Entrepreneur

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1. INTRODUCTION

a) Entrepreneurship b) Enterprise c) Entrepreneur

a) Entrepreneurship

Entrepreneurship is ubiquitous and is reflected in all the major dimensions of civilization viz. social, political and economic. It involves creativity that is consistent with the healthy edge required to change the basis of competition.

Entrepreneurship is a creative human act involving the mobilization of resources from one level of productive use to a higher level of use. "It is the process by which the individual pursue opportunities without regard to resources currently controlled."

Entrepreneurship involves a willingness to take responsibility and ability to put mind to a task and see it through from inception to completion. Another ingredient of entrepreneurship is sensing opportunities, while others see chaos, contradiction, and confusion. Essence of Entrepreneurship is going against time with maturity and serving as a change agent.

Entrepreneurship is more than simply ―starting a business.‖ The definition of entrepreneurship is, ‗a process through which individuals identify opportunities, allocate resources, and create value.‘ This creation of value is often through the identification of unmet needs or through the identification of opportunities for change. 

It is the entire process a person under goes to set up a business. Entrepreneurship also includes the successful running of the business.

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There are two major aspects to Entrepreneurship. They are the entrepreneur and the enterprise. Thus we can say: Entrepreneur + Enterprise= Entrepreneurship

b) Enterprise

An enterprise is a business. It is an activity whereby individuals organize capital, land and labour in order to create a good or provide a service and generate profits.

c) Entrepreneur

Jean-Baptiste Say, a French economist, is believed to have coined the word "entrepreneur" in the 19th century.

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He defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediary between capital and labour"

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A broader definition by Say: "The entrepreneur shifts economic resources out of lower and into higher productivity and greater yield."

Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome.

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An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome of a product. The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. An Entrepreneur is someone who: 

wishes to take a risk in business.

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brings resources together in order to make a profit.

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recognises an opportunity and is willing to use time, managerial and other skills and money to add to that opportunity and at the same time handle the uncertainties/risks of running a business.

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2. FEATURES OF ENTREPRENEURSHIP

The entrepreneur as an organizer of the process of production is the forerunner of economic development of a country. Entrepreneurship is a wider concept which comprise the following,

1. Scarce human resource

Entrepreneurship is a very scarce human factor as it involves specific talent, organizational capacity, innovative sprit and boldness to bear risk which is not found in every person. In developing countries like India lack of entrepreneurship is a major impediment to development.

2. Heterogeneous factor

Entrepreneurship is a heterogeneous factor of production because efficiency, talents, organizing skills, ability to bear risk, foresights and innovating capacities, etc. vary from entrepreneur to entrepreneur. The nature of enterprise varies with various forms of business organizations like sole trading, partnership, co-operatives, Joint Stock Company and public undertakings. In a small business, the same person may work as an entrepreneur, manager and capitalist.

3. Indispensable factor

In modern business entrepreneur is a very important factor of production as he organizes production of goods & services by coordinating the other factors in an optimum way. He is an organizer & owner of the firm. Production is impossible in his absence.

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4. Intangible factor

Entrepreneurship is an abstract phenomenon. It is intangible. Entrepreneurial efforts cannot be measured in quantitative terms while we can measure in terms of hours of work and number of days. We can calculate the number of individual workers and their contribution to the firm but it is not possible to measure entrepreneurship as the firm itself is the enterprise.

5. Highly mobile

Of all factors entrepreneur possess a higher degree of mobility as he can easily move from one industry to another or from one region to another. An entrepreneur's ability to move from one industry to another depends upon his knowledge, experience and specialization.

6. Cannot be Bought & Sold

Land, labour and capital can be bought and sold in factor markets but it is not possible to deal with entrepreneurs in a factor market. Since enterprise is an intangible factor, it cannot be bought and sold. Hence, like land, labour and capital market there is no entrepreneurial market where entrepreneurship can be bought and sold. Transaction is not possible in case of enterprise. We cannot derive the demand and supply curves in case of entrepreneur. Hence, the Demand and Supply Theory of value cannot be applied to the factor enterprise or organization to determine its price.

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7. Residual reward

Entrepreneurship is a reward in terms of profit which is a residual reward, i.e. an income which is left after meeting all business expenses from the total sales revenue.

Other characteristics include: 

CREATIVE ACTIVITY: it involves innovation of products and techniques by keeping in mind the market.

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DYNAMIC PROCESS: keeps in mind changing external environment.

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PURPOSEFUL ACTIVITY: purposed to earn profits or bring a difference to the market

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INVOLVES RISK: entrepreneurial decisions are vast and cannot be reverted easily and involve great deal of investments.

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3. QUALITIES OF A SUCCESSFULL ENTREPRENEUR

Essentially, an entrepreneur is a person who starts a new business venture. However, we tend to think of entrepreneurs as people who have a talent for seeing opportunities and the abilities to develop those opportunities into profit-making businesses. Are entrepreneurs born or made? The debate still rages, but the current consensus is that successful entrepreneurs share a constellation of personality traits. In other words, some people are naturally more entrepreneurial than others. A common misperception about entrepreneurs is that entrepreneurs are wild risk-takers. Entrepreneurs do take risks, but only calculated ones. One of the abilities successful entrepreneurs share is the ability to evaluate risks. If you're wondering whether or not you have what it takes to be an entrepreneur, you'll find more links to more information about entrepreneurial traits in the sidebar. But remember, you don't need to have all the traits associated with entrepreneurship to be a successful entrepreneur. The main quality you need is a determination to make your business venture succeed. The rest of the qualities necessary to being a successful entrepreneur you can learn.

By studying their experiences and following the same rules, any aspiring entrepreneur can improve his or her likelihood of success.

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Commitment

Successful founders commit to the ideal of entrepreneurship itself, rather than to a single business model or product. That flexibility helps them react nimbly to market feedback, abandoning products and business models that aren‘t working.

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2.

Anticipator for problems

Most entrepreneurs start by choosing the product they want to make or the service they want to provide, then trying to convince the market to buy it. It makes more sense to start a business the other way around: Identify what the market needs first, and then develop a solution.

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Innovator and focused on scale

Despite what we‘re taught, most entrepreneurs launch businesses in unattractive, static fields, and offer no competitive advantage. The most successful entrepreneurs combine their deep knowledge of customers‘ needs with a commitment to achieving outsized scale and innovation.

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Assembler of founding teams

Teams of two to three co-founders who complement and respect each other generally forecast greater success than companies founded by individuals, or those with larger teams. This is especially effective when the founders have worked together successfully before.

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“first among equals” policy for co-founders

Notwithstanding the previous rule, one of the co-founders in a successful venture usually proves to be the outsized, driving personality. Quicker decisions and a deeper commitment can lead to a stronger performance when times inevitably turn difficult.

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6.

Managing risk and being prudent

Successful entrepreneurs manage risk so well that launching a new company is not much more risky than most of the other professional choices they could make, and its risk-adjusted return is higher. This requires skill in assembling stakeholders who can survive the losses of the assets they contribute if the worst happens.

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Leader

Most entrepreneurs aspire to grow their small startups into large ventures, but different team sizes require different kinds of leadership. The most successful entrepreneurs read books, hire executive coaches, and recognize that continuously learning to lead is a must.

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Salesman

The issue of selling is a subject most entrepreneurs dread. All businesses thrive on profit, and profit is a derivative of sales

As entrepreneurs: 

Selling of business ideas to investors with an intention to raise venture capital.

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Selling to customers to generate profits and build brand loyalty.

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Selling to the suppliers to prove the credit worthiness.

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Selling the vision to employees to enable them to align with our purpose.

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Selling the dream and mission to highly skilled professionals to make them join our team.

Ethical, effective sales technique is one of the most important attributes within new ventures, but also one of the least common. The most successful entrepreneurs understand that sales requires a balance between making compelling promises and ensuring that they can deliver on them.

9. Being Persistent Persistence means redefining failure. Successful entrepreneurs recognize their legitimate failures, and can talk about them reflectively. That said, they also focus overcoming, learning, and ensuring that failure is never the end of the story.

10. Time, not money, is the scarcest resource Successful entrepreneurs sometimes get rich, but they are also deeply motivated by the desire to accomplish worthwhile things—to create, to make a difference in people‘s lives, and to leave a legacy for subsequent generations. The most successful embrace entrepreneurship not just as a way of doing business, but as a way of life.

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4. RULES OF ENTREPRENEURSHIP

1. Do what you enjoy

What you get out of your business in the form of personal satisfaction, financial gain, stability and enjoyment will be the sum of what you put into your business. So if you don't enjoy what you're doing, in all likelihood it's safe to assume that will be reflected in the success of your business--or subsequent lack of success. In fact, if you don't enjoy what you're doing, chances are you won't succeed.

2. Take what you do seriously

You cannot expect to be effective and successful in business unless you truly believe in your business and in the goods and services that you sell. Far too many home business owners fail to take their own businesses seriously enough, getting easily sidetracked and not staying motivated and keeping their noses to the grindstone. They also fall prey to naysayers who don't take them seriously because they don't work from an office building, office park, storefront, or factory. Little do these skeptics, who rain on the home business owner's parade, know is that the number of people working from home, and making very good annual incomes, has grown by leaps and bounds in recent years.

3. Plan everything

Planning every aspect of your home business is not only a must, but also builds habits that every home business owner should develop, implement, and maintain. The act of business planning is so important because it requires you to analyze each business situation, research and compile data, and make conclusions based mainly on the facts as revealed through the research. Business

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planning also serves a second function, which is having your goals and how you will achieve them, on paper. You can use the plan that you create both as map to take you from point A to Z and as a yardstick to measure the success of each individual plan or segment within the plan.

4. Manage money wisely

The lifeblood of any business enterprise is cash flow. You need it to buy inventory, pay for services, promote and market your business, repair and replace tools and equipment, and pay yourself so that you can continue to work. Therefore, all home business owners must become wise money managers to ensure that the cash keeps flowing and the bills get paid. There are two aspects to wise money management. 1. The money you receive from clients in exchange for your goods and services you provide (income) 2. The money you spend on inventory, supplies, wages and other items required to keep your business operating. (expenses)

5. Ask for the sale

A home business entrepreneur must always remember that marketing, advertising, or promotional activities are completely worthless, regardless of how clever, expensive, or perfectly targeted they are, unless one simple thing is accomplished--ask for the sale. This is not to say that being a great salesperson, advertising copywriting whiz or a public relations specialist isn't a tremendous asset to your business. However, all of these skills will be for naught if you do not actively ask people to buy what you are selling.

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6. Remember it's all about the customer

Your home business is not about the products or services that you sell. Your home business is not about the prices that you charge for your goods and services. Your home business is not about your competition and how to beat them. Your business is all about your customers, or clients, period. After all, your customers are the people that will ultimately decide if your business goes boom or bust. Everything you do in business must be customer focused, including your policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website. In addition, you must know who your customers are inside out and upside down.

7. Become a shameless self-promoter (without becoming obnoxious)

One of the greatest myths about personal or business success is that eventually your business, personal abilities, products or services will get discovered and be embraced by the masses that will beat a path to your door to buy what you are selling. But how can this happen if no one knows who you are, what you sell and why they should be buying? Self-promotion is one of the most beneficial, yet most underutilized, marketing tools that the majority of home business owners have at their immediate disposal.

8. Project a positive business image

You have but a passing moment to make a positive and memorable impression on people with whom you intend to do business. Home business owners must go out of their way and make a conscious effort to always project the most professional business image possible. The majority of home business owners do not have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers. Instead, they must rely on imagination,

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creativity and attention to the smallest detail when creating and maintaining a professional image for their home business.

9. Get to know your customers

One of the biggest features and often the most significant competitive edge the home based entrepreneur has over the larger competitors is the he can offer personalized attention. Call it high-tech backlash if you will, but customers are sick and tired of hearing that their information is somewhere in the computer and must be retrieved, or told to push a dozen digits to finally get to the right department only to end up with voice mail--from which they never receive a return phone call. The home business owner can actually answer phone calls, get to know customers, provide personal attention and win over repeat business by doing so. It's a researched fact that most business (80 percent) will come from repeat customers rather than new customers. Therefore, along with trying to draw newcomers, the more you can do to woo your regular customers, the better off you will be in the long run and personalized attention is very much appreciated and remembered in the modern high tech world.

10. Level the playing field with technology

You should avoid getting overly caught up in the high-tech world, but you should also know how to take advantage of using it. One of the most amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a $50 million company, and nobody knows the difference. Make sure you're keeping up with the high-tech world as it suits your needs.. The best technology is that which helps you, not that which impresses your neighbors.

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11. Build a top-notch business team

No one person can build a successful business alone. It's a task that requires a team that is as committed as you to the business and its success. Your business team may include family members, friends, suppliers, business alliances, employees, sub-contractors, industry and business associations, local government and the community. Of course the most important team members will be your customers or clients. Any or all may have a say in how your business will function and a stake in your business future.

12. Become known as an expert

When you have a problem that needs to be solved, do you seek just anyone's advice or do you seek an expert in the field to help solve your particular problem? Obviously, you want the most accurate information and assistance that you can get. You naturally seek an expert to help solve your problem. You call a plumber when the hot water tank leaks, a real estate agent when it's time to sell your home or a dentist when you have a toothache. Therefore, it only stands to reason that the more you become known for your expertise in your business, the more people will seek you out to tap into your expertise, creating more selling and referral opportunities. In effect, becoming known as an expert is another style of prospecting for new business, just in reverse. Instead of finding new and qualified people to sell to, these people seek you out for your expertise.

13. Create a competitive advantage

A home business must have a clearly defined unique selling proposition. This is nothing more than a fancy way of asking the vital question, "Why will people choose to do business with you or purchase your product or service instead of doing business with a competitor and buying his

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product or service?" In other words, what one aspect or combination of aspects is going to separate your business from your competition? Will it be better service, a longer warranty, better selection, longer business hours, more flexible payment options, lowest price, personalized service, better customer service, better return and exchange policies or a combination of several of these?

14. Invest in yourself

Top entrepreneurs buy and read business and marketing books, magazines, reports, journals, newsletters, websites and industry publications, knowing that these resources will improve their understanding of business and marketing functions and skills. They join business associations and clubs, and they network with other skilled business people to learn their secrets of success and help define their own goals and objectives. Top entrepreneurs attend business and marketing seminars, workshops and training courses, even if they have already mastered the subject matter of the event. They do this because they know that education is an ongoing process. There are usually ways to do things better, in less time, with less effort. In short, top entrepreneurs never stop investing in the most powerful, effective and best business and marketing tool at their immediate disposal--themselves.

15. Be accessible

We're living in a time when we all expect our fast food lunch at the drive-thru window to be ready in mere minutes, our dry cleaning to be ready for pick-up on the same day, our money to be available at the cash machine and our pizza delivered in 30 minutes or it's free. You see the pattern developing--you must make it as easy as you can for people to do business with you, regardless of the home business you operate.

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You must remain cognizant of the fact that few people will work hard, go out of their way, or be inconvenienced just for the privilege of giving you their hard-earned money. The shoe is always on the other foot. Making it easy for people to do business with you means that you must be accessible and knowledgeable about your products and services. You must be able to provide customers with what they want, when they want it.

16. Build a rock-solid reputation

A good reputation is unquestionably one of the home business owner's most tangible and marketable assets. You can't simply buy a good reputation; it's something that you earn by honoring your promises. If you promise to have the merchandise in the customer's hands by Wednesday, you have no excuse not to have it there. If you offer to repair something, you need to make good on your offer. Consistency in what you offer is the other key factor. If you cannot come through with the same level of service (and products) for clients on a regular basis, they have no reason to trust you and without trust, you won't have a good reputation.

17. Sell benefits

Pushing product features is for inexperienced or wannabe entrepreneurs. Selling the benefits associated with owning and using the products and services you carry is what sales professionals worldwide focus on to create buying excitement and to sell, sell more, and sell more frequently to their customers. Your advertising, sales presentations, printed marketing materials, product packaging, website, newsletters, trade show exhibit and signage are vital. Every time and every medium used to communicate with your target audience must always be selling the benefits associated with owning your product or using your service.

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18. Get involved

Always go out of your way to get involved in the community that supports your business. You can do this in many ways, such as pitching in to help local charities or the food bank, becoming involved in organizing community events, and getting involved in local politics. You can join associations and clubs that concentrate on programs and policies designed to improve the local community. It's a fact that people like to do business with people they know, like and respect, and with people who do things to help them as members of the community.

19. Grab attention

Small-business owners cannot waste time, money and energy on promotional activities aimed at building awareness solely through long-term, repeated exposure. If you do, chances are you will go broke long before this goal is accomplished. Instead, every promotional activity you engage in, must put money back in your pocket so that you can continue to grab more attention and grow your business.

20. Master the art of negotiations

The ability to negotiate effectively is unquestionably a skill that every home business owner must make every effort to master. It's perhaps second in importance only to asking for the sale in terms of home business musts. In business, negotiation skills are used daily. Always remember that mastering the art of negotiation means that your skills are so finely tuned that you can always orchestrate a win-win situation. These win-win arrangements mean that everyone involved feels they have won, which is really the basis for building long-term and profitable business relationships.

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21. Design your workspace for success

Carefully plan and design your home office workspace to ensure maximum personal performance and productivity and, if necessary, to project professionalism for visiting clients. If at all possible, resist the temptation to turn a corner of the living room or your bedroom into your office. Ideally, you'll want a separate room with a door that closes to keep business activities in and family members out, at least during prime business and revenue generating hours of the day. A den, spare bedroom, basement or converted garage are all ideal candidates for your new home office. If this is not possible, you'll have to find a means of converting a room with a partition or simply find hours to do the bulk of your work when nobody else is home.

22. Get and stay organized

The key to staying organized is not about which type of file you have or whether you keep a stack or two of papers on your desk, but it's about managing your business. It's about having systems in place to do things. Therefore, you wan to establish a routine by which you can accomplish as much as possible in a given workday, whether that's three hours for a part-time business or seven or nine hours as a full-timer. In fact, you should develop systems and routines for just about every single business activity. Small things such as creating a to-do list at the end of each business day, or for the week, will help keep you on top of important tasks to tackle. Creating a single calendar to work from, not multiple sets for individual tasks or jobs, will also ensure that jobs are completed on schedule and appointments kept. Incorporating family and personal activities into your work calendar is also critical so that you work and plan from a single calendar.

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23. Limit the number of hats you wear

It's difficult for most business owners not to take a hands-on approach. They try to do as much as possible and tackle as many tasks as possible in their business. The ability to multitask, in fact, is a common trait shared by successful entrepreneurs. However, once in a while you have to stand back and look beyond today to determine what's in the best interest of your business and yourself over the long run. Most highly successful entrepreneurs will tell you that from the time they started out, they knew what they were good at and what tasks to delegate to others.

24. Follow-up constantly

Constant contact, follow-up, and follow-through with customers, prospects, and business alliances should be the mantra of every home business owner, new or established. Constant and consistent follow-up enables you to turn prospects into customers, increase the value of each sale and buying frequency from existing customers, and build stronger business relationships with suppliers and your core business team. Follow-up is especially important with your existing customer base, as the real work begins after the sale. It's easy to sell one product or service, but it takes work to retain customers and keep them coming back.

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5. FUNCTIONS OF AN ENTREPRENEUR

"Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation."

- Peter F. Drucker, "The Father of Modern Management"

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An entrepreneur performs a series of functions necessary right from the genesis of an idea up to the establishment and effective operation of an enterprise. He carries out the whole set of activities of the business for its success. He recognises the commercial potential of a product or a service, formulates operating policies for production, product design, marketing and organisational structure. He is thus a nucleus of high growth of the enterprise. According some economists, the functions of an entrepreneur is classified into five broad categories:

a) Risk-bearing function:

The functions of an entrepreneur as risk bearer are specific in nature. The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions. Such risks are not insurable and incalculable. In simple terms such risks are known as uncertainty concerning a loss. The entrepreneur, is the economic functionary who undertakes such responsibility of uncertainty which by its very nature cannot be insured nor capitalised nor salaried too. Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk because he described an entrepreneur as a person who buys things at a certain price and sells them at an uncertain price. Thus, risk bearing or uncertainty bearing still remains the most important function of an entrepreneur which he tries to minimise by his initiative, skill and good judgement. J.B. Say and other have stressed risk taking as the specific function of the entrepreneur.

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b) Organisational Function:

Entrepreneur as an organiser and his organising function is described by J.B. Say as a function whereby the entrepreneur brings together various factors of production, ensures continuing management and renders risk-bearing functions as well. His definition associates entrepreneur with the functions of coordination, organisation and supervision. According to him, an entrepreneur is one who combines the land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market, he pays interest on capital, rent on land and wages to labourers and what remains is his/her profit. In this way, he describes an entrepreneur as an organiser who alone determines the lines of business to expand and capital to employ more judiciously. He is the ultimate judge in the conduct of the business. Marshall also advocated the significance of organisation among the services of special class of business undertakers.

c) Innovative Function:

The basic function an entrepreneur performs is to innovate new products, services, ideas and informations for the enterprise. As an innovator, the entrepreneur foresees the potentially profitable opportunity and tries to exploit it. He is always involved in the process of doing new things. According to Peter Drucker, "Innovation is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth". Whenever a new idea occurs entrepreneurial efforts are essential to convert the idea into practical application. J.A. Schumpeter considered economic development as a discreet dynamic change brought by entrepreneurs by instituting new combinations of production, i.e. innovation. According to him innovation may occur in any one of the following five forms.

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The introduction of a new product in the market with which the customers are not get familiar with. Introduction of a new method of production technology which is not yet tested by experience in the branch of manufacture concerned, the opening of a new market into which the specific product has not previously entered. The discovery of a new source of supply of raw material, irrespective of whether this source already exists or has first to be created.

d) Managerial Function:

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

e) Decision Making Function:

The most vital function an entrepreneur discharges refers to decision making in various fields of the business enterprise. He is the decision maker of all activities of the enterprise. A. H. Cole described an entrepreneur as a decision maker and attributed the following functions to him. 

He determines the business objectives suitable for the enterprise

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He develops an organization and creates an atmosphere for maintaining a cordial relationship with subordinates and all employees of the organization

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He decides in securing adequate financial resources for the organisation and maintains good relations with the existing and potential investors and financiers.

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He decides in introducing advanced modern technology in the enterprise to cope up with changing scenario of manufacturing process.

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He decides the development of a market for his product, develops new product or modify the existing product in accordance with the changing consumer's fashion, taste and preference.

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He also decides to maintain good relations with the public authorities as well as with the society at large for improving the firms image before others

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6. STEPS TO ENTREPRENEURSHIP a) Spotting b) Assessing c) Selecting d) Executing

As more and more people start or consider starting their own business, it is important that they understand the core steps that are required to launch successful ventures. These steps include spotting, assessing, selecting and executing upon opportunities.

a) Spotting Opportunities:

The first step to entrepreneurship is identifying opportunities. The entrepreneur must be able to spot an unmet need. Oftentimes this need is seen through an inefficiency in the market something that doesn't work quite the way the entrepreneur would like it to. As a result, the entrepreneur figures out a potential solution and the opportunity is born.

b) Assessing Opportunities:

Many entrepreneurs keep a journal that details the myriad of opportunities they come across each day. While it takes a creative skill set to identify opportunities, it takes an analytical skill set to assess them. Each opportunity should be assessed to, among others, determine its likelihood of success and the financial and human resources required to execute upon it.

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c) Selecting Opportunities:

One of the biggest risks in selecting the wrong opportunity is opportunity cost; that is, the cost of having to forego another opportunity that may have been wildly successful. Entrepreneurs should assess their potential opportunities and come to a firm decision regarding which one to execute upon. Once selected, the entrepreneurs cannot second-guess themselves. To do so would lessen their focus and drive towards the selected opportunity, both of which are critical in achieving success.

d) Executing Upon Opportunities:

Execution, or the ability to generate the most value out of an opportunity, requires a unique combination of creativity, passion, persistence, focus, responsibility, intelligence, planning and energy. The entrepreneur needs to know what tasks must be accomplished and be the main driver in seeing that these tasks are completed in an appropriate manner. Having an expertly written business plan will allow the entrepreneur to see the outline of the actions that must been taken to ensure success.

Understanding the four steps to entrepreneurship enables entrepreneurs to better understand the path that they are embarking upon. It is a path filled with potential pitfalls, but also filled with tremendous excitement, satisfaction and potential to build enormous value.

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7. ENTREPRENEURSHIP IN INDIA a) Current perspective b) Scope c) Promoting Entrepreneurship d) Encouragement at attitudinal level e) Encouragement at physical level f) Qualities needed

a) Current Perspective

In a country like India, social (value system) and cultural issues hold their importance besides issues related to infrastructure. Any innovation to succeed in our society needs to be accepted by our value systems and cultural issues. It will not be wrong to say that Dot.com (or any innovation) will not succeed until and unless a high level of awareness is achieved and the idea is taken to the common people. An acceptance by the mass in itself is a kind of social innovation. Further, in our country, where the population is more concerned about making both ends meet, entrepreneurial activity will achieve sustainability only when support is provided both at the societal and governmental levels.

b) Scope of Entrepreneurship development in India

We are a very young nation – just over 64 years since independence – setting out on a path of sustained economic growth, for decades to come.

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We already have over a billion fellow Indians. Within the next 20 years, we will have 400 million people below the age of 35 years – more than the entire population of the United States! Each person, in this bold new generation, will be in the prime of his or her life, striving for a better tomorrow – creating, in the process, new growth opportunities, for budding entrepreneurs!

On the most conservative basis, our domestic consumption, in virtually any sector, has the potential to at least double, or treble, from current levels – perhaps, just to catch up with a country like China.

Then, there is the entire global opportunity, across diverse sectors internationally, the "Made in India" tag is now an increasingly respected brand, valued for quality, reliability, and competitiveness. Truly, with economic reforms in the country, and with the virtual removal of all trade barriers, the world is now our market – and our opportunity.

The pursuit of these opportunities requires an indomitable spirit of entrepreneurship!

In India there is a dearth of quality people in industry, which demands high level of entrepreneurship development programmes throughout the country for the growth of Indian economy.

The scope of entrepreneurship development in country like India is tremendous, especially since there is a widespread concern that the acceleration in GDP growth in the post reforms period has not been accompanied by a commensurate expansion in employment. Results of the 57th round of the National Sample Survey Organization (NSSO) show that unemployment figures in 200102 were as high as 8.9 million. Incidentally, one million more Indian joined the rank of the unemployed between 2000-01 & 2001-02. The rising unemployment rate (9.2% 2004 est.) in India has resulted in growing frustration among the youth. In addition there is always problem of underemployment. As a result, increasing the entrepreneurial activities in the country is the only solace. Incidentally, both the reports prepared by Planning Commission to generate employment

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opportunities for 10 crore people over the next ten years have strongly recommended selfemployment as a way-out for teaming unemployed youth.

At present, there are various organizations at the country level & state level offering support to entrepreneurs in various ways. The Govt. of India & various State Govts. have been implementing various schemes & programmes aimed at nurturing entrepreneurship over last four decades. For example, MCED in Maharashtra provides systematic training, dissemination of the information & data regarding all aspects of entrepreneurship & conducting research in entrepreneurship. Then there are various Govt. sponsored scheme for the budding entrepreneurs.

Recognizing the importance of the entrepreneur development in economic growth & employment generation, Maharashtra Economic Development Council (MEDC) has identified entrepreneurial development as the one of the focus area for Council activities two years ago.

Various Chambers of Commerce & apex institutions have started organizing seminars & workshops to promote entrepreneurship. Incidentally, various management colleges have incorporated entrepreneurship as part of their curriculum. This is indeed a good development. This shows the commitment of the Govt. & the various organizations towards developing entrepreneurial qualities in the individuals.

c) Promoting Entrepreneurship

In India, where over 300 million people are living below the poverty line, it is simply impossible for any government to provide means of livelihood to everyone. Such situations surely demand for a continuous effort from the society, where the people are encouraged to come up with their entrepreneurial initiative.

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d) Encouragement at attitudinal and social level

In the future, innovation and entrepreneurship needs to be encouraged at Social levels, Governmental levels and Managerial levels. There must be a social attitude that views innovations with positive attitude and reject an innovation only when it is not acceptable.

e) Encouragement at physical level

At this level the encouragement will refer to two aspects necessary for entrepreneurship to thrive, one is the provision of venture capital and the other being infrastructural support. A real example is Export Processing Zones which are performing extremely well when given the support.

f) Qualities needed to succeed in this new world

First and foremost, we need the entrepreneurial spirit. Outside India, this spirit has been very evident in the IT industry. 35% of the start-ups in Silicon Valley are by Indians. We need to have similar risk-taking ability within the country as well. Entrepreneurs need more than technical talent, more than business savvy. What they need is the indefatigable energy and incurable optimism that enables them to take the road less traveled and convert their dreams into reality. It is a force that beckons an individual to pursue countless opportunities. Entrepreneurs must learn how to overcome the risk of failure, or of vulnerability. The institutions can give them valuable insights and also support them in this.

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8. TEN GREAT ENTREPRENEURS This section introduces the world‘s greatest entrepreneurs of the millennium. It gives a brief introduction of the individuals and a summary of their work.

1) Bill Gates

Bill - Gates is widely thought of as the World‘s richest man and has become in many ways a household name due to his enormous wealth and yet few people know what goes on behind the face of Microsoft. Gates was born in Seattle, Washington on October 28, 1955. He eventually went to Harvard and while there co-wrote Altair BASIC, later to become Microsoft‘s first product offering. Now here's one to make you think; Gates is estimated to earn around $250 a second; or $20 million a day give or take. If he were to drop a thousand-dollar bill, he could leave it to lay on the ground and walk on by because in the few seconds it might take to bend down and pick the bill up, he would already have earned it back in interest.

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2) Steve Jobs (1955-2011)

Talking of internet success stories, here was Steven Paul Jobs. Jobs was an American business magnate and inventor better known for being the co-founder and CEO of Apple computers. Jobs had an interesting past, previously serving as CEO of Pixar Animation Studios. He was an inventor widely recognized as a charismatic pioneer of the personal computer revolution. He was co-founder, chairman, and chief executive officer of Apple Inc. Jobs was cofounder and previously served as chief executive of Pixar Animation Studios; he became a member of the board of directors of The Walt Disney Company in 2006, following the acquisition of Pixar by Disney. Jobs is considered one of the most successful entrepreneurs of our time and in November 2009 was ranked number 57 on Forbes list of The World's Most Powerful People. Jobs died at his home in Palo Alto, California, aged 56, six weeks after resigning as CEO of Apple. A copy of his death certificate indicated respiratory arrest as the immediate cause of death, with "metastatic pancreas neuro endocrine tumor" as the underlying cause. His occupation

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was listed as "entrepreneur" in the "high tech" business. After Apple's founding, Jobs became a symbol of his company and industry. When Time named the computer as the 1982 "Machine of the Year", the magazine published a long profile of Jobs as "the most famous maestro of the micro". Jobs was awarded the National Medal of Technology by President Ronald Reagan in 1984, with Steve Wozniak (among the first people to ever receive the honor), and a Jefferson Award for Public Service in the category "Greatest Public Service by an Individual 35 Years or Under" (also known as the Samuel S. Beard Award) in 1987. On November 27, 2007, Jobs was named the most powerful person in business by Fortune magazine. On December 5, 2007, California Governor Arnold Schwarzenegger and First Lady Maria Shriver inducted Jobs into the California Hall of Fame, located at The California Museum for History, Women and the Arts.

3) Donald Trump

A man who is as familiar for his private life as he is his business life and much of this is his own doing. Donald John Trump is an American businessman, entrepreneur success stories, socialite, author and TV celebrity. His company, The Trump Organization, is a US-based real-estate

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developer and his wealth in the main has come from property with a long list of acquisitions to his name. His father, Fred Trump, was also a wealthy real estate developer so Trump had a head start when it came to making his fortune but despite that he has taken the usual rollercoaster ride of losses and gains over the last few decades. He is known for his catch phrase "You're Fired" through his TV series The Apprentice.

4) Mark Zuckerberg

Today Zuckerberg is reputed to be valued at somewhere close to $4.0bn – At 25 he occupies this list as the youngest of our billionaires, I guess this is testament to the power of the internet. If you don't already know, (have you been asleep for the last five years?) Zuckerberg is the founder of Facebook, which launched back in February 2004 and is today recognized as the webs fastest growing social networking site.

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So, a long list and finally we've arrived at the bottom of it and as the saying goes, we've saved the best while last (in my humble opinion at least). If you're looking for style, innovation, entrepreneurial class and an eye for the unexpected then look no further than our last famous entrepreneur stories.

5) Richard Branson

Bringing up the rear in pretty good style is Sir Richard Charles Nicholas Branson. Branson is a British businessman, entrepreneur and all round nice guy, recognized as the founder and CEO of the Virgin Group of over 400 companies in recent years. As a child, Branson has dyslexia and is reported to have struggled academically, before discovering his ability to connect with and influence people. in 1984 Branson formed Virgin Atlantic Airways. He also launched Virgin Mobile in 1999 and later Virgin Blue in 2000 in Australia . According to the Sunday Times Rich List his net worth was just over £3 billion in 2009; not too bad for a guy who can't spell. In 1993, Branson was awarded an honorary degree of Doctor of Technology from Loughborough University.

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In the New Years Honours list dated 30 December 1999, HM The Queen signified her intention to confer the honour of Knight Bachelor on him for his "services to entrepreneurship". He was knighted by HRH The Prince of Wales on 30 March 2000 at an investiture in Buckingham Palace.

6)Warren Buffett

Warren Edward Buffett is known as an American investor, industrialist and philanthropist and is accepted as one of the most accomplished investors around today. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and is the third wealthiest person in the world as of 2011. Buffett is called the "Wizard of Omaha", "Oracle of Omaha" or the "Sage of Omaha" and is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth

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Buffett was born in 1930 and it's said that even as a young boy he was aware of money and more importantly how to make it. He bought his first shares when only 11 years old. Later, still in school, he is reported to have invested into a business that his father owned and by the time he had completed his college education, Buffett had acquired today's equivalent of $90,000 plus in savings. Buffett became the world's richest man, kicking Bill Gates from the throne in 2008 with an estimated worth of $62 billion, according to Forbes magazine.

Buffet has become something of a philanthropist in later life and our next addition stepped into that role too after his own business success allowed him to.

7) Pierre Omidyar

He is a French-Iranian American entrepreneur and philanthropist/economist, and the founder/chairman of the eBay auction site. He is estimated to be worth in the region of $5.2bn – Pierre came to light as the founder of eBay auction site when he was just 28 years old. In 1998 when eBay later became a public company, Pierre along with his wife co-founded the Omidyar

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Foundation to support nonprofits which later grew into the Omidyar network a micro financing facility. Omidyar joins our list of famous entrepreneurs as another internet success story. From business entrepreneur to social entrepreneur in a few short years! According to Forbes, as of March 2011, Pierre Omidyar is the 145th richest person in the world. He is the third richest person of Iranian descent. Pallonji Mistry at US$ 8.8 Billion (103 on Forbes List) is the richest person of Iranian descent followed by Adi Godrej at US$ 7.3 Billion (130 on Forbes List). Both are Parsi Zoroastrians of Iranian descent.

8) Dhirubhai Ambani (1932-2002)

A proud son of this glorious state of Gujarat, and a man with long ties with this wonderful city of Ahmedabad, was the greatest example of this spirit of entrepreneurship! He was an IndianGujarati business magnate and entrepreneur who founded Reliance Industries, a petrochemicals, communications, power, and textiles conglomerate and the only privately owned Indian

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company in the Fortune 500. Ambani took his company public in 1977. Dhirubhai has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia. His life has often been referred to as a true "rags to riches" story. In a short span of less than 25 years, and without even the benefit of a formal education, Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the world‘s 200 most profitable companies. He started out in life, working as a mere petrol pump attendant in Aden, Yemen. He had no technical knowledge, of any of the businesses he wished to create in India. He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsic faith in the latent demand potential of the Indian markets, a belief in the capabilities of Indian people, and a burning desire to succeed! He created Reliance, a Rs. 75,000 crore enterprise, in a single lifetime!

9) Azim H. Premji

In a world where integrity purportedly counts for naught, Azim Hasham Premji symbolizes just

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that. The 55-year-old Wipro chairman made international waves in 2000 ever since his group became a Rs 3,500-crore empire with a market capitalization exceeding Rs 500,000 million! If any stargazer had been foolish enough to predict in 1966 that a 21-year-old Indian at Stanford University would one day achieve all this, he'd have been laughed out of business.

At that juncture, Premji was forced to discontinue his engineering studies in the States due to the untimely death of his father. Returning to India to take charge of a cooking oil company, the youth infused new life into the family's traditional mindset and trade.

Premji owns 74% of Wipro Limited, which started off manufacturing hydrogenated cooking fats along with consumer products. It grew from a company of US $2.5 million to a giant of almost $7 billion under Premji's leadership. Wipro Technologies, the Global IT Business of the company, is one of India's largest software companies and is ranked among the top 100 technology companies globally.

Despite all the success, the media-shy Premji maintained a low profile, letting his work do all the talking. Until early last year the media broke the story that Azim Premji had become the secondrichest man in the world… In spite of his billions, however, he still travels economy class and stays in budget hotels.

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10) N.R.Narayana Murthy

An Indian IT chief who's really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys. Mr. Murthy served as CEO from 1981 to 2002. From 2002 to 2011, he served as Chairman. In 2011, he became Chairman Emeritus. Born in 1946, Murthy's father was a schoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire a degree in Electrical Engineering from Mysore University and later studied Computer Science at the IIT, Kanpur, India.

The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, along with six friends. There was a minor hitch, though-he didn't have any seed money. Luckily, like many Indian women who save secretly without their husband's knowledge, his wife Sudhathen an engineer with Tatas-had saved Rs 10,000. This was Murthy's first big break.

The decade until 1991 was a tough period when the couple lived in a one-room house. The second break came in 1991 when Indian doors to liberalization were flung open… Murthy

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grabbed the opportunity with both hands and has never looked back ever since. Today, Infosys is the first Indian company to be listed on the US NASDAQ.

While working in France in the 1970s, Murthy was strongly influenced by socialism. The bubble was pricked, however, when he was arrested in Bulgaria on espionage charges. Today, he says: "I'm a capitalist in mind, a socialist at heart." It was this belief in the distribution of wealth that made Infosys one of the first Indian companies to offer employees stock-option plans. Infosys now has 400 employees who are dollar millionaires.

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Other Entrepreneurs (worldwide):

Name

Industry/ Enterprise

Ben Franklin (1706-1790)

Publication

Henry Ford (1863-1947)

Ford Motor Co

John D. Rockefeller (1839-1937)

Oil Industry

J.P. Morgan (1837-1913)

Finance

Oprah Winfrey (1954)

Media

Michael Dell (1965)

Technology

Estee Lauder (1908-2004)

Consumer goods

Levi Strauss (1892-1902)

Fashion

Walt Disney (1901-1966)

Entertainment

J.W. Marriott Jr. (1932)

Hospitality

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9. WOMEN ENTREPRENEURSHIP

Women entrepreneurship is inherent and also a natural process. Women are naturally endowed with the qualities of entrepreneurship. Maternity is a creative capacity involving risk of life. Maternal instincts generate enormous strength and determination that drive the fear away from them. Courageousness and determination that generate at the time of maternity are in born. These characters generate within themselves and not come from elsewhere. Women empowerment becomes reality by nurturing their innate qualities of entrepreneurship.

According to statistics, Women make up 50 per cent of all new MBA graduates. Women make up just under 50 per cent of all PhDs. Women make up 48 per cent of all entrepreneurs globally.



Women are naturally endowed with the qualities of entrepreneurship

Every woman undergoes a risk of life to bring life into this world. Women do not deny motherhood on the plea of risk is involved. Their maternal instincts overcome the thoughts of risk to life. Women have the innate ability to face the risk of life with firm courage. This is an essential quality for Entrepreneurship. Women entrepreneurship is therefore, a natural process for women. Encouragement of women entrepreneurs are the only solution for women empowerment.

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Women possess strong communication skills and social intelligence

The digital economy requires these skills, and women enjoy a slight edge over their male counterparts (according to numerous studies). Rosin‘s article discusses a Columbia Business School program that teaches sensitive leadership and social intelligence, including a lesson in reading facial expressions and body language. ―We never explicitly say, ‗Develop your feminine side,‘ but it‘s clear that‘s what we‘re advocating,‖ says Jamie Ladge, a business professor at Northeastern University.



Women make good listeners

One study found that the collective intelligence of a group rose if the group included more women. Anita Woolley, assistant professor at Carnegie Mellon University, asks, ―What do you hear about great groups? Not that the members are all really smart, but that they listen to each other. They share criticism constructively. They have open minds. They‘re not autocratic.‖ Whether due to biology or cultural conditioning, women tend to be better listeners and are stronger at drawing people into conversation. This translates to several advantages for the entrepreneur, who can better attune herself to customer needs and build more effective teams of employees, contractors and partners. In fact, many women entrepreneurs often describe building their business as building a team.

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Women collaborate

Women have worked well together since the earliest female enterprises, whether dividing grains in the village or working in quilting bees. Even some of today‘s cultural stereotypes have legs, for instance, women‘s joint trips to the restroom! A 2009 Time magazine article by Claire Shipman and Katty Kay says, ―[Women are] consensus builders, conciliators and collaborators, and they employ what is called a transformational leadership style — heavily engaged, motivational, extremely well suited for the emerging, less hierarchical workplace.‖ The article, entitled ―Women Will Rule Business,‖ cited projections from the Chartered Management Institute in the UK. Looking ahead to 2018, CMI believes the work world will be more fluid and virtual, and the demand for female management skills will be stronger than ever.



Women prefer lower risk

Researchers have begun focusing on the relationship between testosterone and excessive risk, thus evaluating whether groups of men spur each other toward reckless decisions. Whether testosterone influences decision-making or not, research shows that, as a whole, women prefer lower risk opportunities and are willing to settle for lower returns. Risk aversion may go hand-in-hand with motivations for starting a business. A 2007 study from the Small Business Administration observes the differences between male and female entrepreneurs in the U.S. The results found that male owners are more likely to start a business to make money, and have higher expectations for their business. Women are more likely to prioritize that business and personal lives work in harmony.

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The digital age offers a wealth of low-risk opportunities. Ventures like blogging, web-based services, ecommerce and software development require smaller upstart costs than manufacturing-based, brick and mortar type businesses. Cloud-based tools and virtual workforces further lower the cost of entry, making the idea of starting a business more feasible and/or palatable for risk-averse entrepreneurs. But a strength can also be a weakness. Yes, the tendency to minimize risk can lead to higher success rates for female entrepreneurs (that 2007 SBA study linked above found that womanowned businesses were more likely to have positive revenues). However, risk-phobia can also mean women are more likely to limit the size of their businesses, and less likely pursue outside funding from investors to fuel growth. On average, men-owned firms are larger than women-owned firms. In firms owned by men, twice as many have 10 or more employees, and three times as many have reached the $1 million revenue mark. It‘s up to each individual business owner to define the goals of his or her business. If a woman chooses to pursue a smaller business venture that lets her balance her business and personal life in more harmony, more power to her.

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10.

Role Of Women Entrepreneurship In India

Women entrepreneurship development is an essential part of human resource development. The development of women entrepreneurship is very low in India, especially in the rural areas. Entrepreneurship amongst women has been a recent concern. Women have become aware of their existence their rights and their work situation. However, women of middle class are not too eager to alter their role in fear of social backlash. The progress is more visible among upper class families in urban cities.

Women empowerment

When women bring life into this world, it contributes to the society. When an entrepreneur creates an enterprise it generates employment, create wealth. Entrepreneurship is a prerequisite for the development of any nation. Hence the contributions of women entrepreneurs are a prerequisite for nation building. Women are naturally endowed with the emotions of love. This positive energy could be used managing human resources efficiently. All the women have all the resources to manage an enterprise. Women entrepreneurship can only bring about women empowerment.

Present Position of Women Entrepreneurs in INDIA

Out of the total 940-48 million people in India in the 1990‘s of the female comprise of 465% of the total population. There are 126.48 million women work force (representing 28.9% of the female population) but as per the 1991 census only 185900 women accounting for only 4.5% of total self employed persons in the country were recorded. Majority of them are engaged in the un

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organized in the unorganized sectors like agriculture, agro based industries, handicrafts, handloom and cottage based industries. As per the 2001 census report, there are of women workers of the total working population including formal as well as informal sector. In the era of L.P.G (Liberalization, Privatization, Globalization) the

Indian women entrepreneurs are very

fast entering the non –traditional sectors which indeed is in response to their greater awareness.

Entrepreneurship among women, no doubt improves the wealth of the nation in general and of the family in particular. Women today are more willing to take up activities that were once considered the preserve of men, and have proved that they are second to no one with respect to contribution to the growth of the economy. Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.

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Leading women entrepreneurs of India

Sr.No.

Name

Enterprise

1

Kiran Mazumdar Shaw

Biocon India

2

Indra Nooyi

PepsiCo

3

Jyoti Naik

Lijjat Papad

4

Sullaja Firodia Motwani Kinetic Motor Company

5

Indu Jain

Times Group

6

Rajshree Pathy

Rajshree Sugar and Chemicals Ltd.

7

Neelam Dhawan

Microsoft India

8

Simone Tata

Lakme

9

Naina Lal Kidwai

JP Morgan Stanley

10

Ekta Kapoor

Balaji Telefilms

Women entrepreneurship, women empowerment and nation building are therefore, synonymous.

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11.

SIGNIFICANCE OF AN ENTREPRENEUR a) Creates jobs b) Creates Wealth c) Facilitates economic development

A) Entrepreneurship Creates New Jobs

Government efforts to promote job creation have had little impact for one simple reason: the government cannot create private sector jobs, only private enterprise can create such jobs. Recent research by the Kauffman Foundation provides some additional insights into this subject. Specifically, utilizing data from the U.S. Bureau of Labor Statistics, the Kauffman Foundation recently demonstrated that all new jobs created (net of losses) within the U.S. economy for the past 35 years have been the result of new business formation. In other words, entrepreneurs create jobs. Interestingly, the data suggests that existing businesses are actually net destroyers of jobs, eliminating or losing an average of 1 million jobs per year since the 1970‘s. By contrast, new businesses have created 3 million jobs per year, on average, over the same period of time. Intuitively, this makes sense. Many existing businesses downsize, fail, or are sold to other businesses. A business that downsizes or fails obviously destroys jobs, while one that is acquired is often consolidated, resulting in permanent lay-offs. Furthermore, existing businesses that are large and successful tend to have fewer growth opportunities to pursue and will often focus on productivity improvement strategies (such as outsourcing and offshore hiring) rather than to pursue domestic labor-intensive growth initiatives. However, by definition, new businesses start with no jobs whatsoever, so they can only be creators of jobs.

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INTERESTING ARTICLE: Source: BBC.CO.UK 19 April 2011

Top 1% of entrepreneurs create 40% of new jobs

David Cameron is looking to entrepreneurs to help rebuild the UK's economic growth

Just 1% of start-up companies create 40% of new jobs - a far smaller number of companies than had been thought - a World Economic Forum (WEF) study has found. The WEF said governments looking for growth through entrepreneurship should examine what made these successful. It said that they should do this rather than "replicate Silicon Valley". Last month Prime Minister David Cameron told would-be entrepreneurs "now is the time" to launch their business. Mr Cameron has launched a scheme, called "Start Up Britain", which provides support worth about £1,500 for areas such as IT training and internet advertising to help people set up businesses. The coalition government is looking to the private sector to provide the engine for growth to balance out the jobs being cut in the public sector. Other governments, too, see start-up businesses as key to economic expansion.

The WEF Entrepreneurship_Report, in collaboration with Stanford University and Endeavor Global, said: "After avoiding the collapse of the global financial and economic system, governments around the world are now focused on building a foundation for future growth."

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It said the purpose of its report was to provide insight into how to successfully foster entrepreneurship, with "the ultimate goal of improving economic growth, prosperity and quality of life". The WEF study highlighted eight different key growth strategies for early-stage companies. It said one key finding was that the similarities in early-stage companies around the globe are far greater than their differences. The WEF also found typically a successful company would grow for two years and then shrink over the next, what it called "a ladders and snakes growth path". One of the successful strategies it advocates for overcoming this is to "take lessons from the down years to build a stronger engine for future growth". It also says putting in place strong management systems is of high importance. The WEF says failing to systematically adopt management systems when high growth is occurring is what it calls "a self-inflicted wound". The report looked at 380,000 companies in 10 countries

Just 1% of start-up companies create 40% of new jobs - a far smaller number of companies than had been thought - a World Economic Forum (WEF) study has found.

B) Creates Wealth

As already discussed, an effective entrepreneurship venture fosters the production of wealth for a nation. When many of the entrepreneurship produce an output greater than the input, the economy of the nation is directly bolstered. Another advantage to the nation is the creation of jobs for its people. Such a job creation utilizes the human resources of that particular country and helps the natural talent materialize. With the new inventions and development in the new technology a nation can use its resources more effectively. Since, a majority of the

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entrepreneurship projects are private; it provides an environment of competitiveness which further increases the quality of the products in the national markets. By privatizing the local economy, entrepreneurship ventures help attract eager foreign firms who are otherwise reluctant to do business with the government subsidized economy.

The income level of the average person and the standard of living of a society increase with every successful entrepreneurship project that is undertaken. There is an increase in the employment level on the regional scale. It is also noticeable that an entrepreneurship helps develop other entrepreneur businesses because of the extra incentives that it can provide to a new entrepreneur in the shape of capital, knowledge and technology. Entrepreneurship helps the societies to fulfill its basic needs in the world that calls for the? survival of the fittest? Entrepreneurs lead by example in assisting the society and therefore boost the moral of the public.

C) Economic Development

a) National Income b) Regional development c) Dispersal of economic power d) Better standard of living

a) National Income:

National Income consists of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet

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the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurs are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income.

b) Balanced Regional Development:

The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development . When the new entrepreneurs grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions.

c) Dispersal of economic power:

Industrial development normally may lead to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly.

d) Better standards of living:

Entrepreneurs play a vital role in achieving a higher rate of economic growth. Entrepreneurs

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are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of of the commodities decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people.

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12.

FUTURE PERSPECTIVE

Entrepreneurship as in the past will determine technical innovations, status of social institutions and political management systems. On the basis of these factors, we can expect the future to be a place where basic needs will remain and only the wants will change. India will overcome the barriers of infrastructure; we will also visualize a strong manufacturing and agricultural sector.

Entrepreneurs and not managers will be in demand, as only they will be equipped to find order in chaos. The focus of entrepreneurial energy will shift from achieving volume sales to fulfill a specific requirement. Governance will become more transparent and will be willing to accept changes necessary for growth and development. More autonomy will become the basis of all issues.

The future will see Entrepreneurship as the key driver of economic development Technological obsolescence will become order of the day and there will be more space for leisure. New businesses will be credited with providing variety of new jobs in the economy. New and small business will also develop more than their share of product and service innovation. At one end we will see the technological upheavals in quick succession and on the other end there will be social value systems and cultural issues undergoing slow but dynamic transformations.

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13.

CONCLUSION

Entrepreneurs are highly driven and focused people, sometimes to the point of obsession. They reduce issues to first principles and apply high levels of intelligence, energy and willpower to getting things done. They are restless and see change as an opportunity. They are calculated risktakers and are highly competitive. Their motor is a serious appetite for financial reward and acclaim, which they richly deserve.

There are ample opportunities in small businesses in India and such opportunities will transform India in the coming future. For such transformation to happen there needs to be support both at the governmental and societal level. For the government it is important to realize that the goal of small business owners will be to remain self-employed. Such people may not need financial assistance but they will need marketing and legal assistance in order to sustain themselves. Practical and cost effective programs need to be developed to address their needs because selfemployed people will represent an important segment in economic revitalization. Entrepreneurship development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic progress

This project has helped me in broadening my horizons. Entrepreneurship is a wide concept and is a self teaching experience that comes with time to persons thriving with innovation.

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14.

BIBLIOGRAPHY

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