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Entrepreneurship notes Unit I What Is Entrepreneurship?

III semester MBA

Entrepreneurship can be defined by describing what entrepreneurs do. For example: "Entrepreneurs use personal initiative, and engage in calculated risktaking, to create new business ventures by raising resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a clearly defined market." But as the following definitions state, entrepreneurship is not restricted to business and profit: "Entrepreneurship involves bringing about change to achieve some benefit. This benefit may be financial but it also involves the satisfaction of knowing you have changed something for the better. "Entrepreneurship is essentially the act of creation requiring the ability to recognize an opportunity, shape a goal, and take advantage of a situation. Entrepreneurs plan, persuade, raise resources, and give birth to new ventures." Who Are Entrepreneurs? The word Entrepreneur has been taken from the French word. It means Between Takers. Entrepreneur is another name of Risk Taker. An entrepreneur is an individual who takes moderate risks and brings innovation. Entrepreneur is a person who organises/ manages the risks in his/her enterprise. Entrepreneur is a individual who takes risks and starts something new Definition According to J.B.say, Entrepreneur is an Economic agent to unites all the means of production An entrepreneur is an individual who takes moderate risks and brings innovation.

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. An entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as intermediately between capital and labour." Characteristics of Successful Entrepreneurs Entrepreneurs are different from each other, but successful entrepreneurs tend to share certain characteristics. Not all of them have developed each of the following to the same degree, but they tend to have developed most of them to some degree. Here are some common characteristics of successful entrepreneurs.

Entrepreneurs tend to: be passionate about achieving their goals have a spirit of adventure (in fact, the word "adventure" is derived from the Latin word meaning "to venture") have a strong need to achieve and seek personal accomplishment be self-confident and self-reliant be goal-oriented be innovative, creative, and versatile be persistent be hardworking and energetic have a positive attitude be willing to take initiative have a strong sense of commitment An eye for opportunity: Many entrepreneurs start by finding a need and quickly satisfying it.

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

Independence: Even though most entrepreneurs know how to work within the framework for the sake of profits, they enjoy being their own boss. An appetite for hard work: Most entrepreneurs start out working long, hard hours with little pay. Self-confidence: Entrepreneurs must demonstrate extreme self-confidence in order to cope with all the risks of operating their own business. Discipline: Successful entrepreneurs resist the temptation to do what is unimportant or the easiest but have the ability to think through to what is the most essential. Judgment: Successful entrepreneurs have the ability to think quickly and make a wise decision. Ability to accept change: Change occurs frequently when you own your own business, the entrepreneur thrives on changes and their businesses grow. Make stress work for them: On the roller coaster to business success the entrepreneur often copes by focusing on the end result and not the process of getting there. Need to achieve: Although they keep an "eye" on profits, this is often secondary to the drive toward personal success. Focus on profits: Successful entrepreneurs always have the profit margin in sight and know that their business success is measured by profits. Is this your profile or would you rather do your job, pick up your paycheck and leave the headaches to someone else? Most of us, quite easily, choose the later. Entrepreneurship as a Career. Positive aspects of entrepreneurship Being the boss if his own business, he enjoys unlimited powers. He can do things in his own way and he need not take orders from someone else. He can make his own decisions and act on them. There are numerous opportunities for his self- development.

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

Working on ones own and thus getting rewards yields immense satisfaction and pleasure for more than what he can get in a job. Monetary rewards can be more than commensurate with his capacity and capabilities. He can command deference and respect of his immediate family and friends. It is a kind of intangible reward. Instead of depending on others, he generates employment for others. He can make significant contribution to the development of the country and be proud of taking part in nation building activities. He can be a great achiever realising his goals and proving his achievements to the world. He can be recognised for his outstanding efforts. Negative aspects Though an entrepreneur is his own boss, in some respects he is not. It is so because he is constrained by various people like his financiers, labourers, suppliers, customers and so on. He may have to face frustration since the scope of his operations is limited by his limited resources. He has to work long and hard hours from morning to dusk and his venture tends to absorb all his energy and time. This may affect his social and family life. At times he may have to face disappointments and frustrations since everything in his venture may not always work the way he would like it to. He has to always work with tension since there is always the risk of failure. 7 key Qualities of Entrepreneur Being an entrepreneur is about more than just starting a business or two, it is about having attitude and the drive to succeed in business. All successful Entrepreneurs have a similar way of thinking and posses several key personal qualities that make them so successful in business. Successful entrepreneurs

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

like the ambitious Richard Branson have an inner drive to succeed and grow their business, rather than having a Harvard Business degree or technical knowledge in a particular field. All successful entrepreneurs have the following qualities: Inner Drive to Succeed Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.

Strong Belief in themselves Successful entrepreneurs have a healthy opinion of themselves and often have a strong and assertive personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time thinking about unconstructive criticism. Search for New Ideas and Innovation All entrepreneurs have a passionate desire to do things better and to improve their products or service. They are constantly looking for ways to improve. They're creative, innovative and resourceful. Openness to Change If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

technology or service techniques and are always ready to change if they see a new opportunity arise. Competitive by Nature Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self imposed high standards is to compete with other successful businesses. Highly Motivated and Energetic Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have an abundance of self motivation. The high standards and ambition of many entrepreneurs demand that they have to be motivated! Accepting of Constructive Criticism and Rejection Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan, otherwise they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that rejection and obstacles are a part of any leading business and they deal with them appropriately. Factors affecting Entrepreneurship growth: 1. Economic factors 2. Social factors 3. Cultural factors 4. Personality factors Economic Factors: Lack of adequate basic facilities

St. Hopkins College of management, Bangalore

Entrepreneurship notes Non- availability of capital

III semester MBA

Non- availability of raw materials and finished goods. Greater risk involved in business Non- availability of skilled labour Social factors Customs and traditions Rationality of the society Social system Social set-up Personality Factors Suspect personality Emergence of planning Role of entrepreneur in economic development 1)Employment Generation Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment. 2) National Income National Income consists of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand

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Entrepreneurship notes

III semester MBA

increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurs are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income. 3) Balanced Regional Development The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development . When the new entrepreneurs grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions. 4) Dispersal of economic power Industrial development normally may lead to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population by weakening the harmful effects of monopoly. 5) Better standards of living Entrepreneurs play a vital role in achieving a higher rate of economic growth. Entrepreneurs are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of the commodities decreases the consumers get the power to buy more goods

St. Hopkins College of management, Bangalore

Entrepreneurship notes

III semester MBA

for their satisfaction. In this way they can increase the standard of living of the people. 6) Creating innovation An entrepreneur is a person who always looks for changes. apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always try to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation. 7) Capital formation Entrepreneurship promotes capital formation by mobilizing the idle saving of the public and put it under continues transaction so as to improve the value of the capital by utilizing in a profitable way under different stages of enterprise. 8) resource mobilization The natural resources including the human resource skill can be effectively utilized for functioning of an enterprise towards economic development which might otherwise remain unutilized and idle. 9) backward and forward linkages Entrepreneurship will give the opportunity for the people to involve at different levels starting from production to ultimate consumption, the backward and forward linkages which stimulate the process of economic development in the country. 10) promotes countrys export trade

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Entrepreneurship notes

III semester MBA

Last but no means the least, it also promotes countrys export trade i.e., an important ingredient to economic development.

Classification of entrepreneurship A. Clarence Danhof Classification: Clarence Danhof classifies entrepreneurs into four types. 1. Innovative: Innovative entrepreneur is one who assembles and synthesis

information and introduces new combinations of factors of production. They are characterized by the smell of innovativeness. These entrepreneurs sense the opportunities for introduction new ideas new technology, new markets and creating new organizations. Innovative entrepreneurs are very much helpful for their country because they bring about a transformation in life style. 2. Imitative/ Adoptive: Imitative entrepreneur is also known as adoptive entrepreneur. He simply adopts successful innovation introduced by other innovators. These entrepreneurs imitate the existing entrepreneurs and setup their enterprise in the same manner. Instead of innovating, they just imitate the technology and methods innovated by others. These entrepreneurs are very helpful in less developed countries as they contribute significantly in the growth of enterprise and entrepreneurial culture in these countries. Further by adopting the technology, which is already tested, they generate ample employment avenues for the youth and therefore they are treated as agent of economic development. 3. Fabian: The Fabian entrepreneur is timid and cautious. He imitates other innovations only if he is certain that failure to do so may damage his business. They are very much skeptical in their approach in adopting or innovating new

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Entrepreneurship notes

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technology in their enterprise. They are not adaptable to the changing environment. They love to remain in the existing business with the age-old techniques of production. They only adopt the new technology when they realize that failure to adopt will lead to loss or collapse of the enterprise. 4. Drone: These entrepreneurs are conservative or orthodox in outlook. They never like to get rid of their traditional business and traditional machinery or systems of the business. They always feel comfortable with their old fashioned technology of production even though the environment as well as the society have undergone considerable changes. Thus, drone entrepreneurs refuse to adopt the changes. They are laggards as they continue to operate in their traditional way and resist changes. His entrepreneurial activity may be restricted to just one or two innovations. They refuse to adopt changes in production even at the risk of reduced returns B. Arthur H. Cole Classification: Arthur H. Cole classifies entrepreneurs as 1. Empirical: 2. Rational: He is an entrepreneur hardly introduces anything revolutionary The rational entrepreneur is well informed about the general

and follows the principle of rule of thumb. economic conditions and introduces changes which look more revolutionary. 3. Cognitive: Cognitive entrepreneur is well informed, draws upon the advice and services of experts and introduces changes that reflect complete break from the existing scheme of enterprise.

C. Classification on the Basis of Ownership: 1.Private: Private entrepreneur is motivated by profit and it would not enter those

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Entrepreneurship notes

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sectors of the economy in which prospects of monetary rewards are not very bright. 2. Public: In the underdeveloped countries government will take the initiative to share enterprises. D. Classification Based on the Scale of Enterprise: 1. Small scale: This classification is especially popular in the underdeveloped countries. Small entrepreneurs do not posses the necessary talents and resources to initiate large scale production and introduce revolutionary technological changes. 2. Large scale: In the developed countries most entrepreneurs deal with large scale enterprises. They posses the financial and necessary enterprise to initiate and introduce new technical changes. The result is the developed countries are able to sustain and develop a high level of technical progress. In recent years, some new classifications have been made regarding entrepreneurs, which are discussed further. 1. Solo operators: These entrepreneurs prefer to set up their business individually. They introduce their own capital, intellect and business acumen to run the enterprise successfully They operate their business mainly in the form of proprietorship type of concern. 2. Active partners: Entrepreneurs of this type jointly put their efforts to build enterprise pooling together their own resources. They actively participate in managing the daily routine of the business concern. As such, the business houses or the firms which are managed by the active partners become more successful in their operation.

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3. Inventors: These entrepreneurs primarily involve themselves in Research and Development (R and D) activities. They are creative in character and feel happy in inventing new products, technologies and methods of production 4. Challengers: Entrepreneurs of this type take challenges to establish business venture as mark of achievement. They keep on improving their standard and face boldly the odds and adversities that come in their way. They use their business acumen and talent to convert the odds into opportunities thereby making profit. According to them, if there is no challenge in life, there is no charm in life. Challenges make them bold, and thus, they never hesitate to plunge themselves into uncertainties for earning profit. 5. Buyers (entrepreneurs): These entrepreneurs explore opportunities to purchase the existing units which may be seized or are in running condition. If the units they purchase are sick they turn them around using their experiences, expertise and business acumen. By purchasing these units they make themselves free from the hassles of building infrastructures and other facilities. Unit 2 EDPs Entrepreneurship Development Programmes Objective of EDPs Develop and strength their entrepreneurial quality. Analysis environmental set up relating to small industry and small business. Select productEinstein College of Engineering Formulate project for the product Know pros and cons in becoming an entrepreneurs Develop a broad vision about the business.

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Course contents and curriculum of EDPs 1. General instruction to Entrepreneurship 2. Motivation Training 3. Management Skills 4. Support system and procedure 5. Fundamentals of project feasibility study 6. Plant visits Phases of EDPs 1) Pre- training Phase a) Selection of entrepreneurs b) Arrangement of infrastructure c) Tie-up of guest faculty for the training purpose. Like that 2) Training Phase a) Purpose of training is to develop need for achievement b) Role play as like entrepreneur 3) Post-training Phases a) Follow- up b) Review the pre- training work c) Review the process of training programmes and d) Review past training approach ACTION PLAN: Proper planning and execution are required at all levels. Proper training in

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right direction is to be planned meticulously. The steps to be taken can be listed as follows: Identifying entrepreneurs with different literary levels in proper groups and to create awareness about entrepreneurship and its importance as job providing avenues rather than job seeking ventures. Skills to be provided to selected group are to be identified. Making them to realise the income generation and social status and recognition. Giving orientation and skill training on selected trades on their choice and suitability Assisting them in preparation of project reports for their own proposed units and helping them to follow up the venture to start the new enterprise. Providing consultancy and guidance, continuously A training capsule of around 15 days may be provided by expert institutions, voluntary agencies and Govt., departments. The financial resources are to be mobilised to provide this type of programmes, by the government organizations like banks, public sector organizations and voluntary agencies... The higher education institutions, which are spreading throughout the country, may conduct programmes like this, regularly in addition to their academic programmes, with or without govt., aid. Young graduates of that area and the final year students of U.G/P.G courses may also be provided with such training. Normally, infrastructures are available with such institutions. Getting expertise and mobilizing other requirements will also be easier for such institutions, since they are already having good establishment facilities. Voluntary agencies like Rotary clubs, Lions clubs, and etc. Govt., sponsored institutions like UGC, Science and technology Councils may interact with the colleges/universities, through financial assistance, to carry out the programmes.

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With proper financial assistance and effectively using them, each college/university may train 300 to 1000 youths, in the area of entrepreneurship development. When women are going to be the target groups, the benefit will reach a larger section of the society. Thus ED culture is to be developed gradually among the prospective individuals, in addition to providing educational facilities to use the vibrant individual force in right direction. Thus programmes combining, technical skill and entrepreneurship skill, to selected groups, will make the Indian people more self reliant and confident and would lead them to be envied by people at the international level. TRAINING COMPONENTS: Even though there are very efficient institutions at the national level, like EDI Ahmadabad, NSTED BOARD, New Delhi, NISIE, Hyderabad and at State level, CED in Madurai and Chennai, TANSTIA in Chennai such programmes are to be conducted at regional level, at the residential area of the women, in their vernacular language and to the specific requirement of the people of that area. The essential components of such training may be listed as follows. 1. Awareness, career building and attitudinal change towards enterprise formation. 2. Effective training on building up self-confidence and communication skills. 3. Skill training on specific trades suitable to their option. 4. Training on quick and effective decision making techniques and managerial skills. 5. Training on marketing strategies. 6. Training on effective financial management. 7. Training on project formulation and implementation. 8. Scope for increasing access to new technologies and scientific knowledge. 9. Information on persons/offices to be contacted.

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Entrepreneurship notes

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10. Interaction with successful entrepreneurs for sharing their experiences Unit 3 Financial Institutions: Commercial banks IDBI IFCI ICICI LIC UTI SFCs SIDBI EXIM BANK

Support Institutions NSIC SIDO SSIB SSIDC SISIs DICS INDUSTRIAL ESTATES Entrepreneurial Initiatives in India- Top Incubation Center 1.Centre for Innovation, Incubation& Entrepreneurship (CIIE) - IIM Ahmedabad Set up in 2001

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Since inception CIIE has 15-odd innovations grow out of the incubation centre in varied technologies 2. Society for Innovation and Entrepreneurship (SINE)- IIT Bombay Set up in 2004 It currently has 16 companies under its incubation programme 3. Cell for Tech Innovation, Development & entrepreneurship support- IIT Chennai Set up in 2000 Organises national level competitions, Breakthrough (general business plan competition) and Genesis (social entrepreneurship plan competition) 4. Society for Innovation and Development (SID) - IISc, Bangalore Set up in 2006 The investigator is given a seed capital for Rs 20 lakh a year for two years as soft loan for the approved plan 5. The SP Jain Centre for Entrepreneurship Development- SPJIMR 16-week 'Start Your Own Business' programme-a public programme held every six months. 6. Technology Business Incubator (TBI) - BITS Pilani In association with DST, BITS has established Technology Business Incubator in the area of embedded systems and VLSI design back in 2004 So far, TBI has helped spawn ten companies. 7. Technology Incubation and Entrepreneurial Training Society (TIETS) IIT Kharagpur

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Set up in 2005, So far, the institute has been able to incubate two companies through Concipio over the last three years. Besides, an in house panel has helped 11-12 ventures take wing 8. Nirma Labs, Nirma University, Ahmedabad Established in 2004, Nirma Labs used to pride itself in a three-step model for students who were interested to start their own businesses-training, incubation and funding. Entrepreneurial Initiatives in India- Government and Non Government Support Delhi Technical University announced the setting up of water technology and management centre with the support of UNESCO. The Entrepreneurship Development Cell (EDC) of University School of management Studies, Guru Gobind Singh Indraprastha University (GGSIPU) has launched a one month business skill development programme in association with the Ministry of Micro, Small and Medium Enterprises. Representatives from KVIC, NABARD will share their knowledge. What is a Micro, Small or Medium Enterprise? The earlier concept of Industries has been changed to Enterprises Enterprises have been classified broadly into: (i) Enterprises engaged in the Manufacture / production of Goods pertaining to any industry; & (ii) Enterprises engaged in providing / Rendering of services. Manufacturing enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into : - Micro Enterprises - investment up to Rs.25 lakh. - Small Enterprises - investment above Rs.25 lakh & up to Rs. 5 crore - Medium Enterprises - investment above Rs. 5 crore & up to Rs.10 crore.

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Entrepreneurship notes

III semester MBA in terms of their

Service enterprises have been defined investment classified into: - Micro Enterprises investment up to

in equipment (excluding land & buildings) and further Rs.10 lakh. Rs.10 lakh & up to Rs.2 crore.

- Small Enterprises investment above

- Medium Enterprisesinvestment above Rs. 2 crore & up to Rs. 5 crore It is not necessary to engage in manufacturing activity for self-employment. One can set up service enterprises as well

THE ROLE OF GOVERNMENT IN SUPPORTING ENTREPRENEURSHIP Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner. SMEs have strategic importance for each national economy due a wide range of reasons. Logically, the government shows such an interest in supporting entrepreneurship and SMEs. There is no simpler way to create new job positions, increasing GDP and rising standard of population than supporting entrepreneurship and encouraging and supporting people who dare to start their own business. Every surviving and successful business means new jobs and growth of GDP. Therefore, designing a comprehensive, coherent and consistent approach of Council of Ministers and entity governments to entrepreneurship and SMEs in the form of government support strategy to entrepreneurship and SMEs is an absolute priority. A comprehensive government approach to

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entrepreneurship and SMEs would provide for a full coordination of activities of numerous governmental institutions (chambers of commerce, employment bureaus, etc.) and NGOs dealing with entrepreneurship and SMEs. With no pretension of defining the role of government in supporting entrepreneurship and SMEs, we believe that apart from designing a comprehensive entrepreneurship and SMEs strategy, the development of national SME support institutions and networks is one of key condition for success. There are no doubts that governments should create different types of support institutions: i) To provide information on regulations, standards, taxation, customs duties, marketing issues; ii) To advise on business planning, marketing and accountancy, quality control and assurance; iii) To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems, and to search for know-how and promote innovation; and iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises. Training Basic training differs from product to product but will necessary involve sharpening of entrepreneurial skills. Need based technical training is provided by the Govt. & State Govt. technical Institutions. There are a number of Government organisations as well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs and are conducted by MSME's, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship Development Institutes and other state government developmental agencies. Marketing Assistance

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There are Governmental and non-governmental specialised agencies which provide marketing assistance. Besides promotion of MSME products through exhibitions, NSIC directly market the MSME produce in the domestic and overseas market. NSIC also manages a single point registration scheme for manufacturers for Govt. purchase. Units registered under this scheme get the benefits of free tender documents and exemption from earnest money deposit and performance guarantee. Promotional Schemes Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality upgradation, common facilities, entrepreneurship development and consultancy services at nominal charges. Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production technique as decided by the entrepreneur himself. Concession on Excise Duty MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by the Ministry of Finance which covers most of the items. Under this, units having turnover of less than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an exemption from Excise Duty for MSME units producing branded goods in rural areas

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Entrepreneurship notes Credit Facility to MSME

III semester MBA

Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME up to Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank. Policies And Schemes For Promotion Of MSME Implemented By State Governments All the State Governments provide technical and other support services to small units through their Directorates of Industries, and District Industries Centres. Although the details of the scheme vary from state to state, the following are the common areas of support. 1. Development and management of industrial estates 2. Suspension/deferment of Sales Tax 3. Power subsidies 4. Capital investment subsidies for new units set up in a particular district 5. Seed Capital/Margin Money Assistance Scheme 6. Priority in allotment of power connection, water connection. 7. Consultancy and technical support Government of India runs a scheme for giving National Awards to micro, small and medium scale entrepreneurs providing quality products in 11 selected

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industry groups of consumer interest. The winners are given trophy, certificate and a cash price of Rs. 25000/- each. Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes like policies and promotional schemes, providing incentives for quality upgradation, concession on excise duty and provides technical supportive services. Thus Government play supportive role in developing entrepreneurs INCENTIVES FOR SETTING UP BUSINESS IN BACKWARD AREAS The Government of India as well as several State Governments provides several benefits and incentives to promote industrialization of backward areas. Both the central and state governments share the cost of some of the incentives provided. The purposes of such incentives are to develop backward areas and increase employment for local inhabitants of such areas. The bulk of new industries prefer areas with an established infrastructure and this is why incentives are offered to entice new ventures to start up in areas that need development. Incentives offered depend on the specific area chosen. Some of the incentives offered are: Transportation subsidies to promote industries in areas that are not easily accessible, like remote hilly areas. A subsidy of 50% to 90% on transportation costs is available under this scheme. A Subsidy at the rate of 15% of the investment amount in plant and machinery is given under the capital investment subsidy scheme. A subsidy for interest relief is also provided at a rate of 3% for new industrial units in some areas.

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While in the past setting up an industry in India was not an easy task because of bureaucratic requirements that needed to be fulfilled. However both the central and state governments have now made efforts to improve some things.

Industrial Unit Startup Information for NRIs For Non Resident Indians returning to India to start up industrial units. They will find that there is plenty of talent available in India. Hiring the right kind of person can make things quite easy to go through the maze of Indian regulations. While the government no doubt is trying to bring out reforms to make things easier for foreign investors, the attitude of some officials is difficult to change. Those who encounter problems should use the several channels available now to report clerks use delaying tactics for personal gain. Returning NRI's who can tolerate the initial adjustment setbacks in establishing themselves when they return to India will ultimately find the rewards well worth the effort. India offers investors tremendous opportunities and is presently one of the most sought locations for industrial investment. Unit 4 Institutional support to entrepreneurs NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) The National Small Industries Corporation (NSIC), an enterprise under the union ministry of industries was set up in 1955 in New Delhi to promote aid and facilitate the growth of small scale industries in the country. NSIC offers a package of assistance for the benefit of smallscale enterprises.

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1. Single point registration: Registration under this scheme for participating in government and public sector undertaking tenders. 2. Information service: NSIC continuously gets updated with the latest specific information on business leads, technology and policy issues. 3. Raw material assistance: NSIC fulfils raw material requirements of small-scale industries and provides raw material on convenient and flexible terms. 4. Meeting credit needs of SSI: NSIC facilitate sanctions of term loan and working capital credit limit of small enterprise from banks. 5. Performance and credit rating: NSIC gives credit rating by international agencies subsidized for small enterprises up to 75% to get better credit terms from banks and export orders from foreign buyers. SMALL INDUSTRIES DEVELOPMENT ORGANIZATION (SIDO) SIDO is created for development of various small scale units in different areas. SIDO is a subordinate office of department of SSI and ARI. It is a nodal agency for identifying the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries. It undertakes various programmes of training, consultancy, evaluation for needs of SSI and development of industrial estates. All these functions are taken care with 27 offices, 31 SISI (Small Industries Service Institute) 31 extension centers of SISI and 7 centers related to production and process development. The activities of SIDO are divided into three categories as follows: (a) Coordination activities of SIDO: (1) To coordinate various programmes and policies of various state governments pertaining to small industries. (2) To maintain relation with central industry ministry, planning commission, state level industries ministry and financial institutions.

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(3) Implement and coordinate in the development of industrial estates. (b) Industrial development activities of SIDO: (1) Develop import substitutions for components and products based on the data available for various volumes-wise and value-wise imports. (2) To give essential support and guidance for the development of ancillary units. (3) To provide guidance to SSI units in terms of costing market competition and to encourage them to participate in the government stores and purchase tenders. (4) To recommend the central government for reserving certain items to produce at SSI level only. (c) Management activities of SIDO: (1) To provide training, development and consultancy services to SSI to develop their competitive strength. (2) To provide marketing assistance to various SSI units. (3) To assist SSI units in selection of plant and machinery, location, layout design and appropriate process. (4) To help them get updated in various information related to the small-scale industries activities SMALL INDUSTRIES SERVICE INSTITUTES (SISI) The small industries service institutes have been set up in state capitals and other places all over the country to provide consultancy and training to small entrepreneurs both existing and prospective. The main functions of SISI include: (1) To serve as interface between central and state government. (2) To render technical support services.

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(3) To conduct entrepreneurship development programmes. (4) To initiate promotional programmes.

The SISIs also render assistance in the following areas: (1) Economic consultancy/information/EDP consultancy. (2) Trade and market information. (3) Project profiles. (4) State industrial potential surveys. (5) District industrial potential surveys. (6) Modernization and in plant studies. (7) Workshop facilities. (8) Training in various trade/activities. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) For ensuring larger flow of financial and non-financial assistance to the small scale sector, the government of India set up the Small Industries Development Bank of India (SIDBI) under Special Act of Parliament in 1989 as a wholly owned subsidiary of the IDBI. The SIDBI has taken over the outstanding portfolio of the IDBI relating to the small scale sector. The important functions of IDBI are as follows: (1) To initiate steps for technological upgradation and modernization of existing units. (2) To expand the channels for marketing the products of SSI sector in domestic and international markets. (3) To promote employment oriented industries especially in semi-urban areas to create more employment opportunities and thereby checking migration of people to urban areas.

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The SIDBIs financial assistance to SSIs is channeled through existing credit delivery system comprising state financial corporations, state industrial development corporations, commercial banks and regional rural banks. In 2010-11 it has introduced two new schemes. The first is equipment finance scheme for providing direct finance to existing well-run small-scale units taking up technology upgradation/modernization and refinance for resettlement of voluntarily retired workers of NTC. The other new scheme was venture capital fund exclusively for small-scale units, with an initial corpus of Rs 10 crore. SIDBI also provides financial support to national small industries corporation (NSIC) for providing leasing, hirepurchase and marketing support to the industrial units in the small scale sector.

EXIM bank The Export-Import Bank of India, set up in 1982, for the purpose of financing facilitating and promoting foreign trade of India, is the principal financial institution in the country for coordinating working of institutions engaged in financing exports and imports. The Exim bank is fully owned by the Government of India and is managed by a Board of Directors with representation from Government, financial institutions, bank and business community. The operations are grouped into Project Finance. Trade Finance and Overseas Investment Finance, supported by Planning and Co-ordination Groups. Objectives and Functions: The objectives and functions of the Exim Bank include the following: 1. Grant of loans and advances in India solely or jointly with commercial banks to persons exporting or intending to export India goods which may include the

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export of turnkey projects and civil consultancy services. 2. Grant of lines credit to Governments, financial institutions and other suitable organizations in foreign countries to enable person outside India to import from India, goods including turnkey projects, civil construction contracts and other services including consultancy services. 3. Handling transaction where a mix of government credit and commercial credit for exports is involved. 4. Purchasing, discounting and negotiating export bills. 5. Selling or discounting export bills in international markets. 6. Discounting of export bills negotiated or purchased by a scheduled bank or financial institution notified by government, or granting loans and advances against such bills. 7. Providing refinance facilities to specified financial institutions against credits extended by them for specified exports or imports. 8. Granting loans and advances or issuing guarantees solely or jointly with a commercial bank for the import of goods and services from abroad. 9. Issuing confirmation/endorsing letters of credit on behalf of exporters in India, negotiating, collecting bills under letters of credit, opening letters of credit on behalf of importers of goods is services and negotiating documents received there under. 10. Buying and selling foreign exchange and performing such other functions of an authorized dealer as may necessary for the functions of an export- import bank. 11. Undertaking and financing research, surveys and techno-economic studies bearing on the promotion and development of international trade. 12. Providing technical, administrative and financial assistance to any exporter in India or any other person who intends to export goods from India for the promotion, management or expansion of any industry with a view to developing international trade.

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The Exim bank extends both funded and non-funded assistance for promotion of foreign trade. The funded assistance program of the Bank includes direct financial assistance to exporters, rediscounting of export bills, technology and consultancy services financing, refinancing of export credit and re-lending facility to banks abroad. The non-funded assistance is in the form of guarantees which are in the form of bid bonds, advance payment and performance guarantees, retention money guarantees and guarantees for raising finance abroad. The Exim bank participates with commercial banks in India in the issuance of guarantees in foreign currencies on behalf of Indian exporters/contractors in favor of overseas importers/employers and banks. Exim Syndication facility was later introduced to attract greater participation in export credit by commercial banks in India who are authorized dealers in foreign exchange. Under this scheme, the Exim Bank provides funds for an export proposal and syndicates the credit risks to commercial banks, ad the banks for assuming the risks earn a commission of 0.5 percent annum from the Exim Bank. The Exim bank also provides information and advisory services to enable exporters to evaluate the international risks, export opportunities and competitiveness. These include country studies, merchant banking services, advice on international marketing and data to enable effective participation in opportunities offered by projects by multilateral institutions. Further, the bank carries out Research and Analysis on specific industry subsectors with export potential international trade related subjects. These are widely disseminated amongst exporters, academicians, industry and trade organizations and government.

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Thus, the Exim Bank follows a three pronged strategy to promote Indian exports. More than export finance, the Bank is engaged in export capability creation.

SIDBI

Small Industries Development Bank of India (SIDBI) was established in October 1989 and commenced its operation from April 1990 with its Head Office at Lucknow as a development bank, exclusively for the small scale industries. It is a central government undertaking. The prime aim of SIDBI is to promote and develop small industries by providing them the valuable factor of production finance. Many institutions and commercial banks supply finance, both long-term and short-term, to small entrepreneurs. SIDBI coordinates the work of all of them. Functions of Small Industries Development Bank of India (SIDBI): Over the years, the scope of promotional and developmental activities of SIDBI has been enlarged to encompass several new activities. It performs a series of functions in collaboration with voluntary organisations, non-governmental organisations, consultancy firms and multinational agencies to enhance the overall performance of the small scale sector. The important functions of SIDBI are discussed as follows: (i) Initiates steps for technology adoption, technology exchange, transfer and upgradation and modernisation of existing units. (ii) SIDBI participates in the equity type of loans on soft terms, term loan, working capital both in rupee and foreign currencies, venture capital support, and different forms of resource support to banks and other institutions. (iii) SIDBI facilitates timely flow of credit for both term loans and working capital to SSI in collaboration with commercial banks. St. Hopkins College of management, Bangalore 32

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(iv) SIDBI enlarges marketing capabilities of the products of SSIs in both domestic and international markets. (v) SIDB1 directly discounts and rediscounts bills with a view to encourage bills culture and helping the SSI units to realise their sale proceeds of capital goods / equipments and components etc. (vi) SIDBI promotes employment oriented industries especially in semi-urban areas to create more employment opportunities so that rural-urban migration of people can be checked. Financial Assistance Scheme of SIDBI It is the general observation that the main obstacles and problems in the growth of industrial units are the paucity of primary infrastructure, unavailability of suitable market for selling the products, working capital requirement and difficulties arising out of the delays in receiving the bills. Looking to the above problems SIDBI has included many provisions into its various schemes. 1. Loan assistance to the institutions providing market or marketing avenues to the small entrepreneurs. 2. Loan to ancillary units and also for modernisation and upgrading technology. 3. Loan to institutions providing primary services and infrastructure and developing the growth centres. 4. Loan assistance to NSIC. Apart from the above loan assistance, SIDBI also serves the following: (a) Refinance to SSIDCs which supply raw material to small units and provide them market avenues.

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(c) Refinance for loan given by state level institutions and banks under the single window system for fixed and working capital. (d) Refinance of loan given to certified professionals and self-employed people for business like small clinics and hospitals, nursing homes, development of tourism etc. 5. Refinance for loan given by banks and concerned institutions for new projects, expansion and modernisation of existing units, quality improvement and rehabilitation of the units. Similarly, SIDBI provides assistance to women entrepreneurs and ex-servicemen under its various schemes. So in the above way SIDBI makes a good platform for the budding entrepreneurs. IFCI Functions The main functions of I.F.C.I. are as under:i) Granting loans and advances for the establishment, expansion, diversification and modernisation of industries in corporate and co-operative sectors. ii) Guaranteeing loans raised by industrial concerns in the capital market, both in rupees and foreign currencies. iii) Subscribing or underwriting the issue of shares and debentures by industries. Such investment can be held up to 7 years. iv) Guaranteeing credit purchase of capital goods, imported as well as purchased within the country.

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v) Providing assistance, under the soft loans scheme, to selected industries such as cement, cotton textiles, jute, engineering goods, etc SFC The functions of SFCs include (1) Grant of loans and advances to or subscribe to debentures of, industrial concerns repayable within a period not exceeding 20 years, with option of conversion into shares or stock of the industrial concern. (2) Guaranteeing loans raised by industrial concerns which are repayable within a period not exceeding 20 years. (3) Guaranteeing deferred payments due from an industrial concern for purchase of capital goods in India. (4) Underwriting of the issue of stock, shares, bonds or debentures by industrial concerns. (5) Subscribing to, or purchasing of, the stock, shares, bonds or debentures of an industrial concern subject to a maximum of 30 percent of the subscribed capital, or 30 percent of paid up share capital and free reserve, whichever is less. IDBI The IDBI has been established to perform the following functions(1) To grant loans and advances to IFCI, SFCs or any other financial institution by way of refinancing of loans granted by such institutions which are repayable within 25 year.

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(2) To grant loans and advances to scheduled banks or state co-operative banks by way of refinancing of loans granted by such institutions which are repayable in 15 years. (3) To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks, state co-operative banks by way of refinancing of loans granted by such institution to industrial concerns for exports. (4) To discount or rediscount bills of industrial concerns. (5) To underwrite or to subscribe to shares or debentures of industrial concerns. (6) To subscribe to or purchase stock, shares, bonds and debentures of other financial institutions. (7) To grant line of credit or loans and advances to other financial institutions such as IFCI, SFCs, etc. (8) To grant loans to any industrial concern. (9) To guarantee deferred payment due from any industrial concern

ICICI The primary function of ICICI is to act as a channel for providing development finance to industry. In pursuit of its objectives of promoting industrial development, ICICI performs the following functions:(i) It provides medium and long-term loans in Indian and foreign currency for importing capital equipment and technical services. Loans sanctioned generally go towards purchase of fixed assets like land, building and machinery; (ii) It subscribes to new issues of shares, generally by underwriting

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(iii) It guarantees loans raised from private sources including deferred payment; (iv) It directly subscribes to shares and debentures; (v) It provides technical and managerial assistance to industrial units; (vi) It provides assets on lease to industrial concerns. In other words, assets are owned by ICICI but allowed to be used by industrial concerns for a consideration called lease rent. (vii) It provides project consultancy services to industrial units for new projects.

Problems of entrepreneurs The path of small entrepreneurs is not rosy. Small entrepreneurs face the following types of problems: (1) Problem of raw materials: A major problem that the small entrepreneurs face is the procurement of raw materials. They have to confront with numerous problems like; i. Availability of inadequate quantity ii. Poor quality of materials iii. High cost of raw materials etc All these factors adversely affect the proper functioning of small units.

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Finance is one of the most important problems faced by small entrepreneurs. As finance is the life blood of a business organization and no business organization can function properly in the absence of adequate funds. The problem of finance in small sector is mainly due to two reasons i.e. (i) Scarcity of capital in the country as a whole. (ii) Weal credit-worthiness of small units in the country. Due to their weak economic base, they find it difficult to take financial assistance from the commercial banks and financial institutions. Therefore, small entrepreneurs have to obtain credit from the money lenders on a very high rate of interest. (3) Problem of marketing: One of the major problems faced by small entrepreneurs is in the field of marketing. They are not in a position to get first hand information about the market i.e. information about completion, taste, liking disliking of consumers. Therefore, they are not able to upgrade their products according to the changing business environment. These small units acceding to the changing business environment. These small units often do not process any marketing organization. As a consequence, their product quality compares unfavorably with the quality of the products of the large scale industries. Therefore, these industries suffer from a comparative disadvantage as compared to large scale industries.

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(4) Problem of under utilization of capacity: Most of the small entrepreneurs are suffering from the problem of under utilization of capacity. Small scale units are making only 40 to 50 percent use of their installed capacities due to various reasons such as shortage of finance, raw-materials, power and under-developed markets for their products. (5) Outdated technology: Most of the small entrepreneurs depend upon old techniques and equipment. These units find it very difficult to modernize their plant and machinery due to limited capacity and capital. He quality of products and productivity tend be low in the absence of modern technology and that too at higher cost. They are in no position to complete with their better equipped rivals operating modern large scale units. For example, Khaki products even after government subsidy seem to be costlier. (6) Poor project planning: Poor project planning is another problem faced by small entrepreneurs. In the absence of education and experience, these entrepreneurs do not attach much significance to viability studies. They do not bother to study the demand aspect, marketing problems, sources of raw materials. Inexperienced and incompetent entrepreneurs often submit unrealistic feasibility reports and incomplete documents which invariably result in delays in completing promotional formalities. They cannot afford to avail services of project consultants due to limited financial resources.

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Insufficient quality and quantity of transportation, communication and other basic services particularly in backward areas is another problem. Inadequate infrastructure results in under utilization of capacity and wastages. Inadequate infrastructures also adversely affect the quality, quantity and production schedule of the enterprises operating in these areas. Therefore, their functioning will become uneconomical and unviable. (8) Problem of skilled manpower: A small entrepreneur located in backward area may not have problem of unskilled workers but it may be exposed to the problem of non-availability of skilled workers. Skilled workers may be reluctant to work in their areas and small scale enterprise may not afford to pay the wages and other facilities demanded by these persons. Unavailability of skilled manpower result in lower productivity, deterioration of quality, increase in wastages, rise in other overhead costs and finally adverse impact on the profitability of these small scale units. (9) Managerial problem: Another serious problem for small scale units is managerial inadequacies. Modern business demands vision, knowledge, skill, aptitude and whole hearted devotion. The managerial competence of the entrepreneur is very important for the success of any venture. An entrepreneur is required to undergo training and counseling for developing his organization revolves. Therefore, he must be fully conversant with all aspects of management. Lack of proper commitment and managerial skill will add to the problems of entrepreneurs.

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In addition to above discussed problems, the small scale industries have been constrained by a number of other problems such as trained technicians, technological obsolescence, unorganized nature of operation etc. Unit 5 Meaning and Concept of Women Entrepreneur: Increase in cost of living has prompted the Indian women to undertake economic activities in order to support their families. They are coming forward to take risks, face challenges and prove to the world that their role in the society is no more limited to that of buyers but they can be also successful sellers. There are thousands of good examples where women have shown

entrepreneurial talents and have succeeded. Women entrepreneurs are the key players in any developing country in terms of their contribution to economic development. Now, it is imperative to know who is an women entrepreneur. In the simplest sense, women entrepreneurs are those women who take the lead and organise the business or industry and provide employment to others. It signifies that section of female population who venture out into industrial activities. It may be defined as a woman or group of women who initiate, organise and run a business enterprise. However, Government of India has given a broader definition of the term women entrepreneur. It defined women entrepreneur as "an enterprise owned and controlled by women having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women".

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According to J.A. Schumpeter, "Woman who innovates, imitates, or adopts a business activity is called woman entrepreneur." Thus women entrepreneur are those women who initiate, organise and operate business enterprise and want to prove their mettle in innovative and competitive jobs. She also want to oversee and control every aspects of her business for its overall success. Growth of Women Entrepreneurship: Almost half of India's population consists of women. But they constitute a very negligible proportion of the total entrepreneurs. Entrepreneurial traits and competencies have not been well developed amongst the women entrepreneurs. They are very shy in nature and emotionally attached to the family. They are treated as weak and dependent on men. They are the neglected sections in the society. The much low literacy rate 39%, low work participation rate 28% and low urban population share 10% of women as compared to 63%, : 52% and 18% respectively of their male counterpart well confirm their precarious position in the society. In spite of the above, in sixties, women have started entrepreneurial activities as one- woman enterprises at home and from home for self-occupation and engagement. The number of women entrepreneurs were only 6000 which miserably low during the period. Indian women started their entrepreneurial work in 1970s. Their entrepreneurship is traced out as an extension of kitchen activities mainly pickles, powder and pappad. Women are encouraged to start an occupation or venture with an urge to do something independently started to tide over their economic difficulties and responsibilities. In the seventies, Government of India has also brought a change in its policy objective of welfare approach of women to development approach of women. Women were given priorities in all the sectors including small scale industries

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sector. As a result, the number of women entrepreneurs has increased over the years. During 1980s, government and non-government bodies have paid increasing attention to women entrepreneurs through formulation of various policies and programmes and introduction of new schemes and incentives. It adopted a multidisciplinary approach for development of women entrepreneurs. Women entrepreneurs were given top priority for implementation of programmes under agricultural and its allied activities of diary farming, poultry, animal husbandary, handlooms, handicrafts and small scale industries, etc. In the nineties, out of the total women population of 437.10 millions, there are 126.48 million women workforce of which only 1,85,900 women accounting for self employed in the country. This indicates a dismally low level of women participation in the entrepreneurial activities. Further women entrepreneurs in India accounted for 9.01% of the total 1.70 million entrepreneurs during 1988-89. There were more than 2,95,680 women entrepreneurs claiming 11.2% of the total 2.64 million entrepreneurs in India during 1995-96. The number of women entrepreneurs have increased to 3,28,000 in 1996-97. During the ninth five year plan, the government has introduced in 1998 an important scheme on Trade Related Entrepreneurship of Assistance and Development (TREAD) aiming at economic empowerment of women in rural, urban and semi-urban areas. It develops their entrepreneurial skill and eliminates the constraints faced by women entrepreneurs. REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA The problems and constraints experienced by women entrepreneurs have resulted in restricting the expansion of women entrepreneurship. The major barriers encountered by women entrepreneurs are: St. Hopkins College of management, Bangalore 43

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The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal- male dominant social order is the building block to them in their way towards business success. Male members think it a big risk financing the ventures run by women Male chauvinism is still prevalent in many parts of the country yet. Women are looked upon as abla i.e. weak in all respects. In a male dominated society, women are not treated equal to men that act as a barrier to womans entry into business. Women entrepreneurs have to face a stiff competition with the men entrepreneurs who easily involve in the promotion and development area and carry out easy marketing of their products with both the organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women entrepreneurs. Lack of self-confidence, will-power, strong mental outlook and optimistic attitude amongst women creates a fear from committing mistakes while doing their piece of work. The family members and the society are reluctant to stand beside their entrepreneurial growth. Women in India lead a protected life. They are even less educated, economically not stable nor self-dependent which reduce their ability to bear risks and uncertainties involved in a business unit, The old and outdated social outlook to stop women from entering in the field of entrepreneurship is one of the reasons for their failure. They are under a social pressure which restrains them to prosper and achieve success in the field of entrepreneurship Unlike men, women mobility in India is highly limited due to many reasons. A single women asking for room is still looked with suspicion. Cumbersome exercise involved in starting with an enterprise coupled with officials humiliating attitude towards women compels them to give up their spirit of surviving in enterprise altogether.

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Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. Indian women give more emphasis to family ties and relationships. Married women have to make a fine balance between business and family. The business success also depends on the support the family members extended to women in the business process and management. The educational level and family background of husbands also influences women participation in the field of enterprise. Absence of proper support, cooperation and back-up for women by their own family members and the outside world people force them to drop the idea of excelling in the enterprise field. They are always making many pessimistic feelings to be aroused in their minds and making them feel that family and not business is a place meant for them. Many women take the training by attending the Entrepreneurial Development programme without an entrepreneurial bent of mind. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews, etc. High production cost of some business operations adversely affects the development of women entrepreneurs. The installations of new machineries during expansion of the productive capacity and like similar factors discourage the women entrepreneurs from venturing into new areas. Women controlled business are often small and it is not always easy for women to access the information they need regarding technology, training, innovative schemes, concessions, alternative markets, etc. Just a small percentage of women entrepreneurs avail the assistance of technology and they too remain confined to word processing software in the computer. They hardly make use of advanced software available like statistical software SAP, Accounting Package like TALLY, Animation software 3D MAX, internet, etc

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Lack of awareness about the financial assistance in the form of incentives, loans, schemes etc. by the institutions in the financial sector. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. Achievement motivation of the women folk found less compared to male members. The low level of education and confidence leads to low level achievement and advancement motivation among women folk to engage in business operations and running a business concern.

SUGGESTIONS FOR THE GROWTH OF WOMEN ENTREPRENEURS Right efforts from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Entrepreneurship basically implies being in control of ones life and activities and women entrepreneurs need to be given confidence, independence, and mobility to come out of their paradoxes. The following measures are suggested to empower the women to seize various opportunities and face challenges in business. There should be a continuous attempt to inspire, encourage, motivate and cooperate women entrepreneurs. An Awareness programme should be conducted on a mass scale with the intention of creating awareness among women about the various areas to conduct business. Attempts should be there to enhance the standards of education of women in general as well making effective provisions for their training, practical experience and personality development programmes, to improvise their over-all personality standards. Organize training programmes to develop professional competencies in

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managerial, leadership, marketing, financial, production process, profit planning, maintaining books of accounts and other skills. This will encourage women to undertake business. Vocational training to be extended to women community that enables them to understand the production process and production management. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops. Educational institutes should tie up with various government and nongovernment agencies to assist in entrepreneurship development mainly to plan business projects. International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should be organized to help women to facilitate interaction with other women entrepreneurs. Women in business should be offered soft loans & subsides for encouraging them into industrial activities. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures. Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level. Schemes/institutions promoting women entrepreneurs Prime Ministers Rojgar Yojana (PMRY) Entrepreneurial Development programme (EDPs) Management Development progammes Womens Development Corporations (WDCs) Marketing of Non-Farm Products of Rural Women (MAHIMA) Assistance to Rural Women in Non-Farm Development (ARWIND) schemes Trade Related Entrepreneurship Assistance and Development (TREAD) Working Womens Forum Indira Mahila Yojana Indira Mahila Kendra

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Entrepreneurship notes Mahila Samiti Yojana Mahila Vikas Nidhi Micro Credit Scheme Rashtriya Mahila Kosh SIDBIs Mahila Udyam Nidhi Mahila Vikas Nidhi SBIs Stree Shakti Scheme NGOs Credit Schemes

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Micro & Small Enterprises Cluster Development Programmes (MSE-CDP). National Banks for Agriculture and Rural Developments Schemes Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP) Priyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid Gangetic Plains NABARD- KfW-SEWA Bank project Need and importance of women entrepreneurs It is imperative to note the participation of women in economic activities as selfemployed individuals. Many of the traditional occupations open to women were mainly based on caste, creed and the nature of self-employment based on the standard of living. Presently, women are generating employment for themselves in an unorganized sector and another category of women who provide employment for others. The country needs to mobilize and utilize fully all its resources including human resources. The participation of women in economic activities is necessary not only from a human resource point of view but also is essential even from the objective of raising the status of women in the society. The economic status of the women is now accepted as an indicator of a societys stage of development and therefore it becomes imperative for the government to frame policies for development of entrepreneurship among women. The long-term objectives of the development programmes for women

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should aim to raise their economic and social status in order to bring them into the mainstream of national life and development. For this, due recognition has to be accorded to the role and contribution of women in the various social economic and political and cultural activities

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