Tailor-made for B.Com, BBA, and undergraduate students.
Contains the meaning and essence of Entrepreneurship along with its various theories as propounded by various proponents and the promotional agencies.
1. ENTREPRENEURSHIP
Authored by:
SAYANTAN GUHA MAZUMDER
NET JRF
Research Scholar, Department Of Commerce, Dibrugarh University
Guest Faculty of Commerce in DHSK Commerce College, Dibrugarh
Assistant Professor in Salt Brook Academy, B.Com Programme,
Dibrugarh
SAYANTAN GM
3. ENTREPRENEUR
• THE WORD “ENTREPRENEUR” HAS BEEN DERIVED FROM THE
FRENCH WORD “ENTREPRENDRE” WHICH REFERS TO THOSE
WHO UNDERTAKE THE RISK OF NEW ENTERPRISE.
• AN INDIVIDUAL WHO RATHER THAN WORKING AS AN
EMPLOYEE, RUNS A NEW BUSINESS AND ASSUMES ALL THE
RISKS AND REWARDS OF A GIVEN BUSINESS, IDEA, GOOD OR
SERVICE OFFERED FOR SALE INNOVATOR OF NEW IDEAS AND
BUSINESS PROCESSES
SAYANTAN GM
4. • DEFINITIONS OF ENTREPRENEUR (NO UNIVERSALLY ACCEPTED
DEFINITION)
IN THE MIDDLE AGES, AN ENTREPRENEUR WAS CONSIDERED AS
AN ACTOR AND A PERSON IN CHARGE OF LARGE-SCALE
PRODUCTION PROJECT.
IN THE 16TH CENTURY, AN ENTREPRENEUR WAS CONSIDERED
AS A PERSON WHO WAS ENGAGED IN MILITARY EXPEDITION.
IN THE 17TH CENTURY, PERSONS ENGAGED IN CIVIL
ENGINEERING ACTIVITIES WERE ALSO CONSIDERED AS
ENTREPRENEURS.
SAYANTAN GM
5. 18TH CENTURY
IN 1725, RICHARD CANTILLON WROTE THE FIRST CLEAR
DEFINITION OF ENTREPRENEUR AS AN AGENT WHO BUYS
FACTOR OF PRODUCTION AT CERTAIN PRICE IN ORDER TO
CONVERT THEM INTO PRODUCT WITH A VIEW TO SELLING THE
SAME AT CERTAIN PRICE IN FUTURE.
• F.H. KNIGHT: ENTREPRENEUR AS AN UNCERTAINTY BEARER-
BEARER OF NON-INSURABLE RISK
• 1776: ADAM SMITH : ENTREPRENEUR, AN INDIVIDUAL, WHO
UNDERTOOK THE FUNCTION OF AN ORGANIZATION OF
COMMERCIAL PURPOSES
SAYANTAN GM
6. 19TH CENTURY:
• ACCORDING TO J.B. SAY (1803), “AN ENTREPRENEUR IS THE
ONE WHO COMBINES THE LAND OF ONE, LABOUR OF ANOTHER
AND THE CAPITAL OF YET ANOTHER TO PRODUCE A PRODUCT.
BY SELLING THAT PRODUCT IN THE MARKET, HE PAYS
INTEREST ON CAPITAL, RENT ON LAND, WAGES OF LABOUR,
WHAT REMAINS IS HIS PROFIT.”
• 1876: FRANCIS WALKER: DISTINGUISHED BETWEEN THOSE WHO
SUPPLIED FUNDS AND RECEIVED INTEREST AND THOSE WHO
RECEIVED PROFIT FOR MANAGERIAL CAPABILITIES.
• 1934: JOSEPH SCHUMPETER: ENTREPRENEUR AS A DYNAMIC
AGENT TO CHANGE AND THE CATALYST WHO TRANSFORMS
PHYSICAL, NATURAL AND HUMAN RESOURCES INTO
CORRESPONDING PRODUCTION POSSIBILITIES. HE IS AN
INNOVATOR WHO INTRODUCES A NEW PRODUCT, A NEW
PRODUCTION PROCESS, A NEW MARKET, A NEW SOURCE OF
RAW MATERIAL OR INTRODUCES A NEW TYPE OF
ORGANIZATION.
SAYANTAN GM
7. • 1961: DAVID MCCLELLAND: ENTREPRENEUR IS AN ENERGETIC,
MODERATE RISK TAKER WITH HIGH NEED FOR ACHIEVEMENT.
• 1964: PETER DRUCKER: ENTREPRENEUR MAXIMIZES
OPPORTUNITIES
• IN THE INDIAN CONTEXT, AN ENTREPRENEUR IS A PERSON WHO
UNDERTAKES TO ORGANIZE, OWN AND RUN AN ENTERPRISE.
SAYANTAN GM
8. WHO IS AN ENTREPRENEUR?
• A PERSON WHO PROMOTES, OWNS AND RUNS A COMMERCIAL
ENTERPRISE INVOLVING FINANCIAL RISK AND MARKET
UNCERTAINTIES.
• DEVELOPS NEW IDEAS TO SUIT THE CHANGING NEEDS OF THE
CONSUMERS, EXPLORES NEW MARKET FOR HIS PRODUCTS AND
MAKES BEST USE OF RESOURCES TO IMPROVE WELFARE OF THE
SOCIETY.
• ENTREPRENEUR+CAPITAL=PRODUCTS+CUSTOMERS=BUSINESS
SAYANTAN GM
10. A. ENTREPRENEURIAL FUNCTIONS:
a. INNOVATION:
MOST IMPORTANT FUNCTION OF AN ENTREPRENEUR
AN ENTREPRENEUR IS BASICALLY AN INNOVATOR WHO TRIES
TO DEVELOP NEW TECHNOLOGY, PRODUCTS, MARKETS ETC.
FORESEES THE POTENTIALLY PROFITABLE OPPORTUNITY AND
TRIES TO EXPLOIT IT.
CREATIVITY OF AN ENTREPRENEUR RESULTS IN INVENTION AND
INNOVATION
INVENTION CREATION OF NEW KNOWLEDGE
INNOVATION APPLICATION OF KNOWLEDGE TO CREATE NEW
PRODUCTS, SERVICES OR PROCESSES
SAYANTAN GM
11. b. RISK TAKING:
BEARER OF FINANCIAL RISK INVOLVED WITH THE ENTERPRISE
ASSUMES THE RESPONSIBILITY FOR ANY LOSS THAT MAY OCCUR
DUE TO UNFORESEEN CONTINGENCIES OF FUTURE
c. ORGANIZATION BUILDING:
AN ENTREPRENEUR HAS TO ORGANIZE MEN, MACHINES,
MATERIALS, MONEY AND OTHER RESOURCES
HE BUILDS AN ENTERPRISE, NURTURES IT AND MAKES IT GROW.
INNOVATION + RISK TAKING + ORGANIZATION BUILDING
=ENTERPRISE
SAYANTAN GM
12. B. MANAGERIAL FUNCTIONS:
a. PLANNING
b. STAFFING
c. DIRECTING
d. CONTROLLING
e. LEADERSHIP
C. PROMOTIONAL FUNCTIONS:
a. IDENTIFICATION AND SELECTION OF BUSINESS IDEA
IDENTIFICATION OF VARIOUS ALTERNATIVES, EVALUATING AND
SELECTING THE BEST ALTERNATIVE
b. PREPARATION OF BUSINESS PLAN/ PROJECT REPORT WRITTEN
PLAN PREPARED REGARDING HIS IDEA AND OBJECTIVES TO BE
ACHIEVED
c. REQUIREMENT OF FINANCE AMOUNT OF FUNDS REQUIRED,
THEIR SOURCES, COMPOSITION ETC.
SAYANTAN GM
13. C. COMMERCIAL FUNCTIONS:
a. PRODUCTION/MANUFACTURING INCLUDES DECISION MAKING
RELATING T0 THE SELECTION OF FACTORY SITE, DESIGN AND
LAYOUT, TYPES OF PRODUCTS ETC.
b. MARKETING DIRECTS THE FLOW OF GOODS AND SERVICES
FROM PRODUCER TO CONSUMER
c. ACCOUNTING RECORDING THE TRANSACTIONS AND
PREPARING THE FINAL ACCOUNTS
SAYANTAN GM
15. ENTREPRENEURSHIP
• QUALIFIES THE FUNCTIONS AN ENTREPRENEUR PERFORMS.
• IT REFERS TO THE CONCEPT OF DEVELOPING AND MANAGING
A BUSINESS VENTURE IN ORDER TO GAIN PROFIT BY TAKING
SEVERAL RISKS IN THE CORPORATE WORLD
• THE PROCESS OF CREATING SOMETHING NEW WITH VALUE BY
DEVOTING THE NECESSARY TIME AND EFFORT.
• ABILITY TO CREATE AND BUILD A VISION FROM PHYSICALLY
NOTHING
SAYANTAN GM
16. • ENTREPRENEURSHIP STRESSES ON THREE BASIC ASPECTS:
ENTREPRENEURSHIP INVOLVES THE CREATION PROCESS I.E.
CREATION OF SOMETHING NEW OF VALUE, TIME AND EFFORT
ENTREPRENEUR ASSUMES THE RISK FOR CREATING SOMETHING OF
VALUE
ASSUMES THE REWARD OF BEING ENTREPRENEUR, INDEPENDENCE,
PERSONAL SATISFACTION, MONETARY AWARD.
ENTREPRENEURSHIP IS THE PROFESSIONAL ACT OF AN
ENTREPRENEUR OR THE PROCESS OF ACTIONS OF AN
ENTREPRENEUR
SAYANTAN GM
17. ENTREPRENEUR VS
ENTREPRENEURSHIP
BASIS ENTREPRENEUR ENTREPRENEURSHIP
1. MEANING Person Process
2. RISK Risk Bearer Risk bearing practice
by the entrepreneur
3. INNOVATION Introduces new product, new
method of production, new
market etc.
Entrepreneur’s
discharge of
innovation function
4. LEADERSHIP Leads his enterprise The way in which an
entrepreneur leads his
enterprise
5. CO-
ORDINATION
Coordinator 3 factors of
production viz. land, labour
and capital
The co-ordination
maintained by an
entrepreneur
6. IMITATION Follows other successful
entrepreneurs
Act of an entrepreneur
to follow other
entrepreneurs
7.
MOTIVATION
Motivates his employees The act of motivation
by an entrepreneur
SAYANTAN GM
18. ENTREPRENEUR VS MANAGER
BASIS ENTREPRENEUR MANAGER
MEANING A person creating an
enterprise
Individual taking the
responsibility of controlling
and administering the
organization
STATUS Legal owner of the
enterprise
Employee of the enterprise
RISK Bears financial risk Does not bear any business
risk
REWARD Profit Remuneration
NATURE Innovates new idea Executes the policies and
procedures
PURPOSE Start a venture Render his services
LEADERSHIP Leader for the whole
organization
Determined by the scope of
his services
SAYANTAN GM
19. TRAITS OF AN ENTREPRENEUR
1. DILIGENCE HARD WORKING, FACE CHALLENGES
2. INDEPENDENCE SELF MOTIVATED
3. FORESIGHTEDNESS FORWARD LOOKING
4. INNOVATION NEW CREATION
5. CAPABLE ORGANIZER CO-ORDINATE THE VARIOUS FACTORS
OF PRODUCTION
6. HIGHLY AMBITIOUS NEED FOR ACHIEVEMENT
7. ANALYTICAL ABILITY CAUSE AND EFFECT ANALYSIS
8. SYSTEMATIC PLANNING LEADS TO SUCCESS
9. PROBLEM SOLVING CHALLENGING; OVERCOMES PROBLEMS
10. HIGH OPTIMISM NEVER GIVES UP
11. PERSUASION CONVINCE
12. COPING WITH STRESS ADJUST
SAYANTAN GM
20. ENTREPRENEUR VS
ENTERPRISE
BASIS ENTREPRENEU
R
ENTERPRISE
1.
MEANING
A person Business unit
2. RISK Risk Taker Business unit involving
risk and uncertainty
3. DECISION
MAKING
Decision maker Framework within which
the various decisions are
taken by the entrepreneur
4.
CREATIVTY
Innovator Result of an
entrepreneur’s innovation
5. ACTIVITY Acquires RM and
inputs for
production
Utilizes the RM and inputs
in the production process
SAYANTAN GM
23. 1. ECONOMIC THEORY:
Given by Mark Casson in his book The
Entrepreneur - An Economic Theory
Main advocates of this theory G.R. Papanek
and J.R. Harris
Entrepreneurship and economic growth take place
when the economic conditions are favourable
Economic incentives are the main motivators for
entrepreneurial activities
Economic incentives include taxation policy,
industrial policy, sources of finance and raw
material, infrastructure availability, investment
and marketing opportunities, access to information
about market conditions, technology etc
SAYANTAN GM
24. 2. SOCIOLOGICAL THEORY:
Entrepreneurship emerges under a specific
social culture
Society’s values, religious beliefs, customs,
taboos influence the behaviour of
individuals in a society
The entrepreneur is a role performer
according to the role expectations by the
society
Thomas Cochran , in his theory of Cultural
Changes, opined that the entrepreneur
represents society’s model personality
SAYANTAN GM
25. The performance of an entrepreneur is
influenced by three factors:
1. His own attitude towards his own
occupation .
2. Operational requirement of job.
3. The role expectations held by the
sanctioning groups/society.
SAYANTAN GM
26. 3. PSYCHOLOGICAL THEORY:
Entrepreneurship gets a boost when society
has sufficient supply of individuals with
necessary psychological characteristics
The psychological characteristics include
need for high achievement, a vision or
foresight, ability to face opposition
These characteristics are formed during the
individual’s upbringing which stress on
standards of excellence, self reliance etc.
SAYANTAN GM
27. The main characteristics of such
entrepreneurs include:
a. The institutional capacity to see things
b. Energy of will and mind to overcome
hurdles
c. The capacity to withstand social
opposition
SAYANTAN GM
28. INNOVATION THEORY OF
ENTREPRENEURSHIP
Theory by Joseph Schumpeter who believes
that entrepreneur helps the process of
development in an economy
He says that an entrepreneur is the one who
is innovative, creative and has a foresight
According to him, innovation occurs when
the entrepreneur –
◦ Introduces a new product
◦ Introduces a new production method
◦ Opens up a new market
◦ Finds out a new source of raw material supply
◦ Introduces new organization in any industry
SAYANTAN GM
29. McClelland’s Achievement
Motivation Theory
This is a psychological theory.
Developed by David Mc Clelland as an
Achievement motivation theory.
Mc Clelland proposed that there are three
major needs or motives for personnel
accomplishments:
1. Need for achievement
2. Need for affiliation
3. Need for power
SAYANTAN GM
30. McClelland identified 2 characteristics of
entrepreneurship
• Doing things in a new and better way
• Decision making under uncertainty
He stressed that people with high
achievement orientation (need to succeed)
were more likely to become entrepreneurs
Such people are not influenced by money
or external incentives
They consider profit to be a measure of
success and competency
SAYANTAN GM
31. KUNKAL’S THEORY OF
ENTREPRENEURIAL SUPPLY
Advocated by John H. Kunkal
He has presented a theory of entrepreneurial
behaviour in connection to the development of
entrepreneurship
According to him, psychological & sociological
variables are the main determinants for the
emergence of entrepreneurs.
Entrepreneurial behaviour is a function of
surrounding and social structures, both past and
present and can be readily influenced by the
manipulative economic and social incentives.
SAYANTAN GM
32. The supply and development of an entrepreneur depends
upon the existence and extensiveness of four structure
i.e., limitation structure, demand structure, opportunity
structure, and labour structure.
a. Demand Structure: It implies economic demand with
relation to changes in economic development &
government polices. Demand structure can be
augmented with the help material rewards which can
influence entrepreneurial behavior.
b. Limitation structure: It is originally socio-cultural in
character. In this structure, entrepreneur is regarded as
the most deviant individual in the society & that’s why
the society restricts specific activities that influence all
members in the society.
SAYANTAN GM
33. c. Labour structure: It refers to the supply of skilled &
willing labour. The structure is governed by a large
numbers of factors such as racial stock, available job
alternatives, traditionalism, mobility of labour etc.
d. Opportunity structure: It is the most important
structure governing the supply of entrepreneurs. The
structure refers to the technological & managerial
skills, information about techniques of production,
market structure & supply of capital.
SAYANTAN GM
35. ENTREPRENEURIAL DEVELOPMENT
PROGRAMMES
• EDP IS AN EDUCATIONAL PROCESS OF AN ENDEAVOUR IN HRD.
• ENTREPRENEURSHIP REQUIRES AN ENVIRONMENT IN WHICH AN
ENTREPRENEUR CAN LEARN AND DISCHARGE HIS FUNCTIONS.
• JOSEPH STEPANEK IDENTIFIES INTELLIGENCE, MOTIVATION,
KNOWLEDGE AND OPPORTUNITY AS THE PRE-REQUISITES FOR
ENTREPRENEURIAL DEVELOPMENT.
SAYANTAN GM
36. • EDP IS A PROGRAMME MEANT TO DEVELOP ENTREPRENEURIAL
ABILITIES AMONG THE PEOPLE.
• A PROGRAMME, FORMALLY, DESIGNED TO HELP AN INDIVIDUAL
IN STRENGTHENING HIS/HER ENTREPRENEURIAL MOTIVE AND
IN ACQUIRING SKILLS AND CAPABILITIES NECESSARY FOR
PLAYING ENTREPRENEURIAL ROLE EFFECTIVELY.
• ACADEMIC EXERCISE TO BUILD UP HUMAN RESOURCES BY
INDUCING THEM TO TAKE UP ENTREPRENEURIAL ACTIVITIES
THROUGH MOTIVATION.
• IT REFERS TO INCULCATION, DEVELOPMENT AND POLISHING
OF ENTREPRENEURIAL SKILLS INTO A PERSON NEEDED TO
ESTABLISH AND SUCCESSFULLY RUN HIS/HER ENTERPRISE.
SAYANTAN GM
37. NEED & IMPORTANCE/RELEVANCE
OF EDP
1. CREATION OF EMPLOYMENT OPPORTUNITIES
2. ENSURE BALANCED REGIONAL DEVELOPMENT
3. OPTIMUM USE OF LOCAL RESOURCES
4. IMPROVEMENT IN THE STANDARD OF LIVING OF THE PEOPLE
5. TO SUPPORT SOCIO-ECONOMIC DEVELOPMENT
6. ENHANCING MANAGERIAL ABILITIES
7. IMPROVEMENT IN PER CAPITA INCOME
8. MAINTAIN SOCIAL PEACE AND ORDER
SAYANTAN GM
38. ROLE OF GOVERNMENT IN
ENTREPRENEURSHIP DEVELOPMENT
• GOVERNMENT PLAYS A VERY IMPORTANT ROLE IN DEVELOPING
ENTREPRENEURSHIP
• GOVERNMENT DEVELOPS INDUSTRIES IN RURAL AND
BACKWARD AREAS BY GIVING VARIOUS FACILITIES WITH THE
OBJECTIVE OF BALANCED REGIONAL DEVELOPMENT.
• VARIOUS INSTITUTIONS WERE SETUP BY THE CG AND SG.
• THE MOST PROMINENT ORGANIZATIONS SPECIFICALLY
FUNCTIONING IN NE INDIA INCLUDES: KVIC, KVIB, NEDFI,
DI&CC, IIE, SISI, AIDC,AIIDC ETC.
SAYANTAN GM
39. INDUSTRIES
COMMISSION(KVIC):
KVIC is a statutory body created by an Act of
Parliament and became operative from April, 1957.
KVIC is established under the Khadi and Village
Industries Commission Act, 1956.
KVIC is engaged in the task of promoting and
developing Khadi and Village Industries for
providing employment opportunities in the rural
areas.
Broad objectives of KVIC:
• Social objective providing employment
• Economic objective producing saleable articles
• Wider objective creating self reliance amongst
the people and building up a strong rural
community spirit.
SAYANTAN GM
40. FUNCTIONS OF KVIC:
The KVIC is charged with the planning, promotion,
organization and implementation of programmes for
the development of Khadi and other village
industries in the rural areas.
Builds up a reserve of raw materials and
implements for supply to producers, creation of
common service facilities for processing of raw
materials and provision of facilities for marketing of
KVI products.
Organizes training of artisans engaged in Khadi and
Village Industries.
Promotes research in the production techniques
and equipments employed in the KVI sector.
SAYANTAN GM
41. FUNCTIONS OF KVIC:
Encourages the use of non conventional energy,
bio fertilizer and other organic products.
Provides financial assistance to institutions and
persons who are engaged in the development
and operation of KVIs.
Undertakes studies of the problems of KVIs.
Promoting the sale and marketing of Khadi or
products of village industries or handicrafts.
SAYANTAN GM
42. KHADI AND VILLAGE INDUSTRIES
BOARD (KVIB):
KVIB is a state level statutory body formed by an Act
of the concerned state legislature.
The Assam KVIB Act was passed in the year 1955.
The basic objective of the board is to work towards
organizing, developing and regulating the village
industries in the state. Thus, it is a state level
organization.
Functions of KVIB:
To start, encourage, assist and carry on KVIs and to
trade and business on such industries.
To help the people, providing them with work in their
homes and to give those monetary help.
To train people with a view to equipping them with the
necessary knowledge for starting or carrying on KVIs.
SAYANTAN GM
43. To manufacture tools and equipments required for
carrying on KVIs.
To arrange for supply of raw materials and tools
and equipments for KVIs.
To sell and arrange to sell the products of the
KVIs.
To sanction loans to individuals and institutions as
per the limit set for the purpose from time to time.
SAYANTAN GM
44. NORTH EASTERN DEVELOPMENT
FINANCE CORPORATION (NEDFi)
Incorporated on Aug, 9, 1995 as a public limited
company.
Became operationalized on 23rd Feb, 1996 with its
headquarters at Guwahati.
Registered as NBFC in 2002 with the RBI.
The NEDFi provides financial assistance to micro,
small, medium and large enterprises for setting up
industrial and infrastructural projects in the NE
Region.
Its main objective is to provide finance and other
facilities for promotion, expansion and modernization
of industrial and infrastructure projects in the region.
SAYANTAN GM
45. The 3 main objectives of NEDFi are:
a. To carry on and transact the business of providing
credit and other facilities for promotion, expansion
and modernization of industrial enterprises and
infrastructural projects in the North Eastern Region
of India.
b. To carry on and transact the business of providing
credit and other facilities for promotion of agri-
horticulture plantation, medicinal plantation,
sericulture plantation, aquaculture, poultry, dairy and
animal husbandry development.
c. To initiate large involvement of rural population in the
economic upsurge of the society and faster
economic growth of different parts of the region.
SAYANTAN GM
46. FUNCTIONS OF NEDFi:
To provide financial assistance to MSMEs
To extend micro finance to NGOs and voluntary
agencies with good track records.
To offer consultancy and advisory services to the
SG, private sectors and other agencies.
To provide training to entrepreneurs on export
procedure and documentation.
To provide marketing support to artisans and
craftsmen.
To focus on the development of organic farming and
also focus on bringing foreign investment to India.
SAYANTAN GM
47. DISTRICT INDUSTRIES &
COMMERCE CENTRE (DI&CC):
Started by the Central Government in 1978 as the
nodal agency for the development of small and
village industries.
It provides support services needed for the
development of small scale industries in the
country.
The DI&CC operate from the district headquarters
of Assam.
The DI&CC works for the promotion and
development of indigenous entrepreneurship in
the state through policy supports initiated by the
CG and SG.
SAYANTAN GM
48. FUNCTIONS OF DI&CC:
To develop new entrepreneurs by conducting
entrepreneurial motivation programmes throughout
the district.
To facilitate the compulsory filing of MOA by the
manufacturing sector medium enterprises as per the
MSMED Act, 2006.
To facilitate the voluntary filing of MOA by the Micro
and Small Enterprises.
To facilitate pre registration of the enterprises to avail
benefits under the different schemes of assistance
and supports under the central and state
governments.
To organize training programmes to rural
entrepreneurs and also assist other institutions
imparting training to train the small entrepreneurs.
SAYANTAN GM
49. INDIAN INSTITUTE OF
ENTREPRENEURSHIP(IIE):
Established in 1993 by the erstwhile Ministry of
Industries (now Ministry of MSMEs), GOI.
Started functioning from April 1994.
Its main objective is to undertake training, research
and consultancy activities in SMEs with special focus
on Entrepreneurship Development.
SAYANTAN GM
50. Objectives of IIE:
To promote and develop entrepreneurship
To conduct research and provide consultancy for
entrepreneurship development.
To promote greater use of IT in the activities of IIE.
To comply with statutory responsibility.
Functions of IIE:
To design and organize training activities for different
target groups and undertaking research .
To identify training needs and offer training programmes
to the governments and NGO engaged in promoting
entrepreneurship.
To identify, design and conduct training programmes for
existing entrepreneurs.
To prepare and publish literature related to
entrepreneurship.
To organize seminars, workshops and conferences for
providing a forum for interaction and exchange of views
by various agencies and entrepreneurship.
SAYANTAN GM
51. SMALL INDUSTRIES SERVICE
INSTITUTE (SISI)
Set up by the GoI in Guwahati to supplement the
activities of the state government for
promotion/development of SSIs.
SISI’s network in the state of Assam, Meghalaya and
Arunachal Pradesh is a part of the national network
under the Small Industries Development
Organization (SIDO).
SISIs provide assistance and renders various
extension services for the growth and development
of small scale ventures in the states of Assam,
Meghalaya and Arunachal Pradesh.
SAYANTAN GM
52. • SERVICES PROVIDED BY THE SISI INCLUDE:
1. TECHNICAL CONSULTANCY SERVICES
2. PREPARATION OF PROJECT REPORTS
3. MANAGEMENT DEVELOPMENT SERVICES
4. ECONOMIC INFORMATION SERVICES
5. MODERNIZATION ASSISTANCE
6. REVIVAL OF SICK UNITS
7. TRAINING SERVICES
SAYANTAN GM
53. ASSAM INDUSTRIAL
DEVELOPMENT CORPORATION
LIMITED
AIDC is one of the industrial implementing
agencies in medium and large sector.
Its objectives include:
a. Identification, promotion of medium and large
industrial projects in the state.
b. Implementation of the state government’s package
of incentives for entrepreneurs.
c. Providing financial assistance.
d. Rehabilitation and management of sick industries.
e. Development of HRs.
f. Providing infrastructural support.
g. Facilitating export promotion.
SAYANTAN GM
54. INFRASTRUCTURE
DEVELOPMENT CORPORATION
(AIIDC)
Established in the year 1998 under AIIDC
Act,1990.
Its primary service is to make available built up
sheds and developed industrial plots to the
entrepreneurs.
Mission is to create industrial Infrastructure
throughout the state by setting up new
infrastructure like Integrated Industrial Area,
Industrial Estate, Infrastructural Development
Centre (IIDC), Industrial Growth Centre (IGC),
Border Trade Centre (BTC), Regional Industrial
Development(RID) and also improvement &
Maintenance of the existing Industrial
SAYANTAN GM
55. • NATURE OF FUNCTIONS:
• ACT AS A FACILITATOR IN THIS JOURNEY TOWARDS
INDUSTRIAL GROWTH.
• PROVIDE STATE OF THE ART INFRASTRUCTURAL FACILITIES TO
THE INVESTORS.
• CATALYSES’ THE GROWTH OF INDUSTRIAL ASSAM.
• WORKS FOR A GOVERNMENT THAT CARES.
SAYANTAN GM
57. ROLE OF ENTREPRENEURSHIP IN
ECONOMIC DEVELOPMENT
1. UTILIZATION OF LOCAL RESOURCES
2. CREATES EMPLOYMENT AVENUES
3. GENERATES NEW INCOME
4. IMPROVEMENT IN THE STANDARD OF LIVING
5. INTRODUCTION OF NEW PRODUCTS IN THE MARKET
6. CREATES NEW DEMAND FOR GOODS & SERVICES
7. ENSURES CAPITAL FORMATION
8. CREATES VALUE ADDITION IN THE ECONOMY
9. ENHANCES GOVERNMENT REVENUE
10. BALANCED REGIONAL DEVELOPMENT
SAYANTAN GM
58. WOMEN ENTREPRENEUR
WOMEN OR A GROUP OF WOMEN WHO INITIATE, ORGANIZE
AND OPERATES A BUSINESS ENTERPRISE.
WOMEN INITIATES A BUSINESS, GATHERS ALL THE REQUIRED
RESOURCES, UNDERTAKES RISKS, FACES CHALLENGES,
MANAGES THE BUSINESS INDEPENDENTLY ETC.
IN 1978, THE GOI FIRST DEFINED WOMEN ENTREPRENEUR AS “
(A WOMAN WHO OWNS AND CONTROLS AN ENTERPRISE
HAVING MINIMUM FINANCIAL INTEREST OF 51% OF THE
CAPITAL) AND GIVING AT LEAST 51% OF THE EMPLOYMENT
GENERATION IN THE ENTERPRISE TO WOMEN.”
SAYANTAN GM
59. PROBLEMS /CHALLENGES OF WOMEN
ENTREPRENEURSHIP
SOCIAL ATTITUDE AND SUPPORT
MOBILITY CONSTRAINT
DUAL RESPONSIBILITY
SCANTY FINANCIAL RESOURCES
LOW RISK BEARING CAPACITY
LOW EDUCATIONAL BACKGROUND
ABSENCE OF SKILL AND MOTIVATION
LACK OF INFORMATION
ABSENCE OF GROUP EFFORTS
HIGH COST OF PRODUCTION
SAYANTAN GM
60. GOVERNMENT INCENTIVES AND
SUPPORTS TO WOMEN
ENTREPRENEURS
1. SWARNAJAYANTI GRAM SWAROJGAR YOJNA PROVIDES
INCOME TO THE RURAL POOR THROUGH ESTABLISHMENT OF
SHGS.
2. INCOME GENERATING SCHEME UNDER THE DEPARTMENT OF
WOMEN AND CHILD DEVELOPMENT GRANTS FINANCIAL
ASSISTANCE FOR TRAINING AND SETTING UP PROJECTS FOR
NEEDY WOMEN.
3. PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME
THIS SCHEME IS GENDER FREE; PROVIDES SUBSIDIES
SAYANTAN GM
61. 4. TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND
DEVELOPMENT (TREAD) SCHEME FOR WOMEN
ECONOMIC EMPOWERMENT THROUGH DEVELOPMENT OF
ENTREPRENEURIAL SKILLS
5. EXHIBITIONS FOR WOMEN UNDER PROMOTIONAL PACKAGE
FOR MICRO AND SMALL ENTERPRISES
ENCOURAGES SMALL AND MICRO MANUFACTURING UNITS
OWNED BY WOMEN
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62. OPPORTUNITIES/PROSPECTS
TOWARDS WOMEN
ENTREPRENEURSHIP
1. GOVERNMENT INCENTIVES AND SUPPORTS
2. SOCIO-ECONOMIC CHANGE ENCOURAGEMENT FROM
HUSBANDS OR FAMILY MEMBERS
3. CHANGING ROLE OF PROMOTIONAL AGENCIES, BANKS AND
GOVERNMENT TRAINING PROGRAMMES SPONSORED BY
GOVT, DI&CCS CREATED SEPARATE WOMEN CELL
4. POSSIBLE INTEGRATION OF INDIA’S NE WITH SOUTH EAST
ASIAN NATIONS STILWELL ROAD (LEDO ROAD) CONNECTS
INDIA WITH BURMA ROAD WHICH FURTHER CONNECTS TO
CHINA BOOST UP TOURISM SECTOR
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63. RURAL ENTREPRENEURSHIP
RURAL ENTREPRENEUR CARRIES OUT ENTREPRENEURIAL
ACTIVITIES IN THE RURAL SECTOR OF THE ECONOMY
RURAL ENTREPRENEURSHIP ENTREPRENEURSHIP EMERGING
IN RURAL AREAS RURAL INDUSTRIALIZATION
SETTING UP AND OPERATING A BUSINESS VENTURE WITHIN
THE DOMAIN OF RURAL ENVIRONMENT
• “ ANY INDUSTRY LOCATED IN RURAL AREA, VILLAGE OR TOWN
WITH A POPULATION OF 20,000 AND BELOW AND AN
INVESTMENT OF RS. 3 CRORES IN PLANT AND MACHINERY IS
CLASSIFIED AS A VILLAGE INDUSTRY.” --- GOI
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64. ROLE OF RURAL ENTREPRENEURSHIP
IN ECONOMIC DEVELOPMENT
1. PROVIDES EMPLOYMENT OPPORTUNITIES
2. ACCELERATES INCOME GENERATION IN RURAL AREAS
3. CHECKS RURAL-URBAN MIGRATION
4. ENSURES SUSTAINED AND CONTINUOUS DEVELOPMENT OF
RURAL ECONOMY
5. PAVES THE WAY FOR RURAL DEVELOPMENT
6. ENHANCES SKILL OF RURAL WORKERS
7. MAKES NEW GOODS AND SERVICES AVAILABLE IN THE RURAL
MARKETS
8. CONTRIBUTES TOWARDS CAPITAL FORMATION
9. ENHANCES SOCIO-ECONOMIC STATUS OF RURAL PEOPLE
10. IMPROVED STANDARD OF LIVING
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65. PROBLEMS/CHALLENGES OF RURAL
ENTREPRENEURSHIP IN INDIA
1. LACK OF ENTREPRENEURSHIP ZEAL AMONG THE RURAL
PEOPLE.
2. LOW RISK BEARING CAPACITY.
3. POOR TRANSPORTATION NETWORK.
4. LACK OF FINANCE.
5. LACK OF SKILLED LABOUR.
6. LACK OF POWER.
7. LACK OF ENTREPRENEURIAL COMPETENCY.
8. POOR QUALITY OF PRODUCTS.
9. NEGATIVE ATTITUDE.
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66. PROSPECTS/OPPORTUNITIES/
ADVANTAGES OF RURAL
ENTREPRENEURSHIP
1) AVAILABILITY OF LAND.
2) ABUNDANT LABOUR FORCE.
3) READY MARKET.
4) INITIATION OF PURA (PROVIDING URBAN AMENITIES TO
RURAL AREAS) MODEL FOR DEVELOPMENT.
5) GOVERNMENT INCENTIVES AND SUPPORTS.
6) AVAILABILITY OF RAW MATERIALS.
7) LOW COST OF PRODUCTION.
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68. MICR0, SMALL & MEDIUM
ENTERPRISES:
The GOI enacted the Micro, Small &
Medium Enterprises Development Act,
2006 which defines micro, small &
medium enterprises as under:
Enterprises engaged in manufacture or
production:
A Micro Enterprise is an enterprise where
investment in plant & machinery does not
exceed Rs. 25 lakhs.
Small Enterprise Investment is more than
Rs.25 lakhs but does not exceed Rs. 5
crores.
Medium Enterprise Investment is more
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69. Enterprises engaged in providing or rendering
of services:
A Micro Enterprise is an enterprise where investment
in equipment does not exceed Rs. 10 lakhs.
Small Enterprise Investment is more than Rs.10
lakhs but does not exceed Rs. 2 crores.
Medium Enterprise Investment is more than Rs. 2
crores but does not exceed Rs. 5 crores.
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70. MICRO, SMALL & MEDIUM
ENTERPRISES DEVELOPMENT
ACT, 2006:
MSMED ACT, 2006 is an act to provide for
facilitating the promotion and development and
enhancing the competitiveness of micro, small
and medium enterprises and for matters
connected therewith or incidental thereto.
The GOI enacted MSMED Act, 2006 on June 16,
2006 (notified on Oct 2, 2006) with a view to
boost the development of small enterprises in
the country.
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71. SALIENT FEATURES OF MSMED
ACT, 2006:
1. Defines “Enterprise” instead of “Industry” to
give due recognition to service sector:
service sector has been incorporated in
the MSMED ACT main focus was on
service sector.
2. Investment ceiling for manufacturing small
enterprises rose to Rs. 5 crores:
earlier, the coverage of investment was
inadequate
present investment ceiling of Rs. 5 crores
will encourage industrialists to take up
expansion and modernization
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72. 3. Defines “medium enterprise” to facilitate
achievement of economies of scale:
The small enterprises need to expand its scale of
operations to achieve economies of scale (reduction
in the per unit cost)
Expansion of small enterprises will qualify itself as a
medium enterprise
4. Lengthy Registration process substituted by
an optional filing of memorandum by MSEs:
Earlier, enterprises need to be registered with DI&CC
for one year and then final registration was to be
granted.
But, now, such lengthy formalities are not required.
Filing of memorandum is mandatory for
manufacturing sector while it is optional for service
sector.
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73. 5. Strengthens the legal provisions to check
delayed payments to MSEs:
Delayed payments by customers is a serious
problem.
The Act provides that there must be a formal
agreement between the buyer and the seller that
the buyer must pay the required amount within the
stipulated time period.
6. Apex Consultative Body named the National
Board for Micro, Small and Medium
Enterprises has been created:
Headed by the Central Minister in charge of
MSMEs and consists of 46 members which
include MPs, State Governments, RBI, SIDBI,
NABARD etc.
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74. 7. Functions of MSME Board clearly dictated:
Examine the factors affecting the promotion and
development of MSMEs and review the policies and
programmes of the CG in this regard.
Make recommendations on various matters referred
by the CG.
Advise the CG on the use of funds.
8. Creation of Advisory Committee:
Not more than 5 officers of the CG
Not more than 3 representatives of State
Governments
One representative each of the Associations of
MSMEs
Functions of the Advisory Committee:
Examine the matters referred to it by the MSME Board
To advise the CG on certain matters
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75. 9. Investment Ceiling for various groups of
enterprises:
Manufacturing Enterprises:
MICRO: Rs. 25 lakhs/ SMALL: Rs. 5 crores/ MEDIUM: Rs. 10
crores
Service Enterprises:
MICRO: Rs. 10 lakhs/ SMALL: Rs. 2 crores/ MEDIUM: Rs. 5
crores
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76. MICRO, SMALL & MEDIUM
ENTERPRISES DEVELOPMENT
ORGANIZATION
(MSME-DO)
On enactment of the MSME Act, 2006, MSME-DO
came into being after the revocation of Small
Industrial Development Organization (SIDO).
MSME-DO is the apex body for promotion and
development of MSMEs in India.
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77. FUNCTIONS OF MSME-DO:
To advise the government of India in formulation of
national policy for promotion and development of
MSME Sector.
To provide techno-economic and management
consultancy, common facilities and extension
services to the MSME Sector.
Extending facilities for technology upgradation,
modernization, quality improvement and meeting
infrastructural needs of the MSME sector.
Developing HRs through training and skill
upgradation.
Maintaining a close liaison with the Central
Ministries, Planning commission, SG, FIs and the
organizations concerned with the development of
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