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Entrepreneur & Entrepreneurial development Click to edit Master subtitle style

Prepared by, Kushal Agarwal, Amit Kumar, Gaurav Seth


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Who is an Entrepreneur?
An entrepreneur is a person who starts an

enterprise.

Peter Drucker defines an entrepreneur as

one who always searches for responds to it and exploits opportunity. An entrepreneur Innovation is a specific instrument available to entrepreneur.

a change it as an innovates. of success

According to Schumpeter entrepreneurs are

innovators who use a process of shattering the status quo of the existing products and 4/28/12

So we can say that an ENTREPRENEUR..


Is a person who develops and owns his own

enterprise

Is a moderate risk taker and works under

uncertainty for achieving the goal.


Is innovative Reflects strong urge to be independent. Persistently tries to do something better. Dissatisfied with routine activities.
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So we can say that an ENTREPRENEUR Cont..


Prepared to withstand the hard life. Determined but patient Exhibits sense of leadership Also exhibits sense of competitiveness Takes personals responsibility Is Oriented towards the future. Tends to persist in the face to adversity Converts a situation into opportunity.
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What Makes Someone an Entrepreneur?


Creativity Dedication Determination Flexibility Leadership Passion Self-confidence Smartness
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Views on making of an Entrepreneur


Economists view Sociologists view Psychologists view Managers view

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Economists view
The economists view him as a fourth factor of

production along with land labor and capital.

1. Land. 2. Labor. 3. Capital. 4. Entrepreneurship.

Economic incentives are the main motivators

for entrepreneurial activities.


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Economists view Cont..


Entrepreneurship and economic growth take

place when the economic conditions are favorable.

Mainstream economists view the supply of

entrepreneurship as highly elastic.

J.B. Say has stated that it is function of the

entrepreneur to rationally combined the forces of production into a new producing 4/28/12 organization

Economists view Cont..


SCHUMPETERS entrepreneur possess three

qualities:

An intuitional capacity to see things in a way

which afterwards proves to be true;


A kind of effort of will and mind to overcome

fixed habits of thinking; and

The capacity to overcome social opposition

against doing something new.

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Sociologists view
The sociologists feel that certain communities

and cultures promote entrepreneurship like for example in India we say that Gujaratis and Sindhis are very enterprising. focused on theories that considered the role of social norms and legitimacy as well as social mobility in understanding the supply of entrepreneurship in a society. reassemble from what is available, very

Sociologists

According to Peter Marris, to assemble or


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Sociologists view Cont..


According to the sociologists the presence or absence of certain social baits motivate or demotivate individuals from taking up entrepreneurial ventures. some of the important ones are:
Family background Religious background The age of entry to entrepreneurship Occupational background
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Psychologists view
The entrepreneur
wants to prove himself/herself more than

others

has the pressure to reach something wants to be in control is convinced he/she can do it better is not afraid of taking risks

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Psychologists view Cont ..


Psychologists focused on such factors as the

achievement-orientation and statusorientation of individuals within a population to consider their likelihood of engaging in entrepreneurial behavior.

Psychologists emphasize that

entrepreneurship is not likely to emerge or develop when a society has a sufficient supply of individuals possessing certain psychological characteristics such as adventures nature, ability to take calculated risk, communication 4/28/12 skills, leadership qualities, hardworking by

Psychologists view Cont ..


Entrepreneurship gets a boost when society

has sufficient supply of individuals with necessary psychological characteristics

The psychological characteristics include need

for high achievement, a vision or foresight, ability to face opposition

These characteristics are formed during the

individuals upbringing which stress on standards of excellence, self reliance and low father dominance

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Psychologists view Cont ..


According to McClelland it is high need for

achievement which drives people towards entrepreneurial activities. an entrepreneur as a change-agent.

Among psychologists, Frank Young describes K. L. Sharma maintains that entrepreneurs are

men with qualities of leadership in solving persistent professional problems; but those persons likewise demonstrate eagerness to seize unusual opportunities.
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Managers view
Managers feel entrepreneurs are

innovators who come up with new ideas for products, markets or techniques.
According to Peter Kilby an Entrepreneur is

one who performs the following functions:


Perception of market opportunities Gaining command over scarce resources Purchasing inputs Marketing of product & responding to

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ROLE OF ENTREPRENEURS IN SOCIO-ECONOMIC DEVELOPMENT OF A COUNTRY

Entrepreneurship

promotes capital mobilizing the idle saving of the public.

formation

by

It provides immediate large-scale employment. Thus, it

helps reduce the unemployment problem in the country, i.e., the root of all socio-economic problems.
It promotes balanced regional development. It helps reduce the concentration of economic power. It stimulates the equitable redistribution of wealth, income

and even political power in the interest of the country.


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ROLE OF ENTREPRENEURS IN SOCIO-ECONOMIC DEVELOPMENT OF A COUNTRY Cont..

It encourages effective resource mobilization of capital

and skill which might otherwise remain unutilized and idle.


It also induces backward and forward linkages which

stimulate the process of economic development in the country.


Last but no means the least, it also promotes country's

export trade i.e., an important ingredient to economic development.


Thus it is dear that entrepreneurship serves as a catalyst of
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economic development. On the whole, the role of entrepreneur ship in economic development of a country

presented into two sections viz..

Growth of Entrepreneurship In The growth of entrepreneurship in India can be India


Entrepreneurship during Pre-Independence Entrepreneurship during Post-Independence

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Before India came into contact with west, Indian

Entrepreneurship during PreIndependence

towns were mostly religious and aloof from the general life of country.

Organized industrial activity was observable

among the India artisans in a few recognizable products in the cities of Banaras, Allahabad, Gaya, Puri & Mirzapur. prestigious Indian handicraft industry, which was basically a cottage and small sector, declined at the end of the 18th century for various reasons.
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Much

Some scholars hold the view that manufacturing

.Entrepreneurship during Pre-Independence.. The actual emergence of manufacturing

entrepreneurship can be noticed in the second half of the 19th century. Prior to 1850, some stay failure attempts were, indeed , made by the Europeans to setup factories in India. India began after the First World War. Government agreed to 'discriminating' protection to certain industries, even requiring that companies receiving its benefits should be registered in India with rupee capital and have a proportion of their directors as Indians.
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The second wave of entrepreneurial growth in

..Entrepreneurship during PreIndependence


Reasons for slow growth of entrepreneurship in During British period in India :..
Not given proper protection Discouragement by British Government High railway freight charges Exorbitant tariffs Constantly harassed for getting licenses No facilities for technical education Entrepreneurs faced fierce competition from abroad Lack of transportation and communication facilities
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ENTERPRENEURSHIP DURING POST- INDEPENDENCE


Government

came forward with the first Industrial Policy, 1948 which was revised from time to time. her industrial resolutions:-

Government took three important measures in

(i) to maintain a proper distribution of economic power between private and public sector; (ii) to encourage the tempo of industrialization by spreading entrepreneurship from the existing centers to other cities, towns and villages, and
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.ENTERPRENEURSHIP DURING POST INDEPENDENCE.. Several institutions like Directorate of Industries,


Financial Corporations, Small-Scale Industries Corporations and Small Industries Service Institute were also established by the Government .

Small-scale units emerged very rapidly in India

witnessing a tremendous increase in their number from 121,619 in 1966 to 190,727 in 1970 registering an increase of 17,000 units per year during the period under reference. to 1850, the manufacturing entrepreneurship was negligible lying dormant in 4/28/12 artisans.

Prior

..ENTERPRENEURSHIP DURING POST Even the small entrepreneurship continued INDEPENDENCE communities to be dominated by business
though at some places new groups of entrepreneurs too emerged.
some entrepreneurs grew from small to

medium-scale and from medium to largescale manufacturing units during the period.
The family entrepreneurship units like Tata,

Birla, Mafatlal, Dalmia, Kirloskar and others 4/28/12 grew beyond the normally expected size

From 1980 to 1991, the average

ENTERPRENEURSHIP DURING POSTINDEPENDENCE.

number of companies formed each year was 14,379, while from 1992 to 2006, the average number of companies formed per year was 33,835.
According

to the paper, liberalisation itself kick-started 4/28/12

CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA to the Global Entrepreneurship Monitor According


According to the NSS 62nd round, in rural India,

(2007) report, Indias High-Growth Expectation EarlyStage Entrepreneurship (HEA) rate is only one-fifth of that of China. almost 50 per cent of all workers are self-employed 57 per cent among males and nearly 62 per cent among females, while the corresponding figures in urban India are 42 for males and 44 for females.

According to the 5th Economic Census conducted by

the Central Statistical Organisation (CSO), there are 41.83 million establishments in the country engaged in different economic activities other than crop 4/28/12

Issues in the Current Framework


Finance:

Access to credit is considered to be one of the key problems faced by entrepreneurs .

Regulation and governance:

An entrepreneur has to register ones business, obtain government clearances and 4/28/12

Issues in the Current Framework ..

Manpower:

Availability of skilled manpower is another crucial issue for entrepreneurs.

- In the Global Competitiveness Index, India ranks 102nd in hiring and f ring practices and 85th in 4/28/12

SCOPE OF ENTREPRENEURSHIP DEVELOPMENT IN quality people INDIA In India there is a dearth of


in industry, which demands high level of entrepreneurship development programme through out the country for the growth of Indian economy.
The

scope development in tremendous.

of entrepreneurship country like India is

the current generations of youth do not

have hang-ups about the previous legacy 4/28/12 and are willing to experiment. These are

Queries
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