SYNERGY: I.T.S. Journal of I.T.

& Management
Volume 3, Issue No. 2 July 2005

Entrepreneurship Development: A Revisit

M. S. Chhikara*
Abstract
The creation of new business organizations is an exercise of laying foundation for
economic prosperity. It is the dynamic entrepreneurship that evolve, reform, and
reinvent itself and thereby bring socio-economic development. The study of this
evolutionary process has occupied the minds of scholars as well as development
planners for centuries. While the former concentrates on conceptualization of theories the
later focuses on actual doing of entrepreneurship. Academics are racing to keep up
with theories to explain many of these new phenomena. Practitioners arc often leading
the way with innovations, inventions, new combinations, new markets, and new
products and services.

Concept:

People who own, operate and take risk of a business venture are called
entrepreneurs.
Entrepreneurship development and economic growth have circular
relationship. Both propel each other. Entrepreneurs expand, diversify and
modernise economic functioning. In return, economic development broadens
and sharpens entrepreneurial skills.
Entrepreneurship has nothing to do with the size / age of the enterprise, nor it
is confined solely to economic institutions. Entrepreneurs innovate, identify
opportunities and create value in a new or a different way.
History of entrepreneurship is as old as the history of economic thought. In ancient
Rome, it were the entrepreneur s who sought wealth and prestige from land
holdings, usury and political payments. In medieval China they were drawn to
passing Imperial examination and earlier, in Middle Ages, military activity served as
an entrepreneurial path to both prosperity and social standing. J. A. Schumpeter
called him innovator. Economists like W.A. Lewis and E.E. Hagen and
behavioural scientists such as David C. Mc Clleland have underlined the
entrepreneur as a critical factor. Kirzner and Leibenstein called them agents of
wealth creation and equilibrating agent. J.B. Say called the entrepreneur as
coordinator or combiner of resources. R Cantillon called uncertainty bearer. F.B.
"The author is Associate Professor, Management Development Institute, Gurgnon.

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Entrepreneurship Development: A Revisit

M. S. Chhikara

Hawley called him owner of the output and F. Knight called him decision - maker
under uncertainty. According to Drucker, entrepreneurs create something new,
something different; they change or transmute values. :
"Entrepreneurship is the pursuit of opportunity beyond resources you
correctly control" (Stevenson 1983; Stevenson and Gumpert 1985; Stevenson
and Jarillo - Mossi 1990).

The fundamental problem in developing countries is, therefore, not so much o f

the creation of wealth but the capacities to create wealth towards
strengthening, widening and improving the absorptive capacity of the
country.

Types of Entrepreneurs
Innovative Entrepreneurs - Who introduce new goods, method of production,
discover new market or work differently.
Imitative Entrepreneurs - W h o i m i t a t e i n n o v a t i o n s , t e c h n i q u e s a n d
technologies innovated by others.
Fabian Entrepreneurs - Who are highly cautious and follow change only
when it becomes clear that not following change will affect their business
adversely.
Drone Entrepreneurs - Who may suffer loss but are not ready to make changes in
the existing methods.
Solo Operators - Who work alone or employ very few employees.
Active Partners - Who work better in partnership rather than alone.
Challengers - Who always look for new challenges.
Buyers - who do not like to bear much risk. Instead of manufacturing they go
for trading.
Lifetimers - Who take business as an integral part of their life.

Features of Successful entrepreneurs

According to David C. McClelland, entrepreneurs can become high achi evers
striving for excellence by adopting one or more than one of the following
approaches: (i) Self imposed standards of excellence; (ii) Competing with others
against standards of excellence; (iii) Unique accomplishment; and (iv) Long - term
involvement in activities of excellence.
For this, they design a 'strategy - culture grid', matching strategy parameters
(customers, competitors, and enterprises) with culture parameters (commitment,
competence, and consistency) adopting all sorts of permutations and
comb inations within this matching grid. In addition, these entrepreneurs acquire

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Synergy: I. T.S. Journal of IT and Management - Vol. 3. No. 2

the 'six new age skills' creative insight, sensitivity, vision, versatility, focus and
patience.
Successful entrepreneurs clearly understand that excellent enterprises are adaptive
in nature and are innovative in approach. These entrepreneurs make it a habit to
adhere to the eight attributes of excellence, viz. (i) A bias for action; (ii) Close to
the customers; (iii) Autonomy and entrepreneurship; (iv) Productivity through
people; (v) Hands on, value driven: (vi) Stick to the knittings; (vii) Simple form,
lean staff, and (viii) Simultaneous loose-tight properties. These eight attributes
have been found as parameters of excellence by Peters and Waterman (1982) in
their bestseller 'In Search of Excellence'.
Leonard L. Berry in his recently published book, Discove ring the Soul of Service,
pointed out seven core values shared by the successful entrepreneurs - excellence,
innovative, joy, team work, respect, integrity and social profit.
Excellence they are strong profit makers, but profit is not the defining value, it
is rather an outcome. Pursuit of excellence is the defining value.
Innovation Innovation and excellence are inextricably linked. Changing
what exists into something better is the defining value.
Joy uplifting human spirit. Bringing human potential into full flower and
celebrating achievement are part of being successful.
Teamwork Individuals collaboratively pooling their resources for a common
purpose is the normal style for enriching quality of work life.
Respect Respect for the customer. Respect for the employee. Respect for
suppliers and business partners. Respect for the community.
Integrity The entrepreneur must ensure that he maintains his credibility.
Integrity is just like a bank account which keeps on increasing and decreasing.
To have better integrity do small promises and keep those promises. This
strengthens integrity.
Social Profit Which beyond the marketing of goods and services and creating
employment causes benefit to the larger community.
Stephen Covey highlighted seven habits in his bestselling book, Seven Habits of
Highly Effective People:
(i)

Be proactive and own responsibility;

(ii)

Begin with the end in mind;

(iii)

Put the first things first;

(iv)

Think win- win;

(v)

Seek first to understand then to be understood;

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Entrepreneurship Development: A Revisit

M. S. Chhikara

(vi) Synergize, and

(vii) Sharpen the saw and carry on continuous personal and organizational
improvement.
For better quality of life in one's enterprise, the entrepreneur must stick to the
four True North Principles: adopt humility, courage and pride, and avoid
arrogance in the day-to-day working of your enterprise. The four human
endowments are: Self -awareness, conscience, independent will and creative
imagination, and these need to be used at their optimal levels for the upliftment of
the enterprise and its people. Entrepreneurs must nurture these unique gifts by
doing the following:
(i)

Nature self-awareness by keeping a personal journal;

(ii)

Educate your conscience by learning and responding;

(iii) Win the battle of conscience by being true and honest to yourself;
(iv) A life of total integrity is only one's own worth striving for;
(v) Nurture your independent will by making and keeping small promises,
(vi) Develop creative imagination through visualization of eminent personalities and
the great performers.
By adhering to the True North principles, one as an entrepreneur can have a
better quality of life for oneself and the people, and help one's enterprise flourish
in a competitive environment.
Entrepreneurs must understand that of the 7Ms of enterprise resources (men,
money, machines, materials, minutes, MIS, and methods) "time (minutes) is the
scarcest resource and unless it is managed, nothing else can be managed." says
Peter Drucker. Fifteen time wasters revealed by a survey of 100 entrepreneurs
are arranged in three categories.
Category I includes top five time wasters, viz. (i) Telephone interruptions; (ii)
Drop-in visitors; (iii) Meetings (both sche duled and unscheduled); (iv) Crises,
and (v) Lack of objectives, priorities and deadlines.
Category II includes another group of five time-thieves, viz. (vi) Clurtered desk
and personal disorganization; (vii) Ineffective delegation and involvement in
routine and detail; (viii) Attempting too much at once, and unrealistic time
estimates; (ix) Lack of, or unclear communication or instructions, and (x)
Inadequate, inaccurate and delayed information.
Finally, category III encompasses other five time wasters, viz. (xi) Indecision and
procrastination; (xii) Confused responsibility and authority; (xiii) inability to say
'no'; (xiv) leaving tasks unfinished, and (xv) Lack of self-discipline.

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Synergy : I.T.S. Journal of IT and Management - Vol. 3. No. 2

Ten Top Axioms for successful business leaders

1.

2.
3.
4.

5.
6.
7.
8.

Do the normal, sensible things first by providing marketable products,

looking after management personnel and customers, and checking the ill.
That is, do the obvious by getting back to the basics.
Change the criteria for selecting managers and employees keeping in view of
enterprise objectives.
Realize the importance of the lowest levels of the enterprise people.
Take rapid decisions keeping three phrases in mind: Recognize what is
needed early, then accelerate the decision making process and finally
implement the decisions quickly.
Soberly estimate the possibilities of streamlining and subsequently
implementing the measures.
Do not overlook renovation in addition to innovation. Apply innovation to
management, leadership and enterprise, as well as to products.
Remember that communication as a means to an end is the key. Of course,
actions and facts are more convincing than mere words.
Establish good relations with your people in the enterprise even though the
ideal of peace is unlikely.

9.

Implement a new style of management and new kinds of relations with

employees based on management commitment, employee empowerment,
and involvement.

10.

And last, but certainly not the least, the most important single axiom for
entrepreneurs is: Be credible and consistent in word and deed.

Thus a 'star' entrepreneur has the following qualities which facilitate success of
his enterprise:
A very good decision maker.
A good leader.
A consistent hard worker.
Trust employees.
Zealous to create wealth, more wealth and endless wealth.
Good Organiser.
A good communicator.
Creator & distributor of surplus wealth among employees & stakeholders.
Having strong determination to achieve and succeed, and convert his cherished
dreams into reality.
Very simple and at a minimal level of stress.

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Entrepreneurship Development: A Revisit

M. S. Chhikara

Some Empirical Observations:

Entrepreneurship flourishes in communities where resources are mobile.

Entrepreneurship is greater when successful members of a community

reinvest excess capital in the projects of other community members.

Entrepreneurship flourishes in communities in which the success of other

community members is celebrated rather than derided.

Entrepreneurship is greater in communities that see change as positive

rather than negative.
Intellectual capital, human capital, and public capital in the form of
infrastructure and social norms provide even more important resources to
the entrepreneur.

There is positive linkage between Entrepreneurship and economic prosperity.

Entreprene urship is instrumental in achieving progress in all walks of life.

Entrepreneurship can be developed through planned training intervention /

efforts.

Entrepreneurship is a process consisting of stimulatory, support and

sustaining activities.

It requires to be viewed in terms of integration of activities and coordination

among different departments.

Entrepreneurial culture needs to be an in-built mechanism of development

process.

Promotion and development of entrepreneurship is more developmental in

nature and is not administrative or target-oriented.

Accumulated experience has brought maturity in approaches and strategy

of developing entrepreneurship.

A set of competencies has already been identified to help people become

entrepreneurs. These competencies could be developed through training
intervention.

Competencies could be broadly grouped as:

Behavioural.

Enterprise launching and resourcing.

Enterprise management.

New economic opportunities are identified and available which may be

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Synergy : l.T.S. Journal of IT and Management - Vol. 3, No. 2

integrated in entrepreneurship development programs.

Micro enterprise creation and development through micro-finance has

shown a very significant result.

Need for Entrepreneurship Development

There is paradigm shift in economic environment from 'protectionism' to 'freedom';
from 'public' to 'private' ownership, from 'local' to 'global' market. The environment is
full of opportunities & challenges with following emerging features:

Highly Competitive Market in nature and global in scope.

Competition between public & private sector as well as large and small sector
with emphasis on privatisation.

Quality consciousness and standardization of products.

Fast changing Technology - everyone connected to everything anywhere.

Increasing Financial / Technological Collaborations.

Liberalization in policy & action with emphasis on self-sustenance.

Health/Hygiene & environment consciousness.

In the fast changing world the number as well as quality of entrepreneurship will
determine the future course of economic development.
Composition of entrepreneurs has become broad-based. They come from all
types of background and own all kinds of business.
The growing awareness of the need for and urgency of building
"entrepreneurs" for the attainment of accelerated and self sustained
economic growth could be ascribed to two factors.

1.

2.

The belief is gaining ground that economic growth in the advanced countries appears
to be attributable to entrepreneurial awareness in the community rather than to
capital.
Investment in human resources has directly contributed to economic
development and growth, by promoting the knowledge and application of science
and technology to production process, developing innovations and research,
training the workers in different technical skills needed for modern production and
building up of the right type of attitude, values and interests conducive to right
output.

Deliberate efforts are made to develop entrepreneurship.

Entrepreneurship development is an approach of developing human

resources. It is concerned with the growth and development of people

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Entrepreneurship Development: A Revisit

M. S. Chhikara

towards high level of competency, creativity and fulfilment. This approach

helps people to grow in self control, responsibility and other abilities.
Entrepreneurship Development as an a pproach does not confine itself in
setting up enterprises but surpasses this limit in creating conducive climate
for optimum utilization of scarce and scattered resources and making people
functional in all walks of life.

Perspectives:
Entrepreneurship pro motion has to be more and more trade - specific, or product/
process- specific, based on its relevance in different regions. From the generalist
approach, entrepreneurship development institutions have to switch over to a
more specialised role for training in dividual entrepreneurs or for developing/
equipping teams of entrepreneurs to take up ventures in groups in specialised
product lines. The movement depends on the extent of technology absorption
and adaptation in small enterprises.
N o n- governmental organisastions (NGOs) should be involved in a massive way to
supplement the efforts of the government in a sustained manner to improve the
living conditions of the vast rural masses through income generating
enterprises. NGOs associated with these programmes have distinct advantages of
being close to people in the planning and implementation of programmes.
Support from the apex development financing institutions such as needs to be
mobilised for this purpose. Developing professional talent in NGOs through
sustained training and follow up efforts is necessary.
The tempo not only needs to be sustained and improved upon; it also needs to be
reoriented to meet the challenges of the competitive environment particularly in the
small enterprise sec tor. Emerging opportunities need to be focused upon.
Entrepreneurs have to keep in mind the growing complexities, and challenges of
the future.
<>
The motivation that makes a small enterprise to be competitive in its use of human
and material resources, needs to be brought out through the positive strategy of
collective efforts of people, productivity and profits. The capability to rise above
competition drives entrepreneurs to search for new ways of doing things, new
markets to op erate, and new products to offer. In the current day context, no
entrepreneur can escape competition. In this context, successful entrepreneurial
behaviour implies constant and continuous quest to be different, to perform better,
and to exert more to ensur e excellence. A successful entrepreneur must learn
and strive to set his/her own standard of excellence. Entrepreneurs may be able to
assess their strengths and weaknesses; become capable of maximising strengths and
making their weaknesses redundant. Thus, the major thrust of motivation needs to
undergo change from stimulatory to sustaining and growth orientation.
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Synergy: I.T.S. Journal of IT and Management - Vol. 3. No. 2

Entrepreneurship development efforts need to be focussed on economically lower

and less privileged population, who constitute a much wider population group.
The spread of education, particularly vocational education, skill development,
technological upgradation and managerial training and development of greater
awareness of economic and social opportunities, apart from the creation of better
infrastructural facilities in the environment in which they are placed, will enable
economically weaker sections utilize entrepreneurial opportunities, relevant to
their environme nt, much faster.
Self-employment programmes focussing on women, as individuals or as groups,
also provide very wide range of opportunities for women to take advantage of
the entrepreneurial direction. Mobilisation of women power for entrepreneurship
and empowerment calls for sustained efforts over a long period to ensure that
the coverage is sizeable in relation to the demand.
Emphasis in future periods cannot be limited to manufacturing type of enterprises
alone. Service sector, agro and other rural micro enterprises will demand
considerable attention because of the vast potential for dispersed pattern of
development. Promotion of entrepreneurship in rural areas and backward regions
has to be stressed to a great extent. The entrepreneurship development institutions
should gear themselves up to meet this challenge of downward vertical thrust.

Institutional Framework
A comprehensive institutional frame has been evolved over years for promoting
entrepreneurship and for guiding existing entrepreneurs at national, regional
and local levels. Organisations under the Ministry of Industry at the national
level and those created at the state levels cater to all categories of entrepreneurs
interested in setting up small enterprises. These include S & T entrepreneurs,
Women entrepreneurs and those belonging to weaker sections. Apart from
Ministry of Industry, Science and Technology, human Resource Development,
and other Ministries at the Centre are also involved in encouraging
entrepreneurship development efforts. A whole range of support services has
been created at the state level for helping existing an propsertive entrepreneurs.
Involvement of banks and other financial instutions at the spex and field level in
supporting entrepreneurship among existing and prospective entrepreneurs is
of a high order. For supporting special thrust and encouragement to first
generation S & T background entrepreneurs, the Department of S & T at the
national level has lauched a number of programmes from the early eighties. Role
and responsibility of technical educational institutions in innovation and
entrepreneurship for creating a techno -entrepreneurial society has been

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Entrepreneurship Development: A Revisit

M. S. Chhikara

emphasised. Entrepreneurship for creating a techno-entrepreneurial society has

been empahsised. Entrepreneurship training and management training
institutions and other educational organisations have been playing a key role in
popularising entrepreneurship as a career option and in providing the needed
support to first generation entrepreneurs.

Approach Differentiation
1. Development of human factor or the entrepreneur himself. It refers to the,
values, attitude, desire and motivation of individual, his capability to perceive
the environmental changes and opportunities as well as his ability to solve the
problem which entrepreneur is likely to face. All these qualities differ from country to
country or culture to culture and these differences are related to economic
growth.
2. Target oriented Approach: Entrepreneurship Development Programmes are
directed and planned for a specific group having distinguishing features. It is
because of the fact that target audience vary in terms of their background,
experiences, training and exposure to business world. Moreover, the size of the
proposed enterprise may also vary from one target group to others. These variations
demand for the matching training inputs with varying degree of intensity to
bring these entrepreneurs to the threshold from where they can launch their
enterprise and be able to manage them successfully. For this purpose, various
target groups may be identified like (i) General Entrepreneurs (ii) Science &
Technology Entrepreneurs, (iii) Women Entrepreneurs (iv) Educated unemployed
entrepreneurs etc.
3. Location Specific Approach: In order to reduce regional imbalances and the
imbalances that may exist between developed and developing areas, or urban,
rural, tribal, hill areas, it is of considerable importance to plan EDPs depending on
the characteristics of the area itself.
4. Integrated Approach: The entrepreneurial qualities, mentioned above, are
not inherited by a person rather acquired in the process of socialization in a
particular socio-economic culture. The whole process of Entrepreneurship
development can be seen as a process having three distinct phases as shown
below.

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Synergy: I.T.S. Journal of IT and Management - Vol. 3. No. 2

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

1.
2.
3.
4.
5.
6.
7.
8.
9.

Entrepreneurial Education.
Planned Publicity for Entrepreneurial Opportunities.
Identification of potential entrepreneurs through scientific method.
Motivational Training to new entrepreneurs.
Help and guidance in selecting products and preparing project reports.
Making available techno-economic information and project reports.
Evolving locally suitable new products and processes.
Availability of local agencies with trained personnel for entrepre neurial
counselling and promotions.
Creating entrepreneurial forum.
Recognition of entrepreneurs.
1. Registration of unit
2. Arranging Finance
3. Providing land, shed, power,
water etc.
4. Guidance for selecting and
obtaining machinery
Entrepreneurial
5. Supply of scarce raw
Development
materials
Cycle
6. Getting licences/Import licences
7. Providing
common facilities
8. Granting tax relief or other
subsidy
9. Offering management
consultancy
10. Help marketing product
11. Providing information
Help Modernization.
Help diversification/expansion/substitute production.
Additional financing for full capacity utilization.,
Deferring repayment/interest.
Diagnostic industrial extension/ consultancy source.
Production units legislation/policy change.
Product reservation/ creating new avenues for marketing.
Quality testing and improving services.
need based common facilities centre.

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Entrepreneurship Development: A Revisit

M. S. Chhikara

Each phase of activities mentioned above is highly interactive, supplementary

and crucial through which entrepreneurial activities flourish and grow.
5. Product and Process Oriented Approach: EDPs are organized for a group of
prospective entrepreneurs who opt for enterprises having a set product-line or
process such as plastic or electronics or construction materials of food technology
etc.
6. Training Intervention Approach
Training in entrepreneurship provides an impetus to the potential and budding
entrepreneurs to acquire a new identity about him. Th is is perceived as an
approach towards transforming people which serves the purpose of making them
aware of their own identity, help them accept a new identity and finally establish
such identity for entrepreneurial pursuit and thus, serving the purpose of
stimulation, orientation, preparation and implementation in a sequential order.
Approach of entrepreneurial training should have following salient features.
a)

Major focus on process of delivery.

b)

Ownership of learning by participant.

c)

Trainer as fellows learner/facilitator.

d)

Emphasis upon know-how and know- who.

e)

Participants generating knowledge.

f)

Session flexible and responsive to needs.

g)

Learning objectives negotiated.

h)

Mistakes to be learned from.

i)

Emphasis upon practice.

j)

Problem/multi-disciplinary.

Suggestions
The entrepreneurship developmental efforts in future should take care of that :1.

Imparting a combination of skill orientation and entrepreneurial competency

for group of persons with diverse backgrounds.

2.

Promoting of industries, services and business in rural development

programmes including specific programmes for women by adopting group
approach.

3.

Developing more and varied self employment programmes including

programmes for persons with science and technology background.

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4.

Involvement of NGOs, and professional and vocational training institutions.

5.

Promoting interaction between academic/ training institutions, and industry in

the small scale, tiny and micro enterprise sectors.
Promoting group entrepreneurship or partnership c o m p a r e d to
concentrating only on proprietory type of enterprises.
Promoting marketing entrepreneurship and development of marketing
organisations at the state level.
Providing market support particularly to first generation / trained
entrepreneurs in a sustained manner.

6.
7.
8.
9.

Making entrepreneurship an integral part of school education at plus two

level, and in various professional, vocation and other advanced courses at
different levels.

10.

Developing a structured orientation programme on entrepreneurship

development of two to three days duration can be the first step to orient
final year engineering / technology students, and final year post graduate
students in science and technology. This capsule programme could be
followed up by a regular EDP of six weeks duration to those short listed
students who show potential to Be transformed as entrepreneurs.
Adequate and timely credit being a key factor in catalysing
entrepreneurship, it is highly essential to involve bank managers/SSi
specialists from banks at the pre-training, training and post-training phases of
entrepreneurship development programmes. Interface with bankers and
promotional officers will enthuse prospective as well as existing
entrepreneurs. Similarly, use of live cases from banks of SSI units financed or
under consideration, and experiences of first generation entrepreneurs will
make the training programme quite lively and instructive.

11.

Annexure - I
Emerging Demand Areas
1.

Focussed on eco friendliness

Eco friendly fold/ vegetables/crops
Eco friendly cotton/thread/cloth
Eco. friendly colour
Eco friendly house material etc.

2.

Cow Based
Cow Milk

>

Milk products

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Entrepreneurship Development: A Revisit

3.

M. S. Chhikara

Cow Duhg>>

Dhoop Bathi, Agarbathi

Cow Urine>>

Insecticides etc.

Herbal Products
Cultivation

>>

Medicine

Processing

>>

Cosmetics

Non Conventional Energy

Waste conversion
Energy Supply
Energy Production
Hardware - Solar devices
5.

IT Enabled Services
IT clinics (Doctor)
IT Tutorials (virtual class rooms) E-commerce (Vegetables, bending)
Shopping Mall
Communication - Telephone, E-mail , Voice mail etc.
Networking
Processing - accounting, billing etc. Internet
Simulated games - exercises
E - entertainment
E - designing
E - Training
E - Education etc

6.

Relax Points
Yoga/Meditation
Spiritual camp/discoursed
Stress management centres

7.

Household Service Points

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Electricity, Telephone, House Tax, LIC premium etc.

8.

Counselling Clinics
Career counselling
Conflict resolution
Clinical Counselling
Behavioural Therapy

9.

Research and Development based enterprises

R & D Centres

10.

Agriculture based
Scientific cultivation of crops, crop rotation, crop intensity, multiple
Cropping etc.
Processing of cereals and spices
Vermi compost
Vermi Gel / Liquid

11.

Input & Output based Enterprise

Dal Making
Rice processing/screening
Vegetable grading/packaging

12.

Specialized service Enterprises

Tour & Travels
Repairing
Home/ Door Service

13.

Skill Based
Carpentry

Mechanic

Blacksmith

Repairing & Maintenance of

Goldsmithy

agricultural/ implement/ equipment Pumps,

Household appliances etc.

14.

Packaging and Marketing based Enterprises.

15.

Enterprises towards reviving traditional handicrafts, design & products.

31