ENTREPRENEURSHIP PERSPECTIVES

Characteristics of Entrepreneurs
1) 2)

3)

4) 5) 6) 7)

8)
9) 10) 11) 12)

Hard work 13) Problem Solver Desire for high achievement 14) Long term involvement Highly optimistic 15) Human Relation ability Independence Foresight Good organizer Innovating Secrecy Communication ability Technical knowledge Motivation Self confidence

Concept of Entrepreneur

Introduction Evolution of Concept of Entrepreneur

Definition

Entrepreneurship is based on purposeful and systematic innovation. It includes not only the independent businessman but also company directors and managers who actually carry out innovative functions. Schumpeter.

Entrepreneur Concept
1.

As a risk bearer An organizer

2.

3.

An innovator

Entrepreneurship and Enterprise

Entrepreneurship is the activity done by the entrepreneur. Enterprise is an organization established by the entrepreneur.

Link between Entrepreneurship and Economic Development.

Identifies business opportunities Provides value for economic resources Increase standard of living of people Provides employment opportunities Increases national income of the country Increases economic growth Helps for technological transformation Increases exports of country

Entrepreneur Vs. Intrapreneur

Dependency Raising of funds Risk bearing Operation

Entrepreneur Vs. Entrepreneurship

Entrepreneur

Entrepreneurship

Is a person Is an organizer

Is an innovator Is a risk bearer Is a motivator Visualiser Leader

Is a process Is an organization established by entrepreneurs Is an innovation made by entrepreneurs Is risk bearing activity Motivation Vision Leadership

Entrepreneur Vs. Manager.

Motive Status Risk Bearing Rewards Innovation Qualification

Factors influencing Entrepreneurship Development

Economic Non-economic 1. Iindividual 2. Environmental 3. Socio-cultural

Individual characteristics

Long term involvement Initiative Goal setting Moderate Risk taking High energy level Problem solver Team builder Motivator Mental Ability & Clarity in objectives Communication skills Good Human relations

Individual

Characteristics Individual Feelings, Behavioral Patterns and need for achievement Role models Family Environment & education Personal values & age Motivation

Environmental
1.

2.
3.

Socio economic environment Financial Stability Political Stability and Govt. Policies

Socio-cultural
1.

2.
3. 4. 5.

Caste and religious affiliation Culture of a business Business Ethics Productivity Culture Organisational Culture

Innovations and Entrepreneurship

Schumpeters Theory Peter Ducker's sources of Innovations.

Schumpeters Theory

Entrepreneurship is essentially a creative activity or it is an innovative function Process of Innovation - introduction of new product - use of new methods of productions - opening of new markets - the conquest of new source of supplying of new raw materials - a new form of organization

Invention and innovation

Invention
The creation of something new
Results in new knowledge

Innovation

The transformation of an idea or resources into useful application

Results in new products, services or processes

Peter Ducker's sources of Innovations.

INCONGRUITIES THE UNEXPECTED PROCESS NEEDS INDUSTRY AND MARKET STRUCTURE DEMOGRAPHICS CHANGES IN PERCEPTION NEW KNOWLEDGE

ENTREPRENEURIAL SUPPORT SYSTEM

Policy framework in India

Definition : Policy Framework Set of principles and long-term goals that form the basis of making rules and guidelines, and to give overall direction to planning and development of the organization.

SSI sectors
Traditional Sectors

Modern Sectors

Handicrafts Handlooms Khadi, Village and cottage industries Coir Seri culture

Power looms Residual small scale industries

SSI Policy initiatives

To better focus attention on problems of SSI sector, a new ministry of SSI and Agro and Rural industries was created on Oct 14th 1999. A new credit insurance scheme was announced in the budget 1999 2000 for SSI security to banks and to improve the flow of investment credit to SSI units particularly export oriented and Tiny units

Banks on the basis of 20% of annual turnover determine the working capital limits for SSI units. The turnover limit for this purpose has been enhanced from Rs. 4 cores to 5 cores. A national program to boost rural industrialization has been announced, with a mission to set up 100 rural clusters every year

Micro, Small and Medium Enterprises Development Act 2006.

* Notes provided

Concessions and Incentives

Subsidy on investment Subsidy on transport Tax concessions 1. Duty drawbacks 2. Advance License Incentives and facilities to exporters 1. Export oriented units 2. Facilities for EPZ Rehabilitation allowance MODVAT Expenses on Scientific research Marketing assistance Raw materials and other concessions

Financial support schemes

1) Prime Minister Rozgar Yojona (PMRY) It is a self-employment scheme for educated unemployed youth with eligibility... a) Class VIII passed b) Age 18 to 35 years (relaxable upto 45 years for SC / ST / Women / Physically handicapped / Ex-Servicemen) c) Project upto Rs 2.00 lakh for Industries/Service and Rs 1.00 lakh for Business d) Annual family income Rs 40,000/- (Max 2) Normal Bank Finance Scheme If is one of the major schemes for setting up SSI unit. The Projects/Schemes for the purpose should have sufficient equity participation. 3) Loan Under BSAI Act This assistance is mainly for Handicrafts Sector. Limit of loan upto Rs 10,000/-. The rate of interest is 8% with a rebate of 2.5% on regular re-payment.

District Industries Centres role

It provides all the services and support facilities to the entrepreneurs for setting up Small and Village Industries. - this includes, identification of suitable schemes,
preparation of feasibility reports, arrangements for credit facilities, machinery and equipment, provision of raw materials and extension services.

DIC has been pursuing the basic objective by assisting for optimum utilisation in existing industries, faster promotion of new Small Scale Industries and Village Industries with a rural bias and by increasing the employment opportunities in industries sector. The Small entrepreneur required various types of assistance right from the selection of an item for manufacture, inputs like credit, raw materials, power, land and building etc., Under the new scheme of District Industries Centre the entrepreneur can get all such assistance through one agency.

District Industries Centres functions

Conduct industrial potential surveys keeping in view the availability of resources in terms of raw material and human skill, infrastructure, demand for product, etc. Conducting Motivation Campaigns in Block level Counselling and guiding the entrepreneurs Issuing Provisional registration for Small Scale Industries, manually. Online Provisional registration for Small Scale Industries, through authorized Browsing Centres.

Issuing registration certificates for Cottage Industries and Handicrafts Industries. Conducting seminars, work shops, etc., on industrial development related subjects. Assisting the entrepreneur to get scarce raw material and industrial license Assisting and guiding the entrepreneurs in exporting through the Export Cell Formation of Industrial Co-operative Societies in the district

DEVELOPMEN T OF WOMEN ENTREPRENE URS

Introduction Definition: An enterprise owned and controlled by one or more women with minimum financial holding of 51 % or more giving 51% employment to women

Role of Women Entrepreneurship

People within the enterprise

Enterprises

Leadership role of women enterprises

All other enterprises related interface

External Environment

Growth of Women Entrepreneurs

Affluent Entrepreneurs Pull Factors Push Factors Rural Entrepreneurs Self Employed Entrepreneurs

Problems of Women Entrepreneurs

Womens Problems in India Entrepreneurial Problems in General 1) Corruption in Govt. offices 2) Procedural Delays 3) Shortage of supply of raw material by middlemen 4) Financial Problems due to blockage of funds 5) Technology problems

Specific Problems related to Women a) Mobility b) Family Responsibilities c) Protected Life d) Education e) Gender Discrimination

Export Promotion facilities

Readymade plots and buildings are provided in the EPZ area. No licensing is required for import of machineries, spares, consumables and raw materials for the units under EPZ area. Foreign investment is approved up to 100 % Income tax is exempted for a period of 5 years. Working capital will be provided at a concessional rates Communication facilities provided on priority basis Administrative support, container facility, custom clearance and security are also provided.