You are on page 1of 9

Def init ions

Entrepreneur (Oxford Dictionary) – Person who undertakes an enterprise with chances of
profit or loss. (As I have understood, Entrepreneur is a person who undertakes a business
activity of whichhe has no background and faces considerable risks in the process. If either of
the two elements, i.e., “no background” or “considerable risk” is missing in the venture, it is no

Advantages of Entr epreneur s hip

To an Individual
(a) Provides Self Employment for the entrepreneur
(b) Entrepreneur can provide employment for near & dear one as well
(c) Entrepreneurship often provides an employment and livelihood for next
generations as well.
(d) Freedom to use own ideas – Innovation and creativity
(e) Unlimited income / higher retained income – Bill Gates has risen to become
richest in the world in a single life time through entrepreneurship
(f) Independence
(g) Satisfaction

To the nation
(a) Provides larger employment – Entrepreneurs provide employment for self as
well as other people and is source of employment creation.
(b) Results in wider distribution of wealth – This is a logical sequel of above
issue. Higher the employment, greater the distribution of wealth

(c) Mobilizes local resources, skills and savings
(d) Accelerates the pace of economic development – Entrepreneurship is the
govt’s one of the most trusted vehicles for economic development
(e) Stimulates innovation & efficiency

Who does not have previous experience . Who has some financial strength – On his own or borrowed 6. Who can take moderate risks 3. Positive self concept/Self Belief 12. Determination to win 4. Flexibility 9. Perseverance 8. Preparedness to undergo physical and emotional stress 11. Who gets stimulation by feedback 10. Who feels the need for achievement 2. Ability to identify & explore opportunities 6. Ethics and Values – Mission Who can be an Ent repr eneur? 1. Willingness to take moderate risks – (High risk takers are not entrepreneurs but gamblers). Who possess skills in organizing 4. Who has desire for responsibility 8.Wha t makes a Succ es s ful Ent repr eneur? 1. Who can capitalize on opportunities 5. Win– Win Personality 5. The urge for achievement (most often monetary ambitions) – Most Important 2. Who has a clear perception of probability of success 9. Who has ability to work hard 7. Analytical ability to take strategic decisions 7. female or even a Eunuch 11. Future orientation – Vision 13. Anyone – He can be male. 3. Capacity to plan and organize 10.

ability 5. Need for Achievement 2. Motivator 11. Vision 6. (d) Most SSIs use local raw materials which ensures good prices for producers of raw materials. the society and to the nation as a whole. Risk taker (Please note that all the three headings are necessarily the same) Key Elements of Entrepreneur 1. Self– confident 12. their gestation period is often short. Communication ability 6. Achievement– oriented 8.Characteristics of an Entrepreneur 1. . Long term involvement 13. and are as elucidated hereunder. (c) Also. Risk taking 3. Technical knowledge 7. Mental ability 2. (b) With SSIs generating employment and wealth creating avenues. Small Scale Industries (SSIs) provide numerous benefits to the entrepreneurs. generating employment for over 2 crore people. Initiator 16. Economic Benefits (a) SSIs generally are less intensive on technology and are therefore within reach of individuals who may not be highly educated. Perseverance 9. Clear objectives 3. These can generally be clubbed into two heads – economic benefits and social benefits. which are cheaper and affordable. (b) They need small capital and can be started by people with little resources. High energy level 14.R. Organizing Skills 4. Goal setter 17. Social Benefits (a) SSIs generate employment at the local level. Ethical 10. which is much needed for a developing country like ours with a heavy population load. Business secrecy 4. equitable distribution of income is possible to some extent with their help. In India there are 35 lac SSI units. SSIs check monopoly of strong players to a large extent by producing substitutes. Innovation Importance of SSIs. Ans. (c) Due to small size. Problem solver 15. Ethics & Values 5. H.

SSIs provide employment round the year. Agriculture provides employment for only few months in a year.(d) Infrastructure development in rural and semi– urban areas has also been possible because of SSIs. (e) SSIs have helped in rural development. Baramati. Mokhama. (f) SSIs have improved employment opportunities and many SSIs are in under/semi developed areas. Tumkur. even in villages. Tirupur are some such places where infrastructure has vastly developed. Sivakasi. Ichalkarangi. . This keeps a check on the exodus of workers to metros and urban zones. (g) SSIs help to establish the linkage between agriculture and industry to harness the potential of both the sectors.

The pictorial representation below gives the representation of Section 135 (1) . WHAT IS CSR? The term "Corporate Social Responsibility (CSR)" can be referred as corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. while proposing the Corporate Social Responsibility Rules under Section 135 of the Companies Act." FOR WHOM it’s APPLICABLE? The companies on whom the provisions of the CSR shall be applicable are contained in Sub Section 1 of Section 135 of the Companies Act. however. and demonstrates its commitment in this regard by adoption of appropriate business processes and strategies. or Turnover of INR 1000 crore or more. 2014) for certain companies who fulfill the criteria as mentioned under Sub Section 1 of Section 135 to comply with the provisions relevant to Corporate Social Responsibility. the Ministry of Corporate Affairs. the Chairman of the CSR Committee mentioned the Guiding Principle as follows: "CSR is the process by which an organization thinks about and evolves its relationships with stakeholders for the common good. Government of India has recently notified the Section 135 of the Companies Act. while at the same time addressing the expectations of shareholders and stakeholders. the companies having Net worth of INR 500 crore or more. 2013. Thus CSR is not charity or mere donations. or Net Profit of INR 5 crore or more during any financial year shall be required to constitute a Corporate Social Responsibility Committee of the Board "hereinafter CSR Committee" with effect from 1st April. 2013 along with Companies (Corporate Social Responsibility Policy) Rules. environmental and social imperatives ("TripleBottom-Line.Corporate Social Responsibility is not a new concept in India. As per the said section. Moreover. 2013. but instead promote positive social and environmental change. Socially responsible companies do not limit themselves to using resources to engage in activities that increase only their profits. by which corporate entities visibly contribute to the social good. 2014 "hereinafter CSR Rules" and other notifications related thereto which makes it mandatory (with effect from 1st April. As mentioned by United Nations Industrial Development Organization (UNIDO). environmental and social objectives with the company's operations and growth3 . CSR is generally understood as being the way through which a company achieves a balance of economic. The term generally applies to companies efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company. CSR is a way of conducting business. 2014. They use CSR to integrate economic.Approach").

xi. art & culture including restoration of buildings & sites of historical importance & works of art. v. Eradicating hunger. Rural development projects. ecological balance. day care centers & such other facilities for senior citizens & measures for reducing inequalities faced by socially & economically backward groups. iv. setting up public libraries. animal welfare. sports & Olympic sports. agro forestry. Contribution to the Prime Minister‘s National Relief Fund or any other fund set up by the Central Government for socio-economic development & relief & welfare of the Scheduled Castes. Explanation. xiii. vi. the Scheduled Tribes. vii. malaria and other diseases. Protection of national heritage. including special education & employment enhancing vocation skills especially among children. setting up homes & hostels for women & orphans. protection of flora & fauna. iii. empowering women. which are approved by the Central Government. elderly & the differently unable & livelihood enhancement projects. nationally recognized sports. conservation of natural resources & maintaining quality of soil. Promoting education. Contributions or funds provided to technology incubators located within academic institutions.— For the purposes of this item.CSR Activities The Policy recognizes that corporate social responsibility is not merely compliance. promotion & development of traditional arts & handicrafts. women. Providing with hospital and dispensary facilities with more focus on clean and good sanitation so as to combat human immunodeficiency virus. the term ‗slum area‘ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force. minorities & women. poverty & malnutrition. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines. promoting preventive health care & sanitation & making available safe drinking water. Measures for the benefit of armed forces veterans. xii. ii. etc xiv. war widows & their dependents. other backward classes. x. Ensuring environmental sustainability. Employment enhancing vocational skills viii. Promoting gender equality. it is a commitment to support initiatives that measurably improve the lives of underprivileged by one or more of the following focus areas as notified under Section 135 of the Companies Act 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014: i. ix.‖ . acquired immune deficiency syndrome. setting up old age homes. Training to promote rural sports. air & water. Slum area development.

4. She has to tie up capital and wait for good returns. She should have the confidence to implement the change and overcome any resistance to change. A woman entrepreneur likes to take realistic risks because she wants to be a successful entrepreneur. 2. She obtains factors of production from the society and supplies them finished product. Employment to Women: A woman entrepreneur must provide at least 51 percent of the employment generated in her enterprise to women. It is the condition of not knowing the outcome of an activity. She prepares various plans and executes them under her own supervision and control. A woman entrepreneur assembles. 3. Risk-taking: Risk means uncertainty. A woman entrepreneur should have courage to own the mistakes and correct them. She faces uncertainty confidently and assumes risk. organizes and manages the other factors namely land. Management and Control: A woman or a group of women manages the whole business of enterprise.Nine Qualities Every Woman Entrepreneur Needs to Succeed in Business 1. There may be some persons to help her but ultimate control lies with the woman. A woman entrepreneur must be clear and creative in decision making process. She should have faith in herself and in her abilities. 6. A woman entrepreneur takes calculated risk. Decision–maker: The main function of a woman entrepreneur is to make decision. labor and capital. Good organizer: The most critical skill required for industrial development is the ability of building a sound organization. She decides about the type of business to be done and the way of doing it. 5. co-ordinates. She takes various decisions regarding the activities of her enterprise. Self confidence: It is essential to be a self confident for a woman entrepreneur. .

Technically competent: The success of an enterprise largely depends upon the ability of woman entrepreneur to cope with latest technology. to advance and to grow. She should be a lady of creative thinking and analytical thinking. 14. She should approach her venture with a hope of success and attitude for success rather than with a fear of failure. Achievement oriented: A woman entrepreneur is an achievement oriented lady. 11. . Mentally sound: A woman entrepreneur is energetic. Hard worker: A distinguishing feature of a woman entrepreneur is the willingness to work hard. 8.7. The positive thinking of woman entrepreneur can turn the situation favorable to her. having a mission and a clear vision. She has faith in herself and attempts to solve the problems even under great pressure. 9. Achievement orientation is a derive to overcome challenges. 10. single-minded. She has to follow the principle. 13. adaptable and problem solver. starts her enterprise with these ideas and provides added value to society based on their independent initiative. accomplishment and service to others. Technical competency refers to the ability to devise and use the better ways of producing and marketing goods and services. Bold and brave: Women entrepreneurs face the adversities boldly and bravery. Leadership: Leadership quality is one of the most important characteristic of a woman entrepreneur. It is the process of influencing and supporting others to work enthusiastically towards achieving objectives. Optimistic: A woman entrepreneur must be optimistic. Visionary: A woman entrepreneur is one who incubates new ideas. She must be intelligent. “Hard-work is the key to success”. 12. not money hungry. She works for challenge.

contributing 40% to total economy exports. Most of these also act as ancillary units for large scale industry. it has emerged as the most dynamic sector displaying phenomenal growth by contributing 10% of share in GDP of India.TYPES OF ENTERPRISES Micro. . Small and Medium Enterprises (MSMEs) are widely called the back-bone of the Indian economy. The following section defines each type of units in the small scale sector. In recent years. 2010). This sector comprises of business units with varying sizes that range from tiny to medium based on level of investment. this sector is the largest employment providing sector in India with employing more than 600 lakhs persons in India”. producing about 7500 items and involving in Technology Upgradation and implementation (55% of MSMEs involved) in particular (ASSOCHAM report. According to the online official portal of MSME.