Tag: University of Mumbai BMS Notes

The degree to which social entrepreneurs pursue social impact as opposed to profitability vary, but in all cases financial sustainability is fundamental. One approach is to create business models revolving around low-cost products and services to resolve social problems. The objective is to create a social benefit that is not limited by personal gain. Social Entrepreneurship is the process of bringing about social change on a major and more effective scale than a traditional Non-Governmental Organisation (NGO). They differ from NGOs in that they aim to make broad-based, long-term changes, instead of small-scale and time-limited changes. Furthermore, a NGO raises funds through events, activities and sometimes products. However, raising money takes time and energy, which could be spent in direct working and marketing processes. Above all, Social Entrepreneurs consider the affected people as part of the solution and not as passive beneficiaries.

The key role of India in Social Entrepreneurship

Some wellknown Indians became aware of the potential of Social Entrepreneurship quite early. Two of them were the Social Entrepreneurs Dr. Govindappa Venkataswamy and Thulasiraj D Ravilla who established the Aravind Eye Hospital in 1976. Since then, they have treated more than 2.4 million patients, often free of charge. Many others have also contributed to the comparatively high levels of Social Entrepreneurship which have been reached in India.

As the Swiss Klaus Schwab, founder of the World Economic Forum and of the Schwab Foundation, pointed out in an interview with the Hindustan Times: “India has some of the most advanced and innovative social entrepreneurs. We believe and already see that many of the models developed in India, for instance rainwater harvesting for schools pioneered by Barefoot College, are exported around the world.” Thus, India is a key country in developing social entrepreneurs. Several institutions help people to become involved with Social Entrepreneurship, such as UnLtd India and the National Social Entrepreneurship Forum (NSEF).

Furthermore, the Schwab Foundation and its Indian counterpart, the Jubilant Bhartia Foundation, give the Social Entrepreneurship Award to prominent visionary Indian social entrepreneurs. In 2009, the winners of the Social Entrepreneur of the Year Award included Brij Kothari of “Planet Read and Bookbox” who found to combat illiteracy, Padmanabha Rao and Rama Rao of “River” which focused on the primary education of children and Rajendra Joshi of “Saath” who created inclusive societies by empowering India’s urban and rural poor. The next winner will be announced in a ceremony coinciding with the India Economic Summit in November 2010.

Another important organisation that is linked to India is Ashoka, which is the global association of the world’s leading social entrepreneurs. Since 1981, they have elected over 2.000 leading social entrepreneurs as Ashoka Fellows, providing them with living stipends, professional support and access to a global network of peers in more than 60 countries. India is home to Ashoka’s first Fellow and for the past 25 years, India has served as a testing ground for most of Ashoka’s international Fellowship building programs and other key initiatives. Since 2003, Ashoka and the American India Foundation (AIF) have partnered to co-invest in social entrepreneurs in India. This partnership has enabled Ashoka to increase the number of Fellows elected in India to 250.

AIF is a leading international development organisation charged with the mission of accelerating social and economic change in India. Since 2001, it has raised over 30 million US-Dollars and awarded grants to education, livelihood, and public health projects in India with an emphasis on elementary education, women’s empowerment and HIV/AIDS.

Increase in Microfinancing

In particular, the field of microfinance is a growing one. The Bhartiya Samruddhi Investments and Consulting Services (BASIX) founded by Vijay Mahajan was the first microfinance project to lend to the poor. Vikram Akula is another founder of a successful Indian microfinance project. His organisation “SKS Microfinance” offers microloans and insurance to poor women in impoverished areas of India. SKS is currently one of the largest and fastest growing microfinance organisations in the world. Furthermore, the Bangladeshian Grameen Bank shall be mentioned as an outrider in the field of microfinance. As Anna Agarwal of the Massachusetts Institute of Technology pointed out, banking and finance are the biggest beneficiaries of technology-enabled social start-ups.

There are three reasons why microfinancing is so important for the poor: Firstly, they don’t possess money to open a bank account. Secondly, they don’t have collateral or a credit record to secure a loan and thirdly, they are often unable to complete the necessary paperwork because of their poor standard of literacy. This is why they rarely have access to the formal financial sector and microfinancing is an important service in assisting to cope with these issues.

In India, self-help groups form the basic constituent unit of microfinance. These groups usually consist of 5 to 20 poor women who pool their savings, sometimes as low as 10 or 20 cents per month, per member, into a fund from which they can borrow when necessary. The group is linked to a bank, where they maintain a group account. After at least 6 months of ´inter-loan` repayments the group is eligible for the loan. The bank lends to the group as a unit, without collateral, relying on self-monitoring and peer pressure within the group for repayment of these loans. Starting with lower multiples (1:1 to 2:1) the maximum loan amount often is a 4:1 multiple of the total funds in the group account. Many other innovative social entrepreneurs could be named.

The Way Forward

One example of highly motivated young Indians wishing to promote Social Entrepreneurship is Rikin Gandhi. After working for the US space program as an aeronautical engineer he decided to help Indian farmers with his project “Digital Green”. The project is sponsored by the Bill and Melinda Gates Foundation and interacts with different NGOs. It produces and distributes community-centric, locally relevant videos about best agricultural practices. In the future, “Digital Green” plans to develop a technology platform where farmers can share data and videos.

There are some challenges that Social Entrepreneurs must address in India. They often face situations that are unpredictable, constantly changing and hard to control. In 2008 for instance the terror attacks in Mumbai forced Social Entrepreneurs to re-think their general strategies. Furthermore, although there are many opportunities in the Indian welfare sector, most social entrepreneurs still focus on traditional areas such as education and healthcare.

Strength and weakness, both are the different sides of the same coin. Hence, all involved group members of SHG must realize that they all work with their own individual strengths and weaknesses. No one should be blamed for ones weakness i.e. all SHG members are equally responsible for success and failure of their entrepreneur. Self-help group can take a lead in any of the income generating activities by which group members can get employment and enhance their family socio-economic status. The group provides a platform to women for income generation with co-operative and mutual helping attitude.

The definition of SHG as approved by National Bank For Agriculture and Rural Development [NABARD] the apex banking body in India, is “An SHG is a small, economically homogeneous and affinity group of rural poor voluntarily formed to save and mutually agree to contribute common fund to be lent to its members as per group decision for their socio-economic development”.

As the name indicates, self-help group is an informal group of about 15-20 people from a homogeneous class, who come together for addressing their common problems. Group itself becomes a base to convey necessities and sort out social economical problems of their group members.

Main aim of SHG is to make group members self sufficient and self reliant [independent] by self-employment and empowerment through group dynamics.

Principle of SHG:

“Unity is strength”

Self-help group is a best way to get strengthen. Ex:- A single wooden piece can be easily broken, but a bundle of 15-20wooden pieces can’t be broken easily. As like this a group of people can easily sort out any of the problem, because group decisions carry more weightage than individual decision.  

Characteristics of an ideal SHG:

According to MARADA[2000] well functioning SHG should have following structural features:-

• An ideal SHG comprises 15-20 members.
• All the members should belong to the same socio-economic strata of society.
• Rotational leadership should be encouraged for the distribution of power and to provide leadership opportunities to all the members.
• Member should regularly attend meetings, save money and participate in all activities VOLUNTARILY.
• The procedure of decision-making in SHG should democratic in nature.
• The group frames rules and regulations, which are required in its effective functioning.
• Transparency in account keeping and accounts should be maintained and updated regularly.
• An SHG should be socially viable institution.

Role of Self Help Groups in empowering women:

 The self-help groups empower women and train them to take active part in the socio-economic progress of the nation and make them sensitized, self-made and self disciplined. The SHGs have inculcated great confidence in the minds of rural women to succeed in their day-to-day life. SHGs enhance the quality of status of women as participants, decision makers and beneficiaries in the democratic, economic, social and cultural spheres of life. The SHGs bring out the capacity of women in molding the community in right perspective and explore the initiative of women in taking the entrepreneurial ventures. SHGs also organize women to cope with immediate purposes depending on the situation and need.

Participation of women in SHGs makes a significant impact on the empowerment in social aspect also. Participation helps women come out in open and discuss their problems. It also helps to bring about aw2areness among rural women about savings, education, health, environment, cleanliness, family welfare, social forestry, etc. Researches also reveal that increased participation of women in decision making at all level will help to adjust the goals pursued through development.

Empowerment should be extremely induced so that women can exercise a level of autonomy. There should also be ‘self empowerment’ so that women can look at their own lives. The process of ‘learning by doing and earning’ would certainly empower rural women. More and more rural women need to be involved in self-employment. Self-employment in agriculture, village and small industries and retail trade and services should be expanded. Self-employment is also conducive to the development of individual initiative and entrepreneurial talent and offers greater personal freedom. The added advantage is that the institution of family remains undisturbed. The emergence of self-help groups in this context is a welcome development. The groups would provide a permanent forum for articulating their needs and contributing their perspectives to development.

Self-help group should be developed as an institution for financial intermediation as well as people’s network rather than a vehicle for credit disbursal only.

Self Help Group is able to overcome most of the practical problems encountered in the implementation of the various income generating programmes for the economic empowerment of women. SHGs have also been organized during last decade under various programmes of the government, e.g.- District Poverty Eradication Programme, Aapni yojna, Development of Women and Children in Rural Areas, Krishi Vigyan Kendra, etc.

The number of SHGs existing at present in the country is estimated to be about 2,60,000. Out of these; about 90 percent are women group. The cumulative number of SHGs linked to the bank till March 2002 is 4,61,478 and to the tune of 10,263 million rupees has been advanced to the SHG for income generating activities [NABARD,2002]. As per the report of NABARD, SHG bank linkage programme has benefited 4 million families, covering an estimated 20 million very poor people during 2001-2002.

The SHGs are a viable alternative to achieve the objectives of rural development and to get community participation in all rural development programes. The possible outcomes of women’s entrepreneur through SHGs at household level are self employment, sustainable livelihoods, enhanced social dignity and better status of women. SHG would lead to benefits not only to the individual women and women’s groups but also for the family and community as a whole through collective action for development. Empowerment is not just for meeting their economic needs but also for more holistic social development.

The success of a small scale enterprise depends on the following  major factors:

[A] Inherent viability of the project, i.e.-technical, organizational, financial, commercial    viability.

[B] The way a project is planned, i.e.-decisions regarding various project parameters such as where to locate, what technology to be used, what should be the capacity of the machineries etc.

[C] The meticulousness with which a project is implemented.

[D] The way of project managed.

Everything revolves around the enterprise. Therefore, the factors responsible for their emergence and growth must be analyses and supported.

It is rightly remarked that entrepreneurs are not necessarily born, they can also be developed through education, training and experience. Though entrepreneurial talent exists in every society but socio-economic environment hinders the emergence of entrepreneurial talent. Entrepreneurship requires an environment in which entrepreneur can learn and discharge his assigned responsibility in an efficient manner and change his attitude.

Entrepreneurial development seeks to provide constructive direction for those who choose a career path different from traditional roles. The process of entrepreneurial development focuses on training, education, reorientation and creation of conductive and healthy environment for the growth of enterprise.

Entrepreneurial development is an act of encouraging people for entrepreneurial career and making them capable of exploiting business opportunities. It is not simply a training task. It is the act of motivating and developing skills of potential entrepreneur and helping them in developing their own ventures.

Entrepreneurial development is thus an organised and systematic development. It is regarded as a tool of industrialization and a solution to unemployment problem. The objective of entrepreneurial development is to motivate a person for entrepreneurial career and to make him capable of perceiving and exploiting successfully opportunities for enterprises.

The trained entrepreneur can guide others on how to start their own enterprise and approach various institutions for finance. In fact, trained entrepreneurs become catalysts of developing industry and economic progress. According to Prof. Pareek and Karenina, “Operationally, entrepreneurship development would mean development Of entrepreneurs and promtion of increased flow of individuals to entrepreneurial ranks.

” Entrepreneurial Development Programme (EDP) may be defined as “a programme designed to help an individual in strengthening his entrepreneurial motive and in acquiring skill andcapabilities necessary for playing his entrepreneurial role effectively.”

Nature or characteristics of entrepreneurial development programme

Following are the main characteristics of entrepreneurial development programme: it is an organised and systematic process of enhancing the motivation, knowledge änd skills of the potential entrepreneurs. It is based on the belief that individuals can be developed, their outlook can be changed and their ideas can be converted into action through training. It develops first-generation entrepreneurs who on their own cannot become successful entrepreneurs. It is an endeavour in human resource development. it emphasis on operational rather than academic training. It is regarded as a tool of industrialisation and a solution to unemployment problem. It is catalyst for developing industry and economic programmes.  It is not totally based on training. The whole process  extends much beyond ‘training’. Much of it is personal counselling and support.

Objectives of entrepreneurial development

Following are the main objectives of entrepreneurial development programmes:

(1) Promotion of Cottage and Small-Scale Industries: The main objective of EDP is to provide, in the rural areas, special programmes designed to stimulate new ventures and encourage expansion of existing activities of small and medium scale industries.

(2) Generation of Employment Opportunities: EDP aims to encourage self-employment among potential entrepreneurs. It generates employment and self-employment opportunities in the processing of indigenous raw materials for local consumption and for exports.

(3) Promotion of First-Generation Businessmen: One of the main objectives of EDP is to encourage first generation entrepreneurs who do not have any business background.

(4) TO Create Awareness about Availability of the Resources: It, aims to front, on wrongs about the available resources„ such raw material, technology etc. in the prospective entrepreneurs.

(5) To import Training: The main objective of EDP is to in donut and train potential entrepreneurs. It imparts training in mentoring understanding and skills. It also provides post training assistance and monitoring facilities.

(6) To Develop a Broad Vision: One of the objectives of EDP is to develop and broad vision to see the business as a whole and to integrate his functions with it.

(7) To Remove Doubts of Entrepreneurs and to give solution in to their Problems: New entrepreneurs have to face many problems in the establishment and operation of business. To remove doubts of entrepreneurs and to give solution to their problem is one of the main aims of EDP. It helps the entrepreneurs to set or reset the objectives of their business and work individually and along with his group for their realisation.

(8) To create a successful entrepreneur: One of the main aims of EDP is to create the successful entrepreneurs. It provides constructive direction for those who choose a career path different from traditional roles.

(9) Creation of Conductive and healthy environment for the growth of entrepreneurs: The process of entrepreneurial development focuses on training, education, reorientation and creation of conductive and healthy environment for the growth of enterprises.

Role/importance of entrepreneurial development programmes

EDPs have great role and relevance in increasing the supply of new entrepreneurs to accelerate the process of industrialization. It is widely accepted that persons interested to become entrepreneur will be greatly helped if appropriate training and development programmes are made available to them.  Need/importance of EDPs can be judged on the basis of following points.

(1) Eliminating Poverty and Unemployment: Most of the under developed countries are confronted with the chronic problem of unemployment. EDPs can help these unemployed people in getting self-employment and at the same time generating employment opportunities for others. Various programs initiated by the government like NREP (National Rural Employment Programme, IRDP (Integrated Rural Development Programme etc. are aimed at tackling unemployment problem. 

(2) Balanced Regional Development: Successful EDPs help in accelerating the pace of industrialisation resulting in the reduction of concentration of economic power. Small scale units can be set up in remote areas with little financial resources and it helps in achieving balanced regional development. EDPs aimed at promoting small scale units are more useful for balanced regional development than medium and large-scale units.

(3) Economic Growth: The relevance of EDPs can be clearly understood by their role in the economic development of developing countries like India. Such programmes create many entrepreneurs who are able to establish small and micro enterprises which require less investment in funds. It increases new investment and bring innovations. All these activities in turn stimulate the economic growth.

(4) Optimum use of Locally Available Resources: The EDPs can help in harnessing locally available resources by training and educating the entrepreneurs. Since abundant resources are available locally, proper use of these resources will help in creating a healthy base for sound economic growth and rapid industrialisation. EDPB also help in minimising excessive scraps, defective output and wastage in the production process.

(5) Promote Innovations: Entrepreneurial Development Programmes initiate the people for innovations and creativity. EDPs have become a vital strategy for harnessing the vast untapped human skills, to channelise them into accelerating industrialisation.

(6) Defuses Social Tension: Every youth feels frustrated if he does not get employment after completing his education. The surplus young energies can be diverted to self-employment careers to help the country. This may defuse social tension and unrest among youth.

(7) Development of Entrepreneurship Qualities: Thus, the EDPs are needed to induce achievement motivation and develop entrepreneurial characteristics or competencies among young persons through training with a view to making them successful future entrepreneurs.

(8) Preventing Industrial Slums: More industrial units are located in highly congested areas and it leads to creation of industrial slums. EDPs help in removal of these slums as entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the places. It will help in controlling industrial slums and also reduces pollution, traffic congestion and overcrowding in developed areas.

(9) Fulfilment of Dreams: EDP is necessary to motivate the potential entrepreneurs to convert their dreams into action.

(10) Successful Launching of New Units: EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise.

(11) Development of Rural and Backward Areas: If new enterprises are set up in backward and rural areas of a developing country like India, they are sure to mitigate poverty in, such areas and also to remove lopsided economic development that is, concentration of business enterprises in urban areas only.

Problems of entrepreneurship development programmes (EDPs) are:

• No Policy at the National Level

Though Government of India is fully aware about the importance of entrepreneurial development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through promotion of entrepreneurship.

• Problems at the Pre training Phase

Various problems faced in this phase are: identification of business opportunities, finding & locating target group, selection of trainee & trainers etc.

• Over Estimation of Trainees

Under EDPs it is assumed that the trainees have aptitude for self employment and training will motivate and enable the trainees in the successful setting up and managing of their enterprises. These agencies thus overestimate the aptitude and capabilities of the educated youth. Thus on one hand the EDPs do not impart sufficient training and on the other financial institutions are not prepared to finance these risky enterprises set up by the not so competent entrepreneurs.

• Duration of EDPs

An attempt is made during the conduct of EDPs to prepare prospective entrepreneurs thoroughly for the various problems they will be encountering during the setting up and running of their enterprises. Duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to install basic managerial skills in the entrepreneurs. Thus, the very objective to develop and strengthen entrepreneurial qualities and motivation is defeated.

• Non-Availability of Infrastructural Facilities

No prior planning is done for the conduct of EDPs. EDPs conducted in rural and backward areas lack infrastructural facilities like proper class room suitable guest speakers, boarding and lodging etc.

• Improper Methodology

The course contents are not standardized and most of the agencies engaged in EDPs are themselves not fully clear about what they are supposed to do for the attainment of pre-determined goals. This puts a question mark on the utility of these programmes.

• Mode of Selection

There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organizations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

• Non-Availability of Competent Faculty

Firstly, there is problem of non-availability of competent teachers and even when they are available, they are not prepared to take classes in small towns and backward areas. This naturally creates problems for the agencies conducting EDP.

• Poor Response of Financial Institutions

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans. Those entrepreneurs who fail to comply with the conditions are not able to get loan and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go a long way in stimulating entrepreneurial climate.

A non-governmental organization (NGO) is an organization that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private persons. The existence of NGOs is proving to be a necessity rather than a luxury in societies throughout the modern world. the inability of the government alone to create just and sustainable societies is persuasively demonstrated throughout history. Prompted by the inadequacies of the state, citizens across the globe have developed organizations of civil society NGOs to help address a wide variety of social needs.

NGOs have three primary roles in advancing modern societies. First, NGOs can facilitate communication upward from people to the government and downward from the government to the people. Communication upward involves informing government about what local people are thinking, doing and feeling while communication downward involves informing local people about what the government is planning and doing. Secondly, NGOs provide opportunity for the self-organization of society. NGOs enable citizens to work together voluntarily to promote social values and civic goals, which are important to them. They promote local initiative and problem solving. Through their work in a broad array of fields environment, health, poverty alleviation, culture & the arts, education, etc. NGOs reflect the diversity of society itself. They also help the society by empowering citizens and promoting change at the “grass roots”. Thirdly, in some cases, NGOs become spokespersons for the poor and attempt to influence government policies and programs on their behalf. This may be done through a variety of means ranging from campaigning and pilot projects to participation in public forums and the formulation of government policy and plans. Thus, NGOs play roles from advocates for the poor to implementers of government programs; from agitators and critics to partners and advisors; from sponsors of pilot projects to mediators.

NGOs have a clearer link to a guiding purpose, the greater good. They actually take up the responsibility of fulfilling moral and social needs that ought to be taken by the government. After all, there’s more happiness in giving than receiving; NGOS truly embody this thought.

Along with social enterprises, microfinance institutions and donors, corporations play a large role in raising money and resources for NGOs. Many international corporations can today rival entire nations when it comes to raising resources and influence in both India and international territories.

 In the last four years, Corporate Social Responsibility (CSR) in India has acquired new impetus with the Companies Act 2013. The Act defines that companies with a net worth of Rupees 500 crores or more, or a turnover of Rupees 1,000 crores or more, or earning a net profit of Rupees 5 crores or more must spend a minimum amount on corporate social responsibility.

CSR: support charities to fulfil legal obligation while generating goodwill

For many of India’s most loved brands, ‘giving back’ is not about fulfilling this legal obligation of having to donate to charity, but generating goodwill in their respective communities. These are times when CSR and NGOs go hand-in-hand. Companies, therefore, must spend in areas like literacy, women empowerment, environment, water, sanitation, child rights etc. Most companies around the world allocate 100% of their resources before they consider the need of CSR. The same holds true for India, and even after allocating CSR funding, and engaging employees with a mission of social good, companies struggle with their project’s sustainability.

NGO intervention in corporate social responsibility

Many companies simply do not have the bandwidth (employees, consultants and supervision) to undertake consistent CSR implementation. These companies not only need to spend on CSR, but also on CSR training for their employees, or adding manpower dedicated to CSR capability. NGO’s in India pitch a streamlined, customised solution to these corporations. For NGOs, corporates are not only a source of consistent funding but also access to strategic resources. An IT giant, for example, can provide technology, processes, and support for educational initiatives.

A look at India’s NGO sector

India possibly is home to the world’s largest number of active not-for-profit NGOs. At last count, India had 31 lakh NGO – one NGO for about 400 Indians. With the boom in CSR funding, this number can cross 40 lakh – considering that there are thousands of public and private sector companies worth Rs.15,000 to 18,000 crores annually. This number doesn’t even include India’s actual number of NGOs, as many aren’t formally registered under the Societies Registration Act 1860, or any other Acts pertaining to non-profit organisations.

 How does a company identify the right NGO for CSR intervention?

With this veritable ocean of NGOs, it isn’t easy to pick the right one for a company to engage in CSR intervention. Companies not only must allocate funds, but also work with the NGO on CSR interventions. This requires the need for effective monitoring and evaluation mechanisms in place. Many large corporates, like Godrej, Reliance, Wipro, Infosys, Tata, and the Birlas have their established their own Foundations and Trusts to achieve this.

 It is critical for a company to rate an NGO on parameters while shortlisting one for CSR implementation.

• Years in operation

It is important for a corporate to work with an NGO that has demonstrated years of experience and reliability. During this time, it must have mobilised resources, infrastructure and people for a social cause.

• Geography

Companies should preferably look for an NGO near the project area. This not only ensures easier logistics, but also an intimate understanding of the local needs, geography, language, culture etc. The NGO preferably must situate offices or centres with connectivity and other resources in these locations, to efficiently execute projects.

•  Reputation

Transparency, accountability and measurable change in a social welfare context are how an NGO’s reputation can be measured. This gives an NGO credibility, making it trustworthy of using corporate assets and funding for CSR goals.

• Certification (e.g. filing for donation tax return)

Certification allows corporates to assess if an NGO complies with legal norms, as legal issues can compromise CSR implementation. Certification includes Income Tax exemption, FCRA, service tax, and also proper internal documentation in case an audit is requested.

• Relevant experience

An NGO must have shown work in projects relevant to the corporate’s CSR goals. Coca-Cola India, for example, devotes a substantial amount of CSR efforts to water sustainability, conservation, and sanitation. These projects must be corroborated with completion certificates from clients.

• Leadership

The NGO’s leadership must be well-known promoters, with no legal proceedings or controversies to their name.

•  Credentials

An NGOs credentials can also be ascertained via certificates, awards, news coverage, and membership of NGO and corporate bodies like CII, Chamber of Commerce etc.

An Intrapreneurship is the system wherein the principles of entrepreneurship are practiced within the boundaries of the firm. An intrapreneur is a person who takes on the responsibility to innovate new ideas, products and processes or any new invention within the organization.

Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship is known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques, that are more traditionally thought of as being the province of entrepreneurship.

An intrapreneur is the individual who thinks out of the box and possesses the leadership skills and does not fear from risk. Thus, an intrapreneur possesses the same traits as that of an entrepreneur.

The concept of an Intrapreneurship can be well understood in contrast to the entrepreneurship.

1. Intrapreneurship is restorative in nature, i.e. an organization encourages the employees to practice the entrepreneurial principles to counter stagnation within the firm or transform the slow growth of the company into a high-growth. Whereas the entrepreneurship is developmental in nature, i.e. an individual creates something that has never existed before, such as a new product, process or a new venture itself.
2. In intrapreneurship, the major challenge that individual faces are from the company’s culture Sometimes, the corporate relationships and the mindsets of employees acts as a hurdle in the path of an intrapreneur. Whereas, in the case of entrepreneurship, the market is the only enemy. An entrepreneur has to scrutinize the market conditions thoroughly to cross the hurdles coming in his way.
3. An intrapreneur has an access to firm’s resources such as funds, manufacturing setups, marketing facilities, and other supporting activities to give shape to his dreams. Whereas an entrepreneur has to arrange his own resources such as own funds or the borrowed funds, manufacturing facilities, marketing facilities, etc.
4. An intrapreneur does not have the ownership of a new venture and is not even independent to take decisions, whereas an entrepreneur is the whole sole owner of the new venture established by him. Also, he is independent to take any decisions with respect to his setup.

Thus, an Intrapreneurship is a practice of creating the entrepreneurial environment within the organization, thereby enabling the employees to apply their entrepreneurial skills in the job roles; they are assigned to.

Entrepreneur	Intrapreneur
An entrepreneur is independent in his operations	An intraprenuer is dependent on the entrepreneur i.e. the owner.
An entrepreneur himself raises funds required for the enterprise.	The Intrapreneur does not raise funds.
Entrepreneur bears the risk involved in the business.	An intrapreneur does not fully bear the risk involved in the enterprise.
An entrepreneur operates from outside.	On the contrary, an intrapreneur operates from within the organization itself.
An entrepreneur begins his business with a newly set up enterprise.	An intrapreneur sets up his enterprise after working someone else’s organization.
As an entrepreneur establishes new business, so he does not possess any experience over the business.	An intrapreneur establishes his business after gathering experiences through working in the other organization.
Entrepreneurs may find it difficult to get resources	Intrapreneurs have their resources readily available to them.
Entrepreneurs are found anywhere their vision takes them.	Intrapreneurs work within the confines of an organization.
Entrepreneurs know the business on a macro scale.	Intrapreneurs are highly skilled and specialized.

Benefits and Risks of Intrapreneurship

Many entrepreneurs start out while working for someone else. Being an intrapreneur gives you the benefit of your company’s resources and connections, secure in the knowledge that you’ll still be able to pay the rent while you practice your craft.

Knowing that you’re making a meaningful contribution to your team or organization, while pursuing your own vision at work, can also profoundly improve your job satisfaction, build your credibility, and work wonders for your self-confidence

However, not many companies have formal intrapreneurship programs, and the leaders within your company (managers, executives and the CEO) may not see it as part of their role to support people who tread their own path.

Development of Intrapreneurship

1. Develop the Right Personal Skills

Intrapreneurs share many of the strengths and skills more commonly associated with entrepreneurs. They’re self-confident, creative and tenacious innovators, who excel at problem solving and aren’t afraid of putting their ideas on the line.

Intrapreneurs are willing to take calculated risks, but they understand the difference between good risks and bad ones. Learn how to take calculated, intelligent risks by using Risk Analysis to steer clear of ideas that could prove disastrous.

Intrapreneurs are brave, as success is rarely guaranteed. Instead of allowing your fears to keep you from pursuing your ideas, be comfortable in the knowledge that failure can be a stepping stone to something even better, enriching you with practical experience along the way. Overcome your fear of failure, and, when things don’t go perfectly, pick yourself up, review the situation, and move on.

2. Develop an Idea

Intrapreneurs are always looking for ways to make things better. To them, problems are really just opportunities in disguise.

One of the best ways to get noticed in your organization is to come up with a creative solution to an existing problem. Start by looking at the issues and bottlenecks that affect productivity and cause headaches for other people especially your boss. If you can solve her problems, she’s far more likely to give you the go-ahead on your other ideas.

You can also look at the problems your customers or clients are experiencing. Use problem-solving tools like Root Cause Analysis and The 5 Whys to get to the bottom of them, then use creative-thinking tools like Random Input, The Reframing Matrix or The Simplex Process to come up with innovative solutions.

And discuss your ideas and suggestions with other people who know about different parts of the problem you want to solve. They can help you refine your ideas and develop an even better solution.

3. Pitch Your Idea

Once you have an idea that excites you, it’s time to pitch it to your boss or leadership team. This can be a challenging step, because it means putting yourself, and your idea, on the line.

Prepare by learning how to think on your feet and brush up on your impromptu speaking skills. Staying cool under pressure will help you to think clearly, while you pitch your idea.

Next, use our Bite-Sized Training workbook (Club members only) to think about how to sell your idea, and craft an elevator pitch that explains your idea in two minutes or less. Strengthen your message and make it more persuasive with Monroe’s Motivated Sequence, then use our Presentation Planning Checklist to make sure that you haven’t forgotten anything.

4. Be Persistent

If at first you don’t succeed, try, try again.

Don’t be discouraged if your pitch is unsuccessful. Some of the most successful ideas of all time were rejected the first time around. Correction fluid, folding bicycles, the hovercraft, and even Barbie™ dolls were sidelined in the beginning.

Take careful note of any reservations that your manager or leadership team raise during your pitch. If you still believe that your idea will work, do more research to support your hunch. Make your solution more attractive by refining it in light of what has been said, and stay focused on creating value for other people.

5. Conduct a Pilot Test

The next step is to start putting your ideas into action. It’s unlikely that, at this early stage, your manager will give you the green light to roll out your idea across the whole company. First, he will need to see more evidence that the idea is going to work.

One way to do this is by conducting a Business Experiment to test your ideas on a small scale, before taking big risks or committing significant resources to a larger project. You could also use Deming’s Plan-Do-Check-Act cycle to set up a pilot project, or create a Minimum Viable Product to prove your assumptions and explore your customers’ wants and needs.

6. Wider Implementation

If your pilot study is a success and you and your manager are happy to proceed further, it’s all systems go!

Good Project Management, Risk Management, and Change Management skills will help to keep things running smoothly.

Ancillarisation

An ancillary unit is defined as an Industrial undertaking having investment in fixed assets, in plant & machinery whether held on ownership or on hire purchase not exceeding Rs. 100 crore & engaged in:

• Manufacturer of parts & components, sub-assemblies, tooling or intermediates
• Rendering of service or proposing to supply or render not less than 50 % of his production or service to one or more other industrial undertaking for production.

Major difference between SSI & ancillary is that unit setup which can be recognised as a full fledge large company can be a part of ancillary but under SSI such unit can get transformed into medium or large-scale sectors.

Major benefits of Ancillarisation drive to a country is that:

• Growth of employment
• Growth of GDP
• Growth of entrepreneurship

Advantages of Ancillarisation

• Minimise investments of setting up of large units as the required as the required production can be sourced a lower at rate with same quality through subcontracting from an ancillary unit
• Ancillary unit’s JIT concept helps the large companies to bring down the inventory level and saves a lot of money.
• Sourcing is economical from ancillary units that are normally located near the companies
• Ancillary units work with the parent companies in the process & product development

Disadvantages of Ancillarisation

• Delay in payments puts ancillary companies in big trouble. If the parent co. is big then the ancillary co. finds it difficult to take any legal action
• When parent companies revise the specification, ancillary units are sometimes not given the expected support for adopting the higher technology, not given sufficient time to bring changes in the technology to match that of parent co.
• Multiplication of suppliers makes the ancillary units operate below BEP(Breakeven point) as a result these units incur losses because of capacity utilisation.

BPO

Business Process Outsourcing, popularly known as BPO, is the business strategy where one company hires another company to perform a certain task for them, i.e. they outsource a certain job.

Say for example a manufacturing company will outsource their supply chain management to another company who specializes in supply chain management. So it essentially entails outsourcing one or more non-core business activities or processes to an external service provider. So there are two parties involved, the client company (the outsourced) and the external service provider or the vendor (the outsourcer)

One point to note that only non-core activities are usually outsourced. The companies do not part with their core competencies, they maintain all their focus on these like manufacturing, marketing etc.

However non-core services like after sales service, customer relations, supply chain management, real-time accounting etc. can be outsourced to BPOs.

Advantages of a BPO

1. Flexibility

Outsourcing non-core activities to a BPO allows a company to be far more flexible. Firstly, the company does not have to invest in additionally fixed assets and can convert them to variable costs. It also increases flexibility in resource management of the client company and helps in adapting to changes in the environment much faster.

2. Cost Effective

Outsourcing some of the business processes and activities can be very cost effective for the client company. They save on investing in fixed assets and fixed costs. And they can redirect these funds for their core activities.

Also outsourcing to developing countries proves to be very cost saving for these companies. For example, if any large MNC was to outsource their IT services to India, they would save an average of 30% of the company’s expenses. This is quite a significant difference.

3. Speed

One of the biggest advantages of BPOs is that they increase the speed of the business processes outsourced to them. They have a very good response time and the clients can focus on the core activities. This fragmentation of activities speeds up the whole process and is very important in cases like customer service.

4. Skilled Manpower

When you outsource one of your business activities to a BPO, you are insured of exemplary services provided by skilled manpower. So if you outsource your supply chain management, rest assured your supply chain will be handled by skilled supply chain managers who are experts in their field. Same goes for IT services or accounting etc.

Franchise

Business opportunities are less structured than franchises, so the definition of what constitutes a business opportunity isn’t easy to pin down. In essence, a business opportunity is any package of goods or services that enables the purchaser to begin a business and in which the seller represents that it will provide a marketing or sales plan, that a market exists for the product or service, and that the venture will be profitable.

Here are other key factors:

• A business opportunity doesn’t generally feature the seller’s trademark; buyers operate under his or her own name.
• Business opportunities tend to be less expensive than franchises and generally don’t charge ongoing royalty fees.
• Business opportunities allow buyers to proceed with no restrictions as to geographic market and operations.
• Most business opportunity ventures have no continuing supportive relationship between the seller and the buyer; after the initial package is sold, buyers are on their own.

The Pros

The greatest strength of franchising is its ability to bring independent retailers together using a single trademark and business concept. The benefits of this affiliation are many: brand awareness, uniformity in meeting customer expectations, the power of pooled advertising and the efficiencies of group purchasing.

For the individual owner, there are several advantages to franchising. The ever-present risk of business failure is reduced when the business program has already proved to be successful in the marketplace; the use of an established trademark saves the business owner the cost of creating and advertising a name that customers will recognize; and the advantages of group advertising and purchasing make operations more profitable. In addition, ongoing training creates an instant operational expertise that would otherwise need to be acquired through trial and error. Also, with franchising, expansion seems to come more naturally. Operating a successful franchise may quickly lead to building a second and then a third business, and so on. Fortunes have been built this way.

The Benefits

• Reduction of risk
• Turnkey operation
• Standardized products and systems
• Standardized financial and accounting systems
• Collective buying power
• Supervision and consulting readily available
• National and local advertising programs
• Point-of-sale advertising
• Uniform packaging
• Ongoing research and development
• Financial assistance
• Site selection guidance
• Operations manual provided
• Sales and marketing assistance

M&A

The terms “merger” and “acquisition” are often confused and used interchangeably by business and financial executives. On the face of it, the difference may not really matter since the net result is often the same: Two companies (or more) that had separate ownership are now operating under the same roof, usually to obtain some strategic or financial objective. However, the strategic, financial, tax and even cultural impact of the deal may be very different, depending on how the transaction is structured. Merger refers to two companies joining (usually through the exchange of shares) to become one. Acquisition occurs when one company, the buyer, purchases the assets or shares of another company, the seller, paying in cash, stock or other assets of value to the seller.

In a stock-purchase transaction, the seller’s shares are not necessarily combined with those of the buyer’s existing company. They may be kept separate as a new subsidiary or operating division. In an asset-purchase transaction, the assets to be conveyed by the seller to the buyer become additional assets of the buyer’s company, with the hope and expectation that the value of the assets purchased will, over time, exceed the price paid, enhancing shareholder value as a result of the transaction’s strategic or financial benefits.

Reasons for Merger-mania

There is no single explanation for the current resurgence of merger and acquisition activity, and the full impact on the economy is complex and remains to be seen, but certain themes and trends have emerged. The key reasons deals are getting done are:

• Mergers and acquisitions are clearly more strategically motivated now than were their counterparts of the 1980s and early 1990s. Jobs are often being added, not lost, as a result of these deals. Companies are being built up, not busted up.
• The financing behind deals is sounder and more secure than ever before. Buyers are using their stock as currency and sellers are gladly accepting this form of payment, in lieu of or in addition to cash, which forces both parties to work together on a post-closing basis to truly enhance shareholder value.
• Industry trends. These include rapidly-changing technology (computer industry), (fierce competition (telecommunications and banking), (changing consumer preferences (food and beverage industry), pressure to control costs (healthcare) and reduction in demand, (aerospace and defense contracts).
• Need to transform corporate identity. For example, the airline ValuJet began looking for a merger partner to provide a new image that could offset the negative publicity caused by a major crash and revelations about its spotty safety records.
• Spread risks and costs. Developing new technology (as in the communications and aerospace industries, researching new medical discoveries (medical device and pharmaceutical industries) or gaining access to new sources of energy (oil and gas exploration and drilling) account for a number of recent acquisition and merger deals.
• Develop an international presence and expand market share. This market-penetration strategy is often more cost-effective than trying to build an overseas foothold from scratch.
• Remain competitive or offset seasonal or cyclical market trends. The retail, hospitality, food and beverage, entertainment and financial services industries carried out mergers and acquisitions in response to the consumer’s demand for “one-stop shopping.”
• The IPO boom of the late 1990s in the technology and Internet sectors contributed to the merger and acquisition frenzy. Proceeds from IPOs created large pools of cash earmarked for acquisitions, and sellers became more willing to take the buyer’s stock as currency in the transaction.

Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise.

Government of India has defined women entrepreneurs as an enterprise owned and controlled by a women having a minimum financial interest of 1% of the capital and giving at least 51% of employment generated in the enterprise to women.

Entrepreneurship is necessary to initiate the process of economic development of both developed and developing countries as it is the back bone of economy of any country.

Entrepreneur is a catalytic agent of change. It is also instrumental in sustaining the process of economic development. Every country tries to achieve economic development for prosperity and better life standard of its people. Development has economic, social and political dimensions and is incomplete without the development of women who constitute about 50 per cent of total population. So, contribution of women is essential in economic activities for healthy nation building.

Women Entrepreneurs

In this golden age of globalization, digitalization and start-up booms, India is clearly seeing a revolution vis-à-vis women entrepreneurs. Today’s women entrepreneurs do not come only from the established business families or from the higher-income sections of the population, they come from all walks of life and from all parts of the country.

From running sports media firms to construction companies and security and detective agencies, women are dabbling into fields that have traditionally been bastions of male domination.

The role of women in our society has changed drastically in the past few decades and for the better. Women are now occupying the corporate positions previously regarded as masculine and are outpacing their male counterparts in some areas. The gender stereotypes which were more prevalent in the society decades ago are breaking slowly.

Women bring a different set of perspectives to problem solving that can enhance the quality of the solution. Women bring a unique set of issues and experiences that can help in decision making enhancing the quality of the decision.

Women entrepreneur has been recognized during the last decade as an important untapped source of economic growth. Women entrepreneurs create new jobs for themselves and others and by being different solutions to management. In today Indian scenario when India is turning out to be an economic power house the recent financial crisis which has affected countries has had its impact on the minds of women as they have understood the need to earn more.

In Indian scenario, women have to face many problems in carrying out any economic activities or undertaking any entrepreneurial task. Women have to face various socioeconomic and other problems as entrepreneurs as they are not treated equally to men due to social and cultural traditions.

Now in recent India, it is observed that there has been an increasing trend in number of women-owned enterprises as the result of drastic change in the present world. Women are participating in large number in the present world of business.

Woman Entrepreneurs in India: Importance

It is an extension of kitchen activities. In certain businesses, women entrepreneurs are doing exceedingly well and even they have exceeded their male counterparts. Women are successful not only in law, science, medical, aeronautics and space exploration and even in police and military services, but now they are showing their might even in business and industry. They have proved that they are no less them men in the efficiency, hard-work, or intelligence, provided they are given proper scope.

Women entrepreneurs tend to be highly motivated & self-directed, they also exhibit a high internal locus of control & achievement. Researchers contend that women business owners possess certain specific characteristics that promote their creativity and generate new ideas and ways of doing things.

Why India needs more Women Entrepreneurs

Women entrepreneurs have the unique tendency to build and maintain long-term relationships. They have more effective communicational, organizational and networking skills than their male counterparts.

Moreover their fiscally conservative approach reduces the risk of failure of their organizations. Women entrepreneurs account for improved economic growth and stability within a country. Women entrepreneurs inspire other women to start businesses. This leads to more job creation for women which ultimately helps in reducing the gender gap in the workforce. When women become successful in a field, the next generation of women is more likely to emulate their success.

According to studies, it has been observed that Women are very good entrepreneurs as they can maintain work balance in life. These factors may vary from place to place and business to business but women entrepreneurship is necessary for the growth of any economy whether it is large or small.

It is observable that women entrepreneurs have proved to be a strong driving force in today‘s corporate world. They are competent to balance their duties of both motherhood and entrepreneurship but they comprise of almost half of all businesses owned today. Woman can pick up a job any day, but if she becomes an entrepreneur she can provide a livelihood to 10 more women at least..!!

Highly educated, technically sound and professionally qualified women must be encouraged for managing their own business, rather than being employed in any outlets. The uncultivated talents of young women can be identified, trained and exploited for various types of industries to increase the productivity in the industrial sector as well as the nation. Now a days even after facing so many obstacles The Indian women is now becoming an educated and economically independent.

The word “entrepreneur” is derived from the French verb “entreprendre”, which means ‘to undertake’. This refers to those who “undertake” the risk of new enterprises. An enterprise is created by an entrepreneur. The process of creation is called “entrepreneurship”.

Meaning

Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the enterprise. It is the process of starting a business, a startup company or other organization. The entrepreneur develops a business plan, acquires the human and other required resources, and is fully responsible for its success or failure. Entrepreneurship operates within an entrepreneurship ecosystem.

Definitions

According to A.H.Cole

Entrepreneurship is the purposeful activity of an individual or a group of associated individual, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services.

According to J.A. Timmons

Entrepreneurship is the ability to create and build something from practically nothing.

According to Musselman and Jackson

“Entrepreneurship is the investing and risking of time, money and effort to start a business and make it successful.

Characteristics of Entrepreneurship

1. Economic and dynamic activity

Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of scarce resources. Since this value creation activity is performed continuously in the midst of uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force.

2. Related to Innovation

Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted. In other words, entrepreneurship is a continuous effort for synergy (optimization of performance) in organizations.

3. Profit Potential

“Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity.

4. Risk Bearing

The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation and implementation of new ideas. New ideas are always tentative and their results may not be instantaneous and positive. An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period (time gap between the conception and implementation of an idea and its results), an entrepreneur has to assume risk. If an entrepreneur does not have the willingness to assume risk, entrepreneurship would never succeed.

5. Skillful Management

Entrepreneurship involves skillful management. The basic managerial skill is the most important characteristic feature of entrepreneurship. For effective management of an enterprise, the role of an entrepreneur is to initiate and supervise design of organization improvement projects in relation to upcoming opportunities is very much important.

6. Accepting Challenges

Entrepreneurship means accepting challenges amidst risk and uncertainty. While accepting entrepreneurship as a career the entrepreneur accepts the challenges of all odds and puts his efforts to convert the odds into viable business opportunities by pooling together the resources of building and running the enterprise.

7. Goal-Oriented Activity

The entrepreneur who creates and operates enterprises seeks to earn profits through satisfaction of needs of consumers; hence, entrepreneurship is a goal-oriented activity. Entrepreneurship emphasizes results, achievements and targets achieved. It is work done not imaginary plans or paper decisions. Hence entrepreneurship is a goal-oriented activity.

8. Value Creation

Next, we find that the process of creating value is a characteristic in describing entrepreneurship. Through entrepreneurship, new products, services, transactions, approaches, resources, technologies, and markets are created that contribute some value to a community or marketplace. We can also see value created when, through entrepreneurship; resources are transformed into outputs such as products or services. During this transformation process, value is created because the entrepreneur is fashioning something worthwhile and useful. Drucker says, “Until entrepreneurial act, every plant is a seed and every mineral just another rock.

9. Dynamic Process

Entrepreneurship is a dynamic function. Entrepreneur thrives on changes in the environment, which bring useful opportunities for business. An entrepreneur deals proactively with changing markets ­and environment. He looks at the changes as the source of market advantages, not as a problem. Uncertainties are market opportunities for him. He capitalizes on fleeting market anomalies.

10. Uniqueness

Other characteristic found in entrepreneurship is that of uniqueness. Entrepreneurship involves new combinations and new approaches with which entrepreneurs are willing to experiment. Through Entrepreneurship unique products are created and unique approaches are tried. Entrepreneurship isn’t merely imitating what others have done. It’s doing something new, something untested and untried – something unique.

11. Interest and Vision

The first factor for entrepreneurial success is interest. Since entrepreneurship pays off according to performance rather than time spent on a particular effort, an entrepreneur must work in an area that interests her. Otherwise, she will not be able to maintain a high level of work ethic, and she will most likely fail. This interest must also translate into a vision for the company’s growth. Even if the day-to-day activities of a business are interesting to an entrepreneur, this is not enough for success unless she can turn this interest into a vision of growth and expansion. This vision must be strong enough that she can communicate it to investors and employees.

12. Risk and Rewards

Entrepreneurship requires risk. The measurement of this risk equates to the amount of time and money you invest into your business. However, this risk also tends to relate directly to the rewards involved. An entrepreneur who invests in a franchise pays for someone else’s business plan and receives a respectable income, while an entrepreneur who undertakes ground breaking innovations risks everything on an assumption that something revolutionary will work in the market. If such a revolutionary is wrong, she can lose everything. However, if she is right, she can suddenly become extremely wealthy.

Entrepreneurship development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programs. The whole point of entrepreneurship development is to increase the number of entrepreneurs.

By doing this, the pace at which new businesses or ventures are made gets better. On a wider level, this makes room for employment and improves the economy of a business or country. The steps below will explain how to create an effective entrepreneurship development program and how to go about enhancing it.

1. Outline the objectives of the program and focus on the venture development

Entrepreneurship development aims at individuals who want to start or possibly expand a business. Entrepreneurship development also focuses a lot on enhancing the ideas and potential of an entrepreneur.

The aims of a program have to be clearly explained otherwise the program will never reach its full potential. The development of a venture also has to be outlined in the program. Without these two, there will be no clear goal.

2. Select educated people who have high entrepreneurial potential

An entrepreneurship development program requires that various people be selected. However, most programs tend to look for a specific group of educated people rather than target everyone. Ideally, you have to look at the education and traits that you are looking for, in an entrepreneur, and match them with the people who have applied for the program.

Most people say that public funds should be spent on people who need the most help. The resources of an entrepreneurship development program are usually (and unfortunately) limited. It is hence better to choose people who will prove to be really useful and benefit the entire community.

3. Select uneducated people who have high entrepreneurial potential

A development project on women’s entrepreneurship in Nepal was recently conducted. It was found that women who couldn’t meet the essential needs of their family or themselves were usually more eager to learn about different ways to earn money as compared to women who were better off. However, such women usually face many problems.

Even though such women are not educated, they have great entrepreneurship potential because they have the right motivation. Such people need to be aided by assistance packages where training can be given on entrepreneurship. This will instill confidence and teach them the skills they need in order to provide for their family.

4. Identify the local market and search for people who have potential in it

Entrepreneurship development programs should first identify the local market and aid potential entrepreneurs who know a lot about it. These people need to be able analyze and then design unique ideas based off the needs of their surroundings.

By concentrating on select local entrepreneurs, the effects of the program can be easily and quickly seen within the community. Later on, programs can help improve their knowledge in their sector. In fact, it is creativity and the thirst for innovation that truly matters rather than the market’s size. In later programs, the introduction of new products and product features can be added. This will add value and increase the size of the market

5. Provide support through private sector-based organizations

Support should be obtained from private organizations that are both financial and knowledge-based. This helps reduce the cost of the entrepreneurship development program and increases its effectiveness.

Private organizations that could support entrepreneurship development programs include universities, consulting companies and various NGOs. Large enterprises are also encouraged to support entrepreneurship development programs as this their sponsorship that will help reduce unemployment.

6. Provide an easy yet detailed methodology that will help entrepreneurs improve in the short and long-run

Entrepreneurial development programs aim at being simple to understand and teach skills that entrepreneurs can use after the program. It also contains courses that aim at developing their skills and ideas. These are required if entrepreneurs wish to successfully exploit the local market.

They also need to be taught how to gather the required resources in order to meet the goals of their venture. The program also needs to have outlined methods through which entrepreneurs can improve the performance of their business in the long run.

Entrepreneur development training proves to be highly effective when finance, quality assurance, marketing and productivity are linked to the training program. As an example, when development banks are involved earlier in the process of training, an entrepreneur will easily understand credit processes and the also praises the bank’s business plan.

7. Implement special measures to improve the usefulness of trainers and facilitators

The Success of an entrepreneurship development program also relies on the commitment and quality of the many facilitators and trainers. Any trainer or facilitator in the program needs to understand the culture and lifestyle of the group in order to better integrate themselves and serve the group.

The selection of proper trainers is based on the amount of business experience they have and the how much knowledge they have about their local business environment. Training facilitators can significantly improve their usefulness in tackling the needs of entrepreneurs.

8. The selection of areas for pilot programs must be right

Entrepreneurship development programs are usually too restricted in terms of where it is done and what people are involved in the program. Selecting pilot target areas will usually depend on the ease at which support institutions are available.

It will also depend on the interest people take in entrepreneurial development programs. These facts can never be the same for any two geographical locations and hence must be considered carefully.

9. Launch pilot ED programs and develop as needed

Analyzing pilot feasibility is an effective way of launching a major entrepreneurship development program. If the program shows signs of high promise, it can be launched on a national level. By relying on the sponsors for support rather than donor support, the program will be able to expand past local development while maintaining high quality. This is especially important when the support of donors starts to fade.

10. A successful entrepreneurship development program requires government policies

Entrepreneurship helps the economy of a country grow and creates new jobs. Government policies usually have a substantial impact on the number of entrepreneurs in a country.

While there are many governments that say they do support entrepreneurial businesses, they usually do not have many specific policies and programs that effectively support entrepreneurial development.

Socio-Cultural

Social factors can go a long way in encouraging entrepreneurship. In fact it was the highly helpful society that made the industrial revolution a glorious success in Europe. Strongly affect the entrepreneurial behavior, which contribute to entrepreneurial growth. The social setting in which the people grow, shapes their basic beliefs, values and norms.

The main components of social environment are as follows:

1. Caste Factor

There are certain cultural practices and values in every society which influence the’ actions of individuals. These practices and value have evolved over hundred of years. For instance, consider the caste system (the varna system) among the Hindus in India. It has divided the population on the basis of caste into four division. The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade) and the Shudra (artisan): It has also defined limits to the social mobility of individuals.

By social mobility’ we mean the freedom to move from one caste to another. The caste system does not permit an individual who is born a Shridra to move to a higher caste. Thus, commercial activities were the monopoly of the Vaishyas. Members of the three other Hindu Varnas did not become interested in trade and commence, even when India had extensive commercial inter-relations with many foreign countries. Dominance of certain ethnical groups in entrepreneurship is a global phenomenon

2. Family Background

This factor includes size of family, type of family and economic status of family. In a study by Hadimani, it has been revealed that Zamindar family helped to gain access to political power and exhibit higher level of entrepreneurship.

Background of a family in manufacturing provided a source of industrial entrepreneurship. Occupational and social status of the family influenced mobility. There are certain circumstances where very few people would have to be venturesome. For example in a society where the joint family system is in vogue, those members of joint family who gain wealth by their hard work denied the opportunity to enjoy the fruits of their labor because they have to share their wealth with the other members of the family.

3. Education

Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with day-to-day problems. In any society, the system of education has a significant role to play in inculcating entrepreneurial values.

In India, the system of education prior to the 20th century was based on religion. In this rigid system, critical and questioning attitudes towards society were discouraged. The caste system and the resultant occupational structure were reinforced by such education. It promoted the idea that business is not a respectable occupation. Later, when the British came to our country, they introduced an education system, just to produce clerks and accountants for the East India Company, The base of such a system, as you can well see, is very anti-entrepreneurial.

Our educational methods have not changed much even today. The emphasis is till on preparing students for standard jobs, rather than marking them capable enough to stand on their feet.

4. Attitude of the Society

A related aspect to these is the attitude of the society towards entrepreneurship. Certain societies encourage innovations and novelties, and thus approve entrepreneurs’ actions and rewards like profits. Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot take root and grow. Similarly, some societies have an inherent dislike for any money-making activity. It is said, that in Russia, in the nineteenth century, the upper classes did not like entrepreneurs. For them, cultivating the land meant a good life. They believed that rand belongs to God and the produce of the land was nothing but god’s blessing. Russian folk-tales, proverbs and songs during this period carried the message that making wealth through business was not right.

5. Cultural Value

Motives impel men to action. Entrepreneurial growth requires proper motives like profit-making, acquisition of prestige and attainment of social status. Ambitious and talented men would take risks and innovate if these motives are strong. The strength of these motives depends upon the culture of the society. If the culture is economically or monetarily oriented, entrepreneurship would be applauded and praised; wealth accumulation as a way of life would be appreciated. In the less developed countries, people are not economically motivated. Monetary incentives have relatively less attraction. People have ample opportunities of attaining social distinction by non-economic pursuits. Men with organizational abilities are, therefore, not dragged into business. They use their talents for non-economic end.

Political

Political factors play a huge role in the development of entrepreneurship in a given geographical area. This is because politicians decide the type of market that is in place. The market could be capitalistic, communist or some countries have adopted a mixed economy. Each of these three markets has very different implications for the way in which entrepreneurs are required to function. Capitalism requires breakthrough innovation whereas communism requires entrepreneurs to be well connected with the political class. Therefore, it has been observed that the more capitalistic any country is, the more entrepreneurship flourishes in the region.

Economic

Economic environment exercises the most direct and immediate influence on entrepreneurship. This is likely because people become entrepreneurs due to necessity when there are no other jobs or because of opportunity.

The economic factors that affect the growth of entrepreneurship are the following:

1. Capital

Capital is one of the most important factors of production for the establishment of an enterprise. Increase in capital investment in viable projects results in increase in profits which help in accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the easy availability of funds for investment.

Availability of capital facilitates for the entrepreneur to bring together the land of one, machine of another and raw material of yet another to combine them to produce goods. Capital is therefore, regarded as lubricant to the process of production.

France and Russia exemplify how the lack of capital for industrial pursuits impeded the process of entrepreneurship and an adequate supply of capital promoted it.

2. Labor

Easy availability of right type of workers also effect entrepreneurship. The quality rather than quantity of labor influences the emergence and growth of entrepreneurship. The problem of labor immobility can be solved by providing infrastructural facilities including efficient transportation.

The quality rather quantity of labor is another factor which influences the emergence of entrepreneurship. Most less developed countries are labor rich nations owing to a dense and even increasing population. But entrepreneurship is encouraged if there is a mobile and flexible labor force. And, the potential advantages of low-cost labor are regulated by the deleterious effects of labor immobility. The considerations of economic and emotional security inhibit labor mobility. Entrepreneurs, therefore, often find difficulty to secure sufficient labor.

3. Raw Materials

The necessity of raw materials hardly needs any emphasis for establishing any industrial activity and its influence in the emergence of entrepreneurship. In the absence of raw materials, neither any enterprise can be established nor can an entrepreneur be emerged

It is one of the basic ingredients required for production. Shortage of raw material can adversely affect entrepreneurial environment. Without adequate supply of raw materials, no industry can function properly and emergence of entrepreneurship to is adversely affected.

In fact, the supply of raw materials is not influenced by themselves but becomes influential depending upon other opportunity conditions. The more favorable these conditions are, the more likely is the raw material to have its influence of entrepreneurial emergence.

4. Market

The role and importance of market and marketing is very important for the growth of entrepreneurship. In modern competitive world no entrepreneur can think of surviving in the absence of latest knowledge about market and various marketing techniques.

The fact remains that the potential of the market constitutes the major determinant of probable rewards from entrepreneurial function. Frankly speaking, if the proof of pudding lies in eating, the proof of all production lies in consumption, i.e., marketing.

The size and composition of market both influence entrepreneurship in their own ways. Practically, monopoly in a particular product in a market becomes more influential for entrepreneurship than a competitive market. However, the disadvantage of a competitive market can be cancelled to some extent by improvement in transportation system facilitating the movement of raw material and finished goods, and increasing the demand for producer goods.

5. Infrastructure

Expansion of entrepreneurship presupposes properly developed communication and transportation facilities. It not only helps to enlarge the market, but expand the horizons of business too. Take for instance, the establishment of post and telegraph system and construction of roads and highways in India. It helped considerable entrepreneurial activities which took place in the 1850s.

Apart from the above factors, institutions like trade/ business associations, business schools, libraries, etc. also make valuable contribution towards promoting and sustaining entrepreneurship’ in the economy. You can gather all the information you want from these bodies. They also act as a forum for communication and joint action.

Personal

The man behind the entrepreneurship is an action-oriented and highly motivated individual who is ready to achieve goals.

Kirzner (1973) observes entrepreneurs as; “one who perceives what others have not seen and acts upon that perception”. Thus, entrepreneurs take the economy and the society that is the whole civilization to the state of progress and prosperity. Taking this into consideration we can describe the significance or importance of entrepreneurship which is stated below.

9 importance of entrepreneurship are:

• Growth of Entrepreneurship.
• Creation of job opportunities.
• Impact on community development.
• The consequence of business failure.
• Political and economic integration of outsiders.
• Spawns entrepreneurship.
• Enhances the standard of living.
• Promotes research and development.

1. Growth of Entrepreneurship

Entrepreneurship the advent of new venture particularly small ventures to materialize the innovative ideas of the entrepreneurs.

Thus, the growth or establishment of small enterprises ii the specific contribution of entrepreneurship in every economy of the world.

The statistics reveal that in USA economy nearly half a million small enterprise is established every year. Our country is not an exception in this regard.

2. Creation of job opportunities

Entrepreneurship firms contributed a large share of new jobs. It provides entry-level jobs so necessary fur training or gaining experience for unskilled workers.

The small enterprises are the only sector that generates a large portion of total employment every year.

Moreover, entrepreneurial ventures prepare and supply experienced labor to large industries.

3. Innovation

Entrepreneurship is the incubator of innovation. Innovation creates disequilibria in the present state of order.

It goes beyond discovery and does implementation and commercialization, of innovations.

“Leapfrog” innovation, research, and development are being contributed by entrepreneurship.

Thus, entrepreneurship nurses innovation that provides new ventures, products, technology, market, quality of good, etc. to the economy that increases Gross Domestic Products and standard of living of the people.

4. Impact on community development

A community is better off if its employment base is diversified among many small entrepreneurial firms.

It promotes abundant retail facilities, a higher level of homeownership, fewer slums, better, sanitation standards and higher expenditure on education, recreation, and religious activities.

Thus, entrepreneurship leads to more stability and a higher quality of community life.

5. The consequence of business failure

The collapse of the large industry almost has irresistible damage to the development of the state and the state of the economy and the financial condition of the relevant persons.

The incumbents lost their jobs: suppliers and financial institutions face a crisis of recovery.

Customers are deprived of goods, services, and government losses taxes. This could not happen in the case of failure of entrepreneurship.

There shall be no measurable effect upon the economy and no political repercussions too.

6. Political and economic integration of outsiders

Entrepreneurship is the most effective way of integrating those who feel disposed of and alienated into the economy.

Minorities, migrants, and women are safely integrated into entrepreneurship that will help to develop a well-composed plural society.

7. Spawns entrepreneurship

Entrepreneurship is the nursing ground for new inexperienced adventurists.

It is the field where a person can start his/her idea of the venture, which may be ended up in a giant enterprise. All the large industrial ventures started as a small entrepreneurial enterprise.

Therefore, entrepreneurship provides a wide spectrum of ventures and entrepreneurs in every economy. The vast open arena of entrepreneurship thus acts as an incubator to entrepreneurs.

8. Enhances the standard of living

The standard of living is a concept built on an increase in the amount of consumption of a variety of goods and services over a particular period by a household.

So it depends on the availability of diversified products in the market. Entrepreneurship provides enormous kinds of a product of various natures by their innovation.

Besides, it increases the income of the people who are employed in entrepreneurial enterprises.

That also capable employed persons to consume more goods and services. In effect, entrepreneurship enhances the standard of living of the people of a country.

9. Promotes research and development

Entrepreneurship is innovation and hence the innovated ideas of goods and services have to be tested by experimentation.

Therefore, entrepreneurship provides funds for research and development with universities and research institutions. This promotes the general development, research, and development in the economy.

Entrepreneurship is the pioneering zeal that provides events in our civilization.

The role and significance of an entrepreneur are explained below :

1. Bringing Economic Growth and Prosperity: Entrepreneur bring economic growth and prosperity in the country through generation of employment opportunities, capital and wealth creation, increasing per capita income and GDP, improvement in quality of life by raising the standard of living, growth of infrastructural facilities, forward and backward linkages in society, development of backward regions, economic independence. George gilder observes, “The ‘heroic creativity of entrepreneur came to seem essential to our economic well-being in a global economy”. Baumback and Mancuso write, “In underdeveloped nations, entrepreneurs often hold the key to economic growth for a whole society. So entrepreneur is not a dirty word or a fast buck opportunist, but, rather the backbone of the capitalist system”.
2. Brining Social Stability and Balanced Regional Development: Entrepreneurs play a crucial and unique role in bringing about social stability and balanced regional development through absorption of workforce in industries, removal of poverty, improving health and education facilities, creating fair competition, equitable distribution of income, creation of social infrastructures, empowering women and weaker sections of the society and supply of qualitative goods and services Although entrepreneurs are criticized as self interested exploiters, Adam Smith, while recognizing that they do some good for society, partly reflected this view when he wrote in The Wealth of Nations: “In spite of their natural selfishness and rapacity, though they mean only their convenience, though the sole end which they propose from the labours of all the thousands they employ be the gratification of their own vain and insatiable desires they are led by a hidden hand, and without intending it, without knowing it, advance the interest of society”.
3. Innovator in Economic Growth: by bringing new ideas, combinations, products techniques, organizations, new markets, making full use of technical knowledge, balanced growth, systematic innovation, technological advancement, implementation of mechanical skills, an entrepreneur play very crucial role in encouraging entrepreneurship and economic development. Peter Drucker writes, “Just as management has become the specific organ of all contemporary institutions and the integrating organ of our society of organizations, so innovation and entrepreneurship have to become an integral life-sustaining activity in our organizations, our economy, and our society”. He further says that the emergence of a truly entrepreneurial economy is the most significant and hopeful event that have occurred in recent economic and social history.
4. Creation of Employment Opportunities: Entrepreneurs play a significant role in generation of employment opportunities by establishing new units in manufacturing, trading and service sectors, laying emphasis on small scale industries, utilizing the surplus labour force in varied industrial and/or service activities, upholding self-employment as a core objective. Entrepreneur integrates resources and technologies into profitable business ventures and creates job opportunities.
5. Increase Productivity with Modern Production System: Play an important role in raising productivity. John Keudrick writes, “Higher productivity is chiefly a matter of improving production techniques, and this task is the entrepreneurial function par excellence”. Two keys to higher productivity are research and development and investment in new plant and machinery. But there is a close link between R & D and investment programmes, with a higher entrepreneurial input into both”. George Gilder in The Spirit of Enterprise said that: “Entrepreneurs are innovators who evoke demand’. They are makers of markets, creators of capital, and developers of opportunity and producers of new technology. They seek the unique product, the marketing breakthrough, the startling new, feature or the novel design. They change technical frontiers and reshape public desires. They create wealth and employment. They take exception to the received view that companies should be market led. They lead the market”.

6. Export Promotion and Import Substitution: Liberalization, privatization and globalization [LPG] has opened the arena of export promotion and import substitution to entrepreneurs by establishing industries producing import substitution goods, establish new industries, especially for export, products, exploration of new global markets, earning foreign exchange reserves, utilizing the available productive resources, achieving self-reliance in production of as many goods as possible, entrepreneur, are playing a pivot role in export promotion and import substitution.
7. Entrepreneur Plays a Role of Catalytic Agent: As Joseph Schumpeter says, entrepreneur’s task is “creative destruction”. He destroys to create new things. He changes and transmutes values. He searches change and responds to it. He is a change creator. Ralph Harwitz writes in his book Realities of Profitability’, “The entrepreneur makes a happening, wants piece of action, is the growth man. Without him there is no happening, no action, and no growth”.
8. Augmenting and Meeting Local Demands: Entrepreneurs also play a significant role in augmenting local demands and meeting them satisfactorily. Towards this entrepreneurs focus their attention to manufacture service through indigenous technology, skill, resources and experiences.