CHAPTER 1

INTRODUCTION
1.1 ENTREPRENEUR:
An Entrepreneur is a person who sets up a business or businesses,
taking on financial risks in the hope of profit. Someone who exercises
initiative by organizing a venture to take benefit of an opportunity
and, as the decision maker, decides what, how, and how much of a
good or service will be produced.
An entrepreneur supplies risk capital as a risk taker, and monitors and
controls the business activities. The entrepreneur is usually a sole
proprietor, a partner, or the one who owns the majority of shares in an
incorporated venture.
Schumpeter discovered that they
1. Greatly value self-reliance,
2. strive for distinction through excellence,
3. are highly optimistic (otherwise nothing would be undertaken),
and
4. always favor challenges of medium risk

1.1(a) 20 Common Characteristics Of Successful

Entrepreneurs:
1. Plan everything.
2. Manage money wisely.
3. Ask for the sale.
4. Remember it's all about the customer.

5. Become

shameless

obnoxious).

self-promoter

(without

becoming

Fig 1.1

6. Project a positive business image.

7. Level the playing field with technology.
8. Build a top-notch business team.
9. Become known as an expert.
10.

Create a competitive advantage.

11.

Be accessible.

12.

Build a rock-solid reputation.

13.

Sell benefits.

14.

Get involved.

15.

Grab attention.

16.

Master the art of negotiations.

17.

Design their workspace for success.

18.

Get and stay organized.

19.

Take time off.

20.

Limit the number of hats they wear.

1.1(b) What
challenging?

makes

being

an

ENTERPRENEUR

While being an entrepreneur does have its benefits, it also has its
challenges. When entrepreneurs first start out, they're often considered
2

a one-man show, meaning they're responsible for doing everything on

their own.
Finances
Time-Management
Self-Motivation
Lack of Focus

1.2 ENTERPRENEURSHIP:
Entrepreneurship is the process of starting a business or other
organization. The entrepreneur develops a business model, acquires
the human and other required resources, and is fully responsible for
its success or failure. Entrepreneurship operates within an
entrepreneurship ecosystem.
Entrepreneurship is the development of a business from the ground up
coming up with an idea and turning it into a profitable business.
But while the definition of entrepreneurship may be simple, its
execution is much more difficult.
"Entrepreneurship is the journey of opportunity exploration and risk
management to create value for profit and/or social good," said Ajay
Bam, a lecturer at the Lester Center for Entrepreneurship at the
University of California, Berkeley's Haas School of Business.
Individual entrepreneurs Analysis
Organizational level entrepreneurship
Inter-organizational entrepreneurshipNational (or macro)
level entrepreneurship

 Cross level comparison

1.2(a) How Is Entrepreneurship Good for Economic

Growth?
Entrepreneurs create new businesses, and new businesses in turn
create jobs, intensify competition, and may even increase productivity
through technological change. High measured levels of
entrepreneurship will thus translate directly into high levels of
economic growth. However, the reality is more complicated. There
are substantial bureaucratic barriers to formally creating a new
business, or simply that the economy is creating too few conventional
wage-earning job opportunities. While it is easy to see that starting a
new business to exploit a perceived business opportunity would lead
to economic development, it is also possible that necessity
entrepreneurship may not lead to economic development.

CHAPTER 2
THE ROLE OF GOVERNMENT IN SUPPORTING
ENTREPRENEURSHIP
Small and Medium-sized Enterprises (SMEs) in market economies
are the engine of economic development. Owing to their private
ownership, entrepreneurial spirit, their flexibility and adaptability as
well as their potential to react to challenges and changing
environments,

SMEs

contribute

to

sustainable

growth

and

employment generation in a significant manner. SMEs have strategic

importance for each national economy due a wide range of reasons.

Logically, the government shows such an interest in supporting
entrepreneurship and SMEs. There is no simpler way to create new
job positions, increasing GDP and rising standard of population than
supporting entrepreneurship and encouraging and supporting people
who dare to start their own business. Every surviving and successful
business means new jobs and growth of GDP. Therefore, designing a
comprehensive, coherent and consistent approach of Council of
Ministers and entity governments to entrepreneurship and SMEs in
the form of government support strategy to entrepreneurship and
SMEs is an absolute priority. There are no doubts that governments
should create different types of support institutions:
To provide information on regulations, standards, taxation,
customs duties, marketing issues;
To advise on business planning, marketing and accountancy,
quality control and assurance;
To create incubator units providing the space and infrastructure
for business beginners and innovative companies, and
To help in looking for partners, in order to stimulate
entrepreneurship and improve the business environment for
small enterprise.
(a) Training
(b) Marketing Assistance

(c) Promotional Schemes

(d) Concession on Excise Duty
(e) Credit Facility to MSME
(f) Policies and Schemes for Promotion of MSME Implemented
by State Governments
(i) Development and management of industrial estates
(ii) Suspension/deferment of Sales Tax
(iii) Power subsidies
(iv) Capital investment subsidies for new units set up in a particular
district
(v) Seed Capital/Margin Money Assistance Scheme
(vi) Priority in allotment of power connection, water connection.

2.1 Strategic importance of SMEs

Parallel with ownership reform and privatization, the number of
SMEs is increasing. The strategic importance of SMEs is today
acknowledged around the world for the following reasons:
small and medium-sized enterprises are contributing to employment
growth at a higher rate than larger firms.

 the private sector and in particular SMEs form the backbone of a

market economy and for the transition economies in the long-term
might provide most of the employment
support for SMEs will help the restructuring of large enterprises by
streamlining manufacturing complexes as units with no direct relation
to the primary activity are sold off separately.
through inter-enterprise cooperation, they raise the level of skills
with their flexible and innovative nature.
SMEs use and develop predominantly domestic technologies and
skills;

2.2 The Microcredit Sector in Bosnia and Herzegovina

1996-2005
The microcredit sector in Bosnia and Herzegovina had a significant
role during the post-war period in poverty reduction and support to
the small and medium entrepreneurship development among socially
endangered population that does not have a possibility to get financial
resources from traditional banks.

2.3 Presidency of the Santa Maria Da Feira European

Council of 19 and 20 June 2000.
Small enterprises are the driving force for innovation and job creation
in Europe. In order to stimulate entrepreneurship and improve the

business environment for small enterprises, the Heads of State or

Government and the European Commission have decided to work on
ten lines for action, i.e:
Education and training for entrepreneurship
Cheaper and faster start-up
Better legislation and regulation
Availability of skills.
Improving online access

CHAPTER 3
Government Initiatives Toward Entrepreneurship
Development
The global economic crisis which is manifested in balance of payment
deficits and high levels of inflation and poverty, calls for coordinated
efforts by all, especially the youth, to overcome societal shocks and
financial imbalances. Some policies designed to generate employment
include short-term monetary and fiscal measures aimed at stimulating
the domestic supply of goods and services, reducing inflation
pressures, and preventing the balance of payments deterioration.
Medium and long-term intervention programs and projects were
meant to raise production levels and generate employment.

An enduring claim in the field of entrepreneurship is that

entrepreneurial activity promotes economic growth and development.
This realization, in turn, generated a significant amount of interest in
how government policies may be instrumental in fostering
entrepreneurial activity, and whether their effects may be consistent
across countries. Entrepreneurial development has been conceived by
successive governments as a program of activities to enhance the
knowledge, skill, behaviour and attitudes of individual and groups to
assume the role of entrepreneurs. They have put in place confidence
for building successful programs in different parts. The seriousness of
unemployment has attracted government attention over the years.
Employment generation featured prominently in the post mediumterm National Development Plans (1962-1985) and this led to the
establishment of several government parastatals in addition to the
creation of institutions such as the Industrial Training Fund (ITF), to
drastically reduce the problem of underemployment.

3.1 Supporting Organisations

The Government has setup various organisations which specialize in
industry promotion & entrepreneurship development in different
sectors. The organisations provide policy framework support, in
addition to training & financial aid.
Khadi & Village Industries Commission
COIR Board

 Small Industries Development Bank of India

National Manufacturing Competitiveness Council
National Skill Development Corporation
State Level Initiatives
Individual states across India have setup specially focussed
organisations which work towards the development & support of
small scale industries. These organisations run specific promotional
schemes in addition to providing financial support to industries.
List of State Financial Corporations (SFCs)
List of State Industrial Development Corporations (SIDCs)

Development Support Organisations

Government of India has also set up various organizations that are at
the forefront in providing support and training for the budding
entrepreneurs. Few of them are:
Central Footwear Training Institute - Agra
Indo-German Tool Room - Ahmedabad
Indo-German Tool Room -Aurangabad
10

 Central Institute of Tool Design - Hyderabad

Central Tool Room - Ludhiana
Indo-German Tool Room - Indore
Central Tool Room & Training Center - Bubhaneshwar
Circle Telecom Training Center - Kolkata
Indo-Danish Tool Room - Jamshedpur
Institute for Design of Electrical Measuring Instruments
Electronics Service & Training Center - Ramnagar
Fragrance & Flavour Development Center - Kannuaj

CHAPTER 4

11

PROGRAMMES AND SCHEMES OF

GOVERNMENT OF INDIA
Office of Development Commissioner operates a number of schemes
for the MSME sector. At a glance these are:1. National Manufacturing Competitiveness Programme (NMCP)
Schemes Under XI Plan
2. Micro & Small Enterprises Cluster Development Programme
(MSE-CDP)
3. Scheme for Capacity Building
4. Credit Linked Capital Subsidy

Scheme for Technology

Upgradation
5. Credit Guarantee Scheme
6. ISO 9000/ISO 14001 Certification Reimbursement Scheme
7. Participation in the International Exhibitions/ Fairs
8. Financial Assistance for using Global Standards (GS1) in
Barcoding
9. Purchase and Price Preference Policy
10. Integrated Infrastructure Development (IID Scheme)
11. Mini Tool Rooms

12

12. MSME MDA

13. Assistance to Entrepreneurship Development Institute
14. Scheme of Micro Finance Programme
Programmes & Schemes of the Ministry of MSME
Scheme for International Cooperation
Scheme of Surveys, Studies and Policy Research
Entrepreneurship Development Institution Scheme
Scheme of fund for Regeneration of Traditional Industries
(SFURTI)
Rural Employment Generation Programme (REGP)
Product Development, Design Intervention and Packaging
(PRODIP)
Khadi Kairgar Janashree Bima Yojana for
Khadi Artisans
Interest Subsidy Eligibility Certification
(ISEC)
15. Special Development Progamme (SDP)

13

4.1 Government Schemes

Fig 4.1

1. Small Industries Development Organisation (SIDO) is an apex

body for promotion and development of small scale industries in
the country. SIDO has devised a comprehensive range of
schemes for providing credit facilities, technology support
services and marketing assistance, etc. Some of the
major schemes are: Credit Linked Capital Subsidy Scheme for Technology
Upgradation
Credit Guarantee Scheme
ISO 9000/ISO 14001 Certification Reimbursement Scheme
Integrated Infrastructure Development (IID Scheme)
SSI MDA Scheme
Assistance to Entrepreneurship Development Institutes
Micro Finance Programme
2. National Small Industries Corporation Ltd (NSIC), has been
established with the objective of promoting, aiding and fostering
the growth of small scale industries in the country. It has been
assisting small enterprises through a set of specially tailored
schemes which facilitate marketing support, credit support,
technology support and other support services.
14

 Marketing support schemes

Credit support schemes
Technology support schemes
At State Level
At the State level, various State Financial Corporations (SFCs) have
been set up by the respective State Governments for providing
financial assistance to the industrial units. For this purpose, these
institutions have brought out several funds and schemes, from time to
time. There are 18 State Financial Corporations (SFCs) in the country.
For example:1. Kerala Financial Corporation (KFC), incorporated under the
State Financial Corporations Act of 1951, is a trend setter in the
field of industrial finance. Its main objective is to extend term
loan assistance for establishing new industrial units. Some of its
major schemes include: General Scheme For SSI Units
General Scheme For SME Units
National Equity Fund (Nef) Scheme
Working Capital Finance

15

 Scheme For Assistance To Information Technology And

Software Development Sector
Financial Assistance For Infrastructure Projects
2. Madhya Pradesh Financial Corporation is the premier
institution in the State of Madhya Pradesh engaged in providing
financial assistance to small and medium industries.
The fund based schemes include: Term Loan
Equipment Finance
Asset Credit
Short Term Loan
Working Capital
Loan Replenishment
Finance for Market Activities
Composite Loan
Credit Linked Capital Subsidy for SSI
The non-fund based schemes include: Public Issue Appraisal
16

 Credit Syndication
Corporate Advisory Services

CHAPTER 5
INITIATIVES FOR
WOMEN
ENTREPRENEURS
Women
entrepreneurs
have
achieved remarkable success. The
Micro,
Small
&
Medium
Enterprises
Development
17

Organisation (MSME-DO), the various State Small Industries

Development Corporations (SSIDCs), the nationalised banks and
even NGOs are conducting various programmes including
Entrepreneurship Development Programmes (EDPs). A special prize
to "Outstanding Women Entrepreneur" of the year is being given to
recognise achievements made by and to provide incentives to women
entrepreneurs. The Office of DC (MSME) has also opened a Women
Cell to provide coordination and assistance to women entrepreneurs
facing specific problems.
Women entrepreneurship has been recognised as an important source
of economic growth. Women entrepreneurs create new jobs for
themselves and others and also provide society with different
solutions to management, organisation and business problems.
However, they still represent a minority of all entrepreneurs. etc.
Womens entrepreneurship can make a particularly strong
contribution to the economic well-being of the family and
communities, poverty reduction and womens empowerment, thus
contributing to the Millennium Development Goals (MDGs). Thus,
governments across the world as well as various developmental
organizations are actively undertaking promotion of women
entrepreneurs.

5.1Policies and Schemes for Women Entrepreneurs in

India
In India, the Micro, Small & Medium Enterprises development
organisations, various State Small
Industries Development Corporations,
the
Fig 5.1
Nationalised banks and even NGOs are
conducting
various
programmes
including Entrepreneurship Development
Programmes (EDPs) to cater to the needs
of
women
entrepreneurs,

18

There are also several other schemes of the government at central

and state level. Small Industries Development Bank of India
(SIDBI) has also been implementing special schemes for women
entrepreneurs. In addition to the special schemes for women
entrepreneurs, various government schemes for MSMEs also
provide certain special incentives and concessions for women
entrepreneurs. For instance, under Prime Ministers Rozgar
Yojana (PMRY), preference is given to women beneficiaries.
Similarly, under the MSE Cluster Development Programme by
Ministry of MSME, the contribution from the Ministry of MSME
varies between 30-80% of the total project in case of hard
intervention. Similarly, under the Credit Guarantee Fund
Scheme
for
Micro
and
Small
Enterprises
Some of the special schemes for women entrepreneurs
implemented by the government bodies and allied institutions are
provided
Trade related entrepreneurship assistance and development
(TREAD) scheme for women
o Mahila Coir Yojana
Schemes of Ministry of Women and Child Development
o Support to Training and Employment Programme for
Women (STEP)
o Swayam Siddha
Kerala Governments Women Industries Programme
Delhi Governments Stree Shakti Project
Schemes of Delhi Commission for Women (Related to Skill
development and training)
Magalir Udavi Scheme, Pudhucherry Government
Financing Schemes by Banks/ Financial Institution's

5.2 Women Entrepreneur Associations

Details of Women Entrepreneur Associations in India
19

Association Name
1.
2.
3.
4.

Federation of Indian Women Entrepreneurs (FIWE)

Federation of Indian Women Entrepreneurs (FIWE)
Association of Lady Entrepreneurs of Andhra Pradesh
Association of Women Entrepreneurs of Karnataka
(AWAKE)
5. Self-Employed Women's Association (SEWA)
6. Women Entrepreneurs Promotion Association (WEPA)
7. The Marketing Organisation of Women Enterprises
(MOOWES)
8. Bihar Mahila Udyog Sangh Bihar Mahila Udyog Sangh
9. Mahakaushal Association of Woman Entrepreneurs (MAWE)
10. SAARC Chamber Women Entrepreneurship Council

5.3 Success Stories of Women Entrepreneurs in India

Story of Dream Weavers which started with Rs 500 and now
makes Rs 25 lakhs,

Story of Patricia Narayan, Winner of Ficci Woman

Entrepreneur of the Year Award,

Story of Sarala Bastian who set up a successful mushroom

business with just Rs 15000,
Success story of Kiran Majumdar Shaw, the Biocon Queen,
Success story of Saloni Malhotra, founder of DesiCrew,

Story of Revathi Krishna, the founder of Coffee, Books and

More,

5.4 Tips for Women Entrepreneurs

20

 Start a business that works for you and your personal life
Research the product/ service
Assess the market
Start business with adequate funds
Do networking
Consult with professionals

5.5 Trade Related Entrepreneurship Assistance and

Development (tread) Scheme for Women
The scheme envisages economic empowerment of women through
development of their entrepreneurial skills in non-farm activities.
Under this scheme, proposals involving grant of Rs. 51.65 lakh to 16
NGOs / Institutions, have been approved for benefiting 1700 women.

5.6
RURAL
EMPLOYMENT
PROGRAMME (REGP)

GENERATION

REGP is a flagship scheme of the Government of India for

employment generation programmes in the unorganised sector.
Though there are no specific reservation for women entrepreneurs
under this scheme, still there has been substantial participation
(around 30 per cent) of women as a result of the promotional 125
Annual Report 2007-2008 efforts undertaken in this regard.

5.7 PRIME MINISTERS ROZGAR YOJANA (PMRY)

Under the scheme , preference is given to women beneficiaries. While
communicating the targets under the Scheme to the States/ Union
Territories and Reserve Bank of India (RBI), standing instructions are
issued for ensuring that the number of women beneficiaries under
PMRY should not be less than 30%.

5.8 MAHILA COIR YOJANA

21

The scheme envisages distribution of motorised ratts for spinning coir

yarn to women artisans after giving training. Women spinners are
trained for two months in spinning coir yarn on motorized ratt at the
Coir Boards training centres.

Fig 5.2

CONCLUSION
22

An Entrepreneur is an individual who efficiently and effectively

combines the four factors of production.
Entrepreneurs are often contrasted with managers and administrators
who are said to be more methodical and less prone to risk-taking.
Small and Medium-sized Enterprises (SMEs) in market economies
are the engine of economic development. Owing to their private
ownership, entrepreneurial spirit, their flexibility and adaptability as
well as their potential to react to challenges and changing
environments, SMEs contribute to sustainable growth and
employment generation in a significant manner.
Entrepreneurial development has been conceived by successive
governments as a program of activities to enhance the knowledge,
skill, behaviour and attitudes of individual and groups to assume the
role of entrepreneurs. They have put in place confidence for building
successful programs in different parts. The seriousness of
unemployment has attracted government attention over the years.
Government accords the highest preference to development of MSME
by framing and implementing suitable policies and promotional
schemes like policies and promotional schemes, providing incentives
for quality upgradation, concession on excise duty and provides
technical supportive services. Thus Government play supportive role
in developing entrepreneurs.
Government accords the highest preference to development of MSME
by framing and implementing suitable policies and promotional
schemes like policies and promotional schemes, providing incentives
for quality upgradation, concession on excise duty and provides
technical supportive services. Thus Government play supportive role
in developing entrepreneurs.
The growth and development of women entrepreneurs required to be
accelerated because entrepreneurial development is not possible
without the participation of women.

23

So the Government of India has also formulated various training

and development cum employment generations programs for the
women to start their ventures. Some policies designed to
generate employment include short-term monetary and
fiscal measures aimed at stimulating the domestic
supply of goods and services, reducing inflation
pressures, and preventing the balance of payments
deterioration.
Medium and long-term intervention
programs and projects were meant to raise production
levels and generate employment.
The Government of India has made special provisions for women
entrepreneurs under the watch of the Ministry of Micro, Small and
Medium Enterprises (MoMSME).
Training and funding are provided pursuant to this. The government
has traditionally focused on improving the base skill set, especially
among first generation women enterpreneurs.
Government of India has also set up various organizations that are at
the forefront in providing support and training for the budding
entrepreneurs.

24

REFERENCE

www.businessdictionary.com
www.entrepreneur.com
www.investopedia.com
smallbusiness.chron.com
irman-wijaya.blogspot.com/2008/12/understandingentrepreneur.html .

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