirectly means by setting up business units which
offer jobs to thousands of people. Thus, through entrepreneurship one can
contribute in the solving the problem of unemployment in the country, this in
another way solves many other problems which are attached with unemployment.
The details of which are given in Table 2.3.

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(d) Economic Independence:-
Entrepreneurship is essential for national self-reliance. Industrial entrepreneurs help
to manufacture indigenous products which reduces the dependence on foreign
countries. Businessmen by having their own export oriented units, export goods and
services on a large scale and thereby earn a scarce foreign exchange for the
country. Such import substitution and export promotion help to ensure the economic
development. The figures of exports by SSI units are given in Table 2.4.

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(e) Balanced regional development:-

With more facilities available in urban areas, there will be a tendency on the part of
entrepreneurs to start enterprises in and around big cities, causing migration of rural
manpower. This creates an imbalance in growth of urban and rural areas besides
causing heavy financial burden on the local authority and government for providing
basic and essential amenities like housing, water, transport etc. for the migrated
population.
Entrepreneurship balances the regional development. Government encourages the
entrepreneurs to establish their business undertakings in backward, rural, hilly and
mountain areas. This way such areas can be developed for industrial and
commercial activities, this in turn, ultimately helps the areas to get employment, and
to remain in touch with the modern changes in the world. They can improve their
standards of living. Government is providing various types of financial and non-
financial assistance and other infra-structural facilities required by the entrepreneurs
to start business/industrial units. Government directly and indirectly helps in
establishing industrial estates in backward and rural areas so that there will be a
balanced regional development in the country. Government provide various types of
assistance to establish the business units in backward, rural, less developed, hilly
and mountain areas to the entrepreneurs who initiate their enterprises in such areas
where there is no banking facilities, transport facilities, power facility, repairs and
maintenance facilities, communication facilities, etc. There are number of places,
where only one or few factories were started. With the passage of time, these places
gained importance and attracted other industries. As a place gains in industries,
certain facilities usually begin to develop e.g. in public sector - Steel plants - BHEL,
SAIL, in Private sector - Modi, Tata have put forth unknown places on international
map.
In order to achieve a healthy balance in the growth of rural and urban areas,
government policies are now focusing on the development of rural areas,
encouraging entrepreneurs to start ventures there. If agro-based industries are set
up all over the country, it will provide a better balance of industrial growth.

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(f) Earning foreign Exchange:-

Entrepreneurship helps the country to earn foreign exchange. Due to the heavy
demand of handicrafts, pharmaceuticals, chemicals, IT, processed food and other
indigenous goods in foreign country, a large amount of foreign currency is snatched
by it. Agricultural products like tea, coffee, wheat, sugar, cotton, etc. and other
industrial and consumer products play an important role in earning foreign exchange.
Government is encouraging our export businesses and also providing assistance to
the exporters for increasing their exports. Government has established so many
institutions for encouraging the entrepreneurs to the exportable goods. The figures
related to the export for the last few years are shown in Table 2.4

(g) Increase in Purchasing Power:-

Entrepreneurship directly increases the production of goods and services. At the

same time it provides employment, this in turn, increases industrial income and
thereby it increases purchasing power of individuals. Again this can accelerates the
pace of industrialisation and economic development. Ultimately it demands a new
class of entrepreneurs.

(h) Contribution to tax:-

Tax is one of the sources of the government revenue. Government collects taxes
under various heads of income. Then government spends it for the welfare of the
country and balance of payment. Government as a result of this provides more and
more incentives to the entrepreneurs to have their own units, then they have to pay
taxes if they earn profit. They have to pay sales tax, income tax, excise, custom
duties and local taxes, etc. which are the sources of income to the government. The
income from taxes for last few years are given in Table 2.5.

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(i) Solving Unemployment and Underemployment:-

Indian economy faces two major problems, (i) capital shortage and (ii) labour
affluent, resulting on widespread unemployment. To meet this socioeconomic
problem, we need to take up progammes to promote entrepreneurs who can set up
small scale industries / enterprises, which have the potential of generating
employment five times more than that of large establishments with the same amount
of capital investment. In large establishments also, there is lot of underemployment,
resulting in frustration and job dissatisfaction among qualified or experienced
technical personnel. Hence government has undertaken schemes for the educated
unemployed and the experienced technicians/ technologists to take up self-
employment. A few such schemes are as follows :

29
  Prime Minister's "Rozgar Yojana"
 Priyadharshini Scheme of Bank of India (for women)
 National Equity Fund.
 Mahila Udyam Nidhi Yojana
 Refinance scheme of small industrial development of Bank of India for small
and rural entrepreneurs.

(j) Harnessing Youth Vigour

The educated youth are more articulated and are conscious of their rights. When the
state fails to provide them the opportunity to earn their livelihood, they become
frustrated and channelise their energies to violent and other destructive activities.
One effective way of harnessing the youth vigour is by entrepreneurial motivation,
thereby providing them an opportunity for self-employment. The Government of India
has taken up several programmes with this objectives.

(k) Increase National Production:-

National production is mainly to cater to the local and external needs. To play an
effective role in the international market, we need to work for the opening up of
sectors for employment and wealth generation. As the globalisation process gets
incorporated in Indian industry, our efforts should be not only to produce goods and
services at competitive costs, but to carve out into the export market. Entrepreneurs
need to focus their attention on exports and simultaneously plan for producing goods
and services that will substitute an imports, thus helping the nation in conserving
foreign exchange, and rendering efficient service to the customers.
With the development of entrepreneurs, there will be an overall increase in
production and productivity both for internal and international markets.
The above narrated paragraphs prove that there is an urgent need of
entrepreneurship to be developed upto the last extent so that economic development
can take place to its fullest extent.

30
2.2.2 Industrial Development:-

Entrepreneurship has not only contributed to the economic development of the

country but it has also largely contributed to the industrial development of the
country. The success or progress of any country, today, largely depends on
industrial development of that nation. Entrepreneurship has initiated, increased and
sustained the process of industrial development in India in following ways :

(a) Increase in Industrial Unit Production:

-
Entrepreneurship helps in establishing new industrial units, at the same time also
assists the industrial units to increase their production. Today India has regain self-
sufficiency in many products due to entrepreneurship development. The process of
developing new entrepreneurs is going on and they will adopt new technology, that
will improve the quality of their products and will find out new products or substitute
products in the market. As soon as new entrepreneurs set up new industrial units
employment opportunities and production of new products are going to take place.
This, in turn, increases the additional output in industrial world. Entrepreneurship
development programme assists the manufacturers in increasing their output. It
provides knowledge to entrepreneurs about the latest technological development
and also assists them in making fuller utilisation of natural and other resources
available to them. It is the entrepreneurship development due to which
modernisation and renovation take place in the industry. The percentage increased
in industrial production since last few years are shown in Table 2.6.

31
Agricultural production, industrial production, SSI sector production, etc. increased
due to the entrepreneurship. Thus, on account of entrepreneurship industrial,
agricultural and SSI sectors developed with increasing rates year after year.

(b) Improvement in standard of living :

Entrepreneurs set up industries in backward areas, which removes the scarcity of

essential commodities, they introduce new products and provide new employment
opportunities, and, thereby more and more people get employment in various
industrial units which results into increment in personal income, family income and
per capita income, and ultimately raises the standard of living of people. Large
number of varieties of goods could be offered at lower rates as large number of small
entrepreneurs enter in the field of industrial world.

(c) Use of advanced technology

Development of science and technology has resulted into new production methods
and qualitative production of varieties of products at lower rates. Advanced
technology has changed the nature of the national and international competition,
imports and exports of various goods. Talented entrepreneur is able to search new
technology which is important for industrial and economic development of the
country.

(d) Expansion of Market

Today's global world become a small village and also a global market and therefore
there exists a global alround competition in today's business world, it is, therefore,
very difficult to stay in the market. Only the products of good quality can survive and
courageous and creative entrepreneurs are able to face such situations. If one wants
to stay in the market then he has to increase his sales and it is very tough to
increase sales in today's market. But if entrepreneurs make necessary changes
through innovation in characteristics of the products and lowering comparatively the

32
prices of their products, they can then stand in the market. Entrepreneurs can
expand their markets if they manufacture their products according to the customers'
demand. Once if they enter in it, then slowly and gradually will expand the market of
their products.

(e) Use of Natural Resources:-

If the natural resources of the country are fully utilised then the country can make a
good progress - industrial and economic. Entrepreneurs use variety of resources
optimistically and economically, which will then help in overall progress of the
country. R & D, can help entrepreneur to find out and explore new resources.

(f) Development of new industries and ancillary units:-

In any country its industrial development become possible through entrepreneurs. By

installing new industries the entrepreneurs not only develop the country industrially
but also economically . Over and above this the use of advanced technology and
research and development can also contribute to the industrial development of the
country. When big industries come into existence they also give birth to small and
other ancillary industries on which the former have to depend for their raw-materials
requirement and other services. The momentum of an early start by industrialists in
particular area which is backward and/or remote area will be developed slowly and
gradually. There are number of places where, only few factories were started, with
the passage of time these places gained importance and attracted other industries.
At the same time at these places certain other facilities usually begin to develop, like
road, transport, communication, power, repair and maintenance and insurance.
These all facilities turn into the development of the labour market.

(g) Innovation through research and development:-

New class of entrepreneurs nowadays exploit the new advanced technology for
manufacturing new products. It may be totally new product or differences or changes
in a existing products like increase in size, change of colour, design, shape, packing,

33
etc. This is possible through research and development. The old entrepreneurs have
fixed ideas and notion, they were not ready to change their methods and adopt new
technology and changes while the new class of entrepreneurs is ready to make
changes and produce new and variety of products. As our country is on the path of
developing economically and industrially, research and development institutions and
departments are also set-up by the big industrialists and associations of various
industries. Those industrialists who are not in a position to have their own research
and development department in their own industries, they can avail the services and
facilities of these research and development institutions.
Entrepreneurs in our country, thus, have contributed, contributing and will contribute
to a great extent to the industrial and overall economic development of the country.

2.3 MEANING OF ENTREPRENEUR:

An entrepreneur is one of the important segments of economic growth. Basically, an

entrepreneur is a person who is responsible for setting up a business or an
enterprise. In fact, he is one who has the initiative skill for innovation and who looks
for high achievements.
A good entrepreneur is one who is capable ofinspiring confidence in people, and has
the ability to motivate them to work with him in fulfilling the economic goals set by
him.
The term entrepreneur is defined in a variety of ways. According to Joseph A
Schumpeter, "The entrepreneur in an advanced economy is an individual who
introduces something new in the economy - a method of production not yet tested by
experience in the branch of manufacture concerned, a product with which
consumers are not yet familiar, a new source of rawmaterial or of new markets and
the like"
Moreover, J.B. Say, opined that "an entrepreneur is the economic agent who unites
all means of production, the labour force of the one and the capital or land of the
others and who finds in the value of the products - the re-establishment of the entire
capital he employs, and the value of the wages, the interest, and the rent which he
pays as well as the profits belonging to himself But, Peter Drucker defines, an

34
entrepreneur as 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 services"
Robert D. Hisrich says that the entrepreneur is, ’’the person who is going to establish
a successful new business venture must also be a visionary leader - a person who
dreams great dreams"^- Whereas E. E. Haggen considered, "an entrepreneur is an
economic man who tries to maximise his profits by innovations. Innovations involve
problem-solving and the entrepreneur gets satisfaction from using his capabilities in
attacking problems".
Thus, the term entrepreneur has been defined in various ways an innovator, a risk
taker, a resource assembler, an organisation builder, and so on. In broad sense, we
can say that entrepreneur is one who lives in the society, perceives a need and then
bring together the manpower, materials and capital required to satisfy that need. An
entrepreneur either establishes a new business venture or carries out productive
changes in an existing venture. He is one who organises, manages and assumes the
risks of business or enterprise. Entrepreneur may be an independent operator or
who works as a part of team or in a partnership. Entrepreneur is a person capable of
doing something new in a better way in industrial/business world. He may be a man
or woman, rural or urban young person. He has no relation with caste, creed and
provincial boundaries. A person capable of being an entrepreneur can become an
entrepreneur.

2.4 MEANING OF ENTREPRENEURSHIP :

The word 'entrepreneurship' has been derived from a French root which means "to
undertake". Entrepreneurship refers to a process of action an entrepreneur
undertakes to establish his/ her enterprise. It is a creative and innovative response to
the environment. Entrepreneurship is the propensity of mind to take calculated risks
with confidence to achieve a pre-determined business or industrial objectives.
Entrepreneurship is not a matter of heritage, it is entirely a manifestation of such
potentialities that any individual born in any caste, community and class can have.
Entrepreneurship involves a few major decisions. They can be identified as follows :
1. Firm decision to become an entrepreneur.

35
 2. Identification and selection of an opportunity.
3. Business plan formulation and its implementation.
4. Entrepreneurship continuum

Entrepreneurship is a multi-dimensional task defined differently by different

authorities.

A. H. Cole defines entrepreneurship as, "the purposeful activity (including an

integrated sequences of decision) of an individual or a group of associated
individuals undertaken to initiate, maintain or aggrandise a profit oriented business
unit for the production or distribution of economic goods and services" ^■ Similarly
Higgins says that entrepreneurship is meant, the function of seeking investment and
production opportunity, organising an enterprises to undertake a new production
process, raising capital, hiring labour, arranging the supply of raw material, finding
site, introducing new technique and commodities, discovering new sources of a raw-
material and selecting top managers for day to day operations of the enterprise.
Moreover, Peter Drucker and Joseph Schumpeter - authorities on entrepreneurship
have described the concept of the entrepreneurship in very wide manner.
Accordingly Peter Drucker says that "an entrepreneur is one who always searches
**7 for change, responds to it and exploits it as an opportunity"'. Entrepreneurs
innovate and innovation is a specific instrument of entrepreneurship. It creates
resources. Successful entrepreneurs create new values or increase the values of
what already exists. They convert a material into resources or combine existing
resources in new or more productive configuration. Thus, according to him,
entrepreneurship increases the value and satisfaction obtained from resources by
the consumer. Similarly, Joseph Schumpeter says that an entrepreneur is one who
innovates i.e. carries out new combination or enterprise. They foresee the potentially
profitable opportunity and try to exploit it. Entrepreneurs are especially motivated and
talented class of people and key figures in development. According to him
entrepreneurship is essentially a creative activity. It concerns in doing such things as
are generally not done in the ordinary course of business. Schumpeter's concept of
entrepreneurship is both wide and narrow. It is wide in the sense that it includes not
only the independent businessman but also company directors, and managers who

36
actually carry out innovative functions. It is narrow to the extent that individuals who
merely operate an established business without performing innovative functions are
excluded. Innovation involves problem solving and the entrepreneur is problem
solver. An entrepreneur gets satisfaction from using his capabilities in attacking
problems. Innovation may occur in the following forms :
1. Introduction of a new product with which consumers are not yet familiar or
introduction of a new quality of an existing product.
2. . Introduction of a new method of production, that is not yet tested by anyone
in the industrial world, and can also exist in a new way of handling a
commodity commercially.
3. Opening of a new market.
4. Carrying out of the new organisation of any industry, like the creation of a
monopoly position or breaking up of a monopoly position.
5. The conquest of a new source of supply of raw-materials or semi-
manufactured goods.

Thus, entrepreneurship refers to a set of attributes which the entrepreneurs possess,

and a set of activities which they perform in relation to the expansion of their units. It
is a creative and innovative activity.

37
38
Research Methodology

39
 Research Methodology

Purpose of the study

The research has been done to study the role of entrepreneurship in the growing
India. We will study how entrepreneurship affect economy of a country , how it plays
role in growth of a country and what measures government is taking to support and
provoke entrepreneurship.

Research Methodology:

The methodology is the general research strategy that outlines the way in which
research is to be undertaken and, among other things, identifies the methods to be
used in it. These methods, described in the methodology, define the means or
modes of data collection or, sometimes, how a specific result is to be calculated.

Primary data

As the name suggests, are first-hand information collected by the surveyor. The data
so collected are pure and original and collected for a specific purpose. They have
never undergone any statistical treatment before. The collected data may be
published as well. The Census is an example of primary data. Methods of primary
data collection: Personal investigation: The surveyor collects the data
himself/herself. The data so collected is reliable but is suited for small projects.
Collection Via Investigators: Trained investigators are employed to contact the
respondents to collect data. Questionnaires: Questionnaires may be used to ask
specific questions that suit the study and get responses from the respondents. These
questionnaires may be mailed as well. Telephonic Investigation: The collection of
data is done through asking questions over the telephone.to give quick and accurate
information.

40
Secondary data
Secondary data are the data collected by a party not related to the research study
but collected these data for some other purpose and at different time in the past. If
the researcher uses these data then these become secondary data for the current
users. These may be available in written, typed or in electronic forms. A variety of
secondary information sources is available to the researcher gathering data on an
industry, potential product applications and the market place. Secondary data is also
used to gain initial insight into the research problem. Secondary data is classified in
terms of its source – either internal or external. Internal, or in-house data, is
secondary information acquired within the organization where research is being
carried out. External secondary data is obtained from outside sources.
Secondary data can be collected from Official publications such as the Ministry of
Finance, Statistical Departments of the government, Federal Bureaus, Agricultural
Statistical boards, etc. Semi-official sources include State Bank, Boards of Economic
Enquiry, etc. Data published by Chambers of Commerce and trade associations and
boards. Articles in the newspaper, from journals and technical publications.

There are various advantages and disadvantages of using secondary data.

Methods of secondary data collection:

Advantages of Secondary Data:

• The primary advantage of secondary data is that it is cheaper and faster to

access.
• Secondly, it provides a way to access the work of the best scholars all over the
world.
• Thirdly, secondary data gives a frame of mind to the researcher that in which
direction he/she should go for the specific research.
• Fourthly secondary data save time, efforts and money and add to the value of
the research study.

41
Research Design :

Descriptive research design has been used in this study. Descriptive research is also
called Statistical Research. The main goal of this type of research is to describe the
data and characterizes about what is being studied. Descriptive research is used to
obtain information concerning the current status of the phenomena to describe “what
exists” with respect to variables or conditions in a situation.
It is a theory-based design method which is created by gathering, analyzing, and
presenting collected data. This allows a researcher to provide insights into the why
and how of research. Descriptive design helps others better understand the need for
the research. If the problem statement is not clear, you can conduct exploratory
research.

Sources of data collection

Here for this project we have used Secondary data . Data has been collected from
research gate , ministry of labour , google and articles published in newspaper i.e.
Times of India, The Hindu etc.

42
Analysis

43
 Analysis

Small scale industry:

The phenomenal growth of small-scale entrepreneur has been strictly features in

the economic development of the country since independence. It has
contributed to the overall growth of the GDP as well as in term of employment
generation and export in the ‘One world one market’ economy. In India, the small-
scale industrial (SSI) sector has acquired a prominent place in the socio-economic
development of the country during the past 50 years. The damaging factors as
experienced by the SSIs have been cited as low capital base, difficulties in
accessing technology, credit constraint, low access to business services, constraint
of quality of human resources, low market awareness, low lobbying capacity and
infrastructural constraints. The factors which have been affects on growth of
SSIs are advancement in generic technology of computers and telecommunications,
rise in electronic commerce, multilateral trading rules under agreements of World
Trading Organization, mergers and acquisitions, liberalisation of services and
infrastructure and out sourcing activities to outside firms.

The scope of the paper examines the Small Scale Business entrepreneurs’
contribution to Indian and world economy, opportunity and challenges to small-scale
entrepreneur in context of global competition. It identifies the growth trends of the
SSI sector in India under the impact of LPG (liberalization, Privatization and
Globalization)

Introduction to Globalization

The World has become a small village due to the concept of Globalization.
The competition has become intense in every field. Nations fight with game plan to
sustain their economy, by introducing new policies and announcing incentives to
support mainly their economic contributors. After the world economy was open to
attack, the Indian economy has initiate to concentrate on the development of

44
entrepreneurial base in the country, which had contribute positively to the India s’
GDP. India’s GDP growth is better than other developing countries India’s GDP
average growth during 1999 to 2003 was good and it competing hardly with China.
The SSI sector in India has been the most prominent sector which has resisted the
force of the WTO implication. Even though, there has been slight setback in
the SSI sector, after the liberalization policy, the Government has been reawaken
the sector and after a few years from the liberalized economy, the SSI sector has
gained momentum and is now ready to face any competition from any part of the
world.

The Small and Medium Enterprises play a vital role in the industrial development of
any country. The importance of the SSI sector is well recognized world over
from its significant contribution in gratifying various socio-economic objectives, such
as higher growth of employment, output, promotion of exports and fostering
entrepreneurship.

Globalization is the factor, which force the business to think for strategy for
survival, competition and growth. The limited resource, technological know-how,
differences in human skill, different demand and race of development creates
scope of globalization.

India is on threshold of a new global age. In India globalization changes

government policies it adds, the words liberalization, privatization and open
economy. Indian government feels the importance of foreign market and export
income. Which make the Indian economy progressive, market oriented and
competitive.Markets are becoming global not only for goods but also for
services. These developments have drastically altered the economic landscape.
Economic boundaries are being redrawn and a boundary less world is fast emerging.
To meet the challenges of global competition, large medium and small
companies are entering in to strategic alliances with corporate giants to exploit
jointly the global market by offering superior quality products and services.

45
Small-scale industries (SSI) sector, occupying a prominent place in the economy,
has registered a continuous growth in the number of units (4 percent)
production (11.5 percent) and employment generation (4.2 percent) during 2004-05.
Number of Units is estimated to increase to 11.853 million from 11.395 million
in previous year. The production is expected to be worth Rs. 39,90,200 million up
from Rs.35, 77,330 million and employment in the sector would be of the order of
28.282 million against 27.136 million in previous year. This presents new
international opportunities for small and medium-sized enterprises.

Cross-border business networking allows SSIs to expand their markets and

distribution channels, to realize economies of scale and scope in products and
processes, and to profit from the sale and licensing of technology-based assets.
Governments can help SSIs realize the benefits of global restructuring by
maintaining a flexible business environment and openness in foreign investment
and trade, fostering inter-firm networking, and upgrading SSI capabilities to
participate in international networks and foreign markets.

Small business entrepreneurship and SSI:

In India the small and medium enterprises are not well defined. The internal group
set up by the Reserve Bank of India has recently recommended that the units with
investment in plant and machinery in excess of SSI limit and up to Rs. 100 million
may be treated as medium enterprises. The definitions of ‘small’ and ‘medium’
sized enterprises differ from one country to another. SMEs have been defined
against various criteria such as the number of workers employed, volume of output
or sales, value of assets employed, and the use of energy. Organization for
Economic Cooperation and Development (OECD) defines establishments with up
to nineteen employees as ‘very small’, between twenty and ninety nine
employees as ‘small, from 100 to 499 employees as medium and over 500
employees as Large enterprises.

Achievement of SSIs in India has been possible due to the consistent and sustained
policy support from the Government including policy of reservation, investment

46
ceiling for the SSI sector and priority lending. The economic reforms started in 1991
in India provided the opportunity to SSIs to grow big. However, the formation of WTO
in 1995 has started posing a major challenge to the SSIs in India. There have been
some sweeping changes, which have taken place in the SSI sector in the last two
years. The hitherto protection of the SSI sector by way of reservations and
quantitative restrictions have been removed.

More than 160 items that were reserved for the SSI sector have been de-reserved.
The higher rate of growth of SSIs during 1991-2000 period, compared to the overall
industrial growth rate, does not offer much satisfaction in the immediate future,
unless concrete remedial measures are taken. Indian industry does not face any
immediate threat from developed countries but faces serious competition from
neighbouring countries particularly from Chinese manufacturers where productivity
is 60 percent to 100 percent, which is more than the Indian companies.

Realizing the credit requirements of SSI sector, the Government evolved a credit
policy under the priority sector lending. Several committees have been constituted to
increase the credit flow to the SSI sector. The Internal Group set up by the Reserve
Bank of India to review the guidelines of credit flow to the SME sector recommended
self set targets for the commercial banks, with an increasing disbursement over the
previous year. The Group also advocated for empowering the Boards of the
banks to frame their own policies with regard to SME financing, so that lending
policies would be more liberal than the existing policies.

The small scale industries constitutes on of the vibrant sector of the Indian economy
in term of employment generation, the strong small business entrepreneur base
helps to create and its share in industrial production and exports. The SSI sector in
India employs around twenty six million people and is involved with the
production of over 7500 industrial items with the product range varying from very
simple items produced with traditional technology to high tech products. At present,
the SSI sector accounts for over ninety percent of industrial units in the country,
forty percent of value addition in the manufacturing output and approximately thirty
five percent of India’s exports. It shows how the small business entrepreneur plays a

47
significant role in economic development of the country. With growth in the volume
of production employment and exports, there has been progressive
diversification in this sector. Beginning with FMCG products like toilet soap,
detergent and food products, small business entrepreneur has now entered into
many technologically sophisticated fields like microprocessors, computers,
electronics, consumer durables and software. Because of the endless incentives and
positive attitude of small-scale entrepreneurs, significant efforts have been make
towards a progressive diversification and upgrading of technology.

Export Performance of SSIs

In the annual report of government of India, ministry of small-scale industries which

includes the third census launched by the DC (SSI) in November 2002, first time in
the third census the unregistered SSI sector was surveyed using a two stage
stratified sampling design. Out of 9,94,357 villages and urban blocks, 19,579 villages
and urban blocks were surveyed to identify the units of unregistered SSI sector.
Around 7,344 registered units’ exports their products and Rs. 1,23,080 million
they contributes. The total export of SSI sector according to the last census the
value of exports from the small-scale industries (SSI) has been rising from year to
year. The value of SSI exports increased from Rs. 16,430 million in 1980-81 to Rs.3,
83,000 million in 1995-96. SSI sector in India has been exhibiting a striking export
performance. Barring few years, exports have grown double digit in the last 10 years.
Exports at current prices in 2002-03, is stood at Rs. 8,60,000 million. (Figure 2 about
here) This works out to about thirty four percent of total exports in India in the same
year. Major sectors contributing to SSI exports include readymade garments (27
percent), engineering goods(14.5 percent), chemicals & pharmaceuticals,
electronics & computers, and processed foods (11 percent each). In terms of
export orientation, sports goods have 100 percent exports from SSI sector, followed
by readymade garments (90 percent), leather (70 percent), marine products (47
percent) and chemicals & pharmaceuticals (44 percent). Over the last 10 years,
the share of SSI exports has increased in most of the

48
sectors. Since liberalization, more and more exporting units from SSI sector have
been increasing their capital investment to come out of the SSI net and emerge
as global players. Such a trend is happening especially in sectors like basic
chemicals, pharmaceuticals, engineering goods, leather and textile sectors. There
are no official data for compilation of export performance by the medium scale units.
However, analysis has been made using the CMIE’s India Corporate Database,
which represents more than two third of Indian manufacturing sector. Analysis has
been made to measure the export performance of medium scale units in select
sectors, using two definitions, viz., based on capital investment, as defined by RBI,
and based on sales turnover of units up to Rs. 750 million. It may be inferred that
these sectors, since they require plenty of capital investment to meet the global
challenges, need to be kept out of any limit on capital investment, to emerge as
global players.

Export opportunity to SSIs

India’s exports to the Latin America and Caribbean region amounted to US $ 2.08
bn in 2004-05, sharply increasing by 85 percent over US $ 1.13 bn in the previous
year. Total bilateral trade increased by over 70 percent and reached almost US $ 4
bn in 2004-05, clearly the best performance in recent years. The upgrade in
exports can be attributed to the rise in exports like 138 percent rise in case of Brazil,
241 percent rise in case of Colombia, 105 percent rise in case of Argentina and 223
percent rise in case of Venezuela. Brazil continued to be the top export destination
for India. Petroleum products have emerged as the top exports item to the other
countries, other items like manmade yarns fabrics, plastics and linoleum
products, organic/inorganic/agrochemical and machinery and instruments.
India is becoming a world manufacturing base and an export hub for
merchandise, agriculture products and automobile components. India’s US$ 5
bn auto industry is expanding by 15 percent a year, world’s fastest growing
automotive industries. India now become an off shore production center for
electronics components, software products, and software enabled services.

49
The Indian pharmaceutical industry is characterized by strong skill in chemistry and
low manufacturing costs. Pharma exports accounts for around 45 percent of
production in India. With regards to trading, given a matching in demand and India’s
supply capability initiative should be undertaken to further enhance the exports of
medicaments from India to other countries. Opportunity also exists for the
Indian contract research firms in conducting several bio-equivalence tests. The
Indian system of medicines, better identified as Aryuveda, also has considerable
prospect in countries of Latin America. The global imports of medicinal plants and
parts in the year 2001 were of the order of US $ 1 billion. India is the second
largest exporter, next to China, accounting for about 13 percent of global
imports. USA is the principal market for Indian medicinal plants, accounting for
about 50 percent of exports. The value of traded medicinal plants in the domestic
market was about Rs 3840 million in the year 2001. This estimated sale value
could be correlated to a quantitative consumption level of 128,000 tonnes, which is
being grown in an estimated area of 111,000 ha. The value of domestic trade, along
with the export level of Rs. 4630 million makes the commercialization of Indian
medicinal plants sector at Rs. 8470 million in the year 2001-02. Global exports of
services have witnessed a sharp rise in recent years, registering a growth of
19.1 percent in 2004, as compared to a growth of 12.9 percent during the previous
years. In India share of the service sector in the country’s GDP has risen from
48.3 percent in 1999-00 to 52.4 percent in 2004-05. India’s share was a 1.5 percent
of the total world trade in services, which accounted to US$ 2.10 trn in 2004. Its
good shines for the service exportsIndia has undertaken extensive commitments in a
number of new sectors such as architecture, integrated engineering and urban
planning and landscape, veterinary, environmental, distribution, construction and
related engineering, tourism, education, life insurance, services auxiliary to
insurance, recreational, cultural, and sporting services and air-transport services.

The rise in services exports from India in recent years can be attributed to a
number of factors like comparative advantage in labor-intensive services,
technological and computer industries, well educated and cost-competitive
workforce. A study has been done by M/s A.C. Nielsen on behalf of Ministry of
SSI, and according to this study major export markets for SSIs exports are US, EU
and Japan.
50
 Women Entrepreneur:

Women entrepreneur may be defined as a woman or group of women who initiate,

organize, and run a business enterprise. In terms of Schumpeterian concept of
innovative entrepreneurs, women who innovate, imitate or adopt a business activity
are called “women entrepreneurs”.

Kamal Singh who is a woman entrepreneur from Rajasthan, has defined woman
entrepreneur as “a confident, innovative and creative woman capable of achieving
self-economic independence individually or in collaboration, generates employment
opportunities for others through initiating, establishing and running the enterprise by
keeping pace with her personal, family and social life.”

The Government of India has defined women entrepreneurs based on women

participation in equity and employment of a business enterprise. Accordingly, the
Government of India (GOI2006) has defined women entrepreneur as “an enterprise
owned and controlled by a women having a minimum financial interest of 51 per cent
of the capital and giving at least 51 per cent of the employment generated in the
enterprise to women.” However, this definition is subject to criticism mainly on the
condition of employing more than 50 per cent women workers in the enterprises
owned and run by the women.

For India to grow at 9-10 per cent for three decades consistently and reap the
dividend of demographic advantage, promoting entrepreneurship among women has
to be the key strategy, Niti Aayog CEO Amitabh Kant said today.

Women contribute about 22 per cent of our GDP, the worldwide average is close to
44-45 per cent he said at an event here. “And, therefore, if India has to grow
consistently at 9-10 per cent for three decades and reap dividend of demographic
advantage, the focus on women entrepreneurship has to be key aspect of growth
strategy

51
 Large Scale Industrues and Entrepreneurs.

India is mostly run by these two peoples. TATAS and AMBANIS. They play imp role
and contribute huge growth in the economy.

Dhirubhai Ambani: Reliance

Reliance Industries Limited (RIL) is an Indian multinational conglomerate

company headquartered in Mumbai, Maharashtra. Reliance owns businesses across
India engaged in energy, petrochemicals, textiles, natural resources, retail, and
telecommunications. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalization, and the largest
company in India as measured by revenue after recently surpassing the government-
controlled Indian Oil Corporation.[6] On 18 October 2007, Reliance Industries became
the first Indian company to exceed $100 billion market capitalization.

52
The company is ranked 106th on the Fortune Global 500 list of the world's biggest
corporations as of 2019.[9] It is ranked 8th among the Top 250 Global Energy
Companies by Platts as of 2016. Reliance continues to be India's largest exporter,
accounting for 8% of India's total merchandise exports with a value of Rs 147,755
crore and access to markets in 108 countries. Reliance is responsible for almost 5%
of the government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India. In 2019, Reliance
Industries become the first Indian firm to cross Rs 9 lakh crore market valuation
mark. It has become the first ever Indian company to cross Rs 10 lakh crore market
capitalization.

The Reliance Story:

53
54
Contribution to economy:

55
JRD TATA:

Jehangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993) was an
Indian aviator, entrepreneur, chairman of Tata Group and the shareholder of Tata
Sons.
Born into the Tata family of India, he was the son of noted businessman Ratanji
Dadabhoy Tata and his wife Suzanne Brière. His mother was the first woman in India
to drive a car and, in 1929, he became the first licensed pilot in India. He is also best
known for being the founder of several industries under the Tata Group,
including Tata Consultancy Services, Tata Motors, Titan Industries, Tata
Salt, Voltas and Air India. In 1983, he was awarded the French Legion of
Honour and in 1955 and 1992, he received two of India's highest civilian awards
the Padma Vibhushan and the Bharat Ratna. These honours were bestowed on him
for his contributions to Indian industry.

TATA GROUP:

Since its inception in 1868, the Tata group has formed the backbone of India’s
growth story with sweeping yet invisible contributions. For the last 150 years, Tata
companies have been an invisible force driving progress for the nation, as well as
the aspirations of India’s billion-plus people. Here's how we've been making an
impact.
With 500,000 orders being executed per second, the Bombay Stock Exchange
(BSE) is the fastest stock exchange in the world. With more than 1,700 listed

56
companies whose market capitalisation exceeds $2 trillion, the National Stock
Exchange (NSE) is not only India’s largest stock exchange by transaction volume but
also among the top three bourses in the world. The only commonality they share is
that their systems and software are invisibly driven by Tata Consultancy Services
(TCS), the world’s second most valuable information technology company.
And it’s not exchanges alone. The core banking system that services 750 million
retail customer accounts of the State Bank of India (SBI); 23,840+ rural and urban
cooperative bank branches connected through cloud-based technology platforms;
Real-Time Gross Settlement (RTGS) platform of Reserve Bank of India (RBI);
Securities and Exchange Board of India’s (SEBI) surveillance systems and real-time
Income Tax collection and analytics, are among some of the key pieces of India’s
financial backbone that is driven by Tata.
Behind the TCS-run software and systems are high-speed data pipes that move data
across the country and the world in the blink of an eye. They are run by Tata
Communications whose network can transfer data from Silicon Valley to Singapore
in a mere 180 milliseconds. It also connects customers to 99.7 percent of the world’s
GDP.Or consider the electricity required to power the aspirations of modern India.
120 GW of the country’s aggregate installed energy capacity is engineered or
generated by us. 500 million people have benefited from the power generated at
these plants, including the Tata Power plant in Trombay, which generates the
electricity powering the BSE.
And in building and fuelling those power plants our steel plays a vital part. From the
equipment needed for mining coal for thermal power to reinforcing the dams that
produce hydro-electricity — like the iconic Bhakra and Nangal dams — and building
the panels that produce solar power, our steel is in everything.
“In fact, not many people know that a little more than a third of infrastructure projects
in India today use our steel,” says a proud Peeyush Gupta, vice president, marketing
and sales, Tata Steel.
Sinews of steel

“Jamsetji Tata’s vision in many ways determined India’s future,” says Gupta. “The
consumption of steel, a key ingredient in agriculture, industry and infrastructure, is
linked closely to the economic development of a country.”

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By the 1930s, we were providing 72 percent of India’s requirement of steel, covering
the gamut from defence applications, to the railways and iconic projects like the
Howrah Bridge. 23,000 tonnes, or about 85 percent of the steel used to build the
bridge that defines the Kolkata skyline to this day, came from Jamshedpur.
This role intensified after 1947. A newly independent India needed an agricultural
and industrial revolution, neither of which could happen without machinery and
power, or our steel.
Steel was essential to manufacturing agricultural tools. It was essential to rapidly
scaling down the import of capital goods — needed to industrialise India — from a
brutal 90 percent in 1950 to about half of that in the 1960s. It was essential to
building factories, dams and power plants. “Much of it came from us, the largest steel
maker in the country then,” Gupta says. “We have come a long way, but our pivotal
role in nation building hasn’t changed.”
Take for instance the fact that we move India forward. Quite literally.
 Our steel and key components are in every model of Boeing and Airbus civil
airliner in production today.
 It is in two-thirds of the country’s metro rails, flyovers and bridges, including
landmark ones like Kolkata’s second Hooghly bridge and Mumbai’s Bandra-
Worli Sea Link.
 Every third tyre made in the country uses our steel. Almost every passenger
car made in India has our steel. Three out of four commercial vehicles (CV) in
India run on chassis made of our steel.
 Two-thirds of metro rail in the country are made with our steel. Key metro
networks like Delhi, Mumbai, Lucknow, Ahmedabad, Chennai and Kochi have
also been built with our expertise.

Economic backbone

Just as invisible, but important, is the Tata group’s impact on India’s economic
backbone.It begins with your wallet: The ₹2,000 note is printed at a factory designed
by us (fun fact: nearly all the 1, 2, 5 and 10 penny coins in circulation in the United
Kingdom also have the Tata touch; they are made of our steel).

58
And ranges up to the country’s coffers, which we support by providing the system for
e-filing of key taxes. In addition, Tata companies together create wealth for the
nation by contributing ₹47,196 crore (2.24 percent of the total collection in 2017) in
taxes to the government of India’s finances (₹21,08,118 crore).

“We have been instrumental in running the economic backbone of the country,
covering the stock exchange, the regulators, the depositaries, manufacturing, retail,
utilities — that is what our expanse is,” says Ujjwal Mathur, vice president and head
of India business, TCS. “Our internal assessment is that we touch the lives of one in
every two citizens of the country.”

Powering India

“As the country has grown, we have made sure that electricity, the invisible force that
powers the nation, has always been available to fuel development,” says Praveer
Sinha, CEO and MD, Tata Power, India’s largest integrated power company.

The Tata group has built 13,000 km+ of transmission lines, the backbone of India’s
high-capacity power transmission. “We have been responsible for linking the
southern grid with the central and the eastern grid with the northern,” says Vinayak
Deshpande, MD, Tata Projects. “Most key cities in Andhra Pradesh, Telangana,
Tamil Nadu and Karnataka get their electricity on this backbone. Eastern India and
Central India depend on our 800Kv HVDC lines. Leh, Kargil and other upper reaches
of Jammu and Kashmir are connected by our transmission infrastructure.”

We play a particularly powerful role in powering India’s financial capital. Or unique

islanding system, which gives an assured and uninterrupted supply of electricity, has
powered Mumbai’s growth for most of the past century. It helped bring electrification
to Mumbai’s lifeline, the railways, and supports key installations like the Bhabha
Atomic Research Centre.

59
Our power generation and distribution arms also serve regions of Gujarat,
Rajasthan, Maharashtra, Delhi, Haryana, Punjab, West Bengal, Uttar Pradesh,
Odisha, Madhya Pradesh, Jharkhand and Bihar.
“Electricity is essential to build a fast-growing economy,” says Sinha. “As India looks
towards rapid digitisation, industrialisation and a growing population, we look to
shape the future.”

Tata Power is leading in clean energy; it recently installed the largest rooftop project
at the Cricket Club of India in Mumbai
A cleaner future

With this in mind, the Tata group has already taken the lead in clean and sustainable
ways of generation and consumption of power (one of our latest achievements is
installing the world’s largest solar rooftop project on a cricket stadium, in Mumbai).
We are not only India’s largest integrated solar player, we have also designed 80
percent of the nuclear power projects.

“40 percent of our current generation portfolio is from clean energy sources,” Sinha
notes. Clean energy will be a key feature of the smart cities of the future, the drive
for which is also being led by the Tata group. “Our work on India’s first smart city, the
Gujarat International Financial Tech, is still considered a benchmark in terms of
futuristic cities,” says Amit Sharma, MD, Tata Consulting Engineers (TCE). “Now, 12
more cities will have access to smart living through the smart city plan engineered by
us.” These include Guwahati in Assam; Raipur in Chhattisgarh; Bhopal and Satna in
Madhya Pradesh; Ahmedabad, Surat, Vadodara, Gandhinagar and Dahod in
Gujarat; Shivamoga in Karnataka; Agartala in Tripura; and Rourkela in Odisha.

60
We are also engineering the brownfield upgrade of at least 49 cities, and have the
ability to transform the entire ecosystem. “When you talk of smart cities, the more
you look at the larger ecosystem, the better it is. The more you chop it up into
smaller pieces, the more problematic it gets,” says Banmali Agrawala, president,
Infrastructure, Defence and Aerospace, Tata Sons. “Our view of smart cities is that
there are five basic elements that can improve life, and we can provide all five of
them in totality and transform a city.” The first is governance, where we have a large
offering of e-governance covering the gamut from managing land records to
managing police stations. The second is mobility, where we have the ability to build
metro networks and manage the whole ecosystem of electric vehicles.

“The Tata ecosystem gives us a unique advantage,” says PB Balaji, chief financial
officer, Tata Motors. “We have the products, charging stations, technology, and the
business model that can disrupt the way people drive, own and share cars. In fact,
not just cars, buses, light commercial vehicles and small commercial vehicles will
also move onto the electric architecture.” The third is electricity. “This is basically
how do you make the supply of electricity smarter, reliable and affordable,” Agrawala
elaborates. “It starts from purchasing power and distributing power, making sure that
customers get reliable power, to helping the customer manage power requirements
efficiently and billing them. We manage that complete ecosystem extremely well.” The
fourth and fifth elements are water and waste management and smart and affordable housing,
he adds, noting, “There are only a few people like us who can provide this kind of a
wholesome solution.” For example, More than 70 percent of what’s underground in Mumbai
— water transmission to waste management — has been designed by the group.
Did you know

 We are the connectivity provider for Formula 1 across 19 races and 5

continents. We have also helped build the F1 Yas Marina Grand Prix Circuit in
Abu Dhabi.
 Most of the complex and powerful radio, optical and cylindrical telescopes in
India, including Asia’s largest optical telescope and the world’s largest giant
metre wave radio telescope, have been designed by us.

61
 It is our technology that facilitates the exams for Indian Railways, better
known as the world’s biggest recruitment drive. In fact, some of India’s biggest
entrance exams, including the IIMs and IITs, are conducted on our platform.
 We facilitate your travels around the world. The Tata-run Passport Seva
Kendras have reduced the average issuance time from 60 to six days and
served more than 150 million+ citizens in India and abroad.
 95 percent of the biggest rail company in England, the National Rail Network,
runs on tracks made of our steel.
 There is a lot of our steel in the world’s tallest building, the Burj Khalifa, which
stands in the middle of a desert, and stays cool because of us.
 Our steel contributed to the making of Mumbai’s Chhatrapati Shivaji Maharaj
International Airport, ranked the World’s Best Airport at the Airport Service
Quality Awards in 2017. We designed the passenger and staff experiences
that made it happen, and the airport also runs on electricity that we supply.
 Our Internet of Things network in India will be the world’s largest network of its
kind, touching over 400 million people to create an end-to-end connected
ecosystem. By the time you finish reading this sentence, data would have
travelled around the world on our network 16 times.
 One-third of ride-share fleets in India use Tata cars. India even goes to school
on a Tata bus; we build one out of every three school buses in the country.
 We are making India cleaner! We have revived the Dravyavati river in
Rajasthan; what had become a narrow, sewage-carrying drain has been
transformed across a 47-km stretch. We’re also managing the Clean Ganga
project, which impacts the lives of 21.5 million people across 58 towns.
 We quench your thirst: 20 percent of water that India drinks comes through a
facility designed by us. There is a whole lot of Tata in your wine glass too; 80
percent of India’s grapes grow on wires we supply.

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 Make In India:

Under such adverse economic conditions prevailing in the country, the

announcement of ‘Make in India’ Campaign by the government in September2014 is
going to be boon for the entrepreneurship development in India and
it will be a major boost to the Indian economy. The main objective of thecampaign is
to boost the domestic manufacturing industry and attract foreign investors to invest
into the Indian economy. No doubt, it will revive the manufacturing sector and will
help key sectors in India wherein the growing concerns is that most of the
entrepreneurs are moving out of the country due to India’s low rank in ease of doing
business ratings.

Vision for the Make In India Campaign

Currently the manufacturing sector contributes Rs. 433769 Crores which isabout 15
percent to the National GDP (National GDP = Rs. 2852339 Crores =US $ 2066.90
Billion - for Year 2015). The projected share of manufacturing sector in GDP is 25
percent after Make in India Campaign is successful. Most of the countries in Asia
have about 25 percent contribution to GDP from manufacturing sector. It will shift the
focus of the country from agricultural to manufacturing. India is known as agro based
economy and agriculture has been our core strength. Agriculture sector is
contributing Rs. 513190 Crores which is eighteen percent of GDP of the country
(Trading Economics 2016).However, now the current government wants this focus to
be shifted to manufacturing in line with world’s strong economies. After first few Five
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Year plan period in 1970s India had to shift its focus from manufacturing
to Agriculture since economy was showing signs of slow down due to focus onmanuf
acturing sector. The growth in manufacturing sector will also result ingenerating
more jobs in India. The increase in foreign direct investment will transform India into
a manufacturing hub preferred around the globe. This campaign also includes Delhi -
Mumbai Industrial Corridor (DMIC)project presently being implemented in India with
the help of Japanese Government. The DMIC project was conceived in 2010 when
UPA was in power. Delhi - Mumbai Industrial Corridor (DMIC) is India's most
ambitious Infrastructure programme aiming to develop new industrial cities as
SmartCities and converging next generation technologies across infrastructure
sectors. The objective is to expand India's manufacturing and services base and
develop DMIC as a ‘ Global Manufacturing and Trading Hub’
. The programme will provide a major impetus to planned urbanisation in India
with manufacturing as the key driver. In addition to new Industrial Cities, the
programme envisages development of infrastructure linkages like power plants,
assured water supply, high capacity transportation and logistics facilities as well as
softer interventions like skill development programme for employment of the local
populace. In the first phase seven new industrial cities are being developed. The
programme has been conceptualised in partnership and collaboration with
Government of Japan.

Sectors in Focus
The ‘Make in India’ campaign has focus on twenty-five priority sectors,
which will be given preference by the Government for inviting FDI. The PrimeMinister
, Mr. Modi has already taken special efforts to promote and invite the investment
from NRIs and Foreign Investor during his various foreign trips. These 25 priority
sectors are listed below:-

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Schemes and Initiatives for Indian First Generation Entrepreneurs
To accomplish the objective set under ‘Make in India’ Campaign, Government
of India has launched many new schemes, which are complementing the
‘Make in India’ campaign. These schemes are mainly to encourage the youth
to become entrepreneur by setting up new manufacturing facilities. These schemes
are discussed below.
MUDRA Bank
Micro Units Development and Refinance Agency Bank (MUDRA Bank), is anew
institution setup by the Government of India for development of micro units and
refinance of Micro Finance Institutions (MFIs) to encourage entrepreneurship by
providing the funding to the non-corporate small business sector
(Mudra 2016). MUDRA was announced in Union Budget for FY 2015-16. Mudra
Bank mainly focused on extending the loans to micro units ranging from Rs. 50000/-
to Rs. 10 Lakhs. MUDRA Bank will also support Micro Finance Institutions (MFI) for
onward landing. MUDRA Bank will refinance the micro businesses under the
scheme of Pradhan Mantri MUDRA Yojana. The focus of the Bank on is to

65
extend finance to Scheduled Caste and Scheduled Tribe, Women and Young
Entrepreneurs who do not have access to funding from normal banking channels for
want of collateral security (Mudra(2016)

Start-Up India
The ‘Start Up India’s mission is to help start-ups by financing technology business
incubators and research parks (India Today 2016). The Human Resource
Development Ministry and the Department of Science and Technology would be
partner in setting - up over such start-up support hubs in the National Institutes of
Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian
Institutes of Science Educationand Research (IISERs) and National Institutes of
Pharmaceutical Education and Research (NIPERs). The main objective of the
scheme is to boost entrepreneurship at grassroots level. There will be income tax
exemption to start-ups for the first three years. The process of patent registration will
be simplified and it will be quicker. The scheme aims to push for Entrepreneurship in
the country by providing enabling environment for the entrepreneurs. The ‘Start up
India’ mission, no doubt, will encourage entrepreneurship and help the country for
new employment opportunities for the unemployed. The Scheme will also promote
entrepreneurship amongst SC/ST and Women. As per the estimation by the
Government, at least 2.50 Lakhs Start-up units will be benefited in next three years.
The scheme will also aims at reducing the interference by the state and any other
government body so that the Start-up units will have ease of doing business. The
salient features of the Start-Up action plan are as follows:-

 Fund worth Rs 10000 Crores will be created for development and growth of
innovative enterprises,

 Credit Guarantee Fund Rs. 500 Crores per year over next 4 years,

 Profits of Start-up units will be tax-free for 3 years,

66
  No labour Inspection for 3 years instead self-certification based regime to be
followed,
 Quicker and subsidised (i.e. 80%) patent clearance mechanism to be
evolved,
 New mobile App to be registered, Start-ups & apply for Online Clearances will
be operational from April 1, 2016,
 Provision of easier exits (within 90 days) for failed ventures under the
Bankruptcy and Insolvency Bill, 2015 introduced in December 2015 in
Parliament,
 500 sector specific incubators, including 5 New Bio Clusters will be
established across the country,
 Under this, 35 new incubators, 7 new research parks, 31 innovation centres
will be set up at the National Institutes under the public private partnership
mode,
 An innovation programme will be launched in 5 Lakhs schools acrossthe
country to nurture innovation among children.
 To protect intellectual Property Rights, a new scheme will be developed.

Stand Up India Scheme

The main objective of ‘Stand Up India’ Scheme is to boost and promote
Entrepreneurship among Scheduled Castes (SCs) / Scheduled Tribes (STs)
and Women. The Scheme is expected to help at least two such projects per bank br
anch, on an average for SCs and STs or Women category of entrepreneur. Itis
projected that this Scheme will help at least 2.50 Lakhs entrepreneurs innext 36
months (Press Information Bureau 2016 & PM India 2016).

67
Finding and Inferences

68
 Finding and Inferences

Starting with small scale industries, we find that India has seen a whooping increase in the
number of industry setups over the past few years due to many factors with globalisation and
liberalisation being the most prominent of them. Today, with the help and support from the
Government and a never give up attitude by the entrepreneurs, India has become an epicentre
of start-ups which offer solutions to numerous real life problems. A good globalisation means
that the Indian MSMEs are now competing with the world. A steep rise in the number of small
scale industries as discussed in the previous sections also mean that a large number of jobs
have also been created in the economy by these industries.

A huge contribution to entrepreneurship has also been given by the women of our society. They
have proved that they can also build and run some of the most marvellous companies and be a
leader the world demands. In this golden age of globalization, digitalization and start-up booms,
India is clearly seeing a revolution vis-à-vis women entrepreneurs. The sixth economic census
released by Ministry of Statistics and Programme Implementation (MoSPI) highlights that
women constitute around 14% of the total entrepreneurship in India. Today’s women
entrepreneurs do not come only from the established business families or from the higher-
income sections of the population, they come from all walks of life and from all parts of the
country. From running sports media firms to construction companies and security and detective
agencies – women are dabbling into fields that have traditionally been bastions of male
domination.

Lastly, talking about the large scale industries and their contribution to the development of India
it is seen that they too have readily supported and encouraged the growth of start-ups by
providing them with funding and guidance. In doing so they have made some amazing
investments in companies that have got a great repute and have boasted the economy of this
great country.

However, we must also know the fact that they are also great entrepreneur’s themselves. Take
the example of the Reliance group. It is a pioneer Indian company that works in so many
distinctive fields starting from telecom sector to education. They had their humble beginning
with a small yarn industry. So the moral of the story is even the large business tycoons today

69
were once ordinary people with extraordinary ideas which they flourished as the time passed.
Today Reliance provides so many opportunities to everyone in terms of jobs and a better life.

To sum it up, we can say that entrepreneurship offers a far greater risk than any normal job.
However, it also assures you of greater returns and a chance to be able to contribute
immensely to the economy of this great country. It offers you to grow exponentially, provide
more sources of employment and act as a torch bearer to the many more generations of risk
takers.

70
Limitations

71
 Limitations

While the role of entrepreneurship in growing India is of extreme importance to us,

this also has some very important limitations to it too. While being a pumping house
of ideas and wealth to the economy, these are a few limitations which might slow
down the industry.

 Government’s support _ While the government is offering so many

subsidies and packages to build start-up culture in India, they indirectly are
also letting Chinese firms into the Indian market. This becomes a major
setback since they are technologically more superior to us and it becomes
difficult to compete.

 Financial Security_ Being an entrepreneur in way more than a 9 to 5 job with

a fixed salary and not every idea is great idea initially, it takes time to develop
it. Financial security is an important limitation in entrepreneurship as it offers
none. It’s difficult, it’s exhaustive and it might or might not give great results.

72
Recommendations and Conclusion

73
 Recommendations and Conclusion

Through this extensive research project here are the following conclusions that I have made
by studying various cases and websites (all sources mentioned separately). Entrepreneurship
in no doubt a major boon for growing India and its economy. It offers several benefits that
proves to be a major enhancer for everyone involved in the business.

 Problem Solving_ Start-ups are all about new ideas. A person involved in a start-up
or entrepreneurship is more likely to think out of the box or learn new skills to adapt
to the increasingly growing demands of people.
 Resource Sharing_ Most start-ups have a humble beginning where they start with
limited resources and this enables to bring the best out of it. This saves a lot of
resources and are rightly invested.
 Revenue Generation_ A successful start-up is like the hen that gives golden eggs. If
you don’t kill it yourself it promises to give you timely rewards. This helps to back
the economy of so many people and well as the country.
 Job Security_ We live in times where we can find jobless individuals on every street.
Since, it offers a large number of options to people to choose from, it also means that
it creates thousands of job opportunities too.

74
Bibliography

75
 Bibliography

Websites:

 https://www.researchgate.net/publication/315045169_Contribution_of_Indian_Small_
Scale_entrepreneurs_to_economic_growth_in_India_Opportunities_and_Challenges
_in_Global_economy
 https://www.ril.com/OurCompany/About.aspx

 https://www.tata.com/newsroom/invisible-tata

 https://www.academia.edu/28587667/MAKE_IN_INDIA_BOON_TO_ENTREP
RENEURSHIP_IN_INDIA

Sources:

Source : Ministry of labour, (D G E & T), Quarterly employment Review India 1998
Observer Statistical H andbook - Page No. 277:Economic Division, Department of
Economic Affairs, Ministry of Finance

Source: The Economic times- Economic Survey 2000-01, 24th Feb., 2001, Pg. VII

References:

1. Desai Vasant, Dynamics of Entrepreneurial Development and Management,

1997 pp. 16-17. 2. Ibid, p. 16
2. Backhaus, J. G. (2006). Joseph Alois Schumpeter: entrepreneurship, style
and vision (Vol. 1). Springer Science & Business Media.
3. Drucker, Peter. (2014). Innovation and entrepreneurship. Routledge.
4. Hisrich, R. D. (1990). Entrepreneurship/intrapreneurship. American
psychologist, 45(2), 209.
5. Haggen, E. E. (1968). The Economics of Development. cited in Vasanth,
Desai: Entrepreneur ship Development, 1, 219.
6. Cole, A. H. (1999). Business enterprise and its social setting. iUniverse.

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