Emergence of Entrepreneur Class Who is Our Entrepreneurial Class?

Tata, Ambani, Singhania, Dalmia, Wadias, Godrej etc A class bereft of divisions Haldirams, Aggarwals etc

Origin of Entrepreneurial Class

Founders of early industrial establishments in England, Germany and France Were men with mechanical rather than commercial/financial skills whose innovations were in the field of technology Asians lacked aptitude/attitude, which prevented them from becoming entrepreneurs even though there was no lack of capital and raw material were involved in trading activities rather than innovative/creative activities

Evolution of Entrepreneurial Class

19th century entrepreneurs : - bore the risks of future uncertainity of profits in new ventures - Different from capital suppliers

20th century entrepreneurs: - Not only took a risk of creating new venture but also innovated with products, technologies, markets etc - Different from venture capitalists
Intrapreneurs or corporate entrepreneurs

Indian Entrepreneurship
Started in colonial rule with inspiration for starting ones own borrowed from foreigners Truly started flourishing in late 19th century, got a fillip from East India companys advent in India through export of raw materials & import of finished goods Swadeshi movements contribution Government protection post the first world war

Indian Entrepreneurship Post Independence Scenario

Gained momentum after the launch of economic planning in 1952 Led to faced paced creation in small units and movement from one segment to next (Eg- Small to Medium)

Entrepreneurship in India - Post Independence Scenario

Favourable industrial policy Dissemination of entrepreneurial acumen and knowhow

Capital subsidy (Sidbi, SFC), technical knowhow, market infrastructure encouraged small scale industries
Universities & colleges have introduced courses. Govt encouraging EDPs for young entrepreneurs

Factors Affecting Growth of Entrepreneurship

Causes for slow growth of entrepreneurship Collective vs individualistic society Social conditioning: Stability over risk Availability of raw materials Skilled labour/manpower Developed capital market/ shortage of funds Technical Knowhow/ old techniques of production Marketing challenges

Factors Affecting Growth of Entrepreneurship

Factors driving growth of entrepreneurship Independent way of life Existing opportunities/gaps Achievement orientation/risk taking ability Disruption/crisis in economy leading to layoff/insecurity Inherited business Economic policy of the govt Environmental factors : Availability of FOP, easy accessibility of customers and suppliers, economic and political stability of a country

Entrepreneurship and Social factors in India

Family Background Social Status

Caste and Religion

Social Mobility

Entrepreneurship and Economic Factors in India

Govts economic policy - Eg- Reservation of certain items for small scale industries, concessions in form of excise duty, preference in procurement, common testing facilities, concessional finance through SIDBI etc Institutional Finance Industrial parks/SEZs Availability of Raw Materials : High Price & Inferior quality

Entrepreneurship and Economic Factors in India

Availability of technical know how/machinery : Role of NSIC Marketing Facilities : Quality controls by govt, incentives for exports, trade fairs