IMPACT OF MNCs ON ENTREPRENEURS

BY SHIVANI KAPOOR BBA (MORNING BATCH) 00114101709

Introduction to Entrepreneurs
Creative human act involving the mobilization of resources Involves a willingness to take responsibility and ability to put mind to a task and see it through from inception to completion Starting new org. or revitalizing mature org., particularly new business generally in response to identified opportunities. Sensing opportunities, while others see chaos, contradiction, and confusion. Essence of Entrepreneurs is going against time with maturity and serving as a change agent.

Introduction to MNCs
With a GDP growth of almost 7 %, India is one of the most promising and fastest-growing economies in the world. But despite the huge potential of the country, the performance of MNCs in India has been decidedly mixed.

In recent times, other reasons have made India an attractive destination for MNCs. India has emerged as a low cost back office, manufacturing and research base, thanks to its skilled but relatively cheap manpower.

Today, virtually all the big MNCs in the world have operations in India. These include Unilever, BAT, Colgate Palmolive, Procter & Gamble, General Electric, General Motors, Ford, Pepsi, IBM, Intel, Texas Instruments, Microsoft, Oracle and Coca-Cola. India is now considered by many MNCs to be a strategically important market.

. MNCs must keep fine-tuning their strategy till they have a winning formula in place. It is MNCs which show both commitment and flexibility that are most likely to succeed in India

RESEARCH METHODOLOGY PRIMARY DATA: I have collected the primary data with structured questionnaire. SECONDARY DATA : Secondary data has been collected from the various website, journal, And Books. SAMPLE SIZE: Survey of 20 people ANALYSIS TOOLS: Pie chart, Bar graph. SAMPLE AREA: Delhi and Ncr.

ANALYSIS AND INTERPRETATION

Age of sample entrepreneurs at the time of starting their shops\stores

Table showing education of sample entrepreneurs

Table showing sample Entrepreneurs According to Income level

Distribution of Sample Entrepreneurs According to parental occupation

Conclusion
Entrepreneurs development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic-progress. Entrepreneurs development should be viewed a way of not only solving the problem of unemployment but also of overall economic and social advancement of the nation. Wide-scale development of Entrepreneurs can help not only in generating self employment opportunities and thereby, reducing unrest and social tension amongst the unemployed youths but also in introducing small business dynamism, encouraging innovative activities and facilitating the process of balanced economic development.

 Entrepreneurs can be developed through appropriately designed programmes.

A multitude of institutions at all levels in the private as well as public sectors have been rendering services through incentives, training and facilities for promotion of Entrepreneurs.

Suggestion
Many people are not aware of the entrepreneur opportunities available. Though the government is offering different types of incentives and assistance, still many people are in the dark.

There is a dire need to create awareness about entrepreneur opportunities and entrepreneurial assistance available.
Wide publicity should be given about the financial assistance and other incentives that are offered by the government.

 The cumbersome formalities involved in processing financial assistance and obtaining license have to minimize to encourage Entrepreneurs.
Widespread awareness and education is required to enable rock mining operations to be environment friendly. Entrepreneurs need guidance right from the formulation of the project till its implementation in addition to financial assistance, training place a vital role in initiating and accelerating the process of entrepreneurial development.

LIMITATIONS
MNCs market power may serve as an effective barrier to the entry of competitors. MNCs exploit local labor and resources by paying relatively lower prices and lower taxes than local firms while obtaining high profits that are largely repatriated. MNCs employ transfer prices (artificial prices) in transfers between subsidiaries that minimize total taxes for the MNCs and increase their global profits. By over pricing imports and under invoicing exports that are booked through subsidiaries in tax free ports, MNCs can repatriate more profits than are permitted by host countries.

 MNCs use scarce local capital to finance their subsidiaries rather than bring needed capital into the host country, thus acting as a drain on host countrys resources. MNCs Involvement often results in the lack of development of local R & D transfer to host countries of technology they do not need, the use of capital intensive technology that reduces jobs, and the increase in psychological dependence on MNCs. Competition from MNCs affects local industry adversely.

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