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Chapter-4 Role of Entrepreneur and Entrepreneurial Development
Chapter-4 Role of Entrepreneur and Entrepreneurial Development
Entrepreneur:
Definition:
Is one who has strong desire to start a Business enterprise
Is a person who undertakes a commercial or Productive venture
Is one who
Innovates a venture
Promotes a venture
Initiative
Promoting
Manufacturing
Production of wealth
Distribution of wealth
Entrepreneur Qualities:
An entrepreneur should posses the following qualities to succeed in
business
Firm determination
Fore sightedness
Shrewed thinking
Creativiteness
Business ethics
Clarity of views
Relative approach
Leadership
Tactfulness
Successful Entrepreneurship:
To become a successful Entrepreneur, one should have
Buyers
Consumers
Distributors
Dealers
Retailers
Transporters
Innovative ideas
Time management
Role of an Entrepreneur:
Role In Society:
An entrepreneur as owner of the enterprise, plays a very crucial
role in the development of enterprise as well as society
The role of economic progress of a nation depends upon its rate of
innovation
Hence entrepreneurship talent in the population leads to economic
growth
An entrepreneur contributes to the economic development through
capital formation
Employment generation
Improved productivity
New technologies
New products
New services
Entrepreneur Expectations:
An entrepreneur expects to achieve the following by
starting a business
the way of
Creative thinking
Entrepreneurship Vs Management:
A manager (Technocrat) is one who
Entrepreneurship Vs Management:
Entrepreneurial style
1. Lack of knowledge in the
field of business
Management style
1.Sufficient knowledge in the
relevant field of business
4. Motivated by profits
5. Lack of knowledge
5.Sufficient knowledge
7. Depends on technical
personnel
9. Quality is inconsistent
9.Quality is consistent
3. Personal aspects
1. Financial aspects:
Risks related to finance:
Standing capacity
Achieving targets
Self sufficiency
2. Career aspects:
Risks related to Career:
3. Personal aspects:
Risks related to personal aspects:
Dependency on others
Dynamism
Shrewedness
Self confidence
Independent Thinking
Held on ownership
An industrial unit
Parts
Components
Sub-assembly of parts
Tooling etc.
known demand
Anticipated demand
of one or more large industries.
Tiny Units:
Definition:
following areas:
Employment.
Production.
Exports.
Registrations:
Small scale and ancillary units should seek registration with the
Director of Industries (DIC) of the Concerned state government
Benefits Of Registration
Benefits
Incentives
States / UTs have their own packages of facilities and incentives for
small scale industries, such as.
Tax Subsidies
Types of Registrations:
Registration of S.S.I. is done in two stages:
1. Provisional registration
2. Permanent registration
This is given for the pre-operative periods and enables the units to
obtain,
Working capitals
Tax Subsidies
Promotion
General
Priority sectors
Policies
General schemes
Policy of reservation
Labour policies
Industrial estates
Tiny sectors
Cottage Industries
Village Industries
Handicrafts
Khadi
Handlooms
Equity participation
Venture capital
NSIC Schemes
Testing Center
Training Infrastructure
Growth Center
tiny or
Site Selection
One of the important aspects of project planning is the
Availability of supplies
Availability of raw materials from the source at the shortest distance
Availability of raw material from the existing or future suppliers
Availability of substitute material
Availability of
Electrical power
Fuel
Cost of
Electrical power
Fuel
Local regulations
Labour aspects
Aspects of transportation
selection of
Cultural aspects
Law of taxation
Government laws
Plant Layout
Definition:
Men
Machine
Equipment
Material
Equipment utilization
Minimization of delays
Men
Material
Machines
Provide safety
Avoids hazards
To aim for
Improved morale
worker convenience
Worker satisfaction
Factors affecting:
Types of industry
Types of Product
Heavy or light
Liquid or solid
Large or small
Volume of production
Job production
Batch production
Mass production
Volume of people
Workers
Managers
Method or process
Material handling
Principle of flow
Pleasant
Satisfying
Safer
Principle of flexibility
Minimum cost
Least inconvenience
Cars
Bearings
Fastener
Disadvantages:
Break down of one machine leads to complete stoppage of work
It is difficult to increase production beyond the capacities of the
production lines
All machines in the arrangement cannot be used to their maximum
capacity
Product change cannot be possible
Process defect is difficult to identify hence, rejection rate will be
more
Disadvantages
Handling and back-tracking of materials is too much.
For the same amount of production, process layout needs more
space.
Total production cycle time is more, due to long distances and
waiting.
Production control becomes difficult.
Work in process inventory is large.
Marketing facilities
Technical
Financial
Managerial
Marketing
Infrastructure
Supporting Institutions
Directorate of Industries
Management training
Skill development
Market supports
Plant modernization
Financial assistance
Marketing assistance
Export programmers.
Entrepreneurs
Marketing.
Supply of machinery
Raw materials
Marketing assistance
Industrial estates
Sheds
Internal roads
Power
Water
Financial assistance
Financial assistance and credit facilities assistance to SSI units are
available with the following institutions and banks.
Commercial banks
Investment corporations.
Raw materials
Working capital.
Financial Institutions
1. Small Industries Development Bank Of India (SIDBI)
2. National Small Industries Corporation (NSIC)
3. Industrial Finance Corporation Of India (IFCI)
4. Industrial Credit and Investment Corporation of India (ICICI )
5. National Bank for Agriculture and Rural Development (NABARD)
6. Life Insurance Corporation of India (LIC)
7. Unit Trust of India (UTI)
8. A.P State Financial Corporation (APSFC)
9. Commercial Banks.