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Que 1 Factors Encouraging Entrepreneurship

Ans 1 1...Leadership It is up to the entrepreneur to marshal assets. Leaders are challenged with taking possibilities and turning them into inspiring visions for others. We will inevitably have to sell either our idea or our product to begin our entrepreneurship. It will be up to the entrepreneur to take the idea and turn it into actions and products to capitalize on the opportunity. Leadership can come in many forms, but it is nevertheless essential to entrepreneurship. We must take the lead for our ideas to come to fruition. 2. Maintain focus on our mission Great entrepreneurs focus intensely on opportunities, helping them filter out non-strategic activities and distractions. Most companies die from dyspepsia rather than starvation, Companies suffer from doing too many things at the same time rather than doing too few things very well. 3. Creativity Most aspiring entrepreneurs believe their initial idea and inspiration requires the most important creative thinking. Experienced entrepreneurs will tell you that the initial idea is the easy part, and its the later implementation, and the competitive business marketing that is the real creative challenges. 4. Risk Tolerance Rewards rarely come without risk. Our ability to take advantage of an opportunity will depend, in part, on our tolerance for risk. As the founder of a start-up, investors will expect us to have a vested interest in our business. If he will not bet on our idea, why should anybody else? If he cannot afford the risk, financially or emotionally, then he might make decisions that are too tepid to be successful. To do well, an entrepreneur needs the strong sense of self-efficacy to believe the risk will be surmountable. 5.Competitiveness and progressiveness Competitiveness of entrepreneurial enterprises is very important factor today and it is directly connected with sustainable development. Entrepreneurship in itself strengthens competitiveness. The regulations of sustainable development are the straight way to rule an entrepreneurial business in an appropriate way to competitiveness and success, and to progress of overall activity. As work markets become globalised, heightened competition poses significant new challenges for firms. It has become increasingly important for firms to develop management systems that have the capability to react quickly to change and that promote innovation. 6. Dynamism Dynamism of entrepreneurship is connected with agility, variability, and efficiency of entrepreneurial enterprises transferring and using new knowledge. These organizational features are modern. Dynamism of modern entrepreneurial enterprises is essential in fast developing economic conditions. Dynamism of business may be describe0d as such category as business mobility, which is business potency to change, to renew, to change the forms and spheres, to develop and to be more effective. Competitiveness, economic risk, entrepreneurial activity, profit, and time factor may be divided as essential business mobility factors. SMEs have dynamic impact on economics, especially in regional context.

5. Responsiveness Opportunity can leave quickly. With the Internet, the spread of information and ideas has led to deeper, faster competition to be the first mover. The ability to respond to the market and new business opportunities can be the difference between a successful entrepreneur and a failed business model. To be responsive, an entrepreneur must have the flexibility of mind and resources necessary to see and take advantage of new and upcoming possibilities. Learning from our mistakes and those of others to implement change can keep businesses afloat. Calcifying rigidity, on the other hand, can turn a start-up into dust. 7. Ideas Intellectual property laws can provide us with exclusive business rights to our ideas. If we do not protect our ideas, they may be copied -- cheaply. Once an idea is in the public domain, it may no longer be possible to use that idea as a competitive advantage. Society values ideas being shared. In exchange for sharing ideas, governments provide limited monopolies that will allow us to capitalize on them for a period, making up in part for the costs we have incurred in research and development. Intellectual property professionals can aid us in seeking such rights.

Que 2 Deadly mistake of entrepreneur


Ans 2 1. Administration While making all the decisions can be a benefit, it can also be a burden. Being an entrepreneur comes with a lot of paperwork that can take up time and energy. Competition. Staying competitive is critical as a small business owner. He will need to differentiate his business from others like his in order to build a solid customer base and be profitable. Poor management Perhaps the most common mistake of entrepreneurs is related to business management that creates. Entrepreneur may not have the ability to drive their own business, do not possess the necessary skills of leadership, knowledge necessary to lead. This mistake usually occurs after a certain period of operation of the company and especially after the business has acquired a certain size, which requires knowledge of management. Many entrepreneurs fail because they do not understand that from a certain size, business requires a performance management practiced by people with knowledge and experience. His entrepreneurial skills are not sufficient to lead a larger scale business. Right to notice is that the entrepreneur when he should be entrusted to professionals in business management, and he eventually set up a new business process which has the necessary qualities. 4...Lack of experience Every entrepreneur needs some experience in developing business. Creating and developing a business in an area where you do not have the necessary skills will pass sooner or later the quality of the product or service, motivating staff, generally in all areas of business that are necessary for success. Therefore it is necessary for entrepreneurs to work in a period in which open business, or even to follow a specialized training in that area. 5. Financial control of low-quality

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Business success still depends on the availability of capital to start entrepreneurial activities. Therefore one of the mistakes they make while entrepreneurs and causes of business failure is insufficient capital. Often entrepreneurs' confidence in obtaining a profit from the execution of specific activities lead to lack of financial means for paying bills on time, which can lead to bankruptcy. It also requires adequate financial control and use of appropriate methods for costing. However, many entrepreneurs do not give due consideration to developing a "cash flow" to ensure liquidity needs in each stage of business conduct. 6. Marketing of low quality Considering that "manufactures good products customers will certainly occur, entrepreneurs make another mistake in developing a business. Reality has shown that only by relying on a well founded marketing plan can be expected to shape a customer segment to which to turn entrepreneur. 7. Lack of a strategy based Whether for lack of time, either from ignorance, entrepreneurs consider that a strategy is required only for large companies. So, the lack of a survival strategy terminate at the newly created company, because without clear targets, especially of ways to achieve competitive advantage, business goes bankrupt. Without a clear strategy may not know the target customers, cannot know how to keep customers, not knowing how to meet customer needs better than competitors, nor how to ensure sustainable development in the context of given competitive. 8. Uncontrolled growth Every entrepreneur wants to raise unchecked development continuously and rapidly increasing business that has commenced. But this growth must be planned and controlled; otherwise it can make a big mistake by not being able to control this increase and to enter such an unwelcome fall. 9. Poor choice of location Although considered by many entrepreneurs as being less important, the choice of location may be one of the mistakes that may even lead to business failure. Choosing the location where the availability of spaces and not the result of careful studies that benefit may be an important brake on development of that business and even disappears. 10. Poor inventory Although the biggest investment they make entrepreneurs are necessary material means (machines, equipment, facilities, etc.), often less attention is given to the good of their inventories. However, an inefficient inventory could lead to redundant stocks generally unjustified expenses that may constitute grounds for failure in the continuation of that business. 11. Setting incorrect price Setting price of the product or service incorrectly or too much under the influence of prices by competitors or too small from the perception of "sell the best product at the lowest price" is one of the mistakes that can lead to business failure. It is therefore recommended that the pricing should start from the correct knowledge of the costs incurred in manufacturing the product or service provision, and competitive market conditions.

Que.3. How to Put Failure into Perspective


Ans 3. Entrepreneurs dont failthe venture fails. There are no such things as failures, only results. Always look to turn a negative situation into a positive opportunity. Have no fear of failure and be sure to have a contingency plan. The only people who never fail are those who never do anything or never Attempt anything new. The successful entrepreneur understands the meaning of these clichs and knows how To deal with adversity in a proactive and positive manner.

Que 4.A Scenario Of Entrepreneurship In India In Pre British Period, British Period And Post Independence Period
Ans4.

The evolution of the Indian entrepreneurship can be traced back to even as early as Rig-Veda, when metal handicrafts existed in the society. This would bring the point home that handicrafts entrepreneurship in India was as old as the human civilization itself, and Was nurtured by the craftsman as a part of their duty towards the society. Before India came into contact with west, people were organized in a particular type of economic and social system of the village community. Then, the village community featured the economic scene in India. The Indian towns were mostly religious and aloof from the general life of country. The elaborated cast based diversion of workers consisted of farmers, artisans and religious priests. The majority of the artisans were treated as village servants. Such compact system of village community effectively protecting village artisans from the onslaughts of external competition was one of the important contributing factors to the absence of localization of industry in ancient India. Evidently, organized industrial activity was observable among the India artisans in a few recognizable products in the cities of Banaras, Allahabad, Gaya, and Pure & Mirzapur which were established on their river basins. Very possibly this was because the rivers served As a means of transportation facilities. These artisan industries flourished over the period because the Royal patronage was to them to support them. The workshops called kharkhanas came into existence. The craftsmen were brought into an association pronounced as guild system. On the whole, perfection in art, durability beyond doubt and appeal to the eye of the individual were the distinguishing qualities inherent in the Indian craftsmanship that brought much everlasting laurels of name and fame of the Illustrious India in the past. . Unfortunately, so much prestigious Indian handicraft industry, which was basically a cottage and small sector, declined at the end of the 18th century for various reasons. These may be listed as1. Disappearance of the Indian royal courts who patronized the crafts earlier. 2. The lukewarm attitude of the British colonial govt. towards the Indian crafts.

3. Imposition of heavy duties on the imports of the Indian goods in England. 4. Low priced British made goods produce on large scale which reduced the competing capacity of the product of the Indian handicrafts. 5. Development of transport in Indian facilitating the easy access of British product even to far-flung remote part of the country. 6. Changes in the tastes and habits of the Indian, developing craziness of foreign products. 7. Unwillingness of the Indian craftsmen to adapt to the changing tastes and needs of the people. Reasons for slow growth of entrepreneurship in During British period in India. 1. Not given proper protection: The enterprises were not given proper protection by British Government. 2. Discouragement by British Government: Only those industries in which the British Government put their own capital were given encouragement. 3. High railway freight charges: The railway freight charges were higher for locations not nearer to the ports. This proved that the transportation of the goods manufactured for the Indian markets were more expensive than goods meant for exports. 4. Exorbitant tariffs: The British imposed exorbitant tariffs on India made goods. 5. Constantly harassed for getting licenses: Entrepreneurs were constantly harassed for getting licenses and finance to established and run industries. 6. No facilities for technical education: there were almost any facilities for technical education which alone could strength Indian industrial entrepreneurship. 7. Entrepreneurs faced fierce competition from abroad: The Indian indigenous entrepreneurs faced fairs competition from machine made goods exported to India from abroad. 8. Lack of transportation and communication facilities: Lack of transportation and communication facilities acted as the stumbling blot in the way of industrial growth. 9. Not encouraged the establishment of heavy industries: The British Government did not encourage the establishment of heavy industries like heavy machinery, iron and steel which are necessary for rapid industrialization. 10. Political turmoil: Political turmoil and abolition of princely courts discouraged the growth of entrepreneurship. 11. Multi-currency system: Prevalence of multi currency system affected the business environment and blocked the growth. Inspire of the above problems, the export trade of textile in 17th century was on ascending trend. During this period, grouping of Indian merchants into joint stock associations for the purpose of managing the supply of textiles to European companies was very significant. This helped in exporting huge volume of textiles to the European markets leading to favorable terms of trade.

India had been conquered before the British too but the invaders settled in India. The difference of the British conquest lies in the fact that it led to the emergence of a new political and economic system whose interests were rooted in a foreign soil and whose policies were guided solely by those interests. Whereas the early invaders Indianite themselves, the British tried to keep a distance between them and the Indian people and thus created the distinction erstwhile not known to Indian history--the foreign rulers and the Indian subjects. The British rule can be divided into two epochs, first the rule of the East India Company ranging from 1757 to 1858. Second, the rule of the British Government in India from 1858 to 1947. The establishment of the British rule itself was a slow and lengthy process, extending over more than a hundred years. The British conquest which started in 1757 with the Battle of Plessey was completed only by 1858. During this period England was passing through the period of changes in the techniques of production which revolutionized manufacturing.

The coming of Industrial Revolution which synchronized with the period of British conquest helped the British to sell machine made goods in India in competition with Indian handicrafts. The British conquest led to the disintegration of the village community partly by the introduction of the new land revenue system and partly by the process of commercialization of agriculture. The new land system and the commercial agriculture meant untold exploitation of the Indian peasantry and the country was consequently plagued by frequent famines. The British were not interested in developing India as such. The growth of railways or the spread of irrigation or the expansion of education or the creation of revenue settlements were all initiated with one supreme goal, i.e., to accelerate the process of economic drain from India.

After taking a long sign of political relief in 1947, the Government of India tried to spell out the priorities to devise a scheme for achieving balanced growth. For this purpose, the Government came forward with the first Industrial Policy, 1948 which was revised from time to time." The Government in her various industrial policy statements identified the responsibility of the State to promote, assist and develop industries in the national interest. It also explicitly recognized the vital role of the private sector in accelerating Industrial development and, for this, enough field was reserved for the private sector. The Government took three important measures in her industrial resolutions:(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 (iii) To disseminate the entrepreneurship acumen concentrated in a few dominant communities to a large number of industrially potential people of varied social strata. To achieve these adumbrated objectives, the Government accorded emphasis on the development of small-scale industries in the country. Particularly since the Third Five Year Plan, the Government started to provide various incentives and concessions in the form of capital, technical know-how, markets and land to the potential entrepreneurs to establish industries in the industrially potential areas to remove the regional imbalances in development. Also, there are examples that 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 grew beyond the normally expected size and also established new frontiers in business in this period. Notwithstanding, all this happened without the diversification of the entrepreneurial base so far as its socio -economic ramification is concerned. Liberalization was catalyst for growth of Entrepreneurship in India Post-liberalization, entrepreneurship has generally increased in India, Dr Mani told Business Line. And knowledge-intensive entrepreneurship in sectors such as IT and biotechnology has also increased since the economic liberalization process started in 1991, he added.

Que5. Role of government in building an entrepreneurship environment in India


Ans 5. Entrepreneurship was potential to support economic growth and social cohesion; it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-taking, and national campaigns

Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week, a worldwide celebration and promotion of youth entrepreneurship, which started in 2008.

Financial assistance is available from institutions such as Nationalized Banks, Small Industries Development Bank of India, Regional Rural Banks, National Small Industries Corporation, State Financial Corporations etc. depending upon the project requirement and promoters background. Financial assistance has two components. Loan for fixed capital is used to acquire Plant and Machinery, land and building. Working capital loan is used to meet day to day operational cost of the production. State Financial Corporation and National Small Industries Corporation generally provide working capital. However under package assistance, State Financial Corporations also provide a composite loan covering plant and machinery and working capital. The general conditions for getting financial assistance are: Eligibility criteria Technical /Economic viability Promoters contribution Capacity to repay loan Collateral securities/guarantee THE ROLE OF GOVERNMENT IN SUPPORTING ENTREPRENEURSHIP Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner. SMEs have strategic importance for each national economy due a wide range of reasons. Logically, the government shows such an interest in supporting entrepreneurship and SMEs. There is no simpler way to create new job positions, increasing GDP and rising standard of population than supporting entrepreneurship and encouraging and supporting people who dare to start their own business. Every surviving and successful business means new jobs and growth of GDP. Therefore, designing a comprehensive, coherent and consistent approach of Council of Ministers and entity governments to entrepreneurship and SMEs in the form of government support strategy to entrepreneurship and SMEs is an absolute priority. A comprehensive government approach to entrepreneurship and SMEs would provide for a full coordination of activities of numerous governmental institutions (chambers of commerce, employment bureaus, etc.) and NGOs dealing with entrepreneurship and SMEs. With no pretension of defining the role of government in supporting entrepreneurship and SMEs, we believe that apart from designing a comprehensive entrepreneurship and SMEs strategy, the development of national SME support institutions and networks is one of key condition for success. There are no doubts that governments should create different types of support institutions: i) To provide information on regulations, standards, taxation, customs duties, marketing issues; ii) To advise on business planning, marketing and accountancy, quality control and assurance; iii) To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems, and to search for know-how and promote innovation; and iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises. Training Basic training differs from product to product but will necessary involve sharpening of entrepreneurial skills. Need based technical training is provided by the Govt. & State Govt. technical Institutions.

There are a number of Government organizations as well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs and are conducted by MSME's, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship Development Institutes and other state government developmental agencies. Marketing Assistance There are Governmental and non-governmental specialized agencies which provide marketing assistance. Besides promotion of MSME products through exhibitions, NSIC directly market the MSME produce in the domestic and overseas market. NSIC also manages a single point registration scheme for manufacturers for Govt. purchase. Units registered under this scheme get the benefits of free tender documents and exemption from earnest money deposit and performance guarantee. Promotional Schemes Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality up gradation, common facilities, entrepreneurship development and consultancy services at nominal charges. Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production technique as decided by the entrepreneur himself. This facilitates achievement of desired level of quality while keeping check on production process and management of the enterprise. Concession on Excise Duty MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by the Ministry of Finance which covers most of the items. Under this, units having turnover of less than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an exemption from Excise Duty for MSME units producing branded goods in rural areas Credit Facility To MSME Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME up to Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank. CONCLUSION Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes like policies and promotional schemes, providing incentives for quality up gradation, concession on excise duty and provides technical supportive services. Thus Government play supportive role in developing entrepreneurs.

Que 6. Development of entrepreneurship since 1980 in india


Ans 6.

During this license raj, most highly qualified young Indian graduates had no family connections nor were interested in influencing excise officers. Therefore, many of them immigrated to the United States to avoid such red tape and to gain economic freedom. Realizing that the existing economy was in dire crisis, Indian business practices began changing for the better in 1991 after extensive economic reforms. By ridding the old socialistic license raj system, Indian entrepreneurs no longer needed to worry about excise officers in order to achieve their business goals. This encouraged them to start focusing on expanding their markets and acquiring more customers Rapid economic growth has resulted since the removal of the license raj. For instance, the Indian economy has sustained an average growth rate of over 6% annually, with the gross domestic product or GDP being around 9.2 % between 2006 and 2007. In the past decade, India's GDP has also arisen from 21 % to 33 %, and India's foreign exchange reserves have reached over $200 billion. Domestic markets have also grown substantially to support innovation. Worldwide, India's vast economic success is recognized by many national and international corporations who have not only taken advantage of its pool of high-quality scientific talent but have also established many research and development facilities (R&D) throughout India. Today's promising market conditions have been very encouraging to many young engineering graduates who strongly believe that they have the technical knowledge and skills to attract new customers. These young Indian entrepreneurs are not the typical and conventional business entrepreneur. They are the children of many business professionals. As elite graduates of IITs, National Institutes of Technology, Indian Institute of Science, and the IIMs, this new young breed of worthy entrepreneurs have targeted their efforts on innovative ways to technologically address the genuine needs of millions of people. In the past few years, entrepreneurship in India has slowly taken off. Indian engineers who migrated to the United States in the eighties have found the U.S. to be a haven for entrepreneurial pursuits and have become highly successful in their respective fields. The rapid success of Indian American entrepreneurs has led to vast angel investments in India. Organizing themselves into angel confederacies after the Band of Angels in the Silicon Valley, each member diligently researches and pools their own capital for each prospective investment. Being known for founding and establishing well-known companies such as Symantec, Logitech, National Semiconductor, Sun Microsystems, Hewlett Packard, and Intuit, etc., these angel investors like to invest their time and money into new, cutting edge, start-up companies. This trend has boasted the pace at which new startups are being established in India. India offers a unique incubation environment for most entrepreneurs, greatly distinguishing it from other western democracies. A country where almost 50% of the Indian population is below 35 years old, it is apparent that India has a large working class. Ineffective political regimes have been enforcing their outdated ideologies on this dynamic young population