What Is Entrepreneurship?
Entrepreneurship can be defined by describing what entrepreneurs do. For example: "Entrepreneurs use personal initiative, and engage in calculated risk-taking, to create new business ventures by raising resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a clearly defined market." But as the following definitions state, entrepreneurship is not restricted to business and profit: "Entrepreneurship involves bringing about change to achieve some benefit. This benefit may be financial but it also involves the satisfaction of knowing you have changed something for the better. "Entrepreneurship is essentially the act of creation requiring the ability to recognize an opportunity, shape a goal, and take advantage of a situation. Entrepreneurs plan, persuade, raise resources, and give birth to new ventures."
Who Are Entrepreneurs?
The word „Entrepreneur‟ has been taken from the French word. It means Between Takers. Entrepreneur is another name of Risk Taker. An entrepreneur is an individual who takes moderate risks and brings innovation. Entrepreneur is a person who organises/ manages the risks in his/her enterprise. “Entrepreneur is a individual who takes risks and starts something new”
Definition
According to J.B.say, “Entrepreneur is an Economic agent to unites all the means of production” An entrepreneur is an individual who takes moderate risks and brings innovation.
An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. An entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as intermediately between capital and labour." Some facts about entrepreneurs and entrepreneurship:
E:xamine needs, wants, and problems to see how they can improve the way needs and wants are met and problems overcome.
N: arrow the possible opportunities to one specific "best" opportunity.
T:hink of innovative ideas and narrow them to the "best" idea.
R:esearch the opportunity and idea thoroughly.
E:nlist the best sources of advice and assistance that they can find.
P:lan their ventures and look for possible problems that might arise.
R:ank the risks and the possible rewards.
E:valuate the risks and possible rewards and make their decision to act or not to act.
N:ever hang on to an idea, no matter how much they may love it, if research shows it won't work
E:mploy the resources necessary for the venture to succeed.
U:nderstand that they will have to work long and hard to make their venture succeed.
R:ealize a sense of accomplishment from their successful ventures and learn from their failures to help them achieve success in the future
Characteristics of Successful Entrepreneurs
Entrepreneurs are different from each other, but successful entrepreneurs tend to share certain characteristics. Not all of them have developed each of the following to the same degree, but they tend to have developed most of them to some degree. Here are some common characteristics of successful entrepreneurs. Entrepreneurs tend to:
1. be passionate about achieving their goals
2. have a spirit of adventure (in fact, the word "adventure" is derived from the Latin word meaning "to venture")
3. have a strong need to achieve and seek personal accomplishment
4. be se="font-family: "Georgia","serif"; font-size: 10pt;">be persistent
8. be hardworking and energetic
9. &na","serif"; font-size: 10pt;">be innovative, creative, and versatile
7. be persistent
8. be hardworking and energetic
9. have a positive attitude
10. be willing to take initiative
11. have a strong sense of commitment
12. An eye for opportunity: Many entrepreneurs start by finding a need and quickly satisfying it.
13. Independence: Even though most entrepreneurs know how to work within the framework for the sake of profits, they enjoy being their own boss.
14. An appetite for hard work: Most entrepreneurs start out working long, hard hours with little pay.
15. Self-confidence: Entrepreneurs must demonstrate extreme self-confidence in order to cope with all the risks of operating their own business.
16. Discipline: Successful entrepreneurs resist the temptation to do what is unimportant or the easiest but have the ability to think through to what is the most essential.
17. Judgment: Successful entrepreneurs have the ability to think quickly and make a wise decision.
18. Ability to accept change: Change occurs frequently when you own your own business, the entrepreneur thrives on changes and their businesses grow.
19. Make stress work for them: On the roller coaster to business success the entrepreneur often copes by focusing on the end result and not the process of getting there.
20. Need to achieve: Although they keep an "eye" on profits, this is often secondary to the drive toward personal success.
21. Focus on profits: Successful entrepreneurs always have the profit margin in sight and know that their business success is measured by profits. Is this your profile or would you rather do your job, pick up your paycheck and leave the headaches to someone else? Most of us, quite easily, choose the later.
Entrepreneurship as a Career.
Positive aspects of entrepreneurship
1. Being the boss if his own business, he enjoys unlimited powers. He can do things in his own way and he need not take orders from someone else. He can make his own decisions and act on them.
2. There are numerous opportunities for his self- development.
3. Working on one‟s own and thus getting rewards yields immense satisfaction and pleasure for more than what he can get in a job.
4. Monetary rewards can be more than commensurate with his capacity and capabilities.
5. He can command deference and respect of his immediate family and friends. It is a kind of intangible reward.
6. Instead of depending on others, he generates employment for others.
7. He can make significant contribution to the development of the country and be proud of taking part in nation building activities.
8. He can be a great achiever realising his goals and proving his achievements to the world. He can be recognised for his outstanding efforts.
9. Negative aspects
10. Though an entrepreneur is his own boss, in some respects he is not. It is so because he is constrained by various people like his financiers, labourers, suppliers, customers and so on.
11. He may have to face frustration since the scope of his operations is limited by his limited resources.
12. He has to work long and hard hours from morning to dusk and his venture tends to absorb all his energy and time. This may affect his social and family life.
13. At times he may have to face disappointments and frustrations since everything in his venture may not always work the way he would like it to.
14. He has to always work with tension since there is always the risk of failure.
7 key Qualities of Entrepreneur
Being an entrepreneur is about more than just starting a business or two, it is about having attitude and the drive to succeed in business. All successful Entrepreneurs have a similar way of thinking and posses several key personal qualities that make them so successful in business. Successful entrepreneurs like the ambitious Richard Branson have an inner drive to succeed and grow their business, rather than having a Harvard Business degree or technical knowledge in a particular field. All successful entrepreneurs have the following qualities:
Inner Drive to Succeed Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.
Inner Drive to Succeed Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.
Strong Belief in themselves Successful entrepreneurs have a healthy opinion of themselves and often have a strong and assertive personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time thinking about un-constructive criticism.
Search for New Ideas and Innovation All entrepreneurs have a passionate desire to do things better and to improve their products or service. They are constantly looking for ways to improve. They're creative, innovative and resourceful.
Openness to Change If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest technology or service techniques and are always ready to change if they see a new opportunity arise.
Competitive by Nature Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self imposed high standards is to compete with other successful businesses.
Highly Motivated and Energetic Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have an abundance of self motivation. The high standards and ambition of many entrepreneurs demand that they have to be motivated! Accepting of Constructive Criticism and Rejection Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan, otherwise they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that rejection and obstacles are a part of any leading business and they deal with them appropriately.
True entrepreneurs are resourceful, passionate and driven to succeed and improve. They're pioneers and are comfortable fighting on the frontline The great ones are ready to be laughed at and criticized in the beginning because they can see their path ahead and are too busy working towards their dream.
WOMEN ENTREPRENEUR IN INDIA:
The Indian sociological set up has been traditionally a male dominate done. Women are considered as weaker sex and always to depend on men folk in their family and outside, throughout their life. They are left with lesser commitments and kept as a dormant force for a quite long time. The Indian culture made them only subordinates and executors of the decisions made by other male members, in the basic family structure. The traditional set up is changing in the modern era. The transformation of social fabric of the Indian society, in terms of increased educational status of women and varied aspirations for better living, necessitated a change in the life style of Indian women. Indian families do have the privilege of being envied by the westerners, since women here are taking more responsibilities in bringing up children and maintaining a better home with love and affection. At the family level, the task of coordinating various activities in a much effective manner, without feeling the pinch of inconveniences, is being carried out by the women folk. Thus, the Indian women have basic characters in themselves in the present sociological and cultural setup as follows.
1. Indian women are considered as Sakthi, which means source of power.
2. Effectively coordinating the available factors and resources.
3. Efficient execution of decisions imposed on them
4. Clear vision and ambition on the improvement of family and children.
5. Patience and bearing the sufferings on behalf of others and
6. Ability to work physically more at any age.
NEED OF THE HOUR: Women sector occupies nearly 45% of the Indian population. The literary and educational status of women improved considerably during the past few decades. More and more higher educational and research institutions are imparting knowledge and specialisation. At this juncture, effective steps are needed to provide entrepreneurial awareness, orientation and skill development programmes to women. The institutions available at present are very limited. Moreover, their functions and opportunities available with them are not popularised much.
QUALITIES REQUIRED FOR AN ENTREPRENEUR: An effective entrepreneur requires certain basic qualities, which can be listed as follows.
1. Innovative thinking and farsightedness.
2. Quick and effective decision making skill.
3. Ability to mobilise and marshal resources.
4. Strong determination and self confidence.
5. Preparedness to take risks.
6. Accepting changes in right time.
7. Access and alertness to latest scientific and technological information.
Matching the basic qualities required for entrepreneurs and the basic characters of Indian women reveal that, much potential is available among the Indian women on their entrepreneurial ability. This potential is to be recognized, brought out and exposed for utilisation in productive and service sectors for the development of the nation.
Factors affecting Entrepreneurship growth:
1. Economic factors
2. Social factors
3. Cultural factors
4. Personality factors
5. Psychological and sociological factors.
Economic Factors:
1. Lack of adequate basic facilities
2. Non- availability of capital
3. Non- availability of raw materials and finished goods.
4. Greater risk involved in business
5. Non- availability of skilled labour
Social factors
1. Customs and traditions
2. Rationality of the society
3. Social system
4. Social set-up
Personality Factors
1. Suspect personality
2. Emergence of planning
EDPs – Entrepreneurship Development Programmes
Objective of EDPs
1. Develop and strength their entrepreneurial quality.
2. Analysis environmental set up relating to small industry and small business.
3. Select product
Formulate project for the product
1. Know pros and cons in becoming an entrepreneurs
2. Develop a broad vision about the business.
Course contents and curriculum of EDPs
1. General instruction to Entrepreneurship
2. Motivation Training
3. Management Skills
4. Support system and procedure
5. Fundamentals of project feasibility study
6. Plant visits
Phases of EDPs
1) Pre- training Phase
a) Selection of entrepreneurs
b) Arrangement of infrastructure
c) Tie-up of guest faculty for the training purpose. Like that
2) Training Phase
a) Purpose of training is to develop „need for achievement‟
b) Role play as like entrepreneur
3) Post-training Phases
a) Follow- up
b) Review the pre- training work
c) Review the process of training programmes and
d) Review past training approach
ACTION PLAN: Proper planning and execution are required at all levels. Proper training in right direction is to be planned meticulously. The steps to be taken can be listed as follows:
1. Identifying entrepreneurs with different literary levels in proper groups and to create awareness about entrepreneurship and its importance as job providing avenues rather than job seeking ventures.
2. Skills to be provided to selected group are to be identified.
3.Making them to realise the income generation and social status and recognition.
4.Giving orientation and skill training on selected trades on their choice and suitability.
5. Assisting them in preparation of project reports for their own proposed units and helping them to follow up the venture to start the new enterprise.
6. Providing consultancy and guidance, continuously.
A training capsule of around 15 days may be provided by expert institutions, voluntary agencies and Govt., departments. The financial resources are to be mobilised to provide this type of programmes, by the government organizations like banks, public sector organizations and voluntary agencies... The higher education institutions, which are spreading throughout the country, may conduct programmes like this, regularly in addition to their academic programmes, with or without govt., aid. Young graduates of that area and the final year students of U.G/P.G courses may also be provided with such training. Normally, infrastructures are available with such institutions. Getting expertise and mobilizing other requirements will also be easier for such institutions, since they are already having good establishment facilities. Voluntary agencies like Rotary clubs, Lions clubs, and etc. Govt., sponsored institutions like UGC, Science and technology Councils may interact with the colleges/universities, through financial assistance, to carry out the programmes. With proper financial assistance and effectively using them, each college/university may train 300 to 1000 youths, in the area of entrepreneurship development. When women are going to be the target groups, the benefit will reach a larger section of the society. Thus ED culture is to be developed gradually among the prospective individuals, in addition to providing educational facilities to use the vibrant individual force in right direction. Thus programmes combining, technical skill and entrepreneurship skill, to selected groups, will make the Indian people more self reliant and confident and would lead them to be envied by people at the international level.
TRAINING COMPONENTS: Even though there are very efficient institutions at the national level, like EDI Ahmadabad,
NSTED BOARD, New Delhi,
NISIE, Hyderabad and at State level,
CED in Madurai and Chennai,
TANSTIA in Chennai such programmes are to be conducted at regional level, at the residential area of the women, in their vernacular language and to the specific requirement of the people of that area.
The essential components of such training may be listed as follows.
The essential components of such training may be listed as follows.
1. Awareness, career building and attitudinal change towards enterprise formation.
2. Effective training on building up self-confidence and communication skills.
3. Skill training on specific trades suitable to their option.
4. Training on quick and effective decision making techniques and managerial skills.
5. Training on marketing strategies.
6. Training on effective financial management.
7. Training on project formulation and implementation.
8. Scope for increasing access to new technologies and scientific knowledge.
9. Information on persons/offices to be contacted.
10. Interaction with successful entrepreneurs for sharing their experiences
Training in such areas is not going to have much financial burden to the govt., when compared to other developmental projects. This type of programmes can be conducted in all the parts of the country. A consistent and continuous effort in this project will add more dimensions Indian youths and their empowerment and to the economic development of the nation as a whole
STEPS FOR STARTING SMALL-SCALE INDUSTRIES
. Steps to be taken
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Agency to be contacted
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1. Product selection and preparation of Project report.
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District Industries Centres/Small Industries service Institutes/Technical consultancy agencies like CECRI at Karaikudi, for specialised products.
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2. Obtaining provisional or permanent registration
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District Industries centre/Department of Industries and commerce.
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3. For obtaining developed plots for construction of a factory for obtaining sheds in Industrial Estates on ownership/rental basis
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District Industries centres.
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4. If agricultural land is to be used for industrial purpose and permission from Thasildar, to conclude lease deed.
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Small Scale Industries Development Corporation.
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5. Obtaining licenses for the plan,etc.
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Respective Corporation / Municipality / Punchait, where the unit is to be set up
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6. No objection certificate from pollution
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Respective State pollution control Boards.
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7. Registration under the Factories Act
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Chief Inspector of factories and Boilers.
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8. Finance Commercial banks/Industrial co-op.banks.
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State finance Corporations-for term loans
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9. Registration for sales tax
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State Commercial Tax Office
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10. Water supply
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Water supply and sewage Board.
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11. Power connection
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State Electricity Board
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12. Processing controlled raw material
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Joint Director(SSI)
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13. For imported raw materials/machinery and components
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The Joint Chief Controller of imports and exports
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14. Obtaining machinery on hire purchase
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National Small Industries Corporation (NSIC)-Regional offices.
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15. Foreign collaboration
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The Foreign Investment Promotion Board, Ministry of Industrial Development, Govt. of India.
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16. ISI Certificate
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Bureau of Indian Standards Institution, New Delhi.
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17. Patent Right
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The Controller of Patent and Designs.
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18. Registration of Trade Marks
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Registrar of Trade Marks.
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19. Marketing Assistance a) Internal Marketing b) Export Marketing
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Respective State Small Industries Marketing corporations. Export Promotion Council/Cells; Trade Development Authority; State Trading corporation; Export credit Guarantee Corporation and Export Inspection Agency.
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20. Testing, Training and other extension facilities
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Small Industries Service Institutes and Regional Testing Laboratories.
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21. Product development Assistance
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Project and product development
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Institutions:
a. Commercial banks
b. IDBI
c. IFCI
d. ICICI
e. LIC
f. UTI
g. SFCs
h. SIDBI
i. EXIM BANK
Support Institutions
a. NSIC
b. SIDO
c. SSIB
d. SSIDC
e. SISIs
f. DICS
g. INDUSTRIAL ESTATES
Entrepreneurial Initiatives in India- “Top Incubation Center” 1. Centre for Innovation, Incubation&
Entrepreneurship (CIIE) - IIM Ahmedabad
1. Set up in 2001
2. Since inception CIIE has 15-odd innovations grow out of the incubation centre in varied technologies
2. Society for Innovation and Entrepreneurship (SINE)- IIT Bombay
1. Set up in 2004
2. It currently has 16 companies under its incubation programme
3. Cell for Tech Innovation, Development & entrepreneurship support- IIT Chennai
1. Set up in 2000
2. Organises national level competitions, „Breakthrough‟ (general business plan competition) and „Genesis‟ (social entrepreneurship plan competition)
4. Society for Innovation and Development (SID) - IISc, Bangalore
1. Set up in 2006
2. The investigator is given a seed capital for Rs 20 lakh a year for two years as soft loan for the approved plan
5. The SP Jain Centre for Entrepreneurship Development- SPJIMR
16-week 'Start Your Own Business' programme-a public programme held every six months.
6. Technology Business Incubator (TBI) - BITS Pilani
1. In association with DST, BITS has established Technology Business Incubator in the area of embedded systems and VLSI design back in 2004
2. So far, TBI has helped spawn ten companies.
7. Technology Incubation and Entrepreneurial Training Society (TIETS) – IIT Kharagpur
Set up in 2005, So far, the institute has been able to incubate two companies through „Concipio‟ over the last three years. Besides, an in house panel has helped 11-12 ventures take wing
8. Nirma Labs, Nirma University, Ahmedabad
Established in 2004, Nirma Labs used to pride itself in a three-step model for students who were interested to start their own businesses-training, incubation and funding.
Month long „Igniting Minds and Ideas‟-IEEE certification programme by the Delhi based ISO certified strategy consulting firm „Total Solutions Incorporation‟ (TSI) and „Total Resource Academy of India (TRAIN)‟ a knowledge management , training and development organisation held for students of Delhi Public School (DPS), R K Puram.
The National Geographic Channel recently announced a Nationwide contest „shaping the future‟ with the collaboration of the Foundation for Information & Technology Transfer at IIT-Delhi; Society for Innovation & Entrepreneur at IIT-B, Nedathur S Raghvan Centre for entrepreneurial Learning (NSR-CEL) at IIM-B and the Technopreneur Promotion Programme at the Department of Scientific and Industrial Research DSIR
The National Geographic Channel recently announced a Nationwide contest „shaping the future‟ with the collaboration of the Foundation for Information & Technology Transfer at IIT-Delhi; Society for Innovation & Entrepreneur at IIT-B, Nedathur S Raghvan Centre for entrepreneurial Learning (NSR-CEL) at IIM-B and the Technopreneur Promotion Programme at the Department of Scientific and Industrial Research DSIR
