ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT Industrial development ould !e said to !

e a ma"or omponent o# e onomi development and industrial development envisa$es entrepreneurial development i%e%& entrepreneurial development leadin$ to industrial development and t'e later leadin$ to e onomi development& and so& t'e emp'asis on entrepreneurial development% E##e tiveness o# small enterprises depends upon t'e entrepreneurial and mana$erial apa!ilities o# t'ose involved in t'e !usiness %mana$ement and entrepreneurial s(ills must !e !lended in t'e small enterprise o)ner*s total ma(e+up% He,s'e must !e !ot' e##i ient and e##e tive and& s(ill 'as to !e developed into an e##e tive mana$er !in ul atin$ in 'im,'er t'e entrepreneurial spirit% Si$ni#i ant Contri!utions T'ere is a )ide ran$e o# si$ni#i ant ontri!utions t'at entrepreneurs and entrepreneurs'ip an ma(e to t'e development pro ess% T'ese in lude t'e #ollo)in$. /% Entrepreneurs'ip raises produ tivit- t'rou$' te 'ni al and ot'er #orms o# innovation% 0% Entrepreneurs'ip is a po)er#ul tool o# "o! reation% 1% Entrepreneurs #a ilitate t'e trans#er o# te 'nolo$-% 2% Entrepreneurs pla- a strate$i role in ommer iali3in$ ne) inventions and produ ts% 4% Entrepreneurs pla- riti al role in t'e restru turin$ and trans#ormation o# e onom-% 5% Entrepreneurs 'elp redu e t'e ossi#i ation o# esta!lis'ed so ial institutions and t'e on entration o# e onomi po)er% 6% Entrepreneurs and Entrepreneurial !e'avior an !reat'e vitalit- into t'e li#e o# lar$e orporations and $overnmental enterprises% 7% Entrepreneurs ma(e mar(ets more ompetitive and t'ere !- redu e !ot' stati and d-nami mar(et ine##i ien ies% 8% Mi ro+ entrepreneurs operatin$ in t'e in#ormal se tor ir umvent esta!lis'ed $overnment aut'orit- )'en $overnment and t'eir pro$rammes in'i!it e onomi development% /9% Entrepreneurs stimulate a redistri!ution o# )ealt' in ome and politi al po)er )it'in so ieties in )a-s t'at are e onomi all- positive and )it'out !ein$ politi all- disruptive% //% Entrepreneurs improve t'e so ial )el#are o# a ountr- !'arnessin$ dormant previousl- overloo(ed talent% /0% Entrepreneurs reate ne) mar(ets and #a ilitate e:pansion into international mar(ets% T'e uni;ue #eature o# entrepreneurs'ip is t'at it is a lo)+ ost strate$o# e onomi development "o! reation and te 'ni al innovations% T'e lo al entrepreneurs o##er a ost <e##e tive strate$- o# development !e ause t'e- are an inte$ral part o# t'eir ommunit- %unli(e #orei$n

#irms or plant relo ations #rom anot'er re$ion or provin e &small s ale entrepreneurial #irms are 'ome $ro)t' &and availa!le eviden e s'o)s t'at& t'e- remain in t'eir ommunit-%

INTRODUCTION: Good Entrepreneur can create a strong economy. Entrepreneurship is an important facet of industrial growth and development of a nation. It is the backbone of a nation that sets its eyes on maximizing its performance in every field. The spirit of entrepreneurship brings about enthusiasm, persistence and the ability to seek entrepreneurial opportunities that lead to success. nation!s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Entrepreneurs are essentially the engines of growth for a nation. There are several factors that go into making a successful entrepreneur, and he or she need not necessarily possess a strong business and financial background. "n the contrary, well#conceived and well directed training can always produce an outstanding entrepreneur. In addition, today!s world with its burgeoning population offers limited avenues of employment. WHO IS AN ENTREPRENEUR? The entrepreneur as a person brings in overall change through innovation for the maximum social good. $uman values remain sacred and inspire him to serve the society. $e has firm belief in social betterment and he carries out this responsibility with conviction. In this process, he accelerates personal, economic as well as human development. The entrepreneur is a visionary and an integrated man with outstanding leadership %ualities. &ith a desire to excel, he gives top priority to 'esearch and (evelopment. $e always works for the well#being of the society. )ore importantly, entrepreneurial activities encompass all fields * sectors and foster a spirit of enterprise for the welfare of mankind. OBJECTIVES OF ENTREPRENEURSHIP To create entrepreneurial awareness to the young generation and motivate them to establish small and medium enterprises

To trained up the prospective new and young entrepreneurs to maintain and run their enterprises successfully. To enabling the entrepreneurs about the global production and market strategy in context of market economy To encourage the entrepreneurs to establish pollution free enterprises IMPORTANCE OF ENTREPRENEURSHIP Entrepreneurship promotes capital formation by mobilizing the idle saving of the public. It provides immediate large#scale employment. Thus it helps to reduce the unemployment problem in the country, i.e., the root of all socio#economic problems. Entrepreneurship promotes balanced regional development. Entrepreneurship helps reduce the concentration of economic power. It stimulates the e%uitable redistribution of wealth, income and even political power in the interest of the country. It encourages effective resource mobilization of capital and skill which might otherwise remain unutilized and idle. It also induces backward and forward linkages which stimulates the process of economic development in the country. Entrepreneurship also promotes the country+s export trade, which is an important ingredient to economic development. ENTREPRENEURSHIP IN INDIA ,Entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity-. Entrepreneurs innovate and innovation is a specific instrument of entrepreneurship. It creates resource because there is no such thing as a .resource+ until man finds a use for something and endows it wit economic value. India is second among all nations in Total Entrepreneurship ctivity as per the Global Entrepreneurship )onitor 'eport /00/. "ver the years India has concentrated more on the development of the institutions that support private enterprise by building a stronger infrastructure to support it. The Government has encouraged entrepreneurship by providing training and also the facilities to

succeed, particularly in the rural areas. )oreover, in India, the post#liberalization and globalization era has brought with it a growing middle class # roughly estimated to be /10 million # and rising disposable incomes. This presents a huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can make the best of this by catering to various demands of this segment. QUALITIES OF AN ENTREPRENEUR: The important %ualities of a successful entrepreneur are as follows, Total commitment, determination and perseverance (rive to achieve and grow "pportunity and goal orientation Taking initiative and personal responsibility 2ersistent problem#solving 'ealism and a sense of humour 3eeking and using feedback Internal focus of control 4alculated risk taking and risk seeking 5ow need for status and power Integrity and reliability CHALLENGES TO THE ENTREPRENEUR IN INDIA Entrepreneurship plays a vital role in economic development through creation of utilities and generation of employment within a short period. It has been accepted that entrepreneurship is an economic venture by which the people can be changed to move upwards within a short period of time, especially from the point of view of employment generation. "ut of the economically active population of 110 million at present only /6.17 million people have had the benefit of employment in the organized sector. /89.6: million are either employed or under employed in the unorganized sector, while the services of the remaining /6/.6; million remain unutilized by the entrepreneur. s a result over /9 < of the population continues to suffer under the clutches of poverty and hunger. The founding of new firms has always been a focal research issue in the entrepreneurship research tradition. In order to support the

founding of new firms, it is important to know who starts new firms, in what kinds of situations, and for what kinds of reasons. The early research on entrepreneurship strove to identify the psychological characteristics, or traits, of those people who start new firms. "ne problem of this .trait+ line of research was that it focused on ex post situations, interviewing entrepreneurs who already had started a firm. ENTREPRENEURIAL OPPORTUNITIES a) Partici ati!" i" I"t#r"ati!"a$ Fair%&E'(i)iti!"% &ith a view to ensure that exporters from small scale sector exhibit their products in the International Exhibitions, re%uired assistance = support is provided. Expenditure on account of space rent, handling and clearing charges, insurance and shipment charges etc. are met by the office of the (evelopment 4ommissioner >3mall 3cale Industries? under one of the plan schemes. 2articipation in the named fairs*exhibitions generates large number of Trade en%uiries besides certain export orders. It also provides an opportunity to entrepreneurs to display their products in the world market. The basic ob@ective behind this scheme is that entrepreneurs which otherwise are not in a position to display their products may participate in foreign exhibition*fairs so as to promote their exports. En%uiries generated during such exhibitions abroad are disseminated to all entrepreneurs through a net work of field offices of this organization. This strategy has been found to be successful for exporters from small scale sector in identifying new foreign buyers*markets. )) Pac*a+i"+ ,!r E' !rt% 2ackaging standards, techni%ues etc. training programmes on packaging for exports are organized in various parts of the country. 'ole of packaging for exports has gained much significance in view of trends in the world markets. The need for better and scientific packaging for exports from small sector was recognized long back. These programmes are organized in association with Indian Institute of 2ackaging which has re%uisite expertise on the sub@ect. Aasic ob@ective of these programmes is to generate the

much needed consciousness in the industry and to educate the entrepreneurs about the scientific techni%ues of 2ackaging. c) T#c("ica$ - Ma"a+#ria$ C!"%.$ta"c/ S#r0ic#% Technical = )anagerial 4onsultancy 3ervices to the entrepreneurs is provided through a net work of field offices of 3I(" so as to ensure higher level of production and generation of higher exports. 1) Nati!"a$ A2ar1% ,!r Q.a$it/ Pr!1.ct% &ith a view to encourage the small scale units for producing Buality goods, Cational wards for Buality 2roducts are given to the outstanding small scale units, who have made significant contribution for improving %uality of their products. Cational wards encourage entrepreneurs to produce %uality goods which further enable them to enter into export market. #) Mar*#ti"+ D#0#$! 3#"t A%%i%ta"c# )arketing (evelopment 3cheme is being operated by )inistry of 4ommerce under which )( is given to exporters through DIE" and Export 2romotion 4ouncils* 4ommodity Aoards to plan their marketing strategy for export growth. ,) Pr!3!ti!"a$ Sc(#3#% To meet the challenges of international competition and to promote exports of entrepreneurs, following promotional schemes are also being implemented. ;. Technology (evelopment and )odernization Dund 3cheme /. Buality wareness 3cheme 7. 3ubsidy for obtaining I3"#9000 %uality 4ertification 8. 2rocess#cum#2roduct (evelopment 4entre +) S3a$$ I"1.%tr/ C$.%t#r D#0#$! 3#"t Pr!+ra3: new scheme for technology upgradation for industrial clusters has been started recently. ;0 clusters of industries producing different groups in various parts of country have been selected. The scheme aims at diagnostic study of the clusters, identification of technological needs, technological intervention and wider dissemination of information and technology within the clusters. The expenditure involved on pilot plants etc. is to be met on 10E10 cost sharing basis by the Government and the concerned Industry

ssociation of the clusters. The scheme is flexible and provides for smooth sourcing of technology even from abroad. ENTREPRENEURIAL THRUST OF WOMEN In India, a ma@ority of women entrepreneurs fall within the age group of /1# 80 years. )ost women owners are married. They have a good educational background, with most of them at least graduates, and have an above average record in education and participation in extra#curricular activities. )ost have an urban background and have lived in small nuclear families, both before and after marriage. ma@ority of women entrepreneurs are from $indu forward communities, with Arahmins being the largest proportion. In the northern part of the country, it is mainly women belonging to communities which have traditionally been in business e.g., Aania or 2un@abi Fhatri. mong the states, Gu@arat, )aharashtra and Farnataka have more women entrepreneurs. These women are either from families which are already in business or have service backgrounds, or they have highly educated fathers or husbands. CONCLUSION The entrepreneurship miracle in other country is an engine for @ob creation, innovation and diversity. In the case of diversity it is observed that women G owned and minority owned business may be emerging growth companies of the next decade. The role of entrepreneurship in global business of developing countries like India is also significant. The wide range of significant contributions that entrepreneurship makes include promotion of capital formation, creation of immediate large#scale employment, promotion of balanced regional development, and effective mobilization of capital and skills. 'ead moreE httpE**www.articlesbase.com*entrepreneurship# articles*prospects#of#entrepreneurial#development#towards# economic#development#;/H0660.htmlIixzz0ydx%B3)J

Knder 4reative 4ommons 5icenseE ttribution