You are on page 1of 45

ENTREPRENEURSHIP IN INDIA-

HISTORY AND DEVELOPMENT-


1.1Introduction There are so many institutes and organizations which are involved
in entrepreneurship development activities and there are people who join these
programmes as a stepping stone to become entrepreneur. It is a known fact that
so many management institutes are coming up to cater to the growing need of
industries by supplying traditional managers/corporate managers. The scope of
this study is to find out the perception of management students about the
entrepreneurship and compare it with those people who have become
entrepreneur. The researcher feels that this study will reveal the facts which are
important to develop entrepreneurship as a career option among management
students. A manager is one who manages all the resources to match with the
organizational needs. In the managerial role resources are allocated to solve
problems and improve the administrative efficiency. The entrepreneurship is very
a old concept according to which any one who runs business is called an
entrepreneur. The more precise meaning of entrepreneur is; one who perceives a
need and then brings together manpower, material and capital required to meet
that need. Entrepreneur is one who understands the market dynamics and
searches for change respond to it and exploit it as an opportunity. 1.2 The
Evolution of Entrepreneurship The word entrepreneur is derived from the
French verb enterprendre. It means to undertake. The Frenchmen who
organized and led military expeditions were referred to as entrepreneurs.
Around 1700 A.D. the term was used for architects and contractor of public
works. In many countries, the term entrepreneur is often associated with a
person who starts his own new business. Business encompasses manufacturing,
transport, trade and all other self employed vocation in the service sector.
Entrepreneurship has been considered as the propensity of mind to take
calculated risk with confidence to achieve predetermined business objectives.
There are many views and opinions on the concept of entrepreneurship
forwarded by some of the world famous management gurus and economists as
mentioned below which will help in understanding this concept. Oxford
Dictionary A person who sets up a business or businesses, taking on financial
risks in the hope of profit 2 International Encyclopedia An individual who bears
the risk of operating a business in the face of uncertainty about the future
conditions3 Schumpeter's Definition The entrepreneur in an advanced
economy is an individual who introduce something new in the economy- a
method of production not yet tested by experience in the branch of
manufacturing, a product with which consumers are not yet familiar, a new
source of raw material or of new markets and the like
1.2 Adam Smith The entrepreneur as an individual who forms an organization for
commercial purpose. He/She is proprietary capitalist, a supplier of capital and at
the same time a manager who intervenes between the labor and the consumer.
Entrepreneur is an employer, master, merchant but explicitly considered as a
capitalist7 Hoselitz According to him, in an underdeveloped economy, not to
speak of the Schumpetarian innovators, even imitator-entrepreneurs had a
distinct role to play. In underdeveloped economy resources are limited and can
not be utilized for further developments of products. Developing or
underdeveloped countries always have potential for imitated products because
of huge demand in market. Imitating entrepreneurs have great opportunities in
such market and can create more number of jobs for others.

The entrepreneur is the one who undertakes to organize, manage, and assume the
risks of a business. In recent years entrepreneurs have been doing so many things
that it is necessary to broaden this definition. Today, an entrepreneur is an
innovator or developer who recognizes and seizes opportunities; converts those
opportunities into workable/marketable ideas; adds value through time, effort,
money, or skills; assumes the risks of the competitive marketplace to implement
these ideas; and realizes the rewards from these' efforts. The entrepreneur is the
aggressive catalyst for change in the world of business. He or she is an independent
thinker who dares to be different in a background of common events. The literature
of entrepreneurial research reveals some similarities, as well as a great many
differences, in the characteristics of entrepreneurs. Chief among these
characteristics are personal initiative, the ability to consolidate resources,
management skills, a desire for autonomy, and risk taking. Other characteristics
include aggressiveness, competitiveness, goal-oriented behavior, confidence,
opportunistic behavior, intuitiveness, reality-based actions, the ability to learn from
mistakes, and the ability to employ human relations skills.8 Although no single
definition of entrepreneur exists and no one profile can represent today's
entrepreneur, research is providing an increasingly sharper focus on the subject. A
brief review of the history of entrepreneurship illustrates this. Entrepreneurship is
catalyst of business and economic development. The social and economic forces of
entrepreneurial activity existed long before the new millennium. In fact, as noted,
the entrepreneurial spirit is linked with humanitys achievements.

1.3. History of Entrepreneurship in India The history of entrepreneurship is


important worldwide, even in India. In the pre colonial times the Indian trade and
business was at its peak. Indians were experts in smelting of metals such as brass
and tin. Kanishka Empire in the 1st century started nurturing Indian entrepreneurs
and traders. Following that period, in around 1600 A.D., India established its trade
relationship with Roman Empire. Gold was pouring from all sides. Then came the
Portuguese and the English. They captured the Indian sea waters and slowly
entered the Indian business. They forced the entrepreneurs to become traders and
they themselves took 8 the role of entrepreneurs. This was the main reason for the
downfall of Indian business in the colonial times which had its impact in the post-
colonial times too. The colonial era make the Indian ideas and principles rigid. A
region of historic trade routes and vast empires, the Indian subcontinent was
identified with its commercial and cultural wealth for much of its long history.
Gradually annexed by the British East India Company from the early eighteenth
century and colonized by the United Kingdom from the mid-nineteenth century,
India became an independent nation in 1947 after a struggle for independence that
was marked by widespread nonviolent resistance. It has the world's twelfth largest
economy at market exchange rates and the fourth largest in purchasing power.
Economic reforms since 1991 have transformed it into one of the fastest growing
economies however, it still suffers from high levels of poverty, illiteracy, and
malnutrition. For an entire generation from the 1950s until the 1980s, India followed
socialist-inspired policies. The economy was shackled by extensive regulation,
protectionism, and public ownership, leading to pervasive corruption and slow
growth. Since 1991, the nation has moved towards a market-based system.15
Entrepreneurship is the result of three dimensions working together: conducive
framework conditions, well-designed government programmes and supportive
cultural attitudes. Across these three perspectives of entrepreneurship, two major
conclusions are apparent. Firstly, the economic, psychological and sociological
academic fields accept that entrepreneurship is a process. Secondly, despite the
separate fields of analysis, entrepreneurship is clearly more than just an economic
function.

1.3.1. Economy of India before British-Raj The Indian economy in the pre-British
period consisted of isolated and self-sustaining villages on the one hand, and towns,
which were the seats of administration, pilgrimage, commerce and handicrafts, on
the other. Means of transport and communication were highly underdeveloped and
so the size of the market was verysmall. To understand pre-British India, it is
essential to study the structure of the village community, the character of towns,
the character of internal and foreign trade, the state of the means of transport and
communications. 1.3.2. The structure and organisation of villages The village
community was based on a simple division of labour. The farmers cultivated the soil
and tended cattle. Similarly, there existed classes of people called weavers,
goldsmiths, carpenters, potters, oil pressers, washermen, cobblers, barbersurgeons,
etc. All these occupations were hereditary and passed by tradition from father to
son. These craftsmen were paid a stipend out of the crops at the harvest time in lieu
of the services performed. Most of the food produced in the village was consumed
by the village population itself. The raw materials produced from primary industries
were the feed for the handicrafts. Thus the interdependence of agriculture and hand
industry provided the basis of the small village republics to function independently
of the outside world. Sir Charles Metcalfe writes in this connection: "The village
communities are little republics having nearly everything they want within
themselves; and almost independent of foreign relations. They seem to last where
nothing lasts. This union of the village communities, each one forming a separate
little state by itself is in a high degree conducive to their happiness, and to the
enjoyment of a great portion of freedom and independence."16 The villages did
acknowledge some outside authority, who in turn may be under a Muslim Nawab or
a Hindu king, by paying a portion of the agricultural produce varying between one-
sixth to one-third or even in some periods one-half as land revenue. The land
revenue sustained the government. There were three distinct classes in village
India: (i) the agriculturists, (ii) the village artisans and menials, and (iii) the village
officials. The agriculturists could be further divided into the land-owning and the
tenants. Labour and capital needed was either supplied by the producers
themselves out of their savings or by the village landlord or by the village
moneylender. These credit agencies supplied finance at exorbitant rates of interest
but since the moneylender and the landlord were the only sources of credit, the
peasants and even the artisans were forced to depend on them. The village artisans
and menials were the servants of the village. Most of the villages had their
panchayats or bodies of village elders to settle local disputes. The panchayats were
the courts of justice. The villages of India were isolated and self-sufficient units
which formed an. enduring organisation. But this should not lead us to the
conclusion that they were unaffected by wars or political upheavals. They did suffer
the aggressors and were forced to submit to exactions, plunder and extortion, but
the absence of the means of transport and communications and a centralized
government helped their survival. 1.3.3. Industries and handicrafts in pre-British
India The popular belief that India had never been an industrial country is incorrect.
It was true that agriculture was the dominant occupation of her people but the
products of Indian industries enjoyed a worldwide reputation. The muslin of Dacca,
the calicos of Bengal, the sarees of Banaras and other cotton fabrics were known to
the foreigners. Egyptian mummies dating back to 2000 B.C. were wrapped in Indian
muslin. Similarly, the muslin of Dacca was known to the Greeks under the name
Gangetika. The chief industry spread over the whole country was textile handicrafts.
The high artistic skill of the Indian artisans can be visualised from this account given
by T.N. Mukherjee : "A piece of the muslin 20 yards long and one yard wide could be
made to pass through a finger ring and required six months to manufacture."17
Besides the muslins, the textile handicrafts included chintzes of Lucknow, dhotis
and dopattas of Ahmedabad, silk, bordered cloth of Nagpur and Murshidabad. In
addition to cotton fabrics, the shawls of Kashmir, Amritsar and Ludhiana were very
famous. Not only that India was also quite well-known for her artistic industries like
marblework, stone-carving, jewellery, brass, copper and bell-metal wares,
woodcarving, etc. The cast-iron pillar near Delhi is a testament to the high level of
metallurgy that existed in India. The Indian industries "not only supplied all local
wants but also enabled India to export its finished products to foreign countries."18
Thus, Indian exports consisted chiefly of manufactures like cotton and silk fabrics,
calicos, artistic wares, silk and woolen cloth. Besides, there were other articles of
commerce like pepper, cinnamon, opium, indigo, etc. In this way, Europe was a
customer of Indian manufactures during the 17th and 18th centuries. It was this
superior industrial status of India in the preBritish period that prompted the
Industrial Commission (1918) to record: "At a time when the West of Europe, the
birth place of modern industrial system, was inhabited by uncivilised tribes, India
was famous for the wealth of her rulers and for high artistic skill of her craftsmen.
And even at a much later period, when the merchant adventures from the West
made their first appearance in India, the industrial development of this country was,
at any rate, not inferior to that of the more advanced European nations."19 1.3.4.
Economic consequences of British conquest 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 Indianized 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, and 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 Plassey was completed
only by 1858. During this period England was passing through the period of changes
in the techniques of production which revolutionised manufacturing. The coming of
Industrial Revolution which synchronised 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 commercialisation 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.
1.3.5. Decline of Indian handicrafts and progressive ruralisation of the Indian
economy Before the beginning of Industrial Revolution in England, the East India
Company concentrated on the export of Indian manufactured goods, textiles,
spices, etc., to Europe where these articles were in great demand. The Industrial
Revolution reversed the character of India's foreign trade. Tremendous expansion of
productive capacity of manufactures resulted in increased demand of raw materials
for British industry and the need to capture foreign markets. As a first step,
attempts were made to restrict and crush Indian manufactures. On the other hand,
efforts were made to commercialise agriculture so as to step up the export of raw
materials. The Indian textile handicrafts were the first to be hit. The decline of this
industry started a chain reaction leading to the speedy decline of other handicrafts.
The process of decline of handicrafts was accelerated by the development of means
of transport. The principal causes that led to the decay of handicrafts were as
follows: - . a) Disappearance of Princely courts. The growth of quite a number of
industries and towns was possible owing to the patronage of nawabs, princes, rajas
and emperors who ruled in India. The British rule meant the disappearance of this
patronage enjoyed by the handicrafts. Cotton and silk manufactures suffered
especially. Besides, the artisans who manufactured specially designed articles for
display and decoration of courts also suffered because of a decline in the demand
for works of art. b) Hostile policy of the East India Company and the British
Parliament. The British were always guided by their own interests and never
bothered to 13 consider the effects of their policies on the people of India in terms
of unemployment, human suffering, famines, etc. They formulated certain policies,
and propagated them but when conditions changed in England they were quick to
reverse or suitably alter them. The British economists always tried to provide the
theoretical basis of these policies and behind the theoretical formulations were the
British interests. For instance, in the first half of the 18th century, the British used
tariff with the object of protecting their woollen and silk manufactures on the one
hand and of raising additional revenues to finance continental wars, on the other.
The period 1882 to 1894 was one of complete free trade. By this time, England had
developed industrially to such an extent that unrestricted competition of British
manufactures with Indian handicrafts led to their decline. It was only when England
rose to the position of industrial supremacy that free trade was advocated by the
British economists and administrators. Thus, the British manufacturers employed
the arm of political injustice in order to exploit the Indian market. The selfish policy
of the British imperialists crippled Indian industries and helped the process of
industrialisation in Britain. c) Competition of machine-made goods. The large-scale
production that grew as a result of Industrial Revolution meant a heavy reduction in
costs. It also created a gigantic industrial organisation and, consequently, the
machine-made goods began to compete with the products of Indian industries and
handicrafts. This led to the decline of textile handicrafts -- the largest industry of
India. Whereas the British emphasized the free import of machine- made
manufactured goods they did not allow the import of machinery as such. The
decline of Indian handicrafts created a vacuum which could be filled by the import
of British manufactures only. Thus, India became a classic example of a colonial
country supplying her imperialist rulers raw materials and foodstuffs and providing
markets for the manufactures of her rulers. The development of roads, railways and
telegraphs, intensified the competition between indigenous and foreign goods and
hastened the process of the decline of handicrafts. The opening of the Suez Canal in
1869 reduced transport costs and thus made the exploitation of the Indian market
easier. d) The development of new forms and patterns of demand as a result of
foreign influence. With the spread of education, a new class grew in India which was
14 keen to imitate western dress, manners, fashions and customs so as to identify
itself with the British officials. This led to a change in the pattern of demand.
Indigenous goods went out of fashion and the demand for European commodities
got a fillip. Besides, there was a loss of demand resulting from the disappearance of
princely courts and nobility. Thus, the British rule, silently but surely, alienated the
Indians not only from Indian culture but also diverted in its favour their form and
pattern of demand for goods. The destruction of Indian handicrafts had far reaching
economic consequences. It led to unemployment on a vast scale. Since textile
industry was the worst sufferer in this process, the weavers were hit the most. Lord
William Bentinck reported in 1834 : "the misery hardly finds a parallel in the history
of commerce. The bones of cotton weavers are bleaching the plains of India."
Another consequence of the decline of handicrafts was the compulsory backto-the-
Iand movement. The British destroyed the institution of Indian handicrafts but did
not care to provide an alternative source of employment. The unemployed
craftsmen and artisans shifted to agriculture and increased the proportion of
population dependent on land. This trend of the growing proportion of the working
force on agriculture is described as 'progressive ruralization' or 'deindustrlalization
of India'. In the middle of the nineteenth century, about 55 per cent of the
population was dependent on agriculture, in 1901 it was about 68 per cent, the
proportion went up to about 72 per cent in 1931. Thus, the increased pressure of
population on land was responsible for progressive sub-division and fragmentation
of holdings. It led to an increase in land-rents charged from tenants. It meant an
increase in the number of landless labourers. Thus, the crisis in handicrafts and
industries seriously crippled Indian agriculture. 1.3.6. Process of industrial-transition
in India. The process of industrial transition in the British period is broadly divided
into industrial growth during the 19th century and industrial progress during the
20th century. It was mainly the private sector -- whether indigenous or foreign --
that 15 carried industrialisation forward. Only after the First World War some
protection was granted to Indian industries otherwise Indian industry had to
weather all storms and face world competition on its own strength. This explains the
slow growth of industrialisation. A) Private enterprise and industrial growth in the
19th century : The outstanding industrial events of the 19th century were the
decline of indigenous industries and the rise of large-scale modern industries. This
change was brought about by private enterprise. The rise of large-scale industries
was slow in the beginning but by the close of the 19th century, the movement was
more rapid. The period 1850-55 saw the establishment of the first cotton mill, first
jute mill and the first coal mine. In the same period, the first railway line was laid in
India. In a period of 25 years, that is, by the last quarter of the 19th century, there
were 51 cotton mills and 18 jute mills. During the same period, India produced one
million tonnes of coal per annum and the Indian railways had a mileage of 8,000. By
the end of the 19th century there were 194 cotton mills and 36 jute mills, and coal
production had risen to over 6 million tonnes per annum. In spite of the very rapid
increase in industrialisation and the fact that the foundations for the development
of modern industries for the utilisation of coal and iron resources were laid by the
end of the 19th century, India was being gradually converted into an agricultural
colony of the British. By 1900, India had become a great exporter of rice, wheat,
cotton, jute, oilseeds, tea, etc. and an importer of British manufactures. In this way
India had become an appendage of the British colonial system. During the 19th
century, it was but natural that British business should pioneer industrial enterprise
in India. The Britishers had experience of running industries at home. British
enterprise received maximum state-support. Besides, much of the business
developed in India was related either to the Government or interests in some way
connected with Britain. Though industrialisation was started by the British in the
19th century, the Britishers were more interested in their profit and not in
accelerating the economic growth of India. 16 Apart from the British, the Parsis, the
Jews and the Americans were also prominent first as merchants and later as
industrialists. They were close-knit and highly progressive communities. The Parsis
were particularly progressive to rapidly adopt European business methods. Within
the Indian community, conditions were not favourable for the emergence of
industrial leaders, partly because of the peculiar way in which factory industry came
to India, as compared to its development in England. In the West two principal
groups were ready to set up factories: the merchants and the master craftsmen.
The merchants had capital, marketing ability and capacity to manage labour. The
master craftsmen did not have capital but had understood the materials and their
proper handling. Because of certain peculiar features, neither Indian merchants nor
Indian craftsmen took interest in the factory system. Most Indian merchants
belonged to the Baniya or moneylending community. They possessed capital and
were always eager for its security and profits. But when the factory system was
introduced in India by the British, the merchant class found greater opportunities for
trade. The development of shipping and the building of railways resulted in larger
trade, both external and internal. Besides, there were more opportunities for lending
money. Thus, the merchants found greater scope for profits in their traditional
occupations and hence did not give them up and take to the factory industries. At
the same time, Indian craftsmen too did not play the part played by their western
counter-parts in the field of industrialisation because they did not possess large
capital. Besides, they were without proper training and education. However, Indians
joined the ranks of industrialists early in the middle of the 19th century and their
role grew throughout the period, continuously and steadily. They used the same
managing agency system as the Britishers. They were becoming increasingly
important members of companies established by the Britishers. Those indigenous
business groups who gave up traditional occupations and who took to industrial
ventures were the Parsis, the Gujaratis, the Marwaris, the Jains and the Chettiars. 17
B) Private enterprise and industrial growth in the first half of the 20th century: In
1905, the Swadeshi movement was started. It stimulated Indian industries and
there was a slow but steady growth in the field of existing industries as well as the
establishment of new industries between 1890 and the outbreak of the war of 1914.
Over 70 cotton mills and nearly 30 jute mills were set up in the country. Coal
production was more than doubled. Extension of railways continued at the rate of
about 800 miles per annum. The foundation of iron and steel industry was finally
laid during this period. The war of 1914-18 created enormous demand for factory
goods in India. Imports from England and other foreign countries fell substantially.
Besides, the government demand for war-purposes increased considerably. As a
result, great stimulus was given to the production of iron and steel, jute, leather
goods, cotton and woollen textiles. Indian mills and factories increased their
production and were working to full capacity. But on account of the absence of
heavy industries and also of the machine tools industry, they could not develop fast
enough. Tariff protection to Indian industries. In 1923 the Government of India
accepted the recommendations of the First Fiscal Commission and gave protection
to selected Indian industries against foreign competition. Between 1924 and 1939
several major industries were given protection by the Government, prominent
among them being iron and steel industry, cotton textiles, jute, sugar, paper and
pulp industry, matches, etc. Indian industrialists took advantage of the policy of
protection extended by the Government and developed the protected industries
rapidly. They were able to capture the entire Indian market and eliminate foreign
competition altogether in important fields. The outbreak of the war in 1939 created
very urgent demand for manufactured goods. The imports from foreign countries
declined while the government demand for them increased. Naturally the existing
industries expanded rapidly. Many new industries which came to be known as war
babies were started. But as during the First World War, the Indian industries suffered
again for want of 18 replacements, stores and technical knowledge. The increase in
industrial output between 1939 and 1945 was about 20 per cent. But the conditions
created by the war led to the maximum utilisation of existing capacity. The
conditions of shortage created by the Second World War continued in the post-war
period, but the overall index of output went up by only 5 per cent between 1945
and 1950. Decline ill the share of foreign enterprise. By the beginning of the First
World War the British controlled at least half the production in India's major
industries. But this control steadily declined. According to one estimate, the British
controlled 43 per cent of gross assets in 1914, 10 per cent in 1935 and only 3.6 per
cent in 1948. C) Causes of slow growth of private enterprise in India's
industrialisation (1850- 1957) : It is important to find out the reasons why Indian
industry did not expand significantly relative to the rest of the economy over the
hundred years before Independence. They were: I. Unimaginative private enterprise.
One important reason frequently mentioned is the inadequacy of entrepreneurial
ability. Indians were reluctant to enter the industrial field because of the
comparatively easier and secure scope for profit which existed in trading and
moneylending. The Britishers who pioneered industrial change in India were not
really interested in industrialisation of the country as such. But then Indian
industrialists too were so short-sighted, they rarely bothered about the future and
cared very little for replacement and for renovation of machinery. They were
influenced by nepotism rather than ability in their choice of personnel. They were
also influenced by their trading background viz., high price and high profit margin
rather than low prices and larger sales. They emphasized sales than production. To
a certain extent, therefore, unimaginative private enterprise was responsible for the
slow growth of industrialisation in this country. 19 II. Problem of capital and private
enterprise: In the 19th and 20th centuries, Indian industrialists had suffered from
lack of adequate capital. Just as British enterprise was prominent, so also British
Capital was significant in India's industrialisation. A larger part of the total invested
capital in modem enterprises in India was imported from Britain. Capital was scarce
not only because the resources of the country were underdeveloped but also
because the avenues for the investment of surplus wealth were few. There were no
Government loans or company stocks and debentures. Accordingly, people held
their wealth in the form of gold and silver. There was complete absence of financial
institutions to help the transfer of savings to industrial investment. The indigenous
financial institutions concerned themselves with rural moneylending and financing
of internal trade. Institutions which concerned themselves with rural savings for a
comparatively long period, were altogether neglected. In the early days of
industrialisation, people were generally hesitant to entrust their savings to the
company promoters. . Banking was not highly developed in India and was more
concerned with commerce rather than with industry. The Industrial Commission
wrote in 1918 : "The lack of financial facilities is at present one of the most serious
difficulties in the way of extension of Indian industries." By 1870 there were only
two joint stock banks of more than Rs. 5 lakhs capital each in the country. Even in
the beginning of the 20th century, there were only 9 such banks. The swadeshi
movement gave a fillip to the starting of banks but the number of bank failures in
this period was so great as to cancel any good effect from banking expansion. The
private bankers and joint stock banks did provide funds for industrial enterprises but
this aid was limited to well-established concerns only. 20 It is interesting to note that
Indian factory-owners followed closely the British system as regards capital
resources. In the beginning funds for investment came from surpluses earned in
rural moneylending and trading. But in course of time new resources were also
tapped. For instance rulers and princes, those who amassed wealth from opium
trade and in the cotton boom during the civil war in America, wealthy professional
people like doctors and lawyers, Government officials, etc.--these people were
induced to part with their wealth and savings for investment in industrial
enterprises. The textile mills of Ahmedabad and to a small extent those of Bombay
and Sholapur attracted deposits from the public. It is true that shortage of capital
did affect industrialisation in India but too much importance should not be given to
this factor alone. III. Private enterprise and the role of Government. One of the
important reasons and according to some authorities, the most important reason for
the slow growth of Indian industries was the lack of support from the Government.
In the 19th century, the Government did provide certain overhead investments
which helped private enterprise. Examples were the railways and communications.
But the Government did not provide the other conditions essential for private
enterprise. The important fact to remember is that in the critical years of growth
(between 1850 and 1947) Indian enterprise was operating under a foreign
government which was extremely unsympathetic to native private enterprise. The
tariff policy in India reflected the needs of business interests in Great Britain. The
British interests advocated free access to the Indian market. Till 1924 the
Government refused to impose custom duties on the import of foreign goods. Even
when they imposed low duties on some goods for purposes of collecting revenue,
they sought to neutralise their effects by imposing equivalent excise duties on
goods of local origin. When the Government ultimately adopted a policy of
protection, it did not give protection to all industries but only to a few selected
industries which fulfilled certain specified conditions. 21 It may be mentioned here
that the British Government in India leaned heavily on industry in Britain for its
large purchases of equipment for public utility in health and education, railway and
military supplies, etc. Even simple machines and standard supplies were imported.
Those orders could have served to stimulate expansion in Indian industry. In spite of
these difficulties, we must admire the achievements of India's indigenous business
communities since 1850. At the same time, we can readily understand why
industrial effort was not sufficient to accomplish a transition to industrialisation, to
spark modernisation of agriculture and industrial activities comparable to those
achieved in sovereign independents nations.

1.4.1. Employment policy in the ninth plan Labour Force Growth and Employment
Requirements - Job opportunities will need to be created for 53 million persons
during 1997-2002 as a consequence of labour force increase, for 58 million during
2002-07 and thereafter for 55 million during 2007-12. Table 1.1: Combined
Incidence of Unemployment and Under-employment Activity Status Proportion of
labour force Remarks 1. Labour force 100.0 Working or seeing work on usual status
basis. 2. Employed 89.55 Usual status employed staying in workforce when
classified by their weekly status. 3. Unemployed 2.02 Incidence of open
unemployment on usual status basis. 4. Under-employed 8.43 Usual status
employed going out of work when classified by their weekly status. 5. Unemployed
& underemployed 10.45 Open employment on usual status and the incidence of loss
of work by the usually employed when classified by their weekly status. Source:
Compiled from Planning Commission, Ninth Five Year Plan (1997-2002), Vol. I,
February 1999. 28 1.4.2. Strengthening the Informal Sector As indicated earlier, the
formal sector in 1995 providing organised employment to 10 or more persons
accounts for only 27.53 million workers being employed in them. The rest of the 312
million workers (about 92% of total) were engaged in agriculture as wage labourers,
or self-employed in informal sector or seek employment in the service sector. Bulk
of them were employed in the informal SSI sector which is seriously plagued with
the problem of industrial sickness. Despite all talk about helping small scale units,
the fact remains that mortality rate among the SSI units has been high, and more
and more of bank credit gets sunk in these units. But this is also true that SSI sector
is the principal source of employment and has the capacity to absorb a very large
chunk of the labour force. But the informal sector is mainly self-employed sector in
which due to lack of capital, skill and technology, most of the employment
continues to be low level employment. There is a need to strengthen the resource
base of this sector both in terms of capital and technology and skill formation so
that productive employment yields a higher level of income. 1.4.3. Growth rates of
Employment The growth rates of unemployment and labour force derived from NSS
data are given in table. Table 1.2: Growth of Employment by Sectors Industry Annual
growth rate of Employment (%) 1983-94 1994-00 Primary 1.60 -0.34 1. Agriculture
1.51 -0.34 2. Mining and Quarrying 4.16 -2.85 Secondary 2.90 3.14 3. Manufacturing
2.14 2.05 4. Electricity, Gas & Water Supply 4.50 -0.88 5. Construction 5.32 7.09
Tertiary 3.53 2.42 6. Trade 3.57 5.04 7. Transport, Storage & Communications 3.24
6.04 29 Industry Annual growth rate of Employment (%) 1983-94 1994-00 8.
Financial Services 7.18 6.20 9. Community, Social & Personal Services 2.90 0.55
Total Employment 2.04 0.98 Source: Compiled and computed from the data
provided by the Planning Commission (2001), Report of Task Force on Employment
Opportunities, table 3.2. Table 1.3: Unemployment Rates by Age Group 1999-2000
(As percent of labour force) Age Group Unemployment Rate Rural Urban Combined
15-19 13.3 19.0 14.4 (8.8) (16.6) (10.3) 20-24 11.8 18.7 13.5 (9.8) (19.2) (12.0) 25-
29 8.7 10.9 9.2 (7.4) (10.4) (8.1) Sub Group 11.0 15.5 12.1 (15-29) (8.6) (15.0)
(10.11) 30-34 6.1 4.9 5.8 35-39 5.0 3.7 4.6 40-44 4.8 2.7 4.2 45-49 4.6 2.4 3.9 50-
54 4.5 2.1 3.9 55-59 4.6 2.0 4.0 60 & above 3.5 3.8 3.5 All Age Groups 7.2 7.7 7.3
(5.6) (73.4) (6.0) * Unemployment Rates are on Current Daily Status. Figures in
parenthesis give the comparative estimates for 1993-94. Source : NSSO 50th (1993-
94) and 55th (1999-2000) Round Surveys. 30 Table 1.4: Unemployment Rates
among Educated Youth (%) Year Secondary Education & Above All types of Technical
Education Rural Urban Combined Rural Urban Combined 1983 20.4 30.0 20.7 25.0
23.9 24.4 (2.5) (10.7) (4.2) 1987-88 15.9 16.6 16.2 24.0 20.7 22.1 (3.8) (12.1) (5.4)
1993-94 17.0 20.8 18.5 29.0 25.9 27.3 (2.9) (10.8) (4.6) 1999- 2000 12.5 18.3 14.8
22.8 24.5 23.7 (3.7) (11.2) (5.4) Note- Youth means age group 15-29 Source- NSS
Survey Table 1.5: Total Employment and Organised Sector Employment Sector
Employment (million) Growth rate (% per annum) 1983 1988 1994 1999-00 1983-94
1994-00 1. Total population 718.21 790.00 895.05 1004.10 2.12 1.93 2. Total labour
force 308.64 333.49 381.94 406.05 2.05 1.03 3. Total employment 302.75 324.29
374.45 397.00 2.04 0.98 4. Organised sector employment 24.01 25.71 27.37 28.11
1.20 0.53 (100.0) (100.0) (100.0) (100.0) 5. Public sector 16.46 18.32 19.44 19.41
1.52 -0.03 (68.6) (71.3) (71.0) (69.1) 6. Private sector 7.55 7.39 7.93 8.70 0.45 1.87
(31.4) (28.7) (29.0) (30.9) 7. 4 as % of 3 7.93 7.93 7.30 7.08 8. 2 as % of 1 43.0
42.2 42.7 40.4 Note : 1. Total employment figures are on Usual Status (UPSS-
Unemployment rates on usual principal and subsidiary Status) basis. 2. The
organised sector employment figures are as reported in the Employment Market
Information System of Ministry of Labour and pertain to 31st March of 1983, 1994
and 1999. 3. Figures in brackets indicate the percentage of employment in the
public sector and private sector to total oranised sector employment. 31 Source :
Compiled and computed from Commission (2001), Report of the Task Force on
Employment Opportunities, p. 2.25. 1.4.4. Employment policy of the eleventh plan
Scenario of employment and unemployment on the eve of the 11th Plan The
Approach Paper of the 11th Plan has highlighted the following issues: 1. Average
daily status unemployment rate, which had increased from 6.1% in 1993-94 to 7.3%
in 1999-00 increased further to 8.3% in 2004-05. 2. Agricultural employment has
increased at less than 1% per annum, slower than the growth in non-agricultural
employment. 3. Among agricultural labour households which represent the poorest
groups, there was a sharp increase in unemployment from 9.3%in 199-94 to a high
level of 15.3% in 2004-05. 4. Non-agricultural employment expanded robustly at an
annual rate of 4.7% during 1999-2005 but this growth was entirely in the
unorganized sector and mainly in low productivity self-employment. 5. Employment
in the organized sector actually declined by 0.38% per annum during 1994-2000,
despite fairly healthy GDP growth. This is a cause for frustration among the
educated youth who have rising expectations. 6. According to Annual Survey of
industries, real wages stagnated or declined even for workers in the organized
sector although managerial and technical staff did secure large increase. 1.4.5.
Employment Requirements during the Eleventh Plan (2007-2012) On account of the
increasing participation of females, the total increase in labour force will be around
65 million during the 11th Plan. To this may be added the present backlog of about
35 million. Thus, the total job requirements of the 11th Plan work out be 100 million.
The planners aims to provide 65 million additional employment opportunities. As a
consequence, the Approach Paper states: "This will not create full employment, but
it will at least ensure that the unemployment rate falls somewhat." However, even
this modest goal implies that the rate of growth of non-agricultural employment
would need to accelerate to 5.8% per annum from 4.7% in 1999-2005. In other
words, a 32 massive reversal is required from the negative employment growth in
the organized sector witnessed during the last decade. 1.4.6. Promotion of
employment generation in the 11th Plan To generate more employment in the
economy, the 11th Plan states its strategy in the following words: "Additional
employment opportunities in the future will be generated mainly in the services and
manufacturing sector and policy initiatives are needed to support this. Measures
would need to be taken in the Plan to boost, in particular, Labour intensive
manufacturing sector such as food processing, leather products, footwear, textiles
and service sectors such as tourism and construction." 1.4.7. Critique of
employment policy Keeping in view the performance of the last decade of negative
employment growth in the organized sector, the Plan is over-ambitious about a
huge reversal in the form of 15 million jobs. It may noted that total employment in
the organized sector in 2004- was 26.4 million -18.2 million in the public sector and
8.2 million in the private sector. To hope to increase 10 million jobs in the private
organized sector as against the total of 8.24 million jobs at present implies 121%
addition to the existing job creating potential. The estimates are thus highly over-
optimistic and utterly unrealistic. Not only that, to expect profitable public
enterprises to increase job potential in the face of loss making units reducing jobs
by about 2 million is also unrealistic. The total job potential of Central Public Sector
Enterprises in 2005-06 was of the order of 1.65 million. Again to think of an
expansion in their employment by 2.0 million in the next 5 years appears to be
improbable, more so in view of the fact that state level public sector undertakings
are mostly incurring huge losses year after year and would not be able to contribute
to increase in employment. 1.5 Small Scale Enterprises in India A common
classification is between traditional small industries and modem small industries.
Traditional small industries include khadi and handloom, village industries,
handicrafts, sericulture, coir, etc. Modern small-scale industries produce wide range
of goods from comparatively simple items to sophisticated products such as
television sets, electronics control system, various engineering products,
particularly as 33 ancillaries to the large industries. The traditional small industries
are highly labourintensive, while the modem small-scale units make use of highly
sophisticated machinery and equipment. For instance, during 1979-80 traditional
small industries accounted for only 13 per cent of the total output but their share in
total employment was 56 per cent. In that year, total output of traditional small
industries came to be Rs. 4,420 crores and this output was produced with the
employment of 133 lakh workers, the average output of labour in traditional small
industries was roughly Rs. 3,323. As against this, the share of modem small
industries in the total output of this sector was 74 per cent in 197980 but their
share in employment was only 33 per cent. Obviously, these industrial units would
be having higher labour productivity. For instance, in 1979-80 a total output of Rs.
24,885 crores was produced by 78 lakh workers in modem small-scale industries-the
average product of labour being Rs. 31,900. One special characteristic of traditional
village industries is that they cannot provide full time employment to workers, but
instead can provide only subsidiary or part-term employment to agricultural
labourers and artisans. Among traditional village industries, handicrafts possess the
highest labour productivity; besides, handicrafts make a significant contribution to
earning foreign exchange for the country. Under these circumstances, active
encouragement of handicrafts is a must. On the other hand, traditional village and
small industries are largely carried on by labourers and artisans living below the
poverty line, while modem small industries can provide a good source of livelihood.
Hence, if with an expansion of employment, the number of persons living below the
poverty line has also to be reduced, then a rapid and much larger expansion of the
modem small sector will have to be planned. 1.5.1. Role of small-scale industries in
Indian economy The small-scale industrial sector which plays a pivotal role in the
Indian economy in terms of employment and growth has recorded a high rate of
growth since Independence in spite of stiff competition from the large sector and
not soencouraging support from the Government. This is evidenced by the number
of registered units which went up from 16,000 in 1950 to 36,000 units in 1961 and
to 33.7 1akh units in 2000 - 2001. During the last decade alone, the small-scale
sector 34 has progressed from the production of simple consumer goods to the
manufacture of many sophisticated and precision products like electronics control
systems, microwave components, electro-medical equipment, T.V. sets, etc. The
Government has been following a policy of reservation of items for exclusive
development in the small-scale sector. At the time of the 1972 Census of a Small -
Scale Industrial Units, there were 177 items in the reserved list. By 1983, the
reserved list included 837 items for exclusive production in the small-scale sector.
These units produce over 8,000 commodities. Census 2001-02 reported that 97.2%
of the registered SSI units were proprietary, only 1.3 percent were partnerships and
0.5 per cent were private companies and just 0.1% were co-operative. In other
words, the dominant type in the ownership pattern is proprietary with a small
fraction operating as partnerships. Table 1.6: Production, Employment and Exports
in Small Scale Sector Year No. of Units (in lakhs) Production (Rs. Crores)
Employment (Lakhs) Export (Rs. Crores) Registered Unregistered Total At Current
Prices At 1993-94 Prices At Current Prices 1994-95* 19.44 6.27 25.71 298,886
266,054 146.56 29,068 1994-95 11.61 67.99 79.60 122,210 109,116 191.40 29,068
1995-96 11.57 71.27 82.84 148,290 121,649 197.93 36,470 1996-97 11.99 74.22
86.21 168,413 135,380 205.86 39,248 1997-98 12.04 77.67 89.71 189,178 147,824
213.16 44,442 1998-99 12.00 81.36 93.36 212,901 159,407 220.5 48,979 1999-00
12.32 84.83 97.15 234,255 170,709 229.10 54,200 2000-01 13.10 88.00 101.10
161,289 184,428 239.09 69,797 2001-02 13.75 91.46 105.21 282,270 195,613
249.09 71,244 2002-03 14.68 95.42 110.10 311,993 210,636 261.38 86,013 2003-
04 15.54 98.41 113.95 357,733 228,730 271.36 97,644 2004-05 16.57 102.02
118.59 418,263 251,511 282.91 1,24,417 2005-06 18.70 104.70 123.40 476,201
2,77,668 294.90 1,50,242 35 Year No. of Units (in lakhs) Production (Rs. Crores)
Employment (Lakhs) Export (Rs. Crores) Registered Unregistered Total At Current
Prices At 1993-94 Prices At Current Prices Average Annual Growth Rate (1994-95 to
2005- 06) 4.4 4.0 4.1 13.1 8.8 4.5 16.1 *These figures relate to data given by
Ministry of Small Scale Industries earlier. Source: Ministry of Small Industries as
given in Economic Survey (2007-08) and Ministry of Small Scale industries. 1.5.2.
Output and Employment of the Small Industries According to the Third Census, in
2001-02, there were 13.75 lakh units in the registered sector and 91.46 lakh units in
the unregistered sector, thus recording a total number of 105.21 lakh units in the
SSI sector. Ironically, the Census estimated a much lower figure of production by SSI
sector. Keeping these facts in view, the Ministry of Small Scale Industries has
revised the data pertaining to SSI sector. For the purpose of comparison, the figures
given earlier by the Ministry have also been provided in above table. The data
reveal that the total number of SSI units has increased from 79.6 lakhs in 1994-95
to 123.4 lakhs in 2005-06, indicating an annual, average growth rate of 4.1 per
cent, but their production (at 1993-94 prices) increased from Rs. 1,09,116 crores in
1994-95 to Rs. 2,77,668 crores in 2005-06 i.e. an annual average growth of 8.8 per
cent. As a consequence of the increase in SSI units, more especially in the
unregistered sector, employment increased from 191.4 lakhs in 1994-95 to 294.9
lakhs in 2005-06, recording an average growth rate of 4.5 per cent per annum. So
far as exports by the SSI sector are concerned, they increased from Rs. 29,068
crores in 1994-95 to Rs. 1,50,242 crores in 2005-06, recording a growth rate of 16.1
per cent 36 per annum. The Ministry has not changed the data pertaining to
exports. On the whole, it can be stated that during 1994-95 to 2005-06, the SSI
sector recorded an annual average growth rate of production by 8.8%, of
employment by 4.5 per cent and of exports by 16.1 %. This is a creditable
achievement. Obviously, the growth rate of the small-scale sector has been faster
both in terms of output and employment. In other words, the output employment
ratio for the small scale sector is 1: 1.4. The rapid growth of the small-scale
industries has a great relevance in our national economic policies. The growth of the
small sector improves the production of the non-durable consumer goods of mass
consumption. As such, it acts as an anti-inflationary force. If a big push is given to
the small sector, it can become a stabilising factor in a capital-scarce economy like
India by providing a higher output capital ratio as well as a higher employment-
capital ratio. In this connection, we may refer to the relatively low capacity
utilisation of the smallscale industries. The capacity utilisation in the small sector as
a whole was of the order of 53 per cent. There were, however, many units having
high capacity utilisation e.g., industries utilising 60 to 80 per cent of the capacity
included leather goods, readymade garments, tiles, woollen knitwear, etc. Industries
like plastic products had very low capacity utilisation (29 per cent).

PRESENT SCENARIO-
CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA :
CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA

PowerPoint Presentation:
According to the Global Entrepreneurship Monitor (2007) report, Indias High-Growth
Expectation rate is only one-fifth of that of China. while Chinas nascent and new entrepreneurs
appear to be the most growth-oriented, with more than 10 per cent anticipating high growth.
According to the NSS ( National Service Scheme ) 62nd round, in rural India, Almost 50 per cent
of all workers are self-employed 57 per cent among males and nearly 62 per cent among
females, The NSSO (National Sample Survey Organization ) defines a self-employed person as
one who has worked in household enterprises as own-account worker; worked in household
enterprises as an employer or worked in household enterprises as helper. The essential feature
of the self-employed is that they have autonomy (decide how, where and when to produce) and
economic independence (in respect of choice of market, scale of operation and finance) for
carrying out their operation. According to the 5th Economic Census conducted by the Central
Statistical Organization (CSO), there are 41.83 million establishments in the country engaged in
different economic activities other than crop production and plantation.

PowerPoint Presentation:
Five states viz. Tamil Nadu (10.60 per cent), Maharashtra (10.10 per cent),West Bengal (10.05
per cent), Uttar Pradesh (9.61 per cent) and Andhra Pradesh (9.56 per cent) together account
for about 50 percent of the total establishments in the country. The same five states also have
the combined share of about 50 per cent of total employment. Entrepreneurship has gained
greater significance at global level under changing economic scenario. It admits environment of
super mall culture we find plenty of scope for entrepreneurship in trading and manufacturing.
Then who is an Entrepreneur ?????????????? An entrepreneur is a person who is able to look
at the environment, identify opportunities to improve the environmental resources and
implement action to maximize those opportunities. it is important that he should have
entrepreneurial skills that will be needed to improve the quality of life for individuals, families and
communities and to sustain a healthy economy and environment. This is why entrepreneurship
is considered to be a prime mover in development of nations.

PowerPoint Presentation:
Economic structure is very dynamic and extremely competitive due to the rapid creation of new
firms and the exit of 'old' stagnant and declining firms. Redefining entrepreneurship
Organizations will face seven trends in the next decade as they flight to survive, grow and
remain competitive. Speed and uncertainty will prevail. Technology will continue to disrupt and
enable. Demographics will dictate much of what happens in business. Loyalty will erode. Work
will be done anywhere, anytime. Employment as we know it will disappear. Women
Entrepreneur: Women entrepreneurs have been making a significant impact in all segments of
the economy in India, Canada, Great Britain, Germany, Australia and the United States. The
areas chosen by women are retail trade, restaurants, hotels, education, insurance, and
manufacturing. Women takes up business enterprises to Profession as a challenge and an
independent occupation. With the spread of education and new approaches/awareness,

PowerPoint Presentation:
women entrepreneurs are achieving higher level of 3Es, namely: ( i ) Engineering (ii)
Electronics (iii) Energy. Opportunities : Free entry into world trade. Improved risk taking ability.
Governments of nations withdrawn some restrictions Technology and inventions spread into the
world. Encouragement to innovations and inventions. Promotion of healthy completions among
nations Consideration increase in government assistance for international trade. Establishment
of other national and international institutes to support business among nations of the world.
Benefits of specialization. Social and cultural development.

PowerPoint Presentation:
Challenges: Problems of raising capital Difficulty in borrowing fund. Thought-cut completions
endangered existence of small companies. Problems of availing raw-materials. Problems of
obsolescence of indigenous technology Increased pollutions Ecological imbalanced. Problems
of TRIPS (Trade-Related Aspects of Intellectual Property Rights) and TRIMS (Trade-related
Investment Measures). Exploitation of small and poor countries, etc. Suggestions: Govt. should
provide separate financial fund of womens entrepreneur. Govt.should provide her special
infrastructure facilities what ever she Needs. Govt. should arrange special training programs of
women entrepreneurship Govt. should felicitated top ranker womens entrepreneur. Women
entrepreneur should more competitive and efficient in the local & international market. Govt.
should invite successful women entrepreneurs from foreign countries.

PowerPoint Presentation:
Out of total 123.98 million people in India, in the 2002s, females comprise 437.10 million
representing 46.5 percent of the total population. There are 126.48 million women workforce but
as per the 1991 census, only 1, 85,900 women accounting for only 4.5 per cent of the total self-
employed persons in the country were recorded. As per a rough estimate the number of SSIs
are expected to be2.5 billion having 9% women entrepreneurs in to it. Considering this trend,
women participation in another five years was 20 % more, raising the number of women
entrepreneurs to about 5,00,000. Combined effect of motivational drive, preparation of
information material, conducting training, creation of women industrial estates, and training of
promoters and use of mass media all together is bound to accelerate the process of women
entrepreneurship development. psycho-social factors: which is stopping growth of women
entrepreneurs Poor self-image of women Inadequate motivation Discriminating treatment Faulty
socialization

PowerPoint Presentation:
Role conflict Cultural values Lack of courage and self-confidence Inadequate encouragement
Lack of social acceptance Unjust social, economic and cultural system Lack of freedom of
expression Afraid of failures and criticism Susceptible to negative attitude Low dignity of labour.
Rural Entrepreneur : Rural Entrepreneur Succeeding as an entrepreneur and an innovator in
todays world. Indian rural economy is also experiencing behavior of entrepreneurial. Aim of
most farmers is to earn profits from farming as from any other business, There for
entrepreneurship is not simply adoption of new activity but it is transformation of a person from
traditional of modern.

PowerPoint Presentation:
Opportunities For Rural Entrepreneurs: Crashed Scheme for Rural Development Food for Work
Programs National Rural Employment Programs Regional Rural Development Centers
Entrepreneurship Development institute of India Bank of Technology Rural Innovation Funding
Social Rural Entrepreneurship. Challenges For Rural Entrepreneurs: Growth of Mall Culture
Poor Assistance Power Failure Lack of Technical know how Capacity Utilization Infrastructure
Sickness

PowerPoint Presentation:
Present Entrepreneurial Scenario : There are ample opportunities in small businesses are there
in India such opportunities will transform India in the coming future. For such transformation to
happen there needs to be supporting both at the governmental and societal level. The scope of
entrepreneurship development in our country is tremendous. since there is widespread concern
that the acceleration in GDP growth in the post reforms period. Results of the 57th round of the
National Sample Survey Organization (NSSO) show that unemployment figures in 2003-04
were as high as 8.9 million. Incidentally, one million more Indian joined the rank of the
unemployed between 2005-06 & 2007-08. The rising unemployment rate (9.2% 2008 est.) in
India has resulted in growing frustration among the youth. In addition there is always problem of
underemployment. As a result, increasing the entrepreneurial activities in the country is the only
solution left with govt. The reports prepared by Planning Commission to generate employment
opportunities for 10 crore people over the next ten years have strongly recommended self-
employment as a way-out for teaming unemployed youth.

PowerPoint Presentation:
Supporting Organizations: The Government has setup various organizations which specialize in
industry promotion & entrepreneurship development in different sectors. The organizations
provide policy framework support, in addition to training & financial aid. Khadi & Village
Industries Commission COIR Board Small Industries Development Bank of India National
Manufacturing Competitiveness Council National Skill Development Corporation State Level
Initiatives: Individual states across India have setup specially focused organizations which work
towards the development & support of small scale industries. These organizations run specific
promotional schemes in addition to providing financial support to industries. List of State
Financial Corporations (SFCs) List of State Industrial Development Corporations (SIDCs)
PowerPoint Presentation:
Development Support Organizations: Government of India has also set up various organizations
that are at the forefront in providing support and training for the budding entrepreneurs. Few of
them are: Central Footwear Training Institute - Agra Indo-German Tool Room - Ahmedabad
Indo-German Tool Room -Aurangabad Central Institute of Tool Design - Hyderabad Central Tool
Room - Ludhiana Indo-German Tool Room - Indore Central Tool Room & Training Center -
Bubhaneshwar Circle Telecom Training Center - Kolkata Indo-Danish Tool Room - Jamshedpur
Institute for Design of Electrical Measuring Instruments Electronics Service & Training Center -
Ramnagar Fragrance & Flavour Development Center - Kannuaj

PowerPoint Presentation:
Industry Associations: There are a variety of associations which help & encourage the cause of
industry. These associations provide support & strength to the entrepreneurs & the
organizations they setup. Additionally, industry association networks are crucial in steering
government policy & action as well. Complete list of Industry Associations National Bank for
Agriculture & Rural Development (NABARD) Laghu Udyog Bharati (LUB) Federation of Indian
Chambers of Commerce and Industry (FICCI) Confederation of Indian Industry (CII) The
Associated Chambers of Commerce and Industry of India (ASSOCHAM) Federation of Indian
Micro and Small & Medium Enterprises (FISME) World Association for Small and Medium
Enterprises (WASME) India Trade Promotion Organisation (ITPO) Technology Innovation
Management and Entrepreneurship Information Service Asian and Pacific Centre for Transfer of
Technology (APCTT)

PowerPoint Presentation:
International Organizations: Akin to national industry and sector based networks, an even higher
responsibility lies with global associations which chart out the developmental role to be played
by various international governments while forming their trade & industry policies. International
Network for SMEs WIPO Small and Medium-Sized Enterprises United Nations Industrial
Development Organization World Trade Organisation European Commission - Enterprise &
Industry Innovation - SMEs Canadian International Development Agency Small and Medium-
sized Enterprise Center, Canada SME Centre, Hongkong Small and Medium Enterprises in
Ireland SME Information of Japan

PowerPoint Presentation:
World Trade Centre, Mumbai Small and Medium Enterprise Development Authority, Pakistan
Swedish International Development Agency Department for International Development, UK
Ministry of Economy, Mexico Small and Medium Enterprises Development, Washington, USA .
CONCLUSIONS : Entrepreneurship development is the key factor to fight against
unemployment, poverty and to prepare ourselves for globalization in order to achieve overall
Indian economic-progress.

Entrepreneurship has gained greater significance at


global level under changing economic scenario. Global
economy in general and Indian economy in particular is
poised for accelerated growth driven by
entrepreneurship. Admits environment of super mall
culture we find plenty of scope for entrepreneurship in
trading and manufacturing.
An entrepreneur is a person who is able to look at the
environment, identify opportunities to improve the
environmental resources and implement action to
maximize those opportunities (Robert E. Nelson) it is
important to bear in mind the entrepreneurial skills that
will be needed to improve the quality of life for
individuals, families and communities and to sustain a
healthy economy and environment. Taking this into
consideration, we will find that each of the traditional
definitions has its own weakness (Tyson, Petrin, Rogers,
1994, p. 4).
The first definition leaves little room for innovations that
are not on the technological or organizational cutting
edge, such as, adaptation of older technologies to a
developing-country context, or entering into export
markets already tapped by other firms. Defining
entrepreneurship as risk-taking neglects other major
elements of what we usually think of as
entrepreneurship, such as a well-developed ability to
recognize unexploited market opportunities.
Entrepreneurship as a stabilizing force limits
entrepreneurship to reading markets disequilibria, while
entrepreneurship defined as owning and operating a
business, denies the possibility of entrepreneurial
behavior by non-owners, employees and managers who
have no equity stake in the business. Therefore, the most
appropriate definition of entrepreneurship that would fit
into the rural development context, argued here, is the
broader one, the one which defines entrepreneurship as:
a force that mobilizes other resources to meet unmet
market demand, the ability to create and build
something from practically nothing, the process of
creating value by pulling together a unique package of
resources to exploit an opportunity.
It combines definitions of entrepreneurship by Jones and
Sakong, 1980; Timmons, 1989; Stevenson, et al., 1985.
Entrepreneurship so defined, pertains to any new
organization of productive factors and not exclusively to
innovations that are on the technological or
organizational cutting edge, it pertains to
entrepreneurial activities both within and outside the
organization. Entrepreneurship need not involve
anything new from a global or even national perspective,
but rather the adoption of new forms of business
organizations, new technologies and new enterprises
producing goods not previously available at a location
(Petrin, 1991).
This is why entrepreneurship is considered to be a prime
mover in development and why nations, regions and
communities that actively promote entrepreneurship
development, demonstrate much higher growth rates
and consequently higher levels of development than
nations, regions and communities whose institutions,
politics and culture hinder entrepreneurship. An
entrepreneurial economy, whether on the national,
regional or community level, differs significantly from a
non-entrepreneurial economy in many respects, not only
by its economic structure and its economic vigorousness,
but also by the social vitality and quality of life which it
offers with a consequent attractiveness to people.
Economic structure is very dynamic and extremely
competitive due to the rapid creation of new firms and
the exit of old stagnant and declining firms Redefining
entrepreneurship and innovation Succeeding as an
entrepreneur and an innovator in todays world is vastly
different from what it was earlier. Organizations will face
seven trends in the next decade as they flight to survive,
grow and remain competitive.

Speed and uncertainty will prevail.


Technology will continue to disrupt and enable.
Demographics will dictate much of what happens in
business.
Loyalty will erode.
Work will be done anywhere, anytime.
Employment as we know it will disappear.
Women Entrepreneur:
Women entrepreneurs have been making a significant
impact in all segments of the economy in India, Canada,
Great Britain, Germany, Australia and the United States.
The areas chosen by women are retail trade, restaurants,
hotels, education, cultural, cleaning, insurance and
manufacturing The New Thrust suggests following two
factors pulling or pushing women in an entrepreneurship
Factors leading women to be an entrepreneur:Women
entrepreneurs choose a Women takes up business
enterprises to Profession as a challenge and an get over
financial difficulties and respond- adventure with an
urge to do some visibility is thrust on them due to
family -thing new, liking for business and circumstances.
to have an independent occupation. With the spread of
education and new approaches/awareness, women
entrepreneurs are achieving higher level of 3Es, namely:
(i) Engineering (ii) Electronics (iii) Energy. Though we
should not forget certain Psycho-Social Barriers which
hinders the growth of women entrepreneurs.
Opportunities :
Free entry into world trade.
Improved risk taking ability.
Governments of nations withdrawn some
restrictions
Technology and inventions spread into the world.
Encouragement to innovations and inventions.
Promotion of healthy completions among nations
Consideration increase in government assistance for
international trade.
Establishment of other national and international
institutes to support business among nations of the
world.
Benefits of specialization.
Social and cultural development
Challenges:
Problems of raising equity capital
Difficulty in borrowing fund.
T hought-cut completions endangered existence of
small companies.
Problems of availing raw-materials.
Problems of obsolescence of indigenous technology
Increased pollutions Ecological imbalanced.
Problems of TRIPS and TRIMS.
Exploitation of small and poor countries, etc.
Suggestions
Govt. should provide separate financial fund of
womens entrepreneur.
We should provide her special infrastructure
facilities what ever she deeds.
Govt. should arrange special training programmes of
women entrepreneurship
Govt. should felicitated top ranker womens
entrepreneur.
Women entrepreneur should more competitive and
efficient in the local & international market.
Use should invite successful women entrepreneurs
from foreign countries.
Women Entrepreneurship in India
Out of total 940.98 million people in India, in the 1990s,
females comprise 437.10 million representing 46.5
percent of the total population. There are 126.48 million
women workforce but as per the 1991 census, only 1,
85,900 women accounting for only 4.5 per cent of the
total self-employed persons in the country were
recorded. As per a rough estimate the number of SSIs are
expected to be2.5 billion having 9% women
entrepreneurs in to it. Considering this trend, women
participation in another five years was 20 % more,
raising the number of women entrepreneurs to about 5,
00,000. Combined effect of motivational drive,
preparation of information material, conducting
training, creation of women industrial estates, and
training of promoters and use of mass media all together
is bound to accelerate the process of women
entrepreneurship development. Some psycho-social
factors impede the growth of women entrepreneurs are
as follows:

Poor self-image of women


Inadequate motivation
Discriminating treatment
Faulty socialization
Role conflict
Cultural values
Lack of courage and self-confidence
Inadequate encouragement
Lack of social acceptance
Unjust social, economic and cultural system
Lack of freedom of expression
Afraid of failures and criticism
Susceptible to negative attitude
Low dignity of labour
What New Awareness has to say about it? The new
Industrial Policy of the Government of India has
specially highlighted the need for special
entrepreneurship programmes for women entrepreneurs
in the nature of product-process oriented courses to
enable them to start small-scale industries. A majority of
women entrepreneurs are from the middle class families
who have low technical education, less family
responsibilities but desire to become entrepreneurs. This
potential should be identified and tapped.
Rural Entrepreneur Succeeding as an entrepreneur and
an innovator in todays world is vastly different from
what it was earlier. Besides the existing generation of
entrepreneurship also is passing through the transition
period. They experience financial resource limitation to
promote or to develop a venture and there is also look of
research and innovation to meat with marketing
challenges. Indian rural economy is also experiencing
behavior of entrepreneurial. Aim of most farmers is to
earn profits from farming as from any other business, if
he determines the objectives. A farm business necessary
requires deliberate decision and proper investment, after
assessing risk and available resources to maximize profit.
There for entrepreneurship is not simply adoption of new
activity but it is transformation of a person from
traditional of modern India is known as Home spices
and is in fact the largest producer, consumer and
exporter of spices in the world. Though, cumin
cultivation requires more inputs and production prices
are high but last two years monetary output is uncertain.
It is also sensitive crop to many disease, pest and also
highly risky crop considering natural hazards, as well as
the day to day fluctuating wholesale price index.
Organizations will face seven trends in the next decade as
they flight to survive, grow and remain competitive.

Speed and uncertainty will prevail.


Technology will continue to disrupt and enable.
Demographics will dictate much of what happens in
business.
Loyalty will erode.
Work will be done anywhere, anytime.
Employment as we know it will disappear.
Opportunities For rural Entrepreneurs.
Crashed Scheme for Rural Development
Food for Work Programme
National Rural Employment Programme
Regional Rural Development Centers
Entrepreneurship Development institute of India
Bank of Technology
Rural Innovation Funding
Social Rural Entrepreneurship.
Challenges For Rural Entrepreneurs
Growth of Mall Culture
Poor Assistance
Power Failure
Lack of Technical know how
Capacity Utilization
Infrastructure Sickness
Present Entrepreneurial Scenario
Mr. Ratan Tata had clearly articulated to us his vision
for Tata Motors. The company has very successfully
launched its passenger cars- Indica and Indigo and
recently in January 2008 they have set a benchmark in
the history of four-wheeler industry all around the globe
by offering their masterpiece NANO to be the worlds
cheapest car worth 1 Lac rupees only. The company has
also taken over the business of Corus, a giant in the steel
industry.
Vijay Mallya and talk of innovation, to hit the Indian
market. Vijay Mallyas mission was to create brand
Kingfisher as a generic brand for lifestyle. There
happened to be some sort of compatibility between the
way he lived his life and the brand image that he was
thinking to create. One of the key ingredients of
innovation is to simply be yourself. He did the
restructuring process of United Breweries without any
sense of embarrassment. We are all sometimes stymied,
curbed and limited by ourselves. Philips, Sony, Honda,
Ford provide the signposts of entrepreneurship today for
all to emulate. Some of these have come up only in recent
years and from small beginnings. In India, too, one sees
glimpses of such entrepreneurship. ICICIs experience
tells a great deal about entrepreneurship good as well
as not so good.
Following Indian firms will keep on dominating the
corporate world in the future too

Tata Steel & Motors


Indian Oil Corporation
Reliance industries
Infosys Technologies
Moser Baer
Bharti Tele-ventures
Twaalfhoven and Indivers (1993, pp. 3-4), they are run
by dynamic entrepreneurs, who manage and lead their
companies not only to remain in the business but to
expand it. Dynamic entrepreneurs look for growth, they
do not have only a vision but are also capable of making
it happen. They think and act globally, look for
expansion, rely on external resources, seek professional
advice or they work with professional teams. They
challenge competitors instead of avoiding them and take
and share risks in a way that leads to success. In this way
economic vitality of a country largely depends on the
overall level of entrepreneurial capacity, i.e., on its ability
to create rapidly growing companies
Summary
The entrepreneurs provide a magical touch to an
organization, whether in public or private or joint sector,
in achieving speed, flexibility, innovativeness, and a
strong sense of self-determination. They bring a new
vision to the forefront of economic growth.

CURRENT SCENARIO-

The Indian employment market is uncertain. The number of unemployed is ever


increasing. In this context, both the Central and State governments are working on
to develop entrepreneurship as a recourse to employment problems. In order to do
so, there needs to be specific skill and knowledge set needed from the individual
who is looking for entrepreneurship. The dimension of the entrepreneurship is
changing not from its perceptive form but also from its origin. The lusts of
entrepreneurship in rural and urban areas are different. The think tank has to
continuously surrogate the aim of the entrepreneurship. The entrepreneurship is
taking its toll not only from the customers' side or from the desi companies or from
the unemployed youth, or from the nation but also from the lack of resources and
skill and from the brain drain. The government and the non-government
organizations and academicians are in favor to enhance the skill and the quality of
the entrepreneurship in our country. The solutions to this problem can be easily
made if positive attitude and the tilt for entrepreneurship from us can be enchanted.
Keywords: Entrepreneurship, employment, resources 1. INTRODUCTION
Unemployment is the main problem that our country faces now. In this situation it is
necessary to become familiar with the multi dimensional aspects of
Entrepreneurship. Entrepreneur is a person who innovates, allocates and manages
the factors of production. This particular person has the ability to perceive latest
economic opportunities and to device their exploitation. This particular person is the
supplier of resources, supervisor and coordinator and ultimate decision maker.
Entrepreneur has the greatest chance of success by focusing on a market niche
either too small or too new to have been noticed by established businesses. The
new generation entrepreneurs are well educated and are capable of understanding
the fluctuating trends of markets. The entrepreneurs in most of the cases are having
business family background. In certain cases the new generation has started after
facing a lot of difficulties from their first generation. In these cases the new
generation is very careful in selecting their business career. Entrepreneurs are the
driving forces behind any economy. They create large corporations out of backyard
enterprises. Henry ford, Irving Berlins, Bill Gates, King Gillette and Rose Perot were
people who envisioned a dream and took risk to achieve this Dream. They marched
to a different beat. They were innovators, inventors, and adventurers.
Entrepreneurship is a social phenomenon and it is not inherent within a person,
rather it exists in the interaction between people. To be a successful Entrepreneur it
requires practicing as a manager by acquiring various skills and efforts in learning
to understand a business. Entrepreneurship is the future of the modern society. It
reflects a ray of hope for the unemployed to earn a living and maintain a dignified
life and also for the economic development of the country. The first half of the
present century witnessed a gradual change in the scenario. During this period,
there was a visible tendency among the natives to take to business. The spread of
secular education, rising nationalist feelings and social reform movements must
have given a fillip to this initial phase of the emergence of entrepreneurship. The
independent India thus could claim to have created a conductive climate for spread
of entrepreneurship. Entrepreneurship has been a male-dominated phenomenon
from the very early age, but time has changed the situation and brought women as
today's most memorable and inspirational entrepreneurs. In almost all the
developed countries in the world women are putting their steps at par with the men
in the field of business. Except some Islamic countries of the world the law of the
country has been made in favor of the development of women entrepreneurship.
The glorifying corporate has portrayed that they have progressed in last fifteen
years after the new industrial policy of 1991 because of the Entrepreneurship and
the conducive Entrepreneurship environment in India. We can be an entrepreneurial
nation because we have many reasons for it * Freedom of speech and willingness to
disagree foster creative solutions * Very high caliber human capital * Diversity in the
true sense of the term, the key to stimulate intellectual discourse * Functioning
capital market and venture capital sector to find new ideas * Young population is
more rebellious and wants to challenge the rules of the game * Entry of global
competitors into India threatens the status quo * Lack of legacy technologies which
offer leapfrogging possibilities * Unique market structure, customer needs and
affordability VOL. 2, NO. 1, March 2013 International Journal of Economics, Finance
and Management 2013. All rights reserved. http://www.ejournalofbusiness.org 84
* Excellent institutional infrastructure like Banasthali Vidyapith * Stress on
Entrepreneurship, Science and technology education. So at last we can conclude
that if India has to achieve its projected 10 % growth rate she has to pursue and
inculcate the youth perception in Entrepreneurship as the youth is the nation builder
and going to form the next league of the enterprise icons in our nation. In this paper
the researcher is going to enlighten the scenario of entrepreneurship in India by
discussing following: a. Entrepreneurship in Independent India b. The Growth of
Entrepreneurship in India c. Problems & Modern Avenues of the Women
Entrepreneurship d. Entrepreneurship & Advertising e. Entrepreneurship & Small
Business a. Entrepreneurship in Independent India In mixed economy, as India was
defined by architects of this republic, with the public sector having the definite
upper hand, the role of the state becomes very crucial. By its very nature such an
economic system could not adequately focus entrepreneurs as catalyst of economic
development. The state rather assumed the role of the major entrepreneur. Possibly
and rightfully so, the overriding concern of the newly independent country related
to correcting the anomalies and distortions created by the colonial rule. Issues like
employment generation, distributive justice and balanced regional development
thus occupied the centre stage of industrial policy making in India. The first
Industrial policy resolution of 1948 was a solid statement of the country's
philosophy of growth, the vital aspect of which was industrialization under
government regulation. Naturally neither this policy nor the subsequent ones made
any specific reference to the entrepreneur or entrepreneurship. It is interesting to
note that even the small scale sector, which later came to be known as ' the
breeding ground of indigenous entrepreneurship', has been promoted and nurtured
for its potential for addressing the larger developmental concerns. Such concerns,
together with a gradually expanding public sector had set out a framework of
industrialization where the cornerstones were controls, regulation and restrictions
for the large industries and a wide protective umbrella with special incentives and
institutions for the small ones. This was the scenario till late 1980s. In spite of the
domineering presence of large and medium enterprises in the economic scene (the
history of many such enterprises goes back to the pre-independence era) it is the
small sector that has always dominated the inquiries into Indian entrepreneurship.
In fact, this is quite characteristic of many of the developing countries. The reason
could well be that it is in the small enterprise that the presence of the entrepreneur,
the most visible. Also in a country like India which is vast , diverse, and less
developed, small enterprises have a very definite role to play not only by
contributing towards employment and income generation, but also in attending to
the specific needs of a large proportion of customers. More importantly, the small
scale sector has helped widen the entrepreneurial base by giving rise to a new class
of entrepreneurs from the ranks of employees, business executive, technicians and
professionals. b. The Growth of Entrepreneurship in India The late sixties and early
seventies witnessed a few sporadic attempts to create entrepreneurs from
nontraditional communities with a view to breaking the monopoly of the dominant
groups and diversifying the entrepreneurial base in the country. The state of Gujarat
was the forefront of this movement. By the late sixties it became quite evident that
two resources are the most critical (in spite of favorable policies) for development of
entrepreneurship, finance (credit) and managerial capabilities. When industrial
development picked up in the sixties the bankers limited credit mainly to
established industrialists and merchants for existing projects with assured success
and sufficient collaterals. A study of 53 projects financed by banks and the Gujarat
State Financial Corporation during the period 1965-68 revealed many interesting
things. More than two thirds of institutional loans were for diversifications and
expansion of existing enterprises. Of the new loans, 30% were given to merchants
and traders with adequate financial resources and hence the required collateral. The
entrepreneur's financial stake stood very high in the transactions that a debt equity
ratio 1:1. Such policies evidently were holistic to an aspiring and an otherwise
competent young entrepreneurs but without enough financial resources and
tangible assets. As an innovative alternative to the conventional banking system an
Industrial Investment Corporation was set up as a State company in Gujarat in 1968
with attractive and unconventional credit schemes. The task next was to identify
and groom potential new entrepreneurs from a variety of socioeconomic
backgrounds. There has been a sizzling opportunity in the corporate with very
lucrative pre-requisite which is being driven away in case of the youth not opting for
Entrepreneurship. The glorifying corporate has portrayed that they have progressed
in last fifteen years after the new industrial policy of 1991 because of the
Entrepreneurship and the conducive Entrepreneurship environment in India. The
entrepreneurship development program with well designed inputs for motivating,
informing and skilled entrepreneurial individuals was pioneered in 1970 Despite
efforts made by a host of institutions, only less than 20% of the new entrepreneurs
have access to training every year. This means that a large mass of VOL. 2, NO. 1,
March 2013 International Journal of Economics, Finance and Management 2013.
All rights reserved. http://www.ejournalofbusiness.org 85 potential entrepreneurs
are still outside the reach of training interventions. When we compare ourselves
with China we find that China progressed more than we did though which they
cumulate on the following grounds: * Population (2002): China 1.28 billion; India
1.05 billion * Population Growth Rate percent (2002): China 0.87; India 1.51 * Infant
Mortality per 1,000 live births (2002): China 27; India 61 * Average Annual Real GDP
Growth Rate percent (1990-2000): China 9.6: India 5.5 * Foreign Direct Investment
(2001): China $44.2 billion; India $3.4 billion * Population in Poverty (2002): China
10 percent; India 25 percent * Labor Force (1999): China 706 million; India 406
million * Fixed Lines and Mobile Phones per 1,000 people (2001): China 247.7; India
43.8 * Size of Diaspora: China 55 million; India 20 million (Sources: CIA World Fact
book 2002; ) c. Problems & Modern Avenues of the Women Entrepreneurship:
Women Entrepreneurs may be defined as the women or a group of women who
initiate, organize and operate a business enterprise. Government of India has
defined women entrepreneurs as an enterprise owned and controlled by a women
having a minimum financial interest of 51% of the capital and giving at least 51% of
employment generated in the enterprise to women. Like a male entrepreneurs a
women entrepreneur has many functions. They should explore the prospects of
starting new enterprise; undertake risks, introduction of new innovations,
coordination administration and control of business and providing effective
leadership in all aspects of business. It is a general belief in many cultures that the
role of women is to build and maintain the homely affairs like task of fetching water,
cooking and rearing children. Since the turn of the century, the status of women in
India has been changing due to growing industrialization, urbanization, spatial
mobility and social legislation. With the spread of education and awareness, women
have shifted from kitchen to higher level of professional activities. Entrepreneurship
has been a male-dominated phenomenon from the very early age, but time has
changed the situation and brought women as today's most memorable and
inspirational entrepreneurs. In almost all the developed countries in the world
women are putting their steps at par with the men in the field of business. Except
some Islamic countries of the world the law of the country has been made in favor
of the development of women entrepreneurship. Women in business are a recent
phenomenon in India. By and large they had confide themselves to petty business
and tiny cottage industries. Women entrepreneurs engaged in business due to push
and pull factors. Which encourage women to have an independent occupation and
stands on their own legs. A sense towards independent decision-making on their life
and career is the motivational factor behind this urge. Saddled with household
chores and domestic responsibilities women want to get independence Under the
influence of these factors the women entrepreneurs choose a profession as a
challenge and as an urge to do something new. Such situation is described as pull
factors. While in push factors women engaged in business activities due to family
compulsion and the responsibility is thrust upon them. Women in India are faced
many problems to get ahead their life in business. Some of them are as following: i.
Male-female competitions ii. Family obligations iii. Lack of the knowledge of
entrepreneurial activities, iv. Lack of the knowledge of alternative sources of raw
materials v. Lack of the knowledge of technological change vi. Lack of risk taking
attitude vii. Low level business skills etc. Other then these problems some avenues
are also available for women entrepreneurship which can be described in
subsequent paragraph. The efforts of Udyogini an NGO may be cited here as an
example for development and training of women entrepreneurs. Udyogini was set
up to co-ordinate and facilitate management training for grassroots women's groups
for the World Bank Institute-funded Women's Enterprise Management Training
Outreach Program (WEMTOP). This was a three-year participatory action learning
project aimed at strengthening the capacity of intermediary NGOs to deliver
management training to poor women micro entrepreneurs in 1992. The training
program consisted of Grassroots Management Training (GMT) carried out for women
producers and the Training of Enterprise Support Teams (TEST) for the trainers of
GMT. The trainings were carried out through NGOs who were responsible for group
formation and bringing together the women. NGO staff was trained as trainers or
Enterprise Support Teams (ESTs). The project was based on a package completion
approach. It was recognized that training alone would not be sufficient for
promotion of enterprises. A number of other linkages - forward and backward -
would be necessary. However it was thought that the field based NGOs will provide
these other linkages. During the WEMTOP phase, Udyogini worked with 21 Voluntary
Organizations (NGOs) in three states of Orissa, Bihar, and Rajasthan. A total of 130
trainers and 1,077 producer women were trained. VOL. 2, NO. 1, March 2013
International Journal of Economics, Finance and Management 2013. All rights
reserved. http://www.ejournalofbusiness.org 86 Udyogini has come a considerable
distance since its inception and has acquired critical knowledge of gender and micro
enterprise promotion at the grassroots both through its support work with partner
NGOs and its programs in the field. d. Entrepreneurship & Advertising Advertising is
paid and/or sometimes free communication through a medium in which the sponsor
is identified and the message is controlled. Some organizations that frequently
spend large sums of money on advertising but do not strictly sell a product or
service to the general public include: political parties, interest groups, religion-
supporting organizations and militaries looking for new recruits. Additionally, some
non-profit organizations are not typical advertising clients and rely upon free
channels, such as public service announcements. For instance, a well-known
exception to the use of commercial advertisements is a Krispy Kreme doughnut
which relies on word-of-mouth. The new entrepreneurs are having almost all the
latest facilities like internet, mobile etc. to know the pulse of the customers. Such
type of awareness made them to make necessary modifications in their business.
They can utilize almost all the latest technologies of advertisement for making their
business a successful one. The entrepreneurs are not simply profit motives, but they
are maintaining the customer relationship. They are very much bothered of the
customer satisfaction. They consider "delighted customer "as the backbone of the
business. For this entrepreneurs are very careful in selecting the latest advertising
technologies as well as tools. The entrepreneurs are specifically stressing on the
proportion of the output and the content of the advertisement, this is because they
believe that the life blood of the business is the "cheerful customers". e.
Entrepreneurship & Small Business Although the state's manufacturing sector has
taken hard hits, it is expected to remain a critical part of the economy for the
foreseeable future, especially manufacturing tied to growth industries such as
industrial machinery, chemicals, electronic equipment and biotechnology. But many
of these industries are choosing to locate near urban areas, where educational
levels are higher and university research support is more readily available. The days
when nearly every small town could expect to have two or three plants providing
jobs for local residents without a college education -- and economic developers
could expect a steady supply of new industrial prospects -- are gone. The ability of
rural communities to rebound is hampered further by an ongoing brain drain. Small
towns lose what might be their best assets as the college- educated children of rural
families build their futures in urban areas, attracted by better jobs, higher wages
and broader lifestyle opportunities. Armed with this knowledge, the Rural Center has
been investigating entrepreneurship and small business development as a means of
creating jobs, building wealth and reversing brain drain in rural communities. In the
spring of 2003, the center took a close look at the status of entrepreneurship in
rural North Carolina. A vital partner in this examination was the national Center for
Rural Entrepreneurship. Together, the two organizations held focus group sessions
with entrepreneurs in every region of the state and interviewed dozens of business
and economic development specialists. While most businesses in rural North
Carolina are small to medium in size, their combined economic impact is
substantial. There are 98,000 establishments in North Carolina's 85 rural counties.
95 percent of these establishments employ fewer than 50 people. In fact, more
than 75 percent employ fewer than 10 people. Establishments with fewer than 50
employees generate $14.5 billion in wages and provide jobs for 614,000 people.
While the largest establishments (100 employees or more) reduced their payrolls by
42,000 jobs between 1998 and 2002, establishments with fewer than 50 employees
created 26,760 new jobs and added $2.3 billion to their payrolls. All of this is in
addition to rural North Carolina's 230,000 self-employed individuals, who generated
more than $8 billion in receipts in 2002. 2. CONCLUSION Indians have
entrepreneurial capacity. However the society and government not very
encouraging towards entrepreneurship. To a large extent, the Indian society is risk
averse. People usually seek secure and long-term employment, such as government
jobs. The physical infrastructure needs to be improved. Social Attitudes, lack of
capital, inadequate physical infrastructure and lack of government support are
major factors of hindrance. India is the fifth largest economy in the world (ranking
above France, Italy, the United Kingdom, and Russia) and has the third largest GDP
in the entire continent of Asia. It is also the second largest among emerging nations.
The liberalization of the economy in the 1990s has paved the way for a huge
number of people to become entrepreneurs. Moreover, in India, the post-
liberalization and globalization era has brought with it a growing middle class -
roughly estimated to be 250 million - and rising disposable incomes. This presents a
huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can
make the best of this by catering to various demands of this segment. India, with its
abundant supply of talent in IT, management, and R&D, has become the hot bed of
outsourcing of services from all parts of the globe where companies can reduce
their costs, but not their quality [If the foreign company chooses the right Indian
partner]. VOL. 2, NO. 1, March 2013 International Journal of Economics, Finance and
Management 2013. All rights reserved. http://www.ejournalofbusiness.org 87 In
terms of improvement, there needs to be an increase in the quality and quantity of
VC / Angel Investors in India. Also, the Governments need to still continue reducing
the administrative burden on entrepreneurs, and coordinate among their agencies
to ensure that the necessary resources are directed where they are needed. The
physical infrastructure needs to be improved. Socially, the Indian society is adapting
to a more risk friendly environment and also looking for jobs in the private sector.
So at last we can conclude that the lust for Entrepreneurship is limitless and
engulfing and the act has to be enlightened so that its fruit can be reaped as early
as possible. The think tank and the panchyati raj cannot survive in our country if no
livelihood through entrepreneurship can be provided to the entire population of our
country. The fate and development ladder is the Entrepreneurship which today
needs a new look and a good framework as well a vibrant policy for its survival and
long life. Entrepreneurship in India can be more lauded if we can capitulate the
transformation process of the youth which had started in our nation and could live
long and continue if more doors can be opened in their favor because they are
going to be Entrepreneurial citizens of tomorrow. Entrepreneurship must be molded
properly with entrepreneurial traits and skills to meet the changes in trends,
challenges global markets and also be competent enough to sustain and strive for
excellence in the entrepreneurial arena. REFERNCEES [1] Sen., A.
(1983)"Development which way to go? The Economic Journal93 (December), 745-
762 [2] 4P's Business and Marketing" The Entrepreneur's Day out (31 March-13
April)- 109-110 [3] "Women in Human Resource Development" a technical paper
prepared for the APEC ministerial meeting on women. [4] Marci Syms, Syms
Corporation, Second Generation Entrepreneurs in Family Business Face New
Challenges, Fairleigh Dickinson University, Florham. [5] Monalisa Bandyopadhyay,
"Motivation through entrepreneurship", India info line, 19-Dec-2005. [6] Gifford
Pinchot III, Why You Don't Have to Leave the Corporation to Become an
Entrepreneur, Harper & Row, 1985. [7] Benkin Chandra .V.Vaidya,"Entrepreneurship
Development-Transforming Rural Scenario", Kurukshethra, December 2003, Volume
52, No.2. [8] B.S.Rathore and S.K.Dhameja,"Entrepreneurship in the 21st Century"
Rewat Publications, pp.20-65. [9] Andrew Keen, "The second generation of the
Internet has arrived. It's worse than you think", The daily Standard,15th February
2006. [10] Schemes and Programmes of Ministry of Small Scale Industries and
Ministry of Agro & Rural Industries, Govt. of India Employment News Weekly 2005-
Taori ,Dr. Kamal - Entrepreneurship in the Decentralised Sector Mahanty Sangram
Keshari Fundamentals of Entrepreneurship Prentice Hall of India

Entrepreneurship can be viewed as a creative and innovative response to the


environment and an ability to recognize, initiate and exploit an economic
opportunity. An entrepreneur is an innovator who introduces something new in an
economy. Entrepreneurship is doing things that are generally not done in the
ordinary course of business. Innovation may be in; introducing a new manufacturing
process that has not yet been tested and commercially exploited, introduction of a
new product with which the customers are not familiar or introducing a new quality
in an existing product, locating a new source of raw material or semi finished
product that was not exploited earlier, opening a new market, hitherto unexploited,
where the company products were not sold earlier, developing a new combination
of means of production. Innovation involves problem solving and an entrepreneur is
a problem solver. An entrepreneur does things in a new and a better way. A
traditional businessman working in a routine manner is not entrepreneurial.
Innovation leads to the dynamics that governs the interaction between science,
industry, and society. Innovative organization wants must have to prepare for
renewing the offerings and its delivery process to its stakeholders to survive in
todays globalised world. In the present paper, concept of innovation and
entrepreneurship has been studied by the authors. The paper will also include
examples of innovative entrepreneurs and how the innovation in products/services
helps the business in survival and growth in present globalised market place.
______________________________________________________________________________ 1.
INTRODUCTION 1.1 ENTREPRENEURSHIP The basic question which we ask ourselves
whenever we are talking about entrepreneurship development are - What is
entrepreneurship? Who is an entrepreneur? And the answers to these questions are
even easier than the questions itself. An entrepreneur is a person who develops a
new idea and takes the risk of setting up an enterprise to produce a product or
service which satisfies customer needs. All entrepreneurs are IRJC International
Journal of Marketing, Financial Services & Management Research Vol.1 Issue 8,
August 2012, ISSN 2277 3622 www.indianresearchjournals.com 197 business
persons, but not all business persons are entrepreneurs. Entrepreneurship is the
activity which is being carried out by the Entrepreneur. Generally Entrepreneur is
the concerned authority of the business, without their permission, not single
changes or decisions are made. In other words, An Entrepreneur is an owner or
manager of the business enterprise who makes money through risk or initiative.
They are responsible for any changes happened in the business or in the
organization. LET US NOW THINK OF WHY ALL BUSINESS PERSONS ARE NOT
ENTREPRENEURS? Think of a woman who sits by the roadside leading to your home
and who has been selling the same type of food, from the same size of saucepan or
pot, from the same table top, and may not have been able to change her standard
of living to any appreciable extent. Such a woman may be a business person but not
an entrepreneur. The entrepreneur on the other hand is the business person who is
not satisfied with his/her performance and therefore always finds ways to improve
and grow. Hence, we see Growing of a business concern is a very important part of
entrepreneurship development. Growing by size, level of activities and operations
conducted number of people involved, etc accounts for growth of an enterprise but
this growth cannot occur until the entrepreneur himself is ready to INNOVATE! Yes,
until the entrepreneur is ready to take the risk to innovate new things he cannot
grow his business. 1.2 INNOVATION Innovation means "to renew or change.
Although the term is broadly used, innovation generally refers to the creation of
better or more effective products, processes, technologies, or ideas that are
accepted by markets, governments, and society. Innovation differs from invention or
renovation in that innovation generally signifies a substantial positive change as
compared to incremental changes. The following diagram is referred to as an
Innovation Value Chain because it represents the very general sequence of activities
that create value in our society and economy. Simply put: discoveries result in new
ideas in the form of knowledge and concepts, inventions result in new technologies
and business models, and innovation exploits inventions to allow for the creation of
value through commodities, goods, services and experiences. IRJC International
Journal of Marketing, Financial Services & Management Research Vol.1 Issue 8,
August 2012, ISSN 2277 3622 www.indianresearchjournals.com 198 Source:
http://resources.talcie.org/topics-andactivities/creativity-innovation-
andentrepreneurship topic-notes/creativity, discovery, invention, innovation. png?
altredirects=0 Innovation is the specific tool of entrepreneurs, the means by which
they exploit change as an opportunity for a different business or a different service.
It is capable of being learned, capable of being practiced. Entrepreneurs need to
search purposefully for the sources of innovation, the change and their symptoms
that indicate opportunities for a successful innovation. And they need to know and
to apply the principles of successful innovation. Of these factors: natural raw
materials, physical and mental labor and capital. An innovation is a new
combination of these three things. Entrepreneurs, as innovators, are people who
create new combinations of these factors and then present to the market for
assessment by consumers. This is a technical conceptualization of what is
innovation is about. it does not give the practicing entrepreneur much of a guide to
what innovation to make, or how to make it, but it should warn that innovation is a
much broader concept then just inventing new products. It also involves bringing
them to market. 1.3 IMPORTANCE OF INNOVATION IN ENTREPRENEURSHIP Any
business is integral to the economy. Without it, our economy would not survive. But
a business must also sustain itself, be able to constantly evolve to fulfill the
demands of the community and the people. In every business, it is imperative to be
industrious, innovative and resourceful. Entrepreneurship produces financial gain
and keeps the economy afloat, which gives rise to the importance of innovation in
entrepreneurship. Entrepreneurs are innovators of the economy. It is not just the
scientist who invents and come up with the solutions. IRJC International Journal of
Marketing, Financial Services & Management Research Vol.1 Issue 8, August 2012,
ISSN 2277 3622 www.indianresearchjournals.com 199 The importance of innovation
in entrepreneurship is shown by coming up with new way to produce a product or a
solution. A service industry can expand with another type of service to fulfill the
ever changing needs of their clients. Producers can come up with another product
from the raw materials and by-products. The importance of innovation in
entrepreneurship is another key value for the longevity of a business. Entrepreneurs
and businesses began with a need. They saw the need within the community and
among themselves that they have come up with a solution. They seize the
opportunity to innovate to make the lives more comfortable. And these solutions
kept evolving to make it better, easier and more useful. Entrepreneurs must keep
themselves abreast with the current trends and demands. Manufacturers are
constantly innovating to produce more without sacrificing the quality. Companies
and enterprises keep innovation as part of their organization. Innovations contribute
to the success of the company. Entrepreneur, as innovators, see not just one
solution to a need. They keep coming up with ideas and do not settle until they
come up with multiple solutions. Innovation is extremely important that companies
often see their employees creativity as a solution. They come up with seminars and
trainings to keep their employees stimulated to create something useful for others
and in turn, financial gain for the company. Other factors that raises the importance
of innovation in entrepreneurship is competition. It stimulates any entrepreneur to
come up with something much better than their competition in a lower price, and
still be cost-effective and qualitative. Small businesses see the importance of
innovation in entrepreneurship. They were able to compete with large industry and
see their value in the economy. Small businesses are important as they are directly
involved in the community and therefore, contribute to their financial and economic
gain. These small businesses know exactly what community needs and fulfill them.
All things start small. Innovation is important not just in entrepreneurship. As
individuals, we are innovators by adapting well to our needs and create our own
solutions. Entrepreneurs are the same. The innovation in entrepreneurship helped
the country by changing with the times and producing new products and service
from ones that already exists. And, being innovative has helped us become
successful in all our endeavors. In business and economics, innovation is the
catalyst to growth. With rapid advancements in transportation and communications
over the past few decades, the old world concepts of factor endowments and
comparative advantage which focused on an areas unique inputs are outmoded for
todays global economy. Now, competitive advantage, or the productive use of any
inputs, which requires continual innovation is paramount for any specialized firm to
succeed. Economist Joseph Schumpeter, who contributed greatly to the study of
innovation, argued that industries must incessantly revolutionize the economic
structure from within, that is innovate with better or more effective processes and
products, such as the shift from the craft shop to factory. He famously asserted that
creative destruction is the essential fact about capitalism. In addition, IRJC
International Journal of Marketing, Financial Services & Management Research Vol.1
Issue 8, August 2012, ISSN 2277 3622 www.indianresearchjournals.com 200
entrepreneurs continuously look for better ways to satisfy their consumer base with
improved quality, durability, service, and price which come to fruition in innovation
with advanced technologies and organizational strategies. 1.4 THE FACE OF THE
INNOVATIVE ENTREPRENEUR Albert Cannella, professor of management at the W. P.
Carey School, says that sometimes the difference between an innovative venture
and a replicative one is subtle. "Innovative entrepreneurship may cover what's been
tried and has failed in the past, for example. There are really two parts that go into
innovative entrepreneurship; one is the invention -coming up with a new idea for a
good or service. But the other is successfully converting that idea into a product or
service and commercializing it. In that sense, an electric car that really worked and
was well-adopted by consumers would be an innovation. Even though electric cars
have been produced (invented) before, they have yet to be successfully
commercialized. Innovators also might look quite different from one another; there
are innovators who develop new technologies, like we're seeing right now with
biotechnology. There are innovators like Michael Dell who pair existing technologies
with a creative business model. And there are entrepreneurs who find innovative
ways to improve applications of new and existing technologies, as Innovative
Solutions & Support Inc. did when designing flat-screen displays for airplane
cockpits. The common thread among each type of innovator is that they all continue
to innovate to sustain their business. "Motorola began by making converters and
has transitioned from there to car radios, to mobile radios for World War II, to TVs, to
stereos, and to cell phones. Faced with new low cost producers for its existing
product line, the company would have failed had it not continuously innovated." But
for the entrepreneur looking to innovate, whether by developing a new good or
service, employing a new business model, or applying existing technologies in new
ways. "The Phoenix Company TGen, for example, quite consciously pursues
innovation through stateof-the-art research. Right now they're trying to take the
latest developments in medicine and transfer them to the bedside to serve a global
population. In contrast, Another Phoenix Company, JDA Software, was created when
its founder realized that then-available supply chain management software for retail
companies wasn't sophisticated enough. He took that realization and turned it into
an innovation, which now serves a global population. IRJC International Journal of
Marketing, Financial Services & Management Research Vol.1 Issue 8, August 2012,
ISSN 2277 3622 www.indianresearchjournals.com 201 2. RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY a) To study entrepreneurship and innovation b) To study
role of the innovative entrepreneur in economy. c) To study and present examples of
innovative entrepreneurs. I have used descriptive research design. Data has been
collected from secondary sources. 3. FINDINGS OF THE STUDY 3.1 THE ROLE OF THE
INNOVATIVE ENTREPRENEUR IN THE ECONOMY Innovative entrepreneurship impacts
the economy at three levels: at the aggregate level, at the consumer level, and at
the firm level. The positive effects of innovation percolate through the economy. At
the aggregate level, innovative entrepreneurship, like its replicative cousin, benefits
the overall economy by creating new jobs and increasing income, raising the
potential for new investments. In fact, new research demonstrates that it is the
gazelles -innovative companies that have experienced annual growth rates greater
than 20 percent for four or more years - that create the largest number of new jobs.
At the consumer level, the effect of innovation is the added value for consumers -
the improved products or services available to them at lower costs. At the firm level,
innovators can out-compete other companies that are not innovators, because of
the cost advantages that innovation produces. Furthermore, firms that produce
innovative goods and services are also more likely to adopt new innovations. Steve
Jobs was the greatest innovator and entrepreneur, who created game-changing
innovations including the Apple II, Macintosh, NeXT, iMac, iBook, iPod, MacBook, OS
X, iPhone and the iPad, and made Apple the most valuable company in the world.
Steve Jobs was the co-founder, chairman and chief executive officer of Apple Inc.
3.2 CULTIVATING INNOVATIVE ENTREPRENEURSHIP If innovative entrepreneurship is
the key to increasing standards of living, then the question is: how do you cultivate
innovation? Arthur Blakemore, professor and chairman of the W. P. Carey School's
economics department, says that minimal regulations, a competitive and
economically efficient tax system capable of IRJC International Journal of Marketing,
Financial Services & Management Research Vol.1 Issue 8, August 2012, ISSN 2277
3622 www.indianresearchjournals.com 202 supporting an appropriately competitive
infrastructure, openness to trade and competition, and facilities for R&D are all
necessary factors in an innovative economy. It's not likely that policymakers can
directly guide innovation, but they can provide the kind of environment that fosters
it. Furthermore, R&D is very important. Clearly all of the most famous clusters of
innovation -- Silicon Valley, Route 128 in Boston, the Research Triangle in North
Carolina -- they all have universities in proximity producing basic R&D that can
ultimately be commercialized. The famous clusters of innovation have another
factor in common: a critical mass of companies involved in innovation. "Silicon
Valley became the innovation mecca it is today almost by accident. HP started there
in a rented-out garage, and its presence attracted other companies, which attracted
others, and so on. This type of clustering produces is called network externalities.
Innovative firms accrue production advantages from their proximity to other
innovators. The clustering provides synergy, a knowledge base, a talent base and
an efficient means of transferring information. The presence of large innovating
companies is important. If you want to cultivate innovative entrepreneurship, you
have to have large innovative companies, because they spawn start-ups. A lot of
innovative entrepreneurs get their technical experience working for a large
company. Once they come up with the innovative idea, they leave the company to
go out on their own. The presence of a well-funded university involved in R&D is
also a critical factor for an innovative economy. A highly trained labor force and a
culture of lifelong learning are important factors in the cultivation of innovative
entrepreneurship. In addition to serving as centers for R&D, universities also must
do well at educating innovative entrepreneurs. There are two types of education
that innovative entrepreneurs need to be successful: on one hand, they need a
really solid technical understanding; and on the other hand they need an education
that stimulates creativity and imagination." Innovation involves changing the status
quo with respect to customer experiences, product performance, business
processes, alliances, and the channels of distribution or the way the product or
service is ultimately delivered to consumers. Thus, teaching innovation is not just
about teaching students how to develop new goods or services, but how to explore
their ideas, and develop their latent potential for innovation. 3.3 SOME OF THE
FAMOUS INNOVATIVE ENTREPRENEURS 3.3.1 BILL GATES William Gates the III, the
former CEO of Microsoft, for short period of time, had assets worth over 100 billion
dollars, making him the worlds first centibillionaire. Today his assets are half IRJC
International Journal of Marketing, Financial Services & Management Research Vol.1
Issue 8, August 2012, ISSN 2277 3622 www.indianresearchjournals.com 203 that
but he remains, as he has for the past decade and then some, the worlds
wealthiest man according to Forbes. Gates was born on 28 October, 1955 in Seattle,
Washington to a successful family and was able to attend a Seattle private school.
His mother was a schoolteacher and his father a Seattle attorney. He developed
interest in software and began programming at age 13 when the school acquired an
ASR-33 teletype terminal from a mothers rummage sale. Because of their exploits
of bugs in the schools second computer: a DEC PDP-10, owned by Computer Center
Corporation, Gates and a number of other students, including Paul AllenMicrosofts
co-founder, were offered unlimited computer time in exchange for debugging the
companys computers. After CCC went out of business, the students were hired by
Sciences Inc. to write a payroll program. The students were successful and were
received royalties on the program. 3.3.2 RATAN NAVAL TATA Ratan Naval Tata (born
28 December 1937) is the present chairman of Tata sons and therefore,Tata Group.
He is also the chairman of major Tata companies such as Tata steel, Tata Motors,
Tata Power, TCS, Tata Tea, Tata Chemicals, The Indian Hotel Company and Tata
teleservices. Ratan Tata was adopted by Naval Tata and Soonoo Commisariat in the
Tata Family a prominent family belonging to the Parsi community. He is the great-
grandson of Tata group founder Jamshedji Tata. After his parents separated in 1944,
he was brought up by his grandmother Lady Navajbai and did his schooling in
Mumbai from Campion School. Later, he enrolled in Cornell University, where he
earned a B.S in architecture with structural engineering in 1962, and has also
completed the Advanced Management Program at Harvard business school (Class of
1975). 3.3.3 VIJAY MALLYA (Born 18 December 1955) is an Indian liquor baron
andRajya Sabha MP. The son of industrialistVittal Mallya, he is the Chairman of the
United Breweries Group and Kinfisher Airlines, which draws its name from United
Breweries Group's flagship beer brand, Kingfisher. He also co-owns the Formula One
team Force India, the Indian Premier League team Bangalore Royal Challengers, and
the I-League team East Bengal FC. According to Forbes.com, as of March 2011,
Mallya, is worth US $1.4 billion. He is ranked 879 in The Forbes World Billionaires
Ranking (2011), and 38th in India. He receives substantial press coverage that
focuses on his lavish parties, villas, automobiles, Force India, Royal Challengers
Bangalore and his yacht, the Indian Empress. Mallya was born into a Konkani Goud
Saraswat Brahmin family which originally from the town of Bantawal, near
Mangalore in Karnataka. He is the son of Vittal Mallya and Lalitha Ramaiah. He was
educated at La Martiniere for Boys School, Calcutta] and completed his degree at
St. Xaviers college kolkata IRJC International Journal of Marketing, Financial Services
& Management Research Vol.1 Issue 8, August 2012, ISSN 2277 3622
www.indianresearchjournals.com 204 He later set up business ventures in Dubai,
United Arab Emirates. Mallya's first wife was Sameera and they have a son
together, named Siddharth Mallya. Sidhartha was educated at Wellington College in
Crowthorne followed by Queen Mary's College in the University of London. Later on,
Mallya married Rekha with who he has two daughters Laila is engaged with
loganathan and Tanya Mallya and one son. 3.3.4 RAGHAV BAHL He is an Indian
Businessman best known for his ownership of several television channels, including
TV-18 India. He received schooling from St. Xaviers School Delhi and attained a
Masters in Business Administration from FMS Delhi. He is responsible for directing
most of the work of TV-18 and channels like CNBC-Awaaz, Nickelodeon and colors.
Recently he has written a book 'Super Power?' which compares the two developing
countries China and India. Raghav earned his 2007 Entrepreneur of the year
award of Ernst and young. Around 50, he is a first generation Entrepreneur. He
started Newtwork-18 as a television software house in the mid nineties. He
developed the India Show and The India Business Report for BBC very successfully.
He saw hard times for many years but he and his team were able to come through
the agni pariksha very well. Now he has in his media house three of the best global
properties CNBC, CNN and VIACOM. Raghav was born in IAS family and his
grandfather was principal of a government college. He studied at St. Stephen
college MBA from DU and went to Columbia for his doctorate on scholarship but
decided to come back to do what he loved to do. 3.3.5 JAWED HABIB Jawed Habib
who was Entrepreneured into 220 Jawed Habib Salon and 42 Training Academies
not just in India but across Asia, from Malaysia to Nepal and beyond. Last year he
launched Hair Express outlets, offering hair cut at just Rs 99 each. Jawed, is a post
Graduate in French Literature from JNU, New Delhi. He went to Londons Morris
School of Hair Dressing and London School of Fashion for a 2 year course in the art
and science of hair style and grooming. He is already there in the Limca Book of
world Record with Featof 410 nonstop haircuts in a day. 3.3.6 KIRAN MAZUMDAR-
SHAW ''The stud lady from India' (Managing Director of Biocon Limited a
biotechnology company based in Bangalore (Bangaluru), India. Kiran Mazumdar-
Shaw was born on March 23, 1953 (age 58) in Bangalore, India. Kiran Mazumdar-
Shaw completed her schooling from the citys Bishop Cotton Girls High School
(1968). She wanted to join medical school but instead took up biology and
completed her BSc Zoology Honors course from Mount Carmel College, Bangalore
University (1973). She later did her post-graduation in Malting and Brewing from
Ballarat College, Melbourne University (1975). She worked as a Trainee Brewer in
Carlton and United Breweries, Melbourne and as a Trainee Malster at Barrett
Brothers and Burston, Australia. She also worked for some time as a Technical
Consultant at Jupiter Breweries Limited, Calcutta and as a Technical Manager at
Standard Maltings Corporation, Baroda between 1975 and 1977. IRJC International
Journal of Marketing, Financial Services & Management Research Vol.1 Issue 8,
August 2012, ISSN 2277 3622 www.indianresearchjournals.com 205 She started
Biocon in 1978 and spearheaded its evolution from an industrial enzymes
manufacturing company to a fully integrated bio-pharmaceutical company with a
well-balanced business portfolio of products and a research focus on diabetes,
oncology and auto-immune diseases. She also established two subsidiaries:
Syngene (1994) to provide development support services for discovery research
and Clinigene (2000) to cater to clinical development services. Her pioneering work
in the sector has earned her several awards, including the prestigious Padma Shri
(1989) and the Padma Bhushan (2005) from the government of India.She was
recently named among TIME magazines 100 most influential people in the world.
She is also on the Forbes list of the worlds 100 most powerful women, and the
Financial Times top 50 women in business list. 4. CONCLUSION With rising
population of the world, the worlds need and necessities pattern had also evolved
through the years. To sustain the ever increasing demand and supply of products,
right entrepreneurship skills and innovation are much more needed. Without new
business ideas and technology to support it, no consumer demand will be fulfilled
completely. Thus, innovation and entrepreneurship is the need of hour and needs to
be adopted by one and all business enterprises. Innovation and Entrepreneurship is
a good resource for categorizing and identifying sources of innovation. Entrepreneur
does an excellent job of organizing the key elements involved in innovation and
there is a fair amount of real world examples that help others understand the
concepts. Innovation and Entrepreneurship is more about creating a framework for
innovation that can be used to compartmentalize current practices and shed light
on their origins. To accurately point out, the least likely sources of innovation are
from new knowledge and bright ideas. The insight into this alone, makes the
concept well worth understanding. REFERENCES 1. Batra Promod, Batra Vijay,
Outside the Box- Great Ideas that transformed Business, published by Promod batra
Vijay batra and Associates, New Delhi 2. Bedi Kanishka, Management and
Entrepreneurship, oxford university press, New Delhi 3. Hisrich D Robert, Peters P
Michael, Shepherd A Dean, Entrepreneurship, sixth edition (2007), Tata McGraw-hill
publishers, New Delhi 4. Oats David, A Guide to Entrepreneurship, second edition
(2007), Jaico publishing house, Mumbai 5.
http://smarteconomy.typepad.com/entrepreneurship_and_inno/ How to double and
triple the success rate of all entrepreneurs in a country 6.
http://hbswk.hbs.edu/item/6168.html/Do Innovation and Entrepreneurship Have to
Be Incompatible with Organization Size? 7.
http://creativityandinnovation.blogspot.com/ Creativity and Innovation Driving
Business - Innovation Index