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Roles of Entrepreneurs in Economic Development

Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities. For years, economists viewed entrepreneurship as a small part of economic activity. But in the 1800s, the Austrian School of Economics was the first to recognize the entrepreneur as the person having the central role in all economic activity. Because it's entrepreneurial energy, creativity and motivation that trigger the production and sale of new products and services. It is the entrepreneur who undertakes the risk of the enterprise in search of profit and who seeks opportunities to profit by satisfying as yet unsatisfied needs. Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers and the products and services that are currently available. The entrepreneur then brings together the factors of production necessary to produce, offer and sell desired products and services. They invest and risk their money-and other people's money--to produce a product or service that can be sold at a profit.

Joseph Schumpeter's theory of entrepreneurship and modern growth accounting are used to explore the influences of entrepreneurship on economic development .First, the various effects that entrepreneurship exerts on growth and development are analyzed .By creating incremental improvements and shuffling productive resources, entrepreneurship pervades nearly every aspect of economic development.It also influences the rules of the game through which production and exchange are carried out.This type of entrepreneurship is not always productive. Some entrepreneurs use the legal system to stymie competitors who would enhance wealth if they were allowed to develop. The monetary value that entrepreneurship adds to processes of growth is then measured, primarily through the analysis and measurement of total factor productivity (TFP).A modified Keynesian technique for calculating a production gap is used to estimate the influence of institutions on economic growth. A comparison of the monetary values of productivity increases reveals the concentration of productivity gains among the various industries.The concentration of productivity increases provides evidence that entrepreneurship is an important source of productivity gains.(SAA) In general an entrepreneur plays an important roles in Growth accounting, Productivity measures, Total factor productivity, Value, Technical change, Schumpeter, Joseph A., Manufacturing industries, Arbitrage, Firm efficiency, Accounting, Innovation process, Organizational change, Regional development, Firm productivity, Economic development
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Managers of SMES Managerial skills for SMEs


To be successful in the implementation of the economic Growth and Jobs strategy, needs to foster entrepreneurial drive more effectively. The creation and development of SMEs are fundamental to create employment and to further economic growth. This means ensuring the competitiveness and growth possibilities of already existing enterprises as well as supporting the creation of new ventures. We thus need to ensure that SME managers are equipped with the skills they will need to successfully run and develop their companies in a complex world. In order to identify interesting initiatives from across Europe in the field of management capacity building and provide a basis for future policy development at local, national and European level, 19 EU Members States and Norway nominated a group of experts. The final report of the expert group on "Management capacity building" highlights the role of management capacity building to support the creation and growth of SMEs. Indeed, without the necessary management skills, many viable companies with good product offers never reach their potential or might even risk being led out of business. The Report provides 15 examples of "good practice" cases, in the areas of institutional models and networking initiatives, national and regional programmes and e-learning. These examples illustrate different successful ways of supporting management capacity building in SMEs. The Report concludes that all European based SMEs should be encouraged, if they have not already done so, to take the leap towards the integration in their activities of state of the art management tools. To achieve this, basic management and ICT skills need first to be fully mastered and then systematically complemented by a constant drive for further learning and improvement. The Report stresses that it is crucial to break up the isolation of head of SMEs and to ensure that SME managers have access to quality programmes, having a direct positive impact on the profitability of the firm. Short programmes responding to the life cycle of businesses and allowing for peer interactions were considered as most valuable by the expert group. Training actions on how to deal with crises times are specifically needed. Finally, a set of recommendations is proposed - addressing all the actors concerned - on how to strengthen management capacity building.

Training And Entrepreneurs Role in Economic Development


Training in Entrepreneurship Development A person who invests his resources to perform an economic activity is an Entrepreneur. Entrepreneurs share certain common characteristics that include ability to hard work, innovativeness, risk taking and a vision. It is common to associate the process Entrepreneurship with uncertainty, especially when introducing something that doesnt have a market yet. Hence an Entrepreneur must be able to seize right business opportunity.

This program introduces to the concept of Entrepreneurship and guides through complex process of setting up a business. It provides instructions on business planning and financial statements, possible sources of capital, the role of support agencies, and Entrepreneurship development programs Once the candidates have completed their training, they can take the exam required for certification. You can enroll for our programs by paying through four options: 1.You can pay online using your credit card 2. We can send a person to collect the cheque from your home or office. just send us your address 3. You can put a cheque in one of the HDFC bank branches or at ATM centres 4. You can always courier the cheque to us . please call us or write to us for our postal address Payments can be made by cheque/DD in favor of IACT GLOBAL. Cheque can be made for appropriate amount depending on which option you decide to take. These are average prices.

Entrepreneurship has been considered the backbone of economic development. It has been well established that the level of economic growth of a region to a large extent, depends on the level of entrepreneurial activities in the region. The myth that entrepreneurs are born, no more holds good, rather it is well recognised now that the entrepreneurs can be created and nurtured through appropriate interventions in the form of entrepreneurship development programmes. In the era of liberalization, privatization and globalization along with ongoing IT revolution, capable entrepreneurs are making use of the opportunities emerging from the evolving scenario. However, a large segment of the population, particularly in the industrially backward regions/rural areas generally lags behind in taking advantage of these opportunities. Therefore, there is a need to provide skill development and entrepreneurship development training to such people in order to mainstream them in the ongoing process of economic growth. Entrepreneurship development and training is, thus, one of the key elements for development of micro and small enterprises (MSEs), particularly, the first generation entrepreneurs. To undertake this task on regular basis, the Ministry has set up three national-level Entrepreneurship Development Institutes (EDIs). These are, the National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad; the Indian Institute of Entrepreneurship (IIE), Guwahati and the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida. Further, the Ministry has been implementing (in addition to the schemes of MSME-DO) an important scheme, namely, Scheme for Assistance for Strengthening of Training Infrastructure of Existing and New Entrepreneurship Development Institutes (EDIs). The main objectives of the scheme are (i) promoting entrepreneurship for creating self-employment through enterprise creation; (ii) facilitating creation of training infrastructure; and (iii) supporting research on entrepreneurship related issues. Further, in order to improve the success rate of the EDP trainees in the establishment of new enterprises, the Ministry has recently launched a new scheme, namely, Rajiv Gandhi Udyami Mitra Yojana (AScheme for Promotion and Handholding of Micro

and Small Enterprises). The main objective of this scheme is to provide handholding support to first generation entrepreneurs, through designated lead agencies i.e. Udyami Mitras. Under this scheme, the Udyami Mitras would provide guidance and assistance to the potential entrepreneurs registered with them, in preparation of project report, arranging finance, selection of technology,

marketing tie-ups with buyers, installation of plant and machinery as well as obtaining various approvals, clearances and NOCs etc. For providing this handholding assistance to the new entrepreneurs, the Udyami Mitras shall be paid handholding charges under the scheme.

SCHEME FOR ASSISTANCE FOR STRENGTHENING OF TRAINING INFRASTRUCTURE OF EXISTING AND NEW ENTREPRENEURSHIP DEVELOPMENT INSTITUTES (EDIs)
The scheme envisages providing financial assistance to State-level existing/proposed institutions meant for supporting entrepreneurship development and self-employment activities. Under this scheme, grant is given for setting up of new entrepreneurship development institutions (EDIs) and also for up-gradation and modernisation of existing EDIs in the country. Under the scheme, a matching grant of 50 per cent, subject to a ceiling of Rs.100 lakh, is provided for building, equipment, training aids etc., the balance being contributed by the State/Union Territory Governments and other agencies. The financial assistance provided under this scheme is only catalytic and supportive to the contribution and efforts of State/Union Territory Governments and other agencies. Under no circumstances grant funds provided under the scheme can be used to meet the recurring expenditure of the institute. The institutions/organisations seeking assistance under this scheme should be registered as notfor-profit organisation with entrepreneurship development as its main objective, should possess a clear title of the land required for setting up of the proposed/existing institution, have a separate bank account in a scheduled bank in which all receipts/funds received by the institute should be credited and payments made on the basis of authorisation by the Governing Council of the institute. All the proposals under this scheme are required to be recommended by and routed through the concerned State/UT Government.

NATIONAL INSTITUTE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (NI-MSME), HYDERABAD
NI-MSME, formerly known as National Institute of Small Industry Extension Training (NISIET), was set up in 1960 at New Delhi as a Department of Central Government under the Ministry of Commerce and Industry and was initially known as Central Industrial Extension Training Institute (CIETI). Subsequently, in 1962, it was shifted to Hyderabad and converted into an autonomous society. In 1984, the Institute was renamed as National Institute of Small Industry Extension Training (NISIET). After enactment of the MSMED Act, 2006, the Institute has been renamed as National Institute for Micro, Small and Medium Enterprises (NI-MSME), w.e.f. 11th April 2007. The Institute has 91 Annual Report 2007-2008

benefited not only the Indian micro, small and medium enterprises (MSMEs) but also those in other developing countries through a plethora of activities and thus helped in promoting self-employment and enterprise development. The Institute is constantly evolving in accordance with the changing times, modifying its focus with the emerging needs of MSMEs and providing solutions in the form of consultancy, training, research, and education. NI-MSMEs programmes are designed to have universal relevance for successfully training the entrepreneurs to face challenges and emerging competition in the era of globalisation. The academic activities of the Institute are organized through centres of excellence focusing on specific needs of the MSMEs. The Academic Council of the Institute is the central coordinating body for benchmarking, formulation and evaluation of academic activities and programmes. The performance of the Institute for 2006-07 (actual) and for the period of April December 2007 (actual) and the projection for the remaining three months of 2007-08 is presented are given Training in Entrepreneurship Development
A person who invests his resources to perform an economic activity is an Entrepreneur. Entrepreneurs share certain common characteristics that include ability to hard work, innovativeness, risk taking and a vision. It is common to associate the process Entrepreneurship with uncertainty, especially when introducing something that doesnt have a market yet. Hence an Entrepreneur must be able to seize right business opportunity. Cheque can be made for appropriate amount depending on which option you decide to take. These are average prices.

Essential Managerial Skills for SMES


Entrepreneurial initiative, development of small and medium-sized enterprises (SME) are a foundation for the stable and successful progress of a modern competitive economy. Small firms generate much of the market turbulence that not only creates an additional dimension of competition not captured in the traditional static measures of market structure, such as concentration, but also provides mechanisms of regeneration. Entrepreneurs are essential agents of change who accelerate the origination, application and spread of innovative ideas. They also create new social strata, which determine the social stability of a state. During the 70 years of Soviet Power there was not a place for any legal private initiative or entrepreneurship. Political and economic liberalization in the mid 1980s changed this situation. Private entrepreneurship began to spread in Russia in the late 1980s and flourished at the beginning of the 90s, considered as the conventional starting point for the emergence of new entrepreneurship. A key task of a system of education is in training future and current entrepreneurs and managers of small and medium-sized enterprises. Objectives. This course is designed to develop skills, concepts, mental attitudes, and knowledge relevant to creating and managing a new venture. The capabilities gained will apply to potential entrepreneurs interested in starting a new business as well as in managing existing one. The course examines the nature of the entrepreneur and the entrepreneurial process, and some of the critical ingredients in success and failure. In particular, the course discusses the driving forces behind the process, namely the founders and the market opportunities. Considerable attention will be given to the screening and evaluation of ideas and new business opportunities. The course also examines how entrepreneurs obtain and utilize resources available to them. Introduction. Entrepreneurship Economics. Defining the term "Entrepreneurship". Theories of entrepreneurship Economics. Small business, innovation and uncertainty. The problem of survival. Exceptions to the failure rule. Small business in Russian Economy. Stage of entrepreneurship development in Russia. Historical background for entrepreneurship in Russia. The Entrepreneurial Process. Critical factors for starting a new business. Real-world environmental context and central driving forces of entrepreneurship. The benefits of entrepreneurship. The potential drawbacks of entrepreneurship. Critical stage in small business growth. Trends in entrepreneurship. Entrepreneurs philosophy. Enterprising man vs.

executive manager. New venture ideas and opportunities recognition. The role of ideas in entrepreneurship. Pattern recognition. Finding ideas. Idea and opportunity. Recognizing opportunities. Opportunity characteristics: durable, situational, real. Screening opportunities venture opportunity framework of analysis. Gathering information. Resources and capabilities. Entrepreneurial finance. Identifying attributes of strategic resources. Resource types: physical, reputational, organizational, financial resources, intellectual and human, technological.(PROFITfactors) Entrepreneur as a human resource: psychological and sociological approaches. Finance crucial resource. Foundation of new venture finance. Determining financial needs. Working capital and cash-flow management. Across the Ventures life cycle. Start-up financing. Sources of financing: debt-based financing, equity-based financing, venture capital. New-venture valuation. Assetbased valuation. Earning-based valuation. Discounted cash-flow models. Legal form of small business. Russian civil law and form of a new business. The sole proprietorship. The partnership. Corporations, close corporations. Specifics of taxation. Choosing an appropriate legal form for a new business. The Business Plan. Importance of the business plan for start-up Planing and a business plan. Business plan as a selling document. Targeting and writing the business plan. Structure of the business plan. Style of the business plan. Entrepreneurial Strategies. Entrepreneurship and strategy. Entry wedges: new product/service, parallel competition franchising, exploiting partial momentum, customer sponsorship, government sponsorship, parent company sponsorship. Isolating mechanisms and first-mover advantage. Types of isolating mechanisms. Sources of first-mover advantage: technological leadership, switching costs, obtaining resources more quickly than others. Growth strategies. Motivation for growth. Focus effect and synergy effect. Quality as a strategy. Strategy and industry environments. Entrepreneurship inside a large corporation. Intrapreneurship Definition of "Intrapreneurship". Reasons why some corporations adopt it. The differences between intrapreneurship and entrepreneurship. The needs and

obstacles for intrapreneurship. The process of intrapreneurship. Seminar/tutorial description. Significance of Small Firms. Question to discuss:

List the pros and cons of running your own business List the political, economic, social and technological threats and opportunities facing small firms in Russia in the 21st century. Why it is important to study the small business failure rate and the cause of business failure. Search through recent business publications (especially those focusing on small companies) and find an example of an entrepreneur, past or present, who exhibits the entrepreneurial spirit of striving for success in face of failure. Prepare a brief report for your class.

New idea generation (class exercise) For this exercise divide your student group into teams of up to 5 students. Before beginning the process of generating ides for new ventures, it is useful to reflect on an old German proverb that says, "Every beginning is hard". If you allow yourself to think creatively, you will be surprised at the number of interesting ideas you can generate once you begin. The aim of this exercise is for you to generate as many interesting ideas as possible. While generating your ideas, do not evaluate them or worry about their implementation. Discussion and exercises in the rest of the class will allow you to evaluate these ideas to see if they are opportunities and to consider your own entrepreneurial strategy. And remember in any creative endeavor there are no right answers. Step 1. GENERATE A LIST OF AS MANY NEW VENTURE IDEAS AS POSSIBLE. Thinking about unmet or poorly filled customer needs you know of that have resulted from regulatory changes, technological changes, knowledge and information gaps, lags, asymmetries, and so forth, will help you generate such a list. Also think about various products and services (and their substitutes) and the providers of these products or services. If you know of any weaknesses or vulnerabilities, you may discover new venture ideas. Step 2.EXPAND YOUR LIST MUCH AS POSSIBLE. Think about your personal interests, your desired lifestyle, your values, what you feel you likely to do very well,

and contributions you would like to make. Step 3. Jot down insights, observations, and conclusions that have emerged about your business ideas or your personal preferences. Step 4. Sort the ideas into the 10 best, and make the concepts more original. At the end of the exercise you should have 20 30 truly creative new business ideas. Case "From the space to the ground" Questions:

Evaluate business opportunities for proposed business in context of real world and real time. How would you define competitive advantage of the Laboratory? Should Mr. Maydanik and his team start the business? Would you invest in the business? Join the venture? As a private investor, what valuation would you accept, and what would your position be in negotiating with the Laboratory team?

Key factors for entrepreneur success (resources)


Explain how entrepreneurial approach to resources differs from managerial? Define crucial resources for entrepreneur success Exercise: Inventory your personal resource base using the six types of resources. Evaluate these resources employing the four criteria. Comment on your individual potential to start a business that has the prospect of achieving sustainable competitive advantage.

Evaluation resources needed (class exercise) Look at the results of your previous exercise (idea generation). For each of the groups best ideas, do the following short assignments:

Describe the business in 25 words or less. The description should include the product/service, the customer, and the technology employed Describe the opportunity that you believe this business exploits. In other words, why do you think this is a great business idea? Describe resources you believe you would need to execute this new venture idea. Use the six categories. Which resource(s) will be the source of your competitive advantage? Estimate how much money it would cost to actually get this business started.

The estimate will be very rough, but try to make an educated guess. rinimatelstvo (Small Entrepreneurship) 1. Rossiyiskiyi economicheskiyi journal (Rus

How generation of Services plays an important roles in economic development