Enterpreneurship

Dr. T V Suresh Kumar

Registrar (Academic), Prof. and Head
Department of Computer Applications
Ramaiah Institute of Technology
 Learning Outcomes
• Define the term ‘Entrepreneurship’
• Trace out the evolution and development of
entrepreneurship in India
• Appreciate the role of entrepreneurship in economic
development of the country
 Concept of Entrepreneurship
• “Entrepreneurship is the attempt to create value through
recognition of business opportunity, the management of
risk – taking appropriate to the opportunity, and through
the communicative and management skills to mobilise
human, financial and material resources necessary to
bring a project to fruition (Kao and Stevenson 1934)”
 Concept of Entrepreneurship
• 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 innovation functions.
• Innovation and risk bearing are regarded as the two basic
elements involved in entrepreneurship.
 Concepts of entrepreneurship
• Innovation
• Innovation, i.e., doing something new or something different is a
necessary condition to be called a person as an entrepreneur. The
entrepreneurs are constantly on the look out to do something
different and unique to meet the changing requirements of
customers.
• Risk – bearing
• Starting a new enterprise always involves risk and trying for doing
something new and different is also risky. The reason is not
difficult to seek
 Relationship between entrepreneur
and entrepreneurship
Entrepreneur Entrepreneurship
Person Process
Organizer Organization
Innovator Innovation
Risk – bearing Risk – bearing
Motivator Motivation
Creator Creation
Visualizer Vision
Leader Leadership
Imitator Imitation
 Entrepreneurship during Pre –
Independence
• Before India came into contact with the West, people were
organized in a particular type of economic and social
system of the village community.
• The elaborate caste based diversion of workers consisted
of farmers, artisans and religious sections. Such compact
system of village community effectively protecting the
village artisans from the on slaughter of external
competition was one of the important contribution factors
to the absence of localization of industry in ancient India.
 Entrepreneurship during Pre –
Independence
• Evidently, organized industrial activity was observable
among the Indian artisans in a few recognizable products
in the cities of Banaras, Allahabad, Gaya, Puri and
Mirzapur which are established on their river basins. Very
possibly, this was because the rivers served as a means of
transportation facilities.
• These artisan industries flourished over the period
because the Royal Patronage was available to support
them. The workshops called ‘Kharkhanas’ came into
existence.
 Entrepreneurship during Pre –
Independence
• To quote, Bengal enjoyed world wide celebrity for corah,
Lucknow for Chintez, Ahmedabad for dupattas and dotis,
Nagpur for silk bordered cloth. Kashmir for shawls, and
Banaras for metalwares.
• Thus, from the time immemorial till the earlier years of
the eighteenth century, India enjoyed the prestigious
status of the queen of the international trade with the help
of its handicrafts
 Reasons for the decline of Indian
Handicraft Industry
• Disapperance of the Indian Royal Couts, who patronized
the crafts earlier
• The lukewarm attitude of the British Colonial Government
towards the Indian Crafts
• Imposition of heavy duties on the imports of the Indian
Goods in England
• Low – priced British – made goods produced on large –
scale which reduced the competing capacity of the
products of the Indian handicrafts
 Reasons for the decline of Indian
Handicraft Industry
• Development of transport in India facilitating the easy
access of British products even to far – flung remote parts
of the country
• Changes in the tastes and habits of the Indian Customers,
developing craziness of foreign products
• Unwillingness of the Indian craftsmen to adapt to the
changing tastes and needs of the people.
 Some major effects of partition on 15 th August
1947 on the Indian Industrial Economy
Entrepreneurship India
activity
Demographic effects 77% of area, 82% of population
Industrial Activity 90% of total industrial
establishments with 93% of
industrial workers. Jute, Iron and
Steel and Paper industries
Minerals and 97% of total value of minerals.
Natural Resources Major deposit of Coal, Mica,
Manganese, Iron Ore, etc
Pakistan
23% of area, 18%
population
10% of total industrial
establishments with 7% of
industrial workers. Cotton
textile, sugar, cement, glass
and chemical industries
3% of total value of
minerals with major
deposits of Gypsum,
Rocksalt, etc
 Some major effects of partition on 15 th August
1947 on the Indian Industrial Economy

Entrepreneurship India Pakistan

activity
Manpower and India was at loss Muslims possessed these
Managerial Skills skills that migrated to
Pakistan
Transport faciltities 83% of total route mileage, India 07% of total road mileage
major posts lost major ports which adversely went to Pakistan
affected Indias exports
 Entrepreneurship during Post –
Independence
• The government came forward with the first Industrial
Policy in 1948 which was revised from time to time.
• The government in her various industrial policy
statements identified the responsibility of the State to
promote, assist and develop industries in the national
interest. It also explicitly, recognized the vital role of the
private sectors in accelerating industrial development,
and, for this; enough field was reserved for the private
sectors.
 Entrepreneurship during Post –
Independence
• The government took three important measures in her
industrial resolutions:
• To maintain a proper distribution of economic power between
private and public sectors
• To encourage the tempo of industrialization by spreading
entrepreneurship from the existing centers to other cities, towns
and villages
• To disseminate the entrepreneurship acumen concentrated in a
few dominant communities to a large number of industrially
potential people of varied social strata.
 Role of entrepreneurship in
economic development
• Entrepreneurship promotes capital formation by
mobilizing, the idle saving of the public
• It provides immediate large – scale employement. Thus, it
helps reduce the unemployment problem in the country,
i.e., the root of all socio – economic problems.
• It promotes balanced regional development
• It helps reduce the concentration of economic power
 Role of entrepreneurship in
economic development
• It stimulates the equitable 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 backwards and forward linkages which
stimulate the process of economic development in the country
• Last but no means the least, it also promotes country's export
trade i.e. an important ingredient to economic development.
 Women
Entrepreneurship
 Learning outcomes
• Explain the concept of women entrepreneurs
• Discuss the functions performed by women enterpreneurs
• Delineate the growth of women entrepreneurship in India
• Identify the specific problems faced by women entrepreneurs in
establishing and running their small scale enterprises
• Give an account of development of women entrepreneurs in India
• Highlight the recent trends in women entrepreneurship in the
country
 Introduction
• The Planning Commision of the Government of India
realized that economic development of country can take
place only when women are brought in the mainstream of
economic development. This, among other things,
underlined the need for entrepreneurship development
programmes for women to enable them to start their own
small – scale industries.
 Concept of women
entrepreneurs
• Women entrepreneurs are defined as “ a confident,
innovative and creative woman capable of achieving self –
economic independence individually or in collaboration,
generates employment opportunities for others through
initiating, establishing and running the enterprise by
keeping pace with her personal, family and social life”
 Concept of women
entrepreneurs
• Government of India has defined women entrepreneurs as
“an enterprise owned and controlled by a women having a
minimum financial interest of 51% of the capital and
giving at least 51% of the employment generated in the
enterprise of women.”
• In nutshell, women entrepreneurs are those women who
think of a business enterprise, initiate it, organize and
combine the factors of production, operate the enterprise
and undertake risks and handle economic uncertainity
involved in running a business enterprise.
 Functions of women
entrepreneurs
• Frederick Harbison (1956) has enumerated the following
five functions of a woman entrepreneurs
• Exploration of the prospects of starting a new business enterprise
• Undertaking of risks and the handling of economic uncertainities
involved in business
• Introduction of innovation or imitation of innovations
• Coordination, administration and control
• Supervision and leadership
 Functions of women
entrepreneurs
• All these entrepreneurial functions can be classified
broadly into three categories
• Risk – bearing
• Organization
• Innovation
Growth of women entrepreneurship
in India
• Women in India plugged into business for both push and
pull factors
• Pull factors imply the factors which encourage women to
start an occupation or venture with an urge to do
something independently
• Push factors refers to the factors which compel women to
take up their own business to tide over their economic
difficulties and responsibilities.
Problems of women entrepreneurs

• Problem of finance
• Women generally do not have property on their names to use them
as collateral for obtaining funds from external sources
• The banks also consider women less credit – worthy and
discourage women borrowers on the belief that they can at any
time leave their business
• Scarcity of raw materials
• Stiff competition
Problems of women entrepreneurs

• Limited mobility
• Family ties
• Lack of education
• Male dominated society
• Low risk – bearing ability
 Developing women
entrepreneurship
• The government moved a step forward in the Seventh Five
Year Plan by including a special chapter on Integration of
Women in Development. The chapter suggested
• To treat women as specific target groups in all development
programmes
• To devise and diversify vocational training facilities for women to
suit their varied need and skills
• To promote appropriate technologies to improve their efficiency
and productivity
 Developing women
entrepreneurship
• To provide assistance for marketing their products
• To involve women in decision making process.
 Limitations of Women
Entrepreneurship
• Establishing and running enterprises always involve risk –
taking. In case of women, the gender stereotyped
perception like self, lack of confidence, and assertiveness
pose limitation to risk – taking
• The Indian women are known as housewives bearing
heavy domestic commitments and resistance of social
structure to change the status from housewives to
working wives also limits women’s entry into
entrepreneurship.
 Limitations of Women
Entrepreneurship
• As indicated, by much low literacy rate of women, lack of
access to education and training serve yet another barrier
for women to enter into entrepreneurship
• As women generally lack in collateral, they find it difficult
to obtain even small amounts from the banks. Banks
generally have a perception about women as weak in
repaying capacity.