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    BPE Unit 2 Part 1

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    TYPES AND * Types and Classification of Entrepreneurs - _ Intrapreneurs = Concept - Development = Entrepreneurvs. Intrapreneur Women Entrepreneurs - Concept > Problems Development under Five Year Plans ~ Measures/ Initiatives © Concept of Sey-tetp Groups (SHGs) © Dev onerment of Women Entrepreneurs wi ° Social Entrepreneurship - Concept Development > Importance *° NGOs - Concept Characteristics Social Responsipy ity CLASSIFICATION — OF ENTREPRENFY) the help of ¢ Entrepreneurial Development Program (EDP) + Concept and Objectives - Methods - Content and Curriculum 2 Factors - Institutions © Options Available to Entrepreneur TYPES AND. CLASSIFICATION. a OF ENTREPRENEURS a There are different types of entrepreneurs. They can be classified under several groups, which is shown as follows: TYPES AND CLASSIFICATION OF ENTERPRISES a et ‘On the Basis of Experience’ I. ONTHE BASIS OF AREA get a large size of rural market for certain products detergents, bicycles, sew machines, etc. They may use technology and pay less attention to research and dey These entrepreneurs depend upon to a great ext, services of intermediaries. They face problem: financial assistance from the banks and financial instiee "8 They consider training as waste of time/and money im believe that the traits of entrepreneurship are born or ee © S09; outdatey } elopmen, ent On the | inherited, : 2. Urban Entrepreneurs: Urban entrepreneurs are tho operate their business activities in urban areas, Ur entrepreneurs may get a large size of urban market force atl products like branded clothing, cars, washing machines conditioners, ete. They make use of modern technolo va giveimportance of research and development. Generally untae) entrepreneurs do not face the problems of transportat a credit, advertising, etc. They, mostly, follow profess a ip proecl and malta thse eaeceetseegeert peste cla oa understand the benefits of training and development. ine I. ONTHE BASIS OF TRAITS / Entrepreneurs possess certain dominate fore, nature and traits. The there may be different types of is of there may be diferent types of entrepreneurs on the basis ofthe 3: eee: Entrepreneurs: Visionaries are entrepreneurs a desire to change the world, and the capacit = - i ‘9 imagine how to doso, Exampleofy mae Ariaites Sc 0am he pple Incorporation. The key strengths of 2 ths of visionary entrepreneur are — imagination and attracting brilliant ion on its own is just daydreami crepe nei other skills fo make vision a realy. Steve Jobs boasted the attention to detalof a reigning moran ae for design and consumers’ desires. It was | vis ysion that made transformative products like the iPhone easel re. Apple Incorporation is named as the most ed company in the world from 2008 - 2012 by Fortune | ‘Types and Classification of Entrepreneurs 7 4, The Adventurer-type Entrepreneurs: The adventurer-type entrepreneurs are those individuals who would like to venture in different business areas. Example includes Richard Branson of the Virgin Group. The key strengths of adventurers include bravery, energy, tenacity, ‘work hard/play hard’ culture. Ill. ON THE BASIS OF EXPERIENCE ‘The entrepreneurs can also be classified on the basis of their experience: 5, First-time Entrepreneurs: First-time entrepreneurs are those who do not have experience in carrying out their business operations. They may have either started a new business venture or taken over the charge of the existing business. Due to lack of experience, they may find difficulty in obtaining credi facilities from the banks. The venture capitalists also may not easily trust and invest into new enterprise started by first-time entrepreneurs. These entrepreneurs should undertake training programmes conducted by several entrepreneuria! Eevelopment institutions. They should have mentors and experienced advisors to bring professionalism and innovation in business. ed Entrepreneurs: Experienced entrepreneurs have qualitatively and quantitatively, in Functioning of the business. These entrepreneurs know that the larger the risks taken, the greater can be the rewards. These entrepreneurs undertake cost-benefit analysis of each and every business activity. They take proactive decisions to get 2 competitive edge in the market. These entrepreneurs can easily consider expansion and diversification of their business activities. IV. ON THE BASIS OF GENDER ppreneurs can be as follows: 6. Experience good experience - The gender classification of entre Male entrepreneurs are generally engaged ig to manufacturing, construction, faction is derived from 7. Male Entreprene in businesses rel technology, marketing, etc. Their} By a v. the desire to be in control, The . They can easi banks and financial institutions for their bus They may have a high level of confidence and initiative are opinionated and persuasive. nd Female Entrepreneurs: Women entrepreneurs are those we, who initiate, organize and operate a business enterprise. They are generally engaged in businesses relating to services, 142 software, consultancy, etc. women entrepreneurs face a nea of problems, such as dual responsibility, limited mol difficulty in managing male employees, etc. Inorder to allevia their problems, various organizations, government, sent government, and NGOs have initiated various schemes fo, women entrepreneurs to make them economically dependent, ON THE BASIS OF OBJECTIVES The entrepreneurs may be classified on the basis of the priority of their business objectives. 9. 10. Economic Entrepreneurs: Economic entrepreneurs are persons who organize and manage a business undertaking for fulfilling the economic objective of profit maximization. The economic entrepreneurs place emphasis on cost-effective activities. They undertake cost-benefit analysis of each and every activity; only from short-term point of view but also from long-term point of view. a social ciples to organize, create and manage a venture to make social change. The main aim of social entrepreneurs is to bring constructive change in society and to maximize social satisfaction. Social entrepreneurs often focus on the disadvantaged sections of society. . OTHERS ; On the Basis of Age: Young entrepreneurs, Middle-aged entrepreneurs, and Old entrepreneurs. ! . On the Basis of Use of Technology: Technical entrepreneurs, and Non-technical entrepreneurs. ee Lian ‘Types and Classification of Entrepreneurs 9 13. On the Basis of Motivation: Pure entrepreneurs, Induced entrepreneurs, and Motivated entrepreneurs. In 1985, Gifford Pinchot introduced the term ‘Intrapreneurship. Pinchot states that Intrapreneur is an entrepreneur within an already existing organisation. The prime motive of Intrapreneurship is independence and to get rewarded for performance. ‘Traditional corporate firm has a culture and a reward system that favour conservative decision making. There is a restrictive ion. The guiding directives in a traditional corporate culture are: e Follow the instructions given Donot make mistakes © Donot take initiative but wait for instructions Incontrast intrapreneurial culture focuses on: e Creativity and flexibility ¢ _ Independence «Risk taking and rewards. Goals of Intrapreneurship: e To develop vision, goals and action plans. «To get rewarded for performance. ‘To make suggestions within and across functional areas/ divisions. «To create and develop new products, ideas, ete. regardless of the areas/ divisions. ry and ownership. To take respons Intrapreneurship. The following are the characteristics or elements of intrapreney environment: al nso as to ensure success of the concept ot of ine Team Approach: Firms must enc ‘Ourage ld be ine team work to make Intrapreneurship a great success in any organisation, Access to Adequate Resources: The compan: i : 3 Y must ba Intrapreneurs with adequate resources. But quite often, suficead funds are not allocated for intrapreneurial acti +, Creat innovative schemes/ products. Instead, the funds are located to solve problems that have an immediate effect n ea on short term Support by Top Management: There is a need for : whol hearted support by the top management. Their physical presence and provision of adequate resources ~ physical, capita and manpower is a must to make intrapreneurial culture 4 success, Training: The concept of Intrapreneurship must be through seminars, workshops, fics The coneeeene Intrapreneurship must be introduced throughout the organisation. The organisation must identify intrapreneurial leaders and provide them with appropriate training. The training needs to focus on identifying new opportunities, Along with intrapreneurial training, a mentor/sponsor system needs to be identified. An Intr: ii Be econ ‘apreneur may get the support of one or Experimentation: There is a need to experiment, i ner trial and be encouraged. Successful new i products and services usually do not appear fully developed; instead they evolved 10. Classification of trepreneurs st firm has to establish an environment that allows mistakes and failures in developing innovative products. Research and Development: The corporate firm must encourage research and development to generate new ideas. New ideas must be encouraged rather than being discouraged. The corporate firm must focus on technology to make it more le. Use of technology by large firms makes them more ynsive and flexible like the smaller firms. Long Term Horizon: The intrapreneurial culture must establish a long time horizon for evaluating the success of overall lual venture. Company for a period of 5 years or so to ensure returns. Open Turfs: An organisation must make sure that there are no initial opportunity parameters restricting creativity in new development. Quite often, various turfs are protected, resulting in frustration for Intrapreneurs to establish ventures. There are cases where Intrapreneurs were frustrated because the proposed new scheme/product was in the domain/turf of another division/ department. ‘The spirit of Intrapreneurship cannot be forced upon individuals. It must be on a voluntary basis. There isa difference between corporate thinking and intrapreneurial ing, Certain managers perform well in regular corporate activities, and others perform well in intrapreneurial ventures. Therefore, those managers/employees who would perform well in intrapreneurial ventures must be given independence to carry out a project to its compl Equity in Rewards: Intrapreneurs must be rewarded for the time, effort and risk taken to create a new venture. The rewards jon to performance. Ifthe rewards are not equitable, then there will be job dissatisfaction, resulting, in lower commitment, lower efforts, and consequently lower performance or lack of involvement in intrapreneurial activities. ing process helps in the development of intrapreneup Commitment from Management: There must be stro, commitment on the part of the management to introduce © concept of Intrapreneurship. Without the commitment of to management, the organisation will not be able to go through all the cultural changes necessary for implementation. Om the top management of the organisation has committed fg Intrapreneurship for a sufficient period of time say 3 to 5 years the concept is introduced throughout the organisation. 4 Identification of Areas: The general areas in which th intrapreneurial concept to be introduced must be identified, The amount of funds that would be available must also be decided so as to develop the concept of Intrapreneur. Overal] programme expectations and their markets and the targe results of each intrapreneurial venture must be established. The time horizon, volume, and profits of the new venture and the impact on the organisation must be specified in advance, Promotion of the Concept: The conce i : ;pt of Intrapreneurs| needs to be promoted in the organisation. This can be an during seminars, workshops, informal meetings, etc. Members of the organisation must be motivated to embrace the concept ofintrapreneurship. Identification of Intrapreneurial Leaders: Thi isati if 0 : The organisation must identify intrapreneurial leaders, The ined rcneniatl leaders must have the following attributes: © Proactive in decision-making Open minded to accept suggestions and complaints. ‘* Pleasing personality * Supported by a network of followers. Types ‘Classification of Entrepreneurs 53 Encourages team work. ¢ Visionary and flexible. Training to Intrapreneurs: The Intray irs must be provided with appropriate training. The training needs to focus on identifying new opportunities in relation to the markets. Along with intrapreneurial training, a mentor/sponsor system needs to be identified. An Intrapreneur may get the support of one or more Mentors. Training must be provided also to employees that would support the intrapreneurial leaders. ‘Support Structure: The organisation needs to establish a strong, ‘support structure for Intrapreneurship. This is required because; Intrapreneurship is usually a secondary activity i isation. Since intrapreneurial activities do not impact the profitability in the short run, they can be easily overlooked and therefore may receive less funding and support. To make intrapreneurial culture a success, there must be proper backing, with financial resources, and support staff. Evaluation: The organisation needs to set up an evaluation system. Top management must provide period feedback to the Intrapreneurs s0 as improve the efficiency of the intrapreneurial ventures. The management must conduct cost-benefit analysis of the intrapreneurial ventures. The evaluation would enable the successful intrapreneurial ventures to expand and unsuccessful one to disband. Inefficient intrapreneurial ventures must not be allowed to exist merely because of vested interests. Rewarding Performance: Intrapreneurs must be rewarded for the time, effort and risk taken to create a new venture. The rewards must be equitable, ie., in relation to performance. If the rewards are not equitable, then there will be job | dissatisfaction, resulting in lower commitment, lower efforts, IIE ENTREPRENEUR 1. Meaning: Entrepreneur is a person who undertakes business venture and assumes risks and rewards. 2. Ownership and Control: Entrepreneurs possess direct ownership and control of resources. | Entrepreneur may not have to depend on others for the allocation and utilization of resources. 3. Primary Motives: The primary motives of an entrepreneur are independence, innovation and to get rewarded for performance by operating a business venture. 4. Time Orientation: ‘Anentrepreneur normally considers a longer-time orientation, say 5 to 10 years for the growth of the enterprise or venture. An entrepreneur may consider profit potential only from longer-time frame. 5. Activity: Entrepreneur gets directly ved in the business activity. aah Se ‘An Intrapreneur lacks ownership as he works in an existing but he has control cover allocated resources, ae Primary motives of an Intrapreneur are independence, innovation and. to get corporate rewards from the organisation in which he works, For an Intrapreneur, the time orientation can be medium term corlong term depending upon the nature of the programme. For an Intrapreneur, there is direct involvement in the project, and thereis less of delegation, istakes. He takes up responsibility for failures or takes. An Intrapreneur may make an attempt to hide mistakes, or to hide| Le risky projects before they are ready, Anentrepreneur makes his own decisions. No need for approval from others. ‘An Intrapreneur may have to take approval for major decisions from top management. 8. Resources: Anentrepreneur makes use of his ‘own resources, whether owned or An Intrapreneur makes use of resources of the firm in which he borrowed. is working. 9. Popularity of the Concept: Entrepreneurship isa popular _| Intrapreneurship isa modern concept in business world. concept, mostly adopted in large MNCs. 10. Mentors/Sponsors: Normally entrepreneurs do not An Intrapreneur may require the xt of a mentor or 5 Entrepreneurs may not require _| Intrapreneur may require paper paper qualifications. Buta qualification. as he normally works successful entrepreneur needs to | foran MNC. He also requires a have good amount of experience _| good experience and innovative and enterprising skills. skills. When women are involved in entrepreneurial activity relating to production/ distribution of goods and services to earn rewards and to assume risks, it is called as women entrepreneurship. Women entrepreneurship is the process in which women engage in business operations and provide employment opportunities to others. A woman entrepreneur may be defined as a woman who initiate, organize and operate a business enterprise. n entrepreneurs refer to those businesswomen who undertake operations with a vie eurs, women omen entrepreneur is the same sd in chapter one. Types and Classification of Entrepreneurs 57 1 Problem of Finance: Normally, women entrepreneurs face the problem of finance. They find it difficult to obtain working capital and fixed capital from the organized sector, mainly due to lack of security. The banks are also reluctant to provide finance to women enterprises for the fear of default. However, of late the situation has changed, and a number of banks have developed special financial schemes for women enterprises. Marketing Problems: The women entrepreneurs face the problem of marketing. They find it difficult to negotiate with intermediaries, as males dominate most of channels of distribution. They also lack skills in pricing, and promotion. However, at present, women. entrepreneurs are getting support from NGOs, and Government agencies in marketing their products. Problem of Raw Material: The women entrepreneurs do face the problem of raw materials. At times, there is shortage of raw materials, which affects the production cycle. At times, the quality of materials is of inferior nature, and as such, it affects the quality of output. Problems of Technology: The women entrepreneurs face the problem of technology. They often use outdated technology. This is mainly due to lack of funds, and lack of awareness of modern technology. Therefore, the overall performance of women enterprises gets affected. Problem of Infrastructure: Entrepreneurs in general face the problem of infrastructure. The women entrepreneurs face the problem of infrastructure, especially in backward areas. However, since 1991, the Government of India has developed the scheme of Integrated Infrastructure Development Scheme in rural areas, and since 2000 in urban areas as well, to solve the problem of infrastructure faced by the entrepreneurs. Poor Quality Control: The entrepreneurs in general face the problem of quality control. There is lack of emphasis on quality in most of the enterprises. Therefore, the sales of small enterprises do get affected. urial Manas: MIS! SEMI) Low Labour Productivity: The labour productivity is low j, enterprises, and women enterprises are n) bour produ is low due to pow faulty placements, lack of training 58 exception. The recruitment and select and development, etc. 8. Lack of Professional Management: Indian entrepreneur, * jheluding women entrepreneurs lack professional managemen, The lack of professionalism is due to the following: Use of outdated technology. Over emphasis on profit objective. ity. © Poor personnel policies, etc. . Lack of social responsil pc hence Women entrepreneurs have to face special problems due to their gender. The special problems faced by women entrepreneurs in India are as follows: 1. Problem of Dual Responsibility: The women entreprene have to balance their household life and business work. Qui often, women entrepreneurs have to look after their household chores apart from the business work. In Indian society, the lad of the house has a social obligation to look after the day-to-day chores of the household, such as cleaning, cooking, caring for the children, etc. As far as male entrepreneurs are concerned, they can concentrate only on business work, and not on household aspects. Therefore, the women entrepreneurs have a disadvantage as compared to male workers. However, of late the scene has changed in India, and the dual career couples share more or less equal responsibility on the home front. 2. Limited Mobility: The women entrepreneurs have limited mobility as compared to male entrepreneurs. Businesswomen need a good deal of travelling for conferences, meetings, negotiations, etc. However, the attitude towards women is bi iol ; India. For instance, a single woman asking for a na hotel is still looked upon with suspicion. | ™ Classification of Entrepreneurs 59 3, Problem of Education: In India, women in general have low nas compared to men. In India, the overall literacy as per 2011 census was 65.46%. The female literacy rate is lower. There is lack of business awareness among women especially in rural areas. However, of late, this trend has changed, and females, especially in urban areas do get a good education, including management and technical education. Male-dominated Business Commu: entrepreneurs dominate the Indian bt Therefore, women entrepreneurs and deal with businessmen. Al in certain states, women are not given equal treatment as that of males, and as such women entrepreneurs find it difficult to operate a business undertaking. 5, Low Risk Bearing Ability: Normally, women entrepreneurs have low risk bearing ability. This is because; women in India lead a protected life. They are less self-dependent as compared to males, Secondly, they have to balance between household life and business work. Therefore, the risk bearing capacity of women gets reduced 6. Problem of Managing Male Workers: In India, women entrepreneurs find it difficult to manage male workers. The male workers ignore the directions of women managers. They look down upon women managers, including women entrepreneurs. However, this trend has changed, and women entrepreneurs do not find much difficulty in managing male workers, especially when they possess good managerial skills. DEVELOPMENT OF WOMEN ENTRI E IN INDIA UNDER FIVE YEAR PLANS TER: Hs Once upon time, women were not considered to be entrepreneurs. It took several decades to show that women can perform different types of role. It took centuries to see that women can contribute to the economic activities of the country. The government has shown 60 et a rte ee Tie Business Planning and Entreprenenrial Management (Ms, sy SEM major concern to bring women development into the mainsty of our economy. a The development of women entrepreneurs can be explained i the help of Five Year Plans implemented by the governing Gradually, in the all the Five Year Plans, government has ta measures to uplift the participation of women in economic sphe and broadly, contributing to women entrepreneurship. 1: First Five Year Plan (1951-56): Women developmen programmes during this period were mainly welfare-orient The Plan emphasized that men and women shall be given equ opportunities and equal facilities to work. Voluntay organizations were established to implement welfar programmes for women and children. These welfare activits were taken up at two levels: e Central Social Welfare Board — State Social Welfare Board Second Five Year Plan (1956-61): Along with the welfare approach, the Second Five Year Plan gave priority to women’s education. The Plan facilitated formation of Mahila Mandals tht focused on: Women health ¢ Women nutrition © Maternity care Third Five Year Plan (1961-66): The Third Five Year Plan ga high priority to: @ Women’s education ¢ Immunization of pre-school children e@ Supplementary diet for expectant and nursing mothers Fourth Five Year Plan (1969-74); ‘The priority areas of Fouth Five Year Plan were same as the Third Five Year Plan. !" addition, Family and Child Welfare Centres were establis! that would provide women with: il Types and Classification of Entrepreneurs 61 Training facilities e Employment assistance 5, Fifth Five Year Plan (1974-79): During this planning period, in 1976, Women’s Welfare and Development Bureau was set up under the Ministry of Social Welfare. This Plan shifted the women’s issues from welfare orientation to development orientation. The development approach of women had twin objectives: Removal of poverty e Attainment of self-reliance 6. Sixth Five Year Plan (1980-85): The Sixth Five Year Plan focused on three core areas relating to women: eHealth ¢ Education ¢ Employment Several programmes were introduced to improve the working conditions of women and to raise their economic and social status. Some of such programmes and facilities are stated as follows: (i) The Directorate General of Employment and Training (DGE&T) set up National Vocational Training Institute at New Delhi to provide vocational training to women. Three regional vocational training centres were set up, one each at Bombay, Bangalore and Trivandrum. (ii) 144 Industrial Training Institutes (ITIs) were exclusively established for providing vocational training to women. (iii) The Integrated Rural Development Programme (IRDP) accorded priority to women heads of households. (iv) Micro credit scheme was introduced to uplift rural women through rural credit. 62 a Business Planning and Entrepreneurial Management (BMS: SExy (v) In 1981, the First National Conference of Wong Entrepreneurs was held at New Delhi. It stated giving hj priority to women in the allotment of land, sheds, sanctic of power industrial licensing, etc. (vi) The Conference also recommended: e Simplification of loan procedures e Counseling services © Centralized marketing agency e Special training programmes for women entrepreneurs (vii) In 1982-83, a new scheme - Development of Women and Children in Rural Areas (DWCRA) was introduced to provide training to women for activities, such as: Pickle making © Candle making Baking, etc. (viii) The scheme of Krish Vigyan Kendras was extended '@ women, which helped to bridge the gap between farmers knowledge and technology. (ix) Under the scheme of ‘Science and Technology for Wome eight Home Science Colleges were established only women, (x) A special thrust was given to training women ° instrumentation technology for repairs and maintenan® work of electronic equipments in office and hospitals: (xi) National Research Development Corporation (NRDO) up a number of technology demonstration-cum-trainl® centres to provide expertise and resources to womel entrepreneurs in respect of new technologies. ee pes and Classification of Entrepreneurs 6 (xii) The Ministry of Information and Broadcasting presented appealing programmes for creating increased awareness of the role of women in economic development. Seventh Five Year Plan (1985-90): The Second International Conference of women entrepreneurs was organized at New Delhi by the National Alliance of Young Entrepreneurs (NAYE) in 1989. Important features of the Conference were: e The international agencies like UNCTAD, UNDP, ILO, and the national government should adopt appropriate measures to encourage trading of products manufactured by women entrepreneurs. The government and other agencies engaged in promotion of women entrepreneurship must be provided with fiscal and expert assistance. e In international and national trade fairs, the products manufactured by women entrepreneurs should be widely displayed. During the Seventh Five Year Plan, all the development programmes were continued. The main objective was to improve socio-economic status of women and to bring women into mainstream of national development. The Plan highlighted the following aspects: (i) Itwas suggested that women be treated as separate target group inall major development programmes of the country. (ii) It was also suggested to devise and diversify vocational training facilities for women to suit their changing needs and skills. (iii) Efforts should be made to increase productivity and efficiency of women through appropriate technologies, equipments and practices. (iv) Necessary assistance to be provided to women entrepreneurs for marketing their products. (v) Women should be involved in decision-making proc: 64 - ess Planning and Entrepreneurial Management (BMS: sey, j, lh ff Busin Bighth Five Year Plan (1992-97): The focus of the Plan s human development, wherein women development p| layed important role. The women entrepreneurs received the benef f of the programmes and schemes introduced during the Previn, Plans. Also, those programmes were closely monitored so: thy ¢ it can reach a wide women base. e National Commission for Women (NCW) was establish at New Delhi in 1992, with an objective to represent ty f rights of women in India and to provide a voice for the: jssues and concerns. At State level, State Commission for Women was also formed. , ' e The Constitution (734 Amendment) Act, 1992 and the @ Constitution (74 ‘Amendment) Act, 1992 were passed. be These Acts reserved 1/34 of the seats for women representatives in Panchyati Raj and Municipalities | respectively. This enabled women participation in poli" ig process and decision-making at grassroot level. | oF © Mahila Samrudhi Yojana (MSY) - Microfinance Schemefo |g Women was launched in 1993 with the objective of empowering rural women through savings habit, sel | reliance and confidence. i © Prime Minster Rojgar Yojana (PMY), 1998 and EDPS we Se introduced to develop entrepreneurial qualities among yy ural women, = ey © ‘Women in Agriculture Scheme’ was introduced to trait’ women farmers having small and marginal holdings ne agriculture and allied activities. wl Thus, during the Eighth Five Year Plan, there has been definite rom women development to women empowerment Ni H Hane nee ees Plan (1997-02): Economic growth and \ SSS oment is possible when the country lay emphasizes &* inteaaond a wenn sntrenreneury The government has schemes ing the ‘ Cr promote women entrepreneurship: © the planning period \ ypes and Classification of Entrepreneurs & (i) Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme was launched by Ministry of Small Industries to develop women entrepreneurs by developing entrepreneurial qualities. (ii) Special attention to be given to agriculture and allied sectors for improving existing skills of women and imparting to them new skills under the programmes of farmer's training, exchange of farmers, training in horticulture, fisheries, poultry, dairy development, fodder production, post-harvest technology, application of pesticides, budding and grafting, social forestry, etc. (iii) Women Component Plan, a special strategy was adopted by the government to provide assistance to women entrepreneurs. (iv) Swarna Jayanti Gram Swarozgar Yojana and Swaran Jayanti Sekhari Roazgar Yojana were introduced by government to provide reservations for women and encouraging them to start new ventures. (v) Women Development Corporations were introduced to help women entrepreneurs in arranging credit and marketing facilities. (vi) Training and retraining was ensured for many science and technology related programmes for women. (vii) State Industrial Development Bank of India (SIDBI) introduced following schemes to assist women entrepreneurs: @ = Mahila Udyam Nidhi © Micro Credit Scheme for Women © = Mahila Vikas Nidhi Women Entrepreneurial Development Programmes © Marketing Development Fund for Women Se a 66 10. Business Planning and Entrepreneurial Management (BMS: Sey May Tenth Five Year Plan (2002-07): The measures during the Ten Five Year Plan have a direct bearing on women empowermey in our country. (i) Women Self-Help Groups (SHGs) to be encouraged to ay as agents of social change, development and empowermey of women. (ii) National Institute for Entrepreneurship and Small Busines Development (NIESBD) organized EDPs for women. (iii) The integrated approach adopted by the two on-going prograrmmes of women empowerment: Swa-Shakti and Swayamsidha to be further strengthened and expanded. (iv) Special training programmes in latest technology, keeping in view the role of women as producers, will be extended to rural women as well. (v) Inorder to increase the share of women in factories and industrial establishments, efforts will be made to encourage women to equip themselves with necessary professional and vocational skills. (vi) Necessary training programmes to be introduced to retain and upgrade the skills of the displaced women to take up jobs in new and emerging areas of employment. (vii) Special attention to be given to women in informal secto! to ensure that they get minimum and equal wages. (viii) Formulating appropriate policies and programmes t generate opportunities for self-employment to women it traditional sectors like khadi and village industries, handicrafts, handlooms, etc. (ix) Encouraging women to increase representation in services coaching facilities and taking up competitive exams. (x) Efforts to be made to set up an exclusive Development Bat for women entrepreneurs in the small scale and tiny sectors, vpes and Classification of Entrepreneurs a 1, Bleventh Five Year Plan (2007-12): The main aim of the Eleventh Five Year Plan was inclusive development i.e. every woman in the country should be able to develop her full potential and share the benefits of economic growth and prosperity. (i) Existing schemes and programmes were modified to make them more effective and to bridge the loopholes. (ii) New schemes and programmes were initiated during the planning period: © SABLA for empowering adolescent girls © Mahila Kisan Sashaktikaran Yojana for providing leadership training to women farmers © Ujjawala for combating women trafficking © Dhanalakshmi for tackling issues relating to declining sex ratio (iii) The Bill against sexual harassment of women at workplace was introduced in the Parliament. This Bill seeks to provide a safe working environment to women. (iv) In 2010, National Mission for Empowerment of Women (NMEW) was launched for strengthening inter-sectoral convergence at the Central, State, District and lower levels of governance making it possible for women to know and access all government schemes and programmes. (v) The National Resource Centre for Women was established. The first pilot convergence project was launched in Pali district of Rajasthan in September, 2011. (vi) Rashtriya Mahila Kosh scheme to be restructured and to expand the benefits to the disadvantaged working women, (vii) SHGs will be strengthened and linkages with financial institutions will be facilitated. (viii) Gender Budgeting and Gender Outcome assessment as a part of Gender Audit to be undertaken for public expenditure, progarmmes and policies at national, state slate ta eral 70 12, joc eee Business Planning and Entrepreneurial Management (BMS: SEM) Scheme of State Bank of India: Under this scheme, loans ary provided upto % 25,000/- to women entrepreneurs to set y business units. Women groups wanting to set up Ai enterprises and be self-employed are also covered under this scheme. To qualify for this scheme, woman entrepreneur has to manage the business by herself and should have at least 51% of the financial stake in the business. District Industrial Centres: The concept of DICs was proposed in the 1977 Industrial Policy. The DICs became operational since 1979. The DICs provide special assistance to women entrepreneurs of SSI units in respect of training, research, and marketing assistance. Schemes of SFCs/SIDCs: The State Financial Corporations and State Industrial Development Corporations provide schemes for women entrepreneurs in the area of finance. Women entrepreneurs can obtain direct finance from SFCs/SIDCs for setting up enterprises. The SFCs in turn can obtain refinance from SIDBI. Production Grant: Women entrepreneurs can obtain a grant for setting up a production unit from Central Social Welfare Board. This grant is available under Socio-Economic Programme of the Board. The Central Social Welfare Board also provides training and extension services to women entrepreneurs. Schemes of KVIC: The Khadi Village Industries Commission undertakes various schemes for the benefit of women" entrepreneurs. The schemes of KVIC provide financial and nom financial assistance to women entrepreneurs to set up small business units or cottage industries in rural and semi-urban areas. Women Industries Fund entrepreneurs’ get 15% project. The seed capital is subject to Scheme; Under this scheme, womet seed capital of the total cost of the amaximum amount of &! ved © 10 Lakhs. The c » project not to exce a d the cost of the project ni a He antrepreneur must contribute at Jeast 10% of the total Hone of partnership firms or joint stock project cost. In case a ‘Types and Classification of Entrepreneurs 7 companies, the woman entrepreneur(s) should have a minimum of 51% of the total project cost. This scheme is operated through nationalized banks or State Financial Corporations. 13. Scheme on Trade Related Entrepreneurship Assistance and Development (TREAD) for Women: The Government of India launched a scheme entitled “Trade Related Entrepreneurship Assistance and Development (TREAD) during the 9th plan period. The scheme aims at economic empowerment of women through trade related training, information and counselling. This scheme provides for marketing development and financial loans through NGOs. The assistance is provided for self- employment ventures by women. Self Help Group is a voluntary association of poor, formed for the purpose of social and economic empowerment. The SHG may consist of 10 to 20 persons. But for minor irrigation projects, there is no ceiling on number of persons in a group. According to National Bank for Agriculture and Rural Development (NABARD), SHG may be defined as, “a small, economically homogenous and affinity group of rural poor voluntarily formed to. save and mutually agree to contribute common fund to be lent to its members as per group decision for their socio-economic development”. Normally, members of the group belong to Below Poverty Line (BPL) families, However, Above Poverty Line (APL) persons can be included, But the APL members will not be eligible for subsidy from the Govt. Normally, APL members comprise of about 20% of the total members. The main objective of the formation of SHG is to generate employment, thereby solving the problem of poverty, The main Principle of SHG is “Unity is Strength”. 72 Business Planning and Entrepreneurial Management g MS: sp The group members save regularly and transfer siete ea common fund known as group corpus fund. The aan use the corpus fund and the other funds which the. UP mem banks or Government for employment generation act; SHGs facilitate the development of women entrepreneurs, be explained as follows: i This cn 1. Women Empowerment: SHG facilitates women empowemen, In 2010, over 75% of SHGs were formed by women. The ville women come together to form SHG. After formation of a grou, they get financial assistance from the banking sector. They at supported by NGOs. The village women set up micro business with the help of financial assistance. This enables them generate employment for the poor women, which in turn bring income to them. Therefore, SHG empowers poor womet economically as well as socially. 2. Employment Generation: SHG is instrumental in generating self-employment to women and also providing employmet to others. SHGs can help women to engage in income general's business activities, such as papad making, candle making agarbatti making, tailoring, handicrafts, embroidery, etc. iabits amon erate ks ae 3. Savings and Investments: SHG develops saving h: women entrepreneurs, The financial resources 8° through savings and micro credit obtained from a utilized to provide Joans or advances to the members ° ‘The members use the financial resources for: © Setting up small business units ‘ sit s unit © Meeting working capital of existing business 4 © Meeting fixed capital of existing business uni" —— ypes and Classification of Entrepreneurs 73 Financial Inclusion: SHG facilitates financial inclusion of women entrepreneurs in society. Normally, the poor village women entrepreneurs do not get the advantage of organized banking sector. They, generally, depend on unorganized sector such as moneylenders for their financial needs. SHG links women entrepreneurs to the organized banking sector. This reduces exploitation of poor village women entrepreneurs by moneylenders and landlords. Better Socio-economic Status: SHG may lead to better socio- economic status of the family. Due to employment, the income level of the women entrepreneur increases. Therefore, the family members of the women entrepreneurs may g0 for better education, health and other welfare facilities. Therefore, SHG is responsible for uplifting the socio-economic status of women entrepreneurs. 6. Standard of Living: SHG helps to raise the standard of living of poor village women entrepreneurs. Due to SHG, they get employment. Employment increases purchasing power of the women entrepreneur, which in turn improves their standard of living. 7. Poverty Alleviation: SHG is formed for poor people in rural areas and urban areas. Due to SHG, poor women entrepreneurs get employment. Employment increases level of income, which in turn reduces poverty of people to a certain extent. 8, Training: SHGs encourage its members to set up small business units jointly or individually. The women entrepreneurs may get training from supporting institutions or they may earn to develop their skills by operating small business. SHG encourages poor women entrepreneurs to save a part of their income on regular basis. SHG holds meetings to discuss various matters relating to savings, lending, recovery of loans, etc. The purpose, terms and conditions for lending to members, rate of interest, etc, are decided by the group members. The SHG keeps records of accounts, and other activities, Books are kept for all transactions. 9, Accounting Skills: Be oe 74 Business Planning and Entrepreneurial Management (Bis, spy én 10, Decision-making Skills: SHG facilitates effective deve making skills among women entrepreneurs, The a entrepreneurs meet regularly may be weekly, fornighty monthly. Due to meetings, the group members understand other's problems or difficulties. Group discussion takes p, to solve the problems. Possible alternatives are identified, arrive at a solution. The problems are sorted out by the Br0w decisions. 11. Marketing Skills : SHG facilitates developing marketing sis to women entrepreneurs. Marketing skills include: Sales promotion skills Personal selling skills Negotiations skills Social entrepreneurs are individuals with innovative solutions society’s most pressing social problems. They are ambitious and persistent in tackling major social issues and offering new ideas wide-scale change. Just as entrepreneurs change the face of business, sot! entrepreneurs act as the change agents for society, sei2it opportunities others miss and improving systems, inventing nev approaches, and creating solutions to change society for the bette While a business entrepreneur might create entirely new indus a social entrepreneur comes up with new solutions to social prove and then implements them on a large scale. Incase of social entrepreneurship, profits are not the end resul just the means to achieve the end result of social upliftment, empowerment. The focus of social entrepreneurship is to m#x™ social satisfaction, see A in Social entrepreneurship refers to the practice of conti innovation, resourcefulness and opportunity to address critical § and environmental challenges. Types and Classification of Entrepreneurs 5 According to Bill Drayton, social entrepreneurs need to have four basic traits: 1 Creativity: Social entrepreneurs are creative; especially in two areas: © Goal-setting : They are creative in having a vision; they are clear as to what is the vision and how will they achieve their vision. Problem-solving : They are creative to bring social output with the help of using a variety of resources and taking a decision to pursue the vision even when the social climate may not be favourable. Entrepreneurial Quality: Social entrepreneur looks for a social change. If he will see a potential for social change, he will put all his efforts and resources to transform his vision into reality. He believes that his idea will bring about a healthy change in society and looks forward for a bright future of the society. Social Impact of the Idea: The vision for social change should not only be implemented properly but also it should be sustainable. This means that, even if the founder of the social change is gone, the idea is still able to bring the desired social change. Ethical Fiber: Social entrepreneurs must be trustworthy. They must be comfortable to bring about a positive social change in the face of obstacles that may come in their way. They rarely take credit for bringing about the change. They attribute it to their team members, They are primarily emotion-driven, Examples include: © Mr. Vinoba Bhave; Founder and leader of the Land Gift Movement, He caused the redistribution of more than 7,000,000 acres of land to help India’s untouchables and landless. © Ms. Florence Nightingale (U.K.): Founder of modern nursing, she established the first school for nurses and fought to improve hospital conditions. repreneurial Management (BMs: sp nad Yunus, the winner of Nobel Peace soe for economics and founder of Grameen Ban Bangladesh, who was instrumental in providing finasce to poor people (especially women) to set up min" tinits to generate self employment and to overcon poverty. ly ig if e Dr. Mul There are several ways to develop and promote socia entrepreneurship in our country. Some of the measures are explained as follows: 1. Training Institutes: There are several training institutes in India that offer courses on social entrepreneurship. Some of the prominent training institutes are: Tata Institute of Social Sciences (TISS), Mumbai offers M.A. programme in Social Entrepreneurship Narsee Monjee Institute of Management Studies (NMIMS), Mumbai offers part-time MBA programme in Soci Entrepreneurship ¢ Centre for Social Inititaive and Management, Bangalore offers a part-time programme called - ‘Social Entrepreneurship Outlook Programme’ (SEOP) 2. Support from Corporate Houses: Thereare many big corporate houses nationally and internationally that support social entrepreneurship. For instance, Microsoft Corporation has established the Bill and Melinda Gates Foundation that utilizes its funds for social good. The Foundation has partnered with India at different levels and has served in the areas of health, ‘sanitation, ic in i ri ae agricultural development and financial services to 3. Organizing Events: There can be increased awareness and Promotion of social entrepreneurship by organizing events n Entreprenew of Entrepreneurs s An event - TATA Social Ent is tive between TATA group aed ee has anstitute of Management - Calcutta (IIM-C). This event indi encouraging the youth to become soci: ‘entrepreneurs, aimsatcTronge enables to create an ecosystem for social The che eurship and encourage sustainable, scalable and enttepr e social impact. measurabl nal Policy for Skill Development and Entrepreneurship: Nay of Skill Development and Entrepreneurship has Minist "4 National Policy for Skill Development and eneurship in 2015. The policy encourages social as it undertakes the following measures: challenge, enterprises, Encourage universities and academic institutions to a Bretjuce a course on social entrepreneurship, including inrough online distance education. Foster @ social capital market place by offering fiscal © entives to attract investors. Make provision for funding support under a separate Scheme(s) like social venture fund, to facilitate credit to social entrepreneurs. te creation of social enterprises even with a modest lita' ee igh social incubates across the country. * capital base, throu wards for Social Entrepreneurship: There are social organizations that recognize the efforts of social entrepreneurs oth help in developing and promoting the climate of social “inepreneurship in the country. For instance, The Schwab Foundation for Social Entrepreneurship, a sister organization tr World Economic Forum, in partnership with the Jubilant ds the exceptional work of social tia Foundation awar Biiprencurs in our country. In 2016, Neichute Doulo, Entrepreneurs Associate (EA) was awarded as India Social Entrepreneur of the Year. Th 1. — IMPORTANCE OF SOCIAL, _ ENTREPRENEURSHIP _ E erole and importance of social entrepreneu: PCAN be explain as follows: Hl Social Development: Social entrepreneurship fa eS Soci development. Social entrepreneurs participate in soe development activities like education, sports, community development, etc. by providing donations or through, sponsorship or by organizing social welfare campaigns mR issues, such as: 3. 4. © Female literacy © Drug addiction © Environment degradation, ete. economic growth in thecountry by bringing about soc Economic growth relates to the National income i sectors, such as heali utput increase in national income. ‘creases when there is growth in social th, sanitation, education, etc, Employment: Social entrepreneurship is responsible for direct and indirect employment: * Direct employment in social enterprises in various supporting sectors like insurance, etc, Regional Development: Social entreprene i about regional development, Secial entrepreneane ae i industries in backward areas as well, may be duete ieiean centives for setting up of industries in backward srece and, or to take advantage of local conditions in backwari ase Ks a result of this, there is balanced regional development. For instance, atthe time of independence, a few slates industrially developed such as Maharashtra, and Beta, pes and Cl i 9 5. ww a number of states are industri Now fives taken by the government and init set up industries in backward areas to kidnapping, etc. If ere could have been business firms provide tax revenue to the Goverment eGovernment spends a part of tax revenue of law and order e

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