Business Planningand

Entrepreneurial Management(As per the Revised Syllabus of Mumbai University for S.Y. BMS, Semester IV, 2015-16)

Entrepreneurship Theories Types Classification Business Plan Venture Development

Dr. Vasant DesaiDirector,

Visvesvaraya Institute of Socio-economic Research (VISER),Mumbai.

MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOWAHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

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Shradhanjali

“nā jayate mnyate vā kadachinnāyam bhūtvā bhavita vā na bhūyah

Ajo nitya sasvoto yam puranoNa hanyate hanyamane sarire”

“For the soul there is neither birth nor death at any time.He has not come into being, does not come into being and

will not come into being.He is unborn, eternal, ever existing and primeval.

He is not slain when the body is slain.”

Late Shri Bhujang Ranganath Mutalik – Desai(25-11-1951 – 11-08-2014)

Late Shri Venkatesh B. Potdar(14-05-1931 – 17-10-2015)

Their vision continues to guide us.Their words continue to encourage us.

Their deeds continue to inspire us.Their achievements continue to motivate us.

Their presence continues to surround us.

PrefaceThe concept of ‘Entrepreneurial Studies’ has appreciably changed in nature and content over the years.

It is no longer considered an assortment of all sorts of arbitrary facts and figures to choose from. Instead, itis now increasingly becoming more of a systematic, purposeful and objective study of a wide range ofdisciplines, cultural variances, value systems and environment around us.

Entrepreneurial development and management has come to be recognised globally as the key to rapidand sustainable economic development as well as the welfare and progress of mankind.

More so, it is the entrepreneurs who have been largely instrumental in forming a strong link betweenagriculture and industry. Indeed, the entrepreneurs with their vision and innovative qualities lay down astrong foundation for sustainable growth, be it the industry, agriculture, trade or the service sectors.Moreover, sustainable growth is most conducive for a healthy society, i.e., an entrepreneurial society.

Successful new business ventures and economic development do not just happen. They are the resultof the combination of right environment, planning, effort, and innovation. And this right mix can only beachieved by the entrepreneurs. They provide a clear blueprint for stimulating research, technology, financeto help promote matured enterprises. At the same time, they enrich the eco-system and give a boost toeconomic growth. Economic growth refers to an increase in a country’s production or income per capita,with economy’s total output of goods and services being measured by Gross National Product (GNP). Atthe present juncture, the country needs much more than growth. Economic development, on the other hand,goes beyond economic growth to include changes in output, distribution and economic structure, whichmay affect such things as improvement in material well-being of the poor, technical breakthrough, increasein economic activities, increase in the educational level and improvement in health.

Contributing FactorsThe factors contributing to economic development are labour, technology, natural resources, capital

and entrepreneurship. New business formation is the result of harassing human skills with the developedtechnology, added by available capital as well as other infrastructure to set in a development process. Thekey factor in this development process is the entrepreneur. This is the forte of the entrepreneur whosepolicies and strategies cover such broad areas as production, marketing, financing, pricing and personnelrelations. The growth of entrepreneurship largely depends upon effective policies and their efficientimplementation whose contributions as an innovator and coordinator will go towards the economicdevelopment of the country. Thus, entrepreneurship is the coordination of the production elements.

Entrepreneurship management is basically concerned with the development and coordination ofentrepreneurial functions. An effective organisation, sound planning, proper coordination of businessactivities and rational decision-making are the important aspects of entrepreneurship management. Thefoundation of effective management needs both policy and strategy to be determined and made known.

Literature on entrepreneurship development and management has been growing in recent years.Though there have been numerous articles in various journals on entrepreneurial development, especially inIndia and quite a few edited books containing articles on different aspects of the subject by different authors,there remains an imbalance in the coverage of topics. It is, therefore, no exaggeration to say that there hasnot been a single comprehensive book on the subject, explaining, analysing and assessing the variousaspects of the subject. This book is intended to help evolve a perspective of development of the vital sectorsof the national economy and furnish the much-needed information on this subject.

The purpose of the book is to describe the essential features of an entrepreneur and entrepreneurshipto provide a sense of direction for planners and policymakers, on the one end, and the merging crop of

young entrepreneurs, both men and women, educated, uneducated, professional and non-professional, toreap immense benefits and decide the future course of action, on the other.

In India, the entrepreneurship has not developed to a required extent. All the advanced countries of theworld have recognised the power of entrepreneurship and hence they are in a position to stand in the frontline as far as the economic progress of the world is concerned. This has to take place in a big way in India.The concept of entrepreneurship has to be inculcated in young minds in the formative stage. The situation atpresent in India is ripe where nearly 40% of the population of the country is in the learning age and thisprovides a fertile field for development of entrepreneurship. Therefore, it is high time that every universityin the country and the educational institutions have to give a course in entrepreneurship development.

Learning Objectives:1. Entrepreneurship is one of the major focus areas of the discipline of Management. This course

introduces Entrepreneurship to budding managers.2. To develop entrepreneurs and to prepare students to take the responsibility of full line of management

function of a company with special reference to SME sector.I hope that the students, teachers, the policymakers, entrepreneurs, project managers, and others

interested in the subject will find the study useful.I look forward to receiving suggestions from them for improving the contents and presentation of this

book.

AcknowledgementI am grateful to those who have helped me in compiling the matter for this book. While I take this

opportunity to thank all of them. They are too numerous to be mentioned in this brief preface. I would liketo acknowledge my deep sense of gratitude to Dr. Narendra Kumar for his ungrudging help at all stages,and to the many veteran professional entrepreneurs, project managers and consultant economists for theirprecise guidance. Thanks are also due to Shri B.N. Nilaver, Shri K.N. Pandey, Anuj Pandey, Niraj Pandey,Phalguni Ravi and M.V. Desai for their suggestions for affecting a number of stylistic movements, Mrs.Nimisha S. Kadam for coordination and Mrs. Sunanda Jagdale for presenting the book in a unique way.

Lastly, no words can adequately express my debt of gratitude to my father, late Shri RanganathBalwant Mutalik Desai (1909-2006), and my mother, late Smt. Laxmidevi (1941-2000), for generating inme a perennial interest in higher studies. I will be failing in my duty if I do not mention here thetremendous cooperation I received from my wife and my daughter in the completion of this study, inparticular, whose patience, support, encouragement, understanding and love helped to bring this effort tofruition.

Mumbai VASANT DESAIOctober 25, 2015

SyllabusBusiness Planning and Entrepreneurial Management

Learning Objectives:1. Entrepreneurship is one of the major focus areas of the discipline of Management. This course introduces

Entrepreneurship to budding managers.2. To develop entrepreneurs and to prepare students to take the responsibility of full line of management

function of a company with special reference to SME sector.UnitNo.

Name of the Topic No. ofLectures

Unit 1 Foundations of Entrepreneurship DevelopmentConcept and Need of Entrepreneurship DevelopmentDefinition of Entrepreneur, EntrepreneurshipImportance and Significance of Growth of Entrepreneurial ActivitiesCharacteristics and Qualities of EntrepreneurTheories of Entrepreneurship Innovation Theory by Schumpeter and Imitating Theory of High Achievement by

McClelland X-Efficiency Theory by Leibenstein Theory of Profit by Knight Theory of Social Change by Everett HagenExternal Influences on Entrepreneurship DevelopmentSocio-cultural, Political, Economical and PersonalRole of Entrepreneurial Culture in Entrepreneurship Development

15

Unit 2 Types and Classification of EntrepreneursIntrapreneur Concept and Development of IntrapreneurshipWomen Entrepreneur Concept, Development and Problems Faced by WomenEntrepreneurs, Development of Women Entrepreneurs with Reference toSelf-help GroupSocial Entrepreneurship Concept, Development of Social Entrepreneurship in India,Importance and Social Responsibility of NGOEntrepreneurial Development Program (EDP) Concept, Factors Influencing EDP.Options Available to Entrepreneur (Ancillarisation, BPO, Franchise and M&A)

15

Unit 3 Entrepreneur Project Development and Business PlanInnovation, Invention, Creativity, Business Idea, Opportunities through ChangeIdea Generation Sources – Development of Product/Idea, Environmental Scanning andSWOT AnalysisCreating Entrepreneurial Venture – Entrepreneurship Development CycleBusiness Planning Process – The Business Plan as an Entrepreneurial Tool, Scope andValue of Business PlanElements of Business Plan, Objectives, Market and Feasibility Analysis, Marketing,Finance, Organization and Management, Ownership, Critical Risk Contingencies of theProposal, Scheduling and Milestones

15

Unit 4 Venture DevelopmentSteps Involved in Starting of VentureInstitutional Support to an EntrepreneurVenture Funding, Requirements of Capital (Fixed and Working), Sources of Finance,Problem of Venture Set-up and ProspectsMarketing: Methods, Channel of Marketing, Marketing Institutions and AssistanceNew Trends in Entrepreneurship – E-entrepreneur

Paper Pattern

Maximum Marks: 75Time: 2.5 Hours

Note: 1. All questions are compulsory subject to internal choice.

2. Figures to right indicate full marks.

Q.1. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.2. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.3. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.4. Attempt any 2 Questions (15 Marks)(a) (7.5 Marks)(b) (7.5 Marks)(c) (7.5 Marks)

Q.5. Case Studies (15 Marks)

Contents1. Introduction 1 - 7

Unit I: Foundations of Entrepreneurship Development2. The Entrepreneur 8 - 143. The Concept of Entrepreneurship 15 - 274. Nature and Importance of Entrepreneurs 28 - 425. Characteristics and Qualities of Entrepreneur 43 - 536. Theories of Entrepreneurship 54 - 837. Entrepreneurial Environment 84 - 958. Entrepreneurial Culture 96 - 110

Unit II: Types and Classification of Entrepreneurs9. Types and Classification of Entrepreneurs 111 - 121

10. Intrapreneurs – Concepts and Development of Intrapreneurship 122 - 12811. Women Entrepreneurs 129 - 14212. Social Entrepreneurship 143 - 15013. Entrepreneurial Development Programme 151 - 166

Unit III: Entrepreneur Project Development and Business Plan14. Business Idea and Opportunities 167 - 17315. Idea Generation 174 - 18616. SWOT Analysis 187 - 18917. Creating Entrepreneurial Venture 190 - 20418. Business Planning Process 205 - 22119. Methods of Marketing 222 - 23920. Project Financing 240 - 25321. Risk Management 254 - 267

Unit IV: Venture Development22. Steps Involved in Starting of Venture 268 - 29023. Institutional Support to an Entrepreneur 291 - 30524. Marketing Channels 306 - 31625. New Trends in Entrepreneurship 317 - 326

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INTRODUCTION1CHAPTER

Entrepreneurship is both art and science. It is nurtured with passion, determination commitment.Entrepreneurship is a state of mind. It is how you think, the way you think and how you act. It is a state ofmind that needs to be cultivated. It needs personal mastery. Business planning is one of the key tool ofentrepreneurship.

Entrepreneurial ManagementEntrepreneurship is not “natural”, it is not “creative.” It is work. Entrepreneurship and innovation

can be achieved in any business. But they must be striven for. They can be learnt, but they require effort.

Specifically, entrepreneurial management in an existing business requires policies and practices infour major areas:

1. “the organisation must be made receptive to innovation and willing to perceive change as anopportunity rather than as a threat. It must be organised to do the hard work of the entrepreneur.Policies and practices are needed to create an entrepreneurial climate.

2. Systematic measurement or at least appraisal of a company’s performance as entrepreneurs andinnovator is mandatory, as well as built-in, learning to improve performance.

3. Entrepreneurial management requires specific practices pertaining to organisational structure,to staffing and managing, and to compensation, incentives and rewards.

4. There are some “don’ts”, things not to do in entrepreneurial management:(a) Not to mix managerial units and entrepreneurial ones, and(b) Innovative efforts that take the existing business out of its own field are rarely successful.

Innovation should not be “diversification”.A business that wants to be able to innovate, wants to have a chance to succeed and prosper in a

time of rapid change, has to build entrepreneurial management into its own system it has to adopt policiesthat create throughout the entire organisation the desire to innovative and the habits of entrepreneurshipand innovation.

GLOBALISATIONGlobalisation is praised for bringing new opportunities for expanded markets and the spread of

technology and management expertise, which in turn hold out the promise of greater productivity and ahigher standard of living. Conversely, globalisation is feared and condemned because of the instability

2 Business Planning and Entrepreneurial Management

and undesired changes it can bring; to workers who fear losing jobs to competition from imports; tobanks and financial systems and even the entire economics that can be overwhelmed and driven intorecession by flows of foreign capital.

Localisation is praised for raising level of participation and involvement, and providing peoplewith a greater ability to shape the context of their own lives. By leading to decentralised governmentwhere more decisions happen at sub national levels, closer to the voters, localisation can result in moreresponsive and efficient local government. However, when poorly designed, decentralisation can resultin over-burdened local governments without the resources or the capacity to fulfil their basic responsibilitiesof providing local infrastructure and services. It can also threaten macroeconomic stability, if localgovernments, borrowing heavily and spending unwisely, need to be bailed out by the national government.

Global CompetitivenessThe vital need for attaining global competitiveness has resulted in widespread restructuring across

corporate India. Increasing consolidation — in search of globally scaled capacities, technology of upgradationand focus on core competencies are the cornerstones of this restructuring process. The Government too hasrecognized the significance of corporate restructuring in a competitive environment and accordingly, severalfiscal and legal changes are envisaged to facilitate the process of mergers and de-mergers.

Globalization has been a two way process and in the context, globally competitive players havebeen actively seeking opportunities for wealth creation. The shift from the industrial revolution to theinformation revolution and now the knowledge revolution has ensured that knowledge intensive industriesare poised for tremendous growth. The information technology and pharmaceutical industries are twoclear examples. Companies in these sunrise industries have created a sustainable and difficult-to-replicate"intangible" advantage based on their human capital. As Indian industry matures, many of these companieswill act as pathbreakers and trendsetters.

Fig. 1.1: Strategy Perspective

As business becomes more global and competition for capital increases, greater emphasis is beinglaid on corporate governance as a mechanism for effective control and enhancement of stakeholder value.

The globalisation of production has created tremendous economic opportunities, but major effortswill be needed to make the India’s economy flexible enough to reap the benefits, while minimising the

Introduction 3

associated dislocations. Adjustment costs are already evident in growing income disparities in the variedspheres.

With India’s growing importance in the world economy, India has a unique role. Reforms are neededto balance manufacturing and service sectors, to rebalance growth away from self-reliance towards exports.Such efforts would not only be in India’s interest but would also have positive spillovers to the rest of theworld.

Following reforms in the early 1990s, India has become a global leader in service exports, eventhoughits impact on the regional and global economies has so far been more limited.

India's Economic ProgressThe success of India’s economic progress is closely linked to its capabilities to manufacture and

export quality products in a highly competitive global market. In fact, the changing business scenario inIndia is influenced by three driving forces — customer, competition and change. The objective of theeconomic reforms that were initiated in India was to move the economy into a higher growth plane byrelying more on market-oriented process.

The Indian economy grew by a sizzling 9.4 per cent in 2006-07, the fasted in 18 years. The growthwas delivered by sterling performance in manufacturing and services and despite a lag in agriculture. TheIndian economy has shifted to a higher growth trajectory.

The process of socio-economic change is an intrinsic part of human civilization. Man has beenstriving ceaselessly to discover the secrets of nature and thereby benefit immensely in creating a peaceful,rich life for himself and his fellow-beings. Man has benefited by agricultural, industrial and informationactivities. According to J. K. Galbraith, there are three types of economic development that are currentlyin vogue. These are symbolic modernisation, maximised economic growth and selective growth. Economicgrowth is the sine qua non of change and better living standards. Over the years, a middle-of-the roadsocial democratic thinking is becoming consolidated.

Economic ReformsThe economic reforms initiated in 1991 have had an invigorating effect on various sectors of the

economy which is now poised for accelerated growth in the years to come. Industrial production haspicked to an impressive rate and in fact is a major contributor to the high growth rates of GDP. Progresshas to be made slowly and steadily, but we must continue to move towards transparency, quality awarenessand Total Quality Managment. If Indian industry is to be globally competitive, then the liberalisationprocess has to be sustained over the next decade.

Sustained Economic GrowthThe primary objective of developing countries like India is to achieve rapid, balanced and sustained

rate of economic growth. Hence, efforts are directed towards the creation of conditions in which a fastdevelopment of productive resources can take place. This inevitable necessitates the transformation ofsocial and economic structures which will not restrain the potential productive forces and inhibit thedevelopment of resources. The state has, therefore, to devise efficient and effective political, economic,social, technological and cultural strategies so as to ensure a desirable co-ordination of all sectors of theeconomy and assure deliberate and requisite interest and involvement of the people. With this approachsocial change can be achieved. This is largely secured by adopting politically the technique of planning

4 Business Planning and Entrepreneurial Management

and, economically, the tool of management. Country after country in the underdeveloped world isprogressively and intensively resorting to liberalised, privitised, globalised and market-oriented economyand to a restructured and neo-cultured society.

Economic DevelopmentEconomic development, if conceived without appropriate social changes, soon becomes stultified

and stagnated. Comprehensive national planning is increasingly becoming an instrument of socio-economictransformation in developing countries. Planning delineates strategies. It also determines policies consistentwith the political philosophy of the party in power. There seems, however, nothing like universal preceptsof planning, though concepts of planning are emerging with experience gained all over the world. Onedoes not naturally observe a uniform approach to planning. There is bound to be as much diversity innational planning, as multiplicity of political philosophies and dissimilarity in the state of economies.

Objectives of PlanningThere would, however, be no two opinions on the basic objective of planning. Planning must impart

dynamism to the process of development. In different developing countries, diverse economic systemsexist. Despite the apparent similarities between the different economies, they are at various stages ofdevelopment. Furthermore, different regions and sub-regions in the same country are also not at the samelevels, economically, socially, technologically and culturally. Dissimilarities are wide. The process ofplanning in one and the same country, therefore, tends to be very complex and, at times, beset withformidable problems obstructing the process of rapid, balanced and sustained economic development. Itis, thus, becoming patently evident that planning to become a potent tool and an effective technique ofeconomic development must descend from the olympian altitudes of the national level to the low lands ofthe regions. Formulation of development plans can be all-inclusive and well-integrated only at the regionaland the sub-regional level. Every region and sub-region, due to its distinctive character, demands aspecial treatment. It is relatively easy and simple to accelerate production, stimulate consumption andmotivate transformation of economic and social structure at the regional and sub-regional level, particularlyin a vast and diverse country like India. Some of our states and regions are as big as nations. If thecreation of conditions facilitating rapid growth of physical and human productive resources is the aim ofplanning, the peculiarities of the region and sub-regions have to be taken into account — perhaps morethan the points of similarity. Rapid and balanced economic development pre-supposes co-originated anddeliberate activity in all sectors of the country.

Public ResponseIn a country like India, economic development must be consistent with the principles of democracy,

ensuring that the economic tasks will be in full accord with the interests of humanity, ground for ages inchronic and abysmal poverty. Poverty has killed interest, initiative and enterprise. The greatest socialtragedy in a poor country is the loss of will. There is an urgent need to overcome economic backwardnessand cultural weakness and to promote their social and intellectual advance. The challenge to developmentalplanning in countries like India lies in laying down firm material foundations for a more equitable, equaland egalitarian society. This is possible when backwardness of regions and sub-regions is clinicallyexamined and correctly diagnosed. Prescriptions need be written on the basis of social psychology andeconomic pathology of the regions and sub-regions and medication, nursing as well as nourishment beprovided to gain economic strength and infuse ‘development will.’ The success of planning is closelylinked with the readiness with which the people respond to the demand of economic progress. Rapid

Introduction 5

economic development is largely dependent on the degree of popular response, and the intensity of thisresponse indicates the extent of development which will be generated in the community or the regionconcerned. The first task, therefore, is to stimulate and arouse the people to action aimed at improvingtheir lot by undertaking productive, economic activity. Such an awakening will facilitate numerous changesin the social and economic fabric of the region concerned and will also catalyse structural transformation.The process of regional and sub-regional development is triggered off by combining all aspects of economicdevelopment into meaningful policies, quantified targets and viable programmes. It must be appreciatedthat planning goes beyond purely economic factors.

Sustaining Momentum of ChangeThe dynamics of change have wider implications. It is a continuous process. And, changes inside

and outside the enterprise/organisation can move the goal posts.

Transforming an enterprise is not a science: there are no formulae for success. The enterprisesstudied were not following some masterplan; indeed, much of what the entrepreneur did was intuitive,almost an art form. Examining their experience yields valuable insights into creating a strategy that willrealise the promise of transformation. By viewing an enterprise from three perspectives — how performanceneeds to change and how fast; a leader's aspirations and preference; and the sources of energy availableto drive the change — we can gain insight into what strategy will work.

A successful strategy demands effective execution. Choose initiatives that link the sources of energyto the right performance levers. Grouping initiatives into four basic types — executive de-bottleneckingdecisions, direction-setting or redesign task teams, mobilising and communicating and coaching — helpssimplify the choice. Then, be sure to exploit the interdependent dynamics of the initiatives to keep thechange moving ahead.

Evolutionary Jolt & Follow the Multi-front Synthetic Unit-LevelInstitution Refocus Leader Direct Redesign MobilisingBuilding

• Focus on • Top-down • Very top-down • Top-down design • Top-down • Initiated by top:contextual, initiation improvements fromIndirect change • Leader's • Focus on direct • Simultaneous bottom

• Values • Initial focus aspirations & levers; emphasis direct and • Structure on contextual preferences on financial indirect levers • Focus on direct• Performance and indirect dominate impact unit-based levers

measures change • Designed in • Power at the • Emphasis on • Evolving to advance • Mobilisation not

• Long-term team and top direct change indirect and designperformance levels with decisive contextual • Rapid impact •Business unit de-bottle- levers later performance • Rapid performance

structure, necking improvement improvement• More emphasis Strategy of indirect • Extremely rapid

on enabling • Vertical process barriers performance • Driven by • Driven bymoves to shape improvement change agents; temporary powerbehaviour and • Delayed, then • Rapid huge resources structurefuture accelerated, performance • Driven by performance performance improvement change agents; • More complexthan on short- improvement huge resources indirect leversterm results • Driven by leader follow

• Driven by new with agents• Driven by leadership or

line external agents • Ultimatelysustained orstalled by leader

6 Business Planning and Entrepreneurial Management

Change Strategy: Characteristics

Be EntrepreneurialIn an increasingly competitive world, and with greater value created and delivered through intellectual

capital, an important pre-requisite of being a successful leader today is to have an exceptionally strongintellect supported by vision, and a passion to add value through ‘thought’ leadership. Ability to spot,develop, nurture and retain talent is another key skill for leaders of today and tomorrow.

With increasing uncertainty and faster pace of change, leaders must have an entrepreneurial streakin themselves even if working for large, diversified and publicly-held corporations. This would enablethem to spot trends and opportunities before others can, and then act quickly using a combination ofsound business techniques. With flattened hierarchies and a generally younger talent pool, especially inmany of the new-economy sectors such as information technology, media, retail, telecom, financial services,biotechnology and entertainment, today’s leader must have the capability to understand and communicateat all levels. She or he must be able to blend in with the entire team rather than stick out like the proverbialsore thumb. Strong communication and interpersonal skills are, therefore, important assets in the repertoireof the skill set of successful leaders.

The challenges of a more competitive operating environment require tougher leaders. A successfulleader must be highly result oriented and performance driven. If this means taking tough decisions, theleader must not waver even though some of these tough decisions may entail personal regret or pain. Thisdoes not imply that the leaders should not have compassion or a sense of empathy with their team.However, compassion or empathy should not get mixed up with a tolerance of poor performance. A finebalance must be struck.

The FutureIn the 21st century, the opportunities for growth, profits, success and the pace of development is

increasing globally, and the ability to adapt to changes and willingness to adopt best practices, willacquire new value. This could only be added by the growth of entrepreneurship and spread of entrepreneurialbehaviour. It is imperative that the students/people to realise the importance of being able to think froman entrepreneurial perspective.

Entrepreneurship has been considered for long as a process primarily aimed at creating one’s ownbusiness venture, and contributing to economic development and employment generation.

In recent times, globalisation and IT have created fundamental changes in the way businesses haveto perform, compete and grow. The resultant forces have greatly accelerated the interest of managers tobecome entrepreneurial. In an increasingly turbulent global environment, organisations have to createentrepreneurial playing field that facilitates effective entrepreneurial behaviour individually,organisationally, and socially.

According to Harvard Chemist Mr. George Whitesides, it is not just about management, ideas orshortage of funds; the focus needs to be on the product.

You get there by having extensive and joint contact with your potential customers. As to the symptomsof a successful product, you have something worthwhile when someone’s willing to pay for it. And ifsomething is technically interesting or challenging, it’s in all probability too premature for a start-up.“You ought to work on something that’s technically a pretty sure thing and, with luck, you succeed.”

Introduction 7

Thus, the entrepreneur has to attach top priority to the end product and/or service, while givingimportance to management, technology and funds. Value based product will stand the test of times in acompetitive world in the future.

CONCLUSIONIndustrialisation is one of the important means to usher in economic and social transformation in

the developing countries. More so when agriculture cannot sustain the burden of the population growth,it is the industry and service sectors which have to shoulder the responsibility to sustain as well as,accelerate the pace of growth. So industrialisation is indispensable for survival and growth.

Industrialisation results from the interaction of technological change, innovation, entrepreneurialgrowth, specialisation and trade. Good transportation and efficient communication system and an educatedlabour force help promote the rapid development of industries. Well-defined rules reduce the costs oftransactions as specialisation increases and economies become more complex.

Large industrial units and business houses also play an important role in developing and sustainingnew entrepreneurship. For, it should be noted that while the growth of entrepreneurship in India in the last25-30 years have been remarkable, entrepreneurship is still a comparatively scarce factor in India, asindeed in all developing countries. In spite of our fairly good economic progress, India is one of thepoorest countries in the world. On the other hand, our natural and human resources are such that we canbe a fairly prosperous country. So, what we require is more entrepreneurship on the part of the governmentand the private sector.

Entrepreneurship is a core sector which can be developed in a big way. What with so manytechnological and management institutes in India, it should not be difficult to develop thousands ofentrepreneurs every year. In this connection, economic policies of the government leave an importantimpact on the growth of entrepreneurship. Sometimes, the government gives the impression that theprivate sector will only be tolerated. This impression should be removed and there must be a formalrecognition of the fact that in a country like India, we require entrepreneurship at various levels and ofvarious sizes — Central Government, State Government, large, medium and small private sector unitsand also foreign entrepreneurship. Entrepreneurship programmes globally continue to grow and gainacademic legitimacy. The learning from entrepreneurship courses is considered as valuable, whether thestudents plan to become leaders in corporate organisations, run non-governmental organisations, bepracticing professionals, or work for the government.

As managers, cultivating a behavioural seed of entrepreneurship from the early school/college days,and nurturing and growing it to a magnificent and sprawling stature, could be highly rewarding. Stakeholders are becoming more aware about the need for entrepreneurial behaviour — for example, engineers,doctors, teachers, social workers, government officials — practically every one in a society. In particular,career opportunities for management students would look brighter, as recruiters may look for more andmore of entrepreneurially oriented students.

With this entrepreneurial skills and store of knowledge, Indian entrepreneurs becoming creativeand innovative will ensure that India will rise as a global economic power house. The need of the hour isto network the entrepreneurial skills spread throughout the world over to reposition India’s glory in a newperspective which can serve as a model for the rest of the world.

The entrepreneurship development movement in India had received significant attention; this isborne out by the fact that the small manufacturing enterprises have made phenomenal progress during thelast three decades and today occupy an important position in the industrial economy of India.