ENTREPRENEURIAL MOTIVATION

Motive Goal Behaviour

Process of Motivation

MOTIVATION THEORIES Maslow's Need Hierarchy Theory

Self Actualisation
Esteem & status needs Social needs Safety & security needs Physiological

McClelland's Acquired Needs Theory

1) Need for Affiliation 2) Need for Power 3) Need for Achievement

The people with high need for achievement are characterized by the following: (i) They set moderate, realistic and attainable goals for them. (ii) Prefer to situations in which they can find solutions for solving personal respon-sibility. (iii) They need concrete feedback on how well they are doing. (iv) They have need for achievement for attaining personal accomplishment. (v) They look for challenging tasks.

MOTIVATING FACTORS
1. Internal Factors (a) Desire to do something new (b) Educational background (c) Occupational background or experience .

External Factors: (a) Government assistance and support

(b) Availability of labour and raw material (c) Encouragement from big business houses. (d) Promising demand for the product.

ENVIRONMENTAL FACTORS AFFECTING ENTREPRENEURSHIP I. ECONOMIC CONDITION: 1) Capital 2) Labor 3) Raw materials 4) Markets II. SOCIAL FACTORS 1) Legitimacy of Entrepreneurship 2) Social mobility 3) Security

III.PSYCHOLOGICAL FACTORS 1) David McClellands Theory of need achievement 2) Hagens withdrawal of status respect IV.GOVERNMENTAL INFLUENCE

ENTREPRENEURIAL MOBILITY FACTORS INFLUENCING ENTREPRENEURIAL MOBILITY 1. Education 2. Experience 3. Availability of facilities 4. Political conditions 5. Size of enterprise 6. Location 7. occupation

ROLE OF CULTURE IN ENTREPRENEURIAL DEVELOPMENT Environment For Entrepreneurship 1) Socio-economic environment 2) Family background 3) Standard of education and technical knowledge 4) Financial stability 5) Political stability and governments policy 6) Caste and religious affiliation 7) Availability of supporting facilities 8) Achievement motivation and 9) Personality and personal skill

ENTREPRENEURIAL CULTURE culture consists of tangible man-made objects, such as automobiles, clothing, furniture, buildings and tools and intangible concepts such as laws, morals, and knowledge. In addition, culture includes the values, character, qualities, skills acceptable within the particular society. entrepreneurial culture thus implies vision, values, norms and traits that are conductive for the development of the economy

Sub-cultures Of Entrepreneurship 1) Culture Of A Business 2) Business Ethics 3) Productivity Culture 4) Total Quality Culture 5) Organization's Culture

ENTREPRENEURIAL DEVELOPMENT PROGRAMME (EDP) entrepreneurial development programme may be defined as a programme designed to help an individual in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively. It is necessary to promote this understanding of motives and their impact on entrepreneurial values and behaviour for this purpose.

ENTREPRENEURIAL DEVELOPMENT CYCLE

SIMULATORY

SUPPORT

ENTREPRENEURIAL CYCLE

SUSTAINING

TRAINING PROGRMME CONSIST OF SIX MODULES 1) Introduction of entrepreneurship 2) Motivation training 3) Essentials of management 4) Fundamentals of project feasibility 5) Organizing the business 6) Plant visit

STRATEGY / ROLE FOR ENTREPRENEURSHIP DEVELOPMENT 1) Dynamic role of public entrepreneurship 2) Development of industrial culture 3) Development of management education and industrial training 4) Development of backward areas 5) Adequate measures for mobilizing talent 6) Better economic administration 7) Adequate and timely credit

ISSUES OF ENTREPRENEURIAL DEVELOPMENT PROGRAMMES 1) Structure and composition of EDP 2) Areas of operation 3) Fixing priorities 4) Lack of specialists support 5) Low institutional commitment 6) Non-availability of inputs 7) ill-planned training methodology 8) No clear-cut objective 9) Lack of clarity in approach and 10)Lack of creativity and commitment

SPECIALISIED ENTREPRENEURSHIP DEVELOPMENT AGENCIES 1. Small Industries Service Institutes (SISI) a) Industrial management course b) Intensive courses c) Special courses 2. Small Industries Development Organization (SIDO) 3. National Small Industries Corporation

4. Small Industries Extension Training Institute 5. Entrepreneurship Development Institute Of India a) Selecting potential entrepreneurs b) Product selection and project report preparation c) Practical training and work experience d) Post training support and follow-up 6.Institute For Rural Management And Administration

7. National Institute Of Entrepreneurship And Small Business Development (NISEBUD) a) To help institution in carrying out activities relating to entrepreneurship development b) To provide vital information, support to trainers, promoters & entrepreneurs c) To hole examination & test & confer certificates & diplomas 8. Maharashtra Centre For Entrepreneurship Development(MCED)

8. Entrepreneurship Development Institute Of India (EDII) Increase the supply of trained entrepreneurs through training Improve managerial capabilities of small-scale industries Contribute to the dispersal of business ownership and thus expand the social base of Indian entrepreneurial class Participate in institution-building efforts Promote micro-enterprises at the rural level Inculcate the spirit of Entrepreneurship amongst youth and Collaborate with similar organizations in India and other developing countries to accomplish the above objectives

The people with high need for achievement are characterized by the following: (i) They set moderate, realistic and attainable goals for them. (ii) Prefer to situations in which they can find solutions for solving personal respon-sibility. (iii) They need concrete feedback on how well they are doing. (iv) They have need for achievement for attaining personal accomplishment. (v) They look for challenging tasks.

ENTERPRISE Enterprise serves as the framework within which decisions concerning what to produce and how to produce are taken by the owner or manager.

FEATURES OF AN ENTERPRISE An enterprise consists of people who work together primarily for the purpose of making & selling products & services. An enterprise utilizes inputs to produce and sell  Every enterprise makes a comparison between its cost and gains. An enterprise is a continuing entity.

RURAL ENTREPRENEURSHIP DEFINITION: village industry or rural industry means any industry located in rural area, population of which does not exceed 10,000 or such other figure which produces any goods or renders any services with or without use of power and in which the fixed capital investment.

RURAL INDUSTRIES HAVE BEEN CLASSIFIED INTO FOLLOWING 1) Mineral based industry 2) Forest-based industry 3) Agro-based industry 4) Polymer and chemical-based industry 5) Engineering and non-conventional industry 6) Textile-industry (Including khadi) 7) Service industry

IMPORTANCE OF RURAL ENTREPRENEURSHIP 1) Create Employment Opportunities 2) Labour Intensive 3) Rural Development 4) Promotion of Artistic Achievement 5) Less Gestation Period 6) Correct Regional Imbalances 7) Employment at the Place of Residence

PROBLEM OF RURAL ENTREPRENEURSHIP 1) Inadequate flow of credit 2) Use of obsolete technology, machinery and equipment 3) Poor quality standards 4) Inadequate infrastructure facilities

HOW TO DEVELOP RURAL ENTREPRENEURSHIP 1) To strengthen the raw material vase in rural areas 2) Funds need to be made available on time at soft terms & conditions. 3) Common production-cum-marketing centers need to be set up and developed with modern infrastructure facilities in the area having good production and growth 4) Legislative measures have to betaken to make the government purchases compulsory from rural industries

5) A need to develop entrepreneurial attitude and competencies among the prospective entrepreneurs. 6) Imparting entrepreneurial education in the schools, colleges, and universities. 7) Disseminate information about facilities provided to the entrepreneurs 8) Proper provisions need to be made to impart the institutional training to orient the entrepreneurs inspecific products and trades so that the local resources can be harnessed properly.

NGOs & RURAL ENTREPRENEURSHIP

The training imparted by the NGOs are classified in to three 1) Stimulation 2) Counseling 3) Assistance

THE NGOs HAVE REVEALED FOLLOWING STRENGTHS 1) The lean overhead & operating costs to reach the poor & needy. 2) Flexibility and responsiveness in operation to invent appropriate solution. 3) Nearness to client groups made them to be sensitive to community need. 4) Capacity for innovation and experimentation with new groups and untried development approach.

5) Stimulating and mobilizing interest in the community 6) Dependence on customer satisfaction 7) Act as a test bed and soundboard for government policies and programmes.

THE WEAKNESSES THE NGOs SUFFER 1) Role conflict as to the traditional areas of operation and micro entrepreneurship development 2) Doubtful leadership and succession 3) Anti-business philosophy, lack of programme integration but to lack of proper understanding of entrepreneurship approach 4) Inadequate opportunities to work as trainer

5) Absence of impact assessment because of selfrighteousness on the part of NGO leaders. 6) Not all NGOs are ready and equipped to take up this activity

COTTAGE INDUSTRY the cottage industries form the smallest segment among the small-scale industries. They are largely household enterprises. These industries have limited scope for development in the urban areas as they have to face stiff competition from small scale industries. They come under regulation of KVIC.

ANCILLARY INDUSTRY An ancillary industry is defined as A unit having investment in fixed assets in plant and machinery not exceeding as 100 lacs and engaged in the manufacture of parts, components, sub assemblies, looks or intermediates or renders services and supplies or proposes to supply 50% of their production to one or more units or 10% of their production to one large unit.

INDUSTRIAL ESTATE According to P. C. Alexander and Industrial Estate is a group of factories, constructed on an economic scale in suitable sites with facilities of water, transport, electricity, bank, post office, canteen, watch and ward and first-aid and provided with special arrangements for technical guidance and common service facilities.

CUSTOMIZATION Customization is the ability to automatically provide information and services customized to an individual customer or user. It is a strategic business capability of the internet and extranet. Efficient, low cost, inter-active target marketing to an individual customer or prospects is a key business value of internet technologies.

ACQUISITION OR ACQUISITIONING in takeover/acquisition one company gets the control over the other company such an acquisition may be for cost saving, expansion or revival or for getting global Entrepreneurs must decide whether to buy a business or to start one and the decision must encompass both personal and commercial consideration.

FRANCHISING : Franchising is a vertical co-operatively organized sales system of legally independent entrepreneurs based on an ongoing performance of franchises instructions and control system that ensures behaviour in conformance with the system.

Company-owned V/S Franchising

 More control over units  No sharing of profits  Ease of instituting changes in units  Ease in testing new products or services  Ability to change the basic products goal of the organization

Key Opportunity  food & beverages  fashion retail  specialty retail  health, beauty & fitness  Education & training

OUTSOURCING Outsourcing is defined as transfer or delegation to an external service provider, the operation and day-to-day management of a business process. The customer receives a service that performs a distinct business function that fits in to the customers overall business operation.

BENEFITS OF OUTSOURCING 1. Cost-effective 2. Prompt and efficient 3. Time saving 4. Competitive 5. Improves performance 6. Customer friendly 7. Access to best-practices