Semester II Section ‘A’ Submitted To: Prof. Vinod Sharma Vijayvargiya Submitted By: Akash Akshay Waze Ankita Agarwal Khushboo Jaggi Manali Kala Mitang Panchal

References. 2. Effect of entrepreneurship on Indian Economy. 3.Medicaps Institute of Technology and Management Indore (M.) CONTENTS 1. Introduction.MITM Page 2 . Effect of Entrepreneurship on Indian Economy. Top 25 companies that made the cut.P. Role of entrepreneurship in economic development. 5. 4.

Introduction Entrepreneurship is the act of being an entrepreneur. which can be defined as "one who undertakes innovations.MITM Page 3 . identify them and seize them mainly for economic gains. He is the catalyst for social change and works for the common good. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals. Role of Entrepreneurship in the Economic Development Entrepreneurship helps in the process of economic development in the following ways: 1) Employment Generation: Effect of Entrepreneurship on Indian Economy. An entrepreneur can be regarded as a person who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. finance and business acumen in an effort to transform innovations into economic goods". They look for opportunities.

Directly. Entrepreneurs generate employment both directly and indirectly. they are forced to set up their enterprises in the smaller towns away from big cities.Growing unemployment particularly educated unemployment is the problem of the nation. education. 3) Balanced Regional Development: The growth of Industry and business leads to a lot of Public benefits like transport facilities. Entrepreneurs are able to produce goods at lower cost and supply quality goods at lower price to the community Effect of Entrepreneurship on Indian Economy. When the industries are concentrated in selected cities. Thus entrepreneurship is the best way to fight the evil of unemployment. 5) Better standards of living: Entrepreneurs play a vital role in achieving a higher rate of economic growth. development gets limited to these cities. This helps in the development of backward regions. The goods and services produced are for consumption within the country as well as to meet the demand of exports.MITM Page 4 . Thus entrepreneurship increases the national income. entertainment etc. 2) National Income: National Income consists of the goods and services produced in the country and imported. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurs are required to meet this increasing demand for goods and services. A rapid development. The available employment opportunities can cater only 5 to 10 % of the unemployed. This concentration of power in a few hands has its own evils in the form of monopolies. The domestic demand increases with increase in population and increase in standard of living. health. self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population. in view of increasing competition in and around cities. 4) Dispersal of economic power: Industrial development normally may lead to concentration of economic powers in a few hands. Thus it helps in weakening the harmful effects of monopoly. When the new entrepreneurs grow at a faster rate.

Indeed. India’s economy grew at an average of 6. 2001). India can do more. however. Further. 6) Creating innovation: An entrepreneur is a person who always looks for changes. As was stated earlier. When the price of the commodities decreases the consumers get the power to buy more goods for their satisfaction. The economic reforms of the early 1990s set the stage for substantial improvements in the Indian Economy. India’s economy struggled as long as it was based in a system of government regulation with little interaction with economic forces outside the country. Effect of Entrepreneurship on Indian Economy. Further. In short. He always try to introduce newer and newer technique of production of goods and services. Effect of Entrepreneurship on the Indian Economy The progress of Indian economic development from 1947 to the present provides further evidence that individuals do respond to incentives in their pursuit of self-survival and accumulation of wealth. An entrepreneur brings economic development through innovation. he also introduces new ideas and new combination of factors. Entrepreneurship also helps in increasing productivity and capital formation of a nation. India’s GDP and per capita income both increased substantially from 1990-1991 to 1998-1999. Entrepreneurial efforts have been found to generate a wide range of economic benefits. particularly the role of the government. In this way they can increase the standard of living of the people. 2000). its rate of inflation and fiscal deficit both decreased substantially (Bhalla. the nature of this response depends on the economic climate.MITM Page 5 . Finally. Improved exchange rate management led to improved financing of the current account deficit and higher foreign exchange reserves. Apart from combining the factors of production. the development of the entrepreneurship is inevitable in the economic development of the country. one of the more recent microeconomic approaches to economic growth is the promotion of entrepreneurial activities. to further advance its economic development.according to their requirements.3 percent from 19921993 to 2000-2001 (Acharya.

Appnomic Systems Effect of Entrepreneurship on Indian Economy. on the other.” which can generate not only the opportunities for entrepreneurship but also the capacity for entrepreneurship – in particular.MITM Page 6 . Bang Bang Films 3. Eka Software Solutions 5. have created over 2. and the skills and motivation. the entrepreneurship opportunities. Vaatsalya 6. and increased wealth for future community investment (Kayne. a process in which new firms are created and older. 1999). on the one hand. Suminter India Organics 4. the skills and motivation necessary to succeed. new jobs. The India Fast Growth 25 companies are: 1. The 25 companies that made the cut The top 25 companies that made the cut. Together.312 jobs in two years. lead to business dynamics that yield creative destruction.including new businesses. innovative products and services. less efficient firms are destroyed. starting in 2007. The overall result for a country is economic growth. redBus 2. The GEM Conceptual Model suggests that the social-cultural-political context within a country must foster certain “General National Framework Conditions. and are expected to grow strongly in 2010.

com 11. represent the leading edge of a new approach to India’s competitiveness. Knowcross Solutions 14. Micromax Informatics 8. iCreate Software 24. led by dynamic men and women. Transasia Bio-Medicals 17. Anlage Infotech 9.7. Vedam Design and Technical Consultancy “The India 25 companies. Future Focus Infotech 19. InfoSoft Global 12. Cross-Tab Marketing Services Companies to watch out for: 20. Travelspice. Desicrew Solutions Pvt.MITM Page 7 .” – Michael Porter. Ltd. Applabs 18. Druva Software 23. 22. Jagtap Nursery 13. Apalya Technologies 21. Indus Net Technologies 15. Effect of Entrepreneurship on Indian Economy. A1 Future Technologies 16. The Loot 10. Harvard Business School and management guru. Professor. LatentView Analytics 25.

in Effect of Entrepreneurship on Indian Economy.  India study channel.  /entrepreneurindia.References  Wikipidea.  Asia-Pacific Development Journal.MITM Page 8 .

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