Who is an entrepreneur?
- A person who brings in overall change through innovation for the maximum social good.
- Is a visionary and an integrated man with outstanding leadership qualities
- An urge to exercise power over things and objects is an intrinsic quality of an entrepreneur
- He is the key person who envisages new opportunities, new techniques, new lines of production, new products and coordinates all other activities.
- Word entrepreneur is derived from the French word “Entreprendre” which means to undertake
Functions of entrepreneurs
- Idea generation
- Determination of objectives
- Raising of funds
- Procurement of raw materials
- Procurement of machinery
- Market research
- Determination of form of enterprise
- Implementation of the project
Classification of entrepreneurs
- Business entrepreneurs
- Trading entrepreneurs
- Industrial entrepreneurs
- Corporate entrepreneurs
- Agriculture entrepreneurs
- Individuals who conceive an idea for a new product or service and then create a business to materialize their idea into reality.
- Tap both production and marketing resources
- May set up a big establishment or small business unit
- Undertakes trading activities and is not concerned with the manufacturing work.
- Identifies potential markets, stimulates demand for the product line and creates a desire and interest among buyers.
- Engaged in both domestic and overseas trade
- A manufacturer who identifies the potential needs of customers and tailors products or services to meet the needs.
- Product oriented man who starts in an industrial unit
- Has the ability to convert economic resources and technology into a considerably profit venture
- A person who demonstrates his innovative skill in organizing and managing a corporate undertaking
- An individual who plans, develops and manages a corporate body
- One who recognizes the part of the society which is stuck and provides new ways to get it unstuck.
- Need to make a difference, to change society
- They introduce new solutions to societal problems
- A person who is interested in establishing a business but does not have interest in managing or operating it once it is established.
- He sells out the running business and starts another venture with the sales proceeds
Types of Entrepreneurs
Characteristics of entrepreneurs
- Hard work
- Business Acumen and sincerity
- Achievement motivation
- Self reliance and Independence
- Highly optimistic
- Keen Foresight
- Maintenance of public relations
Important of Entrepreneurs
Entrepreneurs Vs Professional managers
- Full risk bearing
- All functions
- No risk bearing
- Managerial functions
Entrepreneur Vs Intrapreneur
- Need not be highly educated
- Fund raising
- Risk bearing
- Routine work
- Operation from outside
- Strong authoritarian
- Highly educated
- No fund raising
- No risk bearing
- Operation from inside
- Less authoritarian
- “Women who innovate initiate or adopt business actively are called women entrepreneurs.” J. Schumpeter
- “Women entrepreneurship is based on women participation in equity and employment of a business enterprise.”
Factors influencing women entrepreneurs
- Pull Factors: factors which encourage women to become entrepreneurs. Includes: desire to do something new in life, need for independence, availability of finance, concessions and subsidies.
- Push factors: factors which compel women to become entrepreneurs. Includes: unfortunate family circumstances, financial difficulties, responsibility in the family.
Classification of Women entrepreneur
- Chance entrepreneur: Start business without any preparation, clear goals or plans. They happen to grab the opportunity which they come across.
- Natural entrepreneur: They take business as a profession on their own by self planning or motivated through profit factor and also keeping themselves busy.
- Created entrepreneurs: These entrepreneurs are encouraged and trained through specialized training programmes such as EDP to set up their own industrial units.
- Forced entrepreneurs: women who are compelled by circumstances to take over the existing business are called forced entrepreneurs.
Problems of women entrepreneurs
- No independence
- Social attitude
- Low literacy
- Low risk bearing capacity
- Dual responsibility
- Financial constraints
- Marketing problem
- Limited mobility
Concepts of MSME and Its grwoth in India
Key Challenges Faced By the MSME Sector
- Lack of availability of adequate and timely credit
- High cost of credit
- Collateral requirements
- Limited access to equity capital
- Procurement of raw material at a competitive cost
- Problems of storage, designing, packaging and product display
- Lack of access to global markets
- Inadequate infrastructure facilities, including power, water, roads, etc
- Low technology levels and lack of access to modern technology
- Lack of skilled manpower for manufacturing, services, marketing, etc
- Multiplicity of labour laws and complicated procedures associated with compliance of such laws.
- Refers to various facets within which enterprises- big, medium, small and others have to operate.
- Entrepreneurial environment is classified into six important segments namely Political environment, economic, social, technological, legal and cultural environment
- It encompasses a wide spectrum of items- land, availability of raw material, skilled labour, infrastructure, machinery, capital etc
- Factors can be family back ground, Kith and kin, religion, social status and social mobility.
- Technology represents the application of scientific knowledge for practical purpose.
- Technological advancement has become catalytic agent in the promotion of entrepreneurship growth.
- There are various rules and regulations applicable to different groups of industries for various purposes.
- Some of them are registration, licensing, pollution, location, payment of wages and labour related laws, laws relating to product, patent, resource and taxes.
Entrepreneurship development Programmes
ED programmes are designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively.
Appropriate design of EDP
- EDP broadly envisages a three tiered approach:
- Developing achievement motivation and sharpening of entrepreneurial traits and behaviour
- Project planning and development and guidance on industrial opportunities, incentives and facilities and rules and regulations
- Developing managerial and operational capabilities
Objectives of EDP
- To accelerate the process of entering into a business for those who come from business families
- To develop and strengthen the entrepreneurial competencies of prospective entrepreneurs
- To provide help in identification and formulation of viable projects
- To arrange support systems about process and procedures for setting up an enterprise
Phases of EDP
- Pre- training phase
- Training phase
- Post training phase
- The preparations required to launch a programme come under this.
- Creation of infrastructure for training
- Preparation of training syllabus
- Tie- up with faculty for training purpose
- Selection of necessary tools and techniques to select suitable entrepreneurs
- Formation of selection committee for selecting candidates
- Arrangement for publicity media and campaigning for the programme
- Survey of opportunities available in the given environmental conditions
- Selection of potential entrepreneurs
- Arrangement for inauguration of the programme
- Training programme is launched
- The objective of the training programme is to enable participants to do a self study
- The participants have to be exposed to agencies like DIC, local banks and other financial institutions
- Industrial visits
- Preparing and maintaining a separate file for each trainee
- Keeping in touch with every participants through letters
- Contact the entrepreneurs by personal visits
- Conduct follow up meetings and maintain follow up register to ensure the success of the EDP
Institutional support to small and medium enterprises
Established in 1954 to provide effective coordination and inter-institutional linkages for the benefit of small scale sector.
It consists of the following members:
- Union Industry Minister
- State Industry Minister
- Selected members of Parliament
- Secretaries of department concerned
Selected Public Enterprises
Services offered by NABARD:
- Attracting youth to rural non-farm sector.
- District Industries Rural Project (DRIP).
- Rural Entrepreneurship Development Programme (REDP).
SMALL INDUSTRIES DEVELOPMENTORGANISATION (SIDO)
Constituted in 1954 to develop support services for promotion of SSS.
Main objectives of SIDO are:
- To formulate policy for promotion of SSI
- Provide coordination of policies of state government
- To collect and disseminate information
- To provide wide range of extension services through allied institutions
- To promote facilities for technology upgradation
- To offer consultancy services
Services Rendered by SIDO:
- Entrepreneurship development and Management training
- Efforts for skill development.
- Preparation of feasibility reports for different products.
- Provision of testing services. Availability of tool room facilities.
NATIONAL SMALL INDUSTRIESCORPORATION (NSIC)
Set up by government of India in 1955.
Main functions are
- Supply of machinery and equipment.
- Provision of financial assistance.
- Assistance for arrangement of raw materials
- Establishment of technology transfer centers.
- Arrangement of marketing assistance.
- Priority in government purchase programme
SMALL INDUSTRIES DEVELOPMENTBANK OF INDIA (SIDBI)
Subsidiary of IDBI, setup as an act of parliament.
Provides assistance for
- Setting up of new SSI units, small hotels, hospitals and so on
- Technological upgradation and modernization, expansion and diversification.
- Quality upgradation.
- Development of markets.
- Development of infrastructure.
- Discounting of bills of manufacturer-seller in selling either equipments or components.
STATE GOVERNMENT INSTITUTES
- Startup Village is a technology business incubator in Kochi and it is India’s first incubator that is funded jointly by the public and private sector.
- Startup Village is a platform aimed at encouraging students and youth to become entrepreneurs.
- Attracted over 5,000 applications and incubated more than 800 startups, of which 256 are student startups.
- The promoters of Startup Village are Department of Science and Technology, Government of India, Technopark Trivandrum and MobME Wireless.
- Kris Gopalakrishnan, co-founder of Infosys and the most successful IT entrepreneur from Kerala, is the chief mentor at Startup Village
- Startup Village aims to launch 1,000 start-ups over the next 10 years and start the search for the next billion-dollar Indian company.
- Objective: We will create an ecosystem that promotes innovation and provides a platform for youngsters to create cutting-edge technology. Our focus is on student start-ups and telecom innovation.
Technopark Technology Business Incubator (T-TBI), Kerala
- Established in 2006 with the support of the Government of Kerala, T-TBI offers fully furnished working spaces spread over 15,000 sq.ft, expert opinions and guidance from the industry, marketing and legal management consultancy and financial assistance.
- T-TBI has till date successfully incubated about 60 companies and has had a 92 percent success rate.
- In early 2011, T-TBI was chosen as the world’s best software incubating company and the first Indian organization to have achieved this status.
- Unlike other business incubators, Technopark TBI is unique in itself because of its novelty in spreading techno-entrepreneurship among the students and innovators.
- Technopark TBI is the pioneer in introducing and organizing various programmes like Technopreneur workshops, Entrepreneurship Awareness Camps, Entrepreneurship Development Programmes, One-to-one and panel discussions, Software Engineering workshops, online mentoring and networking, TechTop the all India student project competition with highest prize money, Engineering students project exhibitions, Entrepreneurship Development Cells, TBI Extension Centres, Virtual Incubation and Pre-incubation facilities.