ENTREPRENEURSHIP DEVELOPMENT IN INDIA

Christ University, Bangalore

Agenda Meaning of EDP Misconceptions about EDP Objectives of such program Entrepreneurship Cycle Entrepreneurial Discipline Woman Entrepreneurship Factors affecting Woman Entrepreneurship Barriers to it Entrepreneurial environment and its analysis Locational Mobility of Entrepreneurs Christ University, Bangalore

EDP (Entrepreneurship Development Program) EDP means a program designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively Towards this end, it is necessary to promote his understanding of motives, motivation pattern, their impact on behavior and entrepreneurial value A program which seeks to do this can qualify to be called an EDP

Misconceptions about EDP EDP is a catch word But misconceptions about EDP prevail Lack of understanding and clarity has limited its growth EDP hasnt contributed much to the industrial economy of our country yet

Misconceptions about EDP Chandramauli Pathak has listed some of the prevailing common misconceptions about EDP: 1. Join an EDP, all your problems are solved 2. EDP means only training 3. Higher the number, better the EDP 4. EDP success is the sole responsibility of Trainers- Motivators

Objectives of EDP Refer Page 186 and 187 of Vasant Desai Text

Entrepreneurial Development Cycle Refer Fig. 13.1 on Page 185 of Vasant Desai Text Simulatory Support Sustaining

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Entrepreneurial Development Cycle Simulatory 1. Entrepreneurial Education 2. Planned publicity for entrepreneurial opportunities 3. Identification of potential entrepreneurs through scientific methods 4. Motivational training to new entrepreneurs 5. Help and guidance in selecting products and preparing project reports Christ University, Bangalore

Entrepreneurial Development Cycle

6. Making available technoeconomic information and product profits 7. Evolving locally suitable new products and processes 8. Availability of local agencies with trained personnel for entrepreneurial counseling and promotions 9. Creating entrepreneurial forum 10. Recognition of entrepreneurs Christ University, Bangalore

Entrepreneurial Development Cycle Support Registration of unit Arranging finance Providing land, shed, power, water etc. 4. Guidance for selecting and obtaining machinery 5. Supply of scarce raw materials 6. Getting license/ import licenses 7. Providing common facilities 8. Granting tax relief or other subsidies 9. Offering management consultancy 10. Help marketing products 11. 6 Christ University, Bangalore Providing information 1. 2. 3.

Entrepreneurial Development Cycle Sustaining 1. Help modernization 2. Help diversification/ expansion/ substitute production 3. Additional financing for full capacity utilization 4. Deferring repayment/ interest 5. Diagnostic industrial extension/ consultancy source 6. Production units legislation/ policy change 7. Product reservation/ creating new avenues for marketing 8. Quality testing and improvident services, and, 9. Need- based common facilities center

Entrepreneurial Discipline Entrepreneurs who are developed and promoted at social cost have a certain responsibility to the society that promotes and supports them The society expects adequate returns from these people Towards this end, entrepreneurs are expected to follow a certain discipline which is essential for entrepreneurial career This covers subjects like: 1. Repayment behavior- financial management 2. Response to tax and statutory requirement- law and compliances 3. Progressive outlook towards labor- labor management 4. Care for ecology and environment- environment management Issues of EDP- Refer Page 191 of Vasant Desai Text

Christ University, Bangalore

Woman Entrepreneurship The emergence of entrepreneurs in a society depends on the economic, social, religious, cultural and psychological factors prevailing in the society In the advanced countries of the world, there is a phenomenal increase in the number of self- employed women after the World War II

Woman Entrepreneurship in India

Today, we find women in different types of industries, traditional as well as non- traditional, such as engineering, electronics, readymade garments, fabrics, eatables, handicrafts, dollmaking, poultry, plastics, soap, ceramics, printing, toy- making etc. Participation of women as industrial entrepreneurs is comparatively a recent phenomenon in India

Christ University, Bangalore

Women Entrepreneurship in India Majority of the women entrepreneurs in India are engaged in the unorganized sector like agriculture, agro- based industries, handicrafts, handlooms, and cottage- based industries In order to improve the situation, a number of activities such as motivational drive, preparation of information material; conducting training; creation of women industrial estates/ areas/sheds; creation of common marketing exposition centers; training of trainers/ promoters; and use of mass media etc. are required Combined effect of all these is bound to accelerate the process of women entrepreneurship development

Segments of Women Entrepreneurs Four segments of women entrepreneurs exist: 1. Self- help Groups: Those who are well served and mentored by microfinance institutions 2. Grassroots entrepreneurs: Those who are driven by a need to augment the familys finances especially to secure their childrens future- tailors, flower sellers, STD booth owners, pan shops etc. 3. Mid- rung entrepreneurs: They are driven by a need to build reputation, become known, improve quality and satisfy creative instincts. Mostly graduate +, they typically have garment shops, poultry farms, export businesses etc. 4. Upper Crust: Drawn from the topmost social class, very well educated, with businesses like export houses, travel agencies, traders in pharmaceuticals, often adjuncts to their husbands businesses, they aspire for turnovers of more than Rs. 5 crore 1 Christ University, Bangalore

Qualities of Women Entrepreneurs Refer Page 80 of Vasanth Desai Text

Basic Problems of Women Refer Page 81 of Vasanth Desai Text

Types of Sales Organization Structure 3. Functional Sales Organization The principle of specialization is utilized to the full extent in Functional Sales Organization The staff specialist is given line authority to control his or her function throughout the organization Refer Diagram on Page 196 of Cundiff and Still Text

Types of Sales Organization Structure 4. Committee Sales Organization Many firms have a sales training committee comprised of the general sales manager, his or her assistants, the sales training manager etc. It meets periodically to draft training plans and formulate sales training policies

Centralization and Decentralization of Sales Force Management In the centralized sales organization, almost all the activities including sales force management, are administered from a central headquarters The central sales office has full responsibility for recruiting, selecting, training, compensating, supervising, motivating, controlling, and evaluating the sales force In the decentralized organization, all these activities are handled by field sales executives

Centralization and Decentralization of Sales Force Management Advantages of centralization 1. Links selling with sales promotion and advertising 2. Simplifies administrative work 3. Makes it easier to organize territories 4. Aids in the effectiveness of the sales plan 5. Reduces bias in the hiring process

Centralization and Decentralization of Sales Force Management Disadvantages of centralization 1. Assigns decision- making authority to individuals who may be hundreds or thousands of miles away from the action 2. Limits understanding of territorial conditions 3. Reduces time to work closely the salespeople in the field 4. Increases geographical differences in preferences

Centralization and Decentralization of Sales Force Management Advantages of decentralization 1. Increases in- depth coverage of the market, resulting in higher sales 2. Increases control of the market, resulting in increased sales 3. Improves direction of the sales force in creating greater sales 4. Improves customer services, which will lead to more sales 5. Reduces the need for territorial break- in time, as salespeople are from the area 6. Improves salespeoples attitudes because of the reduction in travel time and fewer nights away from home 7. Reduces travel expenses

Centralization and Decentralization of Sales Force Management Disadvantages of de-centralization 1.Increased costs resulting from a duplication of overhead costs at each branch 2.Attempting to follow the plans from the main office creates management problems where geographical differences are important Refer Page 198 of Cundiff Still Text

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