Entrepreneurship Development in India

Debasish Biswas, Chanchal Dey

• Publisher: Routledge
• Year: 2021
• Print ISBN: 9780367762216
• eBook ISBN: 9781000412055
• Topic: Business
• Subtopic: Business General
• Index: Business

Entrepreneurship development is a major area of focus today as it has huge potential in creating jobs and self-employability and thus contributing to economic development. India, in the last few years in particular, has seen exponential growth of start-ups and new-age entrepreneurs. Both the Central and State Governments have been taking proactive steps towards the development of entrepreneurship in the country. The Government has launched various schemes and programmes to attract investors and create a healthy ecosystem for entrepreneurship. India is one of the largest homes of start-ups in the world and has been highly successful in bringing significant amounts of Foreign Direct Investment (FDI). Moreover, the Government is taking active steps in removal of the bureaucratic hurdles and bottlenecks, so that entrepreneurship development is encouraged. In order to promote the culture of entrepreneurship development, the subject has been made part of the curriculum at both undergraduate and postgraduate levels across disciplines.

This book is a sincere attempt to build the fundamentals of the subject amongst students alongside motivating them to become future entrepreneurs. It will be of interest to researchers, academics, and students in the fields of business administration, management, and entrepreneurship.

1
Introduction to Entrepreneurship

Entrepreneurship is associated with the creation of something that is new and scalable with the help of time and effort. Entrepreneurship is considered challenging and accompanies significant financial, social, and mental strain but it is also equally rewarding. Psychological, social, personal, environmental, and economic factors have profound effects on entrepreneurship development.

1.1 Meaning

Entrepreneurship

Entrepreneurship refers to the art of creating, nurturing, and sustaining a business unit with the intention of generating profits in the future. Through entrepreneurship, an entrepreneur looks to take action towards bringing a positive change in society alongside bringing people together. Entrepreneurs transform and execute their ideas into action. Entrepreneurship is the collection of skills of an entrepreneur including the tendency to take risks and aspirations to build wealth.

According to Hisrich (1988), entrepreneurship is a dynamic process dedicated to the creation of wealth. It refers to doing something new by devoting time, effort, and undertaking the financial, emotional, social, and psychological risks. In return, entrepreneurship gives both monetary and non-monetary benefits in the form of personal satisfaction and freedom to the individual.

Kuratko and Hodgetts (2004) opined that entrepreneurship is a process that involves creation and innovation by four elements, that is, individual, organisation, environment, and cooperation with the agencies in Government, institutes.

Figure 1.1 Entrepreneurial process

Characteristics of Entrepreneurship

• Perpetual process: Entrepreneurship is a creative, structured, and enduring process for managing the business efficiently.
• Innovation is the essential characteristic of entrepreneurship that brings a change in the market and helps the enterprise to be positioned favourably.
• Measuring risks: An entrepreneurial venture in order to survive must be able to identify the risks involved. Although calculated risks are taken to generate profits but only after due consideration.
• Making profits is one of the strongest impulses in entrepreneurship. It helps in smooth operation which leads to the expansion of the business.
• Network building: Entrepreneurship helps in building strong networks with suppliers, distributors, banks, and other stakeholders which helps to operate the business smoothly.
• Market trends: In order to stay competitive, entrepreneurial ventures must assess market trends periodically. This also enables to be ready for future uncertainties in the market.

Entrepreneur

An entrepreneur is an individual who satisfies a specific need of the society with his/her pioneering idea. Entrepreneurs make a modern business successful as they spot opportunities, lay innovation that brings profits, and helps the business remain competitive. Some of the important qualities of an entrepreneur are to be innovative, optimistic, independent, team player, perseverant, committed, and so on.

According to Scarborough and Zimmerer (1988), an entrepreneur creates new business and faces uncertain circumstances to obtain profit and growth by identifying opportunities and come up with means to accomplish the same. Kuratko and Hodgetts (2004) opined that an entrepreneur is the one who tries to organise, manage, and bear the risks in business. Entrepreneurs with their dedication and commitment obtain new resources and revive the existing ones to generate profit. Some famous names such as Steve Jobs, Bill Gates, Larry Page, Jeff Bezos, Mark Zuckerberg, and many more have changed the world with their innovative and unique products and services.

Table 1.1 Difference between entrepreneur and entrepreneurship

Sl. no.	Entrepreneur	Entrepreneurship
1.	An entrepreneur is an individual who has an innovative idea and works to transform it into reality alongside enduring the risks involved	Entrepreneurship refers to the activity of initiating a business, usually a start-up that offers unique products and services to the customers
2.	It indicates an individual with a unique idea and wishes to realise it	It is a procedure that takes steps to make the idea happen
3.	The individual pursues an innovative idea until it fructifies	It is the process by which an innovation is implemented

Table 1.2 Difference between entrepreneur and enterprise

Sl. no.	Entrepreneur	Enterprise
1.	It refers to an individual	It refers to the business entity
2.	The individual takes the risk	It is the unit that involves risk and uncertainty
3.	The individual makes the decision	It acts as the blueprint where decisions regarding the products and services are taken and implemented
4.	The individual himself/herself indulged in the production and distribution of the offerings	It signifies the harmony between the staff and production as well as the distribution of the offerings

Table 1.3 Difference between entrepreneur and intrapreneur

Sl. no.	Entrepreneur	Intrapreneur
1.	The individual who establishes his/ her own business with an innovative concept	The employee of an organisation responsible for bringing innovations in the products and services of the organisation
2.	Relies on instincts	Responsible for the revival of offerings
3.	Utilises the resources of his/her own	Organisation provides the resources
4.	Responsible for raising his/her own capital	Organisation provides the required finance
5.	Establishes a new enterprise	Works in the existing organisation
6.	Works independently	Work depends on the organisational guidelines
7.	Risks are undertaken by the individual	Risks are borne by the organisation

Table 1.4 Difference between entrepreneur and manager

Sl. no.	Entrepreneur	Manager
1.	An individual who builds an enterprise and bears the risks involved with the motive of making profits	An individual who is responsible for managing and administering an organisation
2.	The intention is to bring innovation to the market	The intention is to get more authority or maintain the status quo
3.	Works as an owner	Works as an employee
4.	Mostly focused on start-ups	It is focused on the existing operations
5.	Works in an informal setup	Works in a formal setup
6.	Generally, takes risks	Generally, avoids risks
7.	Take decisions based on instincts	Take decisions based on the facts and contingencies

1.2 Background

Marco Polo is often regarded as one of the first entrepreneurs in the world. In the middle ages, an entrepreneur referred to people who controlled large production projects. In some cases, entrepreneurs could also control the projects where resources are supplied by the Government. Entrepreneurs also happen to be priests who had the authority to construct public buildings, churches, and so on.

During the 17th century, an entrepreneur was the individual who entered into a contract with the Government for the supply of agreed services or goods under fixed terms and prices. All the profits, losses, and risks involved were borne by the entrepreneurs. A French-Irish economist, Richard Cantillon remarked entrepreneurs were like insurance against risks (Nevin, 2013). John Law of France was one of the famous entrepreneurs of his time who founded The Royal Bank of France (Murphy, 1997).

In the 18th century, with rapid industrialisation, an entrepreneur referred to someone who seeks capital to fund his/her innovative pursuits. Thomas Edison who invented and developed a lot of innovative technologies was seen to be a capital user rather than a provider as he was unable to fund himself (Israel, 1998). A French economist Jean-Baptiste Say is credited to coin the term ‘entrepreneur’ around 1800 (Carlen, 2016). He opined that entrepreneurs move economic resources from lower to higher areas of productivity for greater yield (Koolman, 1971).

The role of entrepreneurs evolved a lot during the 19th century. An entrepreneur was someone who has started a business from scratch and was involved in each aspect of business functions in the early stages. Andrew Carnegie, who hailed from an impoverished Scottish family, made American Steel Industry to be one of the strongest forces to reckon with (Nasaw, 2007).

In the 20th century, entrepreneurs were started to be seen as someone capable of disrupting the existing norm...

Table of contents

• Cover
• Half Title
• Series Page
• Title Page
• Copyright Page
• Dedication Page
• Contents
• List of Figures
• List of Tables
• Foreword
• Preface
• Acknowledgements
• List of Abbreviations
• About the Authors
• 1 Introduction to Entrepreneurship
• 2 Entrepreneurship Around Us
• 3 Classification: Entrepreneurs and Entrepreneurship
• 4 Entrepreneurial Motivation and Creativity
• 5 Project and Financial Analysis
• 6 Funding and Organisational Support
• 7 Business Plan Development
• 8 Introduction to Research
• 9 Legal Issues and Legislation
• 10 Cases on Entrepreneurship
• Glossary
• Index