PROJECT REPORT ON ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

BACHELOR OF BUSINESS ADMINISTRATION (SESSSION: 2009-2011)

Under the guidance of: Mr. Amit Kajal GauravSaini 1209403 MMIM BBA (Industry Integrated)

Submitted By: Lecturer

MAHARISHI MARKANDESHWAR INSTITUTE OF MANAGEMENT (MULLANA)

TO WHOM SO EVER IT MAY CONCERN

This is to certify that GAURAV SAINI bearing University Roll No. : 1209403, a bonafide student of BBA (Trimester- 4) has completed his work on project entitled ROLE OF ENTREPRENEURS IN INDIAN ECONOMY under my supervision. His work is original, satisfactory and fit for the purpose of further evaluation.

Mr. Amit Kajal Lecturer MMIM

ACKNOWLEDGEMENT
There is always a source of gratitude which one expresses to the other for the helpful and ready service they render during all work at life. I gratefully acknowledge the inspiration, encouragement, guidance, help and suggestions receipt from the following well wishes. At the first place, I am highly thankful to Mr. Amit Kajal, Lecturer, MMIM, Mullana. Under whose guidance I have successfully completed my project, who always there to give my spirits a boost. I express my sincere regards to him for sparing his valuable time in giving guidance and knowledge that I have gained during the project work is all because of him. I also extend my thanks to other faculty members of MMIM, Mullana for their successful help at various stages.

GAURAV SAINI (Student)

ABSTRACT
Entrepreneurs are people who do things, which are not generally done in the ordinary course of a business. It is not surprising that every fortune 500 Enterprise in existence is the result of an entrepreneur's enterprise and perseverance. Entrepreneurs, according to Karl Vasper, are pillars of industrial strength the movers and shakers who constructively disrupt status quo. Entrepreneurs are the driving forces behind any economy. They create large corporations out of backyard enterprises. Henry ford, Irving Berlins, Bill Gates, King Gillette and Rose Perot were people who envisioned a dream and took risk to achieve this Dream. They marched to a different beat. They were innovators, inventors, and adventurers. Entrepreneurship is a social phenomenon and it is not inherent within a person, rather it exists in the interaction between people. To be a successful Entrepreneur it requires practicing as a manager by acquiring various skills and efforts in learning to understand a business. Entrepreneurship is the future of the modern society. It reflects a ray of hope for the unemployed to earn a living and maintain a dignified life and also for the economic development of the country. The present paper focuses mainly on the dual aspect of Economic Development and how entrepreneurship can improve the status of women in the Indian Society.

CONTENT

TOPIC 1: INTRODUCTION TOPIC 2: DETAIL STUDY TOPIC 3: CONCLUSION

INTRODUCTION

Why is the country that has such a strong knowledge advantage lagging behind others in overall economic development? While Indians the world over are recognized for the central role they are playing in the IT revolution, they themselves do not even have uninterrupted power supply. It seems our economic progress is more drived by it's endorsement by the stock market than by real and distributed value it has created. The lack of entrepreneurial initiatives, the large debt burden and the bureaucratic red tapism can be accorded as obstacles to the growth and development of India. We understand reforms, we all understand liberalization but what we need here is discipline, Considering the licensing and regulatory nightmares faced by potential Indian Entrepreneurs. The challenges faced by an entrepreneur in the 21st century emphasize the need for a spirit of risk taking and Initiative.

ENTREPRENEUR
How do we define "Entrepreneur"? Is there anything to be learned about entrepreneurship and building a business by studying the definition? Or, is studying the historical definition of "Entrepreneur" just an academic exercise?

Let's look at how some small business experts define the word "Entrepreneur":

Bob Reiss, successful entrepreneur and author of Low-Risk, HighReward: Starting and Growing Your Small Business With Minimal Risk, says: "Entrepreneurship is the recognition and pursuit of opportunity without regard to the resources you currently control, with confidence that you can succeed, with the flexibility to change course as necessary, and with the will to rebound from set backs."

A key factor in Reiss's definition is that entrepreneurs undertake opportunities regardless of the resources the entrepreneur currently controls. I've known many people who say they'd love to start a business, but they just don't have the money to get started. Neither did many of history's greatest entrepreneurs like Michael Dell, who started his computer company in his college dorm room or Lillian Vernon, who started her mail-order business when she was a housewife looking for

extra income. These successful entrepreneurs didn't start rich and successful. They ended rich and successful.

Entrepreneurs find ways to acquire the resources they need to achieve their goals. One of those resources is capital. "Entrepreneurial" is often associated with venturesome or creative. Be creative in acquiring the resources you need to build and grow your business. Think outside the box and you'll improve your chances of acquiring what you need to succeed.

Linda Pinson, author of much of the SBA's material about writing a business plan and creator of business plan software (businessplan.com) says: "I have always thought of an entrepreneur as a person who starts a business to follow a vision, to make money, and to be the master of his/her own soul (both financially and spiritually). Inherent in the venture is the risk of what the future may bring. Therefore, I believe that an essential key to success is that the entrepreneur also be an "educated" risk taker.... "

Pinson continues: "I think that there is a general admiration for the entrepreneur who has a skill and bravely jumps into the middle of the fire hoping not to get burned. If he makes it, he is our shining example of who we want to be. If he does not, we say, "Oh, well" and pay no heed to the plight of his venders, associates, and customers who have been burned in the process. The view, though, I think is rapidly changing because a large percentage of American entrepreneurs have

not been successful. Their industry knowledge and skills have been everything we could hope for......but their business skills have been sorely lacking. I think it is now recognized that the "educated risk taker" will win the race."

Many entrepreneurs feel that running a business offers far more security than being an employee. Entrepreneurs often argue that you can acquire wealth much faster if you own a business and you can build a buffer of personal financial security. Further, an entrepreneur's continued paycheck isn't dependent upon a single employer whose faulty business decisions could lead to being laid off. So, while some people see starting a business as more risky than conventional employment, other people see it as less risky.

Pinson's second point is the growing awareness of "professional entrepreneurship." Today, more people aren't just starting one business. They are starting one business followed by another and often another. Such entrepreneurs are sometimes called "serial entrepreneurs." Sometimes these people become angel investors who invest their own money into start-up companies. The more you understand about business and entrepreneurship, the better your chance of succeeding in business. Become an educated risk taker.

Pinson reminds us that entrepreneurs have a certain responsibility not only to themselves but also to their customers, suppliers, and associates.

GillianMurphy, leader of San Joaquin Delta College Small Business Development Center, says: "An entrepreneur is not static but fluid...continues to seek opportunities and/or different methods of operation. When I think of someone with 'an entrepreneurial spirit,' I think of a person who will do whatever it takes to be successful in business, e.g., A former client wanted to open a business in a specific strip mall. However, there were no vacancies. He sought out a business that didn't appear to be very healthy. The business owner agreed to my client's suggestion of dividing her premises, leaving her with reduced rent, inventory needs, and general operations. In turn, my client "found" a location where he could operate his business."

Bernard Kamoroff, entrepreneur, owner of Bell Springs Publishing, and author of the highly-regarded and bestselling book (over 500,000 copies sold), Small Time Operator: How To Start Your Own Small Business, Keep Your Books, Pay Your Taxes, And Stay Out Of Trouble! says: "The original dictionary definition of entrepreneur is one who undertakes to carry out an enterprise,' the words entrepreneur and enterprise possibly having the same root. But people who do call themselves entrepreneurs I find usually think of themselves as more than 'just' a business owner carrying out an enterprise. They view themselves more as a swashbuckler, business adventurer, risk taker. Inc. Magazine in particular likes to promote this image. Me, personally, I do not make the distinction in my books. One of the fun things of being your own boss is giving yourself whatever title you like."

BACKGROUND
Entrepreneurs choose a level of personal, professional or financial risk to pursue opportunity.

Entrepreneurs tend to identify a market opportunity and exploit it by organizing their resources effectively an outcome that changes existing interactions within a given sector.

Business entrepreneurs are viewed as fundamentally important in the capitalistic society. Some distinguish business entrepreneurs as either "political entrepreneurs" or "market entrepreneurs," while social entrepreneurs' principal objectives include the creation of a net social benefit.

Other entrepreneurs are necessity entrepreneurs. Entrepreneurship, particularly among women in developing countries (Minitti, 2010) seems to offer an improvement in the standard of living as well as a path out of poverty. Entrepreneurship is now growing at nearly three times the rate among women as it is among men.

ENTREPRENEUR AS A LEADER
The entrepreneur is the main person behind a firm; she or he can demonstrate her or his quality as a leader by choosing the right managers for the firm.

Scholar Robert. B. Reich considers leadership, management ability, and team-building as essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essaisur la Nature du Commerce en (1755) and Jean-Baptiste Say (1803 or 1834) in his Treatise on Political Economy.

A more generally held theory is that entrepreneurs emerge from the population on demand, from the combination of opportunities and people well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. In this view, one studies on one side the distribution of information available to would-be entrepreneurs and on the other, how environmental factors (access to capital, competition, etc.), change the rate of a society's production of entrepreneurs.

A prominent theorist of the Austrian School in this regard is Joseph Schumpeter, who saw the entrepreneur as innovators and popularized the uses of the phrase creative destruction to describe his view of the role of entrepreneurs in changing business norms. Creative destruction

dealt with the changes entrepreneurial activity makes every time a new process, product or company enters the market.

ENTREPRENEUR AS AN INNOVATOR

There are so many unique characteristics that an entrepreneur possesses, and there is no doubt in my mind that not everyone has these characteristics. These innovators are always going to be successful because of the way that they constantly come up with new products and services.

Let s take a look at some of the characteristics that an entrepreneur has:

Creativity is one of the ways that an entrepreneur will have a constant flow of new products, services, and new markets. They seem to be intoned with the things that people need and the follow through with creating a way to make it possible.

Let me give you an example. If you owned a printing business and the cost of your production was just running too high. An entrepreneur will find a way to introduce a way to keep that high cost of production down.

Enjoys challenges challenges are something that keeps an entrepreneurs mind working. Entrepreneurs will spend a good portion

of their time calculating the pros and cons. If there is not a challenge then they will move on to a new project.

Enthusiastic, you will never find an entrepreneur to be anything less then enthusiastic. They will talk forever about what they are passionate about never accept anything that they do not believe in with their whole heart.

Hardworking This is one of the reasons why an entrepreneur is so successful in nearly anything that they set their minds too. These definitely go hand and hand, with hard work follows success. If you don t work hard then how in the world do you expect to be successful, you won t.

Born leaders Being a leader is important for many different reasons. As a leader you will set yourself above the rest due to your effective planning organizing skills. A leader is always respected, but not always liked. When you are an entrepreneur you don t care about being liked all you want to do is get the job done and done correctly. This doesn t mean that you are not going to treat the people that you are working with like humans, but you don t stand for anything less then hard work.

When you are an entrepreneur there is always going to be a small amount of risk taking involved. Risk taking is part of the challenge, but this is a well thought out risk taking. You don t just jump right into

something without thinking it out completely from start to finish. The risk that you are about to take must be an attainable risk, if you believe that there is going to be a much higher risk of failing rather then succeeding then you will need to avoid that specific challenge. Entrepreneurs choose their challenges by carefully calculating every aspect of it.

This certain DNA structure of an entrepreneur is something that I feel you are born with. You can learn how to become a successful entrepreneur but a born entrepreneur is going to make it look so easy. If you want to become a successful entrepreneur then it s important that you work right along side of someone that was born with this special DNA structure and you will begin to understand the mindset of them.

You can find many successful entrepreneurs that are offering their time to teach you how you too can become a successful entrepreneur. When you have finally made the decision that you want to have full control over your life and its future then you should look on the internet to find a successful entrepreneur to mimic.

THE ROLE OF ENTREPRENEUR

By understanding your place in the economy, you can better position yourself for success. Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct.

A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities.

For years, economists viewed entrepreneurship as a small part of economic activity. But in the 1800s, the Austrian School of Economics was the first to recognize the entrepreneur as the person having the central role in all economic activity. Why is that?

Because it's entrepreneurial energy, creativity and motivation that trigger the production and sale of new products and services. It is the entrepreneur who undertakes the risk of the enterprise in search of profit and who seeks opportunities to profit by satisfying as yet unsatisfied needs.

Entrepreneurs seek disequilibrium - a gap between the wants and needs of customers and the products and services that are currently available. The entrepreneur then brings together the factors of production necessary to produce, offer and sell desired products and services. They invest and risk their money--and other people's money-to produce a product or service that can be sold at a profit.

More than any other member of our society, entrepreneurs are unique because they're capable of bringing together the money, raw materials, manufacturing facilities, skilled labor and land or buildings required to produce a product or service. And they're capable of arranging the marketing, sales and distribution of that product or service.

Entrepreneurs are optimistic and future oriented; they believe that success is possible and are willing to risk their resources in the pursuit of profit. They're fast moving, willing to try many different strategies to achieve their goals of profits. And they're flexible, willing to change quickly when they get new information.

Entrepreneurs are skilled at selling against the competition by creating perceptions of difference and uniqueness in their products and services. They continually seek out customer needs that the competition is not satisfying and find ways to offer their products and services in such a way that what they're offering is more attractive than anything else available.

Entrepreneurs are a national treasure, and should be protected, nourished, encouraged and rewarded as much as possible. They create all wealth, all jobs, all opportunities, and all prosperity in the nation. They're the most important people in a market economy--and there are never enough of them.

As an entrepreneur, you are extremely important to your world. Your success is vital to the success of the nation. To help you develop a better business, one that contributes to the health of the economy, I'm going to suggest that you take some time to sit down, answer the following questions, and implement the following actions: What opportunities exist today for you to create or bring new products or services to your market that people want, need and are willing to pay for? What are your three best opportunities? 1. Identify the steps you could take immediately to operate your business more efficiently, especially regarding internal operating systems.

2. Tell yourself continually "Failure is not an option." Be willing to move out of your comfort zone, to take risks if necessary to build your business. 3. Use your creativity rather than your money to find new, better, cheaper ways to sell your products or reduce your costs of operation. What could you do immediately in one or both of these areas? 4. Imagine starting over. Is there anything you're doing today that, knowing what you now know, you wouldn't get into or start up again? 5. Imagine reinventing your business. If your business burned to the ground today, and you had to start over, what would you not get into again? What would you do differently?

INVOLVEMENTS
GDP

Agriculture

Industry

Services

GDP - composition by sector: Agriculture: 17.5% Industry: 20% Services: 62.6% (2009)

y y y

Public debt.

60.00% 59.50% 59.00% 58.50% 58.00% 57.50% 57.00% 56.50% 2009 est. 2008 est. Series 1

Public debt: 59.6% of GDP (2009 est.) 57.6% of GDP (2008 est.)

y y

Market value of publicly traded shares

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Jan-07 Jan-08 Jan-09

Series 1

Market value of publicly traded shares: $1.301 trillion (31 December 2009) $645.5 billion (31 December 2008) $1.819 trillion (31 December 2007)

y y y

CONCLUSION
The Indian economy provides a revealing contrast between how individuals react under a government-controlled environment and how they respond to a market-based environment. The evidence presented here suggests that recent market reforms encouraging individual enterprise have led to higher economic growth in that country. The reasoning here is not new, although it is refreshing to discover that this tried-and-true reasoning applies to developing as well as to developed nations. Specifically, reliance upon a free market, with its emphasis upon individual self-interest in survival and wealth accumulation, can yield a wide range of economic benefits. In India those benefits have included, among other things, increased economic growth, reduced inflation, a smaller fiscal deficit, and higher inflows of the foreign capital needed for investment.

We further conclude that India can generate additional economic growth by fostering entrepreneurial activities within its borders, particularly within its burgeoning middle class. Not only has entrepreneurship been found to yield significant economic benefits in a wide variety of nations, but India specifically has reached a point in its development where it can achieve similar results through entrepreneurial efforts. Among other things, India is poised to generate new business start-up s in the high technology area that can help it become a major competitor in the world economy. For example, it has a strong education base suited to entrepreneurial activities, increased inflows of foreign capital aimed at its growing information technology services sector, and a host of successful new business start-up s. To pursue further the entrepreneurial approach to economic growth, India must now provide opportunities for

(1) Education directed specifically at developing entrepreneurial skills, (2) Financing of entrepreneurial efforts, and (3) Networking among potential entrepreneurs and their experienced counterparts. Obviously, the government can play a substantial role in helping to provide thesetypes of opportunities. It can also provide the appropriate tax and regulatory policies and help the citizens of India to understand the link between entrepreneurial efforts and economic prosperity. However, its role overall must be minimized so that the influence of the free market and individual self-interest can be fully realized.

Only time will tell if increased entrepreneurial activities in India will actually yield the economic benefits found in so many other nations of the world. Should India decide to pursue that avenue of economic development, then future research needs to examine the results of India s entrepreneurial programme. Perhaps more important, that research also needs to determine how India s success inentrepreneurial efforts might differ from those pursued in developed nations.