yau nA

.Sc. (P) HSc,6uSe

See-13

Assignment
Entrepreneurial Growth Process
1. Morris and Kuratko (2002:30) provided a more integrated picture of
the entrepreneurial process as shown in fig.

INPUTS The Entrepreneurial | OUTCOMES

Process
A growing
Environnental Entrepreneurial
Intensity (EN venture
Oppormunities
Value creatiou

Identify Nunberof events (and) degred

Enuepreieuia! oppornnity New products,
Individuals Develop and of entrepreneurship services

refine concept
Processes
Assess and Proactive
Lnnovat
acquire ness
Organusational
necessary
10n
Technologies
resources

1aritatsn..
Profits and/or
Personai bene hts
Unique business Risk taking
cOcepts
Einploymeat
asset & revenue

roowth
Resources

&
Fig. shows An input-output perspective of the Entrepreneurial Process (Morris
Kuratko 2002:30)

From this model, the following activities based model can be derived, illustrating
that the entrepreneurial process is a continuous process wherein entrepreneurs

need to do certain tasks creatively in order to ensure success:

 2. Brazeal and Herbert (1999:33) offer a model of the entrepreneurial
and business. The
process, integrating the fields of technology, psychology
and "creativity" are highlighted
roles, played by "change", "innovation"
recognizing that entrepreneurship is enabled by the following:
. The current or potential existence of something new (an innovation)

Which may have been developed by new ways of looking at old

problems (creativity)
capability of prior processes or
solutions to respond
O r the lessened
on by new or emerging
effectively to new problem parameters brought

external conditions (environmental change)

or
supplant orbecomplementary to existing
processes
Which can

solutions(a change), and

When championed by one or more invested individuals (the innovator

from an imbalance between the potentiality of

activity stems
Entrepreneurial
of an exploited
something new and its realization, that is, the creating
by one or more individuals (Brazeal &
existed previously,
opportunity where none

Herbert 1999:34)

Process: The Respective

A Simple Model of the Entrepreneurial Innovation
and
Roles of Change, Creativity

Outcome
Process

Human volition -
Entrepreneurial Event
Innovation (2)
Innovatlion (1) change
(3)
Environmental Change
Hostility
Dynamism

Creativity Creativity
literature
the technology
Note: Innovation (1) is housed in literature
the psychology
Innovation (2) is housed in housed in the business literature
Entrepreneurial
Event (3) is

Process (Brazeal & Herbert 1999 34)

Model of the Entrepreneurial
Fig shows the
 implementation
of creative
the successful
be defined as
the
OVation can therefore and involves
new ideas are developed
ds. Innovation is the phase where Innovation is seldom a
activity.
d u y to idea into a money generating
change an
business enterprise.
Systematic, structured process in the case of the small
on an and
Ideas are generated
Creativity is the point of originatioh for innovation.
hoc basis and the business plan is still rough and unfinished.
The innovation process may involve the refinement or modification of existing

are no limitations
to
policies, procedures, product lines and services but there
what may be innovated or to the magnitude of the advance represented.
Innovation should thus be regarded rather as a process or an outcome in whicn

certain skills are necessary.

Creativity is the process, though which invention occurs, that is creativity is the
enabling process by which something new comes into existence. The creative
process can be seen as the starting point of innovation, which seats into motion a
series of events culminating in the entrepreneurial event. Not all innovations are
creative, for some innovations are incremental changes or were developed by
others and adapted for use locally.

Brazeal and Herbert model, however, did not offer sufficient insight for the
purposes of this study on the "how" of activities associated with the
entrepreneurial process, creativity and innovation.
 SeTion (3)
RU Na 5-
Bse( H ome Seonus 1 y
innegraieri rhrur i ine pnirepreneuriai
virris Ruraikn i~tRii:i pruieri
a rire

process,as shown in figure 3.5.

INPUTS The Entrepreneurial OUTCOMES

Process A growing
Environmental
Entrepreneurial
intensity (E) venture
opportunities
Value creation
Identify Number of events
Entrepreneurial Opportunity (and) degree of New products,
individuals
Develop& entrepreneurship services
refine concept
An organisational Processes
Assess &
Innov Proactiv
acquire eness Technologies
Unique business ation
necessary
Profits and/or
concepts resources Risk taking
- Personal benefits
implementation
Employment,
Resources asset & revenue

growth

à Kuratko
oi tne nirereneuriäi
Prntess /vinrris
gire .5: An inpii-ihi ni persgjeciv=
2002:30)

tnai ine
atiiviijes Aseri mariei
can h= cieriveti, inssiraiing
From tnis mviiei, the ioinwing
entrepreneurs need to
do eertain
process wherein
entrepreneurial prpcess is a cgntinuous
ensure success.
tasks creatively in order to
 israzeai Merneri / iy:31 nuTer a mIEiPT ( t ine
of enirerene1iriai iress, iniegrating ine iieias
technology, psychology & business. The roles,
played by "change", "innovation" &
"creativity" are highlighted, recognising that
entrepreneurship is enabled by the following:
e Luien ui
uueiuai exisiee i
suneuig iewia
Which may have been iiOvaiun
developed by new ways of looking at old problems(creativity)
ir ineiesenei taiatuiiiy tii trir ox:*SSEs (ir siiiu7is io
problem parameters brought on by res i eiietiivery i riew
new or
emerging external conditionsfenvironmental
Which can supplant be
or
complementary to existing processes or solutionsla
Liidiie:i.au
When championed by one or more invested individuals(the innovator).
rireeneuriäi ätiiviiy siems irvi än iTiiiäiäriEE iveiwEen iie
& its sHTIeiu {uieniiäiii y vi
new
rèalisation,that is, the creating of an exploited opportunity where none existed
previously, by one or more individuals(Brazeal & Herbert
1999:34).

A Simple Model of the Entrepreneurial Process: The Respective Roles of

Change,Creativity & Innovation

Process Outcome

Human volition

Entepreneurial
Environmental Change Innovationl1) Innovation (2) Event(3)
Hostility
dynamism

Creativity Creativity

Note: innovation (1) is housed in the technology literature

innovation (2) is housed in the psychoiogy iterature

Entrepreneurial Event (3) is housed in the business literature

Figure 3.2: Model of the Entrepreneurial Process ( Breazeal & Herbert 1999:34)
innovation can theretore he dotined ae the eueceestu! impiementation ot creative ideae. innovation is
the phase where new ideas are developed & involves the ability to change an idea into a money
generating activity.innavation is seldom a systematic,structured process in the case ot the emai!
business enterprise. Creativity is the point of origination for innovation. Ideas are generated on ad hoc
basis& the business plan is still rough & unfinished.

The innavation process may invoive the ratinemant or moditication ot evistirng poiicies, procedures,
product lines & services bt there are no limitations to what may be innovated or to the magnitude f the
aivance enresonted. innavation shouid thue he ragarded rather as a process ar an utcorne whic

certain skilis are necessary.

Creativity is the procaee through which invention occurs, that is creativity is the enabiing procass by
which something new comes into existence. The creative process can be seen as the startingpoint of
nnovation, which sets ihto motion a seriec of ewents euiminating in the entrepreneuriai event. Nat ait
innovations are creative, for some innovations are incremental changes or were developed by others &

adapted for use iocaiiy.

razeai & Hernert's modei, howevar,did not offer suficient insignt for the purposes of this of this stui
on the "how of activities associated with the entrepreneurial process, creativity &. innovation.
 etd Kruger, M E (2004)
University of Pretoria
-

ENTREPRENEURIAL PROCESS
CHAPTER 3:

Business Idea Development

(Opportunity
recognition/finding/
development_

Survival and growth Resource configuration

maximisation (Venture creation)
(Strategic management)

Business implementation
(Opportunity exploitation)

Igure 3.6: Compilation of activity-based entrepreneurial process as deduced from

literature study

Although the above models indicate various activities in the

the entrepreneurial process,
unique intersection with creative behaviour still remains elusive.
3.4 Elements of the
entrepreneurial process
Bull et al.
(1995:165) identified the following
Creating (recognising) and developingcomponents
of
entrepreneurship
an
Evaluating the opportunity's desirability: opportunity
oits economic
potential
o the financial risks involved
o the personal risks involved
Marshalling the resources to
exploit it
o Financial
o Managerial

oTechnical
o Physical

Possessing the will or tenacity to "do it"

Managing the launch including
o
Competitive and co-operative relationships
oNetworks
Managing the downstream opportunity
Creation of value for the
capture and realisation
entrepreneur and society
Realisation of value for the
o
entrepreneur and his/her family.
Wickham (2001:37) focused on a model of the
create new process by which
wealth. The process consists of four entrepreneurs
elements, namely the entrepreneur,

46
 4. Finding 5. Using
the networked
required extensively
resources

Growing
3. Spotting and enterprise 10.
Overcoming
Motivation to 8.Controling the Financial,
2. Creativity & innovation business
make a social,
9.Putting the
difference aesthetic,
customer first

Exploiting obstacles capital

oDDortunities That
sUCceeds
Recognition
of value

6.Showing 7. Managing
determinatio risk
n in the face
of adversity

Source Bolton & Thompson (2000)

 TYPES
OF
ENTREPRENEUR

Classification on the basis ofownership:

the term suggests, they are those individuals
1. Founders or Pure Entrepreneurs"; As
are the ones who conceptualize
a business plan
'who are the founders of the business. They
For eg. Dhirubhai Ambani of the Reliance
.1d then put in elforts to make the plan a
success.

iroup.

2. Second- Generation operatorS of family- Owned businesses:

They are the
Mukesh
from their fathers and forefathers. Like
individuals who have inherited the business
Dhirubhai Ambani of the Reliance Group now split into
Ambani and Anil Ambani sons of Ambani
Dhirubhai group.
IWO: Relianee- Reliance
Industries Limited and Reliance- Anil

"free".
derived from a French word which means
3. Franchisees: Franchisee has been licenses his
wherein the parent owner (the franchiser)
It is a method of doing business for a
of doing business to a franchisee in exchange
trademarks and tried and proven methods invested
business but has
franchisee has not conceptualized the
recurring payment. Here. the his franchisee operations to local
business. For eg., NIIT has given
his money and time in the
plavers after through scrutiny and proper lraining

a business from the

founder and then
4Owner- Managers: When a person buys Bhatia is the
and resources in it he is called
the owner manager. Like Sabeer
his time
became its owner- manager after
Inests
whereas Microsoft's Bill Gates
entrepreneur of Hotmail,
Million.
buying it for $400
andtheir style of runningthe
Classification on the basis ofpersonality traits
business:
desires to excel. The
These types of entrepreneurs have personal
1. The Achiever: the desire to make a
them is the desire to achieve something in life,
only drive that pushes excellence. No matter how many
hurdles come in
to prove their
mark in society, the desire external stimulus but are self-
determined. They do not need any
their way they are totally
driven.
These types of entrepreneurs
areinduced by some

2.Theinduced entrepreneur:
The external factors could
be like supporting government
external factors to start a business. of
institutional support, etc. These types
support, facilitating
policies. unemployment, family realistic approach.
to be the most
entrepreneurs turn out
who
are highly creative people
These kinds of entrepreneurs
3.Theidea generator: new business
venture. They have the
in search of innovative ideas for setting up
are always
demand much ahead of others.
ability to sense the
manner.
business in the systematic
real managers run the
4. Thereal Manager: The of opportunities
demands of future, both in turns
situations, assess the
They analyze business assessments. They believe in
actions based on the above
and threats and then take transformations.
ineremental changes rather
than radical
 5.
The real achieverS: the real achievers are full of life.
achievement of not even their own They are looking for the
goals but also of people associated with themselves like
employees. suppliers and distributors.

Classification based on the type of business:

1,Industrial entrepreneur: Industrial entrepreneur is an
manufacturing of product. He identifies the needs and wants to entrepreneur
consumers and
who is into
manufactures products to satisfy these needs and wants. It
would include all the
accordingly
essentially into manufacturing. They convert raw materials into finished entrepreneurs
goods.
2.Trading entrepreneurs: Trading entrepreneurs is the one who undertakes
activities (buying and selling of goods and trading
services) and is not concerned with the
manufacturing of products. He identifies potential markets, stimulates demands and
interest among buyers to purchase a generates
product. It also means exchanging goods and services for
value. the sell directly to consumers or
through retailers.
3. Corporate
entrepreneurs: Corporate entrepreneur is a person who demonstrates its
1nnovative skill in organizing and
managing corporate undertaking (which is registered
a
under some statute or act that gives it a separate legal entity).
4. Agricultural
entrepreneur: Agricultural entrepreneurs are those entrepreneurs who
undertake business related agricultural activities. Like farm equipment, fertilizers and other
to
inputs of agriculture. They provide supportive products that can increase the
agricultural
production through biotechnologies, mechanization and improvement in agricultural yields.

Based on the stages of Development:

1. First generation entrepreneurs: The first generation entrepreneur (fge) is one who
starts and industrial unit by means of innovative skills. He is essentially an innovator
combining different technologies to produce a marketable product or services. In short, FGE
a r e those
entrepreneurs who do not possess any entrepreneurial background.

2. Modern entrepreneur: A modern entrepreneur is one who undertakes business to

satisfy the contemporary demands of market. They undertake those ventures which suit the
current socio- cultural trends.

3. Classical entrepreneur: A classical entrepreneur a stere0- type entrepreneur is one whose

aim is to maximize the economic returns at a level consistent with the survival of the firm, with or
without element of growth.

Onthebasis of Clarence Danof classification:

.Innovative entrepreneur: He is that entrepreneur who is able to forsee viable opportunity
through innovations. In other words his key function is 'Innovation'. In the words of Peter
Druker, it has already been quoted that "the one who searches for changes, response to it and
exploits it as an opportunity is an entrepreneur'.
In the capacity of an innovative entrepreneur,
(a) He introduces a new product
Ai4

Introduces a new method of production

(b)
(c) Opens new markets.
(d) F'inds new sourees and inpuls.

countries. Onc need not invent

but add
Innovative entrepreneurs are generally in developed
incremental values or change the utility ofthe
same thing.

successful innovation. They are

risk
Imitative entreprencur adapt a
mitative entreprencurs;
new ideas or products,
but if the new idea is accepted by
aversive and so they do not try out
in the competitions. They are more
the market, imitate the new idea and hence join
they
are very common in undevelopcd countries.
flexible. Imitative entrepreneurs

is cducatcd up to
entrepreneur is one, who
Educated
ducated anduneducated entrepreneurs; The
education maybe arts, commerce or technological.
graduate or higher level. The level of
which the educated entrepreneur has is
skill in management and production
greatest strength
Side education. The
Uneducated entrepreneur is who is not educated or having only primary
one

in such entrepreneur is very low. He

has many informal education.
level of literacy
to establish
The entrepreneur who has enough financial resources

4. Rich and poor entrepreneur: Some entrepreneurs are rich

from
as rich entrepreneur.
and develop and enterprise is termed
birth as they get wealth by succession.
financial resources to establish and enterprise is termed
The entrepreneur who has not enough
best techniques of
as poor entrepreneur.
He may have innovative and creative thinking,
start or develop an
due to lack of capital funds, he cannot
production, best opportunities. But
enterprise.
Due
An urban entrepreneur is one who belongs to urban area.

5. Urban and rural entrepreneurS:

location benefits he establishes an enterprise in an urban area.
to
Due to local benefits in rural area, he
A rural entrepreneur is one who belongs to rural area.

Government provides more fînancial

assistance and
establishes an enterprise in rural area.
rural areas along
in order to develop
other additional benefits in rural areas entrepreneurs
to

with urban areas.

man starts an enterprise, he is called a man entrepreneur.

If a
6. Man and women entrepreneur:
of environment.
A man entrepreneur is easily adjustable to any type
women entrepreneur. But as
social
If a woman establishes an enterprise, she is called a
restrictions are more on women in our society, women entrepreneur may not be easily

like entrepreneur.
adjustable to the environment, man

Indian
entrepreneur is one who is born in India and
7. Indian and foreign entrepreneurs:
establishes his business unit in India. Such entrepreneur is either born in entrepreneur family
Indian entrepreneur plays a vital role in
or made entrepreneur by entrepreneurship training.
economic and industrial development of India
who is citizen of a country other than lndia and establishes his
Foreign entrepreneur is one
business unit in India. Such entrepreneur may collaborate with Indian entrepreneurs in the

industrial unit.
S. Fabian entrepreneur: Fabian entrepreneur are highly cautious and sceptic in their apprOacn.
They are not readily interested in introducing any change in their organization and when they
do so it is because of the change they would be out of the market.
He does not imitate others hastily, he is not ready to take risk and is more dominated by
customs and traditions.

and change. They do not

entrepreneurs: LDrone entrepreneur are not open creativity
to
Drone losses
like changing the working of organizations with the changing times. They prefer facing
to introducing changes in their present processes, equipment's and policies.
traditional practices of production and
They are the entrepreneur that blind follow the
under any circumstances. Losses also do not
working. They do not introduce any change
motivate him to change his style of functioning.

husband and wife together start and run a business venture then they are
10. Copreneurs: When
called copreneurs.
 BARRIERS TO ENTREPRENEURSHIP

1. Environmental barriers
Environmental barriers to entrepreneurship

EconomicC Non-economic
Capital
Labour Social Personal
Raw material
Raw material: Non-availability of raw material required for production of goods,
especially during the peak season causes impediment in the growth of the business. In
such kind of situation, competition causes increase in the price of the raw material. This
problem becomes more severe if there are alternative goods or services available in the
market.
Labour: Human resources have been identified as the most important resource in an
organization. But unfortunately, there is always a dearth of the desired manpower in an
organization-either because of the lack of skilled labour in the market or because of lack
of committed and loyal employees in the organization.
Machinery: Good machineries are required in the organization for production and
operation of goods. These machineries come at a cost and because of rapid technological
developments they also become obsolete very soon and need to be replaced which
requires lot of cash-in-hand. This is very difficult to maintain, especially in a small
business organization.
Land and building: Acquisition of land and construction of building at prime location
with respect to business requires expenditure of large amount of scarce cash, especially in
the small organizations. An alternative approach could be acquiring land on lease or rent.
But this becomes a matter of constant concern for the entrepreneur.
Other infrastructure requirements: Apart from the facto:s of production mentioned above
there are other infrastructure requirements ofthe business and which when not present in
adequate amount, can further cause barrier to the growth of the business. Any business
organization requires some basic infrastructure support like adequate power supply,
proper roads, water and drainage facilities etc.
Financial barrier: Availability of funds is one of the most important ingredients required
for the successful running of a business. There are various methods by which
entrepreneurs arranges for funds like his own savings. borrowings from friends and
relatives, banks and other institutional bodies supporting new ventures. If there is delay in
the release of payment by the source of finance, it causes delay in starting and/or running

LOnDAC bu_inessLYS.the most important pre-requisite for setting up the new enterprise.
Capital is a lubricant to the process of production. Money is the resource that mobilize
 li men, materials and machine. Entrepreneurship in any society increases with the
ncrease with the capital. Thus, lack of availability of capital with any society or nation

Cts as a serious barrier for promoting entrepreneurship in that society

2. Personal barriers
hese barriers are caused by emotional blocks of an individual. These barriers cause
mental obstruction to the individual and lead to the failure in business. Some ofthe
personal barriers have been discussed below:
Lack of confidence: Many people think that they lack what it takes o become an

entrepreneur. They look at successful entrepreneurs and think that they could never
emulate them. To be fair, they probably couldn't. They think that they would never be
able to find a successful idea or would be unable to attract the resources required and
therefore dismiss the thought of becoming self-employed at irrelevant. They may not feel
that they could master all the
necessary skills.
L a c k of dependability on others: Many entrepreneurs aim to gain their additional
expertise through the trial and error of experience, rather than seeking further persc
development assistance from others. As business grows, they increasingly need to
or

replace the initial, largely informal management arrangements with more formality.
Lack of motivation:
When an individual starts a new business venture he is filled with enthusiasm and
drive to achieve success, but when he faces the challenges of real business, bears
loss or his idea don't work, he loses interest/motivation. This causes further loss
of interest and the entrepreneur starts withdrawing herself/himself from the
mainstream competition.
The entrepreneurship requires a sustain level of motivation and commitment and
it is often difficult to sustain this motivation against the internal hurdles.
Maintaining a pace for entrepreneurship requires a emotional qualities of
toughness and persistence which are normally at odds with enthusiastic or many

type of personalities that are best suited for a internal People lack
phase. normally
motivation to initiate a new venture and take a risk of setting up an enterprise.
Those who cross this hurdle have a more difficult task of maintaining this
motivation while facing different obstacles in setting up the new enterprise.

Lack of patience:
barrier is dominant amongst entrepreneurs. The desire to achieve
This more
are the motivating factor in
success in the first attempt or to become rich instantly
want to achieve success through
cakewalk. When such
the modern youth. They
desires are comforted by a business challenges/problems
they lose interest.
the first available solution
When people face difficult problem generally they grab
sometimes act so because of their
and try to implement the same. People
their incompetence. The
emotional insecurity or with a view of hiding
sustainable solution.
and
entrepreneur has to find more creative, imaginative
 Thus, setting up an enterprise need a lot of patience and an eye for details by the
solutions prevent people from setting
entrepreneur. This attitude of finding quick
acts as a barriers to entrepreneurship.
up the enterprise and
"Think Big to Achieve Big". The entrepreneurs
Inability to dream: It is being rightly said,
with what they achieve sometimes loss
a
who are short of vision or become complacent
interest in further expansion/growth of the
business which further impedes the growth of
the business.
An entrepreneur has a great feeling- of being
Sense of pride and/or embarrassment:
talking to
responsible for one's decisions and one's future. It is extremely rewarding,
customers, taking orders, fulfilling those getting paid. Entrepreneurs are,
orders and
what
have achieved are often, also embarrassed about
understandably, proud of what they
is the point at which most entrepreneurs suffers particular
a
they still don't know. This whilst they were
much assistance they have sought and received
problem. No matter how are either too proud
their business ideas, too many entrepreneur
planning and developing started off in business.
or too embarrassed to
seek further support after they have
besides financial risk it involves
Emotional block: Entrepreneurship involves risk, losses in
mistakes and incurring
Every entrepreneur runs a risk making
of
emotional risk.
is right or
understand two situations i.e., either person
a
his venture. People usually and
a n s w e r s to the problems
one's life one is trying to find right
wrong. Throughout success and being
answer is considered synonymous to
avoid the wrong situations. Right actions.
for own judgments and
to construct elaborate justification
wrong and leads one and logic compare
as
high importance to reason
Importance of logic: Many people give of logic are a
evaluation. Number of alternative patterns
to institution and subjective to
can have conflicting logics.
People have a tendency see
c o n s u m e r s and sellers
conflict the culture. Males and females
have
from historical background of our
fixed and this stems
logics as the logical part. As men
Males use more of the left brain
their preferred methods of thinking. is identified as most
for long, it is this type of thinking which
have dominated the society not given importance
in the
brain thinking, where women tend to excel is
valuable. The right an area in which
the right brain
requires a high level of creativity,
society. Entrepreneurship barrier to entrepreneurship.
of logic, the left brain, is a
importance
dominates. Thus, over can
who can easily identify an opportunity
An entrepreneur is one in
L a c k of clear perception:
will agree that number
of times they have failed
commercial gain. Most people by
exploit it for solutions to a problem.
When the opportunity is exploited
or an obvious is
seeing an opportunity other. normally one swayed
based in some way or
how their perception was This behavior
others, they realize ideas as a solutiorn.
and to impose one's pre-conceived
try
by an irrational prejudice
entrepreneurship. people
is a major barrier to This limits the way
Tunnel vision is another case of unclear perception. to set up patterns
us to conform
at the
Our cultural barriers prompt
things. and restrict our
look
conformity limits our field of imagination
and this tendency of
ability to innovate.
 than with uncertainty.
Difficulty with ambiguity: Most peopleare at ease with certainty
we all like to live having an order around us. Although orderlineness provide ne

advantage of aesthetics and functionality, yet it is important to have an ability to copeup

wItn asymmetry. When a new method of working is initiated, it is not possible to foresee
every eventually and predict the exact outcome. Some of the things can't be simulated
and have to be tested only by experience. Entrepreneurs don't need an ability to bring
order to chaos and their first
requirement is "o be able to tolerate chaos

3. SOCIETAL BARRIERS
The first, and traditional the hardest, barrier to overcome is he societal barriers, which
inhibits many people even from
thinking of starting a business.
Cultural block: People are bounded their
by cultural values. Every society lays down
some unwritten norms of
acceptable beha ior. All members of tat society are requested to
follow these norms. If
such norms are broken the society doesn't approve of the resultant
behavior and exert direct and indirect
pressure on the individual to confirm to a particular
way, purely because it is customary. Most
people don't like to be too unlike their
They are sensitive to the reaction of those around them. There is a latent desire to peers.
to an accepted
confirm
pattern. Such desire and cultural block prevent a person from
their own ventures in setting up
non-entrepreneurial societies.
Practical values: Most of
progressive societies discourage day-dreaming,
fantasy by their adult members.. Such behavior is considered childish and playfulness
and
unsuitable for
grown persons. The adults are required to be functional in their
thinking. As a person
grows and matures, more and more stress is laced on practical aspects of the
achievements as a result mental playfulness, fantasy and
reflctiveness are driven out.
Hence, instead of finding innovative alternative solutions adults normally end up with
derivative innovations' that are based on logic,
existing systems and products.
Respect for entrepreneurs: The socio-cultural setting up of any society determines the
degree of approval or disapproval of the entrepreneurial activity. In most of the Indian
societies, businessmen and entrepreneur are not accorded a high status. Rather business is
considered as professional or professional of lower hierarchy. This legitimacy to
entrepreneurship and lower social status of entrepreneurs in the society is a major barrier
to entrepreneurship.
Tradition binding: Some people take pride in heir traditional culture and preserved their
dresses, dance, architecture and traditional ceremonies. Ts provides emotional support o
he individual and share interests and values of their
society. Binding tradition represent a
sustainable block to change and progress. Some cultures plays a
great deal of emphasis
on the preservation of heir traditional ways of life at the expense of innovation and
development such societies restrict introduction of ay change. TOhus, tradition binding
cultures are a Obrrier to entrepreneurship.
 sia's

Thus, setting up an enterprise need a lot of patience and an eye for details by the orde

, the

entrepreneur. This attitude of finding quick solutions prevent people from

setting
up the enterprise and acts as a barriers to entrepreneurship. n e n

Inability to dream: It is being rightly said, "Think Big to Achieve Big". The entrepreneurs ned

who are short of vision or become complacent with what they achieve sometimes loss a ed

interest in further expansion/growth of the business which further impedes the growth of sha

the business.
Sense of pride and/or embarrassment: An entrepreneur has a great feeling- of being t the

responsible for one's decisions and one's future. It is extremely rewarding, talking to are

Customers, taking orders, fulfiling those orders and getting paid. Entrepreneurs are, fv

understandably, proud of what they have achieved are often, also embarrassed about what
they still don't know. This is the point at which most entrepreneurs suffers a particular 1alE

problem. No matter how much assistanee they have sought and received whilst they were
planning and developing their business ideas, too many entrepreneur are either too proud
or too embarrassed to seek further support after they have started off in business.
Emotional block: Entrepreneurship involves risk, besides financial risk it involves
emotional risk. Every entrepreneur runs a risk of making mistakes and incurring losses in
his venture. People usually understand two situations i.e., either a person is right or
wrong. Throughout one's life one is trying to find right answers to the problems and
avoid the wrong situations. Right answer is considered synonymous to success and being
wrong and leads one to construct elaborate justification for own judgments and actions.
Importance of logic: Many people give high importance to reason and logic as compare
to institution and subjective evaluation. Number of alternative patterns of logic are a
conflict the consumers and sellers can have conflicting logics. People have a tendency to see
logics as fixed and this stems from historical background of our culture. Males and females have
their preferred methods of thinking. Males use more of the left brain the logical part. As men
have dominated the society for long, it is this type of thinking which is identified as most
valuable. The right brain thinking, where women tend to excel is not given importance in the
society.Entrepreneurship requires a high level of creativity, an area in which the right brain
dominates. Thus, over importance of logic, the left brain, is a barrier to entrepreneurship.
Lack of clear perception: An entrepreneur is one who can easily identify an opportunity can
have failed in
exploit it for commercial gain. Most people will agree that number of times they
When the opportunity is exploited by
seeing an opportunity or an obvious solutions to a problem.
others, they realize how their perception was based in some way or other. normally one is swayed
solution. This behavior
prejudice and try to impose one's pre-conceived ideas as
a
by an irrational
is a major barrier to entrepreneurship.
Tunnel vision is another case of unclear perception. This limits the way people
look at the things. Our cultural barriers prompt us to conform to set up patterns
and restrict our
and this tendency of conformity limits our field of imagination
ability to innovate.
 wOMEN ENTREPRENEURS

Women in India constitute around S0% of total population and comprise one-third of the labor
force. Itis, therefore, important that, when considering the economic development of this
segment of the population, due attention is given to their socioeconomic empowerment. India's
first prime Minister, Pandit Jawaharlal Nehru,realizing the situation of women stated, "in order
to awaken the people, itso the woman who has to be awakened. Once she is on the move, the
household moves, the village moves, the country moves, andthus, we build the India of
tomorrow."While addressing developmental issues, recognition that both men and women are
equal opportunities to share the benefits. Days are gone when women in India remained confined
to within four walls of their homes and their immense strength and potential remained
unrecognized and unaccounted for. Now they are increasingly participating in all shapes of
activities.

Themajoractivities, in which women's contribution can be noticed throughout the country, are
fish processing and marketing.However, their participation and contribution are increasing in the
areas of aquaculture,research,development and education.The involvement of women in these
activities generates supplemental income to support their families.Even through women are as
efficient as men,earning are not always the same .different payments to males and females are
prevalent.
In India, marriage is the only career work for most women. Even professionally, they have
confined their activities to such areas as teaching, office work, nursing and medicine. It is rarely
that they enter professions like enginering and business. As per the 1981 census women
constitutes 47.7 per cent of total population. The women work force constitutes only 5.2 per cent
the majority of the self-employed women are engaged in the unorganized sector like
agriculture
handlooms and cottage based industries

According to the minister of state for industry, M. Arunachalam (source, business line- February
10, 1996), the department of small industry under the ministry of industry had taken the initiative
to train one lakh women entrepreneur to take up trade -related activities. The Indian women
entrepreneur thus has the ideal climate for exhibiting talent her talents. The government does
have the responsibility to improve the lots of women in economic life an prepare them to
participate in industrial estates as entrepreneurs. On their own part, Indian women have to
overcome their own limitations. It is essential that Indian women must be ready to reach out for
new jobs, new responsibilities and new experience.
CONSTRAINTS IN GENDER DEVLOPMENT

The women entrepreneurs face additional huddles than those ofmen. As Kamla Singh (1992) put
it they face the constrains relating to self-sphere system including age, experience, education,
knowledge etc., socio-psycho system, which constrains of entrepreneurial motivation, job
satisfaction, value orientation, decision-making ability,
these hurdles are removed, they can become successful
family occupation-caste, etc. only when
entrepreneurs.
The other huddles which the women
entrepreneurs face are related to cultural barriers such as
female responsibility as the role of family care taker, costs associated with women higher than
man for pregnancy and maternity and
absenteeism, education barriers such as lack of schooling
and vocational training, economic and political barriers,
including lack of legislatives protective
measures, to safeguard women and organizational barriers, which includes the physical
superiority of men and their dominance in decision-making.

Those who undergo training have succeeded in starting enterprises or face the obstacles of lack
of co-ordination among institutions, lack of speed by which the applications processed, lack of
credit facilities, bribing behavior of officials, demanding securities to avail loan and above all the
procedural difficulties of fulfilling the formalities.

In order to improve the position of women in India is necessary that the following impediments
be addressed:

1. lliteracy: effort to economically empower women has suffered owing to their poor level
of literacy. Approximately 60%of the female population of India is illiterate and hence,
developmental efforts have to consider this aspect and particular efforts should be made
to government of India has launched a mass campaign to improve the literacy of children
and adults. To ensure rapid progress the greater success in this literacy program, the
participation of voluntary organization would be useful.
2 Ignorance:Many of the programs designed by the government have not been fully tilized
by women because of the poor literacy. Ignorance of information on welfare programs,
innovation in science and technology, act. Has become a major handicap. Alternate
mechanisms have to be developed to reach a large section of this illiterate population in

order to maintain productivity.

3. Conservative nature: in many parts of India,women are very conservative and there isa
need to development ways to remove this cultural barrier through long-term approaches.
and
It is necessary that developmental organization this conservative nature of women,
women to take part in various activities.
ensure that barrier is addressed by encouraging
areas and there is a requirement
Insecurity for women is common phenomenon in many
to educate the
community about the need for transformation and to increase women's
such a
again long-term strategies are essential to
ensure
mobility beyond the home. Hare
transformation.
men and women, but the latter
suffer more
4. Superstitions: superstitions abound about both
interested in
from these beliefs in many parts of the country. Welfareorganization
Unless
to take up this impediment seriously.
improving the social status of women has
women overcome superstitions,
social taboos and adopt improved practices, poverty

might remain as a perennial problem.

 S. Poverty: Women are disadvantaged by the lack of education and knowledge brought
about by poverty. Poverty leads to malnutrition, unhygienic conditions, and sickness in
women. InAsian and African countries, ill informed and poverty stricken women have
become an easy instrument for population explosion.
6. Organizational support: Developmental issues in women entrepreneurship sector of India
have remain unorganized and gender issues remain untouched developmental issues are
often analyzed from the technical angel without due considerations of social question of
women. It is necessary that organization view these social issues more intensely in order
to solve the technical and social problems. Gender is one such major social issue, which
has to be given priority. Though there are several organizations taking care of men's

welfare, there are few that look after the well being of women.
7. Competition from male counterparts
Women are always considered to be weaker sex since time immemorial. But the reality is that
sex is biologically determined (not changeable) while gender is socially construed. So the first
step for realising women's development is to create gender awareness over the following:

i) Recognition of women's special needs,

disadvantaged group relative to men and access to factors
ii) Understanding women as a

of production, and
ii) Working towards increased quality and empowerment of women.
8.Paucity offinance:

Since the do not enjoy legal right over property of any form, they have limited access
women

over external source of funds. Even the family members

have no confidence in the capability of
women in running the business. Institutions like
commercial banks also do not come forward to
to business and
lend loan to women members who are basically housewives with less exposure
risk.

9.Lack of mobility:-
of the benefits of low cost and
Women by their very nature are less mobile and they are deprived
remain in their native place. Their
high efficiency. The socio-cultural background binds them to
physical condition is responsible for their immobility.

10.High cost of raw materials:-

Lack of mobility makes the dependence of women entrepreneurs on middlemen indispensable.
materials is very much felt by women
The difficulty in procuring raw materials and allied
entrepreneurs.

11.Family responsibilities:
 In India, a woman has to perform her family duties irrespective of her career as working woman
or an entrepreneur. Mostly the women entrepreneurs are benamis of the male members of the
family. Independence of thought and action are lacking in them.

12.Absence of risk bearing skill:-

Being late-comers to the profession of entrepreneurship, the women are unable to compete with
the well established firms.Women are generally conservative and so do not dare to undertake
risk. Fear of loss and inferiority complex also deter them from taking risks. Women normaly
prefer traditional areas which are less risky such as tailoring, knitting, embroidery, food
preservation and interior decoration.

13.Social taboos:-

The social attitude is even now against the independent functioning of women. The uprise of
women is not tolerated not only by male members but also by the elder women members. Inspite
of the latent talents and education, they are not in a position to use them for want of appreciation
and recognition by her own family members.