Emergence of the Entrepreneurial Class

INTRODUCTION

 The term “Entrepreneur” first appeared in the French language

and was applied to leaders of military expeditions in the beginning
of the 16th century.

 Richard Cantillion , an Irishman living in France was the first

person to use the term Entrepreneur to refer to economic
activities. He defined Entrepreneur as a person who buys factor
services at certain prices for selling his product at uncertain prices
in future. He viewed an Entrepreneur as a bearer of non insurable
risk.

 Entrepreneurial class came into being in the 17th century.

 Invention of Steam Engine resulted in Industrial revolution

(1769). It changed small scale production to large scale
production.

 Due to this Industrial revolution, the Agrarian society in Europe

got transformed into Industrial society.

 The European society was mainly dominated by Artisans and

Peasants and they witnessed large scale production.

 A group of people mainly traders took risk for large scale

production and they were called Entrepreneurs.
  Due to large scale production the Entrepreneurs had surplus
matter available with them. They needed market to get their
product absorbed.

 As Britain had colonies all over the world so they marketed their
products to other countries. This is how Entrepreneurship
originated.

INDIA

 During earlier times India’s prosperity attracted communities across

boundaries

 Strategies adopted by the Mughals and Turkish

Turks and the Mughals settled down in India and shared the prosperity. They
brought currency with them and disrupted the barter system

 Strategy of the British

Wanted to offload surplus supply in India due to Industrial Revolution to balance

the demand and supply situation in U.K

Managed to acquire power and became the ruler.

Banned manufacturing in India. Sent all raw materials (cotton, oilseeds etc) to UK
for conversion and value addition, thus transferring wealth to UK.

 18th Century

Indian Industry remained non starter. Major thrust was on cash crops neglecting
food grains resulting in severe famine. Indian Economy was dominated by British
economy.

 1920
World War 1 prevented transfer of raw materials to Manchester. British decided to
manufacture in India itself . Initiated the first Indian Industry. The Mumbai Textile
Mills

 1930s to mid 1940s

Mahatma Gandhi directed the people to set the basic Infrastructure for Industrial
and Economic development. These are the founder entrepreneurs of India. They
developed various areas of basic infrastructure.

a) JRD Tata: Aviation, steel, railway, post & telegraph, power, roads, textile etc

b ) G.D Birla-Textile, vehicles, power, cement, chemicals, heavy industries,

aluminum, etc

c) S. L Kirloskar-Machine Tools, farm equipments, pumps etc

d) Jamnalal Bajaj-Two wheelers, 3 wheelers etc

 Independence 1947

British went back leaving the business to their employees/agents/market

intermediaries.

 Late 1960s

Nationalisation of banks and Insurance companies made available huge funds for
SSI and entrepreneurial development. It made investment available to common
man challenging business monopoly

 1970s to mid 1985

Emergence of new generation entrepreneurs because of funds and supporting Govt

policies.

Technocrats , artisans , rural craftsman, educated, uneducated youngsters created

the greatest ever SSI development.

Resulted in excellent interdependence of SSI and organized sector creating highest

ever growth rate of 8.9% and very high addition to GDP.
Organised sector could expand, diversify without any direct investment and SSI
could share the prosperity.

 Mid 1980s

Indian industry remained protected by license raj, permits, quotas, monopolistic

market resulting into losing export and entry of cheaper better goods in gray
market(Germany & Japan) resulting in worse BOP Situation and industrial
sickness. Closure of several industries in organized sector.

 1990s

Liberalisation sets reforms rolling by scrapping export regulations.Delicensing,

making import and export simpler, direct FDI in all sectors, concessions for
technical know-how and collaboration. Indian entrepreneurship started.

 Mid 1990s

Third generation of entrepreneurs Rahul Bajaj, Mahindra, Ambani, Ratan Tata,

Kumarmangalam Birla proved their competencies in managing various large
companies

 2000

Indian Entrepreneurship took great leap in the global market entering in to service
Industry (IT, BPO, Bio Technology, Hospitality etc).

India established leadership in several areas-

Bajaj-Largest manufacture of 2 wheelers

Ambuja Cement-cheapest manufacturing of cement

Infosys-IT

 . 2000 onwards

Snapdeal
Flipkart

Paytm

Ola Cabs

Oyo Rooms

Grofers

Swiggy

Big Basket

And many more…………

Job market is changing; Companies are passing through highly unstable phase. It
may call for drastic changes in their business form that will lead to change in the
employee pool. Jobs and remuneration will be more result based. Those in demand
would be persons with high enterprising capabilities and entrepreneurship attitude.