ENTREPRENEURSHIP

INTRODUCTION

Entrepreneurs are the creators and builders of new ventures that not only fulfill their own dreams,
bring them huge fortune but also make a strong impact on the society and improve the lives of people.
A successful venture will lead to new or improved products/services, create new jobs and add
values for owners, investors and the society. Starting up a venture is not difficult if you know how
although a successful venture requires more than knowledge on entrepreneurship.
Definition of 'Entrepreneur'
An individual who, rather than working as an employee, runs a small business and assumes all the risk and
reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is
commonly seen as a business leader and innovator of new ideas and business processes.

ENTREPRENEURIAL TRAITS
1. Passionate
You need to be driven by a clear sense of purpose and passion. Typically, that passion comes from one of
two sources: the topic of the business, or the game of business-building itself.
Why do you need passion? Simply because youre likely to be working too hard, for too long, for too little
pay with no guarantee that itll work out so you need to be motivated by something intrinsic and not
money-related.
2. Resilient
If youre going to build a startup, youll need a spirit of determination coupled with a high pain tolerance.
Youll need to be willing and able to learn from your mistakes to get knocked down repeatedly, get up,
dust yourself off, and move forward with renewed motivation.
People will constantly tell you your babys ugly, that your business wont work. Now, you should listen
carefully and be open to constructive criticism. But after a while, having the door slammed in your face
repeatedly can be withering, and the best entrepreneurs learn to feed off the negativity and actually gain
strength from it.
3. Self-Possessed
You need a strong sense of self. You cant be threatened by being surrounded by talented, driven people.
To truly succeed, youll need the self-confidence to surround yourself with people who dont look like
you that is, people with skills, background and domain knowledge that complement your own. And
check your ego at the door: you shouldnt be too proud to make coffee for the team, empty the waste
baskets, or do the bank runs.
4. Decisive
Youll need to develop a comfort-level with uncertainly and ambiguity. Entrepreneurs gather as much
information as they can in a short period of time, and then MOVE, MOVE, MOVE!! The attitude is that
its not going to be perfect We only have 9% or so of the data from which to base our decision but if
we wait to have all the information, well never get moving and be mired in indecision. (Big
organizations are really good at this the mired thing saying, We dont have enough information, so
lets continue to study form a committee or a task force)

5. Fearless
On the sliding scale from risk-averse to risk-seeking, it shouldn't surprise anyone that entrepreneurs
tend to be closer to the latter. But you dont need to be a nut-case, the sort who bungee-jumps without a
helmet. Smart entrepreneurs develop an intuitive ability to sniff out and mitigate startup business risk. But
you know youre going to fall down, and feel comfortable with that fact and that youre going to learn
from your failures and adjust as you go.
6. Financially Prepared
Youll need the right personal financial profile to make the leap. This doesnt mean that only the rich can
be entrepreneurs. But unless and until youve got the personal financial runway (ability to go without a
steady paycheck and subsidized benefits) of at least 18 to 24 months (ideally longer), you might hold off
on quitting your day job.
Consider launching the startup as a side-business if thats possible, while continuing to work the 8-to-5
shift to cover the bills. Or approach your boss about going part-time. Then, once your business generating
cash flow, you can dial back on your hours, or submit your resignation and go full-time with your startup.
7. Flexible
I challenge you to find an entrepreneur running a startup four or more years old where that business
doesnt differ dramatically from the vision sketched out in their original business plan. The point is that
the folks who stay on their feet are the ones who stay flexible and adjust to new information and changing
circumstances.
8. Zoom Lens-Equipped
Can you pan out to see a compelling big vision for your business, then zoom in and focus on near-term
startup goals? Successful entrepreneurs can facilely move back and forth between these two views.
Theyre able to articulate the big picture, while simultaneously managing and executing to the zoom-in
picture.
9. Able to Sell
Whether youre a born extrovert or introvert, as a founder/CEO, youll find yourself always selling. Youll
be selling your vision to prospective partners and funding sources. Youll be selling prospective recruits
on why they should quit their day jobs and join this startup theyve never heard of. Youll be selling your
products and services (yes, youll probably be personally closing at least the first few sales). Youll be
selling your employees on why they should remain calm and stay with the ship when the seas inevitably
get rough.
10. Balanced
You may not start out with a fool-proof gyroscope, but to survive as an entrepreneur, youll need that
strong sense of perspective. How to maintain simple, clear focus. How to be at peace with, and learn from,
a failure. Understanding that not all battles are worth winning, and when to walk away. Knowing that
most in your startup arent as entrepreneurial as you that this may be a very cool job for them, but its
still a job. Knowing when to go home and give your loved ones a hug. When to go for a run.

ESSENTIAL FUNCTIONS OF AN ENTREPRENUER
An entrepreneur performs a series of functions necessary right from the genesis of an idea up to the
establishment and effective operation of an enterprise. He carries out the whole set of activities of the
business for its success. He recognises the commercial potential of a product or a service, formulates
operating policies for production, product design, marketing and organisational structure. He is thus a
nucleus of high growth of the enterprise.
According some economists, the functions of an entrepreneur is classified into five broad categories:
1. Risk-bearing function,
2. Organisational function,
3. Innovative function,
4. Managerial function, and
5. Decision making function.
1. Risk-bearing function:
The functions of an entrepreneur as risk bearer is specific in nature. The entrepreneur assumes all possible
risks of business which emerges due to the possibility of changes in the tastes of consumers, modern
techniques of production and new inventions. Such risks are not insurable and incalculable. In simple
terms such risks are known as uncertainty concerning a loss.
The entrepreneur, according to Kinght, "is the economic functionary who undertakes such responsibility
of uncertainty which by its very nature cannot be insured nor capitalised nor salaried too."
Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk because he described an
entrepreneur as a person who buys things at a certain price and sells them at an uncertain price.
Thus, risk bearing or uncertainty bearing still remains the most important function of an entrepreneur
which he tries to minimize by his initiative, skill and good judgment. J.B. Say and other have stressed risk
taking as the specific function of the entrepreneur.
2. Organizational Function:
Entrepreneur as an organizer and his organizing function is described by J.B. Say as a function whereby
the entrepreneur brings together various factors of production, ensures continuing management and
renders risk-bearing functions as well. His definition associates entrepreneur with the functions of
coordination, organization and supervision. According to him, an entrepreneur is one who combines the
land of one, the labour of another and the capital of yet another and thus produces a product. By selling
the product in the market, he pays interest on capital, rent on land and wages to labourers and what
remains is his/her profit. In this way, he describes an entrepreneur as an organizer who alone determines
the lines of business to expand and capital to employ more judiciously. He is the ultimate judge in the
conduct of the business.
Marshall also advocated the significance of organization among the services of special class of business
undertakers.
3. Innovative Function:
The basic function an entrepreneur performs is to innovate new products, services, ideas and informations
for the enterprise. As an innovator, the entrepreneur foresees the potentially profitable opportunity and
tries to exploit it. He is always involved in the process of doing new things. According to Peter Drucker,
"Innovation is the means by which the entrepreneur either creates new wealth producing resources or
endows existing resources with enhanced potential for creating wealth". Whenever a new idea occurs
entrepreneurial efforts are essential to convert the idea into practical application.
J.A. Schumpeter considered economic development as a discreet dynamic change brought by
entrepreneurs by instituting new combinations of production, i.e. innovation. According to him innovation
may occur in any one of the following five forms.
The introductions of a new product in the market with which the customers are not get familiar with.
Introduction of a new method of production technology which is not yet tested by experience in the branch
of manufacture concerned.
The opening of a new market into which the specific product has not previously entered.
The discovery of a new source of supply of raw material, irrespective of whether this source already exists
or has first to be created.
The carrying out of the new form of oranisation of any industry by creating of a monopoly position or the
breaking up of it.

4. Managerial Function:
Entrepreneur also performs a variety of managerial function like determination of business objectives,
formulation of production plans, product analysis and market research, organisation of sales procurring
machine and material, recruitment of men and undertaking, of business operations. He also undertakes the
basic managerial functions of planning, organising, co-ordinating, staffing, directing, motivating and
controlling in the enterprise. He provides a logical and scientific basis to the above functions for the
smooth operation of the enterprise thereby avoids chaos in the field of production, marketing, purchasing,
recruiting and selection, etc. In large establishments, these managerial functions of the entrepreneur are
delegated to the paid managers for more effective and efficient execution.

5. Decision Making Function:
The most vital function an entrepreneur discharges refers to decision making in various fields of the
business enterprise. He is the decision maker of all activities of the enterprise. A. H. Cole described an
entrepreneur as a decision maker and attributed the following functions to him.
He determines the business objectives suitable for the enterprise.
He develops an organization and creates an atmosphere for maintaining a cordial relationship with
subordinates and all employees of the organization.
He decides in securing adequate financial resources for the organisation and maintains good relations with
the existing and potential investors and financiers.
He decides in introducing advanced modern technology in the enterprise to cope up with changing
scenario of manufacturing process.
He decides the development of a market for his product, develops new product or modify the existing
product in accordance with the changing consumer's fashion, taste and preference.
He also decides to maintain good relations with the public authorities as well as with the society at large
for improving the firms image before others.



FACTORS INFLUENCING/PROMOTING ENTERPRENURESHIP

T h e e m e r g e n c e o f e n t r e p r e n e u r s i n a s o c i e t y d e p e n d s u p o n
c l o s e l y i nt er l i nked s oci al , r el i gi ous , cul t ur al , ps ychol ogi cal , and pol i t i cal and
economic factors.

FAMILY TRADITION:
I n d i v i d u a l s wh o f o r s o me r e a s o n , i n i t i a t e , establish maintain and expand new
enterprises generate entrepreneurship in s oci et y. I t i s obs er ved t hat ent r epr eneur s gr ow i n
t he t r adi t i on of t hei r families and society and accept certain values and norms from these sources
.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS:

Religious, social and cultural factors also influence the individual taking up an entrepreneurial
career, in some countries there is religious and cultural belief that high profit is unethical. This type of
belief inhibits growth of entrepreneurship.

PSYCHOLOGICAL FACTORS:
The psychological factors like high need for achievement, determination of unique accomplishment, self
confidence, c r e a t i v i t y , v i s i o n , l e a d e r s h i p e t c , p r o m o t e
e n t r e p r e n e u r s h i p a m o n g i n d i v i d u a l s . O n t h e o t h e r h a n d
p s y c h o l o g i c a l f a c t o r s l i k e s e c u r i t y , conformity and compliance, need for affiliation
etc restrict promotion of entrepreneurship.

POLITICAL FACTORS:
The political and also the political stability of count r y i nf l uence t he gr owt h of
ent r epr eneur s hi p. The pol i t i cal s ys t em, which promotes free market, individual freedom and
private enterprise, will promote entrepreneurship.

ECONOMIC POLICIES:
The economic policies of the government and other financial institutions and the
opportunities available in a society as a r e s ul t of s uch pol i ci es pl a y a cr uci al r ol e i n
exer t i ng di r ect i nf l uence on entrepreneurship. In view of the haphazard development of economic
zones, Government is encouraging the entrepreneurs to establish their business in backward and tribal
areas. This is primarily to arrest the migration of people from the villages to cities and to create
employment opportunities locally. Government is promoting such development by giving incentives like
tax holidays (both sales and income), subsidized power tariff, raw materials, transportation cost etc

C A U S E S O F S L O W G R O WT H O F E N T R E P R E N E U R S H I P

Entrepreneurship developed only in the beginning of the 19th century and t h o u g h
t h e b a s e f o r i n d u s t r i a l i z a t i o n h a d b e e n l a i d a c e n t u r y a g o . T h e f ol l owi ng
be t he mai n r eas ons , whi ch coul d be r es pons i bl e f or l ack of initiative and
entrepreneurial spirit among the Indians.

Caste System: -
This decided occupation for members from each caste. T h e a l t i t u d e s we r e r e s t r i c t i v e
a n d t h e r e f o r e t h e r e we r e n o c h a n g e s o f accumulating wealth and promoting production.

Agriculture: -
Ag r i c u l t u r e wa s t h e ma i n o c c u p a t i o n . F a r me r s a n d cultivators were always in the
clutches of the money lenders. The zamindars, nawabs and rajahs exploited the laborers. They
spent money on enjoyment and luxury and never risked money in industry. Banking and
commercial s ys t em was al s o abs ent s o e ven i f t her e wer e s avi ngs , t hey coul d not
be utilized for productive use.3.

Educational System:
- Talented young men were prepared to take white c o l l a r e d j o b s o r j o i n g o v e r n me n t o r
p r o f e s s i o n a l s e r v i c e s . Ma n y we r e at t r act ed t owar ds pol i t i cs . The r es ul t was
t hat ver y f ew young men got attracted towards becoming efficient, industrialists,
technicians, managers etc.

Colonial Rules:
- The British rulers adopted discriminatory policy Rich Indian businessman had special
connections with foreign rulers and both satisfied their self interests. Even the few
insurance and banking services catered to the needs of some rich Indian businessman, Britishers in
India did also not encourage Industrialization.

Managing Agents:
- T h e r e we r e j u s t a h a n d f u l o f p e o p l e wh o we r e known to be having managerial
skills. On common basis, these agents would lend their skills to some top industries. Industrialists could
not manage their own units. They were always at the mercy of the managing agents who filled T h e i r
p o c k e t s wi t h b i g c h u n k s o f t h e c o mp a n i e s p r o f i t s a n d t o o k f u l l advantage of
Indian industrialists till the managing agency system was abolished in 1970.6.

Joint Family System:
- Younger members of the family always depended on the Head who never gave any kind of independence
or encouraged units other than family business ones. A number of young men were discouraged f r om
di ver s i f yi ng f r om f ami l y bus i nes s and doi ng s omet hi ng new a nddifferent.7.

Religious attitude:
- Indians were very religious mi9nded. They gave more time to religion than to earning
material wealth. Religion got priority o v e r b u s i n e s s . S o me r e l i g i o n s e v e n
c o n d e mn e d e x c e s s e a r n i n g s a n d indulgence I in comforts. Industrial activity was, therefore,
given secondary consideration by the religious Indians.8.

Mindset:
- The mindset of the average Indian was never entrepreneurial. Our religious literature and epics
told us to have patience and to keep on working without expecting the fruits of labor. This also
killed the drive and desire to get into entrepreneurial activities.9.

Recognition by the society:
- In earlier days, the heroes India were the social reformers and the politicians. Now it is
the era of sportsmen, models and film stars. It is sad that successful or the struggling
entrepreneurs have never been recognized as heroes. Entrepreneurial activity did not get due
importance in the India society.10.

Family Background:
- E mp i r i c a l s t u d i e s h a v e s h o wn t h a t a g o o d number of entrepreneurs come from
families with industrial backgrounds. Unf or t unat el y, onl y a f ew ent r epr eneur i al
communi t i es i n I ndi a made ent r epr eneur i al cont r i but i on. Thes e communi t i es
coul d al s o not make headway in the entrepreneurial field on account of the colonial rule, lack
of infrastructure and other facilities. Entrepreneurship development could only take place after
independence in India

ENTREPRENEUR Vs MANAGER
The main reason for an entrepreneur to start a business enterprise is because he comprehends the venture
for his individual satisfaction and has personal stake in it where as a manager provides his services in an
enterprise established by someone.

An entrepreneur and a manager differ in their standing, an entrepreneur is the owner of the organization
and he bears all the risk and uncertainties involved in running an organization where as a manager is an
employee and does not accept any risk.

An entrepreneur and a manager differ in their objectives. Entrepreneurs objective is to innovate and
create and he acts as a change agent where as a managers objective is to supervise and create routines. He
implements the entrepreneurs plans and ideas.

An entrepreneur is faced with more income uncertainties as his income is contingent on the performance
of the firm where as a managers compensation is less dependent on the performance of the organization.

An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A manager
may cheat by not working hard because his income is not tied up to the performance of the organization.

Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive,
innovative thinking, forethought, risk-bearing ability etc. Conversely its mandatory for a manager to be
educated in the fields of management theories and practices.

An entrepreneur deals with faults and failures as a part of learning experience where as a manager make
every effort to avoid mistakes and he postpones failure.

An entrepreneur could be a manager but a manager cannot be an entrepreneur. An entrepreneur is
intensely dedicated to develop business through constant innovation. He may employ a manager in order
to perform some of his functions such as setting objectives, policies, rules etc. A manager cannot replace
an entrepreneur in spite of performing the allotted duties because a manager has to work as per the
guidelines laid down by the entrepreneur.
ENTREPRENEURIAL DECISION PROCESS
Entrepreneurial Decision Process is about deciding to become an entrepreneur by leaving present
activity i.e. a movement from the present lifestyle to forming a new enterprise. The decision to start a new
company occurs when an individual perceives that forming a new enterprise is both desirable and
possible.
The decision to become an entrepreneur to start a new business consist of several sequential steps-
1. The decision to leave a present career or lifestyle (Pushing and pulling influences active in the decision
to leave a present career or lifestyle
2. The decision about desirability of new venture formation i.e. the aspects of a situation that make it
desirable to start a new venture and this relates to culture, subculture, family, teachers and peers.
3. The decision about possibility of new venture formation i.e. factors making it possible to create a new
venture like government, background, marketing, financial, role models.
Desirability of New Venture Formation :- (Aspects of a situation that make it desirable to start a new
company)
1. The perception that starting a new company is desirable results from an individuals culture, subculture,
family, teachers and peers.
American culture places a high value on being your own boss, being a success and making money
therefore, it is not surprising to find a high rate of company formation in the United States.
On the other hand in some countries making money is not as valued and failure may be a disgrace. The
rate of business formation in these countries is not as high.
2. Many subcultures that shape value systems operate within a cultural framework.
In the U.S. they include Route 128 (Boston), Silicon Valley (California), and North Carolina Triangle.
In India they include Marwari, Gujrati, and Rajasthani Businessmen.
These subcultures support and even promote entrepreneurship.
3. Studies indicate that a high percentage of founders of companies had fathers and/or mothers who valued
independence.
4. Encouragement to form a company is also gained from teachers, who can significantly influence
individuals.
5. An area having a strong educational base is also a requirement for entrepreneurial activity.
6. Peers are important, also, as is an area with an entrepreneurial pool and peer-meeting place.
Possibility of New Venture Formation : - (Factors making it possible to create a new venture)
Although the desire of new venture formation derived from the individuals culture, subculture, family,
teachers and peers needs to be present before any action is taken, the second feature necessary centers
around this question What makes it possible to form a new company?
1. The government contributes by providing the infrastructure to help a new venture.
The India has the necessary roads, communication and transportation systems, utilities, and Economic
stability.
The Indian tax rate for companies and individuals is better than in some European countries.
2. The entrepreneur must have the necessary background.
Formal education and previous business experience give a potential entrepreneur the skills needed to
form and manage a new enterprise.
Although educational systems are important in providing the needed business knowledge, individual
will tend to be more successful in forming in fields in which they have worked.
3. The market must be large enough and the entrepreneur must have the marketing know-how to put
together the entire package.
4. The entrepreneur must have the marketing know-how to put together the entire package.
5. A role model can powerfully influence the perception of venture possibility.
6. Finally, financial resources must be readily available.
Although most start-up money comes from personal savings, credit, and friends, but there is often a
need for additional capital.
Risk-capital availability plays an essential role in the development and growth of entrepreneurial
activity.
ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Entrepreneur

An entrepreneur can be regarded as people who has the initiative skill and motivation to set up a business
or enterprise of his own and who always look for high achievements. He is the catalyst for social change
and works for the common good. They looks for opportunities, identifies them and seizes them mainly for
economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing
to to undertake risks in order to achieve their goals.

NEED FOR ENTREPRENEURSHIP DEVELOPMENT

Economic development essentially means a process of upward change whereby the real pr capita income
of a country increases over a period of time .Entrepreneurship has an important role to play in the
development of a country. It is one of the most important inputs in economic development. The number
and competence of entrepreneurs affect the economic growth of the country.

The economic history of the presently advanced countries like USA, Russia and japan supports the fact
that economic development is the outcome for which entrepreneurship is an inevitable cause. The crucial
and significant role played by the entrepreneurs in the economic development of advanced countries has
made the people of developing and under developed countries conscious of the importance of
entrepreneurship for economic development. It is now a widely accepted fact that active and enthusiastic
entrepreneurs can only explore the potentials of the countries availability of resources such as labour,
capital and technology.

The role of entrepreneurs is not identical in the various economies. Depending on the material resources,
industry climate and responsiveness of the political system, it varies from economy to economy. The
contribution of entrepreneurs may be more in favorable opportunity conditions than in economies with
relatively less favorable opportunity conditions.

ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

Entrepreneurship helps in the process of economic development in the following ways:

(1) Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ their own
as well as borrowed resources for setting up their enterprises. Such types of entrepreneurial activities lead
to value addition and creation of wealth, which is very essential for the industrial and economic
development of the country.
(2) Creates Large-Scale Employment Opportunities:
Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem
of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small
and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow,
providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an
effective role in reducing the problem of unemployment in the country which in turn clears the path
towards economic development of the nation.
(3) Promotes Balanced Regional Development:
Entrepreneurs help to remove regional disparities through setting up of industries in less developed and
backward areas. The growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc. A setting up of more industries leads to
more development of backward regions and thereby promotes balanced regional development.
(4) Reduces Concentration of Economic Power:
Economic power is the natural outcome of industrial and business activity. Industrial development
normally leads to concentration of economic power in the hands of a few individuals which results in the
growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be
developed, which will help reduce the concentration of economic power amongst the population.
(5) Wealth Creation and Distribution:
It stimulates equitable redistribution of wealth and income in the interest of the country to more people
and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also
generate more activities and give a multiplier effect in the economy.
(6) Increasing Gross National Product and Per Capita Income:
Entrepreneurs are always on the lookout for opportunities. They explore and exploit opportunities,,
encourage effective resource mobilization of capital and skill, bring in new products and services and
develops markets for growth of the economy. In this way, they help increasing gross national product as
well as per capita income of the people in a country. Increase in gross national product and per capita
income of the people in a country, is a sign of economic growth.
(6) Improvement in the Standard of Living:
Increase in the standard of living of the people is a characteristic feature of economic development of the
country. Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest
innovations in the production of wide variety of goods and services in large scale that too at a lower cost.
This enables the people to avail better quality goods at lower prices which results in the improvement of
their standard of living.
(7) Promotes Country's Export Trade:
Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic
development. They produce goods and services in large scale for the purpose earning huge amount of
foreign exchange from export in order to combat the import dues requirement. Hence import substitution
and export promotion ensure economic independence and development.
(8) Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximize profits by innovation. When
an enterprise is established in accordance with the changing technology, it induces backward and forward
linkages which stimulate the process of economic development in the country.
(9) Facilitates Overall Development:
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is
established, the process of industrialization is set in motion. This unit will generate demand for various
types of units required by it and there will be so many other units which require the output of this unit.
This leads to overall development of an area due to increase in demand and setting up of more and more
units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment
of enthusiasm and conveying an impetus for overall development of the area.

SOCIAL RESPONSIBILITIES OF ENTRPRENEURS
As citizens of the country we are born from, it is our responsibility to obey the laws of our country. It is
likewise our responsibility to help our neighbors whenever they need help. As responsible citizens, it is
our duty to vote during election time. We respect human dignity whether the person is white or black
whether schooled or unschooled or whether rich or poor.
When we become entrepreneurs are we still responsible to our fellowmen, to our community and to our
country? In our desire to maximize profits, are we going to cheat our customers, exploit our employees,
and dump our wastes into the air, water and land? All of these things are the opposite of social
responsibility. As a result, we have adulterated products, aside from wrong weights and measurements.
Many of our workers are underpaid. Our environment is being destroyed or polluted.
The concept of social responsibility has various meanings to different individuals. For instance, to a
banker, his social responsibility is to lend money even to the poor producers, and not only to the rich ones.
To manufacturers, their social responsibility is to create quality products, and not to pollute the
environment. For instance, if you are manufacturing a huge number of print postcards in your digital
printing plant, make sure that your trash and other wastes are properly disposed and not just thrown to
rivers and seas. More so, to the rich their social responsibility is to share their excess wealth with less
fortunate.
What exactly is the social responsibility of the entrepreneur or businessman to his customers, suppliers
and stockholders, fellow businessmen, government, to the community and to his employees? Such
business relationships are measured by fairness, honesty and justice.
The entrepreneur must sell quality products at fair price. He must also be fair with his suppliers by paying
them on time as agreed upon. He must pay the correct amount of taxes to the government. He must
promote the welfare of his employees. He must observe business ethics with his fellow businessmen.
Equally important is the social responsibility of the entrepreneur to his community in terms of job creation
and environmental observation.

OPPORTUNITIES FOR ENTREPRENEURS IN INDIA AND ABROAD
There is certainly no formula to become a successful entrepreneur. Some may succeed and make good
profits, others sink along the way. Which are the most lucrative sectors for entrepreneurs? Here's a list of
20 good opportunities entrepreneurs can look at...
1. Tourism
Tourism is a booming industry in India. With the number of domestic and international tourists rising
every year, this is one hot sector entrepreneurs must focus on. India with its diverse culture and rich
heritage has a lot to offer to foreign tourists. Beaches, hill stations, heritage sites, wildlife and rural life,
India has everything tourists are looking for.
But this sector is not well organized. India lacks trained professionals in the tourism and hospitality
sectors. Any business in this sector will thrive in the long run as the demand contuse to grow every year.
Foreign tourist arrivals during January-March were 15.63 lakh with a growth rate of 12.8 percent,
compared to 13.86 lakh during the first three months last year.
2. Automobile
India is now a hot spot for automobiles and auto-components. A cost-effective hub for auto components
sourcing for global auto makers, the automotive sector is potential sector for entrepreneurs. The
automobile industry recorded a 26 per cent growth in domestic sales in 2009-10. The strong sales have
made India the second fastest growing market after China. India being one of the world's largest
manufacturers of small cars with a strong engineering base and expertise, there are many segments that
entrepreneurs can focus on in India's automobile and auto components sector.
3. Textiles
India is famous for its textiles. Each state has its unique style in terms of apparels. India can grow as a
preferred location for manufacturing textiles taking into account the huge demand for garments. Places
like Tirupur and Ludhiana are now export hubs for textiles. A better understanding of the markets and
customers' needs can boost growth in this sector.
4. Social ventures
Many entrepreneurs are taking up social entrepreneurship. Helping the less privileged get into
employment and make a viable business is quite a challenge. There are many who have succeeded in
setting up social ventures. With a growing young population in rural areas who have the drive and
enthusiasm to work, entrepreneurs can focus on this segment.
5. Software
India's software and services exports are likely to rise with export revenue growth projected at 13 to 15
percent to hit about $57 billion by March 2011.
With one of the largest pool of software engineers, Indian entrepreneurs can set higher targets in hardware
and software development.
The information technology enabled services have contributed substantially to the economy. With more
companies outsourcing contracts to India, business to business solutions and services would be required.
Entrepreneurs can cash in on the rise in demand for these services with innovative and cost effective
solutions.
6. Engineering goods
India continues to be one of the fastest growing exporters of engineering goods, growing at a rate of 30.1
per cent. The government has set a target of $110 billion by 2014 for total engineering exports.
Entrepreneurs must capitalise on the booming demand for products from the engineering industry.
7. Franchising
India is well connected with the world. Hence, franchising with leading brands who wants to spread across
the country could also offer ample opportunities for young entrepreneurs. With many small towns
developing at a fast pace in India, the franchising model is bound to succeed.

8. Education and Training
There is a good demand for education and online tutorial services. With good facilities at competitive
rates, India can attract more students from abroad. Unique teaching methods, educational portals and tools
can be used effectively to make the sector useful and interesting.
9. Food Processing
India's mainstay is agriculture. Entrepreneurs can explore many options in the food grain cultivation and
marketing segments. Inefficient management, lack of infrastructure, proper storage facilities leads to huge
losses of food grains and fresh produce in India.
Entrepreneurs can add value with proper management and marketing initiatives. The processed food
market opens a great potential for entrepreneurs be it fast food, packaged food or organic food. Fresh
fruits and vegetables too have a good demand abroad. A good network of food processing units can help
potential exporters build a good business.
10. Corporate demands
There will be a good demand for formal attire with more companies opening their offices in India. People
who can meet this demand in a cost effective way can make a good business. With corporate gifting
getting very popular, this is also a unique business to explore.
11. Ayurveda and traditional medicine
India is well known for its herbal and ayurvedic products. With increasing awareness about the ill-effects
allopathic medicines, there will be a huge demand for cosmetics, natural medicines and remedies.
12. Organic farming
Organic farming has been in India since a long time. The importance of organic farming will grow at a
fast pace, especially with many foreigners preferring only organic products. Entrepreneurs can focus on
business opportunities in this sector. There are many small-time farmers who have adopted organic
farming but the demand is still unmet, offering many opportunities for those who can promote organic
farming on a large scale.
13. Media
The media industry has huge opportunities to offer young entrepreneurs. With the huge growth of this
segment, any business in this field will help entrepreneurs reap huge benefits. Television, advertising,
print and digital media have seen a boom in business.
Digitisation, regionalisation, competition, innovation, process, marketing and distribution will drive the
growth of India's media and entertainment sector, according to Ficci.

14. Packaging
With China invading the markets with cheap plastic goods and packaging materials, there is a good
opportunity to develop good packaging materials to meet domestic and foreign demand. There is a huge
demand various sectors like agriculture, automotive, consumer goods, healthcare infrastructure and
packaging sectors for plastics.
15. Floriculture
India's floriculture segment is small and unorganized. There is a lot to be done in this lucrative sector. The
global trade in floriculture products is worth $9.4 billion. With a 8 per cent growth, it is expected to grow
to $16 billion by 2010. India's share in world trade is just 0.18 per cent.
This is a huge market to be tapped considering the rising demand for fresh flowers. More awareness and
better farming and infrastructure can boost exports.
16. Toys
Another evergreen industry is toy manufacturing. India has potential to manufacture cost effective and
safe toys for the world. With Chinese toys being pulled up for toxins, the market for safe and good quality
toys beckons Indian entrepreneurs.
17. Healthcare sector
India's healthcare sector is dismal. The private sector can play a vital role in developing this sector. With
medical tourism also gaining momentum, the sector can attract foreigners who are looking for cost
effective treatment in countries like India.
18. Biotechnology
After the software sector, biotechnology opens a huge potential. Entrepreneurs can look at a plethora of
options with the application of biotechnology in agriculture, horticulture, sericulture, poultry, dairy and
production of fruits and vegetables.
19. Energy solutions
In a power starved nation, the need to develop cost effective and power saving devices is gaining more
significance. There is a huge demand for low-cost sustainable energy saving devices as well.
The government has already unveiled the National Solar Mission which has set a target of 20,000 MW of
solar generating capacity by the end of the 13th Five Year Plan.
Prime Minister Manmohan Singh had urged the industry to see the huge business opportunity and set up
'Solar Valleys' on the lines of the Silicon Valleys. These solar valleys can become hubs for solar science,
solar engineering and solar research, fabrication and manufacturing. So there is a big opportunity for
entrepreneurs in this sector as well.
20. Recycling business
E-waste will rise to alarming proportions in the developing world within a decade, with computer waste in
India alone to grow by 500 per cent from 2007 levels by 2020, according to a UN study. This sector opens
a viable business opportunity for entrepreneurs in terms of e-waste management and disposal.

WOMEN ENTREPRENERUSHIP
Women entrepreneurship has been recognized as an important source of economic growth. Women
entrepreneurs create new jobs for themselves and others and also provide society with different solutions
to management, organization and business problems. However, they still represent a minority of all
entrepreneurs. Women entrepreneurs often face gender-based barriers to starting and growing their
businesses, like discriminatory property, matrimonial and inheritance laws and/or cultural practices; lack
of access to formal finance mechanisms; limited mobility and access to information and networks, etc.

Womens entrepreneurship can make a particularly strong contribution to the economic well-being of the
family and communities, poverty reduction and womens empowerment, thus contributing to the
Millennium Development Goals (MDGs). Thus, governments across the world as well as various
developmental organizations are actively undertaking promotion of women entrepreneurs through
various schemes, incentives and promotional measures.

WOMEN AS AN ENTREPRENEUR
Women entrepreneurs can be defined as the women or a group of women who takes initiative to
set up a business enterprise and run it smoothly. According to the government of India, a women
entrepreneur is defined as an enterprise owned and controlled by a woman and having a minimum
financial interest of 51 percent of the employment generated in the enterprise to women. This definition
has been criticized by many on the ground that the condition of employing more than 50 percent women
workers in the enterprises owned and run by the women is discrimination.
In fine, women entrepreneurs are those women who generate business ideas or select the best
opportunity, mobilize resources, combine the factors of production, undertake risks and operate the
enterprise in the most effective manner with a view to earning profit.


EMPOWERMENT OF WOMEN
The verb empowers means to bestow power. So empowerment of women implies creating
conditions for enabling the women to be motivated for task accomplishment by taking personal
responsibility. In the context of empowerment through enterprise, empowerment of women involves
access to resources and markets, actual ownership and control. These three factors act as the bull work for
empowering women through enterprise.
The essence of self-development and empowerment of women lies in self-concept of women
which can be developed through the following competency-development exercises:
I. Self-concept which implies discovering ones potential.
II. Self-identity which relates to the exercise who am I.
III. Self-evaluation which indicates self-confidence and self-respect, i.e. what am I worth.
IV. Self-idea which reveals what should I be and what I could become.

PROBLEMS FACED BY INDIAN WOMEN ENTREPRENEURS
Lack of confidence In general, women lack confidence in their strength and competence. The
family members and the society are reluctant to stand beside their entrepreneurial growth. To a
certain extent, this situation is changing among Indian women and yet to face a tremendous change
to increase the rate of growth in entrepreneurship.

Socio-cultural barriers Womens family and personal obligations are sometimes a great barrier for
succeeding in business career. Only few women are able to manage both home and business
efficiently, devoting enough time to perform all their responsibilities in priority

Market-oriented risks Stiff competition in the market and lack of mobility of women make the
dependence of women entrepreneurs on middleman indispensable. Many business women find it
difficult to capture the market and make their products popular. They are not fully aware of the
changing market conditions and hence can effectively utilize the services of media and internet.

Motivational factors Self motivation can be realized through a mind set for a successful business,
attitude to take up risk and behaviour towards the business society by shouldering the social
responsibilities. Other factors are family support, Government policies, financial assistance from
public and private institutions and also the environment suitable for women to establish business
units.

Knowledge in Business Administration Women must be educated and trained constantly to
acquire the skills and knowledge in all the functional areas of business management. This can
facilitate women to excel in decision making process and develop a good business network.

Awareness about the financial assistance Various institutions in the financial sector extend their
maximum support in the form of incentives, loans, schemes etc. Even then every woman
entrepreneur may not be aware of all the assistance provided by the institutions. So the sincere
efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward
areas.

Exposed to the training programs - Training programs and workshops for every type of
entrepreneur is available through the social and welfare associations, based on duration, skill and
the purpose of the training program. Such programs are really useful to new, rural and young
entrepreneurs who want to set up a small and medium scale unit on their own.

Identifying the available resources Women are hesitant to find out the access to cater their needs
in the financial and marketing areas. In spite of the mushrooming growth of associations,
institutions, and the schemes from the government side, women are not enterprising and dynamic to
optimize the resources in the form of reserves, assets mankind or business volunteers.

REMEDIES TO SOLVE THE PROBLEMS OF WOMEN ENTREPRENEURS
Finance Cells: In various public financial institutions and banks special cells may be opened for
providing easy finance to women entrepreneurs. These cells should be manned by women
officers and clerks. Efforts should be made to provide finance at the local level. Finance to
women entrepreneurs may be provided at confessional rates of interest and on easy repayment
basis.

Marketing Cooperatives: Encouragement and assistance should be provided to women
entrepreneurs for setting up cooperatives. These cooperatives will pool the inputs of women
enterprises and sell them on remunerative prices. Such cooperatives will help to eliminate the
middlemen. Central and State Governments should give priority to women entrepreneurs while
purchasing for their requirement.

Supply of Raw Materials: Scarce and imported raw materials may be made available to women
entrepreneurs on priority basis. A subsidy may also be given to make the products
manufactured by women entrepreneurs cost competitive.

Education and Awareness: It is necessary to change negative social attitudes towards women.
Elders, particularly, mothers and mothers-in law need to be made aware of the potential of
girls and their due role in society. Unless the social attitudes are made positive not much
progress can be made by women entrepreneurs.

Training Facilities: Training and skills are essential for the development of entrepreneurship.
Training schemes should be so designed that women can take full advantage. Family members
do not like women to go away to far off places for training. Therefore, mobile training centres
should be arranged. Similarly, pan time training facilities, especially during afternoons will
attract more women to acquire skills. Additional facilities like stipend, good hygienic crches,
transport facilities, etc. should be offered to attract more and more women to the training
centres.

OPPORTUNITIES FOR WOMEN ENTREPRENEURS
Highly educated, technically sound and professionally qualified women should be encouraged
for managing their own business, rather than dependent on wage employment outlets. The unexplored
talents of young women can be identified, trained and used for various types of industries to increase the
productivity in the industrial sector. A desirable environment is necessary for every woman to inculcate
entrepreneurial values and involve greatly in business dealings. The additional business opportunities that
are recently approaching for women entrepreneurs are:

Eco-friendly technology

Bio-technology

IT enabled enterprises

Event Management

Tourism industry

Telecommunication

Plastic materials

Mineral water

Sericulture

Floriculture

Herbal & health care

Food, fruits & vegetable processing






LETS TAKE A PEEP IN TO THE LIVES OF SOME OF THE MOST SUCCESSFUL WOMEN
TODAY AND LEARN AND GET INSPIRED FROM THESE WONDER WOMEN, WHO
EPITOMIZE PURPOSE, STRENGTH AND EMPOWERMENT.

Dr. Kiran Mazumdar Shaw, CEO, Biocon: Founder of Indias Largest Biotech Company to
produce Biocons first proprietary drug, for Head and Neck Cancer. Decorated with Padamshri in
1989 and Padam Bhushan in 2005.

Ekta kapoor, creative head of Balaji telefilms is the daughter of actor Jeetendra. Ekta dominates
Indian television, producing more than eight television soaps. At the 6
th
Indian Tele Awards 2006,
she bagged the Hall of Fame Award for her contributions.

Mrs Sulajja Firodia Motwani, Joint Managing Director, Kinectic Engineering and MD Kinetic
Finance.

Ms. Anuradha Desai, Chairperson: Venkateshwara Hatcheries Second largest company producer
of eggs in the world.

Ms. Vidya Chhabria, Chairperson: Jumbo Group

Ms. Ritu Kumar: The diva of Indian Fashion; One of the earliest and most famous designers of
India. She has been in the Fashion Designing Business since 1977. She has pioneered the term
fashion in the Indian Context, and more importantly, has demonstrated that hand made products
can be as profitable and even more glamorous than those made by machine