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Entrepreneurship Development

Entrepreneurship Development

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Published by: Shadab Haider on Dec 29, 2010
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– Ashok K. Sinha1


Founder Executive Director of the Institute of Entrepreneurship Development, Bihar and Ex-Managing Director of the Bihar Industrial and Technical Consultancy Organization. 1

Economy begins with the formation of social capital and culminates in the remoleculization of culture. The formation of social capital begins with people settling at a place for betterment and crystalises in the form of moral economy. The crystalization of moral economy starts taking shapes with the generation of surplus and leads to the formation of institutions like family, community etc. And the generation of surplus gathers momentum with the valuable utilization of land, labour and capital – the three basic factors of production, and burgeons into economic progress. Earlier, the social scientists explained the emergence and entourage of economy in these terms. Subsequently, however, it was realized that each of the three factors of production had a concomitant of its own. Land included materials; labour entailed a specific set-up to hire and engage it; and capital was always owned by some one and required that one’s willingness to risk its investment. So, out of the three factors of production – land, labor and capital – emerged an another set of three inherent factors – material, specific set-up, and investor. With this indepth understanding, economy came to be take as an interplay of these six factors of production – land, labour, capital, material, organization and investor and was noted as an exercise undertaken largely for the creation of wealth. After the industrial revolution, slowly but surely, there emerged another factor which significantly changed the interplay of the factors of production and gave it a new dimension. That factor came to be known as technology which heightened and chastened the pitch of the interplay of the factors and, transformed the very process, of production. From generation of surplus to the creation of wealth, economy now became the begetter of power.


The labour factor rolls round the production course like land. conclude and act in a particular manner. entrepreneurship could be displayed in whichever area of activity the person was engaged. telescoped in larger interests. Nor was it bound to any caste or creed or clime or class or age or gender. capital. think and act in a particular manner. the manager of all other factors to cohere. came to be known as enterprise. therefore. think and act in that manner the person had to have a specific set and combination of competencies. What is Entrepreneurship? An entrepreneur in order to perform multifarious roles involved in the setting up of an enterprise. This tugging however between the two had been largely as partakers of the surplus generated or the wealth created. conceptualize. contribute. had to be a very special person. there had been no such conflict between the two. labour. It got manifested in one’s self-belief. It was the investor factor which alone emerged as the prime mover. of all the seven factors of production – land. In order to feel. It made one to hold and uphold set goals. material. convert and yield production. the prime mover . the organiser. Therefore. face challenges and gather ways and means to achieve them.creator was the one who was called entrepreneur. however. An entrepreneur.organiser harmoniser . It was not limited to any particular area of activity. 3 . the binder. set-up and investor – only two of them labour & investor – were animates and the rest five. fulfill and attain a demonstrative impact in all walks of life. in a manner that was innovative and socially valuable. This combination could vary in degree but not in kind. This combination of competencies was called entrepreneurship. It was embodied in the unified effort of a person to achieve. material. It made one to act and react in self-interest. It was source and resource for undertaking activities fraught with risks and fringed with potential gains. And the set-up created to organize manage and run remaining five factors – land. technology and set-up.manager .However. catalyse harmonize manage and control other factors in becoming productive. was a person with such a combination of certain competencies which made him feel. relevant and satisfying. in the framework of economy. excel. As factors of production. self-reliance and an urge for self-fulfilment in the face of things as they were. self-confidence. technology and capital – to yield required production. material. labour. inanimate. It was the investor who was seen bringing together. the tugging of focus started has remained been between the labour (communism) and the investor (capitalism). perceive. Being an integral part of one’s personality. This investor. capital. special in terms of abilities to feel. technology.

handling materials. adventures. did in no way suggested that the persons doing such jobs in that particular manner were by birth characterized to do those jobs in that manner or belonged to any particular class or creed. They were entreprendeur because of the nature of “activities” they chose to engage themselves in. it was their loss.Historical View Points The word “entrepreneurship” is derived from French “entreprendre” which means ‘to undertake’ and it was originally used in the middle ages in the sense of ‘a person who is active. All these put together suggested entrepreneurship to be the crystalization of a certain set of characteristics and competencies that could manifest themselves in a particular-way of doing an activity which could be in any sphere but which certainly contained some amount of uncertainty about the endresult. Economics View Points 4 . If they failed to collect enough to match the cost of their licenses. Early references to entreprendeur in the 14th century spoke about tax contractors who paid a fixed sum of money to government for the license to collect taxes in their specific region. was used to denote a particular kind of job which was done in a particular manner by taking risk. who gets things done’ and subsequently used in reference to “contractors” who bore the risks sometimes as soldiers of fortune. taking path-breaking initiatives etc. however. merchants and also funeral directors. creating structures. they made profits and kept the excess. After 1700. involving profit/loss. ‘entreprendeur’ was frequently used by the French for the contractors who built Government roads. They. harbours and fortifications. providing service. Tax entrependeurs. bridges. men engaged in leading military expeditions were referred to as entrependeurs. If they collected more than the sum paid for their licenses. thus. fulfilling perceived needs. By the early 16th century. thus. bore the risk of collecting individual taxes. buildiers. Entrepreneurship.

de Delidor who defined entrepreneurship as buying labour and materials at uncertain prices and selling the resultant output at contract prices. by the end of 18th century. labour and capital. with the elaboration by the British economist John Stuart Mill on the neccessity of entrepreneurship in private enterprise. 1941) “entrepreneurship comprises any purposeful activity that initiate. Later on. it was Richard Cantillon (1680-1734) who. the other three being land. In 1884.1 With the advent of 20th century. maintain or develop a profit oriented business in interaction with the internal situation of business or with the economic. forming an organization. political and social circumstances surrounding the business. An integrated view was first advocated by Joseph Schumpeter (1883-1950) who considered entrepreneurship as “the catalyst that disrupted the stationary circular flow of the economy and thereby initiated and sustained the process of development. entrepreneurship had grown from denoting contractual to trading to organization building to creating new economic enterprise related activities. Adam Smith spoke of the “enterpriser” in his The Wealth of Nations (1776) as an individual who undertook the formation of an organization for commercial purposes.” For Harvard School (Cole. and having “art and skills” of creating new economic enterprises. Thus. For the next hundred years or so.” 5 .” He synthesized different notions of entrepreneurship by including “the elements of risk taking. gave the concept of entrepreneurship some analytical treatment and related it to the economic function of taking decisions about obtaining and using resources at a risk. Rather. However. a flimflam artist on the fringe of legitimate business”. the decision makers. French economist Jean Baptiste Say in his Traite d’ ‘economic politique (1803) described an entrepreneur as one who had art and skills of creating new economic enterprises thereby combining the “economic risk taker” of Cantallion and the “industrial manager” of Adam Smith. the term “entrepreneur” became the “fourth factor” of the economic endeavour. the concept of entrepreneurship started receiving wide and renewed interest. superintendence and coordination with the ability to innovate. in between. the role of adventurer or risk-taking entrepreneur remained untouched. “captain of industry to an elusive character who garnered profit at the expense of others. entrepreneurship was finally “wedded” to enterprise building. for the first time. taking decisions.The earliest attempt to invest the concept of entrepreneurship with some economic content could be traced back to the works of an 18 th century French writer Bernard F. The wheel had come full circle. It consisted of embracing uncertainties. using resources at a risk. the connotation of an entrepreneur changed from the risk takers.

Besides. by the middle of 20th century. entrepreneurship was an integral of undertaking a particular kind of activity in a particular manner with a specific objective. 6 . act gainfully. from historical. Entrepreneurship got established as that critical factor of the economic endeavour with which one could achieve economic wonders and without which even the best and the most of the other three factors of production could economically achieve almost nothing. the education level. according to major theories and expositions. Psychological View Points Psychologically. Stressing the importance of socio-cultural milieu in the evolution of entrepreneurship some scholars delineated certain social characteristics that distinguished the entrepreneurs from the commoners. Education and child-rearing practices emphasing such values made larger and significant contributions in creating a foundation for a strong n-Ach society. greater the development of n-Ach during early socialization of an individual the more likely that entrepreneurship would vigorously manifest itself in economic growth. they believed that the entrepreneurs were specifically diligent. consisted of capabilities and competencies to take risks. economics. entrepreneurship largely depended upon the childhood family background. personal values and motivation. build organizations. of courage to take calculated risks. organize. prudent and sober. This achievement motivation could be inculcated through training in self-reliance. Socio-Cultural View Points The beginning of 20th century also placed entrepreneurship in the socio-cultural and psychological perspectives. innovate to achieve and keep the process of development moving through consistently renewing their need for achievement. What Belidor started in the 18th century by investing the concept of entrepreneurship with some economic content came to be established by the middle of 20th century as the be-all and endall of economic growth and developmental initiatives. set-up and manage enterprises. make decisions. thrifty.Thus. entrepreneurship. strive for excellence. rewarding hard work. persistence in goal achievement and creating interest in excellence. socio-cultural and psychological points of view. coordinate and innovate and initiate activities to keep the process of economic growth and development in motion. Conclusion In fine. set goals. take decisions. early urban environment and a relatively high social standing. These included better education. from the psychological point of view. entrepreneurship was seen as immanating from the need for achievement (n-Ach). Thus.

It is the spirit of entrepreneurship that took him to the moon and is urging him to land on Mars. an enterprise. the other factors of production – a perspective to be productive and purposeful and. that made man paragon of all animals and protagonist in the struggle for existence. is born with that entrepreneurial spirit. hard work. striving for excellence.problem solving skill. Entrepreneurship. but entrepreneurship as a spirit is inherently rooted in the human nature. an entrepreur. Entrepreneurship Development Entrepreneurship as a concept may have been consolidated and clarified in the 20th century. recharged motivation with an unwavering set of personal values. his risk taking ability. problem solving skill. how can human beings’ march from being Neanderthal to Nuclear man be explained? It is the spirit of entrepreneurship. 7 . Otherwise. continued education. what kind of education one is given and what kind of company one keeps. irrespective of caste. daring challenges. All are born with that. race or gender. What makes the difference is what kind of bringing up one receives. became a catalyzing factor in all economic activities and gave. who like a colossus. on the one hand. within the paradigms of production and distribution and. creed. thus. bestrode the economic world. Every one. on the other.

so that the relative standing of a child within a group of peers is not likely to change drastically in subsequent years. number.. categorical imperatives. which is instrumental in developing a child’s IQ and conscience in the form of what Immaniual Kant said. it is the kind of companionship one keeps that conditions the growth and development of an individual. not relative. Bringing up..”2 Learning of ideas and attainment of understanding that is.”1 In this ever-widening gyre of life span. whether the spirit of entrepreneurship gets smirched by our bringing-up. usually fall into two classes: 8 .specific. measurements at age six or seven have stabilized. at which point slow but steadily decline sets in………”1 The mental abilities include verbal comprehension. from undifferentiated and global capacities and activities to ever more finely differentiated and specialized ones. his behaviour becomes successively more differentiated. stabilizes around the age of seven. Chance because what kind of family one is born in and what kind of education one gets are not in one’s hand. The Entrepreneurial Personality The three determining factors – bringing up. from few-general to many . mental ability grows rapidly from birth through puberty. Q. I. The trend is from homogeneity to heterogeneity. test performance. education and companionship – become simultaneously operative right from one’s birth but their terminal points are more or less well demarcated. education (learning + understanding) stabilizes around 14 to 16 years of age: In terms of absolute. “Normal adult human behaviour develops only through the stimulation of other people. And choice because what kind of companions one has is largely in one’s control. word fluency and perceptual speed.“As the child grows older. spatial perception. somewhat more slowly from then until the early twenties. from the age of 16 years or so till death. And.. education or companionship or remains afloat at the top is a matter of chance as well as choice. memory. “While tests applied during infancy are not very reliable predicators of how intelligent the child and the adult will be.” “The people and groups that provide the stimulation and contact necessary for social development . reasoning.

It required planned interventions at the macro as well as micro level.”2 These three phases of one’s mental and behavioural growth and development have been very succinctly termed in Indian Philosophy as Sanskar. gets ample opportunity to fiddle with coins and currencies and therefore. And second. each one’s choice of companionship would be different due to the differences in early socialization and education both independently and put together. plan. But entrepreneurship development of the Shiksha and Sanskar kind is strenuous and deliberate. peers such as playmates or a circle of friends. And. his attitude to money will be different when he grows from. Therefore. And. it naturally has great influence. and those in positions of equality with him – age. As such. Although modern social and psychological thinkers have their reservations about the connotations of the three terms. a businessman’s child. and the high degree of mobility and social fluidity. Sanskar tinctures and condition Shiksha and they together conditions Sangati which in turn dilutes or heightens the potentiality of both Shiksha and Sanskar. to take initiative for entrepreneurship development some source or set-up has to be created to formulate. First. implement and regulate initiatives. Mukesh and Anil Ambani had to be entrepreneurs. Since the family is the socializing agent during the critical first years of life. the peer group is perhaps of growing importance in modern urban life. For example. the rapidity of social change that tend to divide the generations. inconsistency among them makes one unpredictable and incoherent. The correlations among Sanskar (IQ. This has to be done at the macro level. The best stories heard in mother’s lap may generate nAch in a child but cannot develop business sense. say. right from birth.i) ii) Those people with authority over the individual. a service-class person’s child who hardly gets any chance to handle money and that too without repeated caution to be careful. It is more or less generic. Right from their birth they received the required inputs. + conscience). when both the children would go to school each one’s Shiksha (leaning + understanding) would be different even if the inputs would be the same. such as parents and teachers. Entrepreneurship development of the Sanskar and Shiksha kind happens on its own. But because of the increased specialization of the functions of the family. A businessman’s child automatically receives the early socialization of the most conducive kind which helps in the blossoming of the business sense in him for which the service-class persons’ child may have to have very large doses of orientation and training. for denotation sake they may safely be used to explain the process of growth and development. Shiksha and Sangati. Shiksha (learning + understanding) are highly intricate and inter-twined. to provide inputs for entrepreneurship 9 . the compatibility among the three integrates one’s personality and behaviour pattern.

the micro level exercise. on the one hand. full economic exploitation of opportunity depends upon the strength of the entrepreneurial impulses in society. In this case. need not be embodied in a physical person and certainly not in a particular individual. private entrepreneurship are able to provide the necessary capital and no radical ideology motivates either the state or the entrepreneur (UK). The initiatives for entrepreneurship development taken at the macro level depend and vary with the socio-economic development level a nation has attained. at the macro level is to promote and precipitate economic evolution for which the human factor has to be given positive strokes to enable and achieve creative response to the environment and get engaged in the process of innovation. The macro level exercise. For instance. according to Schumpeter. In order to have more and more of entrepreneurial impulses. it is the Department if Agriculture that acted as an entrepreneur. then. on the other. clime to clime and people to people. Thus. more or less. as required to be in consonance with culture. this has become of major importance: aptitudes that no single individual combines can be built into a corporate personality”. entrepreneurship and ideology in three types or stages of development: “In advanced countries. Needless to say. the entrepreneurship development initiatives are taken at the macro level. With the development of large corporations. “Every social environment has its own ways of filling the entrepreneurial function. to enable and achieve creative response to the environment. On the other hand. in spite of that.1 Alexander Gerschenkron in his research2 into the process of development of relatively backward states in the 19th century grouped countries with respect to capital supply. Again. and by the Department’s success in teaching these methods.development at the ground level packages in the form of Entrepreneurship Development Progremme (EDP) have to be created and inputs administered. This “entrepreneurial function. In a relatively backward country (France and Germany) banks provide both 10 . The inputs for entrepreneurship development provided at the micro level are required to be adjusted to suit the social background and gender of the target groups. the pace and pattern of growth are conditioned by the opportunities offered by the environment like natural resources and other historical factors. the entrepreneurial function may and often is filled cooperatively. the practice of farmers in the USA has been revolutionized again and again by the introduction of methods worked out in the Department of Agriculture. target groups. tend to vary from time to time. can be generalized and structured as the socioeconomic development process is similar if not the same everywhere. The entrepreneurship development. But. societies. entrepreneurship development initiatives are subject to socioeconomic level of the state. and socio-cultural level of the people.

Marxism)”. the environment is charged with hopes and expectations. In an under-developed country the state has to perform entrepreneurial function. the economic opportunities. the state not only puts economic evolution in motion but also provides a direction to it. at the macro level. This entrepreneurship development through institutions is moderate and classified. In a developing country the social structure is more or less formed. industrialization opportunities get missed. unformed and undefined. This entrepreneurship is integrated and limited. At this stage the state through specialized institutions perform the task of initiating entrepreneurship development and give momentum to the economy in motion. a state alone can perceive opportunities and have “the energy and will power to innovate in the face of resistance which all social environments offer to change”. the economy is in momentum. the Indian Government assumed the entrepreneurial role and responding to the environment in the face of all challenges. if the state does not actively play a real entrepreneurial role. the direction is a matter of choice. the government passed on the entrepreneurial role to specialized institutions 11 . Thus. For. By performing this entrepreneurial function. At this stage of a nation’s growth the market takes over the charge of initiating entrepreneurship development and puts the economy in an orbit of its own. the policy statements . the policy has achieved liberation. After 1960. This entrepreneurship development through market is liberal and localized. The Indian scenario After independence in 1947. Therefore.capital and entrepreneurial guidance and a radical ideology (St. In a still more backward country (Hungary and Tsarist Russia) the state provides capital and entrepreneurial guidance and the motivating ideology is still more radical (surprisingly. the direction have been given as such institutions would have consequently been formed.1 In the process of describing the three sources of initiatives at the macro level Gerschenkron has culled out another historical fact which is.all are in a state of flux. in an under-developed stage in a country the social structure. the initiative for developing entrepreneurship depends upon the economic level of a nation. the policy statements have been made. the environment. the economy is in motion. In a developed country the social structure is fully formed. that in a backward country. promoted the great public sector organizations that still are epitomes of entrepreneurship. the environment is charged with achievements and aspirations. Simonian ideology and nationalism) is a motivating factor.

”4 Entrepreneurship development at the macro level. as stated earlier. The inputs are provided to enable individuals to creatively respond to his environment by bringing about. the entrepreneurial guidance and the technical and financial support. But to adapt this technology to the needs of development requires entrepreneurial decision. markets. etc. Professor David C. with the advent of liberalization in 19901991 the mantle of entrepreneurship development has been take over by the market. products relevant for the development of the country. At the micro level. After that. after years of careful study and research discovered “the exact type of motivation that makes a better entrepreneur – the man who starts a business”. McClelland of Harvard’s Department of Social Relations. however. the Industrial Credit and Investment Corporation of India (ICIC). they were in the three areas that constitute any process of innovation: the individual. the Industrial Finance Corporation of India (IFCI) and others. “The developing countries at present have an enormous opportunity in their ability to borrow already well-developed technology.like the Industrial Development Bank of India (IDBI). he’s thinking all the time about doing 12 . It develops “local talents” to master technology. Individually. methods of production. being conditioned by the level of socio-economic development a nation has achieved is. At the micro level. Such adaptation is not possible without complete mastery………And such mastery can come only by developing local talent in the field”. development of new commodities. as chance would have it. conquest of new markets. in his own humble way. very simply.3 Entrepreneurship development at the micro level does that. changes in production techniques. it requires a number of factors to combine and coalesce to produce results. “improvements in productive commercial methods.” and innovate to add on to the process of economic evolution.1 “That man (entrepreneur) has a particular thought pattern. These specialized institutions played their entrepreneurial role vigorously till 1985-90. entrepreneurship development interventions are directed to groom more and more first generation entrepreneurs through education and training. In India it happened in 1960 when three independent developments took place and. in one of the villages of Andhra Pradesh. to perceive opportunities and have “the energy and will power to innovate in the face of resistance which all social environments offer to change. more or less structured.

Almost around the sametime when SIET was formulating its package of inputs. the Small Industries Extension Training Institute (SIET). and second. propounded that first. In order to break the stalemate. McClelland’s identification of basic entrepreneurial competencies. can be instilled with the spirit of entrepreneurship”. Hyderabad. a decision was taken to make technical and financial support available to capable persons on encouraging terms. The SIET package constituted an instrument to provide entrepreneurial guidance and direction to those aspiring to develop entrepreneurship. McCleland’s findings. that such individuals having desire to be on their own could be developed. improving his performance. SIET being a government organization. McClelland further added that it was possible to increase the motivational level of the people and turn underachievers into achievers. a notoriously lethargic group. those motivation and aptitudes could be raised to the entrepreneurial level by administering certain inputs. Taking a lead from Prof. The institutions were getting disturbed by the fact that the same faces appeared again and again to seek and avail the technical and financial support for setting up enterprises and took resort to manipulations. opened up new vistas for the economic development of undeveloped and developing countries. McClelland which he demonstrated with considerable success in India as well as abroad. as entrepreneurs. But the problem was how and where to find those ‘capable’ persons? How to assess them as ‘capable’? After much of deliberation and discussion it was decided that a technocrat at middle management 13 . its package was an indirect official acceptance of the need for such a guidance and direction to propagate entrepreneurship. encouraging new people seemed to be the only answer. Prof.something better. to a certain extent.3 The theories of Prof. on the other. By identifying. a peculiar uneasiness was wreathing in the corridors of the technical and financial support institutions in Gujarat. and his formulation of inputs to invigorate them. Thus. training and providing support to the potential local individuals a nation could build its own pool of entrepreneurs to usher in the needed economic evolution. second. And. But in SIET package the stress was laid more on entrepreneurship in itself rather than entrepreneurship in relation to enterprise.2 Prof. “Even Indian businessman. It was basically personality oriented rather than project-oriented package of inputs. persons having certain level of motivation (n-Ach) and other aptitudes succeeded as entrepreneurs. that some people wanted to be on their own but due to lack of knowledge and/or confidence did not venture in that direction and. So. on the one hand. SIET worked on two basic assumptions first. He’s thinking in terms of constantly improving his own performance”. designed an integrated package of training inputs for developing the entrepreneurial capabilities of those who desired.

second. therefore. in relation to the project. the technical competence of the person being groomed as entrepreneur. the economic viability of the project and. A consensus. Thus. an announcement to that effect was made which brought about tremendous response. again was reached that one who declared that one was not happy with one’s boss/job would be selected for training and financial support subject to the viability of one’s project and the quality and quantum of one’s technical education and experience in relation to the project proposed. whom to select? And on what basis? There was no scientifically validated selection tools and techniques available. But the next problem faced was. 14 . The person must also have a viable project idea which would be denotive of the extent to which his project ideas were realistic. In the formulation and promotion of the programme package for entrepreneurship development the financial institutions and Banks played a pivotal role.level having work experience of over a decade or so in a large industrial unit would be a safe bet. Because of the focus on these two aspects of enterprise building the Gujarat model of entrepreneurship development programme proved to be replicable and effective in developing entrepreneurship suited to the socio-cultural and economic environment of the varying regions. from the very beginning the Gujarat experiment stressed on two aspects: first. With these two pre-requistes the Gujarat programme for entrepreneurship development focussed on inputs in two areas – market survey and preparation of the project report by the entrepreneur himself so that he may have the first hand feel of the market wherein he was to operate and get on-the-job training in the handling of the very project/service he had chosen. They conceived and set-up specialized organizations like the state-level Technical Consultancy Organizations and the State Financial Corporations (SFC) to make available technical & financial support and Entrepreneurship Development Institutes to provide motivational and training inputs to the aspiring individuals and help develop entrepreneurship to operate at micro-level of economic evolution. So. But experience and knowledge alone were not indicative of one being entrepreneurial.

etc. But ‘economic evolution takes place through sectional or sectoral changes rather than through social aggregates”. “Entrepreneurial activity and innovations form the very cornerstone of Schumpeter’s theory of economic development……. changes in production techniques. 1955)” that. conquest of new markets.Chapter-4 Why Entrepreneurship Development? “By the mid-1950s.” 15 . no evolution could take place”. the supply of entrepreneurial capabilities had come to be recognized as one of the critical factors in economic development (United Nations. development of new commodities. And the economic evolution gets further evolved by the introduction of new innovations – improvements in productive and commercial methods. And this process of innovation was result of the creative response of entrepreneurs to their environment. McCleland could be sufficiently had only in a society with a generally high level of n-Ach. He emphasises that the carrying out of innovations is a function sui generis and that function is performed by the entrepreneur. according to Prof. “without this creative response by man to his environment.

entrepreneurship alone maintains the momentum of economy. 16 . Both at the macro and the micro level the adjustments required in the entrepreneurial role play. creating wealth and above all serving social purpose. as the entrepreneurial role-play shifts from the government to institutions to market. As such when the economic evolution is at the people’s level professional as well as academic institutions have to necessarily promote entrepreneurship and motivate their alumni to be entrepreneurial rather than employment seekers. he attempts to achieve collectively which is the first step towards the formation of social capital and attaining the goal of a perfect society. need to achieve. This could be embodied in the state as an institution. in turn. And due to its very proximity to people entrepreneurship lies in serving the interests of the people in more than one ways – empowering human resource.striving to attain the goal of a perfect society. Besides. His personality is not biological. but it is the liberated entrepreneurship at the market level which alone plays the protagonist in the evolution of economy. becomes prime need for keeping economic evolution in motion. enriching social capital. Limited entrepreneurship at the state level is enough to set the economy in motion. This shift and spread is inevitable because the economic growth and development brings about corresponding changes in the social structure which. therefore. Thus. Otherwise. perhaps. And therefore. desire to excel. The formation of social capital begins due to this very urge. moderate entrepreneurship at the institution level is sufficient to give momentum to the economy. entrepreneurship becomes liberal and localized and the entrepreneurship spreads from the public to private to people’s sector. But entrepreneurship has to be there for a nation aspiring to surge economically ahead. generating employment. due to non-availability of sufficient number of local entrepreneurs. the nearer it gets to the people. Therefore. This could be structured in specialized institutions as well as individuals. the need for entrepreneurship development immanates from this very social urge as well as his innate urge to stretch his hand beyond his reach. what he fails to do individually. Alfred Adler declared that driving force in man was innate social urge . Because. And whosoever initiates the formation of the social capital is the first entrepreneur and the first innovator. go waste and the economy loses its momentum to that extent and fails to attain its orbit by that margin. “man is predominately a product of the society in which he lives. farther the source of entrepreneurship development gets removed from the centre. due to the silently shifting nature of the social crust on which all economic initiatives rests. Besides. leads to adjustments in the entrepreneurial role. necessitates the development of entrepreneurship to suit the needed roles.Entrepreneurship development. the opportunities that market throws in plenty. but social”. once the economy gets market oriented.

And if one aspires to attain one’s father’s position. familial. There is hardly any freedom of choice. one’s father’s achievements cannot be of much use to one. When employed one works for some-one-else. no qualification bar. one has to compete against un-known others. Unless one is extra-ordinary . one’s own and one’s yet-to-be born children. In a succinct manner it can be stated that. There is no age limit. In employment one’s emoluments are fixed.and only one or two can be that – one has to slog through the hierarchy. the commitment and dedication one brings into play. entrepreneurship development being a part of the socio-economic development process. 17 . one is one’s own Boss.Besides. Even if the father happens to be a highly placed person. One works for one self. One manages one’s own self and one’s time. if self-help is the best help. Of course. One must be in a certain age-group. Openings are as many as one perceives. with perhaps increased pre-conditions and by facing tougher competition. If one’s father is employed. it also includes individual. The return is in proportion to hard work one puts in. in self-employment or entrepreneurial venture. satisfy a host of other criteria laid down by the appointing authority and above all. Familial View From the family point of view. one is on one’s own. and one’s promotion phased out. social and national. one can share the comforts and facilities available to one’s father but one cannot inherit nor the father can bequeath a single bit of that. legitimately that is not going to help one in any way. Individual View From an individual’s point of view for getting an employment one has to satisfy so many conditions. the comforts and privileges all end with that. One is not a man but a member. But. an instrument. After one’s father’s retirement. pass through the same motion. familial. have some minimum qualification and experience. his powers. then self-employment is the best employment and entrepreneurship the highest form of self-employment from every point of view – individual. social and state considerations. how one wishes. one’s salary is scaled. then one has to begin from the beginning. what one wishes. There is no end of choice of work. One can become a millionaire if one strikes it rich. one works as some-one else wants one to work. one can comprehend the advantages of an entrepreneurial career by comparing it with even the best of employment at the level of three generations – one’s father. There is little scope for doing as one wishes. his status.

to take calculated risk. It is not enough to contribute few chips in the welfare funds for the disabled or the destitutes.position. purse. to plan. The story of an ascetic and a butcher is highly relevant and illustrative of this point. One can at the most provide them education keeping in view the emerging employment market. power. on top of that. And. meditated for such long hours and days that birds 18 . to implement and to succeed the way one deemed best in social interests. One can. the advantages of one’s varied and vast experiences will go a long way to help the children. It is not enough to walk on the pavement at one’s left side. even if one’s employer happened to be quite considerate and sympathetic. It is not enough to pay one’s taxes in time and honestly. One has to be an entrepreneur. to invest. And. Social View Looking beyond individual and familial view. All these are not enough if one has socio-economic considerations in mind. An Ascetic was very proud of his asceticism. one would not begin from the beginning but from where one’s father had left. at best make sure of leaving one’s Provident Fund and LIC policy for one’s family in case something untoward happened. the level and degree of competition one’s children would have to face. One has to create opportunities. as long as one lived. one would just step into one’s father’s shoes. he would at the most absorb one’s wife or son in a position where one fits in by virtue of one’s qualification and his considerations. if one is employed. Irrespective of one’s age. One has to do far more than that. But what they become would be more a matter of chance or destiny than planned diligence. But one’s experience and expertise put in at one’s working place will be of no use to the children. For that one has to be more than an employed person. qualification and other fitness conditions. It is not enough to attend to one’s neighbours in their hours of joy or sorrow. generate income. But if one is self-employed or is an entrepreneur. He had renounced the world. fasted for countless number of days.But it would not be so if one’s father is either self-employed or is an entrepreneur. has responsibilities towards the society in which one lives. Similarly. then one cannot shape one’s children’s future with any certainty. then alone one can be free to choose. cultivate higher motivation and values and set new examples. One cannot anticipate employment market. everything. All that the father built would come to one automatically . then from the very beginning one can plan the education and other training of one’s children keeping in view that they grow to take over and expand the existing business proposition and successfully run the same on a larger scale. The assets and comforts that one has been enjoying would remain intact. Besides. one being a social animal.

who was more satisfied and happy than him. And. I am more happy and satisfied but not proud of myself or my vocation”. He saw him quite engrossed in his business. At the developing level. giving whatever each customer wanted. it has no choice but to bear the burden and play the role of a creator of employment opportunities. the ‘burden’ is taken care and veered by the people themselves. to that extent. the butcher turned towards the ascetic and said. creation of employment opportunities fetters an economy. it creates institutions to share and snare the burden and the economy then plays the role of a provider of employment opportunities. he heard a voice telling him about a butcher living in a certain village. They balance your being and keep shaping your growth by keeping them within bounds. An advantage of social check and balance that you don’t have. therefore. He arrived in the said village and then at the butcher’s shop. “How could he know about it”? he thought. I have the same level of self-control which you could achieve after years of fasting and meditation. In that respect I am your equal. And. and the economy plays the role of a facilitator in the creation of employment opportunities. I can afford to be honest to myself as well as to others. I do what I believe in. But then. At the developed level. I believe in what I do. with the level of growth an economy achieves. 19 . speaking with every one softly and sweetly. I serve the society wherein I was born and brought up. At the under-developed level. Functions because providing productive employment to people helps economy in further consolidating the social capital which is its base. The ascetic did not believe his ears. However. And therefore. He felt so happy and satisfied with himself to the extent that he became proud of his asceticism. I have to be humble and honest to continue serving and earning my livelihood. The ascetic was taken aback. This is what social interactions do. fetters because it has to create employment opportunities. I have an edge over you and. Then. not in one or two but hundreds in number of thousands for which a good chunk of fund out of the surplus generated has to be diverted and to that extent further required developmental initiatives have to be pruned and whetted. And. National View From the national point of view. After having seen his last customer off. I cannot afford to be proud and haughty. all of a sudden. Thus.made nests in his matted hair. in the garb of entrepreneurs. creation of employment opportunities is one of the major functions as well as fetters of an economy. weighing meticulously. therefore. There is no dichotomy between my belief and action. it sheds and shares this fetter part of its social responsibilities. I am better off. A butcher and happy! How that could be? So he went to see the butcher. handling the pieces of flesh with utmost delicacy. each employment is an expenditure to the Exchequer not only for creating an opportunity but also for sustaining that opportunity. “So you have seen how happy and satisfied I am”. The butcher smilingly said. “I am a self-employed person.

a grand residential place. contributed in the Provident Fund. He expanded his business and. 20 . the following true life story will be of immense help. in increasing order. bought some fried groundnuts at a small station. sales-tax wealth-tax. I am sure it would be a good business and yield a handsome return. Two friends while travelling from Ahmedabad to Mumbai. entrepreneurship. relieves the economy in more than one ways and. He paid income tax. in less than five years time. a member of the society in which he grows. opens up a new inflow of income to the Exchequer. Gratuity etc. to face the final interview for the post of ticket collector. So. a citizen of the nation which provides him resources and opportunities. aside a sum for the gratuity to be paid to him and provide for pension/family pension.all going to the Exchequer. Reacting on that one spoke to the other. . An individual is a unit of the family to which he belongs. To bring home the point.Provident Fund. negotiated with him to do the job for him for a month.Against the long-drawn expenditure. Through self-employment. on the one hand. a fleet of cars and created employment avenues for thousands. The Railway had to provide him residential accommodation. But it is through entrepreneurship alone that national obligations can be met. But his friend’s mind was engrossed in tossing the business opportunity he had perceived. was an owner of a big business establishment. involved in the creation and sustenance of employment opportunities . He brought another ticket back to the station where he had bought the fried ground-nut. paid him advance out of whatever money he had and thus started a business venture which. in less than two years time.” “You may be right”. one can meet most of one’s family responsibilities. got in touch with the person who used to prepare the same. accounted for his salary. after his retirement. “If we get hold of the man who prepares this and hire his services. By earning through employment. yielded handsome profits. one can fulfil most of one’s social responsibilities as well. he already had made up his mind and had dropped the idea of attending the interview. on the other. Both of them found the preparation exceptionally delicious. the other said. On the other hand his friend got employed in the Railways as a ticketcollector and was still working as such. pack them in neat pouches and sell the same in the metropolis. “but at present we should think of the interview we have to face in order to get selected”. The narrative is just to depict the ways in which employment is a drain on the Exchequer and as a part of the growth as compared to self-employment or entrepreneurial venture which contributes in the growth and development of economy. by the time he got down at Bombay Central.

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