Professional Documents
Culture Documents
- 1 CONCEPTUAL FRAMEWORK
DEFINITION OF ENTREPRENEUR
According to McClelland : An Entrepreneur is someone who
exercise some control over the means of production and produce more than what he can consume in order to sell it for individual income.
profit.
FUNCTIONS OF ENTREPRENEUR
An Entrepreneur is an opportunity seeker.
He/she is also the organizer and coordinator
establishing
a
the
small
main
scale
functions
enterprise.
of
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IDEA GENERATION:- This is the most important
function of the entrepreneur. Idea generation can be possible through the vision, insight, observation,
experience, education, training and exposure of the entrepreneur. Idea generation precisely implies product
Cont.
DETERMINATION OF OBJECTIVES:- The next
function of the entrepreneur is to determine and lay down the objectives of the business, which should be spelt out on clear terms. In other words, entrepreneur should be very much clear about the following things:
Cont.
RAISING OF FUNDS:- Fund raising is the most important
function of an entrepreneur. All the activities of a business depend upon the finance and its proper management. It is the responsibility of the entrepreneur to raise funds internally as well as externally. In this matter, he/she should be aware of the different sources of funds and the formalities to raise funds. He should have the full knowledge of different government sponsored schemes.
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PROCUREMENT OF RAW MATERIALS:Another important function of the entrepreneur is to procure raw materials. Entrepreneur has to identify the cheap and regular sources of supply of raw materials, which will help him to reduce
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PROCUREMENT OF MACHINERY:- The next function of the entrepreneurs is to procure the machineries and equipments for establishments of the venture. While procuring the machineries, he/she should specify the following details:
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d). Whether the machines are indigenously made
or foreign made.
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MARKET RESEARCH:- The next function of the
entrepreneur is market research and product analysis. Market research is the systematic collection of data regarding the product which the entrepreneur wants to manufacture.
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IMPLEMENTATION
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OF
THE
PROJECT:-
Entrepreneur has to work on the implementation schedule or the action plan of the project. The identification project is to be implemented in a time-
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To conclude with all these function of the entrepreneur can precisely be put into the following categories:a). Innovation b). Risk Bearing c). Organization and Management
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INNOVATION:- The introduction of new
combination of factor of production, according to
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b). Introduction of new methods of
production or distribution.
industry.
e). The discovery of a new source of
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ORGANIZATION AND MANAGEMENT:- An
entrepreneur brings together various factors or production, organizes them properly and performs the
QUALITIES OF ENTREPRENEUR
INITIATION: Given the demand of initiation
the entrepreneur takes initiation to start an industry.
CONSCIOUSLY
WATCHING
FOR
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PERSISTENCE:- He/she is always tenacious to make
extra efforts to get rid of obstacles coming in the way of the reaching the goals. He/she will try hard to achieve the goal and will prompt his employees try hard.
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QUALITY CONSCIOUS: Always puts
efforts to excel better than the existing
standards of performance.
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PROPER PLANNING:- Frames realistic business
plans and follows them severely to achieve the objectives.
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EFFICIENT
MONITORING:-
Personally
supervisors they want to ensure that the work is accomplish according to the standard set forth.
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He/ she is energetic, hard working
resourceful, alert for new business
opportunities,
winning
to
take
his/her
1. MOTIVE
The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification.
An entrepreneur being the owner of the enterprise assumes all risk and uncertainty involved in running the enterprise.
While, the main motive of a manger is to render his services in an enterprise already set up by someone else.
2. RISK BEARING
A manager as a servant does not bear any risk involved in the enterprise.
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POINTS 3. REWARDS ENTREPRENEUR The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. Entrepreneur himself thinks-over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a Changeagent. MANAGER A manager gets salary as reward for the services rendered by him in the enterprise and it is certain and fixed. But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur ideas into practice.
4. INNOVATION
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POINTS 5. QUALIFICATION ENTREPRENEUR An entrepreneur needs to possess qualities and qualifications like high achievement motive, high thinking, foresight, risk bearing ability and so on. MANAGER On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice.
6. VENTURE
An entrepreneur sets an A manager does not new enterprise or take a new venture and undertake a venture. renders services on an existing enterprise.
7. CONTINUTIY
Entrepreneurial activities are discontinuous appearing to initiate changes in the production process and then disappearing until another change is
Managerial activities are mainly continuous involving an ongoing coordination of business operations.
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POINTS ENTREPRENEUR MANAGER
8. PRE-REQUISITE
needs a
entrepreneurial role an distinctive qualification entrepreneur need pre- such as knowledge of requisite like, mission, human creative thinking, risk management bearing ability, etc etc because behavior, theory, the
born.
9. STATUS An entrepreneur is the A owner enterprise. of manager of owned is the the by
DEFINITION OF ENTREPRENEURSHIP
ACCORDING TO PETER DRUCKER:
Entrepreneurship is neither a science nor an
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are by the practice. Entrepreneurship is not just
about making money. It is about imagination,
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ACCORDING TO HIGGINS: Entrepreneurship is the function of seeking investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging for raw materials, finding site, introducing new technique, discovering new source of raw materials & selecting top managers for day to day operations of an enterprise.
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ENTREPRENEUR + ENTERPRISE = ENTREPRENEURSHIP
(PERSON)
(OBJECT)
(PROCESS)
BARRIERS OF ENTREPRENEURSHIP
ENVIRONMENTAL BARRIERS:1). RAW MATERIAL:Non-availability of raw
material required for production of goods, especially during peak season, causes impediment in the growth of the business. In such a situation, competition causes increase in the price of
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E.g.:
if the plastic granules required for production of cups are
important
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Either it is because of the lack of skilled labour in the
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4). LAND & BUILDING:Acquisition of land and
construction of building at a prime location to run the business requires expenditure of large amounts of scarce cash, especially in the cash of small organizations. An alternative approach could be taking land on lease or rent. But this
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5). OTHER INFRASTRUCTURE
Apart from the factors of
REQUIREMENTS:-
production mentioned above, there are other infrastructure requirements of the business which when no present in adequate amount can future become a barrier to the growth of business. Any business organization requires some basic infrastructure support like adequate power supply, proper roads, water and drainage facilities etc.
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FINANCIAL BARRIERS:Funds are one of the most important components required for the successful running of the business. There are various methods, by which an entrepreneur arranges for funds.
e.g.: his own savings, and borrowings from friends and relatives,
banks and other institutional bodies that support the new venture. If there is a delay in the release of payments by the source of finance, it causes delay in starting and / or running the business,
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PERSONAL BARRIERS:These are barriers that are caused by emotional block of individual. They cause meant obstruction to the individual and lead to the failure of business.
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The resources required and dismiss the thought of
becoming a self employed as irrelevant. They may regard themselves as risk avers and feel that running a business is too risky. They may not feel that they could master all the necessary skills.
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2). LACK OF DEPENDABILITY ON OTHERS:Many entrepreneur aims to gain their
additional expertise through the trial and error of experience rather than seeking further personal development or assistance from others. As business grow, they increasingly need to replace the initial, largely informal, management arrangements with more formality. They also need to think more strategically.
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3). LACK OF MOTIVATION:When an
individual starts a new business venture, he is filled with enthusiasm and drive to achieve success, but he faced the challenges of real business, bears losses or his ideas dont work, he loses interest / motivation. This causes further loss of
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4). LACK OF PATIENCE:This barrier is more
dominant amongst youth entrepreneurs. The desire to achieve success in the first attempt or to become rich instantly is the prime motivating factor of modern youth. They want to achieve instant success and believe it would be a cakewalk.
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5). INABILITY TO DREAM:It has been rightly
DEVELOPMENT OF ENTREPRENEURSHIP
Entrepreneur plays a significant role in
economic development of a country. Economic development greatly depends upon entrepreneurial and industrial
development. In western countries, entrepreneurs have contributed a great deal in making their country developed. Entrepreneurship plays a key role in the economic development of a country.
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Indeed, entrepreneur is the person who perceives
business opportunity and converts it into a viable (Capable of doing what it is intended to do) business plan. Therefore, the entrepreneur is not only launches a venture but also contributes to the objectives of employment creation, output growth, technological up gradation, improvement in the quality of production, export promotion, import substitution and supply of goods at a reasonable price to the customers.
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Following are the roles of entrepreneur towards the nations growth. 1). Role of Entrepreneur as an Innovator in Economic Growth:- The role of entrepreneur as an innovator is
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An entrepreneur is basically an innovator who
introduces new combinations of means of production. Development consists of both of carrying out new
combinations. A new means of production. An innovator, entrepreneur forces the potentially profitable opportunities to exploit it. He is a risk bearer, problem shooter and gets satisfaction in confronting problem. As an innovator, entrepreneur performs the following activities:
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- Bringing about new combinations.
- Making use of potential technical knowledge for continuous
technological progress.
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2). ROLE OF ENTREPRENEUR IN GENERATION OF EMPLOYMENT OPPORTUNITIES:- Entrepreneur plays a significant role in generation of employment opportunities. As we all know, entrepreneurship is a purposeful activity indulges
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The development strategy of our country confronts
(if you are confronted with a problem, task or difficulty you have to deal with it) two important problems unemployment and poverty of the masses. These problems can be effectively minimized by activating the latent (something which is
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3).
ROLE OF ENTREPRENEUR IN COMPLEMENTING (that typically follow it) & SUPPLEMENTING (things are added to something in order to improve it) ECONOMIC GROWTH:- Economic development and growth of a
country depends to great extent upon effective entrepreneurship. Entrepreneur plays a crucial role for the creation of new small enterprises has energize the economic structure. Through constant creativity, businessmen / entrepreneur assures a strong economy and raising national income. Thus, the role of entrepreneur is important, as it not only complements but also supplements the economics growth of the country. To be clearer, entrepreneurs initiate, increase and sustain the economic growth in the following ways:
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- Generation of employment.
- Capital formation. - Increase in per capita income. - Improvement in standard of living. - Growth of infrastructural facilities.
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a). Generation of Employment:- Entrepreneur generate employment both directly and indirectly. Directly an entrepreneur is the self employed person. Indirectly by setting up a large & small scale business they offer jobs to others. b). Capital formation:- Entrepreneur mobilize the idle savings
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c). Increase in per capita income:Entrepreneur locate & exploit (treating you unfairly by using your work or ideas) the opportunities. They convert the latent and idle resources into national income & wealth in the form of goods & services &
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e). Balanced regional growth:- Entrepreneur in public & private
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4). ROLE OF ENTREPRENEUR IN BRINGING ABOUT
SOCIAL STABILITY AND BALANCED REGIONAL DEVELOPMENT OF INDUSTRIES:- In each and every country, entrepreneur is considered as valuable human resources. The responsibility of social stability lies on his shoulders. Entrepreneur as a catalyst (you can describe a person) of change, tries to bring about social stability in the following ways:-
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- Absorption (larger group) of workforce in industries. - Alleviation (suffering or unpleasant condition) of poverty. - Glorification (to indicate that something is less important) of
self-help
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President Dr. APJ Abdul Kalam also strongly
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The definition of village industry has been recently modified by
the government so as to enlarge its scope. Accordingly, any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant and machinery is classified as a village industry. All the village industries have been grouped into seven major categories as follow:-
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- Mineral based industry. (e.g.: such as salt, sulphur that is
formed naturally in rocks and in the earth)
- Service industry.
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Is controlled by a particular country)
b). By providing employment, these industries have also high potential for income generation in the rural areas. These, thus, help in reducing disparities (between two or more things) in income between rural and urban areas. c). The industries encourages dispersal (spreading of things over a wide area) of economic activities in the rural areas and thus, promote balanced regional development.
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d). Development of industries in the rural areas also helps build up village republics. e). Rural industries also help protect the art and creativity, i.e. the age-old rich heritage of the country.
tensions.
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g). Last but not least rural industries being environment friendly
lead to development without destruction (it is the act of destroying something)
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a). Raw material is must for any industry. However, the nonavailability of raw material accompanied by their prohibitive
(it is so high that many people cannot afford it) cost has
weakened (it becomes less strong or less powerful) the viability (capable of doing what it is intended to do) of these
itself.
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b). Finance is considered as lubricant (it is a substance which you put on the surfaces or parts of something) for setting up and running an industry. Funds, therefore, need to be made available on time at soft terms and conditions to those who
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This would help in promoting export business, on the one hand, and bringing the buyers and sellers is close interaction avoiding middleman in between them on the other hand. d). Our peculiarity (something has is a strange or unusual
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e). One effective way to include the entrepreneurial expertise and attitude may be imparting entrepreneurial education in the school, colleges and university. f). Sometimes the real problem in setting industries is not the non- availability of facilities, but non-awareness of facilities whatever is available. The need is, therefore, to disseminate
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g). Proper provisions need to be made to impart the institutional
training to orient (yourself to a new situation) the entrepreneurs in specific product and traders so that the local resources can be properly.
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entrepreneurship in the country was purely an indigenous (things belong to the country in which they are found) initiative, i.e. the Technician Scheme launched in the year 1969 by two state level agencies of Gujarat. The scheme visualized 100% finance without collaterals (is money or property which is used as a guarantee that someone will repay a loan)
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scheme. The real gain of the scheme was the realization that
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However, with the number of programmes
increasing, the need for having a separate state level organization to look into selection, training and development of first generation entrepreneurs was strongly felt (feel). Thus, the Gujarat Centre for Entrepreneurship (CED), the first of its kind in the country, came into existence in 1979 with the support of Government of Gujarat and the industrial promotion and assistance agencies in the state.
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By this time, the success story of Gujarat experiment spread far and wide and the Ford Foundation encouraged the Gujarat team to test out EDP strategy in a few less developed states like Rajasthan, Assam, etc. several development agencies in other parts of the country mounted
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EDII Entrepreneurship Development Institute of India came
into existence in the year 1983. EDII Entrepreneurship Development Institute of India was set up as an autonomous (organization or group governs or controls itself rather than being controlled by anyone else) body under the Societies Registration Act on April 20, 1983.
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MISSION: An acknowledged national resources institution, EDI
is committed to entrepreneurship education, training and research. The institute strives to provide innovative training techniques, competent faculty support, consultancy and quality teaching & training material.
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4). Participating in institution building efforts.
5). Inculcating (an idea or opinion in someones mind) the spirit of Entrepreneurship in youth. 6). Promoting micro enterprises at rural levels. 7). Developing and disseminating (information means to
with the drive and with the ability to bear risk. He is the spark
plug who transforms the economic scene. Hence, it is said that an economy is an effect for which entrepreneurship is the cause. Entrepreneurship development has, therefore, become a matter of great concern in all developed & developing countries all over the world. But, the real problem is how to develop entrepreneurship development programmes (EDPs) are deemed to offer the solution to this problem.
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Competencies are underlying characteristics of the
entrepreneurs which result in superior performance. Then, the crucial question arises is whether these characteristics are in born in the entrepreneurs or can be induced and developed? In other words, whether entrepreneurs are born or made? Behavioral scientists have tried to seek answers to these questions.
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Objectives of EDPs:1). Develop and strengthen their entrepreneurial quality, i.e. motivation or need for achievement. 2). Analyze environment set up relating to small industry and small business.
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5). Understand the process involved in setting up a small
enterprise. 6). Know the source of help and support available support available for starting a small-scale industry. 7). Acquire the necessary managerial skills required to run a
small enterprise.
8). Appropriate the needed entrepreneurial discipline.
entrepreneurs in economic development, entrepreneurial behavior and the facilities available for establishing smallscale enterprise.
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2). MOTIVATING TRAINING:- The training inputs under this aim
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3). MANAGEMENT SKILLS:- Running a business, whether
large or small requires the managerial skill. Since a small entrepreneur cannot employ management experts to manage his / her business, he / she need to be imparted basic and essential managerial skills in the functional areas like finance, production and marketing. Knowledge of managerial skills enables entrepreneur to run his / her enterprise smoothly and successfully.
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4). SUPPORT SYSTEM AND PROCEDURE:The
participants also need to be exposed to the support available from different institutions and agencies for selling up and running small-scale enterprise. This is followed by the acquainting them with procedure for approaching them, applying and obtaining support from them.
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5). FUNDAMENTALS OF PROJECT FEASIBILITY
STUDY:- Under this input, the participants are provided guidelines on the effective analysis of feasibility of the particular project in view of marketing, organizing, technical, financial and social aspects. Knowledge is also given how to prepare the project or Feasibility report for certain products.
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6). PLANT VISIT:- In order to familiarize the participants with
real life situations in small business, plant visits are also arranged. Such trips help the participants know more about an entrepreneurs behavior, personality, thoughts and aspirations. These influence him / her to behave accordingly to run his / her enterprise smoothly and successfully.
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1). Before
The salient features of CED were as following:conducting any training an programme survey for of
entrepreneurship
development
industrial
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3). Entrepreneur were selected through behavioral test. Due
weight age on experience was given rather than education or unemployment. 4). Program of training included theoretical & practical coverage including visits to industrial units consistent with the items identify by the entrepreneur.
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5). Follow up action was taken by the full time project leader. An
individual attention was given to each entrepreneur trainee. The success rate of CED program is reported to be of the order of 66%.
THANK YOU FOR GIVING YOUR PRECIOUS TIME AND ALSO FOR YOUR COOPERATION