entrepreneurship process

Entrepreneurship

Its role... development process ...

Entrepreneurship and Economy...

Entrepreneurship is one of the most important inputs in the economic development of a country.

Entrepreneurs play a central role in the economy by establishing firms, which in turn create markets and organizations.

An individual engages in entrepreneurial activities before the firm is established and then becomes an owner after the firm is established.


In India, Entrepreneurs have performed below expectations due to different problems like,

environmental related factors, lack of focus on entrepreneurial activities

by governments, frequent government policy changes

Entrepreneurship Promotions should thus

ensure: The availability or possession of managerial

capacity

And the acumen before pursuing financial

resources for the development of the

respective enterprise.


Role of Entrepreneurs in Economic Development...

An entrepreneur takes more risk for the

organizational development.

Entrepreneur gives innovation to the industry.

This in turn bring innovation in terms of new

products, services, and ideas which ultimately

brings economic development of the country.

The entrepreneurs with their ability to scan,

analyze and identify opportunities in the

environment to transform them into business

proposition through creation of economic entities.

They channelize the resources from less productive

to more productive use and create wealth.


Through the efficient and effective utilization

of national resources, they act as catalysts for

economic development.

They are the agents of social transformation

and change.


Computers, mobile phones, washing

machines, ATMs, Credit Cards, Courier

Services, and Ready to eat Foods are all

examples of entrepreneurial ideas that got

converted into products or services of today.


Entrepreneurship is basically concerned with

creating wealth through production of goods

and services.

This results in a process of upward change

whereby the real per capita income of a

country rises overtime or in other words

economic development takes place.


The sociologists feel that certain

communities and cultures promote

entrepreneurship

E.g., in India we say that Gujaratis and

Sindhis are very enterprising.


It speeds up the process of activating

factors of production leading to a

higher rate of economic growth,

dispersal of economic activities and

development of backward regions.


Impact of Entrepreneurship in the Economic Development of India

1. Capital Formation Entrepreneurs by placing profitable business proposition

attract investment to ensure private participation in the industrialization process.

Entrepreneurs promote capital formation by mobilizing the idle savings of public.

They employ their own as well as borrowed resources forsetting up their enterprises.

Entrepreneurial activities creats wealth and thereby industrial and economic development of the country takes place.

2. Generate Employment

Entrepreneur is not the job seekers but job creators and job providers.

With the globalization process the government jobs are shrinking leaving many unemployed, therefore, entrepreneurs are the only hope and source of direct and indirect employment generation.

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations.

With the setting up of more and more units by entrepreneurs, both on small and large-scale, numerous job opportunities are created.


3. Improve Standard of Living

l Increased demand for goods andservices boost

up industrial activity.

l Large scale production will result in economies

of scale and low cost of production


4. Wealth Creation and Distribution

l It stimulates equitable redistribution of wealth and

income in the interest of the country to more people

and geographic areas, thus giving benefit to larger

sections of the society.

l Entrepreneurial activities also generate more

activities and give a multiplier effect in the economy.


5. Increasing Gross National Product & Per Capita Income

l Entrepreneurs convert the latent and idle resources like land, labor and capital into goods and services resulting in increase in the national income and wealth.

l The increase in national income is the indication of increase in net national product and per capita income of the country.

l They explore and exploit opportunities, encourage effective mobilization of capital and skills, bring in new products & services, and thereby develops markets for growth of the economy.


6. Promotes Country's Export Tradel Entrepreneurs help in promoting a country's export-

trade, which is an important ingredient of economy.

l They produce goods and services in large scale for the purpose of earning foreign exchange from export in order to combat the import dues requirements.

l Hence import substitution and export promotion ensure economic independence, development and equilibrium

in B-O-P.


7. Facilitates Overall Development

l Entrepreneurs act as catalytic agent for change which results in chain reaction.

l Once an enterprise is established, the process of industrialization is set in motion, this generates demand for various types of ancillary and support services units and thereby creates multiplier effect.


Difference in Entrepreneur and Intrapreneur

Basis Entrepreneur Intrapreneur

• Capacity• Status • Decisions

• Reward

— Owner— Own boss— Takes own decisions — Uncertain and

unlimited

— An manager— Salaried employee— Executes decisions

with the concurrence of owner

— Fixed rewards and salary

Difference in Entrepreneur and PromoterBasis Entrepreneur Promoter

• Stage of business

• Owning business

• Nature of job

• Example

— From conception to continuation

—Owns the enterprise

— Includes everything

— Any business

— To bring a business into existence

— May or may not own

— Highly specialised

— A consultant or a chartered account and offering services

Thank You, All!

entrepreneurship process

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words economic development

economic development

role of entrepreneurs

development process

organizational development

creation of economic

central role

higher rate of economic