enterpreneurs system

8/11/2019 Enterpreneurs System

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ESTABLISHING

ENTREPRENEURS SYSTEM

PRESENTED BY

SHIJO JACOB

ROLL NO -52

SMS,CUSAT


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Before becoming a colony of England India was a major and

most wealthy nation.

Industrial process of India began with handicrafts.

Cast based division of work prevailed.

There were places known worldwide like;

Such as Banaras for metals and sarees ,Ahmedabad for dhoti.

It was then declined due to a number of reasons include;

Disappearance of patronage

The negative thinking of British Government

Withdrawn of support.

Foreign competition

Capital deficiency, etc.


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From 1947 governing focused on attaining self sufficiency

and promoting Indian industries.

Government focused on following objectives;

Balance of economic powers

Decentralisation of industries Dispersion of Entrepreneurial Spirit to all section of

Society.

Emergence of entrepreneurial class in india.

Changing attitude towards entrepreneurship.


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Economic Conditions; It has most direct and immediate

Impact. It comprises of;

Capital; Mostimportant prerequisite, Brings together

labour, land, machine, raw material etc. The good Quality of Labour Force; Two different

perspectives

Labour intensive and capital intensive which has

different impacts. Raw materials; Without which no enterprise can

perform.

Market;competion,size,etc.


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The main components entrepreneurship;

Legitimacy of entrepreneurship; Regarded as the

compliance with the norms and values with in a sociocultural setting.

Joseph Schumpeter recognises the importance of suchlegitimacy in terms of appropriate social climate for

entrepreneurship. Positive legitimacy helps and vice versa

Social Mobility; Social mobility involves the degree ofmobility, both social and geographical, and the nature of

mobility channels with the system. Security; Many advocate that entrepreneurial security if an

important facilitator of entrepreneurial behaviour.

Thinkers like McCelland support moderate certainty.


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Entrepreneurship is moulded by or thrives to achieve

certain psychological factors; Need achievement; David McClellands theory of need

achievement.(the need for achievement , the need for

authority and power , the need for affiliation)

Withdrawal of status respect. It is a complex behaviouraltheory

GOVERNMENT INFLUENCE. Government actions influences in many spears; It can

help or destroy an industry by their industrial policy,

support measures, creation of basic facilities etc.


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Facilitating factors

Technical knowhow Entrepreneurial training

facilities.

Market contacts through Govt.

Family business

Availability of capital from

sources.

Successful role models.

Cheap manpower

Capable advisors and supporters.

Governmental and institutional

help

Barriers to emergence

Lack of technical skills. Lack of proper market

Lack of capital

Lack of business knowledge

Social stigma Time pressure

Legal and bureaucratical

constraints

Political instability

Non-coperative attitude of banksand other support financial

institutions.


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Entrepreneurs are not necessarily born they can be

developed through education, training and experience.

The process;

(i)Enhancing the motivation, knowledge and skills of

potential entrepreneurs.(ii)Arousing and reforming the entrepreneurial

behaviour in their day-to-day activities; and

(iii) Assisting them in developing their own ventures.


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The National Institute for Entrepreneurship and SmallBusiness Development(NIESBUD),Noida.

NIESBUD is an Apex Institute in the area ofEntrepreneurship and Small Business Development underthe Ministry of Micro, Small and Medium EnterprisesGovernment of India. The basic objects for which theInstitute has been established are: Promotion andDevelopment of Micro, Small and Medium Enterprisesincluding Enhancement of their Competitiveness through

Various Activities. The Institute has Conducted a total of7913 Training Programmes covering 2,07,554 Participantswhich includes 163 International Training Programmeswith 2,528 Participants from more than 125 Countries till

31st August, 2013.


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Functions are; Evolving effective training strategies and

methodology Formulating scientific selection procedures Developing training aids, manuals and other

tools Facilitating and supporting agencies engaged in

entrepreneurship development. Conducting programs which not undertaken

NIESBUD also secrateriate for Nationalentrepreneurship

Development Board(NEBD).


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It is an all India institution set by public financial

institutions and the Gujarat Government. Its programme

consisting following steps;

Selecting potential entrepreneurs

Achievement motivation training

Product selection and project report preparation.

Business management training.

Practical training and work experience. Post training support and follow-up.


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National Alliance of Young Entrepreneurs(NAYE).

NAYE has sponsored several schemes of entrepreneurial

development in collaboration with public sector banks.

Some of them are

Bank of India-NAYE. This scheme known as BINEDS

was sponsored in 1972,the beneficiaries were states of

Punjab, Rajasthan, HP,J&K,Chadigarh and Delhi. Union Bank of india-NAYE;This scheme was introduced

in june 1975 in TN.

The main objective of these schemes are to help young

entrepreneurs in identifying investment and self-employment opportunities, securing proper arrangement

for their training, providing necessary financial

assistance on the basis of properly prepared reports,

securing package of consultancy services etc.


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Indian Investment Centre(IIC);It is an autonomous

non-profit organisation financed and supported by the

Government of India. It seeks to promote mutuallyrewarding joint ventures between Indian and foreign

entrepreneurs. It acts as clear house of information to

foreign investors ,who want to make investment in India.

It functions as a link between Indian and foreignindustrialists and assist them in entering into

collaborations.

The IIC has set up Entrepreneurial Guidance

Bureau(EGB)to guide entrepreneurs in identifying

investment opportunities, assisting them in selecting

location, preparing project profiles, arranging financial

assistance, etc.


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Technical Consultancy Organisation(TCOs).

All India financial institutions and state Governments have set

up a network of technical consultancy organisations in India.

The main functions are; Conducting surveys on industrial potential

Preparing project profiles and feasibility studies

Undertaking techno-economic appraisal of projects.

Evaluating projects referred by financial institutions.

Carrying out marketing research.

Providing technical and managerial assistance to

entrepreneurs. Other players are;National Institute of Micro, Small and Medium Enterprises (NIMSME),Hyderabad;(Formerly National Institute of Small Industry Extension Training (NISIET))

National Small Industries Corporation

MSME Development Institutes

Tool Rooms

Central Footwear Training Centres, Agra & Chennai Fragrance and Flavour Development Centre, Kannauj,etc rae other institutions


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Commercial Banks.

Most of the public sector banks are conducting

entrepreneurship development programmes with a view toidentify potential entrepreneurs especially in backward

areas and training and monitoring them.

Assistance in judging the technical and commercial

viability of project proposals.

Assistance in preparing and evaluating project reports.

Practical training in the selected industry.

Assistance in obtaining Government clearance.

Assistance in procuring machinery and equipment.

Assistance in raising the required funds

Assistance and guidance in implementing the

project,etc.


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According to Dr R.A Sharma entrepreneurial performance is a function

of the following factors. (a)Socio-cultural background of the entrepreneur (SB).

This implies the environment in which the entrepreneur was born and

brought up. It conditions the values and attitudes of the entrepreneur.

(b)Motivational Force(MF).It implies the motives which prompt a personto undertake entrepreneurship e.g. Wealth, status, self-employment, etc.

(C) Knowledge and ability of the entrepreneur(KA).It refers to the

education, training, and experience of the entrepreneur.

(d)Financial Strength(FS).It means the funds which an entrepreneur can

mobilise from internal and external sources.

(e)Enviornmental Variables(EV) These consist of Government policies

market conditions, availability of technology and labour situation.

Symbolically

Entrepreneurial Performance (EP)=f(SB,MF,KA,FS and EV)


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(i)Gestation Period. It is the time gap between the date of

incorporation and the date of commencement of commercialproduction.

Reasons cited in delay of projects are Government

approvals, assistance from financial institutions, non-availabilty of

suitable man power, Delayed supply of machinery etc.(ii)Financial Results. Total assets or gross block representing the

physical expansion of an enterprise was used to juudge.Other criterea

was financial heath of units, return on capital employed, net profit over

sales, net profit over net worth etc.(iii) Capasity Utilisation.It depends upon the avilabilty of required

inputs like raw material, power, labour, etc.

(iii)Expansion and diversification.

(iv)Value added by manufacture


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(vi) Growth of offspring Enterprises.

(vii)Others;Salesturn over, size of manpower, volume of exports,

research and development, etc.

Motivational theories on entrepreneurship;(i)Need Achievement Theory(McClelland)

Need for achievement motivation:-McClellandapproach suggests that need for achievement motivation is crucial factor in

determining the level of industrial and economic activities.

McClellands research led him to formulate psychological characteristics of persons

with strong need for achievement. ; David McClellands theory of need

achievement.(the need for achievement , the need for authority and power , the need

for affiliation)

(ii)psycho social theories


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Social change theory by Everett Hagen


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The Central and the State Governments have introduced several schemes for facilitatingfinance to the Women, Minorities and SC/ST/OBCs. Besides specific schemes, the

Government also provides special concessions to them under various other schemes

Schemes for Women

Various government schemes for MSMEs provide certain special incentives and

concessions for women entrepreneurs. For instance, under Prime Ministers RozgarYojana (PMRY), preference is given to women beneficiaries. The government has also

made several relaxations for women to facilitate the participation of women beneficiaries

in this scheme. Similarly, under the MSE Cluster Development Programme by Ministry of

MSME, the contribution from the Ministry of MSME varies between 30-80% of the total

project in case of hard intervention, but in the case of clusters owned and managed by

women entrepreneurs, contribution of the M/o MSME could be upto 90% of the projectcost. Similarly, under the Credit Guarantee Fund Scheme for Micro and Small Enterprises,

the guarantee cover is generally available upto 75% of the loans extended; however the

extent of guarantee cover is 80% for MSEs operated and/ or owned by women. Small

Industries Development Bank of India (SIDBI) has also been implementing special

schemes for women entrepreneurs.


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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Promoted by Government of India alongwith SIDBI, provides credit guarantee for collateral

free loans upto Rs. 100 lakh for MSEs under its Credit Guarantee Scheme (CGS) with special

concession to loans extended to women entrepreneurs i.e. the guarantee coverage is provided

upto 80%. As on August 31, 2010, CGTMSE has covered 78,400 guarantees of Rs. 2,571crore run by women entrepreneurs, which constitutes around 20% of total guarantees.

Promotional & Developmental Assistance

Schemes for MinoritiesTo provide additional financing agency for minorities, National Minorities Development &Finance Corporation (NMDFC) was set up by the Government in 1994. The Corporation

promotes the development of backward sections amongst the Minorities through various

schemes. Some of the financial assistance schemes of NMDFC include:

Term loanMargin Money Loan scheme

Educational Loan Scheme

Scheme of Micro Credit

Scheme of Interest Free Loan to NGO

Mahila Samridhi Yojana.

S h f S h d l C t d T ib (SC/ST)


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Schemes for Schedule Castes and Tribes (SC/ST)National SC Finance and Development Corporation (NSFDC) is the apexinstitution for financing, facilitating and mobilising funds from other sourcesand promoting the economic development activities of the personsbelonging to the Scheduled Castes living below double the poverty line.

NSFDC runs various financing programmes for the benefit of the ScheduleCastes. Some of the financing schemes of the corporation are as below:

Term LoanMicro Credit FinanceShilpi Samriddhi Yojana

Mahila Samriddhi YojanaMahila Kisan YojanaSchemes for Other Backward Castes (OBCs)National Backward Classes Finance & Development Corporation (NBCFDC), agovernment undertaking, provides financial assistance through StateChannelising Agencies (SCAs) and Micro Financing through SCAs/ Self Help

Groups (SHGs) to assist a wide range of income generating activities to assistthe poorer section of these classes in skill development and self-employment ventures under sectors like Agriculture and Allied Activities,Small Business, Artisan and Traditional Occupation, Technical andProfessional Trades/Courses, and Transport and Service Sector etc.


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The various financing schemes offered by the corporation are as below:

Term Loans/ margin Money LoansNew Swarnima Special Scheme for WomenEducational Loan Scheme New Akanksha

Swayam Saksham

Micro Finance SchemesMahila Samriddhi Yojana


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enterpreneurs system

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