entrepreneurial class and socio-economic environment

8/12/2019 Entrepreneurial Class and Socio-economic Environment

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ENTREPRENEURIAL CLASS AND

SOCIO-ECONOMIC ENVIRONMENT


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Emergence of

Entrepreneurial Class

in India


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Emergence of Entrepreneurial Class in India

After the Second World War, concern for economicdevelopment became all-pervasive.

There was a growing concern for economicdevelopment and this strengthened interest inentrepreneurship with primary focus on exploring

practical measures to augment the supply ofentrepreneurs, i.e. persons with competence andaptitude to initiate, nurture and expand industrialenterprises.

This resulted in the belief in education and training to

inculcate and develop entrepreneurial capabilities inpeople so that they could set up their own enterprises.Subsequently programmes directed towards this goalwere conceptualized.


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Emergence of Entrepreneurial Class in India

Several entrepreneurial phases in India have passed since independence. A slowpace of development was reflected in the late 1950s and early 1960s, as theentire economy was changing from an agro based economy to an industrializedeconomy.

Soon after that the upcoming entrepreneurs got support from the government aswell. A number of SSI sprouted up in late 1960s and 1970s. Here an intensivemovement was initialized for further promotion of entrepreneurship.

Finally, in 1980 India was able to liberalize imports and began with small andmedium scale entrepreneurs.

Further, the economic reforms were introduced in 1990. It was a kind ofdisillusion for the budding Indian entrepreneurs and in the 2000 the

entrepreneurial scenario has undergone a vast change.

Now India is taking part in global entrepreneurship as well.


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ENTREPRENEURSHIP IN INDIA Entrepreneurship has been embedded in the Indian

genius and is a part of its tradition.

To quote the renowned economist, T.N. Srinivasan,India has been an entrepreneurial societywe hadthe entrepreneurial skill but suppressed it for too long

a time and now it is thriving. The salience of Entrepreneurship in India has

intensified in recent times, particularly with the rise inknowledge-intensive services. New entrepreneurswho do not belong to traditional business

communities have begun to emerge in large numbers. Entrepreneurship has grown rapidly, visibly so,

creating wealth and generatingemployment,especially in the past twenty years.


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Entrepreneurship Pyramid The Entrepreneurship Pyramid in India (in terms of sectors and

numbers of people engaged) is made up of the following:

Level 1: Agriculture and other activities: Crop production, Plantation,

Forestry, Livestock, Fishing, Mining and Quarrying.

Level 2: Trading services: Wholesale and retail trade; Hotels andrestaurants

Level 3: Old economy or traditional sectors: Manufacturing, Electricity,Gas and Water supply

Level 4: Emerging sectors (including knowledge intensive sectors):IT,Finance, Insurance and Business services, Construction, Community,

Social & Personal Services, Supply Chain, Transport-Storage-Communications etc.


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CAUSES OF SLOW GROWTH OF

ENTREPRENEURSHIP

1. Shortage of raw materials and power

2. Inadequate financial resources

3. Old techniques of production and lack of latest

technical knowledge4. Lack of trained personnel

5. Difficulties in marketing

6. Imperfect management

7. Lack of expert technical advice and guidance


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FACTORS FAVOURING ENTREPRENEURSHIP

INDEPENDENT WAY OF LIFE

ACHIEVEMENT ORIENTATION

IMPLEMENTATION OF IDEAS

INSECURITY OF JOB

FAMILY BUSINESS


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ENTREPRENEURSHIP & ECONOMIC FACTORS IN

INDIA

1. GOVERNMENTS ECONOMIC POLICY TOWARDSENTREPRENEURS:

A. Reservations of items for the exclusive production of small scale sector.

B. Giving concessions( excise duty, sales tax etc)

C. Preference by Government department in th purchase of items produced bysmall scale

D. Supply of scarce raw materials to the small scale units at reasonable prices

E. Setting up of common testing facilities centers for the benefit of clusters ofgroup of small scale units in a particular region

F. Assistance by the State Scale Industrial Development Corporation

Preference in land allocation and power connection

G. Setting up of industrial estates and industrial shedsH. Provision of technical assistance

I. Provision of financial assistance through commercial banks and specializedfinancial institutions such as SIDBI, NSIC, SFC etc


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INDIA

2. INSTITUTIONAL FINANCE3.INDUSTRIAL ESTATES: An industrial estate may be

defined as an area developed systematically forsetting industrial units by the entrepreneurs inaccordance with the industrial policy of the

Government .Objectives of Industrial estates are:

a. Promotion of micro, small and medium sizeindustrial units in undeveloped and less developedareas

b. Decentralization of industryc. Achievement of balanced regional development

d. Removal of concentration of industries in big cities


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INDIA

4. Availability of raw materials

5. Availability of Machinery

6. Marketing Facilities


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ROLE OF ENTREPRENEURSHIP IN INDIAN

ECONOMY

a. increasing opportunities for employment(comprising various competitive skill sets);

b. additional wealth creation;

c. introduction and dissemination of new methods

and technology; and

d. overall economic growth


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WOMENENTREPRENEURS


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WOMEN ENTREPRENEURS

It represents that section of the female population

who venture out into industrial activities like

manufacturing, assembling, job works,

repairs/servicing and other businesses.

Women entrepreneurs can also be defined as those

entrepreneurs who have taken initiative in

promoting and running an enterprise by having a

controlling interest in that particular enterprise.


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WOMEN ENTREPRENEURS

As defined by Central Government in 1988, women

entrepreneur enterprise is defined as an enterprise

owned and administered by a women entrepreneur with

a minimum financial interest of 51% in the share capital

and giving at least 50% employment to women.

Revised definition (1991),women enterprise is defined

as a small scale industrial unit/industry related service or

business enterprise managed by one or more women

entrepreneurs in proprietary concerns in which she/they

individually or jointly have a share of capital of not less

than 51% as partners/shareholders/directors of private

limited companies/members of cooperative societies.


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TRAITS OF WOMEN

ENTREPRENEURS

IMAGINATION

ATTRIBUTE TOWORK HARD

PERSISTENCE

ABILITY & DESIRETO TAKE RISK


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PROBLEMS FACED BY WOMEN

ENTREPRENEURS

1.Male Dominated

2. Lack of Entrepreneurial aptitude

3.Financial Problems

4. Marketing Problems5.Family Conflicts

6. Higher cost of production

7.Social Barrier

8. Lack of self-confidence

9. Lack of information


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REASONS FOR GROWTH OF WOMEN ENTREPRENEURS IN

INDIA

MOTIVATIONAL FACTORS

a. Economic security

b. Self-actualization

c. Independence of actiond. Self-identity & social status

e. Utilization of education and skills

f. Role model to others

g. Employment generation

h. Continuation of family occupation


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REASONS FOR GROWTH OF WOMEN ENTREPRENEURS IN

INDIA

FACILITATING FACTORS

a. Financial facilities resources

b. Government policies and programs

c. Support of family membersd. Network of contacts

e. Experienced and skilled people at work


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STEPS TAKEN BY GOVERNMENT TO PROMOTE WOMEN

ENTREPRENEURS

In 1970s, there was a shift from welfare approach to

development approach that recognized the mutually

reinforcing nature of the process of development.

In 1980s,a multi-disciplinary approach with an emphasis

on three core areas of health, education andemployment.

During this period, priority was given to implementation

of programmes for women under different sectors of

agricultural and allied activities of dairying, poultry,

animal husbandry, handlooms, handicrafts etc.

1990s began with training-cum-employment

programmes for women with the objective of making

them economically independent and self-reliant.


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EIGHTH FIVE-YEAR PLAN

1. Women in Agriculture was launched in 1993 to train

women farmers in agricultural and allied activities.

2. Women cooperatives with financial assistance

3. The Khadi and Village Industries Commission (KVIC)

took measure to generate more employmentopportunities for women.

4.Variuos schemes to develop entrepreneurial skills in

women were launched such as Prime Minister Rojgar

Yojana, EDPs , Integrated Rural DevelopmentProgramme (IRDP), Jawahar Rojgar Yojana (JRY),

Training of Rural Youth for Self-Employment (TRYSEM),

Development of Women and children in Rural Areas

(DWCRA) etc.


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ASSOCIATIONOFLADYENTREPRENEURSOFANDHRAPRADESH

WASCONSTITUTEDIN1993.

The Association had following objectives:

a. To bring together women entrepreneurs and work

together in order to face challenges posed by

entrepreneurial activities.

b. Identifying existing women entrepreneurs, bringing

them together and motivating them to take up

industrial activities.

Activities of the Association included provision for

marketing, finance and technological facility. The

association also established a Centre of

Entrepreneurship Development


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NINTH FIVE-YEAR PLAN

A special strategy called Women Component Plan wasadopted:

a. Not less than 30% of funds/benefits were earmarked in allwomen-related sectors

b. Women Development Corporations (WDC) would provide

forward and backward linkages of credit and marketingfacilities to women in small and tiny sectors.

c. Trade related Entrepreneurship Assistance & Development(TREAD) was introduced in 1998 administered by theMinistry of SSI. The programme aimed at economic

empowerment of women in rural, urban and semi-urbanareas.

d. Swaranjayanti Gram Swarozgar Yojana (SGSY) andSwaran Jayanti Shahari Rozgar Yojana (SJSRY) sponsoredby government provides reservation for women, encouragegroup activities and also assist women entrepreneurs.


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NINTH FIVE-YEAR PLAN

SIDBI also launched several programmes such as

Mahila Udyam Nidhi (MUN), Mahila Vikas Nidhi

(MVN),Micro Credit Schemes (MSC), Women

Entrepreneurial Development Programmes (EDPs),

Marketing Development Fund etc.

Industrial Estates for Women Entrepreneurs were

developed to give special encouragement and

recognition to the women entrepreneurs. The

Government of Andhra Pradesh has supported thesetting up of industrial estates exclusively for

women .


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INDUSTRIAL ESTATES FOR WOMEN ENTREPRENEURS

This program aimed at the following objectives:

a. Setting up of electronics, garments, food

processing, printing, packaging, bio-technology,

handmade paper, small engineering units, jute

accessories, herbals, computer software and

hardware.

b. Encouraging export-oriented units like computer

hardware and software.

c. Software technology park for women within the

industrial estates.


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CONSORTIUM OF WOMEN ENTREPRENEURS OF INDIA

CWEI is a common platform to help the women

entreprenuers in finding innovating techniques of

production, marketing and financing.

CWEI consist of

(a) Non-Government Organisations(NGOs)

(b) Voluntary organisations

(c) Self-Help groups

(d) Institutions(e) Individual Enterprises


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WOMEN ENTREPRENEURS ASSOCIATIONS

National Alliance of Young Entrepreneurs (NAYE) has aseparate wing for women entrepreneurs. It seeks to createunity among female entrepreneurs and encourages them toparticipate actively in the countrys industrialization.

Indian Council of Women Entrepreneurs: is rendering valuableservices for the promotion of women entrepreneurship.

FICCI Ladies Organization: was constituted in 1986 and hasaround 900 members from all over India comprising

entrepreneurs, professionals, executives and housewives.The prime objective of FLO is to promote entrepreneurshipand professional excellence in women and thereby facilitatethe empowerment and uplift of women


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National Commission on Self-Employed Women in

the Informal Sector: the commission has

suggested:

1. State government should earmark plots and

sheds for women entrepreneurs

2. Special infrastructure facilities

3. Grant license on priority basis

4.

Reservations for governments purchase and pricepreferences should be offered


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World Association of Women Entrepreneurs

(WAWE)

Associated Country Women of the World


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ROLE OF WOMEN ENTREPRENEURS

ASSOCIATION

To promote and develop feeling of unity and fraternity To develop self-confidence and hope among women

entrepreneurs

To present the problem of women entrepreneurs before theconcerned authorities

To secure various concessions, subsidies and assistancefor women entrepreneurs.

To conduct Entrepreneurship Development Programmes

To organize seminars and conferences

To secure wider dispersal of entrepreneurship amongwomen

To establish useful contacts for promoting womenentrepreneurship


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entrepreneurial class and socio-economic environment

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