SEMINAR PROCEEDINGS

UGC Sponsored 2-Day National Seminar on

Economy & Entrepreneurship

Editors

Dr. V. Srinivasa Prasad

Sri G. Ramesh Babu
Sri R. Raja Sekhar

Organized by

PG Department of Commerce & Management Studies

VRS & YRN College,

Vodarevu Road,
Chirala - 523 157, Andhra Pradesh
First Impression December, 2017

© VRS & YRN College, Vodarevu Road, Chirala - 523 157, Andhra Pradesh

Economy & Entrepreneurship

ISBN:978-93-5300-292-3

No. of part of this publication may be reproduced or transmitted in any form by any
means, electronic or mechanical including photocopy, recording, or any information stor-
age and retrieval system, without permission in writing the copyright owners.

DISCLAIMER
The authors are solely responsible for the contents of the papers complied in this
volume. The publishers or editors do not take any responsibility for the same in any man-
ner. Errors, if any, are purely unintentional and readers are requested to communicate such
errors to the editors or publishers to avoid discrepancies in future.

Published by
VRS & YRN College
Vodarevu Road,
Chirala - 523 157
Prakasam District, Andhra Pradesh
Tel No. 08594 234968, 08594 234227
Fax: 08594 230435
E-mail: [email protected]
Web: www.vrsyrn.co.in

Typeset by
VRS & YRN College Publishing Team, Chirala - 523 157
Printed by
VRS & YRN College Press, Chriala - 523 157
 Preface

There is no gainsaying the fact that the countries which are entrepreneurially developed have taken
a quantum leap in terms of economic development. Desired level of progress on entrepreneurial front has
been acknowledged as need of the hour in developing economies where entrepreneurship development
has been progressing at a snail’s pace. The developing economies which are currently in a precarious
position on economic growth front are poised to place themselves on a growth trajectory realizing the
importance of key drivers of economic growth. In a bid to reinforce entrepreneurial base and to foster the
entrepreneurial culture and spirit among the persons who aspire to prove their mettle as entrepreneurs
of tomorrow spade work has been completed in terms of Government role towards entrepreneurship
development.
The grave cause of concern in India is ever growing unemployment problem which is compounded
alarmingly by unprecedented dearth of employability among the persons produced by the institutions of
higher learning. Entrepreneurial development is no larger crying for attention in India. It has emerged as a
force to be reckoned with whose prominence has been felt in all the plans and policies of the Government
in recent time.
Buoyed by the resounding growth and exemplary contribution of entrepreneurial development to
economic development in so called developed countries, developing counties like India are in the process
of endorsing and kindling inclination among persons who are all set to start start-ups. Thanks to slew
of opportunities bestowed on enterprising entrepreneurs marked by incentives, subsidies, scores of new
breed of entrepreneurs are entering into league of entrepreneurs.
The present national seminar is an attempt to provide a platform where academicians, researchers,
students from national wide converge at the seminar to explore the factors which inhibit growth of
entrepreneurial culture. The topic selected for two-day national seminar is of immense relevance in the
light of some solution to be expected to be provided by entrepreneurial development to grave problem of
unemployment.
This book bestows a good opportunity on academicians, researchers and students from national
wide who have ample inclination to express their views on various aspects of issues and challenges and
suggestions which will go a long way to enable India to take great leap in entrepreneurial development.

G. RAMESH BABU
Associate Professor
PG Department of Management Studies
 Message

VV Rama Chandra Vasu

President, College Committee

I am so delighted to know that PG Department of Commerce & Management Studies of our

College is organizing a UGC Sponsored 2-Day National Seminar on “Economy & Entrepreneurship” on
27th and 28th October, 2017 and bring out a conference volume with regard to the above topic. On this
auspicious occasion I extend my warm greetings to the organizers, academic luminaries, presentars, guests
and participants.
I earnestly hope that the path breaking deliberations resulting from the seminar are expected to be
of immense use for making Economy and Entrepreneurship in India more vibrant.

(VV Rama Chandra Vasu)

 Message

A. Venu Gopal
Secretary & Correspondent,
College Committee

I am extremely cheerful on knowing that the PG Department of Commerce & Management

Studies of our College is organizing a UGC Sponsored 2 Day national Seminar on “Economy &
Entrepreneurship” on 27th and 28th October, 2017 and bring our a conference volume on this occasion .
I have exemplary confidence that the seminar is likely to provide a platform where academic
luminaries and other stake holders converge to deliberate towards devising appropriate strategies
and remedies for sorting out the problems which are plaguing entrepreneurship in a bid to reinforce
entrepreneurship development.
I wish the seminar a grand success.
(A. Venu Gopal)
 Keynote Address

M. Adinarayana,
Company Secretary &
V.P.(Legal & Corp. Affairs),
NATCO Pharma Ltd.,
Hyderabad

In his inaugural address as a keynote speaker and chair person of one of the sub-theme role
of Government in Entrepreneurship Development highlighted about the theme of two day National
Seminar by stating that Entrepreneurship is the process of discovering new ways of combining resources.
When the market value generated by this new combination of resources is greater than the market value
these resources can generate elsewhere individually or in some other form, the entrepreneur makes a
gain in the form of profit. Entrepreneurs occupy a central position in a market driven 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.
He highlighted about the sub-themes of the seminar,
Role of an Entrepreneur. An entrepreneur is one who undertakes the risk of investment to create
and market goods or services for financial gains. He is very perceptive and takes advantage of business
opportunities that will generate profits, employment etc. Entrepreneurs are of vital importance to the
development of an economy.
Educational entrepreneurs are proving that the calcified delivery system of public schooling /
college can be shaken up and retooled for the twenty-first century. Within education, social entrepreneurs
create many different types of organizations that seek to have a positive impact on the broader system.
Over the last decade, agricultural entrepreneurship has changed dramatically due to economic
liberalization, a reduced protection of agricultural markets, and a fast changing, more critical, society.
Agricultural companies increasingly have to adapt to the vagaries of the market, changing consumer
habits, enhanced environmental regulations, new requirements for product quality, safety, supply chain
management, sustainability, and so on. These changes have cleared the way for new entrants, innovation
and portfolio entrepreneurship.
Entrepreneurship in India has indeed undergone a major change in the recent past. Businesses
are looking to break-even in a few months, a distant dream even for the most viable traditional family
businesses that started a few decades ago. The rising population and the increasing desires for a better and
luxurious lifestyle have fuelled the demand for better quality Goods and Services. This growing demand
has been the inspiration for many startups. Indian Governments flagship program ‘Start up India’ aimed
for promoting Entrepreneurship, Tax Sops on new startups, Large companies setting up Incubator Cells,
big companies pledging funds for innovative startups have all led to an increase in interest to start new
ventures. India witnessed the emergence of Hundreds of Startups in the recent past with the innovative
solutions for solving day to day problems. The Gen-Y entrepreneurs are very aggressive in their approach
to the market and have been able to convince venture capitalists to dole out crores of rupees to take their
ideas forward.
Despite falling commodities prices and an uncertain global economic scenario, the Global
Entrepreneur Indicator (GEI) survey conducted by Entrepreneurs Organization (EO) in 2015 has shown
that 82 per cent of all respondents globally and 75.8 per cent respondents from India have reported a
willingness to start a new business in their current economic environment .
Now a days, Women entrepreneurship has been recognized as an important source of economic
growth and Women entrepreneurs create new jobs for themselves and others and also provide society with
different solutions to management, organization and business problems. However, they still represent a
minority percentage of all entrepreneurs.
In India, the Micro, Small & Medium Enterprises development organization, various State Small
Industries Development Corporations, the Nationalized banks and even NGOs are conducting various
programmes including Entrepreneurship Development Programmes (EDPs) to cater to the needs of
potential entrepreneurs, who may not have adequate educational background and proper technical skills.
The Office of MSME has also opened a Women Cell to provide coordination and assistance to women
entrepreneurs facing specific problems.
There are also several other schemes of the government at central and state level, which provide
assistance for setting up training-cum-income generating activities for needy entrepreneurs in particular
women to make them economically independent. Small Industries Development Bank of India (SIDBI)
has also been implementing special schemes for women entrepreneurs.
 Message

Dr. Sandeep Pandy

Ramon Magsaysay Awardee
& Social Activist

It is my pleasant duty to extend my hearty greetings to the organizers of UGC sponsored 2 Day
National Seminar on Economy and Entrepreneurship which was held on 27th and 28th October 2017.
I congratulate you on selecting good topic for national seminar which needs great deal of deliberations
which can go a long way in fostering entrepreneurial culture which is the need of the hour.
It gives me an immense pleasure to be a part of this national seminar which provided opportunity
for the convergence of academic stalwarts and corporate managers and students and teaching fraternity
to deliberate on contemporary issues pertaining to economy and entrepreneurship. The grave impediment
to the entrepreneurship development in India is low rate of investment. Any increase in entrepreneurship
results in increase in rate of investment.
The need of the hour is creation of hassle free environment for all kinds of entrepreneurs who
are desirous of contributing their mite towards entrepreneurship development . Not withstanding, some
headway on entrepreneurship front in India it is progressing at a snail’s pace. The entrepreneurship and
importance attached to entrepreneurship development in some countries forced India to follow the suit
and to encourage entrepreneurship through announcement of slew of sops and inducements by the
Government.
Emergence of all forms of entrepreneurship namely Women entrepreneurship, agricultural
entrepreneurship and educational entrepreneurship are worth noting developments in the realm of
entrepreneurial landscape in India in recent times. Thanks to flag ship programmes namely Start-up India,
Make in India, Digital India embarked on by the Government of India, entrepreneurial landscape and
culture has received face-lift in India in recent times.
In addition, balanced regional developments which is the top priority of the Government is bound
to spur entrepreneurship in India.
This seminar has been an endeavor at the opportune time when deliberations concerning problems
faced by entrepreneurs and present environment for entrepreneurship add new dimension to the bid to
ensure India’s name figure in the list of countries to be reckon with investment from both home and
abroad.
 Message

Dr. K. Sarada Devi

Retd. Reader in PG Commerce
VRS & YRN College, Chirala

Greetings and hearty congratulations on the grand success of UGC sponsored 2 Day National
Seminar on Economy and Entrepreneurship which was held on 27th and 28th October 2017. It was a great
opportunity to meet academicians, researchers and industrialists at National level, to learn more on the
subject and to explore the future research areas.
Thank you for inviting me as chairperson for Technical session III - Women Entrepreneurship.
The session was rapporteured by Ms. Anilambika and the presentations were very good some of
them were excellent with research exploration. In this context I would like to present some of my ideas
on the subject.
Entrepreneurs shape the economy by creating new wealth and new jobs and by inventing new
products and services. However, an insight study reveals that it is not about making money, having the
greatest ideas, knowing the best sales pitch, applying the best marketing strategy. It is in reality an attitude
to create something new and an activity which creates value in the entire social eco-system.
Empowering women has become the key element in the development of any economy
Entrepreneurship enhances financial independence and self esteem of women. Around 50 per
cent of India‘s population is women, yet business spheres such as trade, commerce and industry is still
considered a male preserve. Entrepreneurial work has also been predominantly a man‘s world in India.
Indian women are in no way inferior to men in all walks of life and they can be as good
entrepreneurs as men in the country. Therefore, it is essential to exploit the potential of Indian women.
Women‘s participation in trade, industry and commerce, requiring entrepreneurship, is still poor, mainly
because of the problems associated with their gender roles. According to the National Sample Survey
Organization, only 14% of business establishments in India are being run by women entrepreneurs. The
data also revealed that most of these women-run companies are small-scale and about 79% of them are
self-financed.
Therefore, promotion of entrepreneurship and economic empowerment of women poses a
challenge to the government, funding agencies and non- government organizations. It is important for
these people to focus on the limitations faced by the women and to plan supporting systems to enhance
women entrepreneurship in India.
 Although women face various problems in the process of establishing, developing and running
their enterprises, nevertheless, their scope of development is very high in India, especially in rural areas
with more women making development oriented programme viz. Development of Women and Children
in Rural Areas (DWCRA) which was launched in 1982-83.
Although The Government of India, through its newly established Ministry of Skill Development
and Entrepreneurship (MSDE), focuses on developing entrepreneurial and employability skills among
the youth through entrepreneurship education and training, advocacy and easy access to entrepreneurship
networks, there has been no proper awareness on these programmes.
The Ministry has been also trying to deliver world class Learning and Management System (LMS)
to equip potential as well as early stage entrepreneurs. The Govt. of India has launched many Programmes
to develop entrepreneurs in sectors such as manufacturing, IT and digital services, healthcare, and sanitary
and hygiene. To achieve balance in the both male and female entrepreneurship, the Government has
launched pan India programmes, viz. ‘Start-up India’, ‘Stand-up India’, ‘Make-in India’, ‘Digital India’,
‘Swachha Bharat (Clean India)’, that are aimed at further propelling entrepreneurship movement in India.
So Let us hope that there are better prospects for women entrepreneurship which eventually strive
for
The best economy in the world.
With best wishes and warm regards
Dr. K. Sarada Devi
 ORGANIZING COMMITTEE

Chief Patrons
Sri VV Ramachandra Vasu
President, College Committee

Sri A. Venu Gopal

Secretary & Correspondent

Patron
Dr. J. Revathy
Dr. V. Srinivasa Prasad, Seminar Director
Registration Committee: Reception / Accommodation / Transport
Sri M. Seshu Babu Committee
Smt. G. Cherlina Kumari Sri B. Venkateswarlu,
Kum R. Padmvathi Sri T. Uday Pavan Kumar
Kum Sk. Rizwana Sultana Sri P. Ashok Sekhar Babu
Sri John Bunyan Sri P. Ganapathi Siva Raja

Stage Management Committee Food Committee

Sri R. Raja Sekhar Sri T. Naganjaneyulu
Sri Ch. Pothu Raju Sri N. Srinivasa Rao
Smt. G. Cherlina Kumari Sri N. Sambasiva Rao
Kum D. Ramya

Finance Committee Print & Electronic Media Committee

Sri R. Raja Sekhar Sri M. Brahmaiah
Sri G. Ramesh Babu Sri R. Raja Sekhar
Sri T. Uday Pavan Kumar

Souvenir Committee
Sri G. Ramesh Babu
Sri R. Raja Sekhar
Kum D. Ramya
 TABLE OF CONTENTS

Preface iii
Messages iv
Keynote Address vii
Organizing Committee xii
Technical Session - I (Entrepreneurship & Economic Development)
1. Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to
Fuel the Economic Growth Engine
K. Sivaji Ganesh, Prof. G. V. Chalam,  1
2. A Study on Essential Skills Required for Modern Entrepreneurs
T. Narayana Rao, Dr. V. Srinivasa Prasad 11
3. Role of Entrepreneurship in Economic Development in India
A. Bhagyaraj, Prof. D. V. Ramana,  17
4. Perspectives of Entrepreneur’s in the New Era
Anilambica Kata, B. Raghavi 23
5. Role of Government in Entrepreneurship Development
O. Naresh, Dr. J. Revathy,  30
6. The Role of Government in Promoting Entrepreneurship
Dr. A. Kanaka Durga, Immaniyelu Yepuri 36
7. Role of Entrepreneurship Development in Economic Development
Y. Srinivasa Rao, 41
8. Role of Entrepreneurship in Economic Development
B. H. Venkata Siva Krishna, Dr. V. Srinivasa Prasad 45
9. Role of Govt. in Entrepreneurship Development
D. Bhaskara Rao, Dr. J. Revathy  52
10. Role of Govt. in Entrepreneurship Development
Vunnam Venkata Ramanjaneyulu 57
11. Development of Entrepreneurship in India
M. Krishna Chaitanya,  60
12. Relation between Entrepreneurship and Economic Growth through Manufacturing
Sector: Review
P. Daniel Paul, Dr. V. Srinivasa Prasad 62
13. Emerging Entrepreneurship in Indian Scenario
Kumaraswamy Manepalli  66
14. A Glimpse on Contribution of Entrepreneurship in GDP Growth
V. Mydhili MBA 70
15. “Role of Entrepreneurs in Economic Development”
Taidala Vasantaha Rao. Bandlamudi Kalpana 76
16. Educational Entrepreneurship – The Need of the Hour
B. Satyavani 81
17. Role of Government in Entrepreneurship Development
B.V. Brahmaji, Harika 87
18. Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An
Empirical Study
Dr. Prasad Chundi  92
19. Role of Personality and Leadership Traits in Entrepreneurship
G. Venkateswarlu, PVS Chowdary 100
20. Role of Entrepreneurship on Economic Development & Entrepreneurial
Development and Its Antecedents in India- A Study
Dr. Y. Ramakrishna Prasad  105
21. Entrepreneurs – In the Era of GST
P. Anitha Saravanan 114
22. Role of Central Government in Empowerment & Entrepreneurship Development
of Persons with Disabilities (PWDS) In India
Y. Nagendra Dr. S. Subba Reddy 119
23. Problems and Prospectus of Entrepreneurship in India
Dr. R. Emmaniel, P. Vikram Babu 124
24. Problems and Prospects of Social Entrepreneurship
M.V Subba Rao, MVS Vaishnav, 131
25. Government Initiatives for Entrepreneurship Development
N. Rama Krishna,  136
26. An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding
Entrepreneurs
A Sai Manideep, Dr. P Srinivas Reddy 141
27. Entrepreneurship Through Online Grocery Stores
Dr. A. Kanakadurga, Syamala Devi Challa,  147
28. Ethical Entrepreneurs - Organizational Escalation in India
Dr. T. Lokeswara Rao, D. Poornima Devi 152
Technical Session - II (Young Entrepreneurs)
29. Role of Young Entrepreneurs
Anilambica Kata, N. Madhuri, Sk. Basheerunnisa 156
30. Health Care IT Entrepreneurship in India
Challa Maruthy Subrahmanyam, P. Srinivasa Reddy 162
31. Successful Young Entrepreneurs: The Case Studies of India
Dr. J. Revathy, Mr. S. Pratap  166
32. Challenges of Youth Entrepreneur in India: Role of Entrepreneurship Education
for the Aspirant Entrepreneur
Dr. Radhika Naidu, L. Jyotshna Reddy 171
33. Exogenous Determinants of Entrepreneurial Intuition & the Mediatory Role of
Psychological Capital among Potential Youth Entrepreneurs – A Study
Dr. V. Venkateswara Rao, D. Pushpa Sri 175
34. The Role of Young Entrepreneurship in India
Dr. Krishna Banana, V. Veeranjaneya Kumar. P, V Rama Krishna Rao Chepuri 179
35. Education Reforms in India
K. Sivaiah, Ch. Yashoda Rao 189
36. Role of Young Entrepreneurship in Economic Development Introduction
B. Ravi Kumar 199
37. “The Role of young Entrepreneurs in Indian Economy Development”
Md Sohil Baba 207
Technical Session - III (Women Entrepreneurs)
38. Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks
in Guntur District
Dr. M. Aravind, Dr. T. Umamaheswara Rao 213
39. A Study on Socio Cultural Factors Influencing Women Entrepreneurs At
Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP)
Ms. Syamala Devi Bhoganadam, Dr. Dasaraju Srinivasa Rao 229
40. Problems & Prospects of Women Entrepreneurs in India
Dr. Katreddi Satyanarayana 235
41. Women Entrepreneurs – A Mirage of Indian Women
Dr. R. Lilambeswara Singh 240
42. Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of
Indian Perspective
Dr. J. Revathy, Maneeja Indupalli 245
43. Women Entrepreneurship
G. Ramesh Babu 250
44. Financial Inclusion of Women Entrepreneurs in India
K. Srinivas, Dr. M.S. Narayana 254
45. Women Entrepreneurship In India - An Overview.
Dr. N. Ratna Kishore E.Sheela 263
46. A study on awareness of entrepreneurial programs and support among the woman
MBA graduates with respect to SPSR Nellore district
P. Siva Prasad, Dr. Suja S. Nair 269
47. Women Entrepreneurship- The Way for Economic Empowerment
U. Chandramouli, A. Rajeswari,  278
48. Poverty Alleviation through SHGs with Micro Finance
D. Syamala, B. Saritha 283
49. Problems And Prospects of Women Entrepreneurs in India
Thurumella Ramanaiah Dr. N. Ratna Kishor 288
50. A Study on Problems Faced by Women Entrepreneurs in Rural Areas
V. Murali, Bhagyaraj. A 296
51. Women Entrepreneurs- Problems And Prospects
V. Pavani (MBA) M. Mounika (MBA) 302
52. Role of Women Entrepreneurship in Indian Economy
Kumba Nagamani, Dr. N. Ratna Kishor 307
53. Women Entrepreneurship in India
S. Rizwana Sultana, J. Syamala Devi, Y. Devi, K.Hari Babu 315
54. Women Entrepreneurship - Challenges And Opportunities
Madhavi. Nuthalapati, Dr. A. Kanakadurga 318
55. Role of Women Entrepreneur in India
B. Venkateswarlu T. Tulasi 323
56. Women Entrepreneurship in The Rural Environment
Dr. B.V.H. Kameswara Sastry 331
57. Challenges, Contributions and Factors for Successful Women Entrepreneurs in
Rural Development
Shaik Mastan Vali, 336
Technical Session - IV (Rural and Agriculture Entrepreneurs)
58. The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the
Guntur District of Andhra Pradesh
Dr. P. Nagamani, Dr. T. Ramadevi 342
59. The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in
Prakasam District of Andhra Pradesh
Atyala Salem Raju 354
60. Women in Arunachal and their Status in the Socio - Cultural Life, Shillong:
Government of Arunachal Pradesh.
K. Prabhu Rani 361
61. Agricultural Entrepreneurship
Anilambica Kata, Suresh Chandra.T 366
62. A Study on Agriculture Entrepreneurship Development with Reference to
Kothapali Mandal, East Godavari District
*B. Swathi Devi, G. V. Chaitanya 370
63. Emerging Trends in Agricultural Entrepreneurship
A. J. Mohan Rao, Gk. Patnaik Karakavalasa 376
64. A Study on Employment Conditions and Risks among Street Food Vendors in
Thiruvannamalai District
Dr. E. Sambasivan,  382
65. Role of Agricultural Entrepreneurship for Sustainable Economic Development
-Special focus on Food Processing Industry
Smt. L. Vijaya, Smt. P. Rupavathi 389
66. Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P
G. Saritha,  394
67. Rural Women Entrepreneurship in India Problems and Challenges
Dr. Mazharunnisa  403
68. Emerging Green Market as an Opportunity for Green Entrepreneurs and
Sustainable Development in India
Mr. B. Sudheer Kumar, Dr. V. Mallikarjuna, Dr. N. Kumara Swamy, 406
69. Agricultural Entrepreneurship
Ch. Rajasekhar, P. Chinnari 416
 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel
the Economic Growth Engine
*K. Sivaji Ganesh, **Prof. G. V. Chalam,
*Ph.D. Scholar, Department of Commerce and Business Administration, Acharya Nagarjuna University, Nagarjuna Nagar,
**Professor, Department of Commerce and Business Administration, Acharya Nagarjuna University, Nagarjuna Nagar.
“The success of the young entrepreneur will be the key to India’s transformation in the new millennium”.
Dhirubhai Ambani, Former Chairman, Reliance Industries Limited

Abstract: Entrepreneurship education is extremely important from the national point of view as it promotes job
creation and ensures economic development. Entrepreneurship education in India has gained momentum in the recent
past but it is not free from deficiencies. There needs to be restructuring of pedagogy to suit the native requirements if at
all India wants to nurture a pool of talented entrepreneurs who can contribute to economic growth. This paper attempts
to present the role of entrepreneurship education in augmenting economic growth of a nation, the trends in and the
challenges faced by entrepreneurship education in India. If entrepreneurship education in India cannot completely
remove the major hindrances in the pursuit of economic development and employment, at least it can make a fine
restart. The Government also needs to play their part in encouraging entrepreneurship education directed at nurturing
entrepreneurial competencies and formulating favorable policies to reinforce the entrepreneurial ecosystem in the country.
Key words: Entrepreneurship, Economic development, Entrepreneurship education

Introduction
With the globalization as the order of the day, entrepreneurship has been receiving accolades
alike from government as well as educational institutions. Changes in the global economy have led to
fewer job avenues for students, which made the government to develop plans to foster creativity among
students through entrepreneurial activities and programs. Entrepreneurship education in India has gained
momentum in the recent past as it may help students to hone up their knowledge and skills, which in turn
could benefit them to begin their start-ups.
Entrepreneurship education is extremely important from the national point of view as it stimulates
innovation, promotes job creation and ensures economic development. To achieve this mission, teaching
pedagogy of entrepreneurship education should be appropriate and relevant enough to enable the
learner to acquire knowledge, develop creative talents and managing skills of an enterprise. However
entrepreneurship education in India is not free from deficiencies. There needs to be restructuring of
pedagogy to suit the native requirements if at all India wants to nurture a pool of talented entrepreneurs
who can contribute to economic growth.
The objectives of this paper are: to understand the role of entrepreneurship in economic
development, to present the role of entrepreneurship education in augmenting economic growth of a
nation, to analyze the trends in entrepreneurship education in India, to assess the challenges faced by
entrepreneurship education in India and to suggest measures for the improvement of entrepreneurship
education in India. The present paper makes use of qualitative literature to understand the pertinent
concepts undertaken for the study and to arrive at drawing suggestions and conclusions.
Entrepreneurship
Entrepreneurship is a derived from the French verb “entreprendre”, meaning to undertake, to
attempt, or to adventure. It is the process of giving individuals the prospect that enables them to identify
profitable opportunistic ventures and the needed application of knowledge, skills and attitudes to initiate
action to enter into the venture (Jones & English, 2004). Entrepreneurship is dealing with uncertainty,
making a distinction between risk, which can be calculated, and uncertainties which can’t be overcome
2 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine

(Chandler, 1990).  Entrepreneurship as a systematic  innovation consists of purposeful and organized

search for changes, and systematic analysis of the opportunities such changes might offer for economic
and social innovation. Entrepreneur is a person who is willing to risk his capital and other resources
in new business venture, from which he expects substantial rewards if not immediately, then in the
foreseeable future (Peter Drucker, 1985). Entrepreneur is the bearer of the mechanism for change and
economic development, and entrepreneurship as the undertaking of new ideas and new combinations
that is innovations (Schumpeter, 1934).
Role of Entrepreneurship in Economic Development
Entrepreneurs contribute to economic development in terms of job creation, innovation and
external income generation depending upon priorities and different stage of market reform (Small bone &
Welter, 2001). The impact of entrepreneurship on employment is found to be high in firms with less than
twenty employees. Those firms have great potential for future economic development. Economic policy
changes should be precisely made to boost entrepreneurship (Carland & Carland, 2004). Entrepreneurship
has an important role to play in fostering from a predominantly traditional / agrarian economy to
modern economy. With innovation driven growth, productivity is increased in advanced countries. Self-
employment, startup and credit market determine quantity and quality of entrepreneurship and low
entrepreneurial activity contribute to economic stagnation and even developmental gap (Naude, 2008).
Some of the benefits that the Entrepreneurs contribute to the economic development are presented
here under.
ŠŠ An entrepreneur provides employment opportunities to a large number of people thus remove
unemployment problem.
ŠŠ Entrepreneurs to avail the incentives granted by the government establish industries in backward
and rural areas. In the process regional disparity is removed and regional development is
emphasized to help in improving the standard of living of the people residing in suburban and
rural areas by providing employment and income.
ŠŠ Entrepreneurs help to mobilize and utilize local resources like small savings and talents of
acquaintances, which might otherwise remain idle and unutilized. Thus they help in effective
utilization of resources.
ŠŠ Entrepreneurs reduce the pressure on the country’s balance of payments by exporting their goods.
They earn valuable foreign exchange through exports.
ŠŠ Entrepreneurs produce a wide range of products required by consumers. They meet the demand
of the consumers without creating a shortage for goods.
ŠŠ Entrepreneurs help in the development of the society by providing employment to people and
encourage democracy and self-governance.
ŠŠ Entrepreneurs raise money for running their business through shares and debentures. Trading
of shares and debentures by the public with the help of financial services sector leads to capital
market growth.
ŠŠ The infrastructure development of any country determines the economic development of a
country. Entrepreneurs by establishing their enterprises in rural and backward areas influence the
government to develop the infrastructure of those areas.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine 3

The Indian Scenario

Modernization is one area that is witnessing development of entrepreneurship in the regional
areas in the country. Due to financial constraints and competition in the metro cities, entrepreneurs are
setting up industries in Tier II cities. Some State Governments like Kerala, Maharashtra and Tamil Nadu
are offering schemes/incentives for setting up of SME’s in Tier II and III cities. The growth of businesses
in these smaller towns is not only providing several public benefits like better transportation, health
facilities, education etc., but also promoting a balanced development in the country. This has motivated
more entrepreneurs setting up base in their hometowns due to lower costs and affordable talent driving
investor attention and incubation centers to these cities too. Today, entrepreneurial driven economy is the
answer to better standard of living as it drives innovation in manufacturing of goods and services leading
to availability of goods at lower costs making them more affordable. These are for consumption within
the country and hence will lead to growth in the national income and invariably reduce our import
dependency making the economy stronger (Ajai Chowdhry, 2015).
Entrepreneurship is getting importance as the current economic situation demand job providers
to have a dominant role in the nation’s economic development as India is struggling to provide job and
income security to its citizens. Entrepreneurship assumes significant role in the global as well as domestic
economy by industrializing rural and backward areas, as a supplier of input to large industries, creating
employment opportunities. It is key driver to transform agrarian economy into industrial economy. This
is vital for India, as its 31% of population resides in rural areas that are devoid of basic amenities forcing
them to migrate from rural areas to urban areas. Despite the importance of entrepreneurship environment
for venturing into it is not so favorable in India even though it has improved significantly (Amit, 2014).
A study of Entrepreneurial framework condition in India proves that there are some loose ends that are to
be fixed up for realizing the benefits of entrepreneurship to the fullest extent (See Table 1).
Table 1 Entrepreneurial framework condition in India

Strengths Weaknesses

Education and training Emphasis on entrepreneurship is lacking in the

Large pool of manpower. education sector.
Strong educational base in the country. Education is not practice-based.
High quality management education which Poor literacy rates in the country.
can be branched out to entrepreneurship. Poor quality of school education.
Entrepreneurship is not considered a high status
Cultural norms
career in India.
Hardworking and innovating Indians.
Indians are risk averse.
Entrepreneurially oriented communities in
Lack of awareness of entrepreneurship as a ca-
the states of Rajasthan (community: Mar-
reer.
waries, Sindhies) and Gujarat.
Entrepreneurial spirit lies dormant.
There is change in perception, entrepre-
Lack of support in non- business families.
neurship is gaining respect.
Succeeding generations tend to follow earlier
Greater awareness of opportunities amongst
generations; hence secured employment is the
present generation.
first choice.

ISBN: 978-93-5300-292-3 Technical Session - I

4 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine

Strengths Weaknesses
Entrepreneurial capacity Entrepreneurial potential is not nurtured in the
Large number of NGOs facilitates entrepre- country.
neurship. Fear of failure.
Good industrial base in the country makes There needs to be greater awareness about entre-
people entrepreneurial. preneurship.
Too many government controls.
Government policy
A more proactive role of the government is re-
The country’s liberalization policy in the
quired.
early 90’s has established the government’s
Too many laws regulating the starting and run-
role of being viewed as a ‘facilitator’ rather
ning of business.
than a ‘provider of job’.
Multiple legislations on every issue.
Labour policy on wages is conducive to
Reforms need to continue and further reforms
small business.
required.
Social status and esteem
Well documented and published success stories
Publicity for success stories like Infosys
could help in changing some negative percep-
and Wipro.
tions.
Low manpower cost is a big advantage.
Source: S. Vaidya (2014). Developing Entrepreneurial Life Skills, Springer Briefs in Education.
Entrepreneurship Education
Entrepreneurship education includes all activities aiming to foster entrepreneurial mindsets,
attitudes and skills and covering a range of aspects such as idea generation, start-up, growth and innovation
(Fayolle et al., 2009).
Entrepreneurship education was pioneered by Shigeru Fij II, who started teaching in this field in
1938 at Kobe University in Japan. Courses on small business management were started in the 1940s and
Myles Mace introduced the first course in entrepreneurship in US in 1947 at Harvard Business School.
Only half a century later this phenomenon did gain a more universal recognition (Alberti et al, 2004).
Entrepreneurial education has seen worldwide exponential growth in higher education institutions
(Kuratko, 2005). Entrepreneurship courses are taught at nearly every AACSB (American Assembly of
College Schools of Business) accredited institutions. By the year 2001, it was offered at around 1200
business schools only in United States (Katz, 2008).
The objectives of entrepreneurship education as predicted by Osuala (2010) are:
ŠŠ To provide meaningful education for youth to make them self-reliant and subsequently encourage
them to be self-independent
ŠŠ To provide graduates with the training and support necessary to help them establish a career in
small and medium size business.
ŠŠ To provide graduates with training skills that will make them meet the manpower needs of the
society.
ŠŠ To provide graduates with enough training in risk management to make uncertainty bearing
possible and easy.
ŠŠ To stimulate industrial and economic growth of rural and less developed areas.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine 5

ŠŠ To provide graduates enough training that will make them creative and innovative in
ŠŠ Identifying new business opportunities.
ŠŠ To provide small and medium sized companies with the opportunity to recruit qualified graduates
who received training and tutoring in the skills relevant to management of the business.
Understanding the benefits related with entrepreneurship education, many researchers are now
shifting their attention to the study of economic development through entrepreneurship education
(Haveman & Habinek, 2012). Today entrepreneurial education has become an important part of both
industrial and educational policy in many countries (Hytti & O’Gorman, 2004). Entrepreneurship
contributed to the creation of 27 million jobs in the United States between 1980 and 1995 (Sexton
& Smilor, 1997). The self-employment intentions among students of institutions of higher learning
could be increased through entrepreneurship education and training programs (Tkachev & Kolvereid,
1999). The most common reason that researchers and experts promote entrepreneurial education is that
entrepreneurship is seen as a major engine for economic growth and job creation (Wong et al., 2005).
Entrepreneurial education is also frequently seen as a response to the increasingly globalized, uncertain
and complex world we live in, requiring all people and organizations in society to be increasingly
equipped with entrepreneurial competencies (Gibb, 2002). Table 2 depicts the reasons for the relevance
and importance of entrepreneurial education.
Table 2 Reasons for the relevance and importance of entrepreneurial education.

Reason Individual level Organizational level Societal level

Commonly stated reasons for entrepreneurial education.
More individuals are needed Entrepreneurship and innovation
Growing organizations create
Job creation that are willing and capable to are primary paths to growth and
more jobs
create job growth job creation
Organizational renewal is Renewal processes are
Economic Entrepreneurship can give
fundamental to every firm’s fundamental to the vitality of
success individuals economic success
long-term success economies
Globalization, People need entrepreneurial Entrepreneurial firms play A deregulated and flexible market
innovation and skills and abilities to thrive in a crucial role in changing requires people with higher-level
renewal an ever-changing world market structures general skills
Rarely stated reasons for entrepreneurial education.
Employee creativity and joy is
Joy, Creation / value creation / Economic wealth of nations
essential for the performance
engagement, creativity is a main source of correlates with happiness of its
of new and existing
Creativity joy and pride for people citizens
organizations
People can make a difference Corporations can Social entrepreneurship Addresses
Societal to society, and marginalized collaborate with small Social problems in Society that the
Challenges people can achieve economic entrepreneurship initiatives to market Economy has failed to
success create social value Address
Source: Martin Lackéus “Entrepreneurship in Education – What, Why, When, How”
Having appreciated the contribution of entrepreneurship education in economic development,
many institutions of higher learning have enriched their entrepreneurship program with practical pedagogy
such as case studies, simulations, and internships in order to bring out the entrepreneurship competencies

ISBN: 978-93-5300-292-3 Technical Session - I

6 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine

of students. Such approaches allow enhanced job creation and not only help the government but also
individuals and the society by reducing the dependency rate and consequently leading to economic
growth and development (Peggy &Maramark, 1996).
Indeed, entrepreneurship education has truly earned a global status for itself, given that it is now
pursued with equal passion even in the developing countries. Most of the studies on entrepreneurship
training look at whether people who have received this education perform better as entrepreneurs than
those who have not. Studies by researchers at the University of Arizona, New York University and other
institutions have found that people who have received entrepreneurship education perform better at
running their own businesses (Scott Shane, 2011).
Entrepreneurship Education in India
Entrepreneurial education is considered as an instrument for economic growth as it has immense
potential of employment generation. Therefore developing the culture of entrepreneurial mindset among
the students has become a thrust area for Government, policy makers and the society. Government has
to promote entrepreneurial culture to create new venture for the economic growth. New venture creation
is the result of excellent human skill with developed technology and availability of resources. In order to
nurture the entrepreneurial spirit among the younger generation some of the educational institutions in
India are beginning to include entrepreneurship as a core course in business education. Greater emphasis
has been laid down in the recent past on benefits of entrepreneurial focused education at the universities,
instilling the confidence in students to turn ideas into business ventures.
With over 3100 start-ups and a steep projection to reach around 10000 by 2020 India is building
its very own Silicon Valley. India is the 3rd largest start up location globally with over 800 start-ups
created each year and over USD 2.9 Billion in funding received since 2010 (NASSCOM Startup Report,
2014). With a strong venture capital and private equity backbone of over 70 active players in just 2014,
more than 550 angel investors and over 80 incubators and accelerators, the youth in India are being
groomed to succeed with new and innovative ideas (CXO Today, 2015).
The Government of India has also been contributing significantly in order to promote
entrepreneurial spirit within the students by way of risk funding. In order to push start-ups and SMEs,
the Government of India has launched two new investment and loan programs with a combined budget
allocation of INR 12,000 Crore (Mohul Ghosh, 2015). The Finance Ministry of India has launched a
new program “fund of funds” in order to invest in various venture capitalists funds for meeting the equity
requirement of start-ups. The Ministry has also launched “India Aspiration fund” with an initial corpus
of INR 200 Crore in order to boost the entrepreneurial ecosystem within the country (Sujata Sangwan,
2015).
As the role of institutes of higher education in promoting entrepreneurial mind set among the
students is concerned, most of the top business schools and technical schools are offering entrepreneurship
education in the form of short and long term programs. The NS Raghavan Centre for Entrepreneurial
Learning in Indian Institute of Management (IIM) Bangalore has a management program designed
for entrepreneurs and family businesses. The Indian School of Business in Hyderabad offers executive
management and post graduate programs in entrepreneurship education. IIM Bangalore is in the process
of making entrepreneurship a compulsory course in the years to come. The Indian Institute of Technology
(IIT) Madras incubation cell consists of alumni dedicated to providing funding along with the technical
and business mentorship needed for a start-up to succeed and thrive. iCreate is an autonomous center to
facilitate a wide range of “Next Generation Entrepreneurship” in order to create a vibrant entrepreneurial

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine 7

ecosystem. S. P. Jain Institute of Management and Research has set-up a Centre for Entrepreneurship
development with a view to promote student interest in entrepreneurship, facilitate new venture creation
and commercialize grass-root inventions (IDCK, 2016).
The start-up ecosystem growth has also brought together faculty members and students at
universities and institutions to join in with their own ventures. Many faculty members across universities
in India are now working with startups either independently or collaboratively with students and co-faculty
members. Faculty members of IITs from across India, including Bombay, Delhi, Madras, Kharagpur and
Hyderabad, are leading the trend of joint start-up collaboration (IDCK, 2016).
Apart from institutional support the methods of teaching entrepreneur education and student
orientation are important dynamics to determine the effectiveness of entrepreneurship education. At
university level the methods of teaching entrepreneurship education can be classified into: traditional
methods also known as passive methods which comprise normal lectures and innovative methods also
known as active methods that are more action-based respectively. Compared with passive methods,
active methods require the teacher to facilitate learning, not to control and apply methods that enable
student‘s self-discovery (Bennett, 2006). In India, the three methods that are mostly employed for
teaching entrepreneur education are: lectures, case studies, group discussions. In reality these are the same
approaches used in other business management courses and are passive and ineffective in developing
entrepreneurial spirit. Such methods actually make students become indolent participants and prepare
them to work for an entrepreneur, but not to become entrepreneurs.
Challenges of Entrepreneurship Education in India
The leaning to pursue entrepreneurship is comparatively strong in India, where as the educational
support for its development is still far cry from the agenda (Raichaudhuri, 2005).Entrepreneurship
education in India is well established but it is not free from deficiencies. Entrepreneurial education in
India has several challenges to take on and the most important one is turning the idea of entrepreneurship
into an educational model. Creation and the success of entrepreneurs greatly depend on motives, attitudes
of people. Entrepreneurship has not been the preferred course among management students in India and
it has to go a long way in attaining the status of a favored destination. Perhaps, this is one of the reasons
why entrepreneurship is offered as an extra-curricular or co-curricular program in the majority of the
colleges and universities in India (Shankar, 2012).
Lack of institutionalization, absence of indigenous experience, dearth of trained teachers, focus on
short-term results, limitations with pedagogy and subject not considered as core are six primary obstacles
to teaching entrepreneurship in India (Shankar, 2012).
Top institutes in India are offering technical or management education with their popular support
programs for entrepreneurship, called “entrepreneurship cells” or “E-cells” are inadequate to create
entrepreneurial spirit (Mutsuddi, 2012). The educational framework for instructing the entrepreneurial
frame of mind seems far from being satisfactory (Dutta, 2012). Entrepreneurship education is an
important component for entrepreneurship policy framework. But entrepreneurship education taught by
many Indian institutions is not holistic enough (Liyan, 2003). There are contextual differences between
developed and developing economies that demand the development of indigenous standards that are
appropriate for entrepreneurial education with relevant knowledge about sociopolitical governance,
infrastructure, unorganized competition, chronic shortages, or sensitivity to local culture (Bhardwaj &
Sushil, 2012).

ISBN: 978-93-5300-292-3 Technical Session - I

8 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine

Indian Entrepreneurship Education Programs (EEP) offer training and coursework, but not the
other components. Even when the supportive frameworks exist, they are often not coordinated with the
other components of the EEP – for instance, almost every IIM has its own incubator, but these incubators
are mainly designed for outside entrepreneurs, and are not synchronized with the EEPs offered by the
IIMs (Liyan, 2003).
Teachers of entrepreneurship education lack practical experience in business. In most of
the institutions Management graduates without specialized skills in entrepreneurship teach the
students. Entrepreneurial intentions of the graduates in the developing countries are louder than that
of the developed ones, but actions speak lesser. The outcomes of entrepreneurship programs are not
instantaneous, as graduates’ impulse and competencies progress overtime. Hence, it is undesirable to
evaluate entrepreneurship education in terms of entrepreneurial intensions and the rate of graduates’
business creation.
Another problem related to entrepreneurship education is mixing it up with Management
education. As a result, the vital aspect of entrepreneurship education “entrepreneurial training” is missing.
Aspects like acquaintance with technological innovations, creative thinking, new product development,
leadership etc. do not get due recognition as they deserve. In most of the universities entrepreneurship
courses are comparable with general business programs.
The aim of entrepreneurship education is to sow the seeds of entrepreneurial drive and spirit
among the students. Passive modes of learning adopted by the schools of entrepreneurship education do
not meet the requirements of the real life situation and fails to instill such a vision in the younger students.
Most of the students prefer lucrative jobs with multinational companies with a good pay packet as it is
socially more satisfying and less risky. This mind set is a result of social norms and education imparted.
Younger generation in India is scared of launching startups as they believe that they lack confidence
and knowledge required. If properly trained, the students in India will have ample opportunities to
become entrepreneurs. Entrepreneurship will progress in those societies where cultural norms permit
variability in the choice of paths of life. Unfortunately, the Indian culture comprises a web of benefits that
in many ways run counter to entrepreneurship (Leo Paul Dana, 2000). Indians believe that it is healthier
to be passive and satisfied with the status quo for the inner soul than striving to improve one’s situation.
Most of the people, feel that taking up a job is much better than running the risk of starting a venture.
Suggestions for improving Entrepreneurship Education in India
ŠŠ No doubt the promotion of entrepreneurial education leads to true entrepreneurship among
the students which can be seen as fuel for economic growth engine and job creation. However
certain issues are to be addressed sooner than later to realize the intended results. The following
are the suggested measures to improve entrepreneurship education in India. Entrepreneurship
education programs must be precisely designed to multiply the students’ knowledge base in
entrepreneurship. The course contents and teaching methodologies have to be distinguished
between entrepreneurship education and other traditional business courses.
ŠŠ Strong didactic methods in entrepreneurial education for teaching, learning, and evaluation of
outcomes, review and feedback to teachers need to be established.
ŠŠ Entrepreneurial education requires qualified teachers who can motivate and instill the much
needed entrepreneurial mind set among the students. Competent teachers with entrepreneurial
qualities like risk taking, scouting for opportunities to exploit and good communications skills
must be selected in institutes of entrepreneurial education. Entrepreneurship education would be
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine 9

more successful if some experienced entrepreneurs are invited to associate with the institute as
visiting faculty.
ŠŠ Small groups of teachers must be provided with strong encouragement, support, time for focus
and access to specialized knowledge to develop effective and efficient entrepreneurial education
pedagogy. To meet this purpose, they must be given the opportunity to observe in other premier
institutes of entrepreneurial education to discover and refine a methodology that exactly fits their
environment. A concerted effort involving stake holders such as teachers, students, heads, policy
makers, researchers, should be made in bringing in robust reforms in entrepreneurial education.
ŠŠ In order to make entrepreneurial education more effective, diligent care must be taken by the
institutions while identifying and selecting the candidates for the courses. Proper testing tools
should be devised to select the best candidates with entrepreneurial spirit. Teachers should give
their students assignments that can lead to continual interactions with the outside world, for deep
learning. Such “learning by doing” activities can produce the development of entrepreneurial
competencies among the graduates.
ŠŠ If graduates want entrepreneurship to be learned as a career, it is best done through apprenticeship.
The learning tools that must be deployed in entrepreneurial education to a greater effect could
be: student business start-up plans, consultation with practicing entrepreneurs, entrepreneurship
simulations, behavioral simulations, interviews with entrepreneurs, live case studies, field trips,
and the use of success stories of entrepreneurs.
ŠŠ Nurturing an entrepreneurial culture acts as a force to reckon with in the economic development.
An entrepreneurial culture can be fostered through promoting entrepreneurial values in media
and well documentation and publication of success stories. This could help in changing some
negative perceptions about entrepreneurship among the younger people.
ŠŠ Too many laws regulating the starting and running of business can do no good to the economy.
Multiple legislations on every issue will hamper the entrepreneurial spirit of the prospective
entrepreneurs. Hence the government should continue with reforms and should play more
proactive role to create an entrepreneurship friendly eco system which in turn will benefit
entrepreneurial education.
Conclusions:
Entrepreneurship supports economic development of a nation as it is a key contributor to
employment creation and national income. In the context of the Indian market, entrepreneurship led
economic growth is more inclusive and hence Governments, both at Centre and State level, have been
taking initiatives to boost the entrepreneurial ecosystem as they realize the benefits of entrepreneurship
brings to the economic growth of the country. Entrepreneurs and government can work collectively
to transform a developing economy into developed economy. In order to catch up with the developed
countries, India needs the hands of many entrepreneurs who are willing to make it big in businesses. If the
students with entrepreneurial dynamism get proper training, they will have the chances of becoming true
entrepreneurs and contribute their might for economic development of the nation. Entrepreneurship is
a philosophy that requires the government, society, and the educational institutions to work in tandem.
Entrepreneurship education in India to achieve its quest for nurturing potential entrepreneurs to
contribute to economic development and employment, the institutions should restructure their programs
and can make a fine restart. The Government also needs to play their part in encouraging entrepreneurship

ISBN: 978-93-5300-292-3 Technical Session - I

10 Role of Entrepreneurship Education in Nurturing Potential Entrepreneurs to Fuel the Economic Growth Engine

education directed at nurturing entrepreneurial competencies and formulating favorable policies to

reinforce the entrepreneurial ecosystem in the country.
References:
yy Alberti, F., Sciascia, S. and Poli, A. (2004). “Entrepreneurship Education: Notes on an ongoing Debate”. Proceedings of 14th Annual
International Entrepreneurship Conference. University of Nopoli, Federico II, Italy, 4-7 July.
yy Amit (2014). “Entrepreneurship Development in India: Role of Economic Growth, Foreign Investment and Financial Development”,
AIMA Journal of Management & Research, Volume 8(3/4).
yy Bennett, R. (2006). Business lecturers’ perceptions of the nature of entrepreneurship. International Journal of Entrepreneurial Behavior
& Research, 12(3), 165–188.
yy Broto R. Bhardwaj,  Sushil, (2012). “Internal environment for corporate entrepreneurship: Assessing CEAI model for emerging
economies”, Journal of Chinese Entrepreneurship, 4(1), 70-87.
yy Carland, J., & Carland, J. (2004). “Economic development: Changing the policy to support entrepreneurship”, Academy of
Entrepreneurship Journal, 10(2), 104-114.
yy Chandler, A. (1990). Entrepreneurship and Economic Growth. Cambridge, Harvard University Press. 
yy CXO Today (2015, February 12). “What it takes for Indian firms to be global leaders”, Available: http://www.cxotoday.com/story/
whats-the-road-ahead-for-digital-startups. Accessed September 10, 2017.
yy Drucker, P. F. (1985). “Innovation and Entrepreneurship. Practice and Principles”, London, Heinemann
yy Dutta, S. 2012. “Entrepreneurship and Global Competitiveness: A Study on India”. Indian Journal of Industrial Relations, 47(4), 617-
33.
yy Fayollealain, Basso Olivier, Bouchardvéronique (2009). “Special Issue: Corporate Entrepreneurship: Challenges and New Perspectives:
Introduction”. International journal of entrepreneurship and innovation, 10 (4).
yy Gibb, A. (2002). “In pursuit of a new `enterprise’ and `entrepreneurship’ paradigm for learning: creative destruction, new values, new
ways of doing things and new combinations of knowledge”. International Journal of Management Reviews, 4, 233-269.
yy Haveman HA, Habinek J, Goodman LA. How entrepreneurship evolves. The Founders of New Magazines in America. 2012; 1741-
1860.
yy Hytti, U. & O’Gorman, C. (2004). “What is “enterprise education”? An analysis of the objectives and methods of enterprise education
programmes in four European countries”. Education+Training, 46, 11-23.
yy IDCK (2016, January).“Entrepreneurship and Start-Up Activities at Indian Higher Education Institutions”, Analysis No. 3,
Copenhagen, Danish Agency for Science, Technology and Innovation.
yy Jones C, English J. (2004). “A contemporary approach to entrepreneurship education”. Education & Training, 46 (8/9), 416.
yy Katz, J. A. (2008). “Fully Mature but Not Fully Legitimate: A Different Perspective on the State of Entrepreneurship Education”.
Journal of Small Business Management, 46, 550-566.
yy Kuratko, D. F. (2005). The emergence of entrepreneurship education: Development, trends, and challenges. Entrepreneurship Theory
and Practice, 29, 577-597.
yy Leo Paul Dana (200). “Creating entrepreneurs in India”, Journal of Small Business Management, 38 (1), 86-91.
yy Martin Lackéus (2015). “Entrepreneurship in Education – What, Why, When, How”, Entrepreneurship 360: Background Paper, Center
for Entrepreneurship, Paris, OECD.
yy Mohul Ghosh (2015, August 19). “Government launches India Aspiration fund & Make in India loans for Indian startups”, Available:
http://trak.in/tags/business/2015/08/19/india-aspiration-fund-iaf-make-in-india-loan-startup-sme/. Accessed September 11, 2017.
yy Mutsuddi, I. (2012). “Relevance of Entrepreneurship Cells in Technical Institutes and Business Schools”, The IUP Journal of
Entrepreneurship Development, 9(3), 58-71.
yy NASSCOM Startup Report (2014).
yy Naudé, W. (2008). “Entrepreneurship in economic development”, No. 2008/20, Research Paper, UNU-WIDER, United Nations
University (UNU).
yy Osuala, E. C. (2004). “Principles and Methods of Business and Computer Education”, Enugu, Cheston Agency Limited.
yy Peggy R, Maramark S. (1996). “On the Road to Economic Development: A guide for continuing education programs at historically
Black Colleges and Universities”, US Department of Education; Available: http://www.ed.gov/offices/OERI/PLL/HBCU/title.html, Assessed
October 21, 2014.
yy Raichaudhuri A (2005). “Issues in Entrepreneurship Education”, Decision, 32(2): 73-84.
yy S. Vaidya (2014). Developing Entrepreneurial Life Skills, New Delhi, Springer Briefs in Education.
yy Zhang Liyan (2003). “Entrepreneurship Education within India’s Higher Education System‟.Available:http://citeseerx.ist.psu.edu/
viewdoc/download?doi=10.1.1.320.1267&rep=rep1&type=pdf.Accessed October01, 2017.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 A Study on Essential Skills Required for Modern Entrepreneurs
*T. Narayana Rao, **Dr. V. Srinivasa Prasad
*MVGR of College of Engineering (A), Department of Management Studies Chintalavalasa -Vizianagaram
**VRS&YRN College, Department of Management Studies Chirala –Prakasam-district

Abstract Entrepreneurs are people who start their own business. They are known for taking up high risk, having big
ideas, and making major innovations that can change how others do business. While anyone who starts a business has
entrepreneurial spirit which makes them move, true entrepreneurs are distinguished by a certain visionary quality.
For success of any business there are certain skills which are highly essential. In this research paper, we’ll look at the skills
need to be a successful entrepreneur, and we’ll explore resources that you can use to develop the traits needed for success.
Key words: Entrepreneurs competencies, Character, Entrepreneur behavior

Introduction:
Entrepreneurship has long been valued as a key contributor to the growth of an economy. It
is widely believed that economies that are abundantly supplied with entrepreneurs will tend to grow
far more rapidly than those in which entrepreneurial talent is scarce. The entrepreneur continues to
play a critical part in the growth process, and there is no reason to expect that role to disappear. An
entrepreneur is an individual or group of persons who try to create something new, who organizes
production and undertakes high risk involved in the establishment and operation of a business enterprise.
Entrepreneurship Development Institute of India(EDI) Ahmadabad conducted a research study of
entrepreneurs and explore (or) identified competencies namely, innovation, watching for opportunity,
persistence, information seeking, quality consciousness, commitment to work, efficiency lover, proper
planning, self confidence, assertiveness, persuasion, efficient monetary and concern for people.
Objective of the study:
The objective of the study is to identify the essentials skills that are required for modern
entrepreneurs.
Definition:
“Entrepreneurship as the function of seeking investment and production opportunity, organizing
an enterprise to undertake a new production process, rising capital, hiring labor, arranging the supply
of materials, finding site, introducing new techniques and commodities, discovering new sources of raw
materials and selecting top managers of day to day operations of the enterprise”
Prevailing concepts of entrepreneurship are:
Psychological Traits:
Entrepreneurship development is due to the ability of the rage to achieve something in their life.
This concept was developed by Mc Clelland. According to him individuals have psychological urge to
achieve something new. Of course the degree of urge varies from one individual to another. Those who
have high degree of urge to achieve in their life become entrepreneurs and all the activities enabling them
to fulfill their urges are called entrepreneurship.
Sociological Traits:
Entrepreneurship development is also due to the sociological traits of the individuals living in a
particular place. Certain individuals would like to attain status in the society by means of setting up of a
12 A Study on Essential Skills Required for Modern Entrepreneurs

new business or industry. However, they are allowed to act within the constraints of the cultural norms
and religious moves that are customary in the society.
Economic Factors:
Apart from the psychological and sociological factors, entrepreneurship development is also
due to the existing economic activities of the state where the entrepreneurs live. Individuals learn from
the existing economic activities as how best to equip themselves for meeting the future challenges. They
collect adequate economic and technical information and decide as how best to introduce new business
that suits to the expectations of the Government and its revised economic policies.
Review of literature:
ŠŠ There are many fields on what make someone an entrepreneur and what an entrepreneurial skill
is. An entrepreneur can be defined the one who organizes, manages and assumes the need of a
business enterprise. It can be defined as a person who have decided to take control f his/her future
and becomes self employed whether by creating his own unique business or working as a member
of a team at a multi level vocation. He is a person who has possession of an enterprise or venture
and assumes significant accountability for the inherent risks and the outcome. He is an ambitious
leader who combines land, labor and capital to create and market new goods or services (Stephen
1991)-(01)
ŠŠ Entrepreneurial skill can be defined as the ability to create something new with value by devoting
the necessary time and effort, assuming the accompanying financial, psychic and social risks, and
receiving the resulting rewards of monetary and personal satisfaction and independence (Hisrich
& Peters, 2002)-(02).
ŠŠ Pajarinen et al. (2006) [03] have said that entrepreneurs with higher academic background are more
innovative and will use modern techniques and models to do business. Barringer and Bluedorn
(1999) [04] have described entrepreneurs as individuals who can explore the environment,
discover the opportunities, and exploit them after proper evaluation. Kuratko (2009) [05], in his
book, distinguishes between entrepreneurs and small business owners. He highlights that these
two terms are often used interchangeably, but both have a lot of differences in their reaction
under certain situations.
ŠŠ Several researchers claimed that optimism was associated with positive outcomes in entrepreneurs,
their success, and their contributions to the economies in which they operate. Kuratko and
Hodgetts suggested that optimism among entrepreneurs, even in bad times, is an important
factor in their drive toward success (Kuratko & Hodgetts, 2004) - [06].
ŠŠ Marcela Rodica Luca (2013)–[07] Analyzed the relations between entrepreneurial personality
traits and entrepreneurial intentions in students belonging to bachelor, master and doctoral
level. From the comparison between two paired samples, one involved in entrepreneurial
training and the other one not involved, results a strong interaction effect between involvement/
non-involvement in entrepreneurial training and the intent of starting a business on all the
entrepreneurial personality traits.
ŠŠ Jeya Ani J. and Lourdes Poobala Rayen42 (2014) – [08] in their study says that the rural women
entrepreneurs doing family business have higher business management skills than the family
of women entrepreneurs doing private occupation, agriculture and others. Moreover, the rural

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Essential Skills Required for Modern Entrepreneurs 13

women entrepreneurs doing family business are having higher enterprise skills than the other
categories.
Types of Entrepreneurs:
Based on their working relationship with the business environment they are functioning in,
various types of entrepreneurs can be found. The chief categories are these four types of entrepreneurs, i.e.
5.1 Innovative Entrepreneurs
This type of an entrepreneur is more interested in introducing some new ideas into the market,
organization or in the nation. They are drawn towards innovations and invest a lot of time and wealth in
doing research and development.
5.2 Imitating Entrepreneurs
These are often disparagingly referred to as ‘copy cats’. They observe an existing successful system
and replicate it in a manner where all the deficiencies of the original business model are addressed and
all its efficiencies are retained. These entrepreneurs help to improve an existing product or production
process and can offer suggestions to enhance the use of better technology.
5.3 Fabian Entrepreneurs
These are entrepreneurs that are very careful in their approaches and cautious in adopting any
changes. They are not prone to sudden decisions and try to shy away from any innovations or change that
doesn’t fit their narrative.
5.4 Drone Entrepreneurs
These are entrepreneurs who do not like a change. They are considered as ‘old school’. They want
to do business in their own traditional or orthodox methods of production and systems. Such people
attach pride and tradition to even outdated methods of doing business.
Skills for entrepreneur’s business to success:
Personal characteristics and attitudes which can often be hard or impossible to change entrepreneurs
can acquire skills if they are willing to learn them. Additionally, they can hire people to work for them
who have the needed skills. Either way, the following skills are important if the entrepreneur’s business is
to succeed.
Ability to Plan Leadership Skills Management skills

Team Building Skills Marketing Skills Interpersonal skills

Essential skills for modern entrepreneur:

There are certain skills helps to be expertise in some key area, but these are not defining
characteristics of entrepreneurship. Instead, the key qualities are traits such as creativity, the ability to
keep going in the face of hardship, and the social skills needed to build great teams. If you want to start
a business, it’s essential to learn the specific skills that underpin these qualities.

ISBN: 978-93-5300-292-3 Technical Session - I

14 A Study on Essential Skills Required for Modern Entrepreneurs

Creative thinking:
Entrepreneurs are known for thinking outside of the box. Anyone can start an online business or
a storefront; it takes Jeff Bezos to conceive of Amazon.com and expand an online book-selling business to
using drones, streaming media, and supplying nearly any item under the sun Creative thinking can take
a smart, capable business owner to another level of success. In cover letters and interviews, emphasize this
skill to show potential employers that you see connections and possibilities where others do not.
Communication & Persuasion:
It is a skill to be able to express an idea in a clear and concise manner. You should be able to pick
out the most important concepts of your ideas and speak about them with clarity. You will also need to
understand thoroughly the business industry in order to be persuasive. If you are talking to a potential
investor and you get asked a hard question.
Finance. 
While you don’t need to be a CPA (Certified Public Accountant) to run a successful business,
you should still have a decent understanding of your finances, profit margins, cash flow and funding. The
more comfortable you are with all of these numbers, the more confident you’ll be, and the better decisions
you’ll make.
Time management & planning skills:
As mentioned earlier, time is a finite resource. If you let time get away from you, you will have
a hard time starting a successful business. Your planner should be your best friend. Learn to prioritize
and plan. Setting aside several hours each week to plan for the entire week and to make them utilized in
productive way.
Strong Work Ethic:
Being an entrepreneur may seem flashy and exciting. But a lot of hard work and long hours
are required to launch something new. To be successful, entrepreneurs must execute. You’ll often hear
stories of entrepreneurs who begin their workday well before sunrise, or send middle-of-the-night emails.
Entrepreneurs are relentless when it comes to completing projects and following through on the work
required to turn ideas and plans into sellable products.
Strategy. 
It’s easy to think about the “right-now” aspect of your business, because the results are easy to see.
But what about the bigger picture, long-term challenges and goals? How often are you thinking about
those? Without a constant eye on your business’ strategy and skilled assessment of that strategy relative
to the industry and your competition, you can’t hope to grow it over time and remain competitive in the
marketplace.
Risk Taking:
Entrepreneurs often seem more comfortable with risk than other business leaders. This can lead
to tremendous failures, but also stunning successes. Entrepreneurs are willing to live without a steady
paycheck and make short-term sacrifices for a long-term payoff. That said, the risks that entrepreneurs
take are calculated, and aren’t simply done for the thrill. 

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Essential Skills Required for Modern Entrepreneurs 15

Identify strengths and weaknesses:

As a business owner, you don’t need to be perfect at everything. You do, however, have to
understand where you’re strong and where you’re weak. Assessing this will inform everything from the
business decisions you make, to the partners you bring on, and to the employees you hire.
Branding (personal and business). 
Whether you’re striving to brand your business or looking to establish yourself as an expert in
your industry, knowing how to do so online is essential to your success. Branding starts with being active
on social media, and is shaped through content publication, whether on or off your website. Be aware,
though, that poor content can lead to negative branding. It’s important to know how to deliver content
and resources that your target audience wants and will find valuable.
Make entrepreneur friends.
According to entrepreneur Jim Rohn, “You are the average of the five people you spend the most
time with.” So who do you want to be? Improve your odds of success by finding entrepreneur friends who
will be able to understand your struggles and give you much needed insight.
Connect via social networking:
Along with SEO, social networks represent a key part of any business’s marketing strategy. Not
only will you need to understand each platform, you’ll want to arm yourself with the best strategies for
getting your startup and personal brand noticed on each one.
Focus on your customers:
To be clear, without customers, you have no business. Make sure all of your pitches, products,
and services are focused on actual customer needs. If you don’t know what these are, research and ask
questions so that you’re able to give great customer service.
Learning skills:
Learning is a skill. As an entrepreneur you need to be a quick learner. You have to be willing to
learn new skills constantly. Understanding and find meaning that is deeper than the surface. You must
learn to make your own arguments (not just those made by the media), synthesize new knowledge,
memorize information, gain new relevant skills, and be able to utilize all this knowledge to create new
things and make old things more efficient.
Conclusion:
The present study achieves the stated objective. It provides an insight for proper understanding
of the skill that are essential for modern entrepreneurial success. in this article it has identified thirteen
major skill-related that act as driving agents for entrepreneurial success they are Creative thinking,
Communication & Persuasion, Finance, Time management & planning skills, Strong Work Ethic,
Strategy, Risk Taking, Identify strengths and weaknesses, Branding (personal and business), Make
entrepreneur friends, Connect via social networking, focus on your customers, in this article we focused
on understanding and acquisition of essential entrepreneurial skill are necessary strategies and tools for
the development of entrepreneurial competencies.
References:
yy Abbasi, M.H., Siddiqi, A., & Rahat ul Ain, A. (2011). Role of effective communications for enhancing leadership and entrepreneurial
skills in university students. International Journal of Business and Social Science, 2(10), 242–250.

ISBN: 978-93-5300-292-3 Technical Session - I

16 A Study on Essential Skills Required for Modern Entrepreneurs

yy Dickson, P. H., Solomon, G. T. and Mark Weaver, K. Entrepreneurial selection and success: does education matter? Journal of Small
Business and Enterprise Development, 15(2), 2008, pp.239–258.
yy Jeya Ani. J, Lourdes Poobala Rayen, Women Entrepreneurship in Rural Areas, Discovery Publications, New Delhi, 2014, p 232
yy Marcela Rodica Luca, Ana-Maria Cazan and Denisa Tomulescu, “Entrepreneurial Personality in Higher Education” Procedia - Social
and Behavioral Sciences, Volume 84, 9 July 2013, Pages 1045–1049.
yy Mr. T.D.Babu (2007) “A Study on Women Entrepreneurial Skills” Journal of Contemporary Research in Management.
yy Sunday Adeniyi ADEYEMO (2009) “Understanding and Acquisition of Entrepreneurial Skills: A Pedagogical Re-Orientation for
Classroom Teacher in Science Education” TURKISH SCIENCE EDUCATION Volume 6, Issue 3, December 2009.
yy https://www.thebalance.com/list-of-skills-entrepreneurs-need-2062391
yy https://www.entrepreneur.com/article/242327
yy https://www.mindtools.com/pages/article/newCDV_76.htm
yy http://www.huffingtonpost.com/neal-jenson/entrepreneurship-skills_b_3228479.html
yy http://www.cefe.illinois.edu/tools/Making%20A%20Job/MAJ_Student%20Guide%20Sample.pdf

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Entrepreneurship in Economic Development in India
*A. Bhagyaraj, **Prof. D. V. Ramana,
* Research Scholar Department of Management Studies, S. V. University, Tirupati
**Department of Management Studies, S. V. University, Tirupati

Abstract: Entrepreneurship is the engine of economic growth and development, particularly in India. The latest Census
reports the unemployment rate as 9.4%, and to further lower this percentage, we need more job opportunities. At a large
scale, it should be done by Entrepreneurs. Entrepreneurs provide a supernatural stroke to an organization, whether in
public or private or joint sector, in achieving inventiveness, speediness, flexibility and a strong wisdom of self-determination.
They bring a new vision to the forefront of economic growth. In that regard, an Entrepreneur can bring certain changes
to the society and to our country. This paper focuses on the entrepreneur’s role in economic development in India.
Key words: Entrepreneurs, Development, Economic Development, Wealth, Employment, Growth Rate
Introduction
The word “entrepreneur” is derived from the French word “entreprendre”, which means ‘to
undertake’. This refers to those who “undertake” the risk of new enterprises. An enterprise is created by
an entrepreneur. The process of creation is called “entrepreneurship”.
Definitions
According to A.H.Cole: Entrepreneurship is the purposeful activity of an individual or a group of
associated individual, undertaken to initiate, maintain or aggrandize profit by production or distribution
of economic goods and services.
According to J.A. Timmons: Entrepreneurship is the ability to create and build something from
practically nothing.
According to Musselman and Jackson: “Entrepreneurship is the investing and risking of time,
money and effort to start a business and make it successful.
According to economist Joseph Alois Schumpeter (1883-1950), “entrepreneurs are not necessarily
motivated by profit but regard it as a standard for measuring achievement or success.”
An entrepreneur can be industrialist as a person who has the initiative skill and motivation to
set up a business or enterprise of his own and who always look for high achievements. Entrepreneur is
the catalyst for social change and works for the general good. They looks for opportunities, identifies
them and seizes them mainly for economic gains. An action oriented entrepreneur is a highly calculative
individual who is always willing to to undertake risks in order to achieve their goals.
It’s evident that Entrepreneurs create initiatives, which in turn creates opportunities, which in
turn creates jobs. The latest Census reports the unemployment rate as 9.4%, and to further lower this
percentage, we need more job opportunities. At a large scale, it should be done by Entrepreneurs. It’s worth
noting that both the reports prepared by Planning Commission to generate employment opportunities
for 10crore people over the next ten years have strongly recommended self-employment as a way-out for
teaming unemployed youth. One such example can be pointed to Mr. N.R Narayana Murthy, whose
company Infosys now employs over 1,45,088 employees.
However, the most important role that Entrepreneurs can play in the country’s development is
by creating wealth for the country, which in turn can fund further start ups and budding Entrepreneurs.
Entrepreneurial companies offer the greatest opportunity for wealth creation, simply because they have
the potential of capturing the market, especially international. Creating and sharing wealth can enable
18 Role of Entrepreneurship in Economic Development in India

entrepreneurs to do what India’s government has failed to do since Independence, such as transforming
education and rural India, making wealth an instrument for bringing the revolutions to build the new
India.
Considering India’s increased poverty rate of 37.2%, Entrepreneurs should create wealth overflow
in the country for its development. The economy of India is an underdeveloped mixed economy. It is
the world’s seventh-largest economy by nominal GDP and the third-largest by purchasing power parity
(PPP). The country ranks 141st in per capita GDP (nominal) with $1723 and 123rd in per capita
GDP (PPP) with $6,616 as of 2016. After 1991 economic liberalisation, India achieved 6-7% average
GDP growth annually. In FY 2015 India’s economy became the world’s fastest growing major economy
surpassing China India has one of the fastest growing service sectors in the world with an annual growth
rate above 9% since 2001, which contributed to 57% of GDP in 2012–13. India has become a major
exporter of IT services, Business Process Outsourcing (BPO) services, and software services with $154
billion revenue in FY 2017. India ranks second worldwide in farm output. Agriculture and allied sectors
like forestry, logging and fishing accounted for 17% of the GDP and employed 49% of its total workforce
in 2014. Textile industry contributes about 4 per cent to the country’s GDP, 14 per cent of the industrial
production, and 17 per cent to export earnings. The services sector has the largest share of India’s GDP,
accounting for 57% in 2012, up from 15% in 1950. It is the seventh-largest services sector by nominal
GDP, and third largest when purchasing power is taken into account. The services sector provides
employment to 27% of the work force.
The Indian pharmaceutical industry has grown in recent years to become a major manufacturer of
health care products to the world. India produced about 8% of the global pharmaceutical supply in 2011
by value, including over 60,000 generic brands of medicines. The industry grew from $6 billion in 2005
to $36.7 billion in 2016, a compound annual growth rate (CAGR) of 17.46%.
Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the
World Bank, India’s industrial manufacturing GDP output in 2015 was 6th largest in the world on
current US dollar basis ($559 billion),and 9th largest on inflation-adjusted constant 2005 US dollar basis
($197.1 billion).
Objectives of the Study
ŠŠ To know the importance of entrepreneurship in India.
ŠŠ To study the impact of entrepreneurship in economic development.
Review of literature
Characteristics of Entrepreneurship
Some of the key characteristics of the entrepreneurs
Economic and self-motivated activity:
Entrepreneurship is an economic activity because it involves the creation and operation of an
enterprise with a view to creating value or wealth by ensuring optimum utilization of scarce resources. Since
this value creation activity is performed continuously in the midst of uncertain business environment,
therefore, entrepreneurship is regarded as a dynamic force.
Risk bearing:
The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation and
implementation of new ideas. New ideas are always tentative and their results may not be instantaneous

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship in Economic Development in India 19

and positive. An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period
(time gap between the conception and implementation of an idea and its results), an entrepreneur has
to assume risk. If an entrepreneur does not have the willingness to assume risk, entrepreneurship would
never succeed.
Profit potential:
“Profit potential is the likely level of return or compensation to the entrepreneur for taking on
the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of
entrepreneurs would remain only an abstract and a theoretical leisure activity.
Value Creation:
The process of creating value is a characteristic in describing entrepreneurship. Through
entrepreneurship, services, new products, transactions, resources, technologies, and markets are created
that contribute some value to a community or marketplace. Drucker says, “Until entrepreneurial act,
every plant is a seed and every mineral just another rock.
Related to innovation:
Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an
individual to continuously evaluate the existing modes of business operations so that more efficient and
effective systems can be evolved and adopted.
Skilful management:
Entrepreneurship involves skilful management. The basic managerial skill is the most important
characteristic feature of entrepreneurship. The effective management of an enterprise, the role of an
entrepreneur is to initiate and supervise design of organization improvement projects in relation to
upcoming opportunities is very much important.
Accepting challenges:
Entrepreneurship means accepting challenges amidst risk and uncertainty. While accepting
entrepreneurship as a career the entrepreneur accepts the challenges of all odds and puts his efforts to
convert the odds into viable business opportunities by pooling together the resources of building and
running the enterprise.
Goal-oriented Activity:
The entrepreneur who creates and operates enterprises seeks to earn profits through satisfaction
of needs of consumers; hence, entrepreneurship is a goal-oriented activity. Entrepreneurship emphasizes
results, achievements and targets achieved. It is work done not imaginary plans or paper decisions. Hence
entrepreneurship is a goal-oriented activity.
Dynamic Process:
Entrepreneurship is a dynamic function. Entrepreneur thrives on changes in the environment,
which bring useful opportunities for business. An entrepreneur deals proactively with changing markets
and environment. He looks at the changes as the source of market advantages, not as a problem.
Uncertainties are market opportunities for him. He capitalizes on fleeting market anomalies.
Individuality:
Other characteristic found in entrepreneurship is that of uniqueness. Entrepreneurship involves
new combinations and new approaches with which entrepreneurs are willing to experiment. Through

ISBN: 978-93-5300-292-3 Technical Session - I

20 Role of Entrepreneurship in Economic Development in India

Entrepreneurship unique products are created and unique approaches are tried. It’s doing something new,
something untested and untried – something unique.
Interest and Vision:
The first factor for entrepreneurial success is interest. Since entrepreneurship pays off according
to performance rather than time spent on a particular effort, an entrepreneur must work in an area that
interests them. The day-to-day activities of a business are interesting to an entrepreneur, this is not
enough for success unless she can turn this interest into a vision of growth and expansion. This vision
must be strong enough that she can communicate it to investors and employees.
Risk and Rewards:
Entrepreneurship requires risk. The measurement of this risk equates to the amount of time
and money you invest into your business. However, this risk also tends to relate directly to the rewards
involved.
Entrepreneurs Help Grow Indian Economy
An entrepreneur is business a leader look for ideas and puts them into effect in encouragement
economic growth and development. They play the most important role in the economic growth and
development of Indian economy. An entrepreneur plays a pivotal role not only in the development of
industrial sector of a country but also in the development of farm and service sector. The major roles
played by an entrepreneur in the economic development of an economy are as follows.
ŠŠ Create large scale Employment: Entrepreneurs provide direct large-scale employment to the
unemployed which is an unending problem of India. Small entrepreneurs provide self employment
to technically qualified persons and professionals. Entrepreneurs clear the path towards economic
development of our country.
ŠŠ Capital Formation: Entrepreneurs promote capital formation by mobilizing the idle savings of
our citizens. They employ resources for setting up their enterprises. Such types of entrepreneurial
activities lead to value addition and creation of wealth, which is very essential for the industrial
and economic development of India.
ŠŠ Balanced Regional Development: Entrepreneurs help to eliminate regional disparities by
industrializing rural and backward areas. The growth of industries and business in these areas lead
to a large number of public benefits like road transport, health, education, entertainment, etc.
They help to reduce the problems of overcrowding, slums and population in cities by providing
employment and incomes to them.
ŠŠ Standard of Living Improve: Entrepreneurs take up latest innovations in the production of wide
variety of goods and services in large scale that too at a lower cost. It enables the people to benefit
better quality goods at lower prices which results in the improvement of their standard of living.
ŠŠ Wealth Creation and Distribution: An entrepreneur stimulates impartial 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. Entrepreneurial activities also ensure equitable
distribution of income and wealthy by inculcating the spirit of entrepreneurship amongst people
thereby providing them self employment with limited resources.
ŠŠ Increasing GDP and Per Capita Income: They encourage effective resource mobilisation of
capital and skill, bring in new products and services and develops markets for growth of the

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship in Economic Development in India 21

economy. In this way, they help increasing gross national product as well as per capita income of
the people in our nation.
ŠŠ Facilitates Overall Development: Once an enterprise is established, the process of industrialization
is set in action. The unit will generate demand for various types of units required by it and there
will be so many other units which require the output of this unit. This leads to overall development
of an area due to increase in demand and setting up of more and more units.
ŠŠ Concentration of Economic Power Reduces: Industrial development normally leads to
concentration of economic power in the hands of a few individuals which results in the growth
of monopolies. Entrepreneurs contribute towards the development of society by reducing
attentiveness of income and wealth.
ŠŠ Induces Backward and Forward Linkages: Entrepreneurs work in an environment of changing
technology and try to maximise profits by modernization. Entrepreneurs induces backward and
forward linkages which encourage the process of economic development in the country.
ŠŠ Increase Country’s Export Trade: Entrepreneurs earn valuable foreign exchange through
increased exports. They produce goods and services in large scale for the purpose earning huge
amount of foreign exchange from export.
Discussion
The latest Census reports the unemployment rate as 9.4%, and to further lower this percentage,
we need more job opportunities. At a large scale, it should be done by Entrepreneurs. It’s worth noting
that both the reports prepared by Planning Commission to generate employment opportunities for
10 crore people over the next ten years have strongly recommended self-employment as a way-out for
teaming unemployed youth
Several state governments provides welfare schemes to the peoples, for that government want the
financial support from the central government, but some of the states like Gujarat, Tamil Nadu need not
depend central government. Because of they can get more income from the industrialist (entrepreneurs).
At the same time Mr. Narendra Modi became Prime Minister of India, the main reason is model
of Gujarat development but the main reason is Gujarat state is entrepreneurship state, the development
is credited to Modi pocket. Like Tamil Nadu provides a more welfare schemes to public, for the reason
well developed industry in Chennai and Coimbatore. So that industrial (entrepreneurs) developed states
provides employment, infrastructure facilities and standard of living.
A little of the business family like TATA group, Birla, RPG Group and Infosys Narayana moorthy
create a huge employment and production of the country development.
Some of the drawbacks of the same time India has the second highest number of shadow
entrepreneurs in the world. Shadow entrepreneurs are individuals who manage a business that sells
legitimate goods and services but they do not register their businesses. For every business that is legally
registered in India, there are 127 shadow businesses that are not. This means that they do not pay tax,
operating in a shadow economy where business activities are performed outside the reach of government
authorities.
Informal entrepreneurs trade legal products and services, yet do not apply for business registration
or file any incorporation documents with government authorities. The phenomenon of informal
entrepreneurship is seen as a potential driver of job growth and economic development, especially in
developing countries.

ISBN: 978-93-5300-292-3 Technical Session - I

22 Role of Entrepreneurship in Economic Development in India

Some of the entrepreneurs is identified to have adverse impact on the economic development of
India, like Satyam Ramallinga Raju, Vijay Malya and Gali Janardana Reddy.
Conclusion
Entrepreneurship plays an important role for economic development in developing countries
like India. It is evident from the study that entrepreneurs are ready to face the challenges associated with
setting up of business. Therefore, the entrepreneurs need to be motivated to take up entrepreneurship as
a career, with training and sustaining support systems providing all necessary assistance. Entrepreneurs
are creating jobs, generating wealth and nurturing innovation are some of the very crucial job roles that
entrepreneurs should play, all aimed towards sustained development of our country.
References
yy Bednarzick, Robert W. “The Role of Entrepreneurship in U.S. and European Job Growth.” Monthly Labor Review, Vol. 123, No.7,
2000, 3-16.
yy Cantillon. R. 1971. Entrepreneurship and economica development. The free press. New Yark.
yy Audretsch, David and Keilbach, Max. “Entrepreneurship and Regional Growth: An Evolutionary Interpretation.” Journal of
Evolutionary Economics, Vol. 14, No.5, 2004, 605–616.
yy http://unu.edu/publications/articles/are-entrepreneurial-societies-also-happier.html
yy S. Kanoi, “Role of Government in Developing Entrepreneurship in Assam”, Ph. D dissertation, Assam University, 2011.
yy Amrita Dhaliwal “Role of Entrepreneurship in Economic Development” International Journal of scientific research and management
(IJSRM), Volume.4, 4262-4269, 2016
yy Alvareza, S.A. and Busenitz Lowell W. (2001) ‘The entrepreneurship of resource-based theory’ Journal of Management 27: 755–775.
yy Gribben, A.A. (2006) ‘Entrepreneurship Learning: Challenges and Opportunities’ ETF-AF-2006-08.
yy Naude, W. (2008) ‘Entrepreneurship in Economic Development’, Working Papers RP2008/20. World Institute for Development
Economic Research (UNU-WIDER).

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Perspectives of Entrepreneur’s in the New Era
*Anilambica Kata **B. Raghavi
*Asst Prof, AKNU, Email ID: [email protected]
**MBA, II Year, AU, Email ID: [email protected]

Abstract Before advent of 20th Century, the Success of Indian Business was a function of ambition, licenses, government
contacts, and an understanding of the bureaucratic system. All the business Decisions were based on connections, rather than
the market or competition. The Business goals reflected a continuation of the ‘Swadeshi’ movement, which promoted import
substitution to attain economic freedom from the West. During this era, entrepreneurship was subdued, capital was limited and
India had very few success stories. As well, society was risk averse and the individual looked primarily for employment stability.
In 1991, the Indian government liberalized the economy, thus changing the competitive landscape. Family businesses,
which dominated Indian markets, now faced competition from multinationals that had superior technology, financial
strength and deeper managerial resources. Thus, Indian business had to change its focus and re-orient their outlook
outward. A few existing Indian business families adapted to the new economic policies while others struggled. The
Present paper aims to illustrate the rapid changes that changed the world of business giving tempo to the growth
and scope of entrepreneurship & self employments. Firstly, a new breed of business was born, one that focused on ICT
(Information and Communication Technology) and created wealth for owners and employees. So after liberalization,
environment for entrepreneurs has changed. Many opportunities have been created for them to grow in their businesses.
Key words Connections, Import substitution, Risk averse, Liberalization, Re-orient, ICT, VCF’s
 
Introduction
Current Scenario
Entrepreneurship is not new to India. In fact to quote from the Indian Industrial Commission
Report (1916-1918)–”At a time when the West of Europe, the birth place of modern industrial system,
was inhabited by uncivilized tribes, India was famous for the wealth of her rulers and for high artistic skill
of her craftsmen. And even at a much later period, when the merchant adventures from the West made
their first appearance in India, the industrial development of this country was, at any rate, not inferior to
that of the more advanced European nations.”In fact an earlier version of the current Make in India policy
was the Swadeshi movement launched in 1905 during the pre-Independence era to boycott British made
goods and use Indian made goods. The movement saw the development of the Indian textile industry,
the iron & steel industry by the Tatas, publishing of vernacular newspapers, setting up of vernacular
medium educational institutions, financial institutions etc. However, post-independence the policy focus
of increased public investment in heavy industries and setting up of PSUs did not provide an ideal
environment for entrepreneurship. The main problems faced by an entrepreneur were lack of mentoring
facilities, technology support or easy availability of credit. Though different Reports on employment
highlighted the need for promoting entrepreneurship as means of self-employment, entrepreneurship
did not scale up. To mention a few, in the S.P Gupta “Special Group Report on Targeting 10 million
Employment Opportunities Per Year” (2002) recommended “appropriate programs should be launched
to increase entrepreneurial capabilities and skill for self employment.”
The Montek Singh Ahluwalia “Report of the Task Force on Employment Opportunities”, July
2001 also mentions about developing entrepreneurship ability among the newly self-employed. The
Report even recommends entrepreneurship training for the informal sector. To quote, “A large part of
the employment generated by the economy will be self-employment in the informal sector. These self-
employed entrepreneurs need training of the multi-skill variety, going beyond production skills to include
marketing, finance and accounting and elementary management.
24 Perspectives of Entrepreneur’s in the New Era

The government has over time implemented policies for the promotion of the small industries
which included providing concessional credit, training in entrepreneurship development, marketing
assistance etc. But the entrepreneurial growth did not take off in a big way in India as compared to
other countries because of the procedural hassles, stringent labor laws, economic regulations etc that the
establishments had to face. Further with import liberalization and entry of MNCs into India, the Indian
small scale entrepreneurs are not able to face the competition and are finding it difficult to survive. In
this context to quote from the Second National Commission on Labor (2002) “New economic changes
will provide more opportunities and not enough jobs. Therefore, one has to take advantage of the
opportunities. Both in urban and rural areas, there may not be an impressive rise in wage employment
but there will probably be enough scope for self-employment. The emphasis, therefore, has to be not on
wage jobs but on creating self- employed persons or entrepreneurs. The entire system of training and
education will have to give emphasis on the development of entrepreneurship”.
Reasons for such growth:
In the entrepreneurial ecosystem the journey of an entrepreneur begins from conceiving an idea
to developing it into a project proposal for starting a business. The handholding is required at this stage
which is lacking. The entrepreneur is saddled with regulatory hurdles and financial blocks in moving the
startup ahead. The availability of risk capital from banks or venture capital companies is limited. Poor
infrastructure availability also increases the operational costs for the startups. To quote the National
Knowledge Commission, “50% of the entrepreneurs experienced difficulties while seeking statutory
clearances and licences. Two-thirds faced hassles while filing taxes and 60% claimed to have encountered
corruption. Another hurdle was in accessing reliable information on registration procedures, finance and
other schemes. 56% claimed that the paucity of quality infrastructure – especially transport, power, and
telecommunications – was a critical barrier.” As a result of these hurdles the proportion of closure of units
is also high at the startup stage. The entrepreneurial culture is also lacking as the institutions of learning
train students for wage employment rather than in becoming entrepreneurs. A key socio cultural factor
also pertains to social attitudes towards risk and failure. To better understand and manage risk as well as
create a supportive social environment for entrepreneurs, it is essential to remove the stigma associated
with failure.
Startups:
However, a change is being witnessed today, as quoted by Prime Minister Shri. Narendra Modi,
‘The convergence of technology, integration across diverse fields, distributed architecture and people
willing to back an idea, have opened a new world for enterprise. I see Start-ups, technology and innovation
as exciting and effective instruments for India’s transformation, and for creating jobs for our youth . For
start-ups today there are different levels of financial support that has come to provide the initial seed
capital in the form of incubators, angel funds or venture capital funds followed by private equity and
debt in that order. Between January-September 2015, Angel Funds and VCFs have invested $7.3 billion
in early stage Indian Start-ups.
India’s first generation e-commerce and mobile entrepreneurs have become angel investors which
is a sign of maturing of startup ecosystem. However, there is a danger that too many mentors/ angel
investors with little experience may lead to a situation of unsuccessful startups.
The government has also come a big way in promoting startups. The question therefore what
needs to be answered is what is a start-up? A start-up is a company that is in the first stage of its operations.
These companies are often initially bank rolled by their entrepreneurial founders as they attempt to

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Perspectives of Entrepreneur’s in the New Era 25

capitalize on developing a product or service for which they believe there is a demand. The start-up and
SMEs appear to be of the same size with limited revenues, high cost of operation, job creating but they
operate on entirely different business models. The difference between a start-up and a SME unit is that
a startup is new organization designed to search for a repeatable and scalable business model. A SME,
according to the U.S. Small Business Administration (SBA) is an “independently owned and operated,
organized for profit, and not dominant in its field.” SMEs generally sell known products to known
customers in known local markets. This startup needs an appropriate ecosystem to thrive which includes
adequate funds for startups to help them grow; government to create an environment of ease of doing
business; ready availability of essential services like office space, location, supplies telecom connectivity
etc.; and mentors to provide strategic advice.
Policies for encouraging such startups:
To simplify the regulatory framework the government introduced the Ease of Doing Business
wherein an MSME unit has to fill in a single one page self-declaration online form called Udyog Aadhaar.
The Apprentices Act, 1961 was amended to enable even the MSME units engage apprentices which
will enable the units to get trained labor as well as in turn supply skilled labor. Under the Apprentice
Protsahan Yojana, 50 percent of the stipend payable to the apprentices would be reimbursed by the
Government for the first two years which is an incentive for MSME units to take in more apprentices.
To give boost to the Make in India program, the MSME Ministry has launched the ASPIRE scheme in
March 2015, a Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship. The objective
of the scheme is to set up a network of technology and incubation centers to accelerate entrepreneurship
and also to promote start-ups for innovation and entrepreneurship in agro-industry. To ease the credit
availability requirements of startups the Government had announced the MUDRA scheme- Micro
Units Development & Refinancing Agency, operated by SIDBI for providing refinance to micro units.
This would improve the liquidity of the micro units who right now have to borrow from NBFCs and
moneylenders at high rates of interest. Atal Innovation Mission (AIM). This program operated from NITI
Aayog is about an Innovation Promotion Platform involving academics, entrepreneurs and researchers
and draw upon national and international experiences to foster a culture of innovation, R&D and
scientific research in India. The platform will promote a network of world class innovation hubs and grand
challenges for India. The overarching purpose of this mission is to promote a culture of entrepreneurship
and innovation in India.
1. Self-employment and Talent Utilization (SETU):
SETU meaning bridge in Hindi is a Techno-Financial, Incubation and Facilitation Program to
support all aspects of startup businesses and other self-employment activities, particularly in technology
driven areas operated from NITI Aayog. An Expert Committee on Innovation & Entrepreneurship for
working out the detailed contours of the Atal Innovation Mission (AIM) and SETU was constituted by
NITI Aayog. The Expert Committee has identified five major drivers for creating a vibrant entrepreneurial
eco system viz;
ŠŠ Catalytic government policy and regulatory framework
ŠŠ Easy access to equity capital and debt
ŠŠ Businesses as entrepreneurial hubs
ŠŠ Culture and institutions which encourage entrepreneurship over careerism
ŠŠ Adequate and effective collaboration forums.

ISBN: 978-93-5300-292-3 Technical Session - I

26 Perspectives of Entrepreneur’s in the New Era

2. Electronics Development Fund (EDF):

The Ministry of C&IT has launched the Electronics Development Fund (EDF) to promote
innovation, research and development, and product development in the field of semiconductors, nano-
electronics, IT and associated sectors by bringing in established companies and startups on board. The
objective is to do research, design and develop electronic products within the country for which the
startup units would be provided supportive financial assistance from the EDF.
3. Digital India (DI):
Digital India Program has been launched to provide broadband connectivity in rural and urban
areas. Introduction of digital rural connectivity would give a big boost in developing traditional rural arts,
crafts or other innovative ideas into business models.
Intellectual Property Rights-With the growing number of startups it is essential to protect one’s
products from impersonators. The startups need to go for design patents, trademarks, copyright or trade
secrets protection as the need maybe before marketing their product. India Aspiration Fund- Rs. 2000
crore India Aspiration Fund (IAF) was launched by SIDBI in August 2015 to boost the startups fund
of-funds ecosystem in the country. This fund would invest in various venture capital funds for meeting
the equity requirement of MSME start-ups. A SIDBI Make in India Loan for Small Enterprises (SMILE)
Scheme of Rs.10,000 crore has also been launched to catalyze tens of thousands of crores of equity
investment in start-ups and MSMEs, creating employment for lakhs of persons, mostly educated youth
over the next 4-5 years. The objective of SMILE is to provide soft loans in the nature of quasi-equity and
term loans on relatively soft terms to MSMEs to meet the required debt-equity ratio norm. The 25 sectors
under the ‘Make in India’ program’ would be the focus with emphasis on financing smaller enterprises in
the MSME sector. There will be concessional terms for the enterprises promoted by (SC) / (ST) / Persons
with Disabilities (PwD) and women. The scheme is expected to benefit approximately 13,000 enterprises,
with employment for nearly 2 lakh persons14. These two schemes are in addition to the Rs. 20000 crore
MUDRA scheme.
Together the three finance schemes should boost the startups as well as MSMEs already in the
transition phase and create good number of jobs in the years to come. Till date the startups have been
successful in e-commerce, and other IT based applications of service sector. The startups in manufacturing
sector are yet to take off in a big way. The launch of the above-mentioned policy initiatives should give
a boost to startups in manufacturing as well. As of 16th November 2015, 806 startups have taken off
during the year and the main sources of funding were seed funding and private equity and the products
were mainly IT based applications in the service sector15. In the Global Competitiveness Index (GCI)
2015-16 India has scored 16 points and moved up from its earlier ranking of 71 to 55 out of a total of
144 countries. Region-wise among the emerging and developing Asia India ranks sixth after Malaysia
(18), China (28), Thailand (32), Indonesia (37) and Philippines (47). India does have the potential to
move ahead of these countries. In the World Bank’s Ease of Doing Business Ranking 2015 India is placed
at 142 place out of a total of 189 economies. But on the startup front India ranks third position globally
with 4200 startups. The new initiatives in promoting startups would enable India to move up to the top
position. To conclude, a startup ecosystem has been created through the new policy initiatives which
would not only promote startups particularly in the manufacturing sector but also the micro units would
be able to graduate faster as small and medium units. If this objective is achieved the goal of job realization
through self-employment would be complete as self-employment is the answer to providing jobs to the
huge proportion of population in the economically active age group. This process would be fast tracked by

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Perspectives of Entrepreneur’s in the New Era 27

the flagship programs well supported by the Skill India Mission which would facilitate availability of right
skilled manpower as entrepreneurs complains about skill mismatch. Given that startups are emerging as
major job creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.
Environment for Startups:
Start ups cannot operate in a vacuum; they need a supporting eco-system to nurture them.
Entrepreneurs have been setting up businesses in India since kingdom come. It is no secret that these
entrepreneurs have originated from a dominant caste. How did this community sustain entrepreneurship
over the ages? The core of this eco-system is the incubation facility within the business that enabled the
next generation entrepreneur to dabble in incremental innovation, funded by angel funding drawn from
the surplus generated by the cash cow of the business. Prototypes were developed and test marketed
through access to vendors and distributors and the sales force. Timely customer feedback on the prototype
led to building the minimum viable product and the soft market launch. Business mentoring from the
experienced elders substituted for any classroom learning.
Those from non-business communities lacked the vital eco-system for creating a start up.
Education, particularly technical education, drew them as a means for joining ‘service’ and pursuing a
rising career which they considered superior to dhandha.
The two professions ran their own divergent paths with their own benchmarks for success. So
from the surnames, chances were, you could determine that Birla was, and Bhattacharya was not, in
business. Along with technology came the professional network or eco-system – with substantial support
from U S based NRIs. Truly, it was the impact of Indians in America that gave the lie to the deeply
held belief in traditional India that entrepreneurs were born – in a certain community. Indians in USA,
irrespective of their surnames, pursued knowledge based new venture creation with vigor and succeeded
with support from the eco-system. Over the past couple of decades an equivalent eco-system has been
getting in place in the country for the new age ventures starting with the well intentioned mentor and
gradually extending to growth stage investors who are the Venture Capitalists and Private Equity players,
and not excluding the markets – from U S based customers for the I T ventures right down to Tier 3 city
based consumers for the e-commerce ventures!
E-Cells in Engineering colleges have been influential in triggering awareness, interest, desire
and action toward entrepreneurship among students from non-business communities. The catalyst for
encouraging college managements to set up E-Cells was NEN, the National Entrepreneurship Network,
set up by the US based Wadhwani Foundation. NEN took roots in India through the pioneering role
played by the founding members, IIM Ahmadabad, IIT Bombay, SPJIMR, BITS Pilani and IBAB,
Bengaluru who designed and delivered courses on New Venture Creation, organized Business Plan
Competitions, and instituted E-Cells and started Incubation Centers. Over a decade plus years, the seed
sown by NEN has blossomed into a nursery of E-Cells engaged in promoting start ups at the college level.
Going beyond E-Cells, IIM A has built a reputed Center for Incubation and SPJIMR conducts public
programs on Start Your Business for aspiring entrepreneurs and Grow Your Business for early growth
stage entrepreneurs.
Besides E-Cells, the number of higher education institutions setting up incubation centers is
increasing with private players chipping in by rolling out start up accelerators. However, the paucity of
experienced mentors and domain experts restricts the effectiveness of these institutions. Entrepreneurship

ISBN: 978-93-5300-292-3 Technical Session - I

28 Perspectives of Entrepreneur’s in the New Era

is the youngest academic discipline in India, little more than a decade in existence, leading to a mis-match
between the startup entrepreneurs’ need and the availability of faculty and mentor expertise.
Is government doing anything to promote first generation entrepreneurship? Of course the primary
accountability is to considerably enhance the ‘ease of doing businesses. That apart, much is expected from
the follow up steps to the Startup India initiative launched on 16th January. In a fundamental way, the
vision for Startup India parallels that of the Green and White Revolutions, which had champions – Dr
Swaminathan and Dr Kurian - to both set the vision and execute sustainably at the grass-root level.
So now India generates entrepreneurs from all communities, whether first generation entrepreneurs
from non-business communities or next generation members from traditional family businesses. Truly
a remarkable feat achieved in less than 3 decades! Just as the radically transformed attitude towards
new venture creation of an IIT or IIM equipped Tamilian Brahmin draws appreciation, so does the
metamorphosis of a youngster into an IIT and or IIM equipped entrepreneur elicit praise.
Today’s new economy entrepreneurs and their ventures differ from the ‘old economy’ entrepreneurs
and their businesses in several respects.
If asset heavy manufacturing and conventional service businesses characterized by incremental
improvements in technology defined the old economy, asset light, online based new service ventures
characterized by rapidly changing technology represent the new economy.
In place of family based management teams, the co-founders of the new ventures are ‘merit’
based, bringing in specific complimentary skills. Often, the founding team can be traced to the college
dorm where you can assess both competence and compatibility. The skill set required for such ventures
are domain and execution-under-pressure, skills.
Ten per cent annual business growth has been substituted by ten per cent monthly growth.
New generation entrepreneurs do not build ventures for life-long association. They are reconciled
to winding up when the funding dries up and to exiting from their own venture for business and personal
reasons.
The worth of the conventional businesses was based on hard assets, the worth of new age ventures
is based on intangible valuation which cannot be mortgaged but can be bartered for equity capital. Till
recently, business operated on the ‘cost plus margin’ business model. This suited manufacturing and trading
companies with owned assets generating steady growth that is fundable by customer revenues and bank
borrowings. Today’s ventures have innovative business models with radically different pricing strategies
for products or services being offered. Business is funded by raising risk capital based on projections of
‘hockey stick’ product/service growth, while piling up huge losses. Such business model innovations aim
to jack up volumes to a level that will ensure business viability at scale in the shortest time possible.
Traditional family business owners accord the highest importance to retaining 100% equity
ownership. Loss of ownership is equated with loss of control over the business. The current entrepreneurial
generation does not conform to this mind set. Authority is not linked with owner ship, effectiveness is the
critical factor since rapid growth is the mantra. The founders see themselves as CEO/CXOs accountable to
customers and investors who have a significant equity share holding. Besides, they understand that, with
valuation inflated through equity dilution a small chunk of a divested pie is bigger than the ownership of
the whole pie.
Leadership is related to pursuing a shifting goal post, effective decision making, grasp of domain
technology and team building, not with age and past achievements in a slow paced environment. New
ventures are built with charged teams working together to create a sustainable venture in the shortest
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Perspectives of Entrepreneur’s in the New Era 29

time. Team members remain as long as they perceive the goal is being achieved. Leadership is by consent
and through demonstration of competence in action.
Lacunae in the leadership required for steering expanding- on -steroids, billion dollar valued
start ups as dictated by competition and investors, in a VUCA (volatile, uncertain, complex, ambiguous)
environment is the critical failure factor today. Spanning the enterprise life cycle from ‘garage’ to ‘global’
level, or from zero to billions of dollars of GMV (Gross Merchandise Value) in less than a decade bears no
comparison to traditional SME growth to under Rs 20 cores in the same time span. To chase the mirage
of valuation or the reality of profits is the existential issue facing today’s entrepreneurs.
As India begins a new year, media coverage of the entrepreneurial eco-system, is not all rosy.
Entrepreneurs have begun to face the reality of being abandoned by risk funds, of the managerial
challenges of scaling up the start up to Business Plan projections, of pursuing growth that enables the
venture to capture value over valuation.
Can an entrepreneur whose venture carries a unicorn valuation with negative returns and is
owned majorly by foreign investors who are not above (or below?) exiting the founder or themselves from
the venture, be the inspiration for our youth to take to new venture creation? Can the nation evolve
an indigenous model of entrepreneurship that combines frugal innovation with customer traction and
equity dilution with profitable growth?
Statistics are available on the amount of equity capital invested in new ventures but not on the
investment in sunk or failed ventures. Point to ponder if India should evolve a more capital efficient
method of creating entrepreneurs.
In recent years, the Indian startup ecosystem has really taken off and come into its own—driven by
factors such as massive funding, consolidation activities, evolving technology and a burgeoning domestic
market. The numbers are telling—from 3,100 startups in 2014 to a projection of more than 11,500 by
2020, this is certainly not a passing trend. It’s a revolution. And it’s going to change the way the markets
are working today in India.
In this story, I’m going to highlight some key aspects of the Indian startup ecosystem and
underline the steps needed to make the environment more conducive for it. Starting with some of the
most disruptive startups, we’ll go on to explore how they raised their recent funding. Next, we’ll take
a look at the investment trends, escalating M&A activity, and the key enablers who are fostering this
growth.
Startups in India have given rise to more startups. Enablers, accelerators, and incubators are firms
providing startups with growth advice and decision-making tools. From advising on government policies
to act as market catalysts, they grow the maturity of young ventures.
Conclusion:
After liberalization and Globalization various initiatives, policies have been introduced in India,
create a pace to entrepreneurship/ self employment. Such policies and initiatives have created a platform
for rise of many start ups by individuals. This can be accounted for as a positive impact on economy of
India, since start ups are very vital for the growth of a developing country like India. Environment should
be friendlier for investors and promoters to start companies since privatization also plays a dominant role
in development of economy.
References:
yy Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015, San Jose, California).
yy ‘Young Entrepreneurs turn Angels for Younger Startups’, Times of India, June 30, 2014.

ISBN: 978-93-5300-292-3 Technical Session - I

 Role of Government in Entrepreneurship Development
*O. Naresh, ** Dr. J. Revathy,
*Research Scholar, Dept. of Commerce & Business Administration,
Acharya Nagarjuna University, Nagarjuna Nagar, India. Email: [email protected]
** Principal Associate Professor, PG Department of Commerce & Management Studies
VRS & YRN College, Chirala, Andhra Pradesh, India Email: [email protected]

Abstract: In recent decades, economic growth in countries around the world has become increasingly dependent on
the dynamism of Entrepreneurship. This is especially important in the transition economies. The creation of a new SME
sector in India as a transition country may play an important role in the process of economic regeneration and job creation.
The paper sets out an approach to analyzing the development of Business Entrepreneurs in India. We have focused on
(i) attitudes of entrepreneurs in the private sector towards the role of government in Entrepreneurship development
through provision of assistance to Entrepreneurs in India, (ii) the business environment in which firms operate, and
(iii) attitudes of the employed in government sector towards the role of government in SME development through the
provision of assistance to SMEs in India. The paper reviews the literature on these three approaches and available
evidence on relevance to understanding the performance of SMEs as main agents of entrepreneurship in the India.
Key words: Entrepreneurship, Development of Indian Economy, Government schemes.
 
Introduction:
It is reported in entrepreneurship literature that several variants of definition of entrepreneurship
concept exist for the reason that entrepreneurship epitomizes a complex phenomenon, being examined
as a process, a resource or a state-of-being. In line with this, researchers classify entrepreneurship into
three main groups. The groups are behavioral definitions occupational definitions synthesis definitions.
This study will adopt the behavioral definition of Schumpeter. Schumpeter , defined entrepreneurship,
as making new combinations which include the introduction of new goods, new methods of production,
opening of new markets, new sources of supply and new organizations. The importance of entrepreneurship
development in several economies globally cannot be overemphasized; as such majority of countries
worldwide have established programmes to support entrepreneurship within their communities. One of
the support schemes that spur entrepreneurship development is the business incubator and the policy tool
to achieve this is the business incubation initiative.
Economic development has been defined by as the method of creating wealth by the gathering
of human, financial, capital, physical and natural resources to produce marketable goods and services.
Rice and Matthews reported that the main goal of business incubation initiative is entrepreneurship
development. In other words an incubator’s main goal is to produce successful firms that will leave
the programme financially viable and freestanding. Business incubators within such programmes serve
as places where entrepreneurs receive value-added support and access to critical tools, information,
education, contacts, capital, and other resources that may otherwise be unaffordable, inaccessible, or
unknown to them. These resources can be made available by a responsive government to fill gaps that
have been identified in entrepreneurship support activities stated that economic development is one of
the objectives that drive each incubator.
Other studies in entrepreneurship and economic development have focused on the role of
government as the lead entity in the entrepreneurial development study. Thus, this study fills the gap
by proposing a study where government policy moderates the relationship between entrepreneurship
and economic development. Against this backdrop, this study seeks to identify the salient role of
government enactment towards entrepreneurship in particular and the importance attached to the other
Role of Government in Entrepreneurship Development 31

factors of production in general. In the context of this study, three variables will be studied. They include
entrepreneurship which includes start-up motive,
Creativity and innovativeness and risk taking. The second variable is the economic development
which is composed of job creation, SME development and Wealth creation. The third variable is
government policy which consists of policy implementation, supportive government policies and
government funding. In this paper we seek to contribute to the entrepreneurship literature. Specifically,
this paper aims at examining the importance of government policy in the entrepreneurial development.
Objectives of the Study:
ŠŠ To Study the Role of government in providing the subsidiaries to Entrepreneurs.
ŠŠ To determine the Entrepreneurship development through government schemes in Entrepreneurship
training institutions.
ŠŠ To examine the role of Entrepreneurship in Economic development of the nation.
Research Methodology:
The study is fully based on Secondary data source from various Entrtrepreneural organizations,
journals, research papers and magazines etc. To be used for this study.
Review of Literature
It has been established that entrepreneurship is a very vital ingredient for job creation as well as
economic development as the success of income generation for the major group of both rural and urban
inhabitants without recognized paid job highly depends on entrepreneurship. The relationship between
entrepreneurship and economic development has been studied extensively both at the local, state and
federal levels. Kumar and Liu study reveal that entrepreneurial sector contribution to employment and
GDP is on the increase. For this reason suggested that governments should minimize the constraints
on entrepreneurship. In the case of government support policies, it is assumed that since government
is in the lead for entrepreneurial development, it should provide the much needed resources within its
capability. Such resources include provision of environment conducive to business that will highly promote
entrepreneurship. Government policy in this contexts any course of action which aims at regulating and
improving the conditions of SMEs in terms of supportive, implementation and funding policies by
the government. Based on this definition, government policy as it relates to entrepreneurial practice is
targeted at encouraging entrepreneurship by making a favorable environment for the entrepreneurs. This,
it does through enactment of guidelines that will regulate entrepreneurial activity generally for the reason
that entrepreneurship is the bedrock of a nation’s path to industrialization. Furthermore, government
needs to enact policies that would be user friendly to the entrepreneurs. Pals argued that there is a need
for government policies as they relate to entrepreneurship to be successfully implemented irrespective of
which administration is in power in order to achieve the goals of the guideline which often times is always
lacking. Government of most countries especially developing countries have in the past invested so much
efforts and resources in establishing policies intended to uplift entrepreneurship . Cases in point are in
China, Brazil, Saudi Arabia, Malaysia and Nigeria. The Chinese government has made concerted efforts
through policies and resources on the development of high technology businesses.
Role of Government in Providing the Subsidiaries to the Entrepreneurs.
The entrepreneurs and their dreams that create economic opportunity for cities, regions and
countries. So, what can governments do to support and encourage innovation development from
entrepreneurs?

ISBN: 978-93-5300-292-3 Technical Session - I

32 Role of Government in Entrepreneurship Development

ŠŠ Create incentives for risk capital. Establish policies (e.g. reduced capital gains taxes) and programs
(e.g. matching funding with the private sector such as the SBIR from the US government) to
ensure the availability of risk capital.
ŠŠ Establish incentives for small and large businesses to co-innovate together. Create a tax and
IP incentive for large businesses to invest, partner and support the innovations created by small
businesses.
ŠŠ Encourage entrepreneurs to invest in R&D. Eliminate the negative incentives such as the US
governments AMT that wipes out any R&D tax credit for most small businesses.
ŠŠ Build leverage into innovation programs. Establish incentives (reduced red tape, special
infrastructure investment, hiring and training incentives, etc) to invest in common areas thereby
creating an ecosystem of participants (university, investors, and entrepreneurs.
Government Subsidiaries In Various Activities:
ŠŠ Investment subsidy:
ŠŠ Reimbursement of Stamp duty, Transfer duty, Mortgage & Hypothecation duty
ŠŠ Reimbursement of land cost in Industrial Estates/Industrial Development Authority/Industrial
Parks (IE/IDA/IPs)
ŠŠ Reimbursement of land conversion charges
ŠŠ Reimbursement of Tax:
ŠŠ Tax on end product/intermediate product
ŠŠ Reimbursement of power consumption charges.
ŠŠ Reimbursement of Interest Subsidy.
ŠŠ Seed Capital Assistance
ŠŠ Reimbursement of expenses incurred for Quality Certification/Patent Registration
ŠŠ Incentives for Swachh Andhra
ŠŠ Reimbursement of cost involved in skill up gradation and training
ŠŠ Textile industry
ŠŠ Marketing incentives
ŠŠ Reimbursement of Transportation charges
ŠŠ Special Incentives for Biotechnology Units
ŠŠ Guidelines for SCSP/TSP schemes and B.C. Entrepreneurs
ŠŠ Service Sector projects by the SC/ST entrepreneurs as listed at Annexure- III
Proposed Scheme on Entrepreneurship Development in India:
An entrepreneurship development scheme is currently being developed by Ministry of Skill
Development and Entrepreneurship. The scheme will be designed around the following major elements:
1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Approved for another four years (2016-2020) to benefit 10 million youth Pradhan Mantri Kaushal
Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship
(MSDE).

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Government in Entrepreneurship Development 33

2. UDAAN:
UDAAN is a Special Industry Initiative for Jammu & Kashmir in the nature of partnership
between the corporate of India and Ministry of Home Affairs and implemented by National Skill
Development Corporation. The programme aims to provide skills training and enhance the employability
of unemployed youth of J&K. The Scheme covers graduates, post graduates and three year engineering
diploma holders.
3. Standard Training Assessment and Reward (STAR) Scheme:
The National Skill Certification and Monetary Reward Scheme, known as STAR (Standard
Training Assessment and Reward), was operational between August 2013 and September 2014.
Schools
Expected No
State/Board (In 2014- Sectors
2014-15
15)
Auto, Healthcare, Retail, Security, IT-ITeS, Beauty and
Haryana 240 23,000
Wellness and Sports
Himachal
200 Auto, Healthcare, Retail, Security, IT-ITeS, Agriculture 18,000
Pradesh
Uttarakhand 44 Auto, Healthcare, Retail, IT-ITeS 5,000
Madhya Pradesh 50 Auto, IT-ITeS 2,500
Punjab 100 Auto, Retail, IT/ITES, Security, B&W and Healthcare 5,000
Automotive, Gems &Jewelry, Healthcare, Travel &
Rajasthan 70 3,500
Tourism and Beauty & Wellness
Maharashtra 350 Auto, Healthcare, IT-ITeS, Construction, Capital Goods 15,000
Nagaland 6 IT-ITeS 300
Karnataka 100 Auto, Healthcare, IT-ITeS, Retail 15,000
Chhattisgarh 30 Automotive, Retail and IT-ITES 2,000
ŠŠ Educate and equip potential and early stage entrepreneurs across India:
ŠŠ Connect entrepreneurs to peers, mentors, incubators:
ŠŠ Support entrepreneurs through Entrepreneurship Hubs (E-Hubs):
ŠŠ Catalyses a culture shift to encourage entrepreneurship:
ŠŠ Encourage entrepreneurship among underrepresented groups:
ŠŠ Promote Entrepreneurship amongst Women:
ŠŠ Foster social entrepreneurship and grassroots innovations:
16th Youth’s (2017) Profile as Respondents of Primary Survey, Andhra Pradesh
16th Youth’s Profile In , Andhra Pradesh(2017)
Trainees 33%
Employed 17%
Self employed 19%
Unemployed 31%
(Source: A survey of National Skill Development Centre).

ISBN: 978-93-5300-292-3 Technical Session - I

34 Role of Government in Entrepreneurship Development

List of Supporting Institutions to Entrepreneurship Development

35%

30%

25%

20%

15%

10%

5%

0%
Trainees Employed Self Employed Unemployed

ŠŠ National Institute for Entrepreneurship and Small Business Development (NIESBUD)

ŠŠ National skill development centers (NSDC)
ŠŠ Micro small medium enterprises (NSIC)
ŠŠ District industry centers (DIC)
ŠŠ Entrepreneurship Development Institute of India(EDII)
The Role of Entrepreneurship in Economic Development of the Nation
The important role that entrepreneurship plays in the economic development of an economy can
now be put in a more systematic and orderly manner as follows:
ŠŠ Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
ŠŠ It provides immediate large-scale employment. Thus, it helps reduce the unemployment problem
in the country, i.e., the root of all socioeconomic problems.
ŠŠ It promotes balanced regional development.
ŠŠ It helps reduce the concentration of economic power.
ŠŠ It stimulates the equitable redistribution of wealth, income and even political power in the interest
of the country.
ŠŠ It encourages effective resource mobilization of capital and skill which might otherwise remain
unutilized and idle.
ŠŠ It also induces backward and forward linkages which stimulate the process of economic
development in the country.
Conclusion
The main role which should played by the government is to do things which are not presently
done by any other bodies. The most important development in the post independence period has been the
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Government in Entrepreneurship Development 35

growth of number of key institutions to promote, assist and develop entrepreneurs to initiate industrial
growth in the country, the country has laid a strong foundation broad based its infrastructure and provide
much needed support & assistance
Reference:
yy Science Journal of Business and Management2014; 2(4): 109-115Published online September 30, 2014 (http://www.
sciencepublishinggroup.com/j/sjbm) doi: 10.11648/j.sjbm.20140204.12 ISSN: 2331-0626 (Print); ISSN: 2331-0634 (Online)
yy Toma, S.-G., Grigore, A.-M., and Marinescu, P.Economic Development and Entrepreneurship. Procedia Economics and Finance,
2014. 8: p. 436-443.
yy Naudé, W.A., Entrepreneurship and economic development: Theory, evidence and policy. 2013, IZA Discussion Paper.

ISBN: 978-93-5300-292-3 Technical Session - I

 The Role of Government in Promoting Entrepreneurship
*Dr. A. Kanaka Durga, **Immaniyelu Yepuri
*Assistant Professor, **Research Scholar, Dept. of Commerce & Business Administration
Acharya Nagarjuna University, Guntur - 522510.

Abstract: Entrepreneurial activity involves identifying opportunities within the economic system. Entrepreneurship is
dynamic process. Entrepreneurship plays a crucial role in the growth and development of economic system of society. In spite of
having a large publicly funded science and technology infrastructure and a sizeable education base, India has not been able to
realize its innovative potential due to a fragmented innovation ecosystem. The government of India has taken many initiatives
towards strengthening the innovation ecosystem, the most important of which are: i) the establishment of the National
Innovation Council, whose mandate is to coordinate various innovation-related activities, and ii) the new Science, Technology
and Innovation Policy 2013, which is intended to promote entrepreneurship and science-led solutions for sustainable and
inclusive growth. Government support is a prerequisite for development of entrepreneurship among entrepreneurs. Government
of India is promoting this cause through various schemes such as Technical Assistance, Supply of Machinery and Equipment,
etc. The Department of Small-Scale Industries and Agro and Rural industries was created in 1991, in the Ministry of Industry
to exclusively formulate the policy framework for promoting and developing small-scale industries in the country. No doubt,
the Government has been introducing various self-employment generating schemes in order to generate employment but still it
is seen that entrepreneurial activities in some areas of the country is not satisfactory. Hence, there is an acute need to study the
role of Government in promotion and growth of entrepreneurship. The present study is a modest attempt to study on the Role
of Government in Developing Entrepreneurship.

Introduction:
Many developing countries like India has been facing the problem of rapid growth of population
on the one hand and increasing unemployment on the other hand. In order to promote economic
development, these countries have been spending huge amount of money in different sectors including
education. The Government has been launching number of entrepreneurship development programmes
/ schemes and as such have established various promotion and support organizations like Indian
Institute of Entrepreneurship (IIE), North Eastern Industrial and Technical Consultancy Organizations
(NIETCO), Khadi and Village Industries Commission (KVIC) etc. for entrepreneurship development
in the country. The Government has been providing various types of incentives in the form of subsidy
relating to investment, research and development, taxes, resources, export/import, excise duty exemption
etc. various assistance in different forms, viz.-technical assistance, cash assistance, assistance for obtaining
raw materials, marketing assistance etc., providing training through entrepreneurship development
programmes and providing infrastructural facilities to the entrepreneurs in the country.
Objectives of the Study:
ŠŠ To understand the concept of entrepreneurship
ŠŠ To study various entrepreneurship development programmes
ŠŠ To look into Government policies to micro, small and medium enterprises
ŠŠ To offer suggestions for further improvements
Meaning and Definition of Entrepreneurship:
Entrepreneurship is the capacity and willingness to develop, organize and manage a business
venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship
is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural
resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-
The Role of Government in Promoting Entrepreneurship 37

taking, and is an essential part of a nation’s ability to succeed in an ever changing and increasingly
competitive global marketplace.
Richard Cantillon defined entrepreneurship as “self-employment of any sort. Entrepreneurs buy
at certain prices in the present and sell at uncertain prices in the future. The entrepreneur is a bearer of
uncertainty”.
The Entrepreneurship Center at Miami University of Ohio has an interesting definition of
entrepreneurship: “Entrepreneurship is the process of identifying, developing, and bringing a vision to
life. The vision may be an innovative idea, an opportunity, or simply a better way to do something.
The end result of this process is the creation of a new venture, formed under conditions of risk and
considerable uncertainty.”
An entrepreneur has been defined as, “a person who starts, organizes and manages any enterprise,
especially a business, usually with considerable initiative and risk; running a small business with all the
risk and reward of any given business process”. Entrepreneurs tend to be good at perceiving new business
opportunities and they often exhibit positive biases in their perception (i.e., a bias towards finding new
possibilities and seeing unmet market needs) and a pro-risk-taking attitude that makes them more likely
to exploit the opportunity. An entrepreneur may be in control of a commercial undertaking, directing
the factors of production – the human, financial and material resources – that are required to exploit a
business opportunity. Entrepreneurs act as managers and oversee the launch and growth of an enterprise.
Entrepreneurship is the process by which either an individual or a team identifies a business opportunity
and acquires and deploys the necessary resources required for its exploitation.
Joseph Schumpeter (1934); The entrepreneur is the innovator who implements change within
markets through the carrying out of new combinations. The carrying out of new combinations can take
several forms; 1) the introduction of a new good or quality thereof, 2) the introduction of a new method
of production, 3) the opening of a new market, 4) the conquest of a new source of supply of new materials
or parts, 5) the carrying out of the new organization of any industry.
Jean Baptiste Say (1816); The entrepreneur is the agent “who unites all means of production and
who finds in the value of the products...the reestablishment of the entire capital he employs, and the value
of the wages, the interest, and rent which he pays, as well as profits belonging to himself.”
Harvey Leibenstein (1979); the entrepreneur fills market deficiencies through input-completing
activities. Entrepreneurship involves “activities necessary to create or carry on an enterprise where not all
markets are well established or clearly defined and/or in which relevant parts of the production function
are not completely known.
Role of Government in Promoting Entrepreneurship:
India is a country with over 1.2 billion people, 379 million (31%) of which are between the ages
of 18 and 35 (Census of India, 2011). And, many of these young people are in search of jobs, despite
being educated. For example, only one in every four urban males under 29 years is employed even
though they hold at least a certificate or diploma (National Sample Survey Office, 2013). The aim of the
government has been to create employment opportunities for youth while focusing on rapid economic
growth. Entrepreneurship development is one of the mechanisms adopted by the Government of India
towards the creation of job opportunities. The government’s assumption is that support for innovation
will enhance entrepreneurship development, which will in turn accelerate economic growth.

ISBN: 978-93-5300-292-3 Technical Session - I

38 The Role of Government in Promoting Entrepreneurship

The Government has established number of institutions to implement various entrepreneurship

development programmes / schemes launched within the frame work of five year plan and provided
support facilities to the entrepreneurs in the form of various types of assistances and incentives. In fact,
both the Government and various industrial promotion and support institutions have been making
considerable efforts to facilitate the process of emergence of entrepreneurs for setting up of enterprises in
different field of activity.
The India Inclusive Innovation Fund is designed to “combine innovation and dynamism of
enterprises to solve the problems of the bottom of the pyramid in India” (National Innovation Council,
2014). The initial investment of INR 500 crores is slated to expand 10 times. The government contributed
20% of the fund, and the rest came from financial institutions, insurance companies, multilateral/
bilateral development agencies, and Indian and global corporations. The life of the fund is nine years, and
it is focusing on health care, food and nutrition, agriculture, education energy, financial inclusion, and
environment technology, among other areas.
Government always has a very vital role in the promotion of entrepreneurship. This is a key
objective of Government now since employment opportunities are limited and encouraging entrepreneurs
and entrepreneurship not only creates additional employment but also limits the burden of Government.
The government agencies promote entrepreneurship through different institutions which have been set
up to fulfill this objective.
Ministry of MSME is implementing the entrepreneurship development and skill upgradation
schemes through appropriate training facilities. The Ministry has set up three national level Entrepreneurship
Development Institutes viz., National Institute for Micro, Small and Medium Enterprises (NI-MSME)
(1960) at Hyderabad, The National Institute for Entrepreneurship and Small Business Development
(NIESBUD) (1983) at Noida (Uttar Pradesh), and Indian Institute of Entrepreneurship (IIE) (1993) at
Guwahati, to inculcate entrepreneurial culture especially among the first generation entrepreneurs. There
is the scheme for Providing Support for “Entrepreneurial and Managerial Development of SMEs through
Incubators” in implementation since 2008. There is the MSME Technology Centres (earlier Tool Room
& Technology Development Centres) which provide high end skill training to the youth. A national
award scheme has been initiated by MSME for outstanding performance in Entrepreneurship, Research
and Development, Innovation, Lean Manufacturing Techniques and Quality Products.
Government accords the highest preference to development of MSME by framing and
implementing suitable policies and promotional schemes. It is the apex body for assisting the Government
in formulating, coordinating, implementing and monitoring policies and programmes for micro, small and
medium enterprises (MSMEs) in the country. MSME-DO provides a comprehensive range of common
facilities, technology support services, marketing assistance, entrepreneurial development support, etc.
Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate
infrastructure, special schemes have been designed for specific purposes like quality upgradation, common
facilities, entrepreneurship development and consultancy services at nominal charges. Government of
India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO
9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case.
ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production
technique as decided by the entrepreneur himself. This facilitates achievement of desired level of quality
while keeping check on production process and management of the enterprise.
Focus will also be placed on encouraging women entrepreneurs through appropriate incentives
for women owned businesses under the public procurement process. It will also be ensured that gender
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
The Role of Government in Promoting Entrepreneurship 39

neutral incubation/ accelerator, network of mentors, industry, resource centres and credit institutes are
developed to facilitate Women Entrepreneurs. Priority will be given for mentorship and support system
for women entrepreneurs in existing business centres and incubators. Steps will also be taken to assemble
gender disaggregated data.
The problem of unemployment is a matter of great concern for any underdeveloped or a developing
country. In India, the unemployment rate has been increasing over the years. The increasing number of
job seekers in the Live Registers of different Employment Exchanges of the country signifies the alarming
rate of unemployment problem. To promote self-employment as a means of job-creation and to promote
entrepreneurship for further job creation, the Micro, Small and Medium Enterprises (MSME) Act, 2006
was enacted to facilitate the promotion, development and enhancing the competitiveness of micro, small
and medium enterprises. Earlier to that the small scale industries (SSIs) were regulated by two sections of
the Industries (Development & Regulation) Act, 1951 which led to absence of an institutional regulatory
and consultative mechanism to capture and guide the progress of an SSI unit from being a micro unit to
a small scale and eventually to medium scale one. The earlier Act also excluded the fast emerging service
sector. But even after the implementation of the MSME Act, 2006 the high proportion of unregistered
MSME units outside the purview of the Act is a matter of concern.
Besides, several schemes and programmes have been undertaken by the Government with the
aim of facilitating access to adequate credit from financial institutions; funds for technology upgradation
and modernisation; integrated infrastructural facilities; modern testing facilities and quality certification
laboratories; modern management practices, entrepreneurship development and skill up gradation
through appropriate training facilities; etc. The schemes so announced include i. Tax Holiday Scheme
ii. Composite Loan Scheme iii. Industrial Estate Scheme iv. Scheme for International Cooperation v.
Scheme of Surveys, Studies and Policy Research vi. Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) vii.Scheme of Product Development, Design Intervention and Packaging (PRODIP)
viii. Scheme of Khadi Karigar Janashree Bima Yojana for Khadi Artisans ix. Scheme of Interest Subsidy
Eligibility Certification (ISEC).
A startup ecosystem has been created through the new policy initiatives which would not only
promote startups particularly in the manufacturing sector but also the micro units would be able to
graduate faster as small and medium units. If this objective is achieved the goal of job realization through
self-employment would be complete as self-employment is the answer to providing jobs to the huge
proportion of population in the economically active age group. This process would be fast tracked by the
flagship programmes well supported by the Skill India Mission which would facilitate availability of right
skilled manpower as entrepreneurs complains about skill mismatch. Given that startups are emerging as
major job creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.
Suggestions:
ŠŠ The success of any Government sponsored programme/scheme depends very much upon proper
coordination between the Government officials and the officials of lending institutions but many
times it is seen that the outlook and approach of both are dissimilar. Thus, there is a need for
building up such an environment in which both the Government officials and the officials of the
lending institutions can play their role effectively and with proper coordination with each other.

ISBN: 978-93-5300-292-3 Technical Session - I

40 The Role of Government in Promoting Entrepreneurship

ŠŠ Efforts should be made by the government to channel funds to small businesses towards their
development. This can be done by compelling banks to set aside certain percentage of their credit
distribution for lending to small businesses.
ŠŠ Both the Central and the State Governments should take adequate steps to disseminate
information to the entrepreneurs about its policies, incentives, schemes, programmes etc. relating
to enterprises. Moreover, the Government should organize re-orientation programmes, workshops
and seminars at district level in order to provide latest information on different entrepreneurial
activities and as such ensure people’s participation.
ŠŠ Government should establish more agencies meant to grant small scale businesses credit facilities
as well as financial and technical advice.
ŠŠ The Government institutions/departments under any Government sponsored programme /
scheme should select such activities which have sufficient potentialities for development rather
than selecting the stereo-type activities in the area where the scheme is implemented.
ŠŠ The Government should make arrangements to develop and provide all types of infrastructural
facilities to the entrepreneurs through policy resolution and various institutions.
ŠŠ The Government as a facilitator should motivate and provide proper training on different aspects
like research and extension, credit facilities, quality control, marketing facilities etc.
ŠŠ The Government should ensure such type of credit flow system which is free from political
influence or recommendation from higher authority.
ŠŠ Availability of good markets for goods and services is the first and foremost requirement of
an enterprise. Therefore, the Government should take efforts to provide such services to the
entrepreneurs.
ŠŠ The entrepreneur should try to develop a positive work culture by identifying the task, maintaining
punctuality and discipline in their enterprises.
Conclusion:
Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more about
overcoming barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship is one of the
important segments of economic growth. Innovation is a key factor that an entrepreneur brings in an
overall change through innovation for the maximum social good. However, the investments in science,
technology, and innovation are not yet translating into the desired reality. Realizing that the innovation-
led entrepreneurship development holds promise for growth, the government should take major policy
initiatives with a strong innovation agenda.
References:
yy T.Swetha, Dr. K. Venugopal Rao, Entrepreneurship in India, International Journal of Social Science & Interdisciplinary Research,
Vol. 2 (7), July 2013
yy Ravindra Abhyankar, The Government of India’s Role in Promoting Innovation, Technology Innovation Management Review, August
2014
yy Nkem Okpa Obaji1, Mercy Uche Olugu, The role of government policy in entrepreneurship development, Science Journal of Business
and Management Vol. 2, No. 4, 2014
yy Adeusi S.O., Aluko O.A., Assessing the Role of Government in Promoting Small Scale Businesses in Kogi State: The Kabba/Bunu
Experience, IOSR Journal of Business and Management (IOSR-JBM)
yy Amit, Entrepreneurship Development in India: Role of Economic Growth, Foreign Investment and Financial Development, AIMA
Journal of Management & Research, Volume 8 Issue 3/4, August 2014,
yy Sunita Sanghi & A. Srija, Entrepreneurship Development in India - The Focus on Start-ups, Laghu Udyog Samachar, January, 2016

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Entrepreneurship Development in Economic Development
Y. Srinivasa Rao,
Head of the Department, Department of Commerce, V.R.S. & Y.R.N. College, Chirala.
Abstract:-In developing countries, there is no paucity of ideas, but there is real scarcity of men with the right blend of
vision and practical sense to groom themselves as successful entrepreneurs. An entrepreneur is a kingpin in every economy.
Industrialization is indeed bedrock over which spectacular economic and social transformation always banks upon
in developing countries. In the event of failure of an agriculture sector to sustain the burden of ever increasing
population in developing country like India, the rapid progress on industrialization front becomes need of the hour.
Therefore, role played by the industrialization in developing countries for accelerating economic growth is much more
pronounced. Ever since entrepreneurship has been acknowledged as an engine of growth governments of developing countries
are leaving no stone unturned to create entrepreneur - friendly environment towards fostering vibrant entrepreneurial base in
India. Competitive advantage of every country emanates from strong entrepreneurial base. In the face of slew of road blocks to
entrepreneurship development the sincere attempt has been made in this paper to throw a light on various impediments which
inhibit the growth of entrepreneurship in India.

Introduction:-
Entrepreneur, is a person who discovers new ideas and business opportunities, bring together
funds to establish a business, organizes its operations to provide economic goods and services for public.
By and large, entrepreneurs are found in every economic system and in every form of economic activity
and in other social and cultural activities. Role of entrepreneurs in the economic development varies from
economy to economy depending upon its material resources, industrial climate and government policy
towards growth of entrepreneurs. Entrepreneur’s contribution to economic growth is relatively higher in
favorable conditions than in less favorable conditions.
Entrepreneurship is indeed barometer of overall economic, social and industrial growth and it
brings about revolutionary changes in society. It highly contributes to remarkable social transformation
marked by increase in employment generation and increase in economic conditions of people.
Entrepreneur is a king pin in every economy. Entrepreneur is an opportunity seeker. He is also the
organizer and co-ordinater of the agents of production. He not only pursues opportunities but also
mobiles other resources like 5 MS – Men, money, machines, materials and methods.
Entrepreneurship is the propensity of mind to take calculated risk with confidence to achieve
a predetermined business objectives. The need for expected growth of entrepreneurial class has been
recognized in the light of objectives to be attained such as creation of employment opportunities,
development of backward and tribal areas, improvement in the standard of living of the weaker and
vulnerable sections of the society, dispersal of economic activities and high rate of economic growth.
Objectives of the Study:-
ŠŠ To identify the lacuna in entrepreneurship development.
ŠŠ To make an objective examination of impact of entrepreneurship an economic development.
ŠŠ To analyze the stumbling blocks which hamper entrepreneurship development.
ŠŠ To examine the opportunities available for entrepreneurship development.
Methodology:-
The information required for preparing this paper has been gathered from secondary sources such
as magazines, journals, research studies.
42 Role of Entrepreneurship Development in Economic Development

Literature review:-
Having gone through the available literature on entrepreneurship, systematic attempt has been
made in this paper to present a holistic coverage about entrepreneurship landscape in India. Several
studies on entrepreneurship, Industrial policy statements, Five year Plans, National and International
Organizations form an important part of literature on which the present study has banked upon.
History or entrepreneurship:
History of entrepreneurship can be traced back to 60s when entrepreneurs hailed from mercantile
background. Traditionally Trading castes such as Hindus and Jain Brahmins of Gujarat were forerunners
as main springs of entrepreneurship. Naidus of south, patels of Gujarat, Kayasthas of West Bengal,
Khatris and aroras of Punjab showed legacy to the future generation entrepreneurship. First generation
entrepreneurs came from non-business community. Next generation entrepreneurs came from traditional
family businesses.
The Crucial role played by entrepreneurs in western countries made people of developing
countries conscious of the significance of entrepreneurship for economic development. Importance of
Entrepreneurship development has been recognized a long time back. It was as early as 1950 that the need
for entrepreneurial development was first felt. Entrepreneurship has developed along with civilization.
Entrepreneurship in Pre – Independence Period:
Growth of entrepreneurship in India was negligible and slow. It was plagued by several obstacles.
Since the environment for entrepreneurship in India in Pre – Independence Period was unfavorable,
entrepreneurship did not take off at that time.
Entrepreneurship in Post – Independence Period:
Growth of entrepreneurship in India was slow and inhibited by several hassles. Since 1950 a
substantial volume of study has been carried out on the different facets of entrepreneurial development
in India to accelerate the process of industrialization. The study showed that entrepreneurs are born and
they can be made. Post - planning period witnessed phenomenal spike in number of entrepreneurs.
Present Entrepreneurial Landscape:
Growth of entrepreneurship in post – planning period was commendable. Between 1960-1989
number of Private companies went up from 26,000 to 1, 05,200. Number of small scale units increased
from 16,000 in 1951 to 38,00,000 units by the end of 2004. New economy entrepreneurs and their
units differ from old economy entrepreneurs and their ventures.
Every growing problems triggered by the ever increasing population necessitated the need for
identifying individuals and creating entrepreneurial urge in all communities in rural areas, urban areas
among men and women motivate them to groom them entrepreneurs of tomorrow through properly
organized programmes for raising growth in agriculture, industry and service sectors through creation
of entrepreneurship development institutions. In India, entrepreneurship landscape has Undergone sea
changes in recent times. With the onset of new breed of entrepreneurs such as first generation enterprises,
women entrepreneurs and social entrepreneurs new era has started in the history of entrepreneurship in
India. First generation entrepreneurs like N.R. Narayana Murthy, Azizm Premji have made path breaking
contribution by creating numerous opportunities in technology segment and created unprecedented
wealth which enabled India to get global laurels.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship Development in Economic Development 43

Role of Several Institutions in the Entrepreneurship Development:-

Government and development financial institution are the forerunners in the realm of
entrepreneurship development. Economic liberalization has opened up new vistas for unleashing
entrepreneurial base. Opportunities for reinforcing entrepreneurial base are galore thanks to favorable
environment created by new economic policy of Government in 1991.
It is widely acknowledged that entrepreneurs can be developed through properly designed
entrepreneurship development programmes. EDPS are most sought after activities which several
organizations have embarked on in letter and spirit. Training is an important element in EDP programme.
Training should be not only to set up venture but also to enable trainee to run it successfully.
Entrepreneurs cannot be created like degree holders in a university EDPS should focus on
encouraging those who possess potential to became entrepreneurs and eliminate those who lack basic
capabilities for joining into league of entrepreneurs.
Following institutions are bound to play catalyst role towards the creation of congenial environment
for EDP in India.
ŠŠ Management development institute.
ŠŠ Entrepreneurship development institute of India.
ŠŠ Science and technology entrepreneurial parks
ŠŠ National institute for entrepreneurship and small business development.
ŠŠ National skill development centres.
ŠŠ District Industries centers.
ŠŠ Micro small Medium enterprises.
Role of Entrepreneurship Development in Economic Development:-
Economic development will remain a distant dream, when entrepreneurship development is
beset with several hassles. Following advantages to be reaped by the EDP will provide justification for
promotion of EDP.
ŠŠ Entrepreneurship development will scale up competitiveness of developing economics.
ŠŠ Grave and perennial problem of unemployment in developing countries will be mitigated through
EDP.
ŠŠ EDP results in substantial escalation in public revenue.
ŠŠ Balanced regional development will become reality through EDP.
ŠŠ It will make economy self-reliant.
ŠŠ It will undermine concentration of economic power.
ŠŠ It steps up domestic skills for reducing imports.
ŠŠ It will go a long way in stepping up capital formation.
Conclusion:-
India is no longer poor performer on entrepreneurship front. The phenomenal increase in
number of entrepreneurs since Independence bears testimony to the splendid growth of entrepreneurship
in India. Notwithstanding several impediments in the way of ED, the ED has come a long way evidenced
by the exemplary success of some men and women entrepreneurs who became embodiment of good

ISBN: 978-93-5300-292-3 Technical Session - I

44 Role of Entrepreneurship in Economic Development

entrepreneurial skills. The efforts made by government and educational institutions and financial
institutions to promote ED are laudable. In addition, economic liberalization ushered in 1991 has
provided enormous impetus to ED in India. Scores of institutions are in the process of making India
resurgent and vibrant in the realm of entrepreneurship.
References:-
yy Dynamics of entrepreneurial development and Management – Vasant Desai.
yy Naude. W.A. Entrepreneurship and economic development theory, evidence and policy 201312A discussion paper.
yy The Hindu dt. 28-08-2017.
yy The Deccan Chronicle dt.11-06-2017.
yy Mr. Sanjay Maocha, Innovation and entrepreneurship in Today’s scenario, International Journal of marketing, Financial Services and
Management Research.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Entrepreneurship in Economic Development
*Mr. B. H. Venkata Siva Krishna, ** Dr. V. Srinivasa Prasad
*Research Scholar at Acharya Nagarjuna University
**Director, V.R.S. & Y.R.N. P.G. & U.G. College, Chirala, (A.P.)

Abstract: The study tells that the entrepreneur acts as a trigger head to give spark to economic activities by his
entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in
the development of farm and service sector. Entrepreneurs are like gamblers, and like any gambler, their chances of winning
increase if they have the right cards. The role of entrepreneurship in economic development varies from economy to economy
depending upon its material resources, industrial climate and the responsiveness of the political system to the entrepreneurial
function.Path breaking offerings by entrepreneurs, in the form of new goods & services, result in new employment,
which can produce a cascading effect or virtuous circle in the economy.If we understand the benefits and drawbacks, a
balanced approach to nurturing entrepreneurship will definitely result in a positive impact on economy and society.
Key words:-Entrepreneur, Economic development, balanced regional development

Introduction
An entrepreneur can be regarded as a person who has the initiative, skill and motivation to set
up a business or enterprise of his own and who always look for high achievements. He is the catalyst for
social change and works for the common good. They look for opportunities, identifies them and seizes
them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is
always willing to undertake risks in order to achieve their goals. 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.
The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering
economic growth and development. Entrepreneurship is one of the most important input in the economic
development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by
his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a
country but also in the development of farm and service sector.
According to economist Joseph Alois Schumpeter (1883-1950), “entrepreneurs are not necessarily
motivated by profit but regard it as a standard for measuring achievement or success.”
Characteristics & Skills
Entrepreneurs are like gamblers, and like any gambler, their chances of winning increase if they
have the right cards. Let’s look at some characteristics and skills that help an entrepreneur succeed.
ŠŠ A tolerance for risk-taking is a necessary attribute for entrepreneurs. You can think of risk-taking
as pursuing an activity even if there is a chance of a negative consequence. Starting a business is
risky, and even more so when you’re using your own money. Sometimes you can spread the risk by
convincing investors to come along on your new venture or by forming an entrepreneurial team.
But at the end of the day, you can’t avoid risk if you are going to start a new business and innovate.
ŠŠ Entrepreneurs also need creativity. Think about Steve Jobs and Mark Zuckerberg; these two
entrepreneurs brought innovative products to the market that changed the way we live. Successful
entrepreneurs innovate in one of two ways. They can bring an entirely new product or service
to the market, like the first cellular phone. On the other hand, they can radically improve upon
something in a dramatic way, just like the iPhone changed the world of smart phones.
46 Role of Entrepreneurship in Economic Development

ŠŠ Initiative is also required. Entrepreneurs lead. If you are not willing to start without being pushed,
your new business will never get off the ground. For example, Eddie had an idea fresh out of
college and took the initiative to start his business venture. No one had to convince him to act;
he just acted.
ŠŠ Independence is also a paramount attribute for entrepreneurs. Nobody holds an entrepreneur’s
hand, and they don’t want any hand-holding. Successful entrepreneurs must be willing to go it
alone and succeed or fail on their own effort without relying much on the other people.
Need for Entrepreneurship Development
Economic development essentially means a process of upward change whereby the real pr capita
income of a country increases over a period of time .Entrepreneurship has an important role to play in
the development of a country. It is one of the most important inputs in economic development. The
number and competence of entrepreneurs affect the economic growth of the country. The economic
history of the presently advanced countries like USA, Russia and Japan supports the fact that economic
development is the outcome for which entrepreneurship is an inevitable cause. The crucial and significant
role played by the entrepreneurs in the economic development of advanced countries has made the
people of developing and under developed countries conscious of the importance of entrepreneurship for
economic development. It is now a widely accepted fact that active and enthusiastic entrepreneurs can
only explore the potentials of the countries availability of resources such as labour, capital and technology.
Role of entrepreneurs in Economic Development
The role of entrepreneurs is not identical in the various economies. Depending on the material
resources, industry climate and responsiveness of the political system, it varies from economy to economy.
The contribution of entrepreneurs may be more in favorable opportunity conditions than in economies
with relatively less favorable opportunity conditions.
Adam Smith, the foremost classical economist, assigned no significance to entrepreneurial role in
economic development in his monumental work. An Enquiryinto the Nature and Causes of the Wealth
of Nations, published in 1776. Smith extolled the rate of capital formation as an important determinant
of economic development.
The problem of economic development was ergo largely the ability of the people to save more and
invest more in any country. According to him, ability to save is governed by improvement in productivity
to the increase in the dexterity of every worker due to division of labor. Smith regarded every person as
the best judge of his own interest who should be left to pursue his own advantage. According to him,
each individual is led by an invisible hand in pursuing his/her interest. He always advocated the policy of
laissez-faire in economic affairs.
In his theory of economic development, David Ricardo identified only three factors of production,
namely, machinery, capital and labour, among whom the entire produce is distributed as rent, profit and
wages respectively. Ricardo appreciated the virtues of profit in capital accumulation. According to him,
profit leads to saving of wealth which ultimately goes to capital formation.
ŠŠ Thus, in both the classical theories of economic development, there is no room for entrepreneurship.
And, economic development seems to be automatic and self-regulated. Thus, the attitude of
classical economists was very cold towards the role of entrepreneurship in economic development.
They took the attitude: “the firm is shadowy entity and entrepreneur even shadowed or at least is
shady when he is not shadowy.” The economic history of the presently developed countries, for

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship in Economic Development 47

example, America, Russia and Japan tends to support the fact that the economy is an effect for
which entrepreneurship is the cause.
ŠŠ The crucial role played by the entrepreneurs in the development of the Western countries
has made the people of underdeveloped countries too much conscious of the significance of
entrepreneurship for economic development. Now, people have begun to realize that for achieving
the goal of economic development, it is necessary to increase entrepreneurship both qualitatively
and quantitatively in the country. It is only active and enthusiastic entrepreneurs who fully explore
the potenti­alities of the country’s available resources– labour, technology and capital.
ŠŠ Schumpeter (1934) visualised the entrepreneur as the key figure in economic development because
of his role in introducing innovations. Parson and Smelser (1956) described entrepreneurship as
one of the two necessary conditions for economic development, the other being the increased
output of capital.
ŠŠ Harbison (1965) includes entrepreneurs among the prime movers of innovations, and Sayigh
(1962) simply describes entrepreneurship as a necessary dynamic force. It is also opined that
development does not occur spontaneously as a natural consequence when economic conditions
are in some sense right: a catalyst or agent is always needed, and this requires an entrepreneurial
ability. It is this ability that he perceives opportunities which either others do no see or care about.
Essentially, the entrepreneur searches for
ŠŠ Change, sees need and then brings together the manpower, material and capital required to
respond the opportunity what he sees.
ŠŠ Akio Morita, the President of Sony who adopted the company’s products to create Walkman
Personal Stereo and India’s Gulshan Kumar of T-Series who skimmed the audio-cassette starved
vast Indian market are the clearest examples of such able entrepreneurs.
ŠŠ The role of entrepreneurship in economic development varies from economy to economy depending
upon its material resources, industrial climate and the responsiveness of the political system to
the entrepreneurial function. The entrepreneurs contribute more in favourable opportunity
conditions than in the economies with relatively less favourable opportunity conditions. Viewed
from the opportunity conditions point of view, the underdeveloped regions, due to the paucity
of funds, lack of skilled labour and non-existence of minimum social and economic overheads,
are less conducive to the emergence particularly of innovative entrepreneurs. In such regions,
entrepreneurship does not emerge out of industrial background with well developed institutions
to support and encourage it. Therefore, entrepreneurs in such regions may not be an
ŠŠ “Innovator” but an “imitator” who would copy the innovations introduced by the “innovative”
entrepreneurs of the developed regions (Brozen 1954-55).
ŠŠ In these areas, according to McClelland’s (1961) concept of personality aspect of entrepreneurship,
some people with high achievement motivation come forward to behave in an entrepreneurial
way to change the stationary inertia, as they would not be satisfied with the present status that
they have in the society.
ŠŠ Under the conditions of paucity of funds and the problem of imperfect market in underdeveloped
regions, the entrepreneurs are bound to launch their enterprises on a small-scale. As imitation
requires lesser funds than innovation, it is realized that such regions should have more imitative
entrepreneurs. And, it is also felt that imitation of innovations introduced in developed regions
on a massive scale can bring about rapid economic development in underdeveloped regions

ISBN: 978-93-5300-292-3 Technical Session - I

48 Role of Entrepreneurship in Economic Development

also. But, it does not mean that such imitation requires in any way lesser ability on the part of
entrepreneurs.
In this regard, Berna opines: “It involves often what has aptly been called „subjective innovation,
that is, the ability to do things which have not been done before by the particular industrialists, even
though unknown to him, the problem may have been solved in the same way by the others.”
These imitative entrepreneurs constitute the main spring of development of underdeveloped
region Further, India which itself is an underdeveloped country aims at decentralized industrial structure
to militate the regional imbalances in levels of economic development, small-scale entrepreneurship in
such industrial structure plays an important role to achieve balanced regional development.
It is unequivocally believed that small-scale industries provide immediate large- scale
employment, ensure a more equitable distribution of national income and also facilitate an effective
resource mobilization of capital and skill which might otherwise remain unutilized. The establishment of
Entrepreneurship Development Institutes and alike by the Indian Government during the last decades is
a good testimony to her strong realization about the premium mobile role of entrepreneurship plays in
economic development of the country.
The important role that entrepreneurship plays in the economic development of an economy can
now be put in a more systematic and orderly manner as follows:
Promotes Capital Formation:-Entrepreneurs promote capital formation by mobilising the idle savings
of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type
of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the
industrial and economic development of the country.
Creates Large-Scale Employment Opportunities:-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 for others. As time passes, these enterprises grow, providing direct and indirect employment
opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem
of unemployment in the country which in turn clears the path towards economic development of the
nation. Growing unemployment particularly educated unemployment is the problem of the nation. The
available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate
employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by
starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight
the evil of unemployment.
Promotes Balanced Regional Development:-Entrepreneurs help to remove regional disparities through
setting up of industries in less developed and backward areas. The growth of industries and business in
these areas lead to a large number of public benefits like road transport, health, education, entertainment,
etc. Setting up of more industries lead to more development of backward regions and thereby promotes
balanced regional development. When the new entrepreneurs grow at a faster rate, in view of increasing
competition in and around cities, they are forced to set up their enterprises in the smaller towns away
from big cities. This helps in the development of backward regions.
Reduces Concentration of Economic Power:-Economic power is the natural outcome of industrial and
business activity. Industrial development normally lead to concentration of economic power in the hands
of a few individuals which results in the growth of monopolies. In order to redress this problem a large

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship in Economic Development 49

number of entrepreneurs need to be developed, which will help reduce the concentration of economic
power amongst the population.
Wealth Creation and Distribution:-Itstimulates 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. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.
Increasing Gross National Product and Per Capita Income:-Entrepreneurs are always on the lookout
for opportunities. They explore and exploit opportunities,, encourage effective resource mobilization of
capital and skill, bring in new products and services and develops markets for growth of the economy.
In this way, they help increasing gross national product as well as per capita income of the people in a
country. Increase in gross national product and per capita income of the people in a country, is a sign of
economic growth. . An increasing number of entrepreneurs are required to meet this increasing demand
for goods and services. Thus entrepreneurship increases the national income.
Improvement in the Standard of Living:-Increase in the standard of living of the people is a characteristic
feature of economic development of the country. Entrepreneurs play a key role in increasing the standard
of living of the people by adopting latest innovations in the production of wide variety of goods and
services in large scale that too at a lower cost. This enables the people to avail better quality goods at lower
prices which results in the improvement of their standard of living.
Promotes Country’s Export Trade:- Entrepreneurs help in promoting a country’s export-trade,
which is an important ingredient of economic development. They produce goods and services in
large scale for the purpose earning huge amount of foreign exchange from export in order to combat
the import dues requirement. Hence import substitution and export promotion ensure economic
independence and development.
Induces Backward and Forward Linkages:-Entrepreneurs like to work inan environment of change
and try to maximize profits by innovation. When an enterprise is established in accordance with the
changing technology, it induces backward and forward linkages which stimulate the process of economic
development in the country.
Facilitates Overall Development:- Entrepreneurs act as catalytic agent for change which results in chain
reaction. Once an enterprise is established, the process of industrialization is set in motion. This unit will
generate demand for various types of units required by it and there will be so many other units which
require the output of this unit. This leads to overall development of an area due to increase in demand and
setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities,
thus creating an environment of enthusiasm and conveying an impetus for overall development of the
area.
Creating innovation:-An entrepreneur is a person who always look for changes. Apart from combining
the factors of production, he also introduces new ideas and new combination of factors. He always try
to introduce newer and newer technique of production of goods and services. An entrepreneur brings
economic development through innovation.
Entrepreneurs Create New Businesses:- Path breaking offerings by entrepreneurs, in the form of new
goods & services, result in new employment, which can produce a cascading effect or virtuous circle in
the economy. The stimulation of related businesses or sectors that support the new venture add to further
economic development. For example, a few IT companies founded the Indian IT industry in the 1990s
as a backend programmers’ hub. Soon the industry gathered pace in its own programmers domain. But

ISBN: 978-93-5300-292-3 Technical Session - I

50 Role of Entrepreneurship in Economic Development

more importantly, millions from other sectors benefited from it. Businesses in associated industries, like
call centre operations, network maintenance companies and hardware providers, flourished. Education
and training institutes nurtured a new class of IT workers offering better, high-paying jobs. Infrastructure
development organizations and even real estate companies capitalized on this growth as workers migrated
to employment hubs seeking new improved lives.
Similarly, future development efforts in underdeveloped countries will require robust logistics
support, capital investment from buildings to paper clips and a qualified workforce. From the highly
qualified programmer to the construction worker, the entrepreneur enables benefits across a broad
spectrum of the economy.
Entrepreneurs Also Create Social Change:-Through their unique offerings of new goods and services,
entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on
obsolete systems and technologies. Overall, this results in an improved quality of life, greater morale and
economic freedom. For example, the water supply in a water-scarce region will, at times, force people
to stop working to collect water. This will impact their business, productivity and income. Imagine
an innovative, automatic, low-cost, flow-based pump that can fill in people’s home water containers
automatically. Such an installation will ensure people are able to focus on their core jobs without worrying
about a basic necessity like carrying water. More time to devote to work means economic growth.
For a more contemporary example, smart phones and their smart apps have revolutionized work
and play across the globe. Smart phones are not exclusive to rich countries or rich people either. As the
growth of China’s smart phone market and its smartphone industry show, technological entrepreneurship
will have profound, long lasting impacts on the entire human race. Moreover, the globalization of tech
means entrepreneurs in lesser-developed countries have access to the same tools as their counterparts in
richer countries. They also have the advantage of a lower cost of living, so a young individual entrepreneur
from an underdeveloped country can take on the might of the multi-million dollar existing product from
a developed country.
Personal Growth:-Entrepreneurship hascreated millions of good jobs. In a startup workplace, jobs often
call for creativity and collaboration, leading to personal development. Those exposed to entrepreneurship
have higher confidence and greater independence. Not bound by the hierarchy and restrictions of large
corporations, young entrepreneurs can take on greater responsibility, work flexible schedules and use
creative solutions to problem solve. The freedom associated with entrepreneurship comes with certain
challenges. Entrepreneurs often work long hours and risk their personal assets in developing their business.
Entrepreneurship puts new business ideas into practice:-In doing so, it creates jobs that facilitate
personal development. With their innovative and disruptive ideas, entrepreneurs can tackle social problems
too. It’s a worthy pursuit to consider, but if it’s not for you, see how to pass down its principles to the next
generation and enroll in How to Encourage and Teach Our Children Thus, it is clear that entrepreneurship
serves as a catalyst of economic development. On the whole, the role of entrepreneurship in economic
development of a country can best be put as “an economy is the effect for which entrepreneurship is the
cause”
Conclusion
Paradoxically, a significantly high number of entrepreneurs may lead to fierce competition and loss
of career choices for individuals. With too many entrepreneurs, levels of aspirations usually rise. Owing
to the variability of success in entrepreneurial ventures, the scenario of having too many entrepreneurs
may also lead to income inequalities, making citizens more – not less – unhappy. However, the interesting

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship in Economic Development 51

interaction of entrepreneurship and economic development has vital inputs and inferences for policy
makers, development institutes, business owners, change agents and charitable donors. If we understand
the benefits and drawbacks, a balanced approach to nurturing entrepreneurship will definitely result in
a positive impact on economy and society. Entrepreneurship puts new business ideas into practice, in
doing so, it creates jobs that facilitate personal development. With their innovative and disruptive ideas,
entrepreneurs can tackle social problems too. It’s a worthy pursuit to consider, but if it’s not for you, see
how to pass down its principles to the next generation and to Encourage and teach our children. Thus,
it is clear that entrepreneurship serves as a catalyst of economic development. On the whole, the role of
entrepreneurship in economic development of a country can best be put as “an economy is the effect for
which entrepreneurship is the cause”
References
yy http://www.preservearticles.com/201101143326/role-of-an-entrepreneur-in-economic- development.html
yy http://www.indiastudychannel.com/resources/93451-Role-entrepreneurship-economic- development.aspx
yy http://study.com/academy/lesson/what-is-an-entrepreneur-definition-characteristics- examples.html
yy http://www.yourarticlelibrary.com/essay/role-of-entrepreneurship-in-economic-development/40658
yy http://unu.edu/publications/articles/are- entrepreneurial-societies-also-happier.html
yy https://blog.udemy.com/importance-of- entrepreneurship/
yy http://www.kauffman.org/what-we-do/resources/entrepreneurship-policy- digest/entrepreneurships-role-in-economic- development
Audretsch, David and Keilbach, Max.
yy “Entrepreneurship and Regional Growth: An Evolutionary Interpretation.” Journal of
yy Evolutionary Economics, Vol. 14, No.5, 2004, 605– 616.
yy Audretsch, David and Lehmann, Erik. “Does the Knowledge Spillover Theory of Entrepreneurship
yy Hold for Regions?” Research Policy, Vol. 34, No.8, 2005, 1191-1202.
yy Bednarzick, Robert W. “The Role of Entrepreneurship in U.S. and European Job Growth.” Monthly Labor Review, Vol. 123,
No.7, 2000, 3-16.
yy P. Sharma and J.J. Chrisman, 1999, “Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship,
yy “Entrepreneurship Theory and Practice . .Sternberg and S. Wennekers, 2005, “The
yy Determinants and Effects of Using New Business Creation”
yy Cooper, 2003 “Entrepreneurship: The Past, the Present, the Future.” In Handbook of Entrepreneurship Research, 21-36.
yy M. Casson, “Entrepreneurship, Business Culture and the Theory of the Firm.” In Handbook of Entrepreneurship Research, G.L.S.
Shackle, “Foreword” to R.F. Hebert and A.N. Link, The entrepreneur: mainstream views and radical critiques

ISBN: 978-93-5300-292-3 Technical Session - I

 Role of Govt. in Entrepreneurship Development
*D. Bhaskara Rao, **Dr. J. Revathy
*Research Scholar, Dept. of Commerce & Business Administration, Acharya Nagarjuna University, Nagarjuna Nagar, India.
* Principal & Associate professor, PG Department of Commerce & Management, Studies VRS & YRN College,Chirala, Andhra
Pradesh

Abstract Entrepreneurship is a complex term that’s often defined simply as running your own business. But there’s a difference
between a “business owner” and an “entrepreneur,” and although one can be both, what distinguishes entrepreneurship is a
person’s attitude. “Entrepreneurship is much broader than the creation of a new business venture,” said Bruce Bachenheimer,
a clinical professor of management and executive director of the Entrepreneurship Lab at Pace University. “At its core, it is a
mindset – a way of thinking and acting. It is about imagining new ways to solve problems and create value.”

Definition of entrepreneurship:
Entrepreneurship is both the study of how new businesses are created as well as the actual process
of starting a new business. The basic entrepreneurship definition is the act of creating a business or
businesses while building and scaling it to generate a profit.
Government schools in India are the largest providers of education. However, data indicates
that parents are increasingly opting out of the government system due to its poor quality and enrolling
their children in private schools. Therefore, the government must take steps to improve the quality of
education in schools. Public-Private Partnership (PPP) is a mechanism that can introduce innovation and
create models of quality within the government system.
Global evidence suggests that whole school adoption PPPs are particularly effective at demonstrating
innovation. In this model, the government authorises and reimburses a private operator to manage school
operations, with varying degrees of autonomy to innovate.
Whole school PPPs give flexibility to the operator to innovate, increase competition, give choice
to low-Income families and hold operators accountable for the quality of outcomes.
Public-Private Partnerships can introduce innovation and investment into India’s government
school system, which urgently needs to improve the quality of education. Lessons from existing models
in India and international efforts at collaboration between the private and public sector show that PPPs
have an important role in improving the system.
Opportunity for PPP in School Education
Well-designed PPPs can create models of innovation for the school system in India.
Increasing access to school:
India has a high dropout rate from primary to secondary school, with the national Gross Enrolment
Ratio (GER) falling from 118 in primary school 1 to 34 in senior secondary school.
Using under utilized school infrastructure:
Across India, major metropolitan areas such as Mumbai, Chennai, Pune and Ahmedabad
have experienced up to 25% decline in enrolment in government schools over the past 10 years and
simultaneously their education budgets have almost doubled.
Improving the quality of education:
The government school system urgently needs improvement.
Role of Govt. in Entrepreneurship Development 53

Understanding the School Management and School Adoption PPP Models Beginning with
government aided schools, the state in India has experimented with various forms of PPPs to improve
access and quality in education.
Recommendations for PPP Implementation
India can draw valuable insights from countries that have used PPPs as a policy response to
address quality and access issues in school education.
These include:
ŠŠ Private operators should have autonomy to introduce innovation
ŠŠ Government should reimburse private operators the full amount of per child costs in a timely
manner to ensure financial viability
ŠŠ Full transparency in selection process of operators
ŠŠ High accountability standards with well-defined evaluation and assessment methods.
Understand the process of identifying the beneficiaries and interact with them
Beneficiary Assessment (BA) is a qualitative research tool used to improve the impact of
development operations by gaining the views of intended beneficiaries regarding a planned or ongoing
intervention. The objective of BA is to assess the value of an activity as perceived by project beneficiaries
and to integrate findings into project activities. It is designed specifically to undertake systematic listening
of the poor and other stakeholders by giving voice to their priorities and concerns. This method of
systematic consultation is used by project management as a design, monitoring, and evaluation tool.
The BA approach is not intended to supplant quantitative surveys and other traditional methods
for data gathering. It seeks to complement these methods by providing reliable, qualitative, in-depth
information on the socio cultural conditions and perceptions of the project’s target group.
This information is intended to be immediate use to managers and policy makers responsible
for improving people’s lives. BA facilitates the development of initiatives that are demand-driven and
enhances their sustainability.
The approach is useful in:
ŠŠ Identifying and designing development activities;
ŠŠ Signaling constraints to participation faced by the target group;
ŠŠ Obtaining feedback on reactions of the target group to the interventions implemented;
ŠŠ Un covering new information that would otherwise not come to light
Techniques
The approach relies primarily on three data collection techniques:
ŠŠ Conversational Interviews
ŠŠ Focus group discussions
ŠŠ Direct Observation and Participant Observation

ISBN: 978-93-5300-292-3 Technical Session - I

54 Role of Govt. in Entrepreneurship Development

Conversational Interviews:
These interviews, which are in-depth in nature, are the foundation of the beneficiary assessment
approach. In well-guided, naturalistic interviewing, people reveal their feelings, thoughts, and beliefs
about a particular issue.
Key characteristics of conversational interviewing: -
ŠŠ Establishing a good rapport between interviewer and respondent based on mutual trust and
respect
ŠŠ Interviews that generally do not exceed 45 minutes — may require more than one visit to complete
all interviews.
Focus Group Discussions
This technique is used to interview target communities in groups. Such interviews are useful in
interviewing persons from the same neighborhoods, or those involved in making the same livelihoods.
Usage of focus groups facilitates data collection of a larger sample group at one time, although precise
attribution of findings and individuals is inherently difficult.
Direct Observation and Participant Observation
Direct Observation is the simplest of techniques. It involves counting, noting behavior traits and
patterns, and other notable facets of a particular developmental situation. The potential for quantifying
observed phenomena is major and immediate.
Critically analyze the financial commitments made under this project
Organizations perform work continuously. These works include operations or projects though
some works may overlap with each other. For the organizations, projects are important elements of
change. They are considered to be the leading edge of change in organizations. A project consists of a
combination of organizational resources pulled together to create something that did not previously exist
and that will provide a performance capability in the design and execution of organizational strategies.
Projects are conceptualized, designed, engineered and produced (or constructed); something is created
that did not previously exist. An organizational strategy has been executed to facilitate the support of
ongoing organizational life. Projects therefore support the ongoing activities of a going concern.
For example,
1. An R&D project bridges the gap from an existing technology to a future technology.
2. A new factory adds to the manufacturing capability.
3. A new building contributes to the infrastructure of the city.
4. A new highway improves transportation systems.
5. A canal provides a waterway over land.
6. A pipeline moves oil, gas, or water.
7. A new house improves the living standards of a family.
Classification of Projects, Sub-Projects
A detailed study of different types of projects with reference to sequence of stages or processes
used in each case would provide us an idea to use project management in a most effective manner. The
success of a project-based organization lies in managing a portfolio of projects. In this regard the study of
criteria for selection of projects is needed.
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Govt. in Entrepreneurship Development 55

Types of Projects
One of the methods to classify projects is:
1. Open project or Walking in the fog‘
2. Semi-open project or ‘Making movies’
3. Closed project or ‘Painting by numbers’
4. Semi-closed project or ‘Going on a quest’
Open Project or “walking in the fog”:
Strict control over costs and on time-scale is important. Projects may not achieve anything as in
semi-closed project. Neither is it known what to do nor how to do it. But the project can be altered and
act differently. Usually these are reactions to change in certain circumstances like political, competitive).
A lot of quest and speed is required in projects. Not all the projects are closed projects with definite
mission. However as the projects passes through phases of a life cycle they usually change from ‘Fog’ to
‘Paint by Numbers’.
Semi-open Project or “making movies”
In this type, commitment to use of method adopted becomes essential. It can be known how to do
something but what is to be to achieve is unknown. The organization might have expertise and capability
but are looking for ways to apply it. It is like we have actors but no script but interested to make movie.
Closed Project or “Painting by Numbers”
Traditional projects are suitable example for this type of project. They have clear goals and a well
defined set of activities to be carried out. You can know what you want to achieve and how you will
achieve it. It is so clear-cut that you can paint the numbers on it.
Semi - closed Project or “Going on a quest”
In this type, strict control over the costs and time-scale at the same time allowing freedom to
explore is the main feature. The organization knows what they want to achieve but how to achieve it is
unknown. Hence they send employees on a quest to explore ‘out of the box possibilities‘. These types of
project will lead to overspending, getting delayed, or getting nothing from the project. Another method
to classify the projects is:
ŠŠ Simple projects
ŠŠ Rapid projects
ŠŠ Just-do-it projects or ‘Loose Cannons’.
“Simple” Projects
A usual project may start off as ‘painting by numbers’, a fog, a quest, or a movie. The investigative
stage are worked out until the organization is confident (say, around 90-95 percent) where at this stage
the required benefits can be achieved.
“Rapid” Projects
In this case a project is defined with a fixed budget and time-scale but scope is varied to suit
a predetermined minimum scope. Usually a prototype or actual operational platform is used in this
project to cut down resource requirements and time-scale. Hence some of the stages and processes are

ISBN: 978-93-5300-292-3 Technical Session - I

56 Role of Govt. in Entrepreneurship Development

merged. But it should be noted that just to save time and cost, phases, and processes of project couldn’t
be dispensed
”Just do it” Projects - Loose Cannons
These are undertaken to achieve results irrespective of time and cost. Sometimes these may be a
Management’s “pet project” with little relevance to strategy. Of course, these start often with optimistic
projections and end up bouncing around the organization demanding more and more resources.
Objectives of the study:
ŠŠ To study the initiatives proposed in the CSR-PPP model and the methods of implementation.
ŠŠ Understand the process of identifying the beneficiaries and interact with t
ŠŠ Critically analyze the financial commitments made under this project.
Conclusions
The main role which should be played by the government is to do things which is not presently
done by any another bodies. Develop the country with efficient private participation. Finally protect
investors and take up efficient taxation policy. Keep track of changes of the environment. It may be stated
that the role of government in future must be redefined but not en deed. The redefinition must be in the
direction of improving quality of intervention.
Reference
yy Tyson, Laura d’Andrea & Petrin, Tea & Rogers, F Halsey, 1994. “Promoting Entrepreneurship in Eastern Europe,” Small Business
Economics, Springer, vol. 6(3), pages 165-184, June.
yy Baumol, William J., 1996. “Entrepreneurship: Productive, unproductive, and destructive,” Journal of Business Venturing, Elsevier, vol.
11(1), pages 3-22, January.
yy Baumol, William J, 1990. “Entrepreneurship: Productive, Unproductive, and Destructive,” Journal of Political Economy, University of
Chicago Press, vol. 98(5), pages 893-921, October.
yy Jolanda Hessels, 2008. “International Entrepreneurship: An Introduction, Framework and Research Agenda,” Scales Research Reports
H200823, EIM Business and Policy Research.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Govt. in Entrepreneurship Development
Vunnam Venkata Ramanjaneyulu
Head, Department of Commerce Andhra Muslim College, Guntur.
Introduction:-
The Entrepreneurship is very an old concept according to which anyone who runs business is
called an entrepreneur. The more precise meaning of entrepreneur is; one who receives a need and then
brings together manpower, material and capital required to meet that need.
Entrepreneur is one who understands the market dynamics and searches for change respond to it
and exploit is as an opportunity.
The word “Entrepreneur” is derived from the French Verb “Enterprendre”. It means “to undertake”.
Oxford Dictionary
The Entrepreneur as an individual who forms an organization for commercial purpose. He/ She
are proprietary capitalist, a supplier of capital and at the same time a manager who intervenes between
the labor and the consumer.
“Entrepreneur is an employer, master, merchant but explicitly considered as a capitalist”
Types of Entrepreneurs:-
ŠŠ Small Business
ŠŠ Home-based Business
ŠŠ Online Business
ŠŠ Inventors
ŠŠ Serial Entrepreneurs
Routes for getting started as an Entrepreneur:-
ŠŠ Family Business
ŠŠ Franchise
ŠŠ New Venture
ŠŠ Buying, Acquisition
ŠŠ Between age 20’s & 30’s
A person’s education, work experience and financial resources are most likely to enable him/her
to become an Entrepreneur.
Start-ups:-
Starting a business generally requires:
ŠŠ A business concept or idea involving a product, service, process. Or new technology
ŠŠ People to support the work, whether as employees, vendors, or advisors
ŠŠ A process by which the product or service will be delivered, or the technology will be developed
ŠŠ Enough money to support the development of the idea to the point that It generates revenue
Why New Business are Started:-
The main reasons entrepreneurs go out on their own, rather than staying employed, are:
58 Role of Govt. in Entrepreneurship Development

ŠŠ Control – to be their own boss

ŠŠ Ambition – to start something from scratch themselves
ŠŠ Financial – opportunity to earn more money
In fact, an Intelligent Office Study reported that 65% of employees would rather be entrepreneurs
than work for someone else.
Role of Govt. in Entrepreneurship Development
Government Policy
Supportive Government Policies
Policy Implementation
Government Funding

Entrepreneurship Economic Development

Startup Motive Job Creation
Creativity and innovativeness SME Development
Risk Taking Wealth Creation

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 balances regional
development. The government set programmes to help entrepreneurs in the field of technique, finance,
market and entrepreneurial development so that they help to accelerate and adopt the changes in industrial
development. Various institutions were set up by the Central and State Governments in order to fulfill
this objective.
Institutions Set Up by Central Government:-
ŠŠ Small industries Development Organization (SIDO)
ŠŠ Management Development Institute(MDI)
ŠŠ Entrepreneurship Development Institute of India (EDI)
ŠŠ All India Small Scale Industries Board (AISSIB)
ŠŠ National Institution Of Entrepreneurship and Small Business Development (NIESBUD), New
Delhi
ŠŠ National Institute of Small Industries Extension Training
ŠŠ Risk Capital and Technology Finance Corporation Ltd.,(RCTFC)
ŠŠ National Research and Development Corporation(NRDC)
ŠŠ Indian Investment Centre
ŠŠ Khadi and Village Industries Commission(KVIC)
ŠŠ Indian Institute of Entrepreneurship (IIE)
ŠŠ National Alliance of Young Entrepreneurs(NAYE)
ŠŠ Centre for Entrepreneurial Development(CED) Ahmadabad
ŠŠ Institute for Entrepreneurial Development (IED)

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Govt. in Entrepreneurship Development 59

ŠŠ Technical Consultancy Organization(TCOs)

ŠŠ Public Sector Banks
Institutions Set Up at State Level:-
There are a number of Institutions establishes at State Level for organizing, developing, assisting
and making successful entrepreneurial development programmes, prominent among these are :
ŠŠ Small Industries Service Institute (SISI)
ŠŠ State Finance Corporation (SFC)
ŠŠ State Small Industries Corporation (SSIC)
ŠŠ State Industrial Development Corporation
ŠŠ State Industries Corporation
ŠŠ Technical Consulting Organization Ltd.,(TCO)
ŠŠ Commercial and Cooperative Banks
The above mentioned State and Central level Institutions have provided a number of concessions
and facilities to promote entrepreneur development in India. They have also played an important role in
balanced industrial development in the country.
Conclusion and Policy Implication:-
From the foregoing, it can be seen that Government of several countries view entrepreneurship
as the bedrock of industrialization of their economy and thus encourage entrepreneurship. However,
argued that policy makers had better discontinued subsidizing the establishment of the generic start-up;
instead consideration should be on businesses with growth potential. His argument relates to how these
policies direct people to commence marginal companies that are likely to be unsuccessful or have slight
economic effect as well as making small employment. Nonetheless, entrepreneurial success of any nation
is largely dependent on the policy behavior of the government. Since most governments especially in
the developing countries are striving to achieve economic development, they are always bringing out
supportive policy programmes in different forms, e.g. infrastructural, financial, and fiscal among others.
This scholarly work fills the literature gap by linking the antecedents of entrepreneurship to economic
development while government policy intervenes in the relationship.
References:-
yy Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small and Medium Enterprises Development
Act,2006- Department- Related Parliamentary Standing Committee (2013)
yy Entrepreneurship in India,NKC,2008
yy IBID
yy Investopedia
yy Economic Times,11th June,2015
yy Speech by Prime Minister Shri Narendra Modi at the Startup Event (27th September,2015, San Jose, California)
yy http://www.indiainfoline.com
yy www.mca.gov.in

ISBN: 978-93-5300-292-3 Technical Session - I

 Development of Entrepreneurship in India
M. Krishna Chaitanya,
Research scholar, Acharya Nagarjuna University, Guntur.
Entrepreneurs are a special group of people who enjoy a distinct status and play a crucial role
in the success of any business or trade. In the wake of liberalisation, privatisation and globalisation
of Economies across the world, the entrepreneurship has gained greater importance. Economic growth
of a nation basically draws vital initiative from a stream of young and talented entrepreneurs. Joseph
Schumpeter in his book titled “Small is Beautiful” has viewed an entrepreneur as an innovator who brings
economic development through new combinations of factors of production. Basically an entrepreneur is
one who assumes incalculable risks and uncertainties, seizes many opportunities for economic gain and
initiates activity leading to production of goods and services.
Promoting Entrepreneurship:
Entrepreneurship plays a significant role for expediting the process of economic development
is the country. Even the developed nations like U.S.A, U.K, Japan have long ago realised the need to
promote the entrepreneurship for their economic development. These could be able to change their
small based industries into big industrial houses only with the development of entrepreneurial abilities
and efforts. The advent of economic liberalisation and need for industrial growth in India has led to an
unprecedental development of entrepreneurship. An effective functioning of the support systems like
financial, marketing and infrastructural, play a crucial role in the development of entrepreneurship.
Today, a plethora of organisations are engaging themselves in the promotion of entrepreneurship.
The government has launched various programmes and schemes to promote industrial self-employment.
The major schemes are Prime Minister’s Rozgar Yozana (PMRY), Training of Rural Youth for Self-
Employment (TRYSEM), Self-Employment for Educated unemployed Youth (SEEUY), Indira Mahila
Yojana (IMY), Rashtriya Mahila Kosh (RMK),Science and Technology Entrepreneur’s Park (STEP) and
Development of women and Children in Rural Areas (DWCRA) etc..,
The above mentioned schemes have proved to be the most beneficial for the potential entrepreneurs
in the country. The Entrepreneurship Development Institute of India (EDII) set up in 1983, at Ahmadabad
has been serving as a national resource organization to facilitate and guide the state level agencies like state
Technical Consultancy Organizations Small Industry Service Institutes and nationalized banks. National
Institute of Entrepreneurship and small Business Development (NIESED) set up at New Delhi is serving
for promotion of entrepreneurship at the national level. The Industrial Development Bank of India
(IDBI) and State Bank of India (SBI), Small Industries Development Bank of India (SIDBI), APSFC and
District Industries centres (DICS), of late, are actively organising entrepreneurial training programmes
for the benefit of prospective entrepreneurs. The training is aimed at to effect changes in the individuals
in terms of knowledge, attitude and skills relevant to the selected field of trade. It is indeed landable that
government’s and development bank’s training programmes have achieved a remarkable degree of success
in creating a new class of entrepreneurs. The National Institute of Small Industry Extension Training
(NISIET) of Hyderabad is providing extension training mainly to officers and field staff working in
different government departments, banks and NGOS as to suit the specific requirements of the target
groups.
Development of Entrepreneurship in India 61

Problems of Entrepreneurship:
Despite that there has been a significant progress of entrepreneurship development, there are
certain problems which hinder the growth of entrepreneurial culture. The entrepreneurial field is still
dominated by a few individuals and organizations. The benefits and government licences and other
supportive measures have gone to select established business houses. The main problems faced by
India entrepreneurs are financial constraints, scarcity of raw materials, intense competition, high cost
of production, the initial lack of confidence in one’s own abilities etc, besides, lack of self-motivation
and shyness to venture into new activity reluctance to accept risk and change and lack of managerial
talents are some of the problems being faced by the individuals. Unrealistic policies and programmes of
implementing agencies, lack of integration among different agencies are also some of the other drawbacks
in the way of entrepreneurship.
Developing Entrepreneurship:
Entrepreneur and entrepreneurship are in fact, the dynamic processes that require a multi -
dimensional approach for development. More importantly, they have become of late, assumed greater
dimensions due to their substantial contribution to the process of economic development of the country,
Moreover part of the solution of growing unemployment particularly among educated youth lies in the
promotions of entrepreneurship. It is suggested that the government should encourage the formation
of “Entrepreneurship Development Cells” in all banks to help the prospective entrepreneurs for their
development. Voluntary and non-governmental organizations should work in close cooperation with
financial institutions and government agencies in creating a cadre of dedicated young men and women
entrepreneurs. It is necessary that all training institution and their training programmes be brought under
the control of an apex body to be set up at the national level to coordinate and regulate the activities of
all institutions engaged in the entrepreneurship development programmes throughout the country. The
apex body should have a mechanism for monitoring and evaluating the results of EDPS. The colleges
and universities should also be involved in the process of growth of entrepreneurship in the country. New
generation of entrepreneurs possessing creativity and professional skills will have to emerge to meet the
ever increasing challenges of industry and trade.

ISBN: 978-93-5300-292-3 Technical Session - I

Relation between Entrepreneurship and Economic Growth through Manufacturing
Sector: Review
*P. Daniel Paul, **Dr. V. Srinivasa Prasad
*
Department of Communications and Soft Skills, K L University, Green Feilds,
Vaddeswaram, Guntur, Andhra Pradesh, 522 520. Department of Human Resource Management,
University College of Arts and Commerce, Acharya Nagarjuna University, Nagarjuna Nagar, Guntur
PG Department of Commerce & Management Studies VRS & YRN College, Vodarevu Road, Chirala, AP 523157.
**

Abstract Entrepreneurship is the key to economically developing country like India. It is important as it utilized local
resources, employment and rural development. Entrepreneurship especially manufacturing industry is of significant importance
to the development of any economy. Developing countries like India largely depend on manufacturing industry for growth
and employment. Diversity of resources and the varying degree of skills and qualification of the available labour makes
it essential to understand the importance of both the small as well as large scale industries. The small-scale sector, largely
dependent on the strengths of our traditional skills and knowledge, creates largest employment opportunities, next only to
Agriculture. It also helps in alleviation of poverty and brings about equitable distribution of income and wealth. At the same
time the large scale industry, apart from providing job opportunities, plays important role in promoting exports resulting in
increased foreign exchange earnings and expanding demand base for domestic products leading to overall inclusive growth.
National manufacturing policy aims at enhancing the share of manufacturing in GDP to 25 per cent within a decade and
creating 100 million jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them employable.
Manufacturing sector has the potential to play a crucial role for India to achieve its goal of becoming the fastest growing economy
in the world. And the right mix of strong commitment from the government as well as the industry can make this a reality.
Key words: Entrepreneurship, Manufacturing Sector, Economic Development

Introduction
The word “entrepreneur” is derived from the French verb “enterprendre”. It means “to undertake”.
The Frenchmen who organized and led military expeditions were referred to as “entrepreneurs”.
To understand the nature of entrepreneurship, it is important to consider some of the theory
development so as to better recognize the emerging importance of entrepreneurship. The research on
entrepreneurship has grown dramatically over the years. As the field has developed, research methodology
has progressed from empirical surveys of entrepreneurs to more contextual and process-oriented research.
As yet, no comprehensive theory base has emerged, however. A theory of entrepreneurship is defined as a
verifiable and logically coherent formulation of relationships, or underlying principles that either explain
entrepreneurship, predict entrepreneurial activity (for example, by characterizing conditions that are likely
to lead to new profit opportunities to the formation of new enterprises), or provide normative guidance
(that is, prescribe the right action in particular circumstances). As we are now in the new millennium,
it has become increasingly apparent that we need to have some cohesive theories or classifications to
better understand this emerging field. In the study of contemporary entrepreneurship, one concept
recurs: Entrepreneurship is interdisciplinary. As such it contains various approaches that can increase
one’s understanding of the field. Thus we need to recognize the diversity of theories as an emergence of
entrepreneurial understanding
Indian economy which has traditionally been agriculture based, is taking big leaps towards
promoting manufacturing which constitutes 16 per cent of GDP in India. But, its contribution
to employment sector and growth is well below its true potential. Restrictive and rigid labour laws,
abundance of unskilled workforce over skilled workforce, lack of technology innovations are some of the
factors contributing to this.
Relation between Entrepreneurship and Economic Growth through Manufacturing Sector: Review 63

Inadequate growth in manufacturing has had its adverse impact on employment generation
in India. The current mismatch between distribution of workforce and value added in agriculture is
one of the main reasons for the large number of poor in our country. This needs urgent correction.
Manufacturing has to be the sponge which absorbs people who need to move out of agriculture in pursuit
of higher incomes. In a highly globalised economy, the need for enhanced export competitiveness needs
no introduction. India must aim to match China in manufacturing given the low-cost labour with the
added virtue of skills. The share of the manufacturing sector in the gross domestic product in India is 17
per cent compared to 33 per cent in China, 29 per cent in Korea, 25 per cent Brazil and 27 per cent in
Thailand. However, we are short in other resources and infrastructure that investors seek, a weakness that
has checked the flow of investments into skill-intensive manufacturing.
The present paper provides an overview of the empirical evidence concerning the relationship
between independent entrepreneurship, also known as self-employment or business ownership in
manufacturing sector and economic development.
Important reason for the boom of entrepreneurship
Entrepreneurship has become a hot policy issue. The rise of solo self-employment is important
because it increases the flexibility and productivity of the economic system, while contributing to a
higher degree of job satisfaction. On the downside the re-emergence of self-employment also increases
insecurity for those involved and income inequality. The upward trend of innovative and/or ambitious
entrepreneurship at the high end of economic development is of particular interest for competitiveness,
economic growth and job creation. Policy makers in advanced economies should be aware of both
revolutions and tailor their policies accordingly.
Recent trends in some sectors, such as auto and auto components, specialty chemicals, generic
drugs and engineering, however, suggest a the author is Director, Institute of Small Enterprises and
Development. Cochin. He is recipient of the Birla National Fellowship in Economics, has served as
Member of the Dr. S. P. Gupta Committee on Development of Small Enterprises, at the Planning
Commission. He is also a Chevening Fellow of the Foreign and Commonwealth Office of the U.K.
Government. He is founder of the India Micro, Small and Medium Enterprise Report Series, and has
authored, Small Enterprise Development: The Experience of the North and the South (Oxford). Vast scope
for global manufacturers to locate here. The policy thrust outlined by the Prime Minister through the two
flagship programmes, ‘Make in India’ and ‘Skill India’, should be understood against this background.
And worryingly, it is losing depth. While China’s GDP is 3.8 times larger than India’s, its production of
machine tools, the ‘mother industry’ of manufacturing, is 55 times more! India needs a strategy to grow
manufacturing 12 per cent to 14 per cent per annum, create 100 million new manufacturing jobs in the
next 15 years to realise its ‘demographic dividend’, and create more depth in capital goods industries and
innovation for its manufacturing sector to be competitive and sustainable. An innovation strategy must
be closely intertwined with an integrated manufacturing strategy. This demands a radical departure from
the strategies we are used to. The recent budget of the Government has made efforts to provide favourable
environment and facilities to promote domestic as well as international industry by simplification,
rationalization and digitization of processes. Initiatives like “Make in India”, Skill India, MUDRA etc
are aimed at encouraging the spirit of entrepreneurship and making India the manufacturing hub of
the world. The budget also tries to address issues relating to lack of robust infrastructure, constraints on
energy supply, importance of innovation and technology etc. The articles inside take a look at what has
been done so far and what more needs to be done to give much needed impetus to the sector.

ISBN: 978-93-5300-292-3 Technical Session - I

64 Relation between Entrepreneurship and Economic Growth through Manufacturing Sector: Review

Entrepreneurship Policy
“Entrepreneurs, given the right market signals, can create growing businesses at a time of high
uncertainty, caused by rapidly changing technological and sociopolitical environment”
Employment generation policies in India consist of a number of self-employment schemes which
can be broadly clubbed as SME policies. These policies, in essence, represent a patchwork of financial
measures to mitigate the disadvantages of small businesses vis-à-vis their large counterparts. SME policies
mainly focus on creating small businesses, but not on entrepreneurs. Entrepreneurs, given the right
market signals, can create growing businesses at a time of high uncertainty, caused by rapidly changing
technological and sociopolitical environment. The world over, it is now being increasingly felt that massive
allocation for self-employment schemes and creating a good climate for small business are not enough to
ensure growth oriented entrepreneurial businesses, generate more employment and provide sustainable
competitive advantage.
Measurement and monitoring of the progress regarding the shifting of the Indian economy to an
entrepreneurial mode is crucial. Mechanisms need to be evolved for this. The implementation of a national
entrepreneurship policy cannot be left to a single Ministry alone. Inter-ministerial working groups are
necessary to make entrepreneurship development a priority. At the local level, this must translate into
cooperation and collaboration between different educational, financial and sociocultural organizations,
both from the public as well as private sectors. This is not possible without a strong political leadership at
local levels that has the capability tobring together a broad spectrum of professionals and social activists.
A young leadership that understands the need for an entrepreneurial economy better, is probably better
suited to drive the process of entrepreneurial transformation of the nation.
Having a manufacturing competitiveness agenda in place, this is the right time for India to launch
a National Entrepreneurship Policy. The rapid spread of globalization has stimulated integration process
of local SMEs into the international economy. In this dynamic marketplace, ‘strategy’ is of particular
importance to businesses. Therefore, local enterprises should try to construct their own brands or form
alliances with international enterprises in order to be better equipped to embrace competition; local
SMEs who continue to operate in old style single shop method should also adjust their strategy and
grasp every opportunity to improve their competitiveness and business environment, so as to improve the
business environment, create a distinctive brand, and finally to excel in the competition.
Hindrances in the Sector
The manufacturing sector is still afflicted by problems of land acquisition, rehabilitation, multiple
laws and rules to adhere to, lack of clarity for the entrepreneurs, multiple and complex process of
clearances to be obtained to set-up a factory, lack of marketing strategies and export orientation, lack of
infrastructure, power and water supplies. Economic Survey 2014-15 states that the manufacturing sector
has one of the highest numbers of stalled projects in the last few quarters. Among manufacturing, the
majority of stalled projects are in steel, cement, garments and processed food. 212 manufacturing projects
are stalled due to lack of funds, demand and unfavourable market conditions.
5. Policies to Boost the Sector
The manufacturing sector revolves around two sets of major participants, the entrepreneurs and
the workers. The Government comes in between these two, to balance and facilitate the interaction of
the two segments and provide enough facilities for both sides so that the system continues to function

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Relation between Entrepreneurship and Economic Growth through Manufacturing Sector: Review 65

smoothly. The policies and programmes rolled out by the Government come in this interplay and act like
a catalyst for the manufacturing sector as a whole.
The recent policy reforms clearly reveal that government is leveraging on skill development
for ensuring sustainable entrepreneurship development in the country. However, a proper supervision
and monitoring mechanism should be set to analyze the outcome of these initiatives on periodic basis
and to avoid the overlapping of activities performed by the newly established government agencies
and programmes. According to survey undertaken by Local Circles, 59 percent of citizens still feel that
corruption and delays prevent the growth of entrepreneurship in India while only 14 percent felt funding
as the main problem. Thus, the effectiveness of the recent policy reforms needs to be checked by analyzing
the benefits entailed by the entrepreneurs on regular basis to ensure that these initiatives deliver maximum
results unlikely the previous reforms.
According to Economic Survey 2015-16, start-up sector is witnessing unusual dynamism with
focus mainly on ecommerce and financial services sector which led to huge growth of technology enabled
start-ups in the year 2015. Therefore, the ‘Start-up India’ mission of government should go beyond digital
or technology start-ups and enable entrepreneurship in manufacturing sector to ally with Make in-India
drive and particularly at grass roots level so as to provide self-employment opportunities to technology
deficient section of the society.
Conclusions
Entrepreneurship acts as a catalyst for the economic prosperity of a nation as it leads to generation
of employment, contribution in national income, rural development, industrialization, technological
development, export promotion etc. In India, various initiatives have been taken by the government
from time to time for entrepreneurship development in the country. However, literature reveals that
entrepreneurs face a number of problems which obstruct the growth of entrepreneurship. To meet these
challenges, a need was felt by government to initiate a new set of policy reforms in India which has led to
a remarkable improvement in recent years. Therefore, an attempt has been made to study the implications
of the recent policy reforms of entrepreneurship in India which has made India a hotspot destination
for start-ups. The study found that most of these recent reforms are focusing on skills development
measures giving birth to technology enabled start-ups. Hence, it is suggested that a proper supervision
and monitoring mechanism should be set to analyze the outcome and effectiveness of these initiatives on
periodic basis and entrepreneurship development at grass roots level should be targeted so as to provide
self-employment opportunities to technology-deficient section of the society.

ISBN: 978-93-5300-292-3 Technical Session - I

 Emerging Entrepreneurship in Indian Scenario
*Kumaraswamy Manepalli
MBA, M.Com, Asst. Prof. Department of Management Studies, [email protected],9966617505.
Pottisriramulu Chalavadi Mallikharjuna Rao College of Engineering and Technology, Kothapeta, Vijayawada-520001

Abstract: The Indian employment market is uncertain. The number of unemployed is ever increasing. In this
context, both the Central and State governments are working on to develop entrepreneurship as a recourse to employment
problems. In order to do so, there needs to be specific skill and knowledge set needed from the individual who is looking
for entrepreneurship. The dimension of the entrepreneurship is changing not from its perceptive form but also from
its origin. The lusts of entrepreneurship in rural and urban areas are different. Entrepreneurship is the key to India’s
development. It is important as it utilized local resources, employment and rural development. Entrepreneurship can
be viewed as a creative and innovative response to the environment and an ability to recognize, initiate and exploit an
economic opportunity. An entrepreneur is an innovator who introduces something new in an economy. Entrepreneurship
is doing things that are generally not done in the ordinary course of business. Innovation may be in; introducing a new
manufacturing process that has not yet been tested and commercially exploited, introduction of a new product with
which the customers are not familiar or introducing a new quality in an existing product, developing a new combination
of means of production. Innovation involves problem solving and an entrepreneur is a problem solver. An entrepreneur
does things in a new and a better way. A traditional businessman working in a routine manner is not entrepreneurial.
Innovative organization wants must have to prepare for renewing the offerings and its delivery process to its stakeholders
to survive in today’s globalised world. In the present paper, concept of innovation and entrepreneurship has been
studied by the authors. The paper will also include the challenges and opportunities faced by the entrepreneur in India.
Key words: Entrepreneurship, Challenges, Opportunities
Introduction:
Entrepreneur is a person who innovates, allocates and manages the factors of production. This
particular person has the ability to perceive latest economic opportunities and to device their exploitation.
This particular person is the supplier of resources, supervisor and coordinator and ultimate decision
maker. Entrepreneur has the greatest chance of success by focusing on a market niche either too small
or too new to have been noticed by established businesses. The new generation entrepreneurs are well
educated and are capable of understanding the fluctuating trends of markets. The entrepreneurs in most
of the cases are having business family background. In certain cases the new generation has started after
facing a lot of difficulties from their first generation. In these cases the new generation is very careful
in selecting their business career. Entrepreneurship has been a male-dominated phenomenon from the
very early age, but time has changed the situation and brought women as today’s most memorable and
inspirational entrepreneurs. In almost all the developed countries in the world women are putting their
steps at par with the men in the field of business.
An entrepreneur is a person who develops a new idea and takes the risk of setting up an enterprise
to produce a product or service which satisfies customer needs. All entrepreneurs are business persons,
but not all business persons are entrepreneurs. Entrepreneurship is the activity which is being carried out
by the Entrepreneur. Generally Entrepreneur is the concerned authority of the business, without their
permission, not single changes or decisions are made. In other words, “An Entrepreneur” is an owner or
manager of the business enterprise who makes money through risk or initiative. They are responsible for
any changes happened in the business or in the organization.
Importance of Innovation in Entrepreneurship:
The rules and principles are similar for every entrepreneur who owns large or small enterprise.
Only the difference is, the starter face toothache and hick ups at the early stage, whereas existing business
face different problems, limitations, management problems and constraints in the market etc. Both the
Emerging Entrepreneurship in Indian Scenario 67

cases it needs to learn many things and should be innovative for the survival in the business market. The
daily crisis cannot be postponed; it has to be dealt with right away. And the existing operation demands
high priority and deserves it. It thus takes special effort for the existing business to become entrepreneurial
and innovative.
As Drucker says, the enterprise that does not innovate inevitably ages and declines. And in a
period of rapid change such as the present, an entrepreneurial period, the decline will be fast. Innovation
requires major effort. It requires hard work on the part of performing, capable people—the scarcest
resource in any organization.
Women Entrepreneurs in India:
Since time in memorial women are contributing a great deal to the development of any nation
across the world. It goes without saying that Indian women entrepreneurs have significantly contributed
to the industrial development of India. Apart from giving good citizens to the nation, women have also
given good organizations to the nation. Obviously, what man can do, women can do better through their
dedication and commitment. This has been proved time and again in the analysis of Indian business
history. Under the stewardship of women scores of industries have made rapid strides and progress.
The business models and management styles followed women entrepreneurs worth replicating across the
world. There is saying where women are respected, dwells God. Similarly where women are there in the
industry dwells progress and prosperity.
Future of Entrepreneurship:
Technology plays a crucial role in the future of entrepreneurship. Entrepreneurs have the chance
to do both strategic planning and administrative work for their business. They can get involved in all sides
of their business because the Internet makes it possible to do so. The future of entrepreneurship could
involve high-performing entrepreneurs rather than people working for huge, faceless organizations. The
Internet and especially social media tools makes it possible to turning passion into a thriving business‘,
and that anyone can create a personal brand and leverage it worldwide through technology. Further, that
entrepreneurs need to get up to speed with the latest innovations in business. Managers, entrepreneurs
and other business-driven people simply cannot compete in today‘s market if they do not adopt the
right tools. This means that anyone, wherever that person is located, can build a successful business if
online tools are properly optimized. As the Internet revolution advances, so does entrepreneurship. With
constantly new and easier ways to build business, succeeding in this new era is a matter of having two
things: Internet and a device that gives you access to it. Once an entrepreneur is in possession of these
two, it is a matter of learning and mastering the different tools available online to turn your idea into a
thriving business.
Opportunities of Entrepreneurs:
ŠŠ Free entry into world trade.
ŠŠ Improved risk taking ability.
ŠŠ Governments of nations withdrawn some restrictions
ŠŠ Technology and inventions spread into the world.
ŠŠ Encouragement to innovations and inventions.
ŠŠ Promotion of healthy completions among nations
ŠŠ Consideration increase in government assistance for international trade.

ISBN: 978-93-5300-292-3 Technical Session - I

68 Emerging Entrepreneurship in Indian Scenario

ŠŠ Establishment of other national and international institutes to support business among nations
of the world.
ŠŠ Benefits of specialization.
ŠŠ Social and cultural development
Challenges faced by Entrepreneurs:
Family Challenges: Convincing to opt for business over job is easy is not an easy task for an
individual. The first thing compared is – Will you make more money in business of your choice or as a
successor of family business. This is where it becomes almost impossible to convince that you can generate
more cash with your passion than doing what your Dad is doing.
Social Challenges: Family challenges are always at the top because that is what matter the most
but at times social challenges also are very important. Let us say you and your friend graduated at the
same time. You opted for entrepreneurship and your friend opted for a job. He now has a flat, car and
what not because he could easily get those with a bank loan but you still have nothing to show off and
this is where challenge comes.
Technological Challenges: Indian education system lags too much from the Job industry as a whole but
then it lags even more when it comes to online entrepreneurship. What technology would be ideal and
how to use that technology effectively?
Financial Challenges: (Difficulty in borrowing fund): Financial challenges are a lot different in India
especially for online entrepreneurs. When you are starting out as an entrepreneur you don’t opt for
venture funding but try to go with funding from small to medium business people. Many such non-
technical business people don’t understand the online business models as a whole and so getting an initial
business funding from them becomes challenging. The other option you can think of is loan but bank
loan is not at all an option in India for new online entrepreneurs.
Policy Challenges: Now and then there is lot of changes in the policies with change in the
government.
ŠŠ Problems of TRIPS and TRIMS.
ŠŠ Problems of raising equity capital
ŠŠ Problems of availing raw-materials.
ŠŠ Problems of obsolescence of indigenous technology
ŠŠ Increased pollutions Ecological imbalanced.
ŠŠ Exploitation of small and poor countries, etc.
Conclusion:
“An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific
tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.” -Peter Drucker,
Management Guru
Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more about overcoming
barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship is one of the important segments
of economic growth. Innovation is a key factor that an entrepreneur brings in an overall change through
innovation for the maximum social good. As someone said failures are the stepping Stones for Success.
If we observe the way any entrepreneur, their life is not a bed of roses. They faced many obstacles in the

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

A Glimpse on Contribution of Entrepreneurship in GDP Growth 69

way of entrepreneurial achievement. Furthermore, women can tell the condition of a nation, she acts as a
central cohesive source of support and stability, not only to her family but also to whole nation. There is
saying where women are respected, dwells God. Similarly where women are there in the industry dwells
progress and prosperity. The bottom line for all the entrepreneurial life taught the first lesson for success;
and that is failure.
References:
yy T. Swetha, Dr. K. Venugopal Rao: “Entrepreneurship in India” paper presented in International Journal of Social science &
Interdisciplinary Research.
yy Mr. Sanjay Manocha: “Innovation and Entrepreneurship in Today’s Scenario” paper presented in International Journal of Marketing,
Financial Services & Management Research.
yy Mr. Kapil Gulati, Mr. Suniel Sharma: “Entrepreneurship in Indian Scenario” paper presented in International Journal of Economics,
Finance and Management.

ISBN: 978-93-5300-292-3 Technical Session - I

 A Glimpse on Contribution of Entrepreneurship in GDP Growth
V. Mydhili MBA
Assistant Professor, Dept of Management Studies, Vignan’s Nirula Institute of Technology & for Women, Guntur & Research
Scholar,
KLU Business school, KL University, Guntur; E-mail : [email protected].

Abstract: An organization comes into existence only because of the efforts put in by an individual, who would
be prepared to assume responsibility of leading the enterprise with him. For that, the individual must have a special
quality that is known as entrepreneurship. Entrepreneurship refers to all those activities which are to be carried
out by a person to establish and to run the business enterprises in accordance with the changing social, political
and economic environments. Entrepreneurship plays a major role in economic development. It serves as a catalyst.
The role of entrepreneurship in economic development varies from economy to economy depending upon its material resources,
industrial climate and political system. The primary objective of this paper is to throw light on role of entrepreneurship in economic
development. This paper begins with presenting segmentation of entrepreneurs. This paper gives an overview of contribution
of different sectors in growth of GDP in India and also studies contribution of Service sector in growth of GDP in India.
Key words: Entrepreneurship, Economic Development, GDP, Service Sector.

Entrepreneurship:
Entrepreneurship refers to all those activities which are to be carried out by a person to establish
and to run the business enterprises in accordance with the changing social, political and economic
environments. Entrepreneurship includes activities relating to the anticipation of the consumers likes
and dislikes, feelings and behaviors, tastes and fashions and the introduction of business ventures to meet
out all these expectations of the consumers. Entrepreneurship is the ability of entrepreneurs to assess the
risks and establish businesses which are risky but at the same time suits perfectly to the changing scenarios
of the economy.
“Entrepreneurship as the function of seeking investment and production opportunity, organizing
an enterprise to undertake a new production process, rising capital, hiring labor, arranging the supply
of materials, finding site, introducing new techniques and commodities, discovering new sources of raw
materials and selecting top managers of day to day operations of the enterprise”.
According to Schumpter, “Entrepreneurship is the purposeful and systematic innovation. It included
not only the independent businessman but also company directors and managers who actually carry out
innovative functions.”
According to Schumpeter “Entrepreneurship and economic development are intimately related.
Entrepreneurial process is a major factor in economic development and the entrepreneur is the key to economic
growth”.
According to Robert C. Ronstadt, “Entrepreneurship is a dynamic process of vision, change, and
creation. It requires an application of energy and passion towards the creation and implementation of new
ideas and creative solutions. Essential ingredients include the willingness to take calculated risks-in terms of
time, equity, or career; the ability to formulate an effective venture team; the creative skill to Marshall needed
resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity
where others see chaos, contradiction, and confusion”.
Schumpeter’s Definition ”The entrepreneur in an advanced economy is an individual who
introduce something new in the economy- a method of production not yet tested by experience in the branch of
A Glimpse on Contribution of Entrepreneurship in GDP Growth 71

manufacturing, a product with which consumers are not yet familiar, a new source of raw material or of
new markets and the like”.
Drucker’s Views on Entrepreneur “An entrepreneur is the one who always searches for change,
responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by
which they exploit changes as an opportunity for a different business or different service”
Characteristics of an Entrepreneur:
The following are the characteristics of an entrepreneur:
ŠŠ Hardworking nature
ŠŠ Desire for high achievement
ŠŠ Highly optimistic
ŠŠ Independence
ŠŠ Foresight
ŠŠ Good organizer
ŠŠ Innovative
In a study it was found that possession of certain competencies or abilities result in superior
performance. An entrepreneur may possess certain competencies and at the same time it is possible to
develop these through training, experience and guidance.
Types of Entrepreneurs:
ŠŠ Innovating entrepreneurs: An innovative entrepreneur is the person who introduces new
products, new methods for production, discovers new market and recognizes the enterprise.
ŠŠ Imitating entrepreneurs: These are the people who are ready to adopt the innovations of
innovating entrepreneurs. They only imitate the techniques and technology innovated by
others.
ŠŠ Fabian entrepreneurs: These people are characterized by very great caution in experimenting
any change in their enterprises. They imitate only when it becomes perfectly clear that failure
to do so would result in a loss of the relative position in the enterprise.
ŠŠ Drone entrepreneurs: These people are characterized by a refusal to adopt opportunities to
make changes in production even at the cost of severely reduced returns relative to others.
Positive attitude is very important to the entrepreneurs. If they do not have positive attitude,
they will not be able to achieve the goals. For people who have positive attitude, if they do any mistake
they learn a lesson from that mistake and carry on their life. They will spent more time for finding
out the optimal solutions. The positive attitudes which are associated with entrepreneurship are listed
below.
ŠŠ Attitude toward imagination
ŠŠ Attitude toward hard work
ŠŠ Attitude toward frank expression and action
ŠŠ Attitude toward new opportunities
ŠŠ Attitude toward change in the environment
ŠŠ Attitude toward initiative

ISBN: 978-93-5300-292-3 Technical Session - I

72 A Glimpse on Contribution of Entrepreneurship in GDP Growth

ŠŠ Attitude toward thoughts and execution upon a project

Role of Entrepreneurship in Economic Development:
Entrepreneurship plays a vital role in economic development. The following are the roles:
ŠŠ It promotes capital by mobilizing savings.
ŠŠ It provides employment.
ŠŠ It promotes balanced regional development.
ŠŠ It helps to reduce the concentration of economic power.
ŠŠ It stimulates the equitable redistribution of wealth, income and even political power in the interest
of the country.
ŠŠ It encourages effective utilization of resources.
ŠŠ Promotes exports.
Thus, it is clear that entrepreneurship serves as a catalyst of economic development. The
entrepreneurship is a cause and the economic development is the effect. It represents the cause and effect
relationship.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

A Glimpse on Contribution of Entrepreneurship in GDP Growth 73

Contribution Of Different Sectors In Growth Of GDP In India:

Contribution of Service sector in growth of GDP in India:

India’s services sector covers a wide variety of activities such as trade, hotel and restaurants,
transport, storage and communication, financing, insurance, real estate, business services, community,
social and personal services, and services associated with construction.
ŠŠ The contribution of service sector in Gross Domestic Product growth rate is around 66.1 per cent
of its Gross Value Added growth in 2015-16.
ŠŠ The contribution of service sector in Gross Domestic Product growth rate in 2014-15 is 57.9%.
ŠŠ The contribution of service sector in Gross Domestic Product growth rate in 2013-2014 is 57%.
ŠŠ The contribution of service sector in Gross Domestic Product growth rate in 2012-2013 is 64.8%
ŠŠ The contribution of service sector in Gross Domestic Product growth rate in 2011-12 is 34%.
The following table shows the year wise contribution of service sector in the growth of GDP:

Year Service Sector (%)

2011-12 34.0
2012-13 64.8
2013-14 57.0
2014-15 57.9
2015-16 66.1

ISBN: 978-93-5300-292-3 Technical Session - I

74 A Glimpse on Contribution of Entrepreneurship in GDP Growth

The reasons for the growth of contribution of service sector in GDP growth rate is due to the fact
that India has a large pool of highly skilled, low cost, and educated workers in the country. This has made
sure that the services that are available in the country are of the best quality.
Entrepreneurship development to Economic development
The significant role that entrepreneurship plays in the economic development of an economy can
now be put in a more orderly and systematic manner as follows:
Formation of capital
Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ
their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial
activities leads to value addition and creation of wealth, which is very essential for the industrial and
economic development of the country.
Large-Scale Employment Opportunities
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 for others. As time passes, these
enterprises grow, providing direct and indirect employment opportunities to many more. In this way,
entrepreneurs play an effective role in reducing the problem of unemployment in the country which in
turn clears the path towards economic development of the nation.
Balanced regional development:
Entrepreneurs help to remove regional disparities through setting up of industries in less developed
and backward areas. The growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc. Setting up of more industries leads to
more development of backward regions and thereby promotes balanced regional development. When the
new entrepreneurism grow at a faster rate, in view of increasing competition in and around cities, they are
forced to set up their enterprises in the smaller towns away from big cities. This helps in the development
of backward regions.
Creation and Distribution of Wealth:-
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. Entrepreneurial activities
also generate more activities and give a multiplier effect in the economy.
Strengthens Export Trade
Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of
economic development. They produce goods and services in large scale for the purpose earning huge
amount of foreign exchange from export in order to combat the import dues requirement. Hence import
substitution and export promotion ensure economic independence and development
Facilitates Overall Development
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise
is established, the process of industrialization is set in motion. This unit will generate demand for various
types of units required by it and there will be so many other units which require the output of this
unit. This leads to overall development of an area due to increase in demand and setting up of more

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

A Glimpse on Contribution of Entrepreneurship in GDP Growth 75

and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an
environment of enthusiasm and conveying an impetus for overall development of the area.
Innovation
An entrepreneur is a person who always looks for changes apart from combining the factors of
production; he also introduces new ideas and new combination of factors. He always tries to introduce
newer and newer technique of production of goods and Services .An entrepreneur brings economic
development through innovation.
Social Change
Through their unique offerings of new goods and services, entrepreneurs break away from
tradition and indirectly support freedom by reducing dependence on obsolete systems and technologies.
Overall, this results in an improved quality of life, greater morale and economic freedom.
ŠŠ For a more contemporary example, smart phones and their smart apps have revolutionized work
and play across the globe. Smart phones are not exclusive to rich countries or rich people either.
As the growth of China’s smart phone market and its Smartphone industry show, technological
entrepreneurship will have profound, long lasting impacts on the entire human race.
ŠŠ Moreover, the globalization of tech means entrepreneurs in lesser-developed countries have access
to the same tools as their counterparts in richer countries. They also have the advantage of a lower
cost of living, so a young individual entrepreneur from an underdeveloped country can take on
the might of the multi-million dollar existing product from a developed country.
Conclusion:
Entrepreneurship plays a vital role in the economic development of the country. In India
entrepreneurship played an important role in the development of the economy. In the growth of India’s
gross domestic product there is contribution of different sectors. In particular service sector is playing a
major role in its contribution in the growth of gross domestic product. The contribution of service sector
in the growth of gross domestic product is increasing year by year.
Entrepreneurship puts new business ideas into practice. In doing so, it creates jobs that facilitate
personal development. With their innovative and disruptive ideas, entrepreneurs can tackle social problems
too. It’s a worthy pursuit to consider, but if it’s not for you see how to pass down its principles to the next
generation and enroll in How to encourage and Teach Our Children Thus, it is clear that entrepreneurship
serves as a catalyst of economic development. On the whole, the role of entrepreneurship in economic
development of a country can best be put as “an economy is the effect for which entrepreneurship is the
cause”
References:
yy Audretsch, David and Keilbach, Max. “Entrepreneurship and Regional Growth: An Evolutionary Interpretation.” Journal of
Evolutionary Economics, Vol. 14, No.5, 2004, 605– 616.
yy Cooper, 2003 “Entrepreneurship: The Past, The Present, The Future.” In Handbook of
yy Entrepreneurship Research, 21-36.
yy Dr. S.S.Khanka, “Entrepreneurial Development”, S. Chand Publications.
yy H. Nandan, “Fundamentals of entrepreneurship”, PHI Learning private Limited.
yy http://www.preservearticles.com/2011011433 26/role-of-an-entrepreneur-in-economic-development.html

ISBN: 978-93-5300-292-3 Technical Session - I

 “Role of Entrepreneurs in Economic Development”
*Taidala Vasantaha Rao. *Bandlamudi Kalpana
*Research Scholar. Department of Commerce and Business Administration, Acharya Nagarjuna University, Guntur, AP
**Research Scholar. Department Of Commerce and Business Administration, Acharya Nagarjuna University, Guntur, AP

Abstract: 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 the case of India,
Entrepreneur have performed below expectation due to a combination of different problems themselves through environmental
related factors, instability of governments and frequent government policy changes etc. Entrepreneurship Promotions should thus
ensure the availability or possession of managerial capacity and acumen before pursuing financial resources for the development
of the respective enterprise. The aim of the paper is to develop and analyze the contributions of entrepreneurship in the economic
development in India.Whereas both the positive as well as the negative impact of entrepreneurship on the economy has been discussed.
Key words Entrepreneurship, Positive Impact, Negative Impact, Economic Development, India.

Introduction:
The word entrepreneurship means has its origin in French Language which refers to organizers of
musical or other entertainment. An entrepreneur is a person who has already started or is in the process
of starting an enterprise. Entrepreneurship play vital role in the Economic growth and development of
the country and new product formation and technological change in production process and economic
transformation is occurs due to effective entrepreneurship. An entrepreneur takes more risk for the
organizational development and He gives innovation to the industry. This types of habit of taking High
risk innovate new things brings economic development of the country. In present scenario, Economic
development is not possible without effective entrepreneurship and thus a Entrepreneur is an major
component for Economic Growth. The entrepreneurs with their ability to scan, analyze and identify
opportunities in the environment transform them into business proposition through creation of economic
entities.
“Entrepreneurship is a purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain or organize profit oriented business unit for the production and
distribution of economic goods and Service. A. H. Cole
The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering
economic growth and development. Entrepreneurship is one of the most important inputs in the economic
development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by
his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a
country but also in the development of farm and service sector. The major roles played by an entrepreneur
in the economic development of an economy are discussed in a systematic and orderly manner as follows.
1 Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ
their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial
activities leads to value addition and creation of wealth, which is very essential for the industrial and
economic development of the country.
2 Creates Large-Scale Employment Opportunities:
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,
“Role of Entrepreneurs in Economic Development” 77

both on small and large-scale numerous job opportunities are created for others. As time passes, these
enterprises grow, providing direct and indirect employment opportunities to many more. In this way,
entrepreneurs play an effective role in reducing the problem of unemployment in the country which in
turn clears the path towards economic development of the nation.
3 Promotes Balanced Regional Development:
Entrepreneurs help to remove regional disparities through setting up of industries in less developed
and backward areas. The growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc. Setting up of more industries leads to
more development of backward regions and thereby promotes balanced regional development.
4. Reduces Concentration of Economic Power:
Economic power is the natural outcome of industrial and business activity. Industrial development
normally leads to concentration of economic power in the hands of a few individuals which results in
the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be
developed, which will help reduce the concentration of economic power amongst the population.
5. Wealth Creation and Distribution:
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. Entrepreneurial activities
also generate more activities and give a multiplier effect in the economy.
6. Increasing Gross National Product and Per Capita Income:
Entrepreneurs are always on the lookout for opportunities. They explore and exploit opportunities,,
encourage effective resource mobilization of capital and skill, bring in new products and services and
develops markets for growth of the economy. In this way, they help increasing gross national product as
well as per capita income of the people in a country. Increase in gross national product and per capita
income of the people in a country, is a sign of economic growth.
7. Improvement in the Standard of Living:
Increase in the standard of living of the people is a characteristic feature of economic development
of the country. Entrepreneurs play a key role in increasing the standard of living of the people by adopting
latest innovations in the production of wide variety of goods and services in large scale that too at a lower
cost. This enables the people to avail better quality goods at lower prices which results in the improvement
of their standard of living.
8. Promotes Country’s Export Trade:
Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of
economic development. They produce goods and services in large scale for the purpose earning huge
amount of foreign exchange from export in order to combat the import dues requirement. Hence import
substitution and export promotion ensure economic independence and development.
9. Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximize profits by innovation.
When an enterprise is established in accordance with the changing technology, it induces backward and
forward linkages which stimulate the process of economic development in the country.

ISBN: 978-93-5300-292-3 Technical Session - I

78 “Role of Entrepreneurs in Economic Development”

10. Facilitates Overall Development:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise
is established, the process of industrialization is set in motion. This unit will generate demand for various
types of units required by it and there will be so many other units which require the output of this
unit. This leads to overall development of an area due to increase in demand and setting up of more
and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an
environment of enthusiasm and conveying an impetus for overall development of the area.
Eminent entrepreneurs in History & Their Journey towards entrepreneurship
Walchand Hirachand Doshi (23 November 1882 – 8 April 1953)
Some of the major construction projects of the pre-independence era were all directed and
executed in the supervision of Walchand. Later it was again renamed as Premier Construction with a
major stake of the Tata’s. In his later years, he went on to start a Shipping company, the Scindia Steam
Navigation Company which went on to grab 21% of the Indian coastal traffic. Then the first Indian
Aircraft company; the Hindustan Aircraft, and a modern shipyard known as Hindustan Shipyard Limited
and lastly the first car factory of India known as Premier Automobiles.
Jamsetji Tata (3 March 1839 – 19 May 1904):
He was known as the Father of Indian Industry. The entrepreneurial insightfulness of Jamsetji
coupled with his nationalistic outlook, which led him to believe that the fruits of his business success
would enrich the nation as a whole, made him truly unique. The repression of the Indians in the hands
of British rulers coupled with widespread poverty all across the nation at that time, was at the root of
this entrepreneur‘s philosophy. This is what precisely set the stage for the Enterprise to plough back
profits into various social-development initiatives – a direct fallout of the empathy set in the founder‘s
philosophy of business. His started his adventurous life in business by setting a cotton mill in Bombay
and then one another in Nagpur. His dream was to set-up a iron and steel company, a science institution
where one can learn science, a world-class hotel, and a hydro-electric plant.
Ardeshir Godrej (1868 - 1936):
The founder of the Godrej group of companies. Ardeshir Godrej studied law but couldn’t do well
as a lawyer. So he came to Bombay and started to work as an attendant to a chemist. Because of his great
sense of business, he saw everything as a business opportunity. Taking a loan from his father’s friend he
started to manufacture medical equipment that are required by a surgeon. Equipment such as scalpels,
surgeon’s scissor, forceps etc. When he was satisfied that his equipment are world-class, he went to the
boss of the company which he was working as an attendant. His boss accepted that the equipment is great
but the tag “Made in India” will not be there as that won’t be marketable (I am talking about 1891).
Govindram Seksaria (October 19, 1888 - June 29, 1946):
He was the Cotton King of the World. Not many people know but Govindram Seskaria is the
most famous businessman of the pre-independence era of India. At that time, not many Indians ventured
in to business when the British were ruling the country. But that didn’t deter Govindram and he went
on to be known by the name of cotton king of the world. First he become a member of Bombay Cotton
Exchange and then of New York Cotton Exchange and many others throughout the world. He started
his firm in 1937 which sold vegetable oil and then diversified business to many other fields. Considering
the hostile environment for Indians at the time of British Raj; Govindram is nothing short of a pearl in
the ocean.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

“Role of Entrepreneurs in Economic Development” 79

Ghanshyam Das Birla (April 10, 1894 - June 11, 1983):

G.D Birla is the founder of the Aditya Birla group, now a multinational conglomerate having its
Base in Mumbai. Ghanshyamdas left the traditional business (to lend money on hocked items) of His
family and went to Bombay (now Mumbai) to start dealership in cotton. His venture was Successful.
Further in the years to come he diversified in various other industries. He started a paper mill, a sugar
factory, then a car factory, and also expanded his business in to cement, steel and also started a commercial
bank now known as United Commercial Bank which is still operational by the name of UCO Bank.
Now Aditya Birla group operates in more than 33 countries and employs over 133,000 with an annual
turnover of USD 35 billion.
Jahangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993):
Father of the Indian Aviation Industry. If JRD Tata started it then Ratanji Tata was the one who
made that in to a much larger success. The vision of his founder to set up a steel company was completed
by starting Tata Steel. And the other two wishes resulted in Indian Institute of Sciences and Tata Power.
JRD Tata was an aviator and got his commercial pilot license. He set up India’s first commercial airline
company known as Tata Airlines in 1932 which was rechristened as Air India in 1946 and is now India’s
national airline. For his achievement in business he was awarded the highest civilian award of India:
Bharat Ratna.
Dhirubhai Ambani (28 December 1932 - 6 July 2002):
Dhirubhai Ambani is the most famous businessman of India. Ask even a 5 year old in India,
and he/she will know about Dhirubhai Ambani or at least about his last name. In all his life, he learnt
and applied. From his student life in dusty lanes of a small village in Gujarat to the major seaport city of
Aden and finally in Bombay where he become the doyen of the Indian industry. All his life he had been
doing only one thing and that is to learn and apply. After doing his matriculation; though he wanted to
continue study, Dhirubhai went to Aden, Yemen to earn money as his home’s financial condition was not
good. In Aden he worked with a trading firm as a clerk. In those days, Aden was the second-most busiest
port in the world, and traders from across the world came there for business.
Entrepreneurship-Present Era:
C.K. Prahlad, Fortune at the bottom of the pyramid states that the need for innovation in
entrepreneurship. Entrepreneurs should follow the sand box approach in innovation. The reason is, sand
in box is free flowing, shifting boundaries i.e., free from exploration and even playful experimentation
with in extremely fixed specific constraints (the walls, straight & rigid). In countries like India with 700
million bottom-of-the pyramid. Consumers at varying level of income; the need for innovations that meet
these criteria is now become obvious. Nation urges Entrepreneurs to explore domestic opportunities To
succeed, one need to continuous innovation & to have continuous innovation, one need to tap thinking
of every one in enterprise. Innovation plays a key factor in an entrepreneurial quality.
Conclusion:
“An Entrepreneur Searches For Change, Responds To It And Exploits Opportunities. Innovation Is A
Specific Tool Of An Entrepreneur Hence An Effective Entrepreneur Converts A Source Into A Resource.”
-Peter Drucker, Management Guru.
Entrepreneurship is the lifeblood of any economy. Indian entrepreneurs are more about overcoming
barriers, obstacles, inspiring & surmount in their fields. Entrepreneurship is one of the important segments

ISBN: 978-93-5300-292-3 Technical Session - I

80 “Role of Entrepreneurs in Economic Development”

of economic growth. Innovation is a key factor that an entrepreneur brings in an overall change through
innovation for the maximum social good. The growth of entrepreneurship particularly in the small scale
sector can be traced to the Second World War boom which brought many enterprising people from
various walks of life. As someone said failures are the stepping Stones for Success. If we observe the way
any entrepreneur, their life is not a bed of roses. They faced many obstacles in the way of entrepreneurial
achievement. Furthermore, women can tell the condition of a nation, she acts as a central cohesive source
of support and stability, not only to her family but also to whole nation. There is saying where women are
respected, dwells God. Similarly where women are there in the industry dwells progress and prosperity.
The bottom line for all the entrepreneurial life taught the first lesson for success; and that is failure.
References:
yy Swami Vivekananda Entrepreneurship on Focus
yy Wikipedia, http://en.wikipedia.org/wiki/Entrepreneur
yy Jaggi Vasu dev, the 3 I‘mantras of entrepreneurs, Business Line, 2012
yy Tata steel India, Pioneers, The men of Steel, jemshedji Tata profile.
yy Scribd, History of entrepreneurship, entrepreneurship and SME Management.
yy Economics of the Indus valley civilization, by Chad greenwood
yy Ratnagar, Shereen (2006). Trading Encounters: From the Euphrates to the Indus in the Bronze Age. Oxford University Press, India
yy Ozgurzan, Peter Drucker on Entrepreneurship
yy The economist, Indian Entrepreneurs: 10 Greatest Businessman from History
yy C.K.Prahlad, Entrepreneurs to Explore domestic opportunities,2008.
yy Daniel Priestley, “The Future Of Entrepreneurship

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Educational Entrepreneurship – The Need of the Hour
B. Satyavani
Research Scholar, Dept of Commerce & Business Administration, Acharya Nagarjuna University, and
Assistant Professor, Dept of Management Studies, Vignan’s Nirula Institute of Technology & Science for Women, Guntur.
Abstract Much of the recent literature on improving education in India seeks to promote entrepreneurship as the solution
to raising educational quality and equity. But, the historical record documenting substantial and sustained departure from
conventional educational practices is scant despite numerous attempts at entrepreneurial innovation. This paper contends that
the challenge of entrepreneurially induced change is not due to a deficit of ideas or lack of volition on the part of those who seek
change. Rather it is due to intrinsic features of the educational system which defy modification. These include not only such matters
as a stubborn school culture, but also the very role of schools as organizations that must serve other organizations and depend
upon them for resources. The paper evaluates the record of new forms of organization such as charter schools and educational
management organizations as well as other well intentioned strategies for transforming Indian education. It concludes that
successful educational entrepreneurship must overcome a deeply-rooted institutional conservatism and resistance to change.
Key words: Educational Entrepreneurship, Educational Management Organizations, Educational quality and equity
and Indian education.

Introduction
There is a growing interest in the role that entrepreneurship can play as a catalyst to achieve
economic and social development objectives, including growth, innovation,­ employment, and equity.
An increasing area of interest in this field is how a range of actors—including governments, the private
sector, and international organizations—can bolster entrepreneurs’ success and progress on broader
socioeconomic goals. The potential beneficial spillovers of entrepreneurship and the potential success of
entrepreneurs have garnered attention—provoking interest in interventions­ that stimulate individuals’
decisions to become and succeed as entrepreneurs. Entrepreneurship promotion efforts can include the
easing of business environment constraints, enhancing access to finance and credit, as well as the provision
of support to strengthen business practices and enterprise management.
Embedded within a number of entrepreneurship promotion activities are efforts that aim to
develop mind sets, knowledge, and skills associated with entrepreneurial success. Research suggests that
several of these mind-sets, knowledge, and skills can be learned, thus situating educational institutions
and training programs firmly within the broader discussions around entrepreneurship promotion.
The Concept of Educational Entrepreneurship
The term entrepreneurship has been used commonly in recent years to describe strategies to
improve education. Because the term has been associated generically with the development of new
alternatives in the marketplace, its educational variant has typically referred to a system of school choice,
and especially charter schools and vouchers. The general view is that the rewards of the marketplace provide
incentives for undertaking the risk of innovation that is required to develop better educational alternatives.
Even in the public school districts it is not unusual to hear of a quest for entrepreneurship through the
establishment of new schools, and especially small high schools or to hear of “intrapreneurship,” the quest
to transform an existing school.
What is clear from the literature on entrepreneurship is that the term is used to describe a wide
range of phenomena. To some it is the establishment of a new enterprise under risky conditions and with
a high potential financial return for taking that risk. Others see entrepreneurship as closer to the act of
invention, also with great risk and great potential payoffs. Yet others attribute entrepreneurship to any act
that is likely to add considerable value to a product or service. Entrepreneurship is a globally recognized
phenomenon lacking a single precise definition. Early in the 20th century, the role of entrepreneurship
82 Educational Entrepreneurship – The Need of the Hour

in promoting innovation and implementing change in an ­economy by introducing new products or

processes. Researchers define entrepreneurship as a process of discovery; the acting upon previously
­unnoticed— and often marginal—profit opportunities. Some definitions tie entrepreneurship only
broadly to specific economic activities, describing a process of opportunity recognition to create value
and act upon that opportunity.
Emergence of Education and Training for Entrepreneurship
Even against the backdrop of debates about whether entrepreneurship can be learned, there
is a growing global interest in entrepreneurship education and training (EET and by its inclusion in
international agendas and programs. Few researchers suggests that this popularization of EET is in part
driven by the mutual self-interests of key stakeholders, including policy makers (the political imperative
for job creation), students (more graduates competing for fewer jobs, seeking new opportunities and ways
to set them-selves apart), and education institutions (to satisfy policy makers as well as the student market
through course offerings). Taken together with indications that aspects of entrepreneurship can be taught
and learned, education and training systems are emerging as a key component of broader discussions
about the pro-motion of entrepreneurship.
These broad definitions of entrepreneurship suggest a potentially key role entrepreneurship in
education, through innovation and managerial breakthroughs, providing the spark needed to improve
the productivity, quality, and equity of Indian education. Schools are the focus of great expectations,
but habitually charged with disappointing results and an inability to meet expectations. Education is
widely believed to be the solution to major social challenges including those of workplace productivity,
economic competition, social equity, civic behavior, technology, cultural knowledge, and effectiveness of
democracy. In response to these persistent issues, schools are under constant pressure to change, often in
conflicting directions, not only in the U.S., but in most countries.
Types of Entrepreneurship education and training (EET) Programs
Entrepreneurship education and training (EET) programs can be classified under two related
but distinct categories: education programs and training programs. Broadly speaking, both aim to
stimulate entrepreneurship, but they are distinguished from one another by their variety of program
objectives or outcomes. While differing from program to program, academic entrepreneurship education
programs tend to focus on building knowledge and skills about or for the purpose of entrepreneurship.
Entrepreneurship training (ET) programs, by contrast, tend to focus on building knowledge and skills,
explicitly in preparation for starting or operating an enterprise (Volkmann et al. 2009; GEM 2010a).
While these two categories are conceptually distinct, it should be noted that in practice there are instances
where the characteristics of EE and ET overlap or are integrated into a single program.
Advancing the classification of EET, programs can also be distinguished by their target audiences.
The academic nature of EE means these programs target two groups in particular: secondary education
students and higher education students, the latter including both graduate and undergraduate students
enrolled in formal degree-granting programs. By contrast, ET programs target a range of potential and
practicing entrepreneurs who are not part of formal, degree-granting programs.
Potential entrepreneurs targeted by ET programs can include, at one end of the range, vulnerable,
unemployed, inactive individuals, or necessity-driven potential entrepreneurs, and at the other end of
the range, highly skilled, innovation­-led, or opportunistic potential entrepreneurs. Likewise, the range of
practicing entrepreneurs runs from individuals owning informal, micro- and small enterprises all the way
to high-growth potential enterprise owners. Building on these concepts, this study proposes the following
definitions for classifying EET programs according to both program type and target audience.
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Educational Entrepreneurship – The Need of the Hour 83

ŠŠ EE—for Secondary and Higher Education Students. This category generally refers to the building
of capabilities, skills, and mindsets about or for the purpose of entrepreneurship. The goal is to
expand the pool of potential future entrepreneurs. Thus, it is generally integrated within formal
education institutions at the secondary and higher education levels (including universities,
colleges, and vocational schools). In this context, this study examines EE programs targeted at
both secondary and higher education students enrolled in formal secondary, undergraduate, and
graduate degree-granting programs.
ŠŠ ET—for Potential and Practicing Entrepreneurs. This category generally refers to the building
of knowledge and skills in preparation for starting or operating a business. Thus, the goal of ET
is to aid potential entrepreneurs to become entrepreneurs as well as help current entrepreneurs
become higher performing entrepreneurs. The broad nature of these target audience definitions
means that ET programs can target a range of potential and practicing entrepreneurs, regardless
of age, level of education, prior experience, or circumstances (e.g., highly skilled and educated,
self-employed, underemployed, and informal economy workers).
Business start-up as educational goal?
There are some general elements in the literature on what entrepreneurship education is, should
be or must be. It is described as perhaps the most important economic development mechanism
Entrepreneurship education is the structured, formal conveyance of entrepreneurial knowledge, namely
the concepts, skills and mentality individuals use during start-ups and development of growth-oriented
ventures
Entrepreneurship education is the process of providing individuals with the concepts, creativity
and skills to recognise opportunities that others have overlooked, and to have the insight, self-esteem
and knowledge to act were others have hesitated. Fostering entrepreneurship also means having a vision
of a future with a lot of possibilities. However, entrepreneurship education is about promoting change
in attitudes to ‘increase the number of students who view ‘business start-up’ as a viable career Extra
beneficial ways to conduct entrepreneurship education are to arrange competitions, live case discussions
(with successful entrepreneurs), students creating and running mini-companies, and placement in
entrepreneurial companies, in other words just like it is described as a practice There is a consensus that
students can be successfully endowed with an entrepreneurial culture. In contrast to traditional education,
viewed as transformation of knowledge and skills, entrepreneurship education is said to be about fostering
and changing attitudes and motives. The agreed importance of entrepreneurship education is not related
to entrepreneurship education in itself; it is related to the assumed effects of it.
Vitality of Entrepreneurial Education
These broad definitions of entrepreneurship suggest a potentially key role entrepreneurship in
education, through innovation and managerial breakthroughs, providing the spark needed to improve
the productivity, quality, and equity of American education. The focus of this paper is to ask whether
it is a shortage of entrepreneurialism or obstacles to entrepreneurial success that has accounted for the
inertia of the educational industry. Schools are the focus of great expectations, but habitually charged
with disappointing results and an inability to meet expectations. Education is widely believed to be the
solution to major social challenges including those of workplace productivity, economic competition,
social equity, civic behaviour, technology, cultural knowledge, and effectiveness of democracy. In response
to these persistent issues, schools are under constant pressure to change, often in conflicting directions,
not only in India, but in most countries.

ISBN: 978-93-5300-292-3 Technical Session - I

 84 Educational Entrepreneurship – The Need of the Hour

One of the most common complaints about education is its resistance to change. Historically,
there have been many attempts to shift the direction of education in the U.S. through new ideas, new
leadership, national campaigns for excellence, and instilling fears of losing status or economic and military
superiority to competitors because of an under performing educational system.
Learning Entrepreneurial Education
Many scholars state that there is only one way to learn to become entrepreneurial, and that is by
learning through own experience. Cope leans on a variety of scholars when stating that there seem to be
no shortcuts, it “can only be acquired through learning-by-doing or direct observation”. The research that
has been done on how real-life entrepreneurs learn is however largely disconnected from the educational
domain, and offers little advice to teachers. This leaves teachers with the unanswered question “learning-
by-doing-what?” There is a need for robust advice on what to let students do in order to develop their
entrepreneurial competencies.
Activities that trigger entrepreneurial competencies
Previous research can give some initial advice on learning-by-doing activities that can trigger
the development of entrepreneurial competencies. Teachers should give their students assignments to
create value (preferably innovative) to external stakeholders based on problems and/or opportunities the
students identify through an iterative process they own themselves and take full responsibility for. Such
assignments lead to repeated interactions with the outside world, which triggers uncertainty, ambiguity
and confusion. This should be regarded as a positive outcome and a source of deep learning. To alleviate
the levels of difficulty and uncertainty such an assignment can result in, a team-work approach should be
applied giving the students access to increased creative ability and peer learning opportunities. Sufficient
time allowing for establishing fruitful relationships with external stakeholders should also be given to
the students, preferably months or years. Robust advice on how to manage the value creation process
should be given to the students, some of which will be outlined below in the Figure which outlines
the relation between educational assignments, triggered activities / events and developed entrepreneurial
competencies.
Educational Assignments Trigger emotional evetns, which in turn develop
situations and activities entrepreneurial competencies
Creation Interaction with outside Increased self efficacy
world
Value Creation Uncertainty and ambiguity in Increased uncertainty and
learning environment ambiguity tolarance
Venture Creation Team work environment Increased self Insights

Sustainable Venture Overcome competency gaps Formation of entrepreneurial

Creation identity

Presenting in front of others Increased marketing skills

Figure 1. A model of entrepreneurial education and its outcomes. The relationship between educational assignments,
emotional events / situations / activities and developed entrepreneurial competencies.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Educational Entrepreneurship – The Need of the Hour 85

The assessment of such an assignment should concentrate on the activities triggered rather than
the developed entrepreneurial competencies Each individual’s contribution in terms of interaction with
outside stakeholders should be assessed and supported by the teacher continuously. It is the interactions
and activities that drive the learning process, and these interactions and activities should therefore be the
focus of teachers’ assessment rather than the evasive entrepreneurial competencies. Assessment strategies
could include asking students to report names and other practical information about external stakeholders
contacted, occurrence of external stakeholders willing to engage with the students, and letting students
reflect on whether the value creation attempts were appreciated by the external stakeholders Such
assessment strategies will lead to what is often called constructive alignment, i.e. when the assessment
applied is in alignment with what the students need to do in order to achieve the learning outcomes stated
by the teacher
Future Perspectives
In the future we can hope for increased understanding of when, how and why learning-by-doing
works and how it can be integrated into education on all levels and for most (if not all) subjects. The tools,
methods and concepts presented in this chapter have hopefully been contextualized to education resulting
in curriculum material supporting teachers and students, a task preferably accomplished through close
collaboration between experienced and committed teachers on all levels of education and researchers in
entrepreneurship and education, in line with recommendations by Elmore (1996). A more comprehensive
list of tools, methods and concepts useful for iterative student-driven value creation processes in education
will hopefully be compiled, together with illustrative case studies outlining generalizable features. The
code will hopefully be found for how to unlock the door to the classroom, leading to teachers widely
adopting effective and efficient entrepreneurial education pedagogy. If so, it will have happened through
a concerted effort involving teachers, students, parents, principals, policy makers, researchers, authorities,
international associations and other key stakeholders, all playing their important role in the substantial
challenge of succeeding in educational reform. In the future we will hopefully also see the establishment
and strengthening of explicit support structures in schools, colleges and universities as well as other crucial
management and organizational structures, supporting teachers and students in the task of interacting
with the outside world leading to tandem learning and value creation.
Conclusion
Despite its promising effects on students and society, it is important to keep in mind that the field
of entrepreneurial education is in a quite early stage of development. It is still regarded as an innovative
but marginal pedagogical approach spurring much interest but also much confusion among various
stakeholders. There is tremendous work remaining if we are to succeed in making effective and efficient
entrepreneurial education available to a majority of people in the educational systems of the world.
And the road to achieving such an ambitious goal is still long, winding and risky. There is a need to
increase awareness of entrepreneurial education as a pedagogical approach relevant to all students and
on all levels of education, a need for more and closer collaboration between researchers and practitioners
in the two domains of education and entrepreneurship, a need for closing the gap between stated and
desired effects of entrepreneurial education and a need for increased understanding of when, how and
why entrepreneurial education can develop entrepreneurial competencies, especially on primary and
secondary levels of education and with an embedded approach.

ISBN: 978-93-5300-292-3 Technical Session - I

86 Educational Entrepreneurship – The Need of the Hour

References
yy Alberti, F. (1999). Entrepreneurship Education: scope and theory, in C. Salvato, P. Davidsson & A. Persson
yy Bird, B.J. (2002-2003) Learning Entrepreneurship Competences: the self-directed learning approach, International Journal of
Entrepreneurship Education, 1(2), pp. 203-227.
yy Giles, D. E. & Eyler, J. 1994. The theoretical roots of service-learning in John Dewey: Toward a theory of service-learning. Michigan
Journal of Community Service Learning, 1, 77-85.
yy Gilinsky, Jr., A. (2002), Turins Networks, Inc., Entrepreneurship Theory and Practice (ET & P), 27(1), pp. 77-91.
yy Henry, C., Hill, F. & Leitch, C. (2003). Entrepreneurship Education and Training. Aldershot: Ashgate.
yy Kirby, D. A. 2004. Entrepreneurship education: can business schools meet the challenge? Education + Training, 46, 510-519.
yy Kliebard, H. M. 1988. Success and failure in educational reform: Are there historical “lessons”? Peabody Journal of Education, 65,
143-1Solomon, G.T, Duffy, S. & Tarabisky, A. (2002) The State of Entrepreneurship Education in the United States: a national survey
and analysis, International Journal of Entrepreneurship Education, 1(1), pp. 65-86.57.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Government in Entrepreneurship Development
*B.V. Brahmaji, **Harika
*Assistant Professor **Student Coordinator-MBA
Department of MBA V.S. Lakshmi Engineering College for Women, Matlapalem
Abstract: In recent decades, economic growth in countries around the world has become increasingly dependent on
the dynamism of small and medium sized enterprises (SMEs). This is especially important in the transition economies.
We have focused on (i) attitudes of entrepreneurs in the private sector towards the role of government in SME development
through provision of assistance to SMEs in (ii) the business environment in which firms operate, and (iii) attitudes of the
employed in government sector towards the role of government in SME development through the provision of assistance to SMEs.
Without the government support they can’t do anything. Government will always support the Eco-Friendly Industries.
Pattern of entrepreneurial activities in India has undergone a sea change in the later half of the 20th century, more towards the
end of it. From being a government dominated sector in the immediate post-independence scenario to a one with reasonable
space for operation of private entrepreneurs, this transition has not been a smooth one at all. In fact, at every step, the country
has learnt by experience. We attempt to briefly and sequentially enumerate the policies followed by the government of India
with respect to entrepreneurial activities since its birth as an independent democracy, and their economic implications. We
attempt to bring out two main issues in this context, one being the public sector - private sector debate, and the other being
the foreign entrepreneur - domestic entrepreneur tussle. We use some elementary microeconomics in trying to show the problems
posed by these issues, and methods in which the government may intervene to improve situations.

Introduction
Pattern of entrepreneurial activities in India has undergone a sea change in the later half of the
20th century, more towards the end of it. From being a government dominated sector in the immediate
post-independence scenario to a one with reasonable space for operation of private entrepreneurs, this
transition has not been a smooth one at all. In fact, at every step, the country has learnt by experience.
What we attempt to do in this paper is to bring out two main issues in this context, one being the public
sector - private sector debate, and the other being the foreign entrepreneur ñ domestic entrepreneur
tussle. We use some elementary microeconomics in trying to show the problems posed by these issues, and
methods in which the government may intervene to improve situations. We also attempt to briefly and
sequentially enumerate the policies followed by the government of India with respect to entrepreneurial
activities since its birth as an independent democracy, and their economic implications. Section 2 briefly
discusses the scenario of the entrepreneurial sector as it was before The New Industrial Policy of 1991,
Section 3 briefly discusses the New Industrial Policy of 1991, section 4 tries to analytically
provide a solution to the public sector-private sector debate, section 5 addresses the foreign Vs domestic
entrepreneur issue and section 6 concludes the discussion.
Entrepreneurship
The capacity and willingness to develop organize and manage a business venture along with any
of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new
businesses.
(The activity of setting up a business or businesses, taking on financial risks in the hope of profit.)
Entrepreneurship Development
The Entrepreneurship development involves equipping a person with the required skills and
knowledge needed for starting and running the enterprise.
88 Role of Government in Entrepreneurship Development

Role of Government in Entrepreneurship Development

To Encourage the Entrepreneurs financially the government of India establishes Financial
Institutions Such as Industrial Development Bank of India (IDBI) and the Small Industries Development
Bank of India (SIDBI).
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 balances regional
development. The government set programmes to help entrepreneurs in the field of technique, finance,
market and entrepreneurial development so that they help to accelerate and adopt the changes in industrial
development. Various institutions were set up by the central and state governments in order to fulfill this
objective.
1. Small industries development organization (SIDO)
SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing.
SIDO is an apex body at Central level for formulating policy for the development of Small Scale Industries
in the country.
2. Management development Institute (MDI)
MDI is located at Gurgaon (Haryana).It was established in 1973 and is sponsored by Industrial
Finance Corporation Of India, with objectives of improving managerial effectiveness in the industry.
3. Entrepreneurship development institute of India (EDI)
Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit
institute, set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd.,
ICICI Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive
entrepreneurship development centres and institutes.
4. All India Small Scale Industries Board (AISSIB)
The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render
advise to the Government on all issues pertaining to the small scale sector.
5. National Institution of Entrepreneurship and Small Business Development (NIESBUD)
It was established in 1983 by the Government of India. It is an apex body to supervise the
activities of various agencies in the entrepreneurial development programmes.
6. National Institute of Small Industries Extension Training
It was established in 1960 with its headquarters at Hyderabad. The main objectives of national
Institute of Small Industries Extension Training is:
Directing and coordinating Persons for training of small entrepreneurs.
7. National Small Industries Corporation Ltd. (NSIC)
The NSIC was established in 1995 by the Central Government with the objective of assisting the
small industries in the Government purchase programmes. The corporation provides a vast-market for
the products of small industries through its marketing network.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Government in Entrepreneurship Development 89

8. Risk Capital and Technology Finance Corporation Ltd .(RCTFC)

RCTFC was established in 1988 with an authorized capital of 15 crores rupees.The main objectives
of RCTFC are provision of risk capital for the extension and expansion of entrepreneurial development
and venture capital for the projects with high techniques for technology development and transfer.
9. National Research and development corporation (NRDC)
NRDC was established in 1953 under Department of Science and Industrial Research under
Government of India. Its main objectives are:
ŠŠ Providing assistance in technology transfer
ŠŠ Transfer of technology
ŠŠ Establishing relations with various technology institutions and collecting various indigenous
techniques developed by them.
10. Indian Investment Centre
This is an autonomous organization established by Central Government. Its main objective is to
assist in promoting foreign cooperation with Indian entrepreneurs and providing necessary information
to foreign entrepreneurs.
B) Institutions set up at State Level
There are a number of institutions establishes at state level for organizing, developing, developing,
assisting and making successful entrepreneurial development programmes. Prominent among these are:
ŠŠ Small Industries Service Institute (SISI)
ŠŠ State Financial Corporation (SFC)
ŠŠ State Small Industries Corporation (SSIC)
ŠŠ District Industries Centers (DIC)
ŠŠ Technical Consulting Organization Ltd. (TCO)
ŠŠ Industrial Directorates
ŠŠ Commercial and Cooperative Banks
ŠŠ State Industrial Development Corporation
ŠŠ Industrial Estates
ŠŠ State Industries Corporation
Industrial Policy Resolution, 1956
The government ís faith in the public sector was strongly expressed in the year 1956, when the
Industrial Policy Resolution, 1956, was adopted. Salient features of this policy were:
ŠŠ Rapid expansion of the public sector to cover almost all industries, barring a few.
ŠŠ In the ones remaining, the government was to play the role of pioneer entrepreneur, followed by
individual private sector initiatives.
ŠŠ The government would have extensive control and regulation over the activities of the private
sector units.
ŠŠ To exercise this control, the famous industrial Licensing System was adopted.

ISBN: 978-93-5300-292-3 Technical Session - I

90 Role of Government in Entrepreneurship Development

ŠŠ To deter direct foreign initiatives, laws like Foreign Exchange Regulation Act (FERA) were
introduced.
ŠŠ To encourage import substitution, high tariff rates were put into place.
ŠŠ To encourage development of Small Scale Industries (SSI) sector, by providing them huge
concessions and subsidies.
Industrial licensing system
Before making an investment, an entrepreneur had to obtain first approval in principle from the
Ministry of Industries. After having been granted this approval, he had to carry the issued Letter of Intent
(LoI). Armed with this LoI, he had to make other arrangements for his project. If he needed to import a
capital good, he had to obtain a Capital Good Import License from the Chief Controller of Exports and
Imports in the Ministry of Commerce, the formal approval for which, however, was given by the Ministry
of Industries. If he had to go to the capital market, he needed a separate approval from the Controller of
Capital Issues in the Ministry of Finance and so on and so forth!!!.
Monopolies and Restrictive Trade Practices Act (MRTP)
This Act, passed in the year 1969, was another tool through which the government could exercise
its control over the industries. This Act aimed at preventing restrictive trade practices on one side and
concentration of economic power on the other. Under this Act, undertakings whose assets are greater
than or equal to Rs. 20 crores had to register themselves with the MRTP Commission. They have to take
permission from the government for substantial expansion, establishment of new undertakings, mergers
and Acquisition. The MRTP Commission was given authority to investigate and control all restrictive
trade practices.
The New Industrial Policy, 1991
According to Bhagwati (1992), there were three main factors behind the failure to bring about
entrepreneurship development in India:
ŠŠ Extensive bureaucratic controls over production, investment and trade,
ŠŠ Inward looking policies for trade and foreign investment, and
ŠŠ A huge public sector. Mainly keeping these issues in mind, the 1991 Industrial Policy adopted
the following sub-policies:
»» Abolition of the Industrial Licensing system, except for investment in a few industries for
location or environmental reasons.
»» Relaxation of the restrictions on large industrial houses brought about by the MRTP Act.
»» Easing of entry requirements for foreign direct investment, keeping the playing field level for
the domestic producers.
»» Allowing private investment in a number of industries previously reserved for the public
sector, thereby reducing its size.
»» A new policy called for Exit Policy was constituted, which required the loss making firms to
be reorganized or to shutdown. A national renewal fund (NRF) for assisting workers currently
employed in enterprises that would have to be trimmed or closed down altogether was formed
so as to facilitate this policy, but this has not been implemented very strongly owing to severe
political pressure of the consequences of massive job losses.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Government in Entrepreneurship Development 91

Supportive Role:
ŠŠ Supportive Polices. (Less Rules and Regulations)
ŠŠ Government Funding to Eco-Friendly Industries.
ŠŠ Based on the industries (Small, Medium, and Large) the taxes should be imposed.
ŠŠ Developing Credit System (Installment payments of Taxes etc.,)
ŠŠ Providing Infrastructure facilities.
ŠŠ Support to the Young Entrepreneurs.
ŠŠ Established IDBI Bank (Industrial Development Bank of India) to support the Industries form
sickness.
ŠŠ Giving a chance to take the help of FDI.
ŠŠ Support to the Innovational Ideas.
ŠŠ Encouraging small scale Industries by support financially.
Conclusion
We have discussed in brief the policies followed by the Indian Government with respect to
entrepreneurship since independence, and have observed that changes were very slow in coming. It took
two and a half decades to understand what was good for the economy at what time. We have also seen
that it cannot be said whether more government intervention or less government intervention is good for
the society or not; it depends crucially on the goals that have been set to achieve. Also, in a situation when
a country like India, being a member of the WTO, cannot erect entry barriers to foreign investments
from other member countries, we have seen that it can strengthen the domestic firms through various
policies of indirect assistance.

ISBN: 978-93-5300-292-3 Technical Session - I

 Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An
Empirical Study
Dr. Prasad Chundi
(Freelancing Business & Law consultant), HoD – Dept.of Business Administration, Scient Institute of Technology,
Imbrahimpatnam, R.R. Dist.Telangana State E.mail: [email protected]

Abstract: The Entrepreneurship Development policy of government of India is projected to empower the manpower system
of the country to gain competitive advantage in the global market. Entrepreneurship is not new to India. In fact to quote
from the Indian Industrial Commission Report (1916-1918)–”At a time when the West of Europe, the birth place of modern
industrial system, was populated by uncivilized tribes, India was famous for the wealth of her rulers and for high creative skill
of her craftsmen. And even at a much later period, when the merchant adventures from the West made their first appearance
in India, the industrial development of this country was, at any rate, not inferior to that of the more advanced European
nations.” Andhra Pradesh is strategically located on the Southeast coast of India and is a natural gateway to East and Southeast
Asia. The State has a population of 4.93 crores.
Introduction
India is a fast developing economy, emerging as one among the top industrial countries in the
world. The higher education policy of government of India is projected to empower the manpower
system of the country to gain competitive advantage in the global market. The supply of intellectually
equipped and technically qualified manpower in the form of software engineers, scientists ,Entrepreneurs
and other professionals to the global market is a good sign to the country. India today has reached that
stage of the demographic shift wherein more than 60 percent of the population is in the economically
active age group of 15-59 years, commonly referred to as the DEMOGRAPHIC DIVIDEND. For India
to tap this dividend it is necessary that the economy is able to generate enough job opportunities to
productively absorb this economically active population. We do keep mentioning of 500 million strong
workforce by 2022 but India faces challenges in reaping this demographic dividend considering that
illiteracy levels among the labour force is still high and between 70-80 percent of the labour force have
education levels below secondary. Almost 48 percent of the workforce is engaged in agriculture while
contribution of agriculture to GDP is not more than 16 percent. This situation may be attributed to
the low level of education and thereby inability to access decent jobs in the non-farm sector. In terms of
status of employment 52 percent of the workforce is self-employed as own-account workers or helpers, 30
percent as casual workers while only around 18 percent have regular jobs. This has resulted in more than
90 percent of the workforce engaged in informal jobs and slowing down the structural transition from
farm to the non-farm sector. The policy focus in the labour market has therefore been to create decent
jobs which can give the workforce a reasonable standard of living. While the emphasis has been on wage
employment it has been felt essential to promote self-employment or to be specific entrepreneurship as
an entrepreneur would be in a position to create more jobs.
Entrepreneurial Environment in India
The Entrepreneurship Development policy of government of India is projected to empower the
manpower system of the country to gain competitive advantage in the global market. Entrepreneurship
is not new to India. In fact to quote from the Indian Industrial Commission Report (1916-1918)–”At a
time when the West of Europe, the birth place of modern industrial system, was populated by uncivilized
tribes, India was famous for the wealth of her rulers and for high creative skill of her craftsmen. And
even at a much later period, when the merchant adventures from the West made their first appearance
in India, the industrial development of this country was, at any rate, not inferior to that of the more
advanced European nations.” In fact an earlier version of the current Make in India policy was the
Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study 93

Swadeshi movement launched in 1905 during the pre-Independence era to boycott British made goods
and use Indian made goods. The movement saw the development of the Indian textile industry, the iron
& steel industry by the Tatas, publishing of vernacular newspapers, setting up of vernacular medium
educational institutions, financial institutions etc.
However, post-independence the policy focus of increased public investment in heavy industries
and setting up of PSUs did not provide an ideal environment for entrepreneurship. The main problems
faced by an entrepreneur were lack of mentoring facilities, technology support or easy availability of
credit. Though different Reports on employment highlighted the need for promoting entrepreneurship as
means of self-employment, entrepreneurship did not scale up. To mention a few, in the S.P Gupta “Special
Group Report on Targeting 10 million Employment Opportunities Per Year” (2002) recommended
“appropriate programmes should be launched to increase entrepreneurial capabilities and skill for self-
employment.” The Montek Singh Ahluwalia “Report of the Task Force on Employment Opportunities”,
July 2001 also mentions about developing entrepreneurship ability among the newly self-employed.
The Report even recommends entrepreneurship training for the informal sector. To quote, “A large part
of the employment generated by the economy will be self-employment in the informal sector. These
self-employed entrepreneurs need training of the multi-skill variety, going beyond production skills to
include marketing, finance and accounting and elementary management. Such skills cannot be developed
through structured formal training but requires the guidance of “mentors” in actual business conditions”.
Need of the Study
There is a rising demand for manpower and employment opportunities across various countries
all over the world. Since globalization has blurred borders people move across continents to take up
employment opportunity. But at the same time it is an obvious fact that the demand is most often for
the qualified and suitably skilled manpower only. Various studies and research have shown that providing
employment opportunities in Government sector as well as private sector is a big challenge for the public
governments influencing the various factors on it. This being the scenario, most institutions of higher
learning, state and National Government taking positive initiatives aim at incorporating entrepreneurial
building skills in their curriculum. India has a huge band of population in the young age group and
statistics show that most of them are professionals. The fact that they are technically knowledgeable alone
is not enough. They need to be trained in various aspects of employability and entrepreneurial skills.
Based on the need the researcher has taken the problem to study the new approach to Entrepreneurship
development in India and concept of startups in modern times. The sun rising state of Andhra Pradesh is
one among others potentially utilizing the natural resources as well as human resources in order to create
the new avenues for skill development and entrepreneurship for sustainable development.
However, entrepreneurship in India has been confined to being own-account workers with one
or more helpers and did not expand in size beyond that. As maybe seen from the Fifth Economic Census
2005, 95 percent of establishments were engaging not more than five workers and they accounted for
almost 64 percent of the employment. If the employment size of a unit is taken as not more than 10
workers then 98.5 percent of the establishments are covered. (Table-1)
Table-1 Distribution of Establishments by size class of Employment
Size by class of
S. No Item Year
Employment
1 1-5 Establishments 1990 1998 2005
Persons usually working 93.4% 94.0% 95.1%

ISBN: 978-93-5300-292-3 Technical Session - I

94 Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study

Size by class of
S. No Item Year
Employment
2 6-9 Establishments 54.5% 58.6% 64.2%
Persons usually working 3.5% 3.3% 3.4%
3 10 & above Establishments 8.4% 8.3% 10.2%
Persons usually working 3.1% 2.8% 1.5%
37.1% 33.1% 25.5%

Source: Table 5.12, Chapter V, Fifth Economic Census 2005- All India Report, GoI
To promote self-employment as a means of job-creation and to promote entrepreneurship for
further job creation, the Micro, Small and Medium Enterprises (MSME) Act, 2006 was enacted to
facilitate the promotion, development and enhancing the competitiveness of micro, small and medium
enterprises. Earlier to that the small scale industries (SSIs) were regulated by two sections of the
Industries (Development & Regulation) Act, 1951 which led to absence of an institutional regulatory
and consultative mechanism to capture and guide the progress of an SSI unit from being a micro unit to
a small scale and eventually to medium scale one. The earlier Act also excluded the fast emerging service
sector. But even after the implementation of the MSME Act, 2006 the high proportion of unregistered
MSME units outside the purview of the Act is a matter of concern.
The government has over time implemented policies for the promotion of the small industries
which included providing concessional credit, training in entrepreneurship development, marketing
assistance etc. But the entrepreneurial growth did not take off in a big way in India as compared to
other countries because of the procedural hassles, stringent labour laws, economic regulations etc that
the establishments had to face. Further with import liberalization and entry of MNCs into India, the
Indian small scale entrepreneurs are not able to face the competition and are finding it difficult to survive.
In this context to quote from the Second National Commission on Labour (2002) “New economic
changes will provide more opportunities and not enough jobs. Therefore, one has to take advantage of
the opportunities. Both in urban and rural areas, there may not be an impressive rise in wage employment
but there will probably be enough scope for self-employment. The emphasis, therefore, has to be not on
wage jobs but on creating self- employed persons or entrepreneurs. The entire system of training and
education will have to give emphasis on the development of entrepreneurship”.
In keeping with this spirit the Ministry of MSME is implementing the entrepreneurship
development and skill upgradation schemes through appropriate training facilities. The Ministry has
set up three national level Entrepreneurship Development Institutes viz; The National Institute for
Entrepreneurship and Small Business Development (NIESBUD) (1983) at Noida (Uttar Pradesh),
National Institute for Micro, Small and Medium Enterprises (NI-MSME) (1960) at Hyderabad, and
Indian Institute of Entrepreneurship (IIE) (1993) at Guwahati, to inculcate entrepreneurial culture
especially among the first generation entrepreneurs. There is the scheme for Providing Support for
“Entrepreneurial and Managerial Development of SMEs through Incubators” in implementation since
2008. There is the MSME Technology Centres (earlier Tool Room & Technology Development Centres)
which provide high end skill training to the youth. A national award scheme has been initiated by
MSME for outstanding performance in Entrepreneurship, Research and Development, Innovation, Lean
Manufacturing Techniques and Quality Products.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study 95

In addition the creation of Self Help Groups cannot be underestimated. Self Help Group is a
homogeneous group of micro entrepreneurs which are formed voluntarily to save whatever amount they
can and mutually agree to contribute to a common fund of the group from which small loans are given
to the members for meeting their productive and emergent credit needs on rate of interest and terms
decided by the group. These have helped in providing livelihood opportunities to group of women to
start their own business and break the shackles of poverty. Some of the best case entrepreneurial models
are the SEWA, Kudumbashree etc. Though entrepreneurship has been privy to India and despite various
schemes being in place the country has not witnessed the natural gradation from self-employment to
entrepreneurship as part of the growth process excepting a few cases.
Entrepreneurship climate in Andhra Pradesh
Andhra Pradesh is strategically located on the Southeast coast of India and is a natural gateway
to East and Southeast Asia. The State has a population of 4.93 crores (as per population census - 2011),
accounting for 4% of India’s population, residing in 4.9% of geographical area. The State is endowed
with abundant natural resources (Barytes, Limestone, Bauxite, and a number of minor minerals), fertile
land and river basins, water resources, extensive canal system and conducive agro-climatic conditions. The
State has the second longest coastline in India and is also one of the largest producers of marine products.
At current prices, the Gross State Domestic Product (GSDP) of Andhra Pradesh was 4,75,859 crores
in 2013-14. Between 2004-05 and 2012-13, the average annual GSDP growth rate of Andhra Pradesh
was 7.25% while the average per capita income at (current prices) increased from 46,345 in 2008-09 to
88,876 in 2013-14.
The Advanced Estimate for GSDP in 2014-15 is 5,20,030 crore and the target for GSDP in
2015-16 is 6,36,606 crore (both at current prices). Over the years, the State has established a strong
presence in agro and food processing, textiles, chemicals & petrochemicals, pharmaceuticals, metallurgy,
electronics and electrical engineering sectors.
Under the stable leadership of Sri. N Chandra Babu Naidu, Chief Minister of Andhra Pradesh has
identified development of MSMEs as a catalyst for job creation and poverty mitigation and Government
of AP has accorded top priority to their development. In parallel, there is significant thrust on encouraging
startups and setting up incubation centres to provide a conducive eco-system for MSME. The MSME
sector in AP manufactures a variety of products. There is a high concentration of micro and small units
in the food sector, mineral and building materials sector, drugs and pharmaceuticals, fabricated materials,
trading and service sector. The Andhra Pradesh MSME Policy 2015-20 is aimed at “establishing state-of
the art infrastructure, advancing inclusivity, fostering innovation and creating employment opportunities
across different skill sets”.
Strategic advantages that Andhra Pradesh State
Robust Infrastructure
Andhra Pradesh has robust infrastructure comprising good road and rail network, 4 major ports,
4 active airports and 24X7 power for industrial/commercial use. Additionally, the State is creating a land
bank of 10 lakh acres to facilitate industrial development. Mega projects like Vizag-Chennai Industrial
corridor (VCIC) and Chennai-Bengaluru Industrial Corridor (CBIC) will help develop new economic
centres in the State, further giving fillip to industrial development

ISBN: 978-93-5300-292-3 Technical Session - I

96 Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study

Large base of Skilled Manpower

The State has over 120 polytechnics, 225 engineering colleges and several management institutes
which meet the industries requirements for skilled manpower. The State also boasts of cordial labour
relations as well as general peace and order owing to GoAPs welfare policies (Andhra Pradesh was the
first state to amend Contract Labour Act to define core and non-core activities). Last but not the least,
Andhra Pradesh is uniquely positioned to access the global talent pool by leveraging a strong diaspora
active in this sector.
The factors inhabiting in up gradation process
In the entrepreneurial ecosystem the journey of an entrepreneur begins from conceiving an idea
to developing it into a project proposal for starting a business. The handholding is required at this stage
which is lacking. The entrepreneur is saddled with regulatory hurdles and financial blocks in moving the
startup ahead. The availability of risk capital from banks or venture capital companies is limited. Poor
infrastructure availability also increases the operational costs for the startups. To quote the National
Knowledge Commission, “50% of the entrepreneurs experienced difficulties while seeking statutory
clearances and licenses. Two-thirds faced hassles while filing taxes and 60% claimed to have encountered
corruption. Another hurdle was in accessing reliable information on registration procedures, finance and
other schemes. 56% claimed that the paucity of quality infrastructure – especially transport, power, and
telecommunications – was a critical barrier.” As a result of these hurdles the proportion of closure of units
is also high at the startup stage. The entrepreneurial culture is also lacking as the institutions of learning
train students for wage employment rather than in becoming entrepreneurs. A key socio-cultural factor
also pertains to social attitudes towards risk and failure. To better understand and manage risk as well as
create a supportive social environment for entrepreneurs, it is essential to remove the stigma associated
with failure.
Start-up a Revolutionary thought for Transformation
On the other hand, a change is being witnessed today, as quoted by Prime Minister Shri. Narendra
Modi, ‘The convergence of technology, integration across diverse fields, distributed architecture and
people willing to back an idea, have opened a new world for enterprise. --- I see Start-ups, technology
and innovation as exciting and effective instruments for India’s transformation, and for creating jobs for
our youth. For start-ups today there are different levels of financial support that has come to provide the
initial seed capital in the form of incubators, angel funds, or venture capital funds followed by private
equity and debt in that order. Between January-September 2015, Angel Funds and VCFs have invested
$7.3 billion in early stage Indian Start-ups. India’s first generation e-commerce and mobile entrepreneurs
have become angel investors which is a sign of maturing of startup ecosystem. However, there is a danger
that too many mentors/ angel investors with little experience may lead to a situation of unsuccessful
startups.
Start-up! An ‘Idea’ selling for self empowerment
The government has also come a big way in promoting startups. The question therefore what
needs to be answered is what is a start-up? A start-up is a company that is in the first stage of its operations.
These companies are often initially bank rolled by their entrepreneurial founders as they attempt to
capitalize on developing a product or service for which they believe there is a demand. The start-up and
SMEs appear to be of the same size with limited revenues, high cost of operation, job creating but they
operate on entirely different business models. The difference between a start-up and a SME unit is that
a startup is new organization designed to search for a repeatable and scalable business model. A start-up

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study 97

according to Steve Blank –‘is searching for answers to the product it will sell, the customers it will serve
and the way it will make money from delivering value to its customers’. A SME, according to the U.S.
Small Business Administration (SBA) is an “independently owned and operated, organized for profit,
and not dominant in its field.” SMEs generally sell known products to known customers in known
local markets. These startup needs an appropriate ecosystem to thrive which includes adequate funds
for startups to help them grow; government to create an environment of ease of doing business; ready
availability of essential services like office space, location, supplies telecom connectivity etc.; and mentors
to provide strategic advice.
Latest Policy Initiatives for Start-ups
To simplify the regulatory framework the government introduced the Ease of Doing Business
wherein an MSME unit has to fill in a single one page self-declaration online form called Udyog Aadhaar.
The Apprentices Act, 1961 was amended to enable even the MSME unit’s engage apprentices which
will enable the units to get trained labour as well as in turn supply skilled labour. Under the Apprentice
Protsahan Yojana, 50 percent of the stipend payable to the apprentices would be reimbursed by the
Government for the first two years which is an incentive for MSME units to take in more apprentices.
To give boost to the Make in India programme, the MSME Ministry has launched the ASPIRE
scheme in March 2015, a Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship.
The objective of the scheme is to set up a network of technology and incubation centers to accelerate
entrepreneurship and also to promote start-ups for innovation and entrepreneurship in agro-industry.
To ease the credit availability requirements of startups the Government had announced the
MUDRA scheme- Micro Units Development & Refinancing Agency, operated by SIDBI for providing
refinance to micro units. This would improve the liquidity of the micro units who right now have to
borrow from NBFCs and moneylenders at high rates of interest.
Atal Innovation Mission (AIM) - This programme operated from NITI Aayog is about an
Innovation Promotion Platform involving academics, entrepreneurs and researchers and draw upon
national and international experiences to foster a culture of innovation, R&D and scientific research
in India. The platform will promote a network of world class innovation hubs and grand challenges for
India. The overarching purpose of this mission is to promote a culture of entrepreneurship and innovation
in India. The key objectives of the AIM are:
ŠŠ To create an umbrella structure to oversee innovation eco-system of the country;
ŠŠ To provide platform and collaboration opportunities for different stakeholders;
ŠŠ To study and suggest best and novel practices to be adopted by different stakeholders in the
innovation chain;
ŠŠ To provide policy inputs to NITI Aayog and various Government Departments and Organizations.
ŠŠ To create awareness and provide knowledge inputs in creating innovation challenges and funding
mechanism to government; and,
ŠŠ To develop new programmes and policies for fostering innovation in different sectors of economy.
SETU (Self Employment and Talent Utilization)- SETU meaning bridge in Hindi is a Techno-
Financial, Incubation and Facilitation Programme to support all aspects of startup businesses and other
self-employment activities, particularly in technology driven areas operated from NITI Aayog. An Expert
Committee on Innovation & Entrepreneurship for working out the detailed contours of the Atal Innovation

ISBN: 978-93-5300-292-3 Technical Session - I

98 Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study

Mission (AIM) and SETU was constituted by NITI Aayog. The Expert Committee has identified five
major drivers for creating a vibrant entrepreneurial eco system viz; (i) catalytic government policy and
regulatory framework (ii) easy access to equity capital and debt (iii) businesses as entrepreneurial hubs
(iv) culture and institutions which encourage entrepreneurship over careerism (v) adequate and effective
collaboration forums.
Electronics Development Fund- the Ministry of C&IT has launched the Electronics Development
Fund (EDF) to promote innovation, research and development, and product development in the field
of semiconductors, nano-electronics, IT and associated sectors by bringing in established companies and
startups on board13. The objective is to do research, design and develop electronic products within the
country for which the startup units would be provided supportive financial assistance from the EDF.
Digital India- Digital India Programme has been launched to provide broadband connectivity
in rural and urban areas. Introduction of digital rural connectivity would give a big boost in developing
traditional rural arts, crafts or other innovative ideas into business models.
Make in India – is an initiative launched by the Government of India to encourage national,
as well as multi-national companies to manufacture their products in India. It was launched by Prime
Minister Narendra Modi on 25 September 2014.
Standup India - This is organically integrates Bhartiya Micro Credit (BMC) E-Rickshaws program
into Prime Minister Shri Narendra Modi flagship ‘Stand Up India’ initiative. The Prime Minister on 15th
August 2014 launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) for “Banking the Unbanked.
This program was launched by Hon’ble Prime Minister Narendra Modi the ‘Stand up India’
scheme on 5 April 2016 as part of the government’s efforts to support entrepreneurship among women
and SC & ST communities.
Intellectual Property Rights-With the growing number of startups it is essential to protect one’s
products from impersonators. The startups need to go for design patents, trademarks, copyright or trade
secrets protection as the need maybe before marketing their product.
India Aspiration Fund- A Rs. 2000 crore India Aspiration Fund (IAF) was launched by SIDBI
in August 2015 to boost the startups fund of-funds ecosystem in the country. This fund would invest in
various venture capital funds for meeting the equity requirement of MSME start-ups. A SIDBI Make in
India Loan for Small Enterprises (SMILE) Scheme of Rs.10,000 crore has also been launched to catalyze
tens of thousands of crores of equity investment in start-ups and MSMEs, creating employment for lakhs
of persons, mostly educated youth over the next 4-5 years. The objective of SMILE is to provide soft loans
in the nature of quasi-equity and term loans on relatively soft terms to MSMEs to meet the required
debt-equity ratio norm. The 25 sectors under the ‘Make in India’ programme’ would be the focus with
emphasis on financing smaller enterprises in the MSME sector. There will be concessional terms for
the enterprises promoted by (SC) / (ST) / Persons with Disabilities (PwD) and women. The scheme is
expected to benefit approximately 13,000 enterprises, with employment for nearly 2 lakh persons.
These two schemes are in addition to the Rs.20000 crore MUDRA scheme. Together the three
finance schemes should boost the startups as well as MSMEs already in the transition phase and create
good number of jobs in the years to come. Till date the startups have been successful in e-commerce,
and other IT based applications of service sector. The startups in manufacturing sector are yet to take
off in a big way. The launch of the above-mentioned policy initiatives should give a boost to startups in

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurship Development in India- A Special Emphasis on Start-Ups – An Empirical Study 99

manufacturing as well. As of 16th November 2015, 806 startups have taken off during the year and the
main sources of funding were seed funding and private equity and the products were mainly IT based
applications in the service sector.
In the Global Competitiveness Index (GCI) 2015-16 India has scored 16 points and moved up
from its earlier ranking of 71 to 55 out of a total of 144 countries. Region-wise among the emerging
and developing Asia India ranks sixth after Malaysia (18), China (28), Thailand (32), Indonesia (37) and
Philippines (47). India does have the potential to move ahead of these countries. In the World Bank’s Ease
of Doing Business Ranking 2015 India is placed at 142 place out of a total of 189 economies. But on
the startup front India ranks third position globally with 4200 startups. The new initiatives in promoting
startups would enable India to move up to the top position.
Conclusion:
Startup India campaign is based on an action plan aimed at promoting bank financing for
start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The Standup
India initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities. To
conclude, a startup ecosystem has been created through the new policy initiatives which would not only
promote startups particularly in the manufacturing sector but also the micro units would be able to
graduate faster as small and medium units. If this objective is achieved the goal of job realization through
self-employment would be complete as self-employment is the answer to providing jobs to the huge
proportion of population in the economically active age group. This process would be fast tracked by the
flagship programmes well supported by the Skill India Mission which would facilitate availability of right
skilled manpower as entrepreneurs complains about skill mismatch. Given that startups are emerging as
major job creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.
References:
yy Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small and Medium Enterprises Development Act,
2006-Department-Related Parliamentary Standing Committee (2013)
yy Transferred to Ministry of Skill Development & Entrepreneurship vide GoI Order No.9(1)2015-EDI dated 22nd May 2015
yy Entrepreneurship in India, NKC, 2008
yy Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015, San Jose, California)
yy http://yourstory.com/2015/10/indian-startups-invested/
yy ‘Young Entrepreneurs turn Angels for Younger Startups’, Times of India, June 30, 2014.
yy Investopedia
yy https://www.quora.com/Peter Baskerville
yy ‘Young Entrepreneurs turn Angels for Younger Startups’, Times of India, June 30, 2014.
yy Economic Times, 11th June,2015
yy http://www.indiainfoline.com/article/news-sector-banking-financials/sidbi-launches india-aspiration fund-and-sidbi-
makein-india-loan-for-enterprises-scheme-5082000192_1.html
yy Source: http://trak.in/india-startup-funding-investment-2015/.
yy Figures in brackets indicate GCI rankings
yy MSME Policy document of Andhra Pradesh State

ISBN: 978-93-5300-292-3 Technical Session - I

 Role of Personality and Leadership Traits in Entrepreneurship
*G. Venkateswarlu, **PVS Chowdary
*Asso. proff in Psychology, V.R.S&Y.R.N College, Chirala.
**Asso. Professor in Physics, VRS & YRN College, Chirala

The concept of ‘Entrepreneurship’ is most influenced factor of the national economic development
and growth. Innovative nature is developed globally by the name of Rationalization, privatization and
Globalization and it can influence the sustainable economic growth due to the technical relation between
the nations. The entrepreneurs with their vision and innovative qualities lay down a strong foundation
for sustainable growth of the various sectors like agriculture, industry, technology, education, trade and
services. Various factors contributing to economic development and labor, capital, natural resources,
technology and entrepreneurship. Entrepreneurship plays a key role in the process of development.
Entrepreneurship is depend upon production, marketing, financing, pricing and personnel relations.
Mostly depends upon effective policies and their efficient implementation.
Definitions of Entrepreneur:
The concept of entrepreneur varies from country as well as from period to period and the level of
economic development thoughts and perceptions. The word entrepreneur is derived from the French word
“Entrepreneur” Which means to “undertake” i.e the person who undertakes the risk of new enterprise.
Adam Smith described entrepreneur as a person who only provides capital without taking active
part in the leading role in enterprise.
Jean Baptiste say opined that the entrepreneur was a person endowed with the qualities of judgment,
perseverance and a knowledge of the world as well as business. The entrepreneur shifts economic resources
out of an area of lower and into an area of higher productivity and greater yield.
Karl Marx regarded entrepreneur as a parasite.
Noah Webster thinks entrepreneur is one who assumes the responsibility of the risk and management
of business.
Peter F. Drucker defines an entrepreneur as one who always searches for change, respond to it and
exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, that means by which they
exploit change as an opportunity for a different business or service.
Akhouni, M.M.P describe entrepreneur as a character who contributes, innovativeness, readiness
to take risk, sensing opportunities, identifying and mobilizing potential resources concern for excellence,
and who is persistent in achieving the goal.
Hennry Ford who created the manufacturing miracle that launched a modern era in industry.
Entrepreneur can do anything with passion and enthusiasm. Enthusiasm is the yeast that makes his
hopes rise to the stars. Enthusiasm is the spark in his eye, the swing in his gait, the grip of his hand,
the irresistible surge of his will and his energy to execute his ideas. Enthusiasts are fighters, they have
fortitude, they have strong qualities.
Qualities of entrepreneur:
A true entrepreneur besides possessing functional qualities, must also process in a broad personality
which help in developing initiative and drive to accomplish great task and face challenges squarely.
Role of Personality and Leadership Traits in Entrepreneurship 101

James J. Berne has stressed the following qualities of a good entrepreneur:

ŠŠ He is an enterprising individual, energetic, hardworking, resourceful, aware of new opportunities
and able to adjust himself to changing conditions with ease and willing to assume risk involved
in change.
ŠŠ He is interested in advancing technologically and in improving the quality of his product or
service
ŠŠ He is interested in expanding the scale of his operations by reinvesting his earnings.
ŠŠ He visualizes changes and adapts to changing conditions.
ŠŠ He is a firm believer in planning and systematic work.
ŠŠ He works for the society at large and for the good of his fellow-beings.
Psychologists View:
Among psychologists, Frank young describes an entrepreneur as a change-agent. K.L. Sharma
maintains that entrepreneurs are men who exhibit qualities of leadership is solving persistent professional
problems; but those persons likewise demonstrate eagerness to seize unusual opportunities. They have a
business gambler’s itch. T.v rao and Udai Pareek describe entrepreneurship as a creative and innovation
response to the environment. The entrepreneur is goal-oriented rather than means-oriented. He must not
only have a high capacity of risking-taking but must also have a high capacity of risk-sustaining which is
a function of high degree of self-confidence.
Joseph Schumpeter states that the entrepreneur is mainly motivated and driven by three things:
ŠŠ ‘The dream and the will to found a private kingdom’.
ŠŠ ‘The will to conquer’.
ŠŠ ‘The joy of creating’.
J. Schumpeter’s formulation can be translated as:
ŠŠ The desire for power and independence.
ŠŠ The will to succeed.
ŠŠ The satisfaction of getting things done.
According to him, money is not what ultimately motivates the entrepreneur ‘Entrepreneurs’,
according to Schumpeter, ’are certainly not economic men in the theoretical sense’.
According to David McClelland, entrepreneurship has to do with an individual’s so called need for
achievement. He identified three features of entrepreneurs that were related to their need for achievement:
ŠŠ Desire to accept responsibility for solving problems, setting goals and reaching the goals.
ŠŠ A willingness to accept moderate risks.
ŠŠ A desire to know the outcomes of their decisions. It was widely believed that a high achievement
motivation has a strong likelihood of predicting entrepreneurial behavior. Individuals with high
achievement motive tend to take keen interest in situations of risk, desire for responsibility and a
desire for concrete measure of task performance.

ISBN: 978-93-5300-292-3 Technical Session - I

102 Role of Personality and Leadership Traits in Entrepreneurship

Motivational entrepreneurs:
Motivation is the force that influences the efforts of the entrepreneur to achieve his objectives.
An entrepreneur is motivated to achieve or prove his excellence in job performance. He also motivated to
influence others by demonstrating his power, thus satisfying his ego.
Pure entrepreneur:
A pure entrepreneur is an individual who is motivated by psychological and economical rewards.
He undertake an entrepreneurial activity for his personal satisfaction in work, ego or status.
Induced entrepreneur:
This entrepreneur is one who is induced to take up an entrepreneurial task due to the policy
measure of the government that provides assistance, incentives, concessions and necessary overhead
facilities to start a venture. Most of the entrepreneurs belong to this category and enter business due to
financial, technical project is provided package assistance to his project. Today, import restrictions and
allocation of production quotas to small units have induced many people to start a small-scale industry.
Motivated entrepreneur:
New entrepreneurs are motivated by the desire for self-fulfillment. They come into being because
of the possibility of making and marketing some new products for the use of consumers. If the product
is developed to a saleable stage, the entrepreneur is further motivated by reward in the in term of profit.
Spontaneous entrepreneurs:
These entrepreneurs start their business out of their natural talents. They are persons with initiative,
boldness and confidence in their ability which motivate them to undertake entrepreneurial activity. Such
entrepreneurs have a strong conviction and confidence in their ability.
Entrepreneurial skills:
ŠŠ Creative problem solving.
ŠŠ Persuading.
ŠŠ Negotiating.
ŠŠ Selling.
ŠŠ Proposing.
ŠŠ Holistically managing business/project/situations.
ŠŠ Strategic thinking.
ŠŠ Intuitive decision making under uncertainty.
ŠŠ Networking.
Leadership is the capacity to frame plans which will succeed and the facility to persuade others to
carry them out in the face of all difficulties
Strategic Leadership:
This style of leadership analyze the current situations, decide on strategies and put those strategies
into action and evaluation or modify if changes are needed in strategies.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Personality and Leadership Traits in Entrepreneurship 103

Transactional Leadership:
Transactional leadership focus on tactical issues, daily affairs of short term goals, maintain human
relations and fulfill role expectations by striving to hole effectively.
Visionary Leadership:
Characteristics are mostly influenced are innovative, whole system thinkers, conventional through
in their efforts. They have advance planning, highly professional with little supervision, flexibility, rapid
change, innovation, complexity and optimism about the future.
Charismatic leader create a good atmosphere of change and they have an ability to communicate
complex ideas and goods in clear, compelling ways ,so that everyone can understand and identify with
their message, they inspire to the followers.
Leadership traits influenced in entrepreneur:
The following leadership traits mostly influenced in entrepreneur are –
1) Decision making. 2) Leading by examples. 3) Setting standards. 4)Multi-tasking. 5) Building
Relationship. 6) Creativity. 7) Dedication. 8) Commitment. 9) Mission. 10) Vision. 11) Resolving
conflicts. 12) Team player. 13) Approachable. 14) Approachable. 15) Integrity. 16) Trust. 17) Passion.
18) Compassion. 19) Capability. 20) Involvement. 21) Presence of mind. 22) Energy. 23) Clarity of
thoughts.24) Patience. 25) Daring to dream. 26) Sincerity. 27) Trust. 28) Honesty.
Roles of personality traits in an entrepreneurship:
Personality is defined as the whole characteristics of the individual. Personality is the dynamic
organization with in the individual of those psycho physical systems that are determine his characteristic
behavior and thought. Personality traits mostly influenced in Entrepreneurship .They are
ŠŠ Outgoing:
It means entrepreneur have the warm hearted, easy going and participating nature.
ŠŠ More intelligent:
Entrepreneur have Abstract thinking, brightness in behavior.
ŠŠ Emotionally stable:
It means mature in nature, faces reality and calm.
ŠŠ Dominant:
This trait is more influence on entrepreneur they have aggressive, stubborn and competitiveness.
ŠŠ Happy. go. lucky:
He is enthusiastic in nature of work.
ŠŠ Conscientious:
Persistent, moralistic and staid behavior.
ŠŠ Venture some:
Uninhibited, socially bold.
ŠŠ Tender-hearted:
Sensitive, clinging and overprotected.

ISBN: 978-93-5300-292-3 Technical Session - I

104 Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study

ŠŠ Trusting:
Accepting conditions.
ŠŠ Practical:
Practical in nature.
ŠŠ Forthright:
Unpretentious, genuine but socially clumsy.
ŠŠ Self-assured:
Secured, placid, complacent.
ŠŠ Conservative:
Respecting traditional ideas.
ŠŠ Group-dependent:
Joiner and sound follower.
ŠŠ Controlled:
Socially precise, exercising will power and compulsive.
ŠŠ Relaxed:
Tranquil, unfrustrated and composed.
Entrepreneurship plays an influential role in the economic growth and standard of living of
the country as a startup founders or small business owners, can identified various sectors needed the
startups. The below futures of aerospace, agriculture, artificial intelligence, financial services, healthcare,
manufacturing, technology ,transportation and logistics, virtual reality, and augmented reality.
Several studies prove the existence of a relationship between entrepreneur personality traits and
firms performance. Personality traits can be correlated with start-up’s innovativeness .Entrepreneurs
plays a crucial role in managing them. Their personality strongly influenced business decision. The main
personality traits we consider are narcissism, the big five (i.e. extraversion, agreeableness, conscientiousness,
openness to experience) and locus of control.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Entrepreneurship on Economic Development & Entrepreneurial
Development and Its Antecedents in India- A Study
*Dr. Y. Ramakrishna Prasad
Professor, Department of Management Studies, GRIET, Hyderabad
Phone No # +91- 09849826538, Email: [email protected], [email protected]

Abstract: The role of entrepreneurship in economic development varies from economy to economy depending upon its material
resources, industrial climate and the responsiveness of the political system to the entrepreneurial function. The entrepreneurs
contribute more in favourable opportunity conditions than in the economies with relatively less favorable opportunity
conditions. Now, people have begun to realize that for achieving the goal of economic development, it is necessary to increase
entrepreneurship both qualitatively and quantitatively in the country. It is only active and enthusiastic entrepreneurs who
fully explore the potentialities of the country’s available resources – labour, technology and capital. Several dynamic forces, such
as technological disruption, fluctuating economies or demographical changes, have brought new opportunities and threats for
organizations, and transformed societies from all over the world. In order to cope with these shifting forces, governments, public
and private organizations, and the public are more and more aware of the importance of entrepreneurship. Entrepreneurship is
a multifaceted phenomenon, being analysed as a process, a resource or a state-of-being. According to the Schumpeterian view, the
entrepreneurial process constitutes one of the key factors in the economic development of a country/region. However, researchers
have expressed different views about the relationship between the stages of economic development and entrepreneurship during
the time This conceptual paper emphasis on the growth of entrepreneurship development in India and its status in promoting
economic development of India. Entrepreneurship can play a pivotal role in giving a boost to the economic development to one
of the largest populated countries like India. Based on the review of literature about the ancient aspects about entrepreneurial
development in India as well as the current trends in growth of entrepreneurship in India. Data was collected from the
secondary source. The outcomes are resultant to find the development of Indian entrepreneurial economy in comparison with
other fast-growing economies like China and Brazil, its role in providing large scale employment/ self-employment, and
modes of promoting entrepreneurship and entrepreneurship training in India. It has been concluded that the time is ripe
for an entrepreneurial revolution in India and entrepreneurship provides a great scope for faster development of its economy.
Key words: Entrepreneurship, Economic Development, Innovation, Self-Employment, Service Sector, Promoting
entrepreneurship, entrepreneurial revolution.

Introduction:
Entrepreneurs who are business leaders look for ideas and puts them into effect in nurturing
economic growth and development. They play the most important role in the economic growth and
development of Indian economy. The entrepreneur acts as a trigger head to give spark to economic
activities by his entrepreneurial decisions. An entrepreneur plays a pivotal role not only in the development
of industrial sector of a country but also in the development of farm and service sector.
Entrepreneurship is the process of designing, launching and running a new business, which is
often, initially a small business, offering a product, process or service for sale or hire. The people who
create these businesses are called entrepreneurs. Entrepreneurship has been described as the “capacity
and willingness to develop, organize and manage a business venture along with any of its risks to make a
profit”. While definitions of entrepreneurship typically focus on the launching and running of businesses,
due to the high risks involved in launching a start-up, a significant proportion of businesses should close,
due to “lack of funding, bad business decisions, an economic crisis – or a combination of these” or due
to lack of market demand.
In the 2000s, the definition of “entrepreneurship” expanded to explain how and why some
individuals (or teams) identify opportunities, evaluate them as viable and then decide to exploit them,
whereas others do not and, in turn, how entrepreneurs use these opportunities to develop new products
or services, launch new firms or even new industries and create wealth. Recent advances stress the
fundamentally uncertain nature of the entrepreneurial process, because although opportunities exist their
106 Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study

existence cannot be discovered or identified prior to their actualization into profits. What appears as a
real opportunity exalted might be a non-opportunity or one that cannot be actualized by entrepreneurs
lacking the necessary business skills, financial or social capital.
An entrepreneur is an individual who, rather than working as an employee, founds and runs a
small business, assuming all the risks and rewards of the venture. The entrepreneur is commonly seen as
an innovator, a source of new ideas, goods, services and business/or procedures.
Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative
necessary to anticipate current and future needs and bring good new ideas to market. Entrepreneurs who
prove to be successful in taking on the risks of a start-up are rewarded with profits, fame and continued
growth opportunities. Those who fail suffer losses and become less prevalent in the markets.
Entrepreneurship is one of the resources economists categorize as integral to production, the
other three being land/natural resources, labour and capital. An entrepreneur combines the first three of
these to manufacture goods or provide services. He or she typically creates a business plan, hires labour,
acquires resources and financing, and provides leadership and management for the business.
The term entrepreneur comes from the French word “entreprendre”, which means to undertake
something. Entrepreneurship is a process which involves all those activities associated with identifying
an opportunity and creating an enterprise to utilise that opportunity. Joseph A. Schumpeter defined
entrepreneurship in 1939, which was considered as most appropriate. He defined it as “entrepreneurship
is based on purposeful and systematic innovation. It includes not only the independent businessman
but also company directors and managers who actually carry out innovative functions”. Given the
increasing significance and visible impact of Entrepreneurship in wealth-creation and employment-
generation, National Knowledge Commission considers it critical to India’s growth and development. It
has undertaken this study to explore factors that have advanced Entrepreneurship in India as also various
other factors that could further encourage and facilitate even greater growth.
National Knowledge Commission, 2008 defines Entrepreneurship as follows: ‘Entrepreneurship
is the professional application of knowledge, skills and competencies and/or of monetizing a new idea,
by an individual or a set of people by launching an enterprise de novo or diversifying from an existing
one (distinct from seeking self-employment as in a profession or trade), thus to pursue growth while
generating wealth, employment and social good’. It is proved that there is positive correlation between
economic development, innovation and entrepreneurship (Guin K.K., 2014). Entrepreneurship not
only creates large scale jobs thereby increasing the national income, but also function as a bridge between
innovation and the market (Barot D. H., 2015). Entrepreneurship is also considered as an important
ingredient along with knowledge which differentiates the level of wealth among rich and poor countries
(Nickels W.G., 2004). This is a concept paper which looks at the growth of entrepreneurship development
in India and its present status in promoting economic development of India.
Economic development is the development of economic wealth of countries, regions or communities
for the well-being of their inhabitants. From a policy perspective, economic development can be defined
as efforts that seek to improve the economic well-being and quality of life for a community by creating
and/or retaining jobs and supporting or growing incomes and the tax base. Economic development is
the process by which a nation improves the economic, political, and social well-being of its people. The
term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. The
concept, however, has been in existence in the West for centuries. Modernization, Westernization, and

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study 107

especially Industrialization are other terms people have used while discussing economic development.
Economic development has a direct relationship with the environment and environmental issues.
Generally, tax authorities will view a person as self-employed if the person chooses to be recognized
as such, or is generating income such that the person is required to file a tax return under legislation in the
relevant jurisdiction. In the real world, the critical issue for the taxing authorities is not that the person is
trading but is whether the person is profitable and hence potentially taxable. In other words, the activity
of trading is likely to be ignored if no profit is present, so occasional and hobby- or enthusiast-based
economic activity is generally ignored by authorities. Self-employed people generally find their own work
rather than being provided with work by an employer, earning income from a trade or business that they
operate.
Entrepreneurship to have a broader impact on job creation and in promoting sustainable
development, policy makers can enhance the regulatory environment by addressing regulatory barriers
that hinder young entrepreneurs from starting up, introducing online registration and simplified
regulations, minimizing the stigma surrounding business failure and facilitating restarts. Orienting
business development services to provide services to young entrepreneurs is essential to ensure that they
obtain adequate support. The public and private sectors, as well as other relevant partners, can come
together to improve education and skills development, and better align the skills acquired by young
people with labour market demands. Building the capacity of teachers to inculcate entrepreneurship skills
among students is critical.
Literature Review
The purpose of the literature review on entrepreneurial development is to identify the related facts
in the research work that were determined by other authors through their research in the similar field
of work and to know the outcome of their research. The literature reviews will throw light on the broad
spectrum of entrepreneurial activities in India and other countries.
Conventional entrepreneurship has been linked to the discovery of opportunities, innovation and
the creation of new business ventures and is implicitly associated with the pursuit of commercial objectives
separate from, and perhaps in conflict with, ethical behaviour (Clarke and Holt 2010; Sen 1993b). In
contrast, the emergence of social entrepreneurship, with its focus on ‘‘the innovative use of resources to
explore and exploit opportunities that meet a social need in a sustainable manner’’ (Sud et al. 2009, p.
203), presents a more ethical variant of entrepreneurial activity, with an explicit social change agenda
(Branzei 2012). Social entrepreneurship offers solutions to a range of social problems (Nicholls 2006)
and is acknowledged to be an effective mechanism for generating economic, social and environmental
value (Acs et al. 2013; Austin et al. 2006; Murphy and Coombes 2009). Social entrepreneurship has
also been associated with wider social change processes (Acs et al. 2013; Alvord et al.2004; Mair et al.
2012a, b; Mair and Martı´ 2009; Steyaert and Hjorth 2006); however, we know little about how social
entrepreneurship leads to social change.
Entrepreneurial competencies have been identified as a specific group of competencies relevant to
the exercise of successful entrepreneurship. Such entrepreneurship is often associated with the development
of small and new businesses (e.g. Colombo and Grilli, 2005; Nuthall, 2006), although there is increasing
interest in corporate entrepreneurship and intraprenuership (e.g. Hayton and Kelley, 2006; Sathe, 2003;
Zahra et al., 1999). In a study into the learning behavior of small firms, Chaston et al. (1999) looked
at how differing modes of behaviour relate to, and, impact on organisational capability and found that
despite the extensive literature which exists relating to organizational learning, there were few attempts

ISBN: 978-93-5300-292-3 Technical Session - I

108 Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study

to operationalise the construct through the application of quantitative techniques, especially in the small
firm sector. “Research to determine whether identifiable relationships exist between the performance
of the firm, the learning mode of the organisation and organizational competence does not provide
clear statistically significant relationships and further work is clearly needed” (Chaston et al., 1999).
Scholars researching in the field of entrepreneurship distinguish between managerial competencies and
entrepreneurial competencies (Lerner and Almor, 2002; Chandler and Hanks, 1994a, b, c). Some suggest
that entrepreneurial competencies are needed to start a business, while managerial skills are needed to
grow the business, although competence in entrepreneurship requires competencies in both areas (Man
et al., 2002).
Let us regard things in retrospection. When human society entered the 20th century the spotlights
were on the ’big things’- ‘big’ used to be beautiful and respectable, or the political ‘establishment’. ‘Big’
was the future. It provided a scale economy based on mass production which brought welfare to the
people, if not exactly wealth. In this way, the Western democracies kept the ordinary man in his place.
Those times bore their own professional elite: the managers (Burns, 2011).
In most developed economies, the first two post-war decades represented a success for the great
enterprise, considered the only one capable to conform itself to the code of the industrial society, expressed
in six essential principles: standardization, specialization, synchronization, concentration, maximization
and centralization. The small enterprise seemed doomed to remain the Cinderella of the economies, maybe
even a brake on their way towards development. At the beginning of the 1970s, the literature started to
refer to the role of the SMEs in the economy. There was ample evidence that economic activity moved
away from large firms to small firms in the 1970s and 1980s. But did this mean that the small companies,
a David of business, had triumphed over the Goliath of the big enterprises? In act, the small companies,
the new companies and the entrepreneurs had always been there. Therefore, in the latter part of the past
century the perception began to change. Schumacher (1973) asserted that the giant organizations and
the growth of specialization would lead to economic inefficiency at the macroeconomic level, to pollution
and to improper working conditions and offered as an alternative a system of intermediary technologies
based on small production units. It seemed that the orthodoxy of the big enterprise had not brought
mankind the economic success it had expected (Burns, 2011). People started to value the importance
of the SMEs. Around the 1980s the special contribution that the SMEs brought to the labour market
began to be much more appreciated as more than 80% of all new jobs were created by small enterprises
(below 500 employees) in the India. Since then this pattern has been kept until today. In India, the SMEs
generate more than a half of the gross domestic product (GDP) and more than 50% of all the exports
are carried out by companies with less than 20 employees. As the clear majority of companies (80-90%)
are micro-enterprises, they have reduced the bureaucracy a lot to make sure that the requirements of the
SMEs have been taken into account.
Entrepreneurship should do with individuals, people with their own traits and actions (roles).
Various roles of the entrepreneur can be distinguished in the business world. To express the connection
between entrepreneurship and economic growth and development, two major roles of the entrepreneur
can be singled out. The first should do with ‘new entry’ and the second with ‘newness’ in general. Firstly,
the entrepreneur is the founder of a new business: “. . . someone who creates and then, perhaps, organizes
and operates a new business firm, whether there is anything innovative in those acts”. Secondly, the
entrepreneur plays a more general innovative role in economic life: “... the entrepreneur as the innovator
– as the one who transforms inventions and ideas into economically viable entities, whether or not, while

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study 109

doing so they create or operate a firm” (Wennekers and Thurik, 1999). Thus, newness through start-ups
and innovations are some of the most relevant factors linking entrepreneurship to economic growth.
Methodology & Analysis
For analysis, the articles were categorized under the following headings which made the analysis
easier. The categories were 1) Entrepreneurship in India, a historical perspective, 2) Entrepreneurship in
India compared with other fast-growing economies like China and Brazil, 3) Entrepreneurship- provider
of large scale employment/ self-employment, 4) Growth of Service Sector, 5) The role of MSME in
economic development and
Data Reviewed for Inference
Emerging Economy Entrepreneurship and the International Domain
Entrepreneurship in emerging economies is not an isolated domain. Instead, it is part of the
broader international business domain that helps to identify other relevant issues. For example, more
and more emerging economy firms go international soon after their founding (Ahlstrom, Bruton, &Yeh,
2007; Zucchella, Palamara, & Denicolai, 2007). The nature of these entrepreneurial firms’ local market
that encourages them to seek out other markets should be explored. For example, these firms often
internationalize to either gain market share or to gain knowledge; which of these two is the principal
motivator for entrepreneurial firms or how the two motivations impact each other merits examination.
There is also a need to understand the impact of cultural and institutional differences between the
country of the entrepreneur and the country where the entrepreneur is doing business. For example, the
cultural distance between countries and how that impacts the expansion of entrepreneurial firms should
be explored.
It is important to not stop at the firm- and country-level effects in examining entrepreneurship in
emerging economies. Country effects are important, yet often overlooked are the country–firm interaction
effects. The interaction effects would include how firms uniquely benefit from going international in
that type of country. For example, Middle Eastern entrepreneurs are experiencing some success with
investment in the Moslem countries of Southeast Asia such as Malaysia and Indonesia. Similar religious
and cultural orientation would appear to provide a variety of benefits apart from standard cost savings or
new marketing opportunities that emerge.
A third aspect of examining international dimensions of entrepreneurship in emerging economies
is seeking to better understand born global firms from the developing worlds. Born global firms are firms
that are international from their very beginning. These firms are not unlike domestic only firms as they
must consider all the difficult questions entrepreneurs have about financing, managing, and strategizing
within the organization.
But the born global firms face a far more complex analysis since the new firms are crossing
national borders. By crossing boundaries, the entrepreneurial firm faces constraints but the firm also
obtains opportunities to enhance market value based on the strategic deployment of firm resources and
assets, as well as intangible assets gained by going international. For firms from emerging economies that
are often facing constrained resources, the act of going international would appear to provide unique
challenges that need greater understanding.

ISBN: 978-93-5300-292-3 Technical Session - I

110 Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study

Entrepreneurship in India Compared with Other

Fast Growing Economies like China and Brazil Indian economy has become the second fastest
growing economy in the world even during the recent world-wide recession (Kular I.K.A.S.B.J.S.). It
is expected to be the fastest growing economy in the years to come. Small and medium enterprises are
considered world-wide as the promoters of economic development. In India, they constitute 95% of the
industrial units, accounts for 40% of the total industrial production and 34% of the exports. They provide
employment to about 312.5 lakh people in 128.5 lakh units as on 2006- 07(Kular I.K.A.S.B.J.S.). China
gives more importance to SMEs than India, where over 68% of China’s exports come from small and
medium sector. The growth of SMEs in China has been phenomenal that in the last 20 years it has created
more SMEs than the total number of SMEs in US and Europe combined. In the case of Brazil, another
fast-growing economy, SME’s constitute 96.8% of the registered business employing 59% of the active
population (Kular I.K.A.S.B.J.S.). This shows that India
Economic Development and Institutional Theory
Similar institutions and resources can have different effects in different contexts. Thus, there is
also a need for a more subtle way to analyse how contextual variables differ in emerging economies and to
what degree they shape entrepreneurial goals, behaviours, and effectiveness of actions. A theory is more
powerful if its applicability is established in different settings. The ability to connect established theories in
new and rich manners offers the potential for significant new insights. Emerging economies are a unique
environment that offers the ability to obtain fresh insights to expand theory and our understanding of
it by incorporating more contextualized considerations. To illustrate the need for a richer theoretical
development, institutional theory has been recognized for its ability to provide insight to emerging
economies (Hoskisson, Eden, Lau, &Wright, 2000). However, the exact nature of institutional forces in
emerging economies is not yet well conceptualized. The most common model used by researchers is Scott’s
(2002) formulation of institutional theory. However, some applications of this model, even in leading
journals, are somewhat unusual. In addition, in sociology this model is somewhat controversial. Other
slightly different formulations exist in economics (e.g. North, 1990, 2005) and political science (Patriotta
& Lanzara, 2006). Thus, there is a need to more fully develop a conceptualization of institutional theory.
The richness of emerging economies has the potential to allow that to occur. It was noted earlier that too
often, culture differences are given as the cause of any differences from mature economies that are found.
But there is a rich set of institutions that could be causing any difference. Therefore, there is a strong need
to better understand the impact of those different institutions on entrepreneurs and entrepreneurship in
emerging economies. For example, the impact of legal institutions has been shown to have an impact
in the finance domain (La Porta, Lopez-de Silanes, Shleifer, & Vishny, 1998, 2000). Entrepreneurship
should explore if legal institutions play a similar role in the development and success of new ventures
emerging economies.
A desired outcome of better theory development is better application of the theory. The better
understanding of the role of institutions has the potential to not only shape the understanding of
institutional theory in emerging economies but also in mature economies. It is surprising, but rarely has
previous research examined the impact of institutions in shaping entrepreneurial actions in developed
economies. If institutions have the explanatory power expected then it would imply that researchers in
these developed economies should be including institutions in their research in a manner no different than
if they were examining a topic in China or India. As a result, emerging economies can help researchers
to develop theory in a way so that they can better understand how to incorporate the theory in mature
economies.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study 111

Role of MSMEs in Indian Economic Development

In India, small enterprises are now included in the category MSME, Micro Small and Medium
Enterprises. These small enterprises are equated with entrepreneurship and their growth is considered as
growth of entrepreneurship which in turn will facilitate economic development. The MSMEs generate
“highest employment per capita investment” as well as it will reduce rural urban migration by providing
employment in the village itself (Kular I.K.A.S.B.J.S.). It is very easy to start an SME as compared to large
industry. Analysis of census data on SMEs have shown that an investment of Rs.0.72 lakh is required
for creating one employment in the MSME sector as compared to Rs.5.56 lakh in the large-scale sector
(Kular I.K.A.S.B.J.S.), So employment generation is more in the MSME sector.
Small enterprises offer “cost effective and customised products to niche markets and provide
employment to local talents” [Majumdar S.]. They are a source of products for large organizations and it
is very easy for small enterprises to adapt to changing environment [Majumdar S.].
Like other small businesses in the world, small enterprises in India face challenges in their activities.
Then there are problems they face which are unique to India. Challenges like efficiency and global reach
can be overcome through embracing information technology. Those related to risk taking, innovation
and proactiveness can be met by encouraging entrepreneurship (Patricia R Todd R.G.J., 2007). India has
abundant unskilled labour, widespread underemployment while it lacks skilled labour, enterprising and
experienced entrepreneurs and managerial talent. By promoting small enterprises, India can overcome
these adversities and promote a democratic socialistic society and prevent concentration of economic
power (Barot D. H., 2015). Due to liberalisation and globalisation, the small enterprises in India began
to face competition from foreign companies. Due this intense competition, these domestic firms have to
change their ways and improve their efficiency in order to survive (Patricia R Todd R.G.J., 2007). The
recent advances in the IT front and communication infrastructure have helped the Indian SMEs to cater
to the global markets.
Encouraging and supporting entrepreneurship, encouraging innovation and providing necessary
finance are necessary for Indian SMEs to go globally (Patricia R Todd R.G.J., 2007). According to the
National Sample Survey of 1999-2000, the total workforce as on 01-01-2000 was 40.6 crores. Only
7% of the workforce were employed in the organized large-scale sector. 93% were employed in the
unorganized small-scale sector. The unorganized sector employed 36.9 crores people during 2000. This
data shows the importance of entrepreneurship in the economic development of a developing country
like India (Barot D. H., 2015).
Findings
Even though India had a glorious past in entrepreneurship, two centuries of British rule had
demolished it and India became a poor less developed country at the time of Independence with a large
population and rampant unemployment. After independence, the Government of India had come out
with Industrial Policy Resolutions and Five-Year Plans to give boost to industrialisation and promote
entrepreneurship. But during the initial four decades, it did not produce the desired result in the case of
entrepreneurship and an entrepreneurial culture was not evolved in the country. Thrust was not given to
entrepreneurship as it was an engine of economic development.
But, things changed from 1991 onwards due to liberalisation and when the New Small Enterprises
Policy was announced in the year 1991. The Government has realised the importance
entrepreneurship has got in the economic development of the country. All the advanced countries like

ISBN: 978-93-5300-292-3 Technical Session - I

112 Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study

US, Japan etc. achieved progress due to a vibrant entrepreneurship culture. When compared with other
fast-growing economies like China and Brazil, India still has to go long way in the entrepreneurial front.
All over the world, entrepreneurship is associated with small businesses. In India, small
enterprises which falls in the category MSME is generating highest employment per capita investment.
It is providing about 93% of the industrial employment. Entrepreneurship development is one of the
mechanisms adopted by the government of India for creating large scale employment. MSME Act was
passed in 2006 to provide necessary assistance to entrepreneurs and small businesses. A separate ministry
was formed to look after the affairs of MSME. Government is providing institutional, financial and fiscal
support to entrepreneurs. Government has also realised the importance of entrepreneurship training,
which is equally important for the promotion of entrepreneurship. To enhance the skill set of people a
comprehensive policy on National Skill Development and Entrepreneurship was formulated in 2015. A
separate ministry is also formed for Skill Development and Entrepreneurship Development. So, time is
ripe for an entrepreneurial revolution in India. An entrepreneurial culture will slowly develop which will
make India an advanced country.
Conclusion
India is one of the fastest growing economies in the world. But it is plagued by an ever growing
population and unemployment. India has gone through the Agricultural revolution, White revolution,
Blue revolution etc. An entrepreneurial revolution is due which will take India in comity with the
developed nations. Only an entrepreneurial awakening will make India to grow on a much faster rate
and become a developed nation at least by 2050. Government initiatives like ‘Make in India”, “Stand Up
India”, “PMKVY” are going to jump start the entrepreneurial revolution and mind set.
References:
yy Acs, Z. J., Boardman, M. C., & McNeely, C. I. (2013). The social value of productive entrepreneurship. Small Business Economics,
40(3), 785–796.
yy Ahlstrom, D., Young, M.N., Chan, E.S., & Bruton, G.D. (2004). Facing constraints to growth? Overseas Chinese entrepreneurs and
traditional business practices in East Asia. Asia Pacific Journal of Management, 21(3), 263–285.
yy Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: Same, different or both? Entrepreneurship
Theory and Practice, 30(1), 1–22.
yy Barot D. H. (2015), “Entrepreneurship – A Key to Success,” The International Journal of Business &
yy Barot D. H., “Entrepreneurship – A Key to Success,” The International Journal of Business & Management, 2015.
yy Branzei, O. (2012). Social change agency under adversity: How relational processes (re)produce hope in hopeless settings. In K.
Golden-Biddle & J. Dutton (Eds.), Using a positive lens to explore social change in organizations: Building a theoretical and research
foundation (pp. 21–47). London: Routledge.
yy Clarke, J., & Holt, R. (2010). Reflective judgement: Understanding entrepreneurship as ethical practice. Journal of Business Ethics,
94(3), 317–331.
yy Commission N.K., “Entrepreneurship in India,” National Knowledge Commission, New Delhi, 2008.
yy governance. Journal of Financial Economics, 58, 3–27.
yy Guin K.K., “Innovation and Entrepreneurship in India,” Technology Innovation Management Review, 2014.
yy Hoskisson, R.E., Eden, L., Lau, C.M., & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal,
43(3), 249–267.
yy Joshi A. And Ram L.S (1975), “A Study in Entrepreneurship and Industrial Management”- New Delhi: Orient Longman.
yy Kular I.K.A.S.B.J.S., “Entrepreneurship: Our Glorious Heritage,” Drishtikon: A Management Journal.
yy La Porta, R., Lopez-de Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate
yy Mair, J., & Martı´, I. (2009). Entrepreneurship in and around institutional voids: A case study from Bangladesh’. Journal of Business
Venturing, 24(5), 419–435.
yy Mair, J., Martı´, I., & Ventresca, M. (2012b). Building inclusive markets in rural Bangladesh: How intermediaries work institutional
voids. Academy of Management Journal, 55(4), 819–850.
yy Murphy, P. J.,&Coombes, S. M. (2009).Amodel of social entrepreneurial discovery. Journal of Business Ethics, 87(3), 325–336.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Entrepreneurship on Economic Development & Entrepreneurial Development and Its Antecedents in India- A Study 113

yy Nicholls, A. (2006). Social entrepreneurship: New models of sustainable social change. Oxford: Oxford University Press.
yy Nickels W.G., Understanding Business, (Ed.), Boston: McGraw-Hill, 2004.
yy North, D.C. (2005). Understanding the process of economic change. Princeton, NJ: Princeton University Press.
yy Patricia R Todd R.G.J. (2007), “Internationalization of SMEs in India Fostering entrepreneurship by leveraging information
technology,” International Journal of Emerging Markets, pp. Vol. 2 No. 2, pp. 166-180,
yy Patriotta, G. & Lanzara, G.F. (2006). Identity, institutions, and new work roles. American Behavioral Scientist, 49, 987–999.
yy Schumpeter J.A., Business Cycles, New York: McGraw-Hill Book Co., 1939.
yy Sen, A. (1993a). The economics of life and death. Scientific American, 268, 40–47.
yy Sen, A. (1993b). Does business ethics make economic sense? Business Ethics Quarterly, 3(1), 45–54.
yy Sen, A. (1999). Development as freedom. Oxford: Oxford University Press.
yy Steyaert, C., & Hjorth, D. (Eds.). (2006). Entrepreneurship as social change. Cheltenham: Edward Elgar.
yy Sud, M., VanSandt, C. V., & Baugous, A. M. (2009). Social entrepreneurship: The role of institutions. Journal of Business Ethics,
85(1), 201–216.

ISBN: 978-93-5300-292-3 Technical Session - I

 Entrepreneurs – In the Era of GST
P. Anitha Saravanan
Research scholar, under the guidance of Dr. R. Siva Ram Prasad,
Department of Commerce & Business Administration, Acharya Nagarjuna University, Guntur.

Abstract: Entrepreneurship is a rapidly rising concern of a modern competitive economy and its contribution in
economy is viably recognized worldwide. It is the purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain or organize a profit oriented business unit for the production or distribution of economic
goods and services. Goods and Services Tax (GST) will give a boost to Indian economy and also help the entrepreneurs
to become stable in Indian Market. GST will help in streamline of the business and create a common market for the
whole country. It will help entrepreneurs to focus on their business rather than being worried about tax compliances.
GST is set to benefit entrepreneurs of all kind, with a transformational shift in the indirect tax administration in India.
This paper focuses to highlight the main points of GST and its working and impact on entrepreneurship and business.
Key words: Entrepreneur, GST

Introduction:
The entrepreneur “is someone who specializes in making judgmental decisions about the
coordination of scarce resources.” The term emphasizes that the entrepreneur is an individual. As G. L.
S. Schackle wrote, “The entrepreneur is a maker of history, but his guide in making it is his judgment
of possibilities and not a calculation of certainties,” and identified uncertainty bearing as the economic
function of the entrepreneur. According to Schumpeter, the entrepreneur is the prime mover in economic
development and his function is to innovate. It is defined and established in traditional theories that
Investment in new knowledge increases the technology opportunity set and sharpens the ability to look
into the future. Entrepreneurial activity thus could be very well understood as the activity that holds the
discovery, evaluation and exploitation of opportunities within the defined established framework and
how these opportunities are discovered exploited is related to institutional arrangement of the country or
the individual.
Characteristics of Enterpreneurs:
To be successful entrepreneurs one has to acquire and develop certain qualities, namely:
ŠŠ High motivation for achievement of goal,
ŠŠ Insatiable drive and persistent enthusiasm,
ŠŠ Ready to take risk and face challenge,
ŠŠ Technical expertise,
ŠŠ Spirit of innovation,
ŠŠ Hard working, dedication, commitment and self –confidence,
ŠŠ Willingness to take advice/ learn from the failure and use of Feedback,
ŠŠ Effective management of time.
ŠŠ During the study we found four types of ventures:
»» Independent start-ups;
»» Spin-offs;
»» Acquisitions;
»» Corporate ventures
Entrepreneurs – In the Era of GST 115

How was the necessity entrepreneurship born? After the fall of the Berlin Wall many uneconomical
factories were closed in Central Europe as economies became integrated into the global economy. Those
workers who had jobs in the plants and factories of the former socialist countries were productive members
of society. However, as factories were closed one after another, many of these workers found them- selves
with no other options for work than self employment— necessity entrepreneurship. As one would
expect, the influx of many former wage workers into necessity entrepreneurship resulted in several years
of negative GDP growth. When a new business opportunity is taken up or exploited it is assumed that it
will lead to economic development but on the other hand taking up of necessity entrepreneurship may
not lead to the same. It also may be the case that under development may happen due to self employment.
Many countries have some level of both opportunity and necessity entrepreneurship, studies suggest
that the ratio of opportunity-to-necessity entrepreneurship could be a useful indicator of economic
development; we can say it can also act as a guide for development policy for the policy makers. So the
equation comes out to be of positive relationship between the opportunity ratio and GDP per capita. The
suggestion could be given to less developed countries that they should focus on strengthening General
National Framework Conditions, and developed economies policy should focus on strengthening the
entrepreneurial framework conditions.
GST:
The Goods and Services Tax (GST) is a vast concept that simplifies the giant tax structure
by supporting and enhancing the  economic growth  of a country. GST is a comprehensive tax levy
on manufacturing, sale and consumption of goods and services at a national level. The Goods and
Services Tax Bill or GST Bill, also referred to as The Constitution (One Hundred and Twenty-Second
Amendment) Bill, 2014, initiates a Value added Tax to be implemented on a national level in India. GST
will be an indirect tax at all the stages of production to bring about uniformity in the system.
On bringing GST into practice, there would be amalgamation of Central and State taxes into a
single tax payment. It would also enhance the position of India in both, domestic as well as international
market. At the consumer level, GST would reduce the overall tax burden.
Various central taxes that will be subsumed in GST are:
ŠŠ Central Excise Duty,
ŠŠ Additional Excise Duty,
ŠŠ Service tax,
ŠŠ Additional Custom Duty,
ŠŠ Special Additional Duty and
ŠŠ Central Sales tax.
In order to avoid the payment of multiple taxes such as excise duty and service tax at Central
level and VAT at the State level, GST would unify these taxes and create a uniform market throughout
the country. Integration of various taxes into a GST system will bring about an effective cross-utilization
of credits. The current system taxes production, whereas the GST will aim to tax consumption. Out of a
diversified range of proposals that are necessary to encourage the startups, Goods and Services Tax (GST)
is the one, which is quite important too in terms of indirect tax perspective.

ISBN: 978-93-5300-292-3 Technical Session - I

116 Entrepreneurs – In the Era of GST

Statement of problem:
Entrepreneurial skills and knowledge, their talents and abilities in business and compelling desire
of wanting to do something positive are some of the reasons for the entrepreneurs to organize industries.
Entrepreneurship leads to break the inequalities and reduce the poverty in the economy. The purpose
of the study is to explore and determine the problems faced by entrepreneurs in the recent changes in
the taxation system. It also aims to understand the various motivational factors and policies influence
them to start their business and also make an evaluation regards government support activities for GST
implementation.
Objectives of the study:
ŠŠ To know the favourable impacts of GST on entrepreneurs
ŠŠ To know the problems faced by the entrepreneurs for the implementing GST
ŠŠ To study the policies, programmes, institutional networks and the involvement of support
agencies in promoting entrepreneurship.
Research methodology:
ŠŠ The purpose of methodology is to describe the process involved in research work. The present
study is based only on secondary data. The data were collected from books, journals, and websites.

Favourable impacts of GST on entrepreneurs

ŠŠ Ease of starting a business by bringing uniformity in the Centralized registration process.
ŠŠ An easy regulatory mechanism will bring out benefit not only to new age business, but also helps
to attract more foreign investment from the global market.
ŠŠ Higher exemption to new business by extending the limit up to 25 lacs which will bring down the
tax burden to newly established business.
ŠŠ GST will make the process of paying tax simpler by merging all taxes of different states.
ŠŠ In GST, there is no difference between sales & services and thus tax will be calculated on total
basis.
ŠŠ GST will reduce the logistic cost of the company producing non-bulk goods by 20%.
ŠŠ GST eliminate the cascading effect of multiple Central & States taxes.
ŠŠ GST is a destination base tax system i.e. the liability to pay tax is only generated after the goods/
services reach to the customers.
ŠŠ GST bring down the fiscal deficit, boost GDP & bring economic integration in the country.
ŠŠ GST is levied only at the point of sale & not on the purchase i.e. levied only by the last dealer and
make the product cheaper for the final consumer.
ŠŠ GST is about to create a unified market by cutting the cost of various taxes imposed by central
and state government
ŠŠ In previous tax laws, various input tax credit is not available for set off, after GST implementation
this problem gets resolved.
The inclusions from the Traders association Confederation of All India Traders also deducted the
point that GST will surely increase the compliance policies and structural working of the business units

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurs – In the Era of GST 117

worthwhile but the building of the framework online and creating knowledge and awareness may prove
lacking in the case of small business units.
Problems faced by the entrepreneurs in implementing GST:
ŠŠ The registration on multi stages can be an issue if the business is doing the trade with multiple
states because now it is mandatory to register with each state you are doing business with
ŠŠ The monthly return filing procedure can create problems for businesses as they have to comply
with it else they will be burdened with Rs. 100 per day penalty which is not favourable even for
their compliance rating on the portal
ŠŠ As there are total 36 returns to be furnished in a year, to cope-up with the system they have to hire
an accountant or ask the third party to do the return filing work. So, the burden of return filing
can increase the cost for businesses
ŠŠ For e-commerce operator, it became more complicated because they don’t have any threshold
limit to exempt from the law and they have to register and track the supply of each goods
ŠŠ SMEs dealing with supply to end-users can face the burden as there is no tax exemption for
supply of goods under input credit and it will increase the cost of the product
ŠŠ It can create mismatch in society as there are same tax on luxury goods and normal goods; it can
make rich to be more rich and poor to be poorer
ŠŠ There is variation in demand-supply ratio due to increased raw material cost. So it is expected
that the profitability and debt ratio for SMEs can be burdened if they are not able to overcome
the tax fumes. The last resort for the SMEs is to increase the product prices so that they can resist
the overload
Policies and programs introduced by government in promoting entrepreneurship:
The government supports innovative enterprises and entrepreneurs in a number of ways
Promoting cooperation between researchers and the private sector
The government is working with the private sector and knowledge institutions to improve public-
private partnership.
Reducing the regulatory burden on entrepreneurs
The government is taking steps to reduce the regulatory burden on entrepreneurs. These include
granting permits more quickly – or even automatically – and making greater use of digital technology.
Developing IT tools for entrepreneurs
Providing government services online reduces the regulatory burden on entrepreneurs. IT also
offers unlimited scope for new products or for making business processes more efficient.
Better links between education and the labour market
The government also wants to establish better links between education and the labour market. It
is important for young people who have finished their training to find a job quickly and for there to be
enough skilled workers for companies.
Better cooperation with the franchise sector
The government and the franchise sector created a code of conduct. An independent disputes
committee will also be established. These measures should improve cooperation in the sector and prevent

ISBN: 978-93-5300-292-3 Technical Session - I

118 Entrepreneurs – In the Era of GST

issues like unfair distribution of income between the entrepreneur (franchisee) and the owner of the
trading name (franchisor).
Retail Agenda
Customer behavior and preferences are changing. More and more purchases are being made
online. The government’s 2015 Retail Agenda describes these and other developments in the retail sector.
It also lists the 20 agreements reached between the government and the retail sector. These include new
ideas on combined zoning for shops, cultural establishments and hospitality businesses, and additional
training for shop workers.
Increasing scope for finance
The government has various financial schemes for:
»» Entrepreneurs wanting to expand their businesses quickly;
»» Innovative entrepreneurs.
Conclusion:
An entrepreneur is one who plays significant role in the economic development of a country. The
most important challenges faced by new entrepreneurs include Developing the Vision and Business Idea,
Raising Capital for Startup, Assembling a Business Team, Finding the Right Business Location, Finding
Good Employees, infrastructural facilities etc. So it is necessary to overcome these challenges in order to
conduct an efficient business. GST facilitates various benefits for entrepreneurs. It might have affected
entrepreneurs due to procedural difficulties such as registration, returns filing etc., but in the long run, it
is going to break all the hurdles for startups and lays a great path for the country’s development.
References:
yy https://blog.saginfotech.com/impact-gst-on-startups-smes
yy https://blog.saginfotech.com/gst-benefits-for-startups-in-india
yy The Chartered Accountant journal, ICAI may 2017, Regd. With the RNI No.738/57 ISNN 0009-188X
yy The Management Accountant journal, ICMA July 2017, Regd. With the RNI No.12032/66
yy https://yourstory.com/2017/07/impact-gst-small-businesses-india-tax-finance-arun-jaitley/
yy https://gst.registrationwala.com/gst-impact/impact-of-gst-on-entrepreneurs

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Central Government in Empowerment & Entrepreneurship Development of
Persons with Disabilities (PWDS) In India
*Y. Nagendra **Dr. S. Subba Reddy
*Research Scholar, Department of Business Management, Yogi Vemana University, Kadapa, AP.
**Assistant Professor, Department of Business Management, Yogi Vemana University, Kadapa, AP.
Introduction:
Entrepreneurship Development is a rapidly growing distinct field of study. Entrepreneurship
and entrepreneurship development has become an everyday buzzword, Policy makers, economists,
academics and even common people are talking about it. Seminars, conferences and workshops are being
conducted every year across the world. Which emphasized on the importance of entrepreneurship to
country, society as well as individual development (Bechard and Toulouse 1998). Today entrepreneurship
is regarded as one of the best economic development strategies to develop country’s economic growth
and sustain the country’s competitiveness in facing the increasing trends of Globalization (Schaper and
Volery 2004). Entrepreneurship is a major engine driving many nation’s economic growth, innovation
and competitiveness.
Many studies have been made in the subject of entrepreneurship in general and other relative
field, women entrepreneurship, Ethnic entrepreneurship, Social entrepreneurship, and other allied topics.
Entrepreneurship and social development, but less works and studies has been found out in the field of
Entrepreneurship Development of PwDs.
This paper is attempts to present the various central government measures for the empowerment
of disabled people through the development of entrepreneurial quality, innovation and creativity.
World Scenario
Persons with disabilities make up an estimated 15 per cent of the world’s population, over one
billion–80% of whom live in developing countries. They frequently experience discrimination and face
barriers to participation in all aspects of society. As a result, persons with disabilities are at a high risk
of poverty, which in itself increases the likelihood of having a disability. The inclusion of persons with
disabilities in development programming also makes sense from an economic perspective. Excluding
persons with disabilities from the world of work has costs for societies, in terms of their productive
potential, the cost of disability benefits or pensions, where these exist, and the implications for their
families. This exclusion may cost countries between 1 and 7 per cent of Gross Domestic Product. These
costs to society can be minimized by dismantling barriers to participation of persons with disabilities, in
education, skills development, enterprise development and employment, as well as poverty reduction and
development programmes.
Indian Context:
According to the employment projection given in the Eleventh and twelfth Plans, in the Chapter
‘Employment Perspective and Labour Policy’, 116 million job opportunities will be created leading to
a reduction in the unemployment rate to below 1%. There is a wide gap between the employment rate
of people with and without disabilities in the country. Therefore, the above target for bringing down
the unemployment rate cannot be achieved without addressing the employment issues of people with
disabilities, who constitute about 5-6% of the population.
According to census 2011, there are 2.68 Crore Persons with Disabilities (PwDs) in India.
About 1.34 crores persons with disabilities are in the employable age of 15 to 59 years. Even though,
120 Role of Central Government in Empowerment & Entrepreneurship Development of Persons with Disabilities (PWDS) In India

disabled people constitute a significant percentage of the population of India, their need for meaningful
employment largely remains unmet, in spite of implementation of “The Persons with Disability Act,
1995”. Improving vocational training and employment opportunities for people with disability is a
critical element for enhancing the quality of life for individual with disability, their families, but there are
also substantial gains for the broader economy.
Government Initiatives for empowerment and entrepreneurship development of PwDs : The following
are the details of the Schemes & Institutions working for Entrepreneurship and Skill Development of
PwDs being implemented by the Government of India.
NHFDC (National Handicapped Finance Development Corporation):
In 1997, the Government set up a Corporation named National Handicapped Finance and
Development Corporation (NHFDC) under the administrative control of the Ministry of Social
Justice & Empowerment for providing financial assistance at concessional rate of interest to Persons
with Disabilities (PwDs) for self-employment. This Corporation also gives skill training grant for Skill
Training and Entrepreneurship of PwDs wherein it provides 100% of the total recurring cost of the
training programme to the training institutes/organisations. The various schemes of NHFDC are
ŠŠ Scheme for Financial Assistance for Skill & Entrepreneurial Development: The objective
of the scheme is to provide training to the disabled persons to make them capable and self-
dependent through proper technical training in the field of traditional and technical occupations
and entrepreneurship. Financial assistance in the form of grant is provided for conducting/
sponsoring the training. The major features of this scheme are
»» The beneficiaries should be in the age group of 15-50 years and fulfill the other eligibility
criteria for availing loan from NHFDC.
»» 100% of the total recurring cost of the training programme is provided by NHFDC.
»» Stipend - The recurring training cost shall include a stipend of Rs. 500/- per week per trainee
i.e Rs 2000/- per month to the trainee to cover the cost of transportation and other incidental
expenses. The training institute/SCA shall release the stipend in favour of the trainee through
A/c payee cheque only.
»» The training may be provided through Government Training Institutes like Industrial Training
Institute (I.T.I.), Polytechnic, Engineering College, Agriculture University, National Institute
for Entrepreneurialship and Small Business Development etc. or by the Private Training
Institutes.
»» Persons with Disabilities can also be included in regular batches of scheduled training along
with non-disabled persons. In such cases, the number of Persons with Disabilities and the
nature of their disability should be clearly indicated.
ŠŠ Micro Financing Scheme: The Corporation assists PwDs by providing loan for self –employment
and other economic ventures. The major features of this scheme are
»» NHFDC would provide 100% of the project cost.
»» The Loan will be provided for the income generation activities like Small business/trade,
Tiny/cottage industry, Artisan activities, Agricultural & allied activities, Transport sector
activities etc.,
»» The maximum loan amount shall be limited to Rs 10 lakhs in case of NGO or SHG. The rate
of interest shall not exceed 5% per annum.
Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Central Government in Empowerment & Entrepreneurship Development of Persons with Disabilities (PWDS) In India 121

»» A rebate of 1% per annum on interest rate will be admissible to women beneficiaries.

»» The term loans should be repaid within a period of 36 months in quarterly installments.
ŠŠ Scheme for Vocational Education and Training of PwDs: The scheme aims at providing
financial support to those eligible PwDs who, have the minimum qualification, as required by
the institution / organization running the vocational education or training. The major features of
this schemes are:
»» The Quantum of finance is up to Rs 2.00 Lakhs.
»» The Rate of interest is as per the education loan scheme of NHFDC.
»» If the course duration is 1 year, then the repayment will start 6 months from the completion
of the course.
»» If the course duration is more than 1 year, then the repayment will start 12 months from the
completion of the course.
»» The repayment period is up to 7 years after commencement of the repayment.
ŠŠ Scheme of Financing Construction of Commercial/Business Premises for starting Self
Employment Activity: The main objective of the Scheme is to assist the needy disabled
persons by providing composite concessional loan for construction of Commercial/Business
premises and starting self-employment activity. The Commercial/Business premises constructed
under the Scheme must be approved by concerned department i.e. Development Authority or
Urban Improvement Trust etc. The major features of this schemes are:
»» The Quantum of finance is up to Rs 3.00 Lakhs.
»» Eligibility and rate of interest as per the NHFDC norms for self-employment loan.
»» The loan is to be repaid within 10 years.
ŠŠ Scheme for providing handholding support to Disabled Entrepreneurs through ‘Vishesh
Udyami Mitras: The main objective of the Scheme is to provide assistance to the needy disabled
persons in form of information, support, guidance for procedural/documentation formalities
required for availing concessional credit under NHFDC schemes through SCAs/RRBs by various
Institutions/Agencies individuals i.e. ‘Vishesh Udyami Mitras’ for setting up and running of the
enterprise. Role and Responsibilities of Vishesh Udyami Mitras are as follows:
»» Identification of potential eligible PwDs interested to take up self-employment ventures.
»» Identification of suitable project/product/enterprise and preparation of bankable project
report for the same; and filling of loan application for accessing concessional credit under
NHFDC scheme through SCAs/RRBs/etc., of NHFDC.
»» Provide guidance to PwDs entrepreneurs regarding various registrations / licenses/ clearances
/ No Objection Certificates related to chosen business activity.
»» Once the enterprise has been successfully set up, the Udyami Mitras would also monitor
and follow up on the functioning of the enterprise and provide help in overcoming various
managerial, financial and operational problems.
»» Rates of financial assistance to be given by NHFDC to Vishesh Udyami Mitras
(i) For loan up to Rs.1.0 lakh : Rs.500/- per project
(ii) For loan above Rs.1.0 lakh & up to Rs 5.0 lakh : Rs.750/- per project

ISBN: 978-93-5300-292-3 Technical Session - I

122 Role of Central Government in Empowerment & Entrepreneurship Development of Persons with Disabilities (PWDS) In India

(iii) For loan above Rs 5.0 lakh :Rs.1000/-per project

ŠŠ Scheme of Financing NGOs working in the area of Disabilities in order to make Social
Entrepreneurs: The major Purpose of the scheme is to provide financial assistance in the form
of loan to the NGOs working in area of disabilities in order to make them social entrepreneurs
by setting up/expansion of an income generating activity for the benefit of the disabled persons.
The nature of income generating activity will be such that it involves the PwDs directly and
income will be distributed among the PwDs. The income generating activity will be managed by
concerned NGOs, which is expected to render its services voluntarily.
The main objective of the Scheme is to assist the NGOs working in area of disabilities
in order to promote economic development activities and self-employment ventures in production/
manufacturing sector for the benefit of Persons with Disabilities.
ŠŠ Scheme of financing assistive devices to enhance the employability or increased opportunity
of self-employment of PwDs: The major purpose of this scheme is to provide financial assistance
in the form of loan to the target group for purchase of assistive devices like screen reader, motorized
tricycle, scooty, hearing aid etc. to enhance their employability/improve the prospects of self-
employment.
The main objective of the Scheme is to assist the needy disabled persons by providing concessional
loan for procuring durable, reliable and scientifically manufactured, modern, standard aids and appliances
that may enhance their prospects of taking up self-employment/ employability. The aids and appliances
purchased under the Scheme must be ISI marked or has equivalent certification of quality. The major
features of this scheme are follows:
»» The quantum of loan is up to Rs 5.00 lakhs.
»» The repayment of loan is to be made within 5 years.
»» The rate of interest up to Rs 50,000 to be paid by SCAs to NHFDC is 2% P.A and individual
beneficiaries need to pay 5% P.A to SCAs.
»» The rate of interest for above Rs 50,000 to Rs 5.00 lakhs to be paid by SCAs to NHFDC is
3% P.A and individual beneficiaries need to pay 6% P.A to SCAs.
II. Deendayal Disabled Rehabilitation Scheme (DDRS):
The umbrella Central Sector Scheme of this Ministry called the “Scheme to Promote Voluntary
Action for Persons with Disabilities” was revised w.e.f. 01.04.2003 and was renamed as the “Deendayal
Disabled Rehabilitation Scheme (DDRS)”.
Under Deendayal Disabled Rehabilitation Scheme (DDRS) Vocational Training Centre projects
are given financial assistance (up to 90% of the project cost) for skill up gradation of PwDs. These are
meant for the age group of 15-35 years to provide skills to enable such persons to move towards economic
independence. “Rehabilitation” as “a process aimed at enabling persons with disabilities to reach and
maintain their optimal, physical, sensory, intellectual, psychiatric or social functional levels”. Some of the
main components of rehabilitation are:
ŠŠ Provision of assistive aids and appliances
ŠŠ Education
ŠŠ Vocational training
ŠŠ Assistance for employment

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Central Government in Empowerment & Entrepreneurship Development of Persons with Disabilities (PWDS) In India 123

ŠŠ Training in or assistance for independent living

III. Skill training through the National Institutes:
The seven National Institutes (NIs) under the administrative control of Department of Disability
Affairs also organize Vocational Training Programmes for the PwDs in their respective field of disability
for appropriate trades.
IV. SIPDA (Scheme for Implementation of Persons with Disabilities Act:
Under this scheme, financial assistance is provided to State Governments and to autonomous
organizations/Institutions under Central or State Governments, for various activities relating to
implementation of “The Rights of Persons with Disabilities Act, 2016. Under this scheme grant-in-aid is
provided for the skill development programmes for PwDs with effect from the year 2013-14.
V. Vocational Rehabilitation Centre for Handicapped:
The Ministry of Labour & Employment has set up 21 Vocational Rehabilitation Centres for
Handicapped (VRCs) at different parts of the country. The main objective of these centers is to impart
non formal vocational training and extend vocational rehabilitation assistance to PwDs as per their
residual capacities with a view to assist them to lead an independent and productive life in society.
VI. Pradhan Mantri Kaushal Vikas Yojana:
PMKVY is a skill development initiative scheme of the Government of India for recognition
and standardization of skills maintained by Ministry of Skill Development and Entrepreneurship. This
scheme the targets to provide training to 50,000 PwDs from 2016 to 2020.
Reference
yy Shanimon.S ‘The Emerging Development Model in India Differently-Abled Entrepreneurs’, IJSR Publications, Volume 4, Issue 1,
January 2014.
yy Base Line Report ‘Employment of Disabled People in India’ prepared for National Centre for Promotion of Employment for Disabled
People (NCPEDP), February 2009.
yy Reports of WHO, UNDP, UNICEF.
yy The Rights of Persons with Disabilities Act, 2016.
yy Various schemes of NHFDC. Retrieved from http:// www.nhfdc.nic.in/schemes.
yy Pradhan Mantri Kaushal Vikas Yojana. Retrieved from http://www.pmkvyofficial.org.
yy Deendayal Disabled Rehabilitation Scheme. Retrieved from http://disabilityaffairs.gov.in/content/page/ddrs.php.

ISBN: 978-93-5300-292-3 Technical Session - I

 Problems and Prospectus of Entrepreneurship in India
*Dr. R. Emmaniel, **P. Vikram Babu
*Professor & HOD, St. Ann,s col.of Engineering & Technology. Chirala. Andhra Pradesh,
**Asst professor, St. Ann,s col.of Engineering & Technology. Chirala. Andhra Pradesh,

Abstract: Entrepreneurship is the risk taking by innovators called entrepreneurs in an economy. Typically, entrepreneurship
involves the creation of new products, new ways to produce products, or new businesses. Innovation is the intrinsic
characteristic of every developed nation. Innovation fuels a nation’s growth, and a highly innovative country has the potential
to reach pinnacle of prosperity. The actions of entrepreneurs are so valuable to the operation of a dynamic, changing economy
that some economists consider entrepreneurship to be a fourth factor of production joining natural, human, and capital
resources. This paper focuses on the importance of innovation in entrepreneurship development as it is only innovation,
which made the products and services better from the others. This paper clearly depicts the current role of innovation in
entrepreneurship development. It also highlights how these innovations can lead to economic growth of our country.
Key words: Growth, Government Policy, growth of Indian economy, innovation in business.

Introduction
To quote the economist, T. N. Srinivasan, „Innovation and Entrepreneurship is a two-way
relationship. In one sense, in innovation, someone finds something but that somebody may not be
equipped to translate that something into a commercial proposition. That is where Entrepreneurship
comes in.
“Innovation is the specific instrument of entrepreneurship…the act that endows resources with
a new capacity to create wealth” – (Drucker, 1985). An entrepreneur is a person who is willing and able
to convert a new idea or invention into a successful innovation. Invention means generation of new ideas
whereas innovation means bringing that idea into life. Eentrepreneurs are those persons who take the risk
to bring those ideas into life. The success of a business enterprise depends upon its novelty or the unique
thing, be it a product or any feature, which it offers to its customers (Sharma and Chrisman, 1999). The
vitality of entrepreneurship and innovation can be highlighted by the fact that they form the backbone
of a majority of the economic s growth in a given country. Thus, if USA is the largest economy, it can be
attributed to the commitment towards research and innovation.
In research work, an attempt has taken to explore all important factors in relation of
entrepreneurship and innovation. In India, how education system is playing a significant role in
promotion of entrepreneurship is a very challenging issue. Data collected from the National Knowledge
Commission defines how several numbers of entrepreneurs are increasing over a period of time with
innovative business plans.
The Objective of this paper is to understand the role of innovation in entrepreneurship development
in India, and also try to understand the Government support for innovative knowledge enterprises.
Furthermore, it tries to examine the role of education studies in generation of innovative ideas. The main
objective will be to suggest certain measures; this can be adopted to take the advantage of innovation.
India has tremendous potential in the field. India offers a unique incubation environment for most,
entrepreneurs, greatly distinguishing it from other western democracies. A country where almost 50% of
the Indian population is below 35 years old, it is apparent that India has a large working class, which is a
great potential and assets for a nation (Chandra, 2009). In addition, young technocrats are also looking
out for opportunities to exploit their full potential by setting up their own ventures thus becoming “job
generators” rather than “job seekers”. They are generating job opportunities for the unemployed people.
Problems and Prospectus of Entrepreneurship in India 125

In spite of being a developing nation with a population of over billion people, we fail to produce
the entrepreneurs, such as Narayana Murthy, Dhirubhai Ambani, Lakshmi Mittal, Kiran Shaw in large
numbers, which is required for large nation. This is deep rooted problem and involves a minutiae analysis
of our complex mindset (Menon and Ramsay, 2008).
Relevance of the Study
Given the increasing significance and visible impact of Entrepreneurship in wealth-creation and
employment-generation, we consider it critical to India’s growth and development. This study has been
undertaken to explore factors that have advanced Entrepreneurship in India and also several other factors
that could further encourage and facilitate even greater growth through innovation.
The Role of Education Studies in Generation of Innovative Ideas
As discussed previously, the key generators of wealth from knowledge depends upon the availability
of the skilled human resource. These skills and competencies can be generated in an individual through
good education system. There is a fact that passion and curiosity form the very base of innovation. An
entrepreneur should have good perception of an idea, credible business plan, and clarity of what he wants
to do to become successful. This knowledge and idea about the business can only be built through sound
education system.
The purpose is to fill the gap in preparing today’s youth with a CEO mindset, supported with
skills to deal with changing critical needs of the knowledge era that is revolutionizing the global economy.
Generating a critical mass of entrepreneurs oriented to high levels of growth depends on the quality of
education provided and the presence of an environment that encourages innovation (Maqbool, 2006).
The highly rigid educational system should be more flexible one, so that students can choose
their own subjects of interests and thus design their own curriculum. This will result in a greater level of
interest, which indirectly would result in a greater level of interest with more curiosity and passion. The
schools across America follow this flexible system, which has proved to a blessing in disguise and is now
an intangible asset (Drucker, 2007).
To encourage entrepreneurship, the academic institutions must encourage student’s initiatives,
organizations and unions. Business plans competitions should be organized on more frequent basis
and proper guidance and assistance to prospective entrepreneurs on various aspects, such as preparing
reports, obtaining project approvals, loans and facilities from agencies of support system, information
on technologies, etc (Devarajan and Ramnarayan, 2003). History had recorded many school and college
leaders blossom into business pioneers. Be it N Hira Nandani, Lakshmi Mittal or Arun Jaietly, they
were all leaders at their schools, colleges at some point in time. Recently, some young students from R.A
Poddar School start their very own cookie company under the guidance of the school authorities. These
facts point out to the need of developing leadership qualities at an early stage in life.
Government Role Regarding Innovation
The government has to be investor and entrepreneur friendly, in order to exploit the true potential.
The government on its part should give a plethora of incentives to new risk takers in order to make
theirs rather than risky decision that is somewhat easier. These incentives could include tax benefits, land
allocations, water and electricity supply etc. Novice risk takers should be provided with trouble shooters
and mentors on behalf of the government, so as to choose the correct path and strategy. Banks and other
financial institutions should also provide adequate credit to new ventures, so as to stimulate the business
through good liquidity. Besides helping to establish companies, government should also regulate these

ISBN: 978-93-5300-292-3 Technical Session - I

126 Problems and Prospectus of Entrepreneurship in India

companies in order to ensure that they abide by the highest standards of business ethics (Goswami and
Dalmia, 2008).
Role of Innovation in Entrepreneurship Development in India
Entrepreneurship is to take the initiative to start a new business venture with an innovative idea
or to make certain amendments in the existing product according to the opportunities available to the
entrepreneurs. To take repeated action to overcome obstacle that may prevent them from reaching their
goals. Entrepreneurs takes action on their own to get information that will help them to achieve their
objectives or clarify problems and to successfully persuades others to buy a product or service, also to
convinces’ someone to provide finance, and finally, to monitor continuous change for further innovation.
Highlights of Innovative Entrepreneurship in India
A critical eye on the „power of ideas‟ that is, innovation and „bringing ideas into life‟ which
is done through entrepreneurship together can be considered as innovative entrepreneurship. Here an
analysis of some of such innovative ideas and their success in the business field is thus explained further.
ŠŠ Suvarna Urja wind power Pvt. Ltd., Pune: It designs and manufactures wind-turbines and power
storage systems specifically for the Indian rural power market. Since 2009, this small company
has already received orders to produce wind turbines and power systems for four Indian states
(Ramachandaran et al., 2006).
ŠŠ Sustainable technologies and environmental projects Ltd., Mumbai
»» In the focus on oil industry recycling technologies, STEPS have been developed, such as the
“Poly Crack” technology, to converts plastic waste into diesel. The process is more efficient than
competing technologies and leaves no heavy metal residues (pollutants). Since 2007, STEPS
efforts have received world-wide media coverage. The company has sold their Poly Crack
conversion system to several companies in India and Europe. Promising new opportunities
in the USA and South East Asia are on the horizon, and STEPS N.A., a North American
subsidiary has already been established.
»» Telugumatrimony.com: An idea of starting a Telugu portal, which later shifted its focus on
Matrimony, became a world class business. The innovative ideas of Telugu matrimony.com
are as follows:
»» Photo Protection: they saw the need from their customers about privacy.
»» Horoscope matching and creation: Another important need which created value for their
customers.
»» Profile verification: To their surprise, people opted for 3rd party verifications, while searching
for their business partner on the net
»» Matrimony reference: Their customers became their marketers when reference system was put
into place.
»» Payment options – Through Sifi Way, tie ups with banks, creating local associates (who get
commission) in various cities.
»» Going mobile: Another trend they spotted to serve the needs of their customers
»» Partnerships, such as with Tata Sky. All of these innovative ideas lead to the success of
Telugumatrimony.com.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Problems and Prospectus of Entrepreneurship in India 127

In May 2008, 27-year old Rajnish Sinha and his IIM-Kozhikode batch mate Siva Cotipalli started
Bangalore-based DhanaX. A microfinance firm and the idea of clubbing it with person to person (P2P)
lending, a platform where people contribute small amounts online as loans. NGOs take up the task of
disbursing these loans to needy communities in their areas of operation. Interest is charged at 24%, of
which DhanaX keeps approximately 6%. So far, DhanaX has helped its four partner NGOs acquire loans
of Rs 20 lakh.
In summary, in this new era of the knowledge revolution, India must seek out and exploit some
of its inherent strengths to accelerate economic development, while creating extremely attractive avenues
for employment generation. Bio–Technology (BT) and Information Technology (IT) are the two new
pillars of the era of knowledge management.
Recent surveys, such as those undertaken by Goldman Sachs and Price water house Coopers,
have estimated that India has the potential to be among the world’s leading economies by 2050.1 In this
situation, India enjoys enormous potential for the creation of wealth through knowledge. Entrepreneurship
and Innovation are the key drivers for generating wealth from knowledge, supported principally by the
availability of skilled human resources, access to finance and the ability of the State to create an enabling
environment (Punnathara, 2009).
Outlook Business, May 5, 2007; Goldman Sachs’ BRIC report states that by 2050, India could
have a GDP of $37.66 trillion, just marginally less than USA’s estimated $38.51 trillion. The Price water
house Coopers report, ‘The World in 2050’ states that India could be the fastest growing economy by
2050.
Science, Technology, and Innovation in the Indian context
The use of the word “innovation” in the national science and technology policy lexicon is rather
new. India’s Scientific Policy Resolution 1958 sought the “cultivation of science and scientific research
in all its aspects.” The focus was on “early and large scale development of science and technology” for
the wealth and prosperity of the nation. The 1983 Technology Policy Statement focused on the need for
technical competence and self-reliance. It also mentioned technology acquisition and transfers, as well as
a critical facet that was hitherto missing from policy debate in India implementation.
The idea of innovation was inserted in the Science and Technology Policy 2003 with a view to
strengthening the national R&D infrastructure and creating a “national innovation system.” Innovation
implies science- and technology-based solutions that are successfully deployed in the economy or the
society. Also mentioned was the need to develop and leverage India’s traditional knowledge, as well as to
generate and manage India’s intellectual property resources. Monitoring for speedy implementation of
the policy was also given weight age.
Barriers to Innovation in India SMEs
To improve the innovation performance of SMEs, it is very important to understand the key
barriers in the innovation ecosystem. The barriers to innovation are classified in six categories: people,
financial, information, government policy, infrastructure, and market constraints. The Indian National
Innovation Survey captures the response of the innovative firms for different barriers and sub-barriers. The
responses show the factors that firms typically consider to be barriers to pursuing innovation. The barriers
are analyzed in the context of innovative small and medium firms; non-innovative firms as classified in
the survey are not included.

ISBN: 978-93-5300-292-3 Technical Session - I

128 Problems and Prospectus of Entrepreneurship in India

1. People and Skills as a Barrier to Innovation

Development and implementation of any innovation demand skilled labor. The need for
specialized skills in the form of scientists, technicians, or engineers is more apparent in the case of R&D
innovations. Non-R&D innovations, such as organizational and marketing innovations, also require
specialized skills and staff who are well versed in management and marketing practices. More than 85% of
innovative small and medium firms see unavailability of skilled workers as a barrier to innovation, making
it one of the foremost challenges in SME innovation. SMEs are generally unable to recruit a highly skilled
workforce due to financial constraints and lack of adequate infrastructure. The lack of the right internal
management can adversely impact both the firm’s innovation capability and its overall performance due
to lack of direction, rising inefficiencies, and absence of market focus, among others. Innovative small and
medium firms perceive internal management as a barrier to innovation.

2. Finance as a Barrier to Innovation

The financial barriers mainly involve the availability of internal and external finance and the cost
of innovation. More than 87% of innovative small and medium firms see limited availability of finance
from both within the enterprise and external sources as a barrier to innovation. The cost of innovation is a
key barrier for more than 75% of the innovative small and medium firms; this clearly shows that financial
constraints remain one of the biggest barriers to SME innovation.
3. Information as a Barrier to Innovation
Timely access to valuable information is critical for SMEs to gain strategic advantage in pursuing
innovation. The inability to access key market information can seriously impair a firm’s performance. The
information barriers refer to access to information on technology and markets.
4. Government as a Barrier to Innovation
Government policy and the government in itself exert a strong influence on the innovation
capacity of SMEs. The government has a critical role to play in every sphere of innovation including
access to finance and technology, capacity building and human resources, market linkages, availability
of research facilities, and access to key information, among others, via different policies and schemes.
It would not be wrong to say that the government is the single biggest factor governing the innovation
ecosystem of SMEs, especially in the case of developing economies such as India.
5. Infrastructure as a Barrier to Innovation
Availability and access to infrastructure are crucial for R&D-based innovations. The ability of
a firm to use laboratories and research facilities inside and/or outside the premises exerts a significant
influence on its capability to develop R&D innovations. Majority of the innovative small and medium
firms do not have access to adequate infrastructure and test labs
6. Market Factors as a Barrier to Innovation
Market factors have an important role to play in innovation. Market characteristics such as
competition, protectionist nature, dominance and monopoly, and demand, among others, affect a firm’s
ability to innovate, especially product and market-related innovations. More than half of the innovative
small and medium firms also face the barrier of uncertain demand for innovative products and services.
Given the uncertain demand, SMEs would be reluctant to invest their resources in developing new
products and would focus instead on improving their production and quality processes.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Problems and Prospectus of Entrepreneurship in India 129

7. Intellectual Property Rights (IPR) issues

The patent offices in the country work very slowly and SMEs are able to get patents only after
Some delay. In some case, it has taken almost five years for a patent to be granted. This hampers
the introduction of new products developed by SMEs into the market.
Conclusion
Entrepreneurship is a critical aspect of the knowledge economy and India has a large pool
of entrepreneurs, who have the ability to make a difference and need to be nurtured to achieve their
potential, and provide a further boost to the Indian economy. India needs entrepreneurs for two reasons
– first, to create employment and wealth and, second, to get the most out of existing opportunities.
Practical knowledge based education system should be started that will create more interest in the
students. Educational institutes should also work as regional information centers by keeping the record
of databases of the research work done (Srinivasan, 2007). Government should also take the initiatives
by not only providing adequate support in financial terms but also by rendering training facilities to
the entrepreneurs as and when the need arises. To explore the possibility of having an all encompassing
website on Entrepreneurship as a one-stop information portal for current and aspiring entrepreneurs.
Synergies between Education (including modern vocational education training/skill development),
Innovation (converting ideas into wealth and employment) and Entrepreneurship should be encouraged.
There is need to enact a uniform legislation for publicly funded research that would grant IP the rights
for successful results of research to universities/research centers and also entitle the inventor to a share
of the royalties from commercialization, as a source of innovation and entrepreneurial advancement.
India’s innovation intensity could also improve significantly if more PhD and other research scholars
are encouraged by providing a supportive environment for Entrepreneurship. There is also a need to
significantly increase business incubation for Entrepreneurship (BIE) by comprehensively exploring
policy options to improve access to financing. While valuable work is being done by Indian incubators,
there is huge scope for them to become entrepreneurial themselves by providing services such as market
data, helping in preparing business models, recruiting skilled employees, etc.
If India is able to use its true potential of becoming leader in entrepreneurial activities, then the
resultant financial gain are always of benefit to the country. The budding sectors to innovate and in which
Indian entrepreneurs can prove themselves the leaders are Bio-technology and Information Technology
(Saxena, 2004).
References
yy Export-Import Bank of India. 2012. Strategic Development of MSMEs: Comparison of Policy Framework and Institutional Support
Systems in India and Select Countries. Occasional paper. Mumbai.
yy Finston, S. K. 2015. The Innovation Blueprint: Identifying, Adapting and Assimilating Best Practices for R&D Intensive MSMEs.
Washington, DC: Finston Consulting, LLC. www.finstonconsulting.com/files/InnovationBlueprint-Final-2015.pdf
yy Fourth All India Census of Micro, Small and Medium Scale Enterprises 2006–2007: Unregistered Sector. New Delhi.
yy The contribution of MSMEs to GDP, Exports, and Employment. Press Information Bureau. July. http://pib.nic.in/newsite/
PrintRelease.aspx? relied=10720
yy Chandra A (2009). India: Country replete with phenomenal innovation and entrepreneurship potential. Available on the web at http://
www.knowledgeportal-in/contents/node/445,
yy Devarajan RTP, Ramnarayan S (2003). Entrepreneurial Leadership and Thriving Innovation Activity, Proceed of 7th Intl. Conf. on
Global Business and Eco. Development, Bangkok,
yy Drucker PF . The Practice of Innovation, Innovation and Entrepreneurship Practice and Principles, Harper and Row, New York, pp.
19-33.

ISBN: 978-93-5300-292-3 Technical Session - I

130 Problems and Prospectus of Entrepreneurship in India

yy Drucker PF. Entrepreneurial Strategies, Innovation and Entrepreneurship Practice and Principles, Harper & Row, New York, pp. 207-
243. Corporate Entrepreneurship, Effective Executive, the ICFAI University Press.
yy Goswami A, Dalmia N, Pradhan M,Report of Knowledge Commission India 2008 ‘Entrepreneurship in India‟.
yy Ramachandaran K, Devarajan TP, Sougata Ray , Corporate Entrepreneurship: How?, Vikalpa, 31: 1.
yy Saxena SC, The Role of Innovation: Technology and entrepreneurship lead the way. Prabandhan: Ind. J. Manage., 12(1): 49-65.
yy Srinivasan TN, Create a Framework that helps Entrepreneurs, interview to The Hindu, Business Line.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Problems and Prospects of Social Entrepreneurship
*M.V Subba Rao, **MVS Vaishnav,
*Assistant Professor, Viswa Bharathi pharmacy and Management, Perecharla,
**MVS Vaishnav, MBA student, Gitam University, Vishakhapatnam

Abstract: Social entrepreneurship is a topic of growing interest among academicians and practitioners. The
potential of social problems in India is well known, but the degree of support and interest is hardly significant. An
entrepreneurial mindset is re-emerging in India. Right from ancient times, India has been entrepreneurial. But
the era of liberalization of late had released the genie from the bottle – the suppressed urge and natural instincts
of our effervescent entrepreneurial class has once again been unleashed. The opening up of the industrial sector to
foreign competition had created a flutter among the Indian industrial circles. The paper attempts to shed light on the
comment state of affairs on the theme of challenges and opportunities facing the social entrepreneurship scene in India.
Key words: social entrepreneurship, challenges, problems, opportunities.

Introduction
The economic development of a Nation depends on its industrial development. The industrial
development is based on the entrepreneurial competencies of the people. Entrepreneurs are innovative,
highly motivated, and critical thinkers. When these attributes are combined with a drive to solve social
problems, a social entrepreneur is born. Social enterprises are the organizations which aim their efforts
toward improving the general welfare of society and they apply market based strategies to achieve a social
purpose. Social entrepreneurs and social enterprises share a commitment of going ahead with a social
mission of improving society. There is a great difference between social entrepreneurs and nonprofit
organizations on the basis of their goals and objectives. Social Entrepreneurs are driven by social as well
as financial goals whereas non profit organizations work purely for social purpose.
An understanding of whether and how social entrepreneurship differs from processes and activities
by political actors or social activists who also aim to bring about social change or alleviate social problems.
In a nutshell, the concept of social entrepreneurship is still poorly defined and its boundaries to other
fields of study are still fuzzy. While to some this may appear to be a problem, we see it as a unique
opportunity for researchers from different fields and disciplines, such as entrepreneurship, sociology and
organizational theory, to challenge and rethink central concepts and assumptions.
Literature Review
Social entrepreneurship as a practice that integrates economic and social value creation has a long
heritage and a global presence. The global efforts of Ashoka, founded by Bill Drayton in 1980, to provide
seed funding for entrepreneurs with a social vision (http://www.ashoka.org); the multiple activities of
Grameen Bank, established by Professor Muhammad Yunus in 1976 to eradicate poverty and empower
women in Bangladesh (http://www.grameen-info.org); or the use of arts to develop community programs
in Pittsburgh by the Manchester Craftsmen’s Guild, founded by Bill Strickland in 1968 (http://www.
manchesterguild.org): these are contemporary manifestations of a phenomenon that finds its historical
precedents in, among other things, the values of Victorian Liberalism. The conviction of “enlightened
entrepreneurs”, as some Victorian industrialists are referred to, that there was a need to combine
commercial success with social progress gave birth to industrial groups that used economic wealth for
the good of the community (Bradley, 1987; Thompson, Alvy, & Lees, 2000). While entrepreneurial
phenomena aimed at economic development have received a great amount of scholarly attention (see
Busenitz, West III, Sheperd, Nelson, Chandler, & Zacharakis (2003) for a review of the empirical and
132 Problems and Prospects of Social Entrepreneurship

theoretical development of the entrepreneurship concept), entrepreneurship as a process to foster social

progress has only recently attracted the interest of researchers (Alvord, Brown, & Letts, 2004; Boschee,
1995; Dees and Elias, 1998; Thompson, 2002). The development of social entrepreneurship as an area
for research closely resembles the development of research on entrepreneurship itself. Williams (1999)
argued that interest in entrepreneurship as a field of study was crucially stimulated by community leaders’
belief that entrepreneurship was a defining trend of the 21st century. Similarly, we observe that the
rise of scholarly interest in social entrepreneurship goes hand in hand with an increasing interest in the
phenomenon among elites. Over the last few years, a number of successful business entrepreneurs have
dedicated substantial resources to supporting social entrepreneurship. For example, Jeff Skoll, co- founder
of eBay, created a foundation and donated 4.4 million pounds to establish a research center for social
entrepreneurship (http://www.skollfoundation.org). Jeff Bezos, founder of Amazon, recently announced
a one million US dollar award for innovative approaches and breakthrough solutions to effectively
improve communities or the world at large (http://www.amazon.com). Finally, social entrepreneurs join
the leaders of nations and corporations in panel discussions at the World Economic Forum in Davos
(http://www.weforum.org).
Discussion
Scope of Social Entrepreneurship
Social entrepreneurship is a growing, worldwide movement. The scope of social work is no longer
limited to activism. Today, there are many opportunities in child welfare, community policing, healthcare,
counselling etc in not only NGO’s but also national and international bodies as well as social enterprises.
Additionally, there is immense scope for social entrepreneurship and starting your own social initiatives.
Social entrepreneurship will play a big role in bringing the growth to the rural masses in India and so
it becomes important to study the factors, like fair trade, that will shape the social entrepreneurship
philosophy.
First we will look into the areas where India faces problems, some of which are listed below:
ŠŠ Making the educated youths employable- many of our courses are designed in such a way that
they don’t cater to needs of the industry.
ŠŠ Healthcare- affordability
ŠŠ Urban and Rural Sanitation
ŠŠ Making use of renewable sources of power
ŠŠ Nutrition and Food for the poor.
ŠŠ Affordable housing.
ŠŠ Agriculture
Many more are there, but these are the basic needs of the Indian society, which are being the topics
of discussions from so many years, many policies and laws were passed by state and central governments
of India. But still exists!
Social enterprises in these sectors will not only create many opportunities but also can find a
solution for these problems. For example an enterprise to train the youth with industrial oriented skills,
is a good entrepreneurial option at the same time it will answer the problem of unemployed educated
youth.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Problems and Prospects of Social Entrepreneurship 133

COSTFORD, an organization with 13 centers across Kerala offers cost effective plans to build
house. “COSTFORD encourages its institutional, public and private clients. Along with organizations
sharing similar concerns about social equity and a healthier ecosystem, to envision alternative architecture
as a path to a more just, peaceful and sustainable world” (www.costford.com) is a very good example for
an enterprise with social goal (social enterprise) of affordable homes.
EARTHEN LIFE Earthen Life provides a sustainable and a decentralized waste management
solution by converting organic waste to renewable energy at source while taking an inclusive approach
of integrating the waste pickers and other low income communities in the value chain. Earthen Life is
based in Maharashtra with offices at Mumbai and Pune. When many opportunities are available, when
the Indian scene is wide open for new ideas, when many social entrepreneurs set the examples, why does
entrepreneurs hesitate to make a first step?
Challenges for Social Entrepreneurs in India
The positive feedback of success and attention will naturally encourage new entrants, driving
more and more effective social entrepreneurial initiatives. Peredo & McLean (2006) indicate that there
are nevertheless tremendous hurdles and challenges that many social entrepreneurs face while operating in
India and that hinder the entrance of new social entrepreneurial ventures. Unfriendly bankers, procedural
delays, bureaucratic indifferences all impede the smooth launching of enterprises. Ironically enough,
the policy imperatives with their trust on protecting the new entrepreneurs in the small sector from the
shocks of unequal market relations with the large sector, have turned out to be the hardest stumbling
blocks on their path to growth and prosperity. Complex and burdensome regulatory and administrative
environment created as a result of excessive state intervention became the major deterrent to the emergence
of new entrepreneurship. Some of the major challenges are explained below:
Lack of Education in Entrepreneurship: Entrepreneurship in India is still encumbered
by the traditional educational system of the country. As education is the main source for promoting
entrepreneurship in the business sector of the economy, there is still a lack of specific curriculum on
entrepreneurship development in the Indian education system. Due to the increasing demand of this
sector, currently, the entrepreneurship education is a “new cup of tea” limited to graduates of business
schools and management institutes, whereas for other streams of education like the sciences and arts there
is not a single course on entrepreneurship in the curriculum. Due to this gap in the Indian education
system the country’s entrepreneurial sector is still underdeveloped and struggling. Even business schools
that have developed curriculum on entrepreneurship are lacking in terms of social entrepreneurship. This
lack of social entrepreneurship knowledge presents a major challenge for social enterprises in finding
competent and skilled promoters.
Lack of Financial Assistance: Lack of financial sources is a major challenge for the Indian
entrepreneur. Generally, the social entrepreneurs run their business with their own funds or by raising
funds from the local money lenders at a high rate of interest, which sometimes becomes a financial
burden on them. The reason behind this is the bank’s avoidance to providing loan facilities for social
entrepreneurs given the various social complications attached with them. Hence the social enterprises
have to deal with the challenge of facing a hostile reaction from financial institutions and governments as
far as funding is concerned. This forces social entrepreneurs to take, what can be, a more difficult path of
approaching venture capitalist and philanthropic organizations.
Social and Cultural Effect: In India, the social and cultural perception of social entrepreneurship
sometimes becomes a challenge for social entrepreneurs in running their business activities. As in the

ISBN: 978-93-5300-292-3 Technical Session - I

134 Problems and Prospects of Social Entrepreneurship

case of Water Health International, the major focus of this social venture was to awaken the people about
various water diseases and how they can be cured, but people were still sceptical about how, and why,
WHI is providing the purified water at such a low cost. This impression shows the lack of knowledge or
foresightedness of the local community in distinguishing a social business from a normal profit‐driven
business.
Comparative disadvantages to business:
Social entrepreneurs mainly deal with the difficult task of improving the welfare of the society and
they are always keen to find affordable solutions to various societal problems. But every activity of social
business carries a cost, which is mostly borne by the owner out of his own pocket or by taking loans from
money lenders. Social entrepreneurs are not necessarily working in a lucrative market; they identify a
problem within society and try to find affordable solutions for them. Once they find the way to earn some
profit after providing the best low cost solution to the needs of the society, more traditional businesses
will enter the market competing with a similar solution and technique, increasing transaction costs and
competition for social entrepreneurs and hampering their future growth.
Lack of Government support: Lack of government support is a major hindrance for social business
development in India. Currently, the government is not providing any kind of assistance for promoting
these social cause ventures. The government’s policies and regulations for social entrepreneurs are very
complex and strict, with no tax incentives or subsidies being provided for a social business, the combination
of which acts as major impediment to the growth of social businesses in India.
Lack of Skilled Manpower:
Social enterprises have to get competent Manpower from a variety of sources; professionals,
volunteers, labourers and community participants. To align the motives of all these groups with the long
term growth of the organization is a challenge for the founders. In order for social enterprises to fulfil their
mission in a holistic manner they must typically employ manpower from the underprivileged sector of the
society, leading to increased training and developmental cost as these people are typically uneducated and
unskilled. The organizations have to attempt to fulfil the aspirations of all these divergent groups and still
come out with the best results.
Social entrepreneurs in India face a variety of challenges and problems in their day to
day operations and while many of them have come a long way in meeting these challenges, there
remains a long journey ahead in terms of satisfying their social mission.
Suggestions
A few workable suggestions could help Indian social entrepreneurs in achieving their objectives:
ŠŠ Social enterprise should use the network approach with other ocial enterprises to avail the
opportunities in the market. It helps them to educate the consumer and set the market standards.
The social enterprises should work together to educate customers about the difference between
their product and those offered (possibly at lower Prices) by other businesses. This would lead
to increased demand for their products by the people who support their cause. This network
approach can also be used in lobbying the government and regulatory agencies to create a business
environment supportive of social enterprising. This lobbying can influence the government to
provide liberal tax policies and investment regulations for the social enterprises.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Problems and Prospects of Social Entrepreneurship 135

ŠŠ Social entrepreneurs should assist higher education institutes in India in developing curriculum
that instils social entrepreneurship in their students and, in doing so, provides social enterprises
with access to good quality managers and promoters.
ŠŠ Majority of the social enterprises are operating mostly in the southern and western parts of India.
This is primarily due to the jurisdictional focus of many of these enterprises and this leads to a
regional imbalance in the growth of social entrepreneurship within the country. These enterprises
should try to expand their operations to act as a mentor for similar organizations in the under‐
serviced areas of India. Balancing the growth of social entrepreneurship in the country would go
a long way in solving the social problems of a large population spread over the width and breadth
of the country.
Conclusion
Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who
recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture
to make social change. Social entrepreneurship is a process aimed at enabling business to develop more
advanced and powerful forms of social responsibility.
The Indian scene is full of possibilities and challenges. The country possesses capable human
resources, and has made good progress in achieving scientific and technological capabilities. The economy
has been witnessing rapid growth since the onset of liberalizations from 1991 onwards. Unfortunately
social and environmental problems of the country are increasing year after year (Christie& Honig, 2006)
which necessitates the extensive application of multidisciplinary approaches and entrepreneurial energy in
the social and environmental sectors.
India is experiencing an increase in social entrepreneurship and attempts by social entrepreneurs to
find affordable solutions to various social problems of society. With changes in technology and increasing
competition, social entrepreneurs have to become more dynamic.
References
yy Austin, J., Stevenson, H., & Wei‐Skillern, J. (2003). Social Entrepreneurship and Commercial Entrepreneurship: Same, different, or
both?
yy Harvard Business Review pp.04‐029. Chakraborty, S.K. (1987),Managerial effectiveness And Quality of Work life: Indian Insights, New
Delhi, Tata McGraw‐Hill Publishing Co. Ltd.pp.169.
yy Christie, M. J., & Honig, B. (2006). Social Entrepreneurship: New Research Findings. Journal of World Business, pp 1‐5, 44.
yy Dees and Anderson (2006), “Framing a Theory of Social Entrepreneurship: Building on Two Schools of Practice and Thought,” in
Research on Social Entrepreneurship: Understanding and Contributing to an Emerging
Field, Association for Research on Non‐profit Organizations and Voluntary Action (ARNOVA), 006.
yy Frumkin, P. (2002). Social Entrepreneurship on Being Nonprofits. Cambridge, Mass.: Harvard University Press pp.129‐162.
yy Gupta, R. (2001) “Creating Indian Entrepreneurs. India Today”, organizations India. “Participatory Research in Asia” (PRIA) (2002),
167‐195.

ISBN: 978-93-5300-292-3 Technical Session - I

 Government Initiatives for Entrepreneurship Development
*N. Rama Krishna,
MBA, Asst. Prof. Department of Management Studies,
Pottisriramulu Chalavadi Mallikharjuna Rao College of Engineering and Technology, Kothapeta,
Vijayawada-520001

Abstract: India today has reached that stage of the demographic transition wherein more than 60 percent of the population
is in the economically active age group of 15-59 years, commonly referred to as the DEMOGRAPHIC DIVIDEND. For India
to tap this dividend it is necessary that the economy is able to generate enough job opportunities to productively absorb this
economically active population. We do keep mentioning of 500 million strong workforce by 2022 but India faces challenges
in reaping this demographic dividend considering that illiteracy levels among the labour force is still high and between 70-80
percent of the labour force have education levels below secondary. Almost 48 percent of the workforce is engaged in agriculture
while contribution of agriculture to GDP is not more than 16 percent. This situation may be attributed to the low level of
education and thereby inability to access decent jobs in the non-farm sector. In terms of status of employment 52 percent of
the workforce is self-employed as own-account workers or helpers, 30 percent as casual workers while only around 18 percent
have regular jobs. This has resulted in more than 90 percent of the workforce engaged in informal jobs and slowing down the
structural transition from farm to the non-farm sector. The policy focus in the labour market has therefore been to create decent
jobs which can give the workforce a reasonable standard of living. While the emphasis has been on wage employment it has
been felt essential to promote self-employment or to be specific entrepreneurship as an entrepreneur would be in a position to
create more jobs.

Introduction:
Entrepreneurship is not new to India. In fact to quote from the Indian Industrial Commission
Report (1916-1918)–”At a time when the West of Europe, the birth place of modern industrial system,
was inhabited by uncivilized tribes, India was famous for the wealth of her rulers and for high artistic skill
of her craftsmen. And even at a much later period, when the merchant adventures from the West made
their first appearance in India, the industrial development of this country was, at any rate, not inferior to
that of the more advanced European nations.”
In fact an earlier version of the current Make in India policy was the Swadeshi movement launched
in 1905 during the pre-Independence era to boycott British made goods and use Indian made goods. The
movement saw the development of the Indian textile industry, the iron & steel industry by the Tatas,
publishing of vernacular newspapers, setting up of vernacular medium educational institutions, financial
institutions etc.
However, post-independence the policy focus of increased public investment in heavy industries
and setting up of PSUs did not provide an ideal environment for entrepreneurship. The main problems
faced by an entrepreneur were lack of mentoring facilities, technology support or easy availability of credit.
Though different Reports on employment highlighted the need for promoting entrepreneurship as means
of self-employment, entrepreneurship did not scale up. To mention a few, in the S.P Gupta “Special
Group Report on Targeting
10 million Employment Opportunities Per Year” (2002) recommended “appropriate programmes
should be launched to increase entrepreneurial capabilities and skill for self- employment.” The Montek
Singh Ahluwalia “Report of the Task Force on Employment Opportunities”, July 2001 also mentions
about developing entrepreneurship ability among the newly self-employed. The Report even recommends
entrepreneurship training for the informal sector. To quote, “A large part of the employment generated
by the economy will be self-employment in the informal sector. These self-employed entrepreneurs need
training of the multi-skill variety, going beyond production skills to include marketing, finance and
Government Initiatives for Entrepreneurship Development 137

accounting and elementary management. Such skills cannot be developed through structured formal
training but requires the guidance of “mentors” in actual business conditions”.
However, entrepreneurship in India has been confined to being own-account workers with one
or more helpers and did not expand in size beyond that. As maybe seen from the Fifth Economic Census
2005, 95 percent of establishments were engaging not more than five workers and they accounted for
almost 64 percent of the employment? If the employment size of a unit is taken as not more than 10
workers then 98.5 percent of the establishments are covered. (Table-1)
Table-1 Distribution of Establishments by size class of Employment
Size by class of
S. No. Item Year
Employment
1 1-5 Establishments 1990 1998 2005
Persons usually working 93.4% 94.0% 95.1%
2 6-9 Establishments 54.5% 58.6% 64.2%
Persons usually working 3.5% 3.3% 3.4%
3 10 & above Establishments 8.4% 8.3% 10.2%
Persons usually working 3.1% 2.8% 1.5%
37.1% 33.1% 25.5%
Source: Table 5.12, Chapter V, Fifth Economic Census 2005-All India Report, GoI
To promote self-employment as a means of job-creation and to promote entrepreneurship for
further job creation, the Micro, Small and Medium Enterprises (MSME) Act, 2006 was enacted to
facilitate the promotion, development and enhancing the competitiveness of micro, small and medium
enterprises. Earlier to that the small scale industries (SSIs) were regulated by two sections of the Industries
(Development & Regulation) Act, 1951 which led to absence of an institutional regulatory and consultative
mechanism to capture and guide the progress of an SSI unit from being a micro unit to a small scale and
eventually to medium scale one. The earlier Act also excluded the fast emerging service sector. But even
after the implementation of the MSME Act, 2006 the high proportion of unregistered MSME units
outside the purview of the Act is a matter of concern.
The government has over time implemented policies for the promotion of the small industries
which included providing concessional credit, training in entrepreneurship development, marketing
assistance etc. But the entrepreneurial growth did not take off in a big way in India as compared to
other countries because of the procedural hassles, stringent labour laws, economic regulations etc that
the establishments had to face. Further with import liberalization and entry of MNCs into India, the
Indian small scale entrepreneurs are not able to face the competition and are finding it difficult to survive.
In this context to quote from the Second National Commission on Labour (2002) “New economic
changes will provide more opportunities and not enough jobs. Therefore, one has to take advantage of the
opportunities. Both in urban and rural areas, there may not be an impressive rise in wage employment but
there will probably be enough scope for self-employment. The emphasis, therefore, has to be not on wage
jobs but on creating self- employed persons or entrepreneurs. The entire system of training and education
will have to give emphasis on the development of entrepreneurship”.
In keeping with this spirit the Ministry of MSME is implementing the entrepreneurship
development and skill up gradation schemes through appropriate training facilities. The Ministry has
set up three national level Entrepreneurship Development Institutes viz; The National Institute for

ISBN: 978-93-5300-292-3 Technical Session - I

138 Government Initiatives for Entrepreneurship Development

Entrepreneurship and Small Business Development (NIESBUD) (1983) at Noida (Uttar Pradesh),
National Institute for Micro, Small and Medium Enterprises (NI-MSME) (1960) at Hyderabad, and
Indian Institute of Entrepreneurship (IIE) (1993) at Guwahati, to inculcate entrepreneurial culture
especially among the first generation entrepreneurs. There is the scheme for Providing Support for
“Entrepreneurial and Managerial Development of SMEs through Incubators” in implementation since
2008. There is the MSME Technology Centers (earlier Tool Room & Technology Development Centers)
which provide high end skill training to the youth. A national award scheme has been initiated by
MSME for outstanding performance in Entrepreneurship, Research and Development, Innovation, Lean
Manufacturing Techniques and Quality Products.
Start-up Revolution
However, a change is being witnessed today, as quoted by Prime Minister Shri. Narendra Modi,
‘The convergence of technology, integration across diverse fields, distributed architecture and people
willing to back an idea, have opened a new world for enterprise.
I see Start-ups, technology and innovation as exciting and effective instruments for India’s
transformation, and for creating jobs for our youth. For start-ups today there are different levels of
financial support that has come to provide the initial seed capital in the form of incubatorsii, angel
fundsiii or venture capital fundsiv followed by private equity and debt in that order. Between January-
September 2015, Angel Funds and VCFs have invested $7.3 billion in early stage Indian Start-ups. India’s
first generation e-commerce and mobile entrepreneurs have become angel investors which is a sign of
maturing of startup ecosystem. However, there is a danger that too many mentors/ angel investors with
little experience may lead to a situation of unsuccessful start- ups.
What is Start-up?
The government has also come a big way in promoting startups. The question therefore what needs
to be answered is what is a start-up? A start-up is a company that is in the first stage of its operations. These
companies are often initially bank rolled by their entrepreneurial founders as they attempt to capitalize
on developing a product or service for which they believe there is a demand. The start-up and SMEs
appear to be of the same size with limited revenues, high cost of operation, job creating but they operate
on entirely different business models. The difference between a start-up and a SME unit is that a startup
is new organization designed to search for a repeatable and scalable business model. A start-up according
to Steve Blank –‘is searching for answers to the product it will sell, the customers it will serve and the
way it will make money from delivering value to its customers’. A SME, according to the U.S. Small
Business Administration (SBA) is an “independently owned and operated, organized for profit, and not
dominant in its field.” SMEs generally sell known products to known customers in known local markets.
These startup needs an appropriate ecosystem to thrive which includes adequate funds for startups to help
them grow; government to create an environment of ease of doing business; ready availability of essential
services like office space, location, supplies telecom connectivity etc.; and mentors to provide strategic
advice.
Latest Policy Initiatives for Start-ups
To simplify the regulatory framework the government introduced the Ease of Doing Business
wherein an MSME unit has to fill in a single one page self-declaration online form called Udyog Aadhaar.
The Apprentices Act, 1961 was amended to enable even the MSME units engage apprentices which
will enable the units to get trained labour as well as in turn supply skilled labour. Under the Apprentice

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Government Initiatives for Entrepreneurship Development 139

Protsahan Yojana, 50 percent of the stipend payable to the apprentices would be reimbursed by the
Government for the first two years which is an incentive for MSME units to take in more apprentices.
To give boost to the Make in India programme, the MSME Ministry has launched the ASPIRE
scheme in March 2015, a Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship.
The objective of the scheme is to set up a network of technology and incubation centers to accelerate
entrepreneurship and also to promote start-ups for innovation and entrepreneurship in agro-industry.
To ease the credit availability requirements of startups the Government had announced the
MUDRA scheme- Micro Units Development & Refinancing Agency, operated by SIDBI for providing
refinance to micro units. This would improve the liquidity of the micro units who right now have to
borrow from NBFCs and moneylenders at high rates of interest.
Atal Innovation Mission (AIM) - This programme operated from NITI Aayog is about an
Innovation Promotion Platform involving academics, entrepreneurs and researchers and draw upon
national and international experiences to foster a culture of innovation, R&D and scientific research in
India. The platform will promote a network of world- class innovation hubs and grand challenges for
India. The overarching purpose of this mission is to promote a culture of entrepreneurship and innovation
in India. The key objectives of the AIM are:
ŠŠ To create an umbrella structure to oversee innovation eco-system of the country;
ŠŠ To provide platform and collaboration opportunities for different stakeholders;
ŠŠ To study and suggest best and novel practices to be adopted by different stakeholders in the
innovation chain;
ŠŠ To provide policy inputs to NITI Aayog and various Government Departments and Organizations.
ŠŠ To create awareness and provide knowledge inputs in creating innovation challenges and funding
mechanism to government; and,
ŠŠ To develop new programmes and policies for fostering innovation in different sectors of economy.
Digital India-Digital India Programme has been launched to provide broadband connectivity
in rural and urban areas. Introduction of digital rural connectivity would give a big boost in developing
traditional rural arts, crafts or other innovative ideas into business models.
Intellectual Property Rights-With the growing number of startups it is essential to protect one’s
products from impersonators. The startups need to go for design patents, trademarks, copyright or trade
secrets protection as the need maybe before marketing their product.
India Aspiration Fund- A Rs. 2000 crore India Aspiration Fund (IAF) was launched by SIDBI
in August 2015 to boost the startups fund- of-funds ecosystem in the country. This fund would invest in
various venture capital funds for meeting the equity requirement of MSME start-ups. A SIDBI Make in
India Loan for Small Enterprises (SMILE) Scheme of Rs.10,000 crore has also been launched to catalyze
tens of thousands of crores of equity investment in start-ups and MSMEs, creating employment for
lakhs of persons, mostly educated youth over the next 4-5 years. The objective of SMILE is to provide
soft loans in the nature of quasi-equity and term loans on relatively soft terms to MSMEs to meet the
required debt-equity ratio norm. The 25 sectors under the ‘Make in India’ programme’ would be the focus
with emphasis on financing smaller enterprises in the MSME sector. There will be concessional terms for
the enterprises promoted by (SC) / (ST) / Persons with Disabilities (PWD) and women. The scheme is
expected to benefit approximately 13,000 enterprises, with employment for nearly 2 lakh persons. These
two schemes are in addition to the Rs.20000 crore MUDRA scheme. Together the three finance schemes

ISBN: 978-93-5300-292-3 Technical Session - I

140 Government Initiatives for Entrepreneurship Development

should boost the startups as well as MSMEs already in the transition phase and create good number of
jobs in the years to come.
Till date the startups have been successful in e-commerce, and other IT based applications of
service sector. The startups in manufacturing sector are yet to take off in a big way. The launch of the
above-mentioned policy initiatives should give a boost to startups in manufacturing as well. As of 16th
November 2015, 806 startups have taken off during the year and the main sources of funding were seed
funding and private equity and the products were mainly IT based applications in the service sector.
In the Global Competitiveness Index (GCI) 2015-16 India has scored 16 points and moved up
from its earlier ranking of 71 to 55 out of a total of 144 countries. Region-wise among the emerging and
developing Asia India ranks sixth after Malaysia (18), China (28), Thailand (32), Indonesia (37) and
Philippines (47). India does have the potential to move ahead of these countries. In the World Bank’s Ease
of Doing Business Ranking 2015 India is placed at 142 place out of a total of 189 economies. But on
the startup front India ranks third position globally with 4200 startups. The new initiatives in promoting
startups would enable India to move up to the top position.
Conclusion:
To conclude, a startup ecosystem has been created through the new policy initiatives which would
not only promote startups particularly in the manufacturing sector but also the micro units would be
able to graduate faster as small and medium units. If this objective is achieved the goal of job- realization
through self-employment would be complete as self-employment is the answer to providing jobs to the
huge proportion of population in the economically active age group. This process would be fast tracked by
the flagship programmes well supported by the Skill India Mission which would facilitate availability of
right skilled manpower as entrepreneurs complains about skill mismatch. Given that startups are emerging
as major job creators, governments both at the Centre and States need to put in place appropriate policy
framework for the start-ups.
References
yy Two Hundred and Forty Fifth Report on Review of the implementation of Micro, Small and Medium
Enterprises Development Act, 2006-Department-Related Parliamentary Standing Committee (2013)
yy Transferred to Ministry of Skill Development & Entrepreneurship vide GoI Order No.9(1)2015-EDI dated
22nd May 2015
yy ibid
yy Entrepreneurship in India, NKC, 2008
yy Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015, San Jose,
California)
yy http://yourstory.com/2015/10/indian-startups-invested/
yy ‘Young Entrepreneurs turn Angels for Younger Startups’, Times of India, June 30, 2014.
yy Investopedia
yy https://www.quora.com/Peter Baskerville
yy Economic Times, 11th June,2015
yy http://www.indiainfoline.com/article/news-sector-banking-financials/sidbi-launches-india-aspiration-fund-and-sidbi-make-in-india-
loan-for-enterprises-scheme 115082000192_1.html
yy Source: http://trak.in/india-startup-funding-investment-2015/

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding
Entrepreneurs
* A Sai Manideep, ** Dr. P Srinivas Reddy
*Research Scholar, Department of Management Studies, Vignan’s Foundation for Science, Technology and Research University,
Vadlamudi, Guntur District, Andhra Pradesh.
**Professor, Department of Management Studies, Vignan’s Foundation for Science, Technology and Research University, Vadlamudi,
Guntur District, Andhra Pradesh.

Abstract: All desire for is to look good and fit and admire ourselves if we are and if others make a compliment
of our attire it would boost our confidence and makes happy. Ones strive to look good and fit drives them to a wellness
center it may be salons/beauty parlor, hair and skin care, cosmetic treatment, spa and fitness/slimming centers. Research
on wellness industry is imperative because the wellness market is expanding with a growth rate about 33% per
year. It is an attractive platform for budding entrepreneurs to concentrate on a low explored market to fulfill their
entrepreneurial notion. The field of entrepreneurship is characterized by a competitive spirit, financial gain, independence
and socioeconomic factors; it would be possible only when future markets are explored by budding entrepreneurs.
This paper speaks to the growth of Indian Beauty & Wellness Industry and scope for entrepreneurship development.
Key words: Entrepreneurship, Health & Wellness, budding entrepreneurs.

Introduction and Industry Overview:

In India, wellness is an idea which has been in vogue since antiquated circumstances. Customary
therapeutic and wellness hones like Ayurveda and yoga have propounded the idea of mental and real
health. The greater part of the antiquated wellness ideas have generally centered around the fundamental
needs of a person inside the need progressive system, specifically an emphasis on wellness, sustenance, and
unwinding.
The evaluated showcase size of the worldwide wellness and health industry is about $1.4 Trillion. It
is a proof that wellness and health industry could require a more noteworthy measure of workforce and an
open door for the millennial age to adapt their entrepreneurial wish. Divisions, for example, assembling,
development, and coordinations require enormous venture and one ought to manage a contemporary
rivalry to keep up their business as usual. In any case, Beauty and wellness industry is consistently thriving
it might due to expanded magnificence and wellness cognizant, urbanization and impact of brand famous
people who we begrudge them.
The worldwide excellence and health industry is developing at a CAGR of 15 % every year (Report:
NSDC and KPMG) in the course of the most recent ten years. The main five development magnificence
and health markets are US, Brazil, China, India, and Indonesia. The ascent in world’s driving medical
issues (stoutness, hypertension, and cardiovascular maladies) add to the interest for wellness related items
and administrations. The rundown of another quickly developing sub - parts incorporate needle therapy,
naturopathy, Ayurveda, reflection, biofeedback, and yoga.
142 An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding Entrepreneurs

Global beauty and wellness Industry

Market size in Billions

1200
1000
1000

800

600 500

400
200
200

0
2002 2007 2012

From the above source it is clearly that the sector’s is prosperous. The market share was about $200
billion in 2002and there is an drastic increase to $1000 billion by 2012 and it is expected to $1.4 trillion
by 2020. A budding entrepreneur could avail this source to explore opportunity in this sector. To establish
a firm to other sectors like manufacturing, construction and logistics could require huge resources in
terms of finance, skilled labor, etc., but to attain expertise over these sector government organizations
like NSIC, MSMC Institutions are extending their services through offering diploma certified courses.
These institutions also give training over entrepreneurial activities, optimization of resources, market
establishment and financial support from banks encouraging budding entrepreneurs.
Indian Beauty and wellness Industry

90000
80000 3713
70000
2856
60000
2197 39744
50000 1690 33120
40000 1300 27600
1000 25056
30000 20880 10419
17400 8540
20000 6251 7000
4200 5124
22080 26494
10000 16704 18400
11600 13920
0
2012 2013 2014 2015 2016 2017

Beauty and Wellness Fitness and slimming

Counter sale of Beauty products Rejuvenation

(Source: KPMG Analysis)

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship
An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding Entrepreneurs 143

From the above source the total industry is classified into four major categories. Now we have
a look at the present statics i.e. is 2017 with 2012. Initially beauty and wellness sector increase of 34%
from 33%, it can be inferred that there was and study and constant growth. So that investment by an
entrepreneur in this category would always have a constant and persistent opportunity. When come to
sale of beauty products by the service provider has shown a consistent growth from 51% to 49% with
an average of 50% growth expected. When come to fitness and slimming category has a constant trend
followed through the years, but when come to Rejuvenation sector has an increase form 3% to 5% to the
FY2012 to FY2017. As a whole it can be determined that the industry is persistently consistent since last
five years and would it could be expected as growth and because of foreign and domestics fashion products
could positively impact the industry.
The beauty and wellness industry in India is growing at a CAGR of 18.6 %( Report: KPMG and
NSCD). The sector is thriving on the increasing section of affluent and middle-class population that has
started considering beauty and wellness as a necessity- when come to demographic factors of the country
47% (census 2011) are young and most of this workforce in private sector and their contribution to
economy is about 50%. According to CSO, personal expenditure has reduced to 4% in FY2016 from 8%
in FY2015, but expenditure on personal products and services was study instead of global crises. Expanded
accentuation on an all encompassing prosperity with individuals’ want to look great and youthful are
different helpers for the business. The restoration fragment is never again seen as a minor extravagance
benefit yet it is presently recognized as a basic instrument to de-stretch.
Created nations like the US, European countries and numerous Asian creating countries like
India, China, and Indonesia are endeavoring their conceivable endeavors to degree their administrations
into wellness, excellence and health industry. The real angles like the impact of beautifying agents,
FMCG organizations through their ad techniques having an effect on customer conduct towards wellness
administrations. Changing pattern and purchaser want towards extravagant way of life would likewise
tend towards benefiting these administrations. Were, advertise is client driven. At whatever point there is
need and wand frames a hole and this hole is a possibility for ones like maturing business visionaries to
enter the market.
The factor that is broadly looked into in connection to business enterprise is inspiration.
McClelland (1961) and Winter (1969) has set up this accomplishment inspiration is a powerful factor for
business enterprise. Indian examinations have likewise settled the way that accomplishment inspiration
adds, as it were, in helping the general population to end up business visionaries (Rao and others 1975).
It has additionally been discovered that exceptionally energetic business people have obtained an attention
to their own qualities and shortcoming, in the meantime they know about encouraging components and
limitations winning in the earth.
Industry Classification:
ŠŠ The sector includes services that can be broadly classified along an evolving continuum as
»» Hygiene services
»» Preventive services
»» Enhancement services
ŠŠ Each of the following sub-segments fall into each of the above segments or are placed at their
intersection.

ISBN: 978-93-5300-292-3 Technical Session - I

144 An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding Entrepreneurs

ŠŠ From a notional perspective, the industry considers the following as distinct subsectors based on
the unique skill requirements across each
ŠŠ Beauty care services, including invasive (Botox) and non-invasive cosmetic treatments including
nail services, pedicure and manicure.
ŠŠ Hair cutting, hair styling, hair colouring and advanced techniques, such as hair weaving and
rebonding.
ŠŠ Physical activity, including gymnasiums and group exercises such as aerobics and zumba.
ŠŠ Slimming and weight loss centers such as body therapy, weight loss and lymphatic drainage
therapies.
ŠŠ Includes therapeutic massages for body rejuvenation and detoxification, anti-ageing treatments
and extended therapies such as acupuncture.
ŠŠ Sale of beauty and cosmetic products at salons and retail outlets (both general and specialized
outlets)
ŠŠ Includes traditional systems of Indian, oriental and western healthcare system such as ayurveda,
yoga, unani, siddha and homeopathy.
Sprouting business people could investigate this market and offer significance to most recent
patterns and shopper fulfillment in conveying this excellence and wellness administrations with most
extreme care and could pick up the market. Fixation on target divided customer and their necessity as a
noteworthy need. Presently, there is the place a business visionary could extend his firm by obtaining new
abilities and innovation selection.
Levers for income development for Entrepreneur
Embracing an adjusted way to deal with scaling up: Franchising has been a typical course to
accomplish quick scale. Notwithstanding, organizations are additionally investigating half and half models
and growing the system of their own outlets with a specific end goal to deal with the difficulties around
the loss of control and brand weakening.
Multi-mark procedure to address differing client portions: Companies are chalking out a multi-mark
methodology so as to target particular client fragments, enter further into existing markets, and at the
same time broaden into more up to date advertises.
Putting resources into building buyer mindfulness and put stock in: Consumer mindfulness and trust
assumes a key part in the development of the wellness items and administrations showcase and in addition
broadening its purchaser base. Players have taken up various activities to teach and enhance purchaser
mindfulness with respect to the advantages of wellness items and benefits, and are setting up systems for
star dynamic shopper associate and criticism.
Training Infrastructure from Government to boost Entrepreneurship in these sectors:
Modular Employable Skills (MES) Schemes:
ŠŠ Offered under the Skill Development Initiative Scheme (SDIS)
ŠŠ The plan has a goal to enhance aptitude improvement for early school leavers and existing laborers,
IT/ITC graduates, and so on, particularly in the chaotic segment, in close meeting with the
business, smaller scale ventures in the sloppy area, state governments, specialists and the scholarly
world

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding Entrepreneurs 145

ŠŠ Further, the ability levels of people officially utilized can likewise be tried and guaranteed under
this plan, i.e., accreditation of earlier/experiential learning
ŠŠ It has given a pathway to various passage and ways out, and additionally changing expertise
advancement from long haul aptitude obtaining periods (1– 2 years) to here and now (around
three months).
Star Schemes:
ŠŠ The Beauty and wellness segment aptitude chamber is the national body organization for the
advancement and development of the excellence and health industry
ŠŠ To advance ability improvement in the division, the Beauty and wellness Sector Skill Council of
India take an interest in the national accreditation and reward plot the STAR (Standard Training
Assessment and Reward) Scheme and means to connect with a million adolescents.
ŠŠ The program rewards workers experiencing preparing with a normal reward of INR10,000 per
competitor as motivating force under the National Skill Certification and Monetary Reward
Scheme (NSCMRS) dependent upon the hopeful clearing the evaluation with least 90 percent
participation
Several leading organized players have established training capacities, primarily to meet capative
requirements:
ŠŠ VLCC Institute: Established in 2001, VLCC has 51 organizations offering courses in 39 urban
communities alongside open doors for temporary positions; VLCC is subsidiary to IGNOU
to offer professional preparing in nourishment and excellence in India and is associated with
Doncaster College, UK; Cengage Learning, US, and City and Guilds.
ŠŠ L’oreal Academy: L’Oréal Professional International Hairdressing Academy was propelled in
2006 to draw in ability into the calling of hairdressing. The courses offered at the foundation are in
hairdressing and prepare the coach; they offer prepare the-mentor courses and permit accomplice
establishments to give coach
ŠŠ Anand spa organization, Hyderabad: It was built up in March 2008 by India’s head spa
administrator, IHHR Hospitality Pvt. Ltd . The courses offered at the Institute are International
body medications, Ayurveda and Yoga. It offers three understudy admissions a year, with CIBTAC
and ITEC accreditation that keeps going 6 days
ŠŠ Enrich Academy: Enrich foundation was propelled in 2009. Right now, it has a nearness in more
than five areas crosswise over Mumbai, Pune, and Ahmedabad. Improve institute offers more than
30 courses in hair, excellence and compensate for people at all levels. Accreditations for the courses
are from India Skills City and Guild and CIBTAC
ŠŠ Matrix: Matrix was set up with around 36 Educational studios; the establishment offers C.R.A.F.T
instructive projects and in-salon ace class for existing experts searching for greater innovativeness
Matrix conducts instructive visits exhibiting hair form and showings
ŠŠ Jawed Habib Academy: Jawed Habib Academy built up around 45 salon institutes in India. It
offers courses in an assortment of courses in hair mind and furthermore courses in excellence and
skin.
ŠŠ Talwalker Training Academy: Established in 2007, Talwalkers offers courses, positions, and
open doors for the establishment. It empowers preparing for different types of activity, including
Personal preparing Zumba, Nutrition, Nuform, and so on.

ISBN: 978-93-5300-292-3 Technical Session - I

146 An Outlook of Indian Beauty & Wellness Industry: A Future Scope for Budding Entrepreneurs

ŠŠ Blossoms Kochhar Training Institutions: Operates a chain of preparing foundations under the
brand name Blossom Kochhar College of Creative Arts and Design. BKCCAD possesses Pivot
Point India – A Hair and Beauty Academy, Style Inc. – a preparing institute, MUD – Make-up
Designory and Blossom Kochhar Esthetics and Spa Academy – giving all-encompassing way to
deal with spa and wellness instruction
Some of the Successful Entrepreneurs in the Industry:
ŠŠ Ms Carolin Praba Reddy is the first south indian certified Trichologist from the international
associaltion of Trichologists(IAT), Australia. She started praba’s Vcare hair clinic in 2001 in
Chennai to provide complete hair care solutions. With strong network of over 100 professionals
in clinics in Andhra Pradesh and Tamilnadu.
ŠŠ Vandana Luthra: Founder of VLCC. In 1989, Vandana Luthra framed a gathering of
Transformation focus in New Delhi. The goal was to offer weight reduction arrangements and
a threpeutic approach for magnificence, wellness and wellness. It is among the biggest chains
of thinning and magnificence focuses crosswise over Asia. Spreaded its operations in India, Sri
Lanka, Nepal, UAE, Saudi Arabia, Kenya and so forth.
ŠŠ Anoo’s: Anoo’s is a cosmetics company established in 1982, they have 9 branches in south india.
Anoo’s is the brain child of four sisters ( Ms Anuradha, Ms Annapurna, Ms Anupama, Ms
Anirudha).
ŠŠ Vijay Krishna D: He is the founder of Kolors Health care institute is an organization of health
and wellness specialist has begun with just 11 employees they have grown to a leading health
service provider, with branches across major metro cities in south India.
Conclusion:
While there are just a modest bunch of players today with incomes of 0.5-1 billion INR, new
venture openings are relied upon to develop as littler players try to develop in size and scale. The wellness
segment has a set number of players having a sizeable extent of operations (i.e. incomes of more than 0.5-
1 billion INR). This can be credited to the moderately late passage of sorted out players ‘into a division,
which was to a great extent described by little scale operations and single-store outlets. Be that as it
may, passage of numerous corporate players in this section is relied upon to produce greater speculation
openings.
Reference:
yy Acs, Z. J. & Armington, C. (2004). Employment growth and entrepreneurial activity in cities. Regional Studies, 38(8), 911-927.
yy Ahl, H. (2006). Why research on women entrepreneurs needs new directions? Entrepreneurship Theory and Practice, 30(5), 595-621.
yy Aidis, R., Welter, F., Smallbone, D. & Isakova, N. (2007). Female entrepreneurship in transition economies: the case of Lithuania and
Ukraine. Feminist Economics, 13(2), 157-183.
yy APEC (1999). Women entrepreneurs in SMEs in APEC region. Taejon-city: Asia-Pacific Economic Cooperation, viewed 25 April 2005,
<http://www.apec.org/apec/publications/all_publications/ small__medium_enterprises.html>
yy Audretsch, D. B. (2003). Entrepreneurship: a survey of the literature. Enterprise paper no: 14, European Commission, viewed 25
August 2008, http://ec.europa.eu/enterprise/library/enterprisepapers/ pdf/enterprise_paper_14_2003.pdf>
yy www.ficci.in/sector/83/project_docs/
yy www.makeinindia.com/sector.wellness
yy www.livemint.com/homepage/wellness
yy WWW.KPMG.in/wellnessprofile

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

 Entrepreneurship Through Online Grocery Stores
*Dr. A. Kanakadurga, **Syamala Devi Challa,
* Assistant Professor, Dept of Commerce & Business Administration,
** Research Scholar, Acharya Nagarjuna University, Guntur
Abstract : “Entrepreneurship” is the dream of many people. It gives the power to create our own money. It furnishes the
opportunity to use our knowledge, to give employment and helps to grow in the society. But due to lack of capital and courage
most of the people are tapping in the float of jobs. In this aspect, social media is the best opportunity to reach the masses. Today
internet connects more than two billion people worldwide and India has about 120 million people are in online shows as a
salient example of the Internet’s growth. The Entrepreneurship through online Grocery Store is one of the leading businesses. The
long working hours of both the partners and the huge capital to start a large store are leading so many people to start Online
Grocery Store. This article gives an overview about how to start an online grocery store, its merits, challenges and its future.
Key words: Entrepreneurship, online grocery store, business model

1. India-A prime growth driver for online grocery retailing

Online grocer means a grocery store that permits individuals and businesses to purchase groceries
and grocery products online. Usually there are delivery charges for the services. Online grocery delivery
services are available throughout Asia, Europe and North America, mostly in urban areas. The online
grocery ordering is done through e-commerce websites or mobile apps.
One of the basic needs of everyone’s life is groceries. Every human being needs a healthy and proper
food. Until a decade back the grocery needs in India was full filled by local kirana stores, supermarkets or
hyper markets. The other needs like restaurant services, milk, medicines etc are served by local merchants
only. As India has started living in the internet based world, everything is available in online including
groceries, medicines, food from restaurant and even saloon services would be done at home. The sales of
online grocery market in India are going to reach $1 billion in 2017. The online annual transactions of
grocery players have increased from 35 million in 2016 to 46 million in 2017. The average order value
has grown by 20% from 2016 to 2017. The top online grocery stores in India are BigBasket, Grofers,
Zopnow, LocalBanya, Jungoo, Peppertap etc.
In Indian retail industry, 92% of the market is unorganized, whereas 8-10% is organized (i.e.
around $60 billion) of total industry. From this analysis it is evident that there is a huge potential
for organized retail and it is also proved from the growth rate in last 5 years. According to the Retail
Consultancy Technopak, in grocery sector, India is currently in sixth largest in the world and is expected
to rise from $383 billion to $1 trillion by 2020.
2. How to start an online grocery store?
Starting a new online grocery store is definitely an exigent task. More challenges arise due to the
perishable nature of grocery products comparing to other ecommerce stores for home décor, electronics,
apparels and other such products. The critical aspects to start an online grocery store are:
ŠŠ Should know the basics like an online market place to sell groceries and deliver them at the
doorsteps of customers.
ŠŠ Should make tie-ups with local grocery wholesalers/producers
ŠŠ Make the groceries to reach on time to the customers with the help of a strong delivery network
148 Entrepreneurship Through Online Grocery Stores

2.1 Possible Revenue Streams

Commission-based revenue: This model is straight forward and the retailer can directly implement
different commissions on different products in order to maximize profit margins.
Subscription-based revenue: This model provides some discounts and gives up some charges or better
service to customers over a period of time.
Service Charges: The online grocers who operate their business independently can make money from the
service charge which is the most feasible revenue model.
Secondary income flows : Revenue can be generated by using the secondary income ways such as doing
promotion for merchants or grocery sellers, publishing sponsored content by starting a blog or can sell
user data to market research forums. Entrepreneur has to select the right revenue model and stream
depending on the target market, size of the business operating, budget and age of the business.
2.2 Significant web site features for online grocery store
Web site is the main feature of online grocery store through which we interact with the buyers,
connect them and convert them into loyal customers. For attaining the target, the website should be easy
to use, quick to load, mobile friendly and should also have the following features.
ŠŠ Many times customers have to purchase same grocery items every month. If the website gives the
option of saving order to profile, it will become a way to the repeat purchase.
ŠŠ Different family members have different demands so it is always better to share the shopping cart
with other register user.
ŠŠ Website should have the feature of receive and process of discount coupons.
ŠŠ Try to attract friends of the customers by offering some discount to the referrals.
3. Business Models of Online Grocery Store
Online grocery retailers are currently using three different models in the country. They are -
Inventory model, Hyper-local model and Mixed model (mix of inventory and hyper-local).
Inventory Model : In inventory model, the firm purchases the groceries from local farmers, FMCG
companies, big distributors etc. This model needs a huge financial investment. Due to the requirement
o huge investment, ZopNow and LocalBanya shifted from inventory model to hypper-local model.
BigBasket (one of the leading grocery retailer) adopted this inventory model. It manages its own inventory
on every demand. The company promotes itself heavily and it hired Shahrukh Khan ( Famous Bollywood
Celebrity) to endorse its brand.
Hyper-Local Model: In hyper-local model, the firm does not store any inventory but when the demand
comes it procures the groceries directly from local kirana stores or hyper markets and collects them in one
place and delivers it to the consumer. Though it is less capital intensive, it has more operational challenges
compared to inventory based model. Companies such as ZopNow.com, Naturebasket.com, Grofers.com,
Grocer.com and Liscous.com are following this hyper-local model.
Mixed Model : In mixed model companies use a bit of both of the models. Companies like LocalBanya.
com employed this model. These companies generally maintain smaller inventory in size as compared to
companies that have adopted inventory based model.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurship Through Online Grocery Stores 149

3.1 Merits and Challenges of Business Models

Business Model Merits Challenges
Inventory Model Orders can be fulfilled accurately because Need large warehouses to store
customers know which products to order inventory
Start-ups with this model can have the advantage Risk of huge wastage due to
of higher margins due to economies of scale perishability of product
Having own inventory, requires least manpower
and gives the benefit of starting private labels
Hyper-Local Model As purchase of product is purely demand driven Unable to satisfy huge orders
no cost of storage and wastage of inventory Inventory mismatch between store
The retailer can provide any brand or product and application
of customer’s choice as long as it has the sources
of supply
Mixed Model The retailer can provide any brand or product Procurement management is more
of customer’s choice as long as it has the sources costly as it has to manage both
of supply inventory and delivery staff
Cost of inventory management is less as it stores
small inventory
4. Top retailers in online grocery stores

Source: your story-online-grocery –table (yourstory.com)

Interpretation:
Big Basket is the top player started in 2011 and followed inventory model with its own warehouses.
It is operating in 28 cities. The retailers Grofers, Pepertap, Jungoo and Zapnow are following Hyperlocal
model and operating in 27, 24, 40 and 15 cities respectively. The retailer Localbanya is following mix of
both the models and operating in 5 cities currently.
5. Merits of shopping in online grocery store
ŠŠ We can have more variety of products or brands comparing to the local kirana stores.
ŠŠ We can do shopping sitting at home and the online stores also promise timely delivery.
ŠŠ It is more convenient to order by using mobile apps or websites, as choose the desired product,
place an order, choose a time slot and done.
ŠŠ Shopping through online saves our time and energy.
6. Challenges in operating online grocery store
The major challenge associated with the online grocery store is perishable nature of products, its
delivery, low profit margins and assurance of quality. For other products wrong delivery, delays and returns
is not a problem, but for online groceries it is an impossible situation. To combat these challenges there
are certain steps to follow, like
ŠŠ Implement Just-In-Time (JIT) inventory system which automates the things and reduce storage
and inventory costs.
ŠŠ To reach the customer expectations partner with a reliable delivery service provider.
ŠŠ Fragment the delivery network into hyper-local model to manage them to reach on time.

ISBN: 978-93-5300-292-3 Technical Session - I

150 Entrepreneurship Through Online Grocery Stores

ŠŠ Buyers shop online not only for convenience but also expect lower prices than offline. To overcome
this problem add more non-pershiabble products such as packaged foods, beauty care product etc
whose storage and delivery costs are also less.
ŠŠ Should have online and offline presence to give better experience to the customers.
7. Future of online grocery store
In tier 1 cities like Bangalore, Mumbai, Chennai, Hyderabad and Delhi the concept of online
grocery store is continuous to be really popular. Some of the major players in this segment have been-Big
Basket, Grofers, Zapnow etc. Among the players, Big Basker is the market leader with its presence in all
major cities. According to the survey conducted by a retail consultancy, Technopark, in all top cities of
India, online grocery market is growing rapidly at a rate of 25-30% every year. As long as the technology
is growing and people are searching for convenience and better prices, definitely there should be a bright
future for online grocery stores.
8. Conclusion
Groceries are basic human needs and surely we need to purchase them for our survival. Due to
convenience of shopping and for getting better prices people are increasingly depend on online shopping.
Even though, it has some challenges but the online grocery business idea fits absolutely in the current
trends. Entrepreneurs who are planning to enter this sector are to be aware of these challenges and should
know how to select the right technology, business model and trend and tactics to survive and succeed.

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Entrepreneurship Through Online Grocery Stores 151

References
yy https://en.wikipedia.org/wiki/Online_grocer
yy https://www.entrepreneur.com/businessideas/online-grocery-store
yy Indian Express, All your needs Zip’ed’ in, 2015, http://www.newindianexpress.com/cities/hyderabad/All-your-
needsZip%E2%80%99ed%E2%80%99.in/2015/01/30/article2643534.ece
yy Grocery Wars, Taslima Khan, Goutam Das, Nevin John, 2015
yy https://www.entrepreneur.com/article/278382

ISBN: 978-93-5300-292-3 Technical Session - I

 Ethical Entrepreneurs - Organizational Escalation in India
*Dr. T. Lokeswara Rao, **D. Poornima Devi
*Associate Professor & **Assistant Professor, Department of Management Studies
Sri Vatsavai Krishnam Raju College of Engineering & Technology. Bhimavaram,W.G.Dt.
Abstract: This paper aims to develop a conceptual framework that examines the Ethical Entrepreneurs –
Organizational Escalation in India. Entrepreneurship practitioners now face more ethical issues every day of their
working lives than ever. In addition, factors that influence of unethical behaviors are explored. It is therefore,
recommended that entrepreneurial organizations should endeavor to go for training on ethical rudiments irrespective of
the circumstances that led them to start business of their own. Majority of entrepreneurs are following unethical practices
in their organizations. Government should take serious steps for avoiding the unethical practices for public safety.
Key words: Ethics, Entrepreneurs, Ethical Consciousness, Govt., Unethical Practices.

Introduction
Earlier belief that entrepreneurs are a special creed and are born with special traits, entrepreneurship
can be cultivated through proper training and financial support. An entrepreneur is a channel who can
mobilize different resources and put them to effective use.
Interest in entrepreneurship as a phenomenon rests in the perceived contributions entrepreneurs
make to public policy goals such as economic growth, increased productivity, job creation, technological
innovation, deregulation and privatization, and structural adjustments or realignments (Gibb 1996; Shane
1996).
Entrepreneurship practitioners in organizations currently face more ethical issues than ever.
Whether they are engaged in planning, organizing, motivating, communicating, delegating or some other
management role, they face the matter of morality; right and wrong, fairness and unfairness, and justice
or injustice which creeps into their decisions, actions or behaviors. Virtually, issues of ethics always arise
in all the decision in contemporary organizational or business setting (Jamnik, 2011).
This study tries to look at the ethics and entrepreneurial growth of an organization in India. Ethics
and social responsibility are very important values in entrepreneurship; this is, particularly, essential in
decision making process. Ethical conscience guides entrepreneurs to make responsible, trustworthy and
profitable entrepreneurship outcomes. Entrepreneurs are trying to implement ethical decision making
approach in all business decisions.
Nowadays, entrepreneurship is considered as a growth and development force of organizations
and societies. An entrepreneur is a channel who can mobilize different resources and put them to effective
use.
Role of ethics in Entrepreneurship
Ethics have a huge role to play in business as they give a guideline as to which business practices
are socially and morally acceptable and which are not. In cases where there are no laid down rules as to the
right and wrong ways of doing business, Ethics fill in the gap and give the much needed direction.
It is through awareness of ethics that entrepreneurs desist from engaging in business practices that
lead to loss of human life and human rights, compromise the environment or bring about gain at the
unfair expense of other businesses, employees, consumers, etc, Sound business ethics benefit to consumer
as they strive to direct businesses to be open and honest to their customers about the product or service
that they offer.
Ethical Entrepreneurs - Organizational Escalation in India 153

Right versus right

Business ethics is not simply a philosophical concept – it is concerned with decisions. It is obviously
concerned with right and wrong. This is usually relatively easy to sort out. We know it is wrong to steal or
to kill. More importantly, business ethics seeks answers to real life problems which often involve conflicts
of “right versus right” and clashes of moral principles.
Considering the fact that entrepreneurial organization faces many challenges in upholding ethical
management practices, practitioners and managers are expected to embrace options such as accountability
and responsibility, revitalizing the culture of excellence, encouraging the establishment of ethical
organization, orientation and a host of others as good measures to forestall standard practices in India
Rule Breaking
Entrepreneurs are often characterized by traits such as innovation, independence, and high risk
taking. Invariably, a flair for breaking rules seems to be de rigueur to be innovative and successful in a
venture. Rule-breaking can pay dividends in contrast, the demonstration of independence that underlies
modest rule breaking may help individuals develop a habit of thinking “out of the box” and behave in
ways that are more innovative to solve problems. Entrepreneurs who frequently break rules might perceive
less danger in a risky decision-making situation with regard to ethical issues.
However, breaking rules does not necessarily have to be completely negative. Positive forms include
challenging established standards and practices, and bypassing obsolete norms to improve efficiency.
Unfair Trade Practices
Any company that participates in unfair trade, including but not limited to coercing partners,
suppliers, or distributors into signing exclusivity agreements, forcing customers or clients to use unwanted
company products or services, or underselling in the market in an attempt to starve out weaker competition,
shall be guilty of anticompetitive practices.
Rise of unethical practices in business
It is observed that non-ethical behavior occurs at all levels in business. Most cases, fortunately,
do not have the magnitude of the scandals seen in the press, but they exist in a range of forms. Somewhat
unfair attitudes are multiplying rapidly in business, especially when times are difficult. A danger is that
people do not even realize their behaviour is inappropriate. The fading away of norms has perfidious
effects. Some managers even believe that certain ‘dirty tricks’ are good management practices: delaying
payment to suppliers to improve the cash flow is seen as efficient, even if a different agreement was made.
A breed apart
Entrepreneurs have long been recognized as being “a breed apart,” in that some of their attitudes
and motivations are thought to differ from those of the population at large. Successful entrepreneurs have
a high propensity to make decisions on their own, to be action-oriented, to assume risk, and to persevere
in the face of uncertainty and adversity. In a word, they tend to exhibit a high degree of individualism.
Whistle-blowers
Employees who make allegations of illegality or indiscretion against a company are protected by
law and must not be harassed or made to suffer economically or psychologically for their actions.

ISBN: 978-93-5300-292-3 Technical Session - I

154 Ethical Entrepreneurs - Organizational Escalation in India

Ethical people make unethical choice

Most companies have ethics and compliance policies that get reviewed and signed annually by all
employees. “Employees are charged with conducting their business affairs in accordance with the highest
ethical standards,” reads one such example. “Moral as well as legal obligations will be fulfilled in a manner
which will reflect pride on the Company’s name.” Of course, that policy comes directly from Enron.
Clearly it takes more than a compliance policy or Values Statement to sustain a truly ethical workplace.
Corporate ethical failures have become painfully common, and they aren’t cheap. In the last decade,
billions of dollars have been paid in fines by companies charged with ethical breaches.
Entrepreneurship Development
Entrepreneurship Development is one of the key elements for promotion of micro and small
enterprises, particularly, the first generation entrepreneurs. Entrepreneurship and resultant creation of
employment and wealth is a major mean for inclusive development. Hence, entrepreneurship development
has been one of the priorities in countries, the world over. Entrepreneurship Development Programmes
(EDPs) are conducted through MSME-DIs, with focus on entrepreneurial development coupled with 4
Specific skills relating to trades like electronics, electrical, food processing, etc, which enables the trainees
to start their own ventures. The programmes covered include the following:
1. Industrial Motivation Campaigns (IMCs)
2. Entrepreneurship Development Programmes (EDPs)
3. Entrepreneurship Skill Development Programme (ESDPs)
4. Management Development Programmes (MDPs)
Supportive Government Policies
As government is in the lead of the establishment, sponsorship and administration of most support
programmes especially in the developing countries, a proclamation from the government as it relates to
entrepreneurship will go a long way to ensuring the sustainability and positive entrepreneurial practice.
Thus, it will bring economic development through SME development, job creation as well as wealth
creation.
Conclusion
Earlier belief that entrepreneurs are a special creed and are born with special traits, entrepreneurship
can be cultivated through proper training and financial support. Entrepreneurship practitioners in
organizations currently face more ethical issues. Business ethics seeks answers to real life problems which
often involve conflicts of “right versus right”. Entrepreneurs who frequently break rules might perceive
less danger in a risky decision-making situation with regard to ethical issues. It is observed that non-
ethical behavior occurs at all levels in business. Entrepreneurship Development is one of the key elements
for promotion enterprises, particularly, the first generation entrepreneurs. Majority of entrepreneurs are
following unethical practices in their organizations. Government should take serious steps for avoiding the
unethical practices for public safety.
References
yy Dr.T.Lokeswara Rao (2011).Viable development in India, Role and performance of MSME, National Conference on Issues and
Opportunities in producers Co-operatives organized by adikavi nannayya University, Rajahmundry ISBN – 978-93-5156-307-5.
yy Alessandra, A. and O’Connor M.J. (1996). The Platinum Rule; Discover the four Basic Business Personalities and how they can lead
you to Success. New York: Warner book. Andre, C. and Valesquez, M. (1990).

Technical Session - I UGC Sponsored National Seminar on Economy & Entrepreneurship

Ethical Entrepreneurs - Organizational Escalation in India 155

yy Babalola, S.S. (2005). Positive Leadership: Antidote of Fraud to Fraudulent Practice in Corporate Organizations. Quoted in Adebayo
Olukoshi, et al. (eds.) Beyond the State: India’s Search for Positive Leadership. Ibadan: University of lbadan Press.
yy Botes, A. (2000). A Comparison between the Ethics of Justice and the Ethics of Care. Journal of Advanced Nursing, 32, 5, 107-1075.
yy Burke, F (2005). Social Ethics. Theological Studies, 66, 137-158.
yy Kersey, C. (1998), Unstoppable: 45 Powerful stories of perseverance and Triumph from people, just like you. Naperville, Illinois:
Sourcebooks Inc. Landrum, N.E.; Howell, J.P.; and Paris, L. (2000). Leadership for Strategic Change. Leadership and Organization
Development Journal, 21, 150-56. 20
yy Wikipedia, (2007) “Business Ethics.” Free Encyclopedia. scu.edu/ethics/practicing/focusareas/business/ethics-human-resources.html
accessed on 21/1/2017.

ISBN: 978-93-5300-292-3 Technical Session - I

 Role of Young Entrepreneurs
*Anilambica Kata, **N. Madhuri, ***Sk. Basheerunnisa
*Asst.prof, Aadi Kavi Nannaya University,
** MBA, II Year, AU, ***MBA, II Year, AU
Abstract: Entrepreneurship gives an opportunity to young for their personal and the professional escalation,
and in the process, creating self employment as well as for others. Encouraging young entrepreneurs plays a vital part in
harnessing their enthusiasm, energy and ambition for the overall economic development. It is generally accepted that
entrepreneurs “create jobs, increase innovation, raise competition and are responsive to changing economic opportunities
and trends. Young entrepreneurs can also act as role models for their peers and, encourage others to follow their example.
Young Entrepreneurs are no doubt, are the catalysts of change and innovation. Entrepreneurship stems from the need of
fulfilling a gap that exists in the market and this sets the entire process of development in motion. The entrepreneurial growth
in our country has triggered a host of economic benefits, together with new businesses, new jobs and new products and services.
The present monograph stretches on the role of government in encouraging and understanding the need and necessities of
the young and enthusiastic entrepreneurs who acts as the building block for sustainable development of the economy.
There by providing a chance not only to get educated but also to strengthen the entrepreneurial ecosystem in the country.
Key words: Entrepreneurship, Government, Entrepreneurial skills, , innovation, Economic Development.

Introduction
Entrepreneurs are frequently thought of as national assets to be cultivated, motivated and
remunerated to the greatest possible extent. Entrepreneurs can change the way we live and work. If
successful, their innovations may improve our standard of living. In short, in addition to creating wealth
from their entrepreneurial ventures, they also create jobs and the conditions for a prosperous society.
Many young fearless entrepreneurs have set the path for a wave of entrepreneurship in the country
and this entrepreneurial spirit has resulted in not just innovation but also in entrepreneurship being
recognized as the driving force of the market. Innovation is crucial for a thriving economy and especially
in today’s increasingly competitive world. In India, entrepreneurship is accelerating innovative areas like
Education, IT, Health Care etc and generating solutions to many such problem areas. India has witnessed
several innovative ideas and businesses driven by start-ups thus leading to entrepreneurship emerging as a
valuable input to the economic growth of the country.
Economic slowdown is one of the reasons that have led to a downturn in employment opportunities
in the country. Unemployment amongst the youth is on the rise and in this regard entrepreneurship is
playing a key role in creating jobs. An entrepreneur is not just creating self employment but also building
a structure for small to large scale employment. As these enterprises grow, the employment opportunities
increase. In India, many start-ups that started out as home based ventures are today employers to hundreds
of individuals. A company/entrepreneur with an innovative-idea has the power to build employment and
in turn stimulate the economy.
In the coming years, developing countries must rebalance their economies towards greater
domestic consumption, import demand and higher value business activity and hence, entrepreneurship is
vital to the future of developing countries.
How to Encourage Them
ŠŠ In order to engage young people to choose entrepreneurship as a safe career choice, the perception
of entrepreneurs in the media is very important especially in the digital media. Media should
display high-profile programs showcasing entrepreneur’s success stories more frequently to
motivate these youngsters as they are the driving force for any nation to grow. We need flexible
Role of Young Entrepreneurs 157

policy environments and funding to stimulate and build the framework of an entrepreneurial
ecosystem and more importantly, a ‘culture’ of interaction and collaboration.
ŠŠ Government can play a major role in bringing together stakeholders to create an ecosystem which
gives boost to entrepreneurship at the national, regional and local levels.
As per reports shared by Accenture, Young entrepreneurs are the driving force behind job creation
in the G20 countries like India, Australia, China, Indonesia, Japan, Saudi Arabia, United Kingdom, and
United States amongst others. Indeed, new Accenture research concludes that 10 million more youth jobs
could be created in G20 countries if existing barriers to entrepreneurship were lifted.
‘Open Innovation’, the term coined by Henry Chesbrough in 2003 which means as technology
elaborates and develops, companies began involving more parties as part of their innovation efforts and
hence, because of technology the whole world is connected. Bridge makers play a key role in today’s open
innovation ecosystem. They help entrepreneurs to convert their idea from concept to reality which brings
them profitability. Large companies and Business incubators are the two types of bridge makers which
help entrepreneurs in the above process.
In a broader sense, innovation is important to the advancement of society around the world. New
and innovative products can increase the standard of living and provide people with opportunities to
improve their lives If you can’t compete on price, you’ll need innovative products and ideas to make your
business stand out from the crowd
How They can Drive Economic Development
1. Investing in products and services people need.
Entrepreneurs create new businesses in response to unmet needs and demands in the market.
That is, there is an opportunity to provide a product or service that is not currently in existence, or
otherwise available.
2. Providing employment opportunities.
New businesses need to hire employees. They create jobs and these economic opportunities uplift
and support communities through increasing the quality of life and overall standard of living.
3. Commerce and regional economic integration
Technology has made it possible for small, young entrepreneur-led businesses to expand into
regional and global markets. When new businesses export goods and services to nearby regions, these
enterprises contribute directly to a region’s productivity and earnings.
4. New technologies promote efficiency.
The ability to turn ideas into new products and services that people need is the fount of prosperity
for any developed country. Economic growth, generally speaking, is driven by new technologies and their
creative applications.
5. Addressing environmental challenges.
Innovation is crucial when it comes to addressing the enormous environmental challenges we face
today: combating climate change, lowering global greenhouse gas emissions, and preserving biodiversity
in the environment.

ISBN: 978-93-5300-292-3 Technical Session - II

158 Role of Young Entrepreneurs

6. Innovation happens where there is competition.

In essence, there is a positive feedback loop among innovation, entrepreneurship, and economic
development. New and growing businesses represent the principal sources of job creation and innovative
activity in an economy, two factors that generally result in the rising standards of living for all.
Following are some of the Measures Undertaken by the Present Government towards Boosting the Entre-
preneurship in India and Especially the Start-Ups

● Mudra Bank
Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public sector
financial institution in India. It provides loans at low rates to micro-finance institutions and non-banking
financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra
Modi on 8 April 2015.
● Ministry of Skill Development and Entrepreneurship
It is first time that MoS (Minister of State) has been given the responsibility of developing
entrepreneurship in the country, though this task has been undertaken previously by multiple departments
and agencies. UPA government witnessed entrepreneurship skill development with the departments of
MSME (Ministry of Micro, Small & Medium Enterprises), NDA is doing under the scope of National
Skill Development Agency.
● District level Incubation and Accelerator Programme
“District level Incubation and Accelerator Programme” across the nation will be a good start to
generate new ideas and promote entrepreneurship with all the necessary support. Though, it is a positive
program, but incubators are not a uniform beast. Several ventures are provided services through different
kind of incubators. Hence, a broad and nationally-accepted classification is needed to comprehend the
unique demands of resources from each set of incubators, to tackle difficulties they encounter, and their
paths for success
● SETU
The government is building up an approach to be known as SETU (Self-Employment and
Talent Utilization) which will strengthen all prospects of startups, and other self-employment initiatives,
especially in technology-driven areas. By the time a great idea gets approval and the funds arrive, the
people behind the ideas move on to accept high-package jobs in multinational companies, now this big
boost from the government will help the budding entrepreneurs in making big.
● AIM Platform: ATAL Innovation Mission (AIM)
Government has also established the AIM Platform or ATAL Innovation Mission . AIM is
established within National Institution for Transforming India (NITI) “to provide innovation promotion
platform involving academicians, and drawing upon national and international experiences to foster a
culture of innovation, research and development”.
● eBiz Portal for Starting a Business Easy
Government has put forward the creation of “an expert committee to examine the possibility and
prepare draft legislation where the need for multiple prior permissions can be replaced by a pre-existing
regulatory mechanism. This will facilitate India becoming an investment destination” by facilitating the
regulatory mechanisms. Further, the 2015 Budget also talks about strengthening the EBiz Portal to make
starting a business easy in India.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Young Entrepreneurs 159

● Formation of eBiz portal

The first Government to Business (G2B) portal launched by the current NDA government is
owned by DIPP under Ministry of Commerce and Industry integrates 14 regulatory permissions at a
single place and has announced various labour reforms to boost job creation and entrepreneurship. The
step by government is a part of facilitating the ease of doing business in India.
Problems Faced by Them
Although the potential rewards are great, starting a new business at any age is fraught with risk.
For younger people, however, the challenges are multiplied. Lack of experience, inadequate financial
resources, and a lack of self-confidence all contribute in one way or another to make it tougher for a
young entrepreneur than an older counterpart.
As a result, many young entrepreneurs fail to make the grade. But those that do succeed are those
who face the obstacles they encounter with determination and resolve. They know that their greatest
allies are the confidence to know that they will succeed against all odds, and the willingness to learn from
their mistakes. Here’s a look at some of the challenges young entrepreneurs face and how they can work
to overcome them.
1. Hiring staff
Rules need to be set up involving such aspects as working hours, vacation time, overtime pay and
work output. Salaries need to be negotiated, complaints against workers lodged, and people might even
need to be fired or laid off. That’s not even to speak of staff fitting the company culture or of employees
working together as a team.
Young entrepreneurs should make this process a little less onerous by being careful to hire people
who will not only have the right skills for the job, but will also fit in well with the company culture.
Take your time and consider each employee carefully; check all references and do not allow yourself to
be blindsided by glib talk. Get the smart dashboard that connects all your business apps to deliver new
insights. It’s Free.
2. Lack of capital
Almost all new ventures require seed capital i.e money that is available to see them through those
first rocky months or even years before they turn a profit. Some types of businesses need more money
than others. Almost all need money for marketing.
Older people who start their own ventures usually need less financing to do so than younger
entrepreneurs. The reason is that their experience in the field, knowledge of how the business world
works, and connections within the business world, some built up over many years, provide a great boost
to their start-up businesses. As a result, they generally are able to turn a profit sooner and need to rely on
financing for a shorter time. The lack of capital means that they have to struggle to survive while waiting
for the checks to come in. This can be extremely stressful.
3. Decisions, decisions, decisions
Whereas as an employee you generally did what you were told, now you are the one calling the
shots. Doing so involves making a lot of decisions. Even without employees, you are going to be called
upon to make decisions all day, from smaller ones to major judgments that could change the direction
and future of your company.

ISBN: 978-93-5300-292-3 Technical Session - II

160 Role of Young Entrepreneurs

Among the most important decisions are those that involve creativity and ideas. If an aspect of
your company is not working as it should, you will need to make a decision to discontinue it or amend
it. You will need to decide whether the company should embark on a whole new path in search of greater
profits — or, if it does not work, potentially great losses.
4. Criticism and self-doubt
As a young entrepreneur, you will find that not everyone will take you seriously. They will tell
you that you are too young to build a successful business. They will be quick to tell you just what they
think you are doing wrong. At times, the criticism and the self-doubt it fosters might get to you. As your
business struggles to get off the ground, you could start to doubt yourself. You might wonder whether you
should have started your business after all.
5. Lack of brand image
As a young entrepreneur builds a business, creating the right image is vital. Customers must come
to trust your brand. They must recognize that you know what you are doing and you know how to do it
well.

7 Important Roles an Entrepreneur Plays In the Economic Development of a Country

1. Wealth Creation and Sharing:
By establishing the business entity, entrepreneurs invest their own resources and attract
capital (in the form of debt, equity, etc.) from investors, lenders and the public. This mobilizes public
wealth and allows people to benefit from the success of entrepreneurs and growing businesses.

2. Create Jobs:
Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The simple
translation is that when you become an entrepreneur, there is one less job seeker in the economy, and
then you provide employment for multiple other job seekers. This kind of job creation by new and
existing businesses is again is one of the basic goals of economic development.

Balanced Regional Development:

Entrepreneurs setting up new businesses and industrial units help with regional development
by locating in less developed and backward areas. Every new business that locates in a less developed
area will create both direct and indirect jobs, helping lift regional economies in many different
ways. Both central and state governments promote this kind of regional development by providing
registered MSME businesses various benefits and concessions.
3. GDP and Per Capita Income:
India’s MSME sector, comprised of 36 million units that provide employment for more than
80 million people, now accounts for over 37% of the country’s GDP. Each new addition to these 36
million units makes use of even more resources like land, labor and capital to develop products and
services that add to the national income, national product and per capita income of the country

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Young Entrepreneurs 161

4. Standard of Living:
Increase in the standard of living of people in a community is yet another key goal of
economic development. Entrepreneurs again play a key role in increasing the standard of living in a
community. They do this not just by creating jobs, but also by developing and adopting innovations
that lead to improvements in the quality of life of their employees, customers, and other stakeholders
in the community.
5. Exports:
Every growing business has to get started up with exports to expand their business to foreign
markets. This is an important ingredient of economic development since it provides access to bigger
markets, and leads to currency inflows and access to the latest cutting-edge technologies and processes
being used in more developed foreign markets.
Community Development:
Economic development doesn’t always translate into community development. Community
development requires infrastructure for education and training, healthcare, and other public services. For
example, you need highly educated and skilled workers in a community to attract new businesses. If there
are educational institutions, technical training schools and internship opportunities, that will help build
the pool of educated and skilled workers.
A good example of how this kind of community development can be promoted is Azim Hashim
Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting education through
the Azim Premji Foundation. This foundation works with more than 3 50,000 schools in eight states
across India.
So, there is a very important role for entrepreneurs to spark economic development by starting
new businesses, creating jobs, and contributing to improvement in various key goals such as GDP, exports,
standard of living, skills development and community development.
“I’m convinced that about half of what separates the successful entrepreneurs from the nonsuccessful
ones is pure perseverance.”– Steve Jobs
Conclusion
In the era of globalization, it is vital to recognize the need of young entrepreneurs by the government
and has to create opportunities for the self development that paves path for the overall sustainable
development of the Indian economy. The venture capital should be provided by the government to
raise awareness on the various initiatives taken up by the government, and make them a part in the
new government initiatives like ‘Make In India’,’ The National Skill Development Corporation India’,
Startup India Campaign, ‘Pradhan Mantri Yuva Udyamita Vikas Abhiyana’ .
Innovation ecosystem plays a key role as it supports and helps entrepreneurs to translate their
ideas into marketable products and services fostered by business-friendly government policies which
bring these innovators profit and success.
Bibliography:
yy www.investopedia.com
yy www.entrepreneur.com
yy www.economictimes.com

ISBN: 978-93-5300-292-3 Technical Session - II

 Health Care IT Entrepreneurship in India
*Challa Maruthy Subrahmanyam, **P. Srinivasa Reddy
*
Research Scholar, Department of Management Studies,
Vignan’s Foundation for Science, Technology and Research University, Guntur, A.P, India
**
Professor, Department of Management Studies,
Vignan’s Foundation for Science, Technology and Research University, Guntur, A.P, India

Abstract Health care IT entrepreneurs have done good amount of work in putting the steps towards digital health
care in India. They have addressed pieces of information in totality that can become part of Electronic Medical Record.
Majority of Health care IT entrepreneurs in India have chosen Hospital Information Management System (HIMS) OR
Patient Administrative System (PAS) as products. They are very successful in implementing these software applications in a
good number of hospitals in every state. The hospitals thus have taken the first steps in the digital hospital direction. Some
Health care IT entrepreneurs have introduced products which facilitate Mobile Application, Telemedicine, Remote Patient
Monitoring, Disease Management and Health care Analytics. This has made other departments in a hospital digital. Some
Health care IT entrepreneurs are doing Integration of different healthcare applications in a hospital. With the introduction of
EMR and the contribution of Health care IT entrepreneurs, India is marching towards Digital Health care.

Introduction
Healthcare IT entrepreneurs have set up start-ups in Health care IT that help health care providers
is India to automate their processes. Functions like Appointment scheduling have been automated. By
this people can book their appointment through an online software application, can amend their booked
appointment or cancel their appointment. This appointment scheduling application is also made available
on mobile giving people the flexibility to book their appointment anytime and anywhere. The only bottle
neck in the usage of mobile application is the availability of internet on mobile. These days one can
see the emergence of different schemes by mobile internet providers and the launch of infrastructure
for availability of signals or internet even in the rural segments of the country. These applications have
helped hospitals also in streamlining their process. For instance one can find more order in the way
the appointments are handled by the hospital. There is now a definite guideline for customers and also
hospital staff in case there happens a cancellation of appointments. This also has brought efficiency in
functioning of physicians. They get list of patients they are likely to see next day well in advance giving
ample space to plan their day. In case a patient or customer does not turn up for a booked appointment
called as no show, then a provision is made to accommodate someone needy. Most hospitals to avoid the
ambiguity of the needier patient have adopted a system of creating a wait list of patients for a day and for
a physician. The next in line in waiting list is the patient or customer who is given a chance if no show
happens. Some hospitals leave one or two appointment slots of physicians voluntarily to accommodate
patients in walk in who need to see the physician on that day.
One can find Health care IT start up in the areas of alternative medicine like Homeopathy or
Ayurveda. The functions involved in homeopathy or Ayurveda care are automated. For instance the
same appointment scheduling application is customized for homeopathy. Here the patient or customer
can book his appointment, amend his appointment and cancel his appointment. One more addition
specific to homeopathy is the integration with Skype a common video conferencing application. On
the appointment day the patient logs in the application having Skype functionality, does details video
conference with his homeopath and takes advice. This allows patients anywhere in India to interact with
a good and reputed homeopath. These days when homeopath experts are less in number, this application
Health Care IT Entrepreneurship in India 163

provides an opportunity to avail homeopath advice and popularize homeopathy as an alternative medicine.
Thus Health care IT entrepreneurs are changing the health care in India.
Review of Literature
Health care start-ups from entrepreneurs can the found in all areas that require automation in a
hospital. Some of the broad areas are
ŠŠ Reception: Entry of demographics of patient, registration for outpatient and admission for in
patients
ŠŠ Billing: Cash payment for in patient and out patient
ŠŠ Physician’s office: It captures physicians observation, diagnosis, laboratory tests, advises and
ePrescription.
ŠŠ Scheduling : It provides doctor appointment scheduling
ŠŠ Operation Theatres: Scheduling of operations, instructions for cleaning and notes during an
operation
ŠŠ Lab: integrated with laboratory to capture the tests advised, preparation of the tests, conducting
the tests and reporting results. Included R-PAC functionality
ŠŠ Pharmacy : It takes care of drug-drug interactions and honouring the prescription
ŠŠ Ward : It provides for doctors instructions, nurses notes and medical management
ŠŠ Document Management: It has the provision for providing the date, time and author for each
updates. Includes clinical documentation
ŠŠ Diet : Taking for patient diet and managing the delivery
● Purpose of Study
The purpose of study is to come out with role of Healthcare IT entrepreneurs in economic
development
● Scope of study
Research is focussed on the broad classification of Health care IT entrepreneurs and their
contributions in economic development
● Research Method
Study uses the secondary data collection method - information published in different articles
regarding Health care IT entrepreneurs in India
● Data Analysis and Interpretation
Health care IT start ups by entrepreneurs can be classified different ways. There is no one universe
way by which they can be classified. Attempt is made here to classify them as the one functional area they
address and the products they have for health care providers market.
Products
Hospital Information System (HIS) / Hospital Information and Management System (HIMS)
Health care IT start-ups have a product as HIS / HIMS. These address the administrative functions
in a Hospital like finance, marketing, reception, material management, pharmacies, operation theatres,
wards and management operations. There emerged a good number of start-ups in this area in India.
Health care IT start-ups focussing in one state initially. Then efforts were made to make the product

ISBN: 978-93-5300-292-3 Technical Session - II

164 Health Care IT Entrepreneurship in India

across India, but the first state they started initially remained their strong point. Since health care IT
market depends a lot on past health care experience, the first state a Healthcare start-up covered remained
their strong unique selling preposition. Large number of Healthcare IT entrepreneurs got involved with
this area; hence competition amongst healthcare IT start-ups came into play. Competition made the
companies more market oriented, each one tried to incorporate unique functionality and the prices
remained market driven. This gave healthy growth in this segment.
Electronic Medical Record (EMR)
Healthcare IT entrepreneurs have established start-ups with EMR as a product. These start-ups
have made EMR customised to Indian needs. They helped in making the hospitals digitized. EMR as
a concept is relatively new. It will take some time for country as a whole to go for EMR adoption. If a
hospital in looking out for an EMR, then they can choose amongst Indian start-ups. Some Healthcare IT
entrepreneurs are resellers for global brands of EMR. They help in customer acquisition, implementation
of the product, customization of the product and support. Similarly we have health care start-ups who
have gone promoting and selling their EMR product in other countries. One can find India EMR start-
ups doing business in Africa, Australia, New Zealand, Singapore, Malaysia to name a few.
Telemedicine
Health care IT entrepreneurs have made rural patients to access the medical advice from specialist
located at cities through Telemedicine. Healthcare IT entrepreneurs have made Telemedicine affordable
and accessible to Indian hospitals or healthcare providers.
Health care Analytics
Some of the health care IT entrepreneurs offer healthcare analytics as a product. It is usually given
as a package along with other products like EMR, HIS or HIMS. These help to analyse the process a
hospital has and the clues of improving them. Thus Analytics if properly used can improve customer or
patient satisfaction by improving the internal process.
Remote Patient Monitoring (RPM)
These are clubbed with instruments that can capture the vitals, passed through a channel and
monitored by a specialist or a physician at a tertiary care centre. Healthcare IT entrepreneurs have
revolutionised patient care through RPM. It is used for conditions that do not require hospitalization
but monitoring of vitals is required. These can be wearable devices. It can also be used for monitoring a
specific activity like cycling or swimming. This opens the door for wellness management. Thus Health
care IT entrepreneurs have made wellness management affordable in India.
Functional Area
Doctor’s discovery Platforms
Doctor’s discovery Platforms help in locating doctors with parameters like specialization,
experience, success rate, past experience and ratings from previous patients. They are very handy for a
person who is new to the city or a patient looking out for physicians with past reputation. Many Health
care IT entrepreneurs have start-ups meeting this requirement. These are usually region specific or state
specific. There is an effort to make these across India.
Integration
Some Health care IT entrepreneurs have start-ups that offer integration as a service. Most of
them do integration in health care across different systems using healthcare standards. The healthcare

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Health Care IT Entrepreneurship in India 165

standards for messaging commonly called as messaging standards like HL7 and coding standards like
ICD, SNOMED are used for integration in health care apart from technology. Some of them have
separate platforms for doing integration. Integration in healthcare is a very critical function and healthcare
IT entrepreneurs have made it affordable and possible in India.
Online Pharmacy
Health care IT entrepreneurs have start-ups that provide online pharmacy. Patients can share
ePrescription, can order online, make payments online and get the delivery in person or through courier.
It provides ease of use and convenience to patients.
Doctors Appointment Scheduling
Healthcare IT entrepreneurs offer mobile applications or online doctor’s appointment scheduling
applications. These have brought efficiency and have opened the doors for third party marketing in small
and medium beds hospital.
Home Healthcare
Healthcare at the door steps of one’s door is termed as Home Healthcare. These can include nurse
care, doctor care, paramedic care and pharmacy. They are many Healthcare IT entrepreneurs who offer
this service. It is a new way healthcare is delivered in India. Numerous applications including mobile
applications are part of the Home care.
Patient Education
These are an application that are used to educate patients in situations when he needs to be
operated, has disease on part of the body which is not visible or a surgical procedure. Mobile applications
are increasingly used for this purpose. Healthcare IT entrepreneurs have start-ups focussed in this area.
Conclusions
Healthcare IT entrepreneurs have start-ups covering almost all functional areas and products
in healthcare market. They have played a significant role in marching towards digital healthcare. They
also made IT in healthcare affordable. They brought the nuances like Remote Patient Monitoring and
customized it to meet the requirements of India. In a way they have brought in new technology in
Healthcare. They have made the usage of mobile by involving mobile applications in healthcare like
doctors appoint scheduling and patient education. Given the pace with which IT is getting adopted in
India and the breed of Healthcare IT entrepreneurs – Digital healthcare in India is not far away.
References
yy Quora Where can I find a list of healthcare startups in India? available at https://www.quora.com/Where-can-I-find-a-list-of-
healthcare-startups-in-India site accessed on 19 October 2017
yy Saying truth 10 Healthcare Startups in India (2017) that are changing the Entire Game available at https://www.sayingtruth.com/
indian-healthcare-startups/ site accessed on 19 October 2017
yy Medgenera 12 Artificial Intelligence Based Healthcare Startups in India available at https://news.medgenera.com/12-artificial-
intelligence-healthcare-startups-india-ai/ site accessed on 20 October 2017
yy India Healthcare stat up jobs available at https://angel.co/india/health-care/jobs accessed on 20 October 2017
yy BWdisrupt Swadeep Srivastava Healthcare Startups Revolutionizing Indian Healthcare? Available at http://bwdisrupt.businessworld.
in/article/Healthcare-Startups-Revolutionizing-Indian-Healthcare-/07-04-2017-115900/ accessed on 20 October 2017
yy Techcircle Most funded healthcare startups in India available at http://techcircle.vccircle.com/2016/09/22/most-funded-healthcare-
startups-in-india/ site accessed on 19 October 2017
yy PwC available at https://www.pwc.in/industries/healthcare.html site accessed on 20 October 2017
yy IBEF available at http://www.india-opportunities.es/archivos/publicaciones/Healthcare-January-2016.pdf site accessed on 20 October
2017

ISBN: 978-93-5300-292-3 Technical Session - II

 Successful Young Entrepreneurs: The Case Studies of India

*Dr. J. Revathy, **Mr. S. Pratap

Principal, VRS & YRN College, Chirala – 523157 Andhra Pradesh.
Research Scholar, Commerce and Business Administration, Acharya Nagarjuna University, Guntur, Andhra Pradesh.

Abstract No doubt, entrepreneur creates the employment and the sky is not the limit for entrepreneurs. In this era,
entrepreneurs are like backbone of the nation’s development. In a recent research that India is about to reach its peak of 64
per cent by the year 2021 with most of the citizens lying in the age group of 25-30 years. Our country is now the third largest
nation in terms of startup to reach the top rank. There are bundle of opportunities to become an entrepreneur to meet the
society needs and simultaneously the organizational objectives. Therefore, in this study many young entrepreneurs have been
encouraged by Government of India and among them I selected on five (5) successful case studies of young entrepreneurs.
Key words: Young entrepreneurs, opportunities, organizational objectives.

Introduction
With definition of entrepreneurship there are often linked topics like self-employment, small
business management, stages of development models and family business issues (Davidsson, 2005).
Usually when we hear a term “entrepreneurship”, in the first moment it leads us to term “entrepreneur”,
who is not only the creator and main actor of business ideas but usually also honored with the greatest
hopes of the development and future of the business. Term “entrepreneur” is derived from the French verb
“entreprendre” which means to undertake, to attempt, to try in hand, to contract for; or, to adventure
(Girard, 1962). To understand entrepreneurs, who should look at three areas: namely how entrepreneurs
act (i.e., what it is they do); what happens when entrepreneurs act (i.e., what are the outcomes of their
actions); and why people choose to be entrepreneurs (i.e., what motivates them to be entrepreneurs)
(Douglas and Shepherd, 2002).
Review of literature
It provides new jobs to compensate for employment problems created by corporate restructuring
and downsizing; and to enhance economic flexibility and growth as said by Mueller and Thomas, (2000).
Considerable amount of literature is present where attempts have been made to understand the critical
factors responsible for entrepreneurial success. Studies on the relationship between such factors and
entrepreneurial success have been clearly explained in many current researches of Makhbul and Hasun,
2011; Pun (2011); Rusu et al. (2012). According to Casson, (2003); Fisher et al. (2014) entrepreneurial
success is a construct that is not defined properly, although there is a conformity that the society benefits
from successful entrepreneurship phenomenon, and hence it is important to understand the concept.
Entrepreneurs have been given a number of definitions by various authors due to their research
focus, such as the research aims, motivation, and stage of enterprise development (Misra & Kumar, 2009;
Nasution et al., 2011; Rusu et al., 2012). There are various reason why entrepreneurs exist including
economic freedom, personal development, family requirements, and environmental pressures (Langevang
et al., 2012; Perri & Chu, 2012), while age and the sizes of firm are important factors (Coombs et al.,
2009).
The development of the Slovak economy as well as countries that belong to Central and Eastern
Europe or even the entire European Union is below a tempo to ensure the desired growth of living standards.
The slow rate of economic growth is additionally accompanied by relatively high unemployment rate,
especially among young people (Eurostat, 2015). On this subject, there has been prepared many scientific
Successful Young Entrepreneurs: The Case Studies of India 167

studies and a variety of solutions have been proposed. The most important solution is the preparation
young people for their future careers.
One possibility how to face the economic challenges in the European Union is to support talented
students, young entrepreneurs and start-ups. This support will help to create new jobs, more competition
in the market, the emergence of innovative products and solutions to a greater growth. In addition to
these macroeconomic benefits it can help young people to develop their skills and personal qualities and
abilities that will be useful for them throughout their lives. Greater support for young entrepreneurs
is promoted by the European Commission, whether it is an internship for young entrepreneurs in the
foreign company through Erasmus program or COSME – support program for SMEs, or program for
promoting science and innovation, Horizon 2020 or the Enterprise Europe Network, which can help in
finding finance, business partners or acquire new technologies (Chrenek, 2014). There are projects and
initiatives to help young people like Youth Guarantee as new approach to tackling youth unemployment
which ensures that all young people under 25, whether registered with employment services or not,
get a good-quality, concrete offer within 4 months of them leaving formal education or becoming
unemployed. Or project I SEE YOU (Initiative to Foster Social Entrepreneurship Experience of Youth)
offers the opportunity for young unemployed people from seven European countries (also Slovakia) to
get an insight into the creation of their own business, developing a social enterprise and then apply this
knowledge in their own community (European Commission, 2015).
Need of the study
India is the second largest population country in the world and there is a huge possibility to meet
tremendous various demands to satisfy the consumer needs because of their increased income levels on a
continuous basis.
Objectives
ŠŠ To study the opportunities for young entrepreneurs
ŠŠ To know the successful young entrepreneurs
Scope of the study
“No entrepreneur no development” entrepreneurship activity is an important to develop the
nation’s economy. An entrepreneur plays an important role, making the country to move from creeping
state to walking stage towards the development state. This entrepreneurship activity fulfils the needs and
desires of society simultaneously to meet their organizational objective.
Methodology
The present study is a case method over selected five entrepreneurs’ cases. As the study largely
depends on secondary data, the required data was collected from Websites, Text books, Journals, etc.
Entrepreneurship: An Opportunity
Entrepreneurship gives young people an opportunity to work on their own skills and interests
and in the process, creating their own employment. Encouraging entrepreneurship in young people
is an important way of harnessing their enthusiasm, energy and ambition to contribute to economic
development. It is generally accepted that entrepreneurs “create jobs, increase innovation, raise competition
and are responsive to changing economic opportunities and trends. Young entrepreneurs can also act as
role models for their peers and, encourage others.

ISBN: 978-93-5300-292-3 Technical Session - II

168 Successful Young Entrepreneurs: The Case Studies of India

According to the World Bank’s World Development Report 2013, around 600 million new jobs
will be required in the next 15 years to support a growing workforce. It is important to note that in
most emerging economies, 9 out of 10 jobs are created by the private sector, which is the foundation
of any thriving economy. In the coming years, developing countries must rebalance their economies
towards greater domestic consumption, import demand and higher value business activity and hence,
entrepreneurship is vital to the future of developing countries.
Government of India must help the entrepreneurs to achieve their full potential as they hold the
key to solving our youth unemployment problem. Their key concern areas are, “they need training, need
help with access to funding and need innovative funding, and need their contribution to be recognized,
need society to tolerate failure, need a streamlined tax and regulatory system”. They also need a supportive
culture in which their contribution is properly recognized and their success is celebrated. Even if there are
failures, it should be considered as a valuable source of knowledge and learning.
We need a culture which is more inclusive, opening the door for everyone to come, explore,
and contribute. Of the young entrepreneurs surveyed in the EY G20 Entrepreneurship Barometer, 84%
believed that raising awareness of their role as job creators improves public attitudes, and it can encourage
others, from all walks of life.
In order to engage young people to choose entrepreneurship as a safe career choice, the perception
of entrepreneurs in the media is very important especially in the digital media. Media should display high-
profile programs showcasing entrepreneurs’ success stories more frequently to motivate these youngsters
as they are the driving force for any nation to grow. We need flexible policy environments and funding
to stimulate and build the framework of an entrepreneurial ecosystem and more importantly, a ‘culture’
of interaction and collaboration. Government can play a major role in bringing together stakeholders to
create an ecosystem which gives boost to entrepreneurship at the national, regional and local levels.
As per reports shared by Accenture, Young entrepreneurs are the driving force behind job creation
in the G20 countries like India, Australia, China, Indonesia, Japan, Saudi Arabia, United Kingdom, and
United States amongst others. Indeed, new Accenture research concludes that 10 million more youth jobs
could be created in G20 countries if existing barriers to entrepreneurship were lifted.
Entrepreneurship: an Innovation
In today’s competitive environment, Innovation is of utmost important to the long-term success
and survival of any business. In the absence of new ideas, an enterprise finds it difficult to grow and
eventually they do a persistent struggle to sustain in the business.
There are several reasons why innovation is critical to business success.  Innovation helps to discover
what opportunities exist now or will appear in future.  It will help you stay ahead of your competitors.
Innovation is not only about designing a new product or service but can also be implemented on existing
business practices to improve efficiency, cut down on waste and increase profits. If a company doesn’t
adapt to its changing environment by constant reinvention of its products & processes, it will soon be
surpassed by its competitors.
Innovation beyond being an engine of profitable growth for companies, it plays a pivotal role
in increasing the vitality of an industry and society by creating jobs and raising the standard of living.
Indeed, in Accenture’s survey of entrepreneurs across G20 countries, 83% said innovation is vital to grow
their business and create jobs.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Successful Young Entrepreneurs: The Case Studies of India 169

Government Initiatives
Indian government recently launched “Startup-India” campaign with a scooping amount of INR
2000 crores allotted to the same. Under the leadership of our honorable Prime Minister Mr. Narendra
Modi, the Indian government also plans to render the budding entrepreneurs different benefits such as
rendering legal advice for filling patents, low cost for filling patents fee etc. All these have been provided
to encourage the entrepreneurship spirit in India.
With government supporting startups at this scale, idea makers of India should really grab this
opportunity to mark their presence in this yet to be discovered sea of innovation and passion.
Just imagine if our government is so supportive and is encouraging startups and entrepreneurship
at this scale, how many more successful startups can emerge in the coming five years or so. Sky is the limit.
Successful Case studies
Case 1: Name: King Siddharta , Age:22 Popular As: An Entrepreneur, Artist, Designer and Public Speaker.
The Journey: King Siddharta was creative since childhood. At an early age of 11, he used to organize
events at his locality. He identified with entrepreneurship and the passion kept growing. During his 10th
standard, he came up with the idea of an online magazine – Friends that brought together like-minded
people at one place. In no time, he developed interest in film making, and he pursued this hobby by
shooting videos along with his friends. By the time he reached the 11th standard, he got well-acquainted
with development and designing of websites. Presently, is an author, speaker and a magazine publisher,
and organizes ‘Createens’ – a conference that aims at teaching young students about entrepreneurship
and blogging. His e-magazine, Friends is extremely popular among teens. Also, he has written a book,
‘Bhagvad Gita and The Law of attraction’ that explains the connection between science and spirituality.
In the year 2010, he was listed among World’s Top 25 Young Entrepreneurs.
Case 2: Name: Ritesh Agarwal, Age: 21 Popular As: Founder and CEO of OYO Rooms The Journey:
Ritesh is known to be one of the youngest CEO in the Indian hotel industry, besides; he is also the first
resident Indian to be awarded with Thiel Fellowship. His dream of getting into the entrepreneurial world
started at the tender age of 17. After his 12th standard, he enrolled in Indian School of Business and
Finance, Delhi, but after a little while, he dropped out of the college to start his own venture. He formed
Oravel Stays at the age of 18, which eventually led to the creation of OYO Rooms, the largest network
of Indian branded hotels. Today, his business operates in more than 100 Indian cities and for the same;
he has been presented numerous awards, one out of which is the ‘Business World Young Entrepreneur
Award’. He is often seen attending various institutes and entrepreneurial conferences as a guest speaker.
Case: 3 Name: Arjun Rai, Age: 22 Popular As: COO of Odyssey Ads The Journey: When kids’ lives
center on toys and mischief at 7, this boy started showcasing his entrepreneur skills. He started his garage
sale, and started selling the gears that he found around his house. Later, he set up his shop where he sold
wedding leftover wildflower necklaces. By 2010, he became the COO of an online advertising company,
and later he set up his own venture, odyssey Ads.
Case: 4 Name: Farrhad Acidwalla, Age: 21 Popular As: CEO of Rockstah Media The Journey: At an early
age of 16 years, he borrowed $10 from his father and bought an internet domain name. Using this, he
built a web community dedicated to aero-modeling and aviation. Once it became successful, he sold the
community for higher returns. Today, he is the CEO of Rockstah Media, an advertising, branding and
marketing company. Also, he has been listed as ‘The Most promising young Indian entrepreneurs of 2012
by India TV.

ISBN: 978-93-5300-292-3 Technical Session - II

170 Successful Young Entrepreneurs: The Case Studies of India

Case: 5 Name: Sabirul Islam, Age: 25 Popular As: Entrepreneur, motivational speaker, author
The Journey: He spent his early years in a crime-ridden borough of London. His cousin let him knew
what entrepreneurship was all about, when at an early age of 13, he offered him a job. Few weeks later,
Sabirul’s cousin was fired, and this was when he decided to run the operations all by himself. When he
was all of 14, he along with 6 of his friends, started a website design company – Veyron Technology, and
earned around $1000 within the first 2 weeks of the company’s inception. By the time he was 17, he
published his first book, ‘The World at Your Feet’, which got sold out at a rapid pace. Next, he launched
‘Teen-Trepreneur’, a board game, started his own publishing company and now attends a number of
events as an eminent guest speaker.
For some people a 9-to-5 job is satisfying, while some realize that the only way they can become
happy is by being their own boss. However, true potential cannot be bound by age, and these young
entrepreneurs have certainly proved the same.
Conclusion
Entrepreneurship is an activity. It is through entrepreneurship we can put new business ideas
into practice. In doing so, it creates jobs that facilitate personal development and economic growth. It’s
a worthy pursuit to consider pass it to the next generation. Innovation ecosystem plays a key role as it
supports and helps entrepreneurs to translate their ideas into marketable products and services fostered
by business-friendly government policies which bring these innovators profit and success. Moreover, it is
the responsibility of entrepreneurs to sustain the atmosphere to future generation also while producing
the product and rendering the services.
References
yy Entrepreneurship Development, Prof. A. Shankaraiah, Rudra saibaba and ponagati, Kalyan publishers.
yy Entrepreneurship; Robart, Michael and Dean A shepherd, 6th edition; Mc Graw Hill.
yy https://in.thehackerstreet.com/india-needs-successful-entrepreneurs
yy https://www.researchgate.net/publication/265397271_Entrepreneurship_and_entrepreneur_A_review_of_literature_concepts
yy http://ac.els-cdn.com/S2212567115016627/1-s2.0-S2212567115016627-main.pdf?_tid=6c917f92-9b52-11e7-8dfa-00000aab0f27
&acdnat=1505616577_3f1bc5bbb3f256114fc31f74a2694851
yy http://www.youngindians.net/entrepreneurship_n_innovation.php

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Challenges of Youth Entrepreneur in India: Role of Entrepreneurship Education for
the Aspirant Entrepreneur
*Dr. Radhika Naidu, **L. Jyotshna Reddy
*Head of the Department, MBA Sri Vatsavai Krishnam Raju College of Engineering & Technology, Bhimavaram
**Research scholar, DCMA, A.U

Abstract: An Entrepreneur is one who envisions and brings aspirations into reality with change and innovation, gathers
resources, labour, materials, and other assets converts it into a product of value greater than before with a order. He is
driven by certain forces like the need to obtain or attain something, to experiment, to accomplish, or be in his own authority.
Entrepreneurship is the process of creating incremental assets. The assets thus created by individuals who presume the major risks in
terms of equity, time or career commitment or provide value for some product or service. The product or service new or unique, value
must somehow be induced by the entrepreneur by acquiring and allocating necessary skills and resources efficiently and effectively.
Aspirant Entrepreneurship is the key factor to fight against the challenges like unemployment, poverty and
to prepare ourselves for globalization and in this paper we shall discuss Youth entrepreneurship, their role in
choosing a career the factors in the Entrepreneurship that make them successful Entrepreneurs challenges and
road blocks during the process and the role of Entrepreneurship education, Organizations support ,Media and
The Government in India for the overall economic progress achieving sustainable entrepreneurship development.
Key words: Entrepreneur, Innovation, Sustainable Entrepreneurship, Skills, Organizations

1. Introduction:
Entrepreneurship is the key factor to fight against unemployment, poverty and to prepare
ourselves for globalization in order to achieve overall Indian economic progress. Encouraging Youth
entrepreneurship is particularly important to face challenges related to high youth unemployment
rates and offer pathways for young people to emerge from unemployment and gives young people an
opportunity to work on their own skills and interests and in the process, creating their own employment.
Encouraging entrepreneurship in young people is an important way of harnessing their enthusiasm,
energy and ambition to contribute to economic development
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 of factors like 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.
Entrepreneurship gained a greater significance at global level under changing economic scenario.
The scope of entrepreneurship development in our country is tremendous. Since there is a widespread
concern that the acceleration in GDP growth in the post reforms period.
The rising unemployment rate in India has resulted growing frustration in among the youth.
In addition there is always problem of unemployment in India. As a result, increasing the entrepreneur
activities in the country is the only solution left with government. Entrepreneurship is not simply adoption
new activities but it is transformation of a person from tradition to modern.
2. Objectives:
ŠŠ To elicit the reason that motivates the young people choosing entrepreneurship
ŠŠ To discuss the role of actors that contributing to the promotion of youth entrepreneurship
ŠŠ To study the Barriers of youth entrepreneurship.
172 Challenges of Youth Entrepreneur in India: Role of Entrepreneurship Education for the Aspirant Entrepreneur

3. Youth entrepreneurship
Youth entrepreneurship has gained more importance in recent years in many countries, with
increased interest in entrepreneurship as a way of boosting economic competitiveness and promoting
regional development.
Youth entrepreneurship defined by Francis Chigunta from the University of Oxford: “the
practical application of enterprising qualities, such as initiative, innovation, creativity, and risk-taking
into the work environment (either in self-employment or employment in small start-up firms), using the
appropriate skills necessary for success in that environment and culture.”
3.1 Youth choosing entrepreneurship as a career
Many people opt for entrepreneurship as their career because of many reasons. Some develop
the industry because they would want to run their own business, answering to no one and setting
all the rules and protocols by themselves. Others jump into entrepreneurship because they have seen
that most successful people in the world own a successful business. There are also others that make
entrepreneurship as a second career because their current jobs are not earning enough for them. Some
chose entrepreneurship as a career because they have the desire to be independent; some want to earn
more money and have to manage their family business. Young people are often facing worse working
conditions like longer working hours, no social protection or lower wages than their older colleagues.
Those three main conditions - high level of youth unemployment, youth underemployment and worse
working conditions are interconnected, but also influence in negative way not only lives of young people
but also current and future economy.
Young people facing those conditions are not only burden for their relatives or social systems,
create less value then possible (in case of underemployment) or create lower consumption. Prolonged
exposure to those factors can have devastating effect on their future life and career choices, or even cause
mental health issues taking into account the scale of problem and its global character youth unemployment
and underemployment is causing grievous socioeconomic consequences that can affect not only current
situation but also future development. Youth entrepreneurship is one of the ways that can be addressing
these problems.
4. Barriers of youth entrepreneurship
Lack of mentorship or Support: As it present individual must both feel ready and have will to become
entrepreneur. But even when being ready and wanting to become entrepreneur he can still need some
support services like mentoring or networking.
Fear of failure: The youth are more worried about the fear of failure. They are more concerned about
their failure rather on their success and it inhibits their entrepreneurship zeal and enthusiasm. They are
more concerned about the society rather than on themselves. As in entrepreneurship risk taking is a major
factor and failure is always around.
Lack of entrepreneurship education: Today India requires the strong empowerment of youth and their
transformation from job seekers to job creators, by channelizing their creative skill and energy towards
successful business ventures. Youth must be groomed at their higher education levels with the thought
of entrepreneurship and must be thought entrepreneurial skills. The educational institutions need to
encourage entrepreneur skills right from the curriculum itself.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Challenges of Youth Entrepreneur in India: Role of Entrepreneurship Education for the Aspirant Entrepreneur 173

Lack of finance: One of the severe problems faced by the young entrepreneurs is non availability of
adequate finance to carry out their operations. Banks also do not lend money without adequate collateral
security or guarantees and margin money which many of them are not in a position to provide
Problems with affordable financing: Lack personal savings and resources, or securities and debt credibility,
complex credit/financing documentation procedures with long waiting periods for decisions, lack of
(successful) micro lending/-finance and seed funding and lack of knowledge of financing possibilities are
standing as barriers to youth entrepreneurship.
Poor administration: un supportive tax regimes, unfavorable bankruptcy laws and property rights,
business registration procedures and costs, as well as lack of transparency, ineffective competition law and
often regulatory framework changes
Lack of Relevant networks: business contacts, suppliers, suitable partners and networks, lack of business
development service, lack of knowledge of available business support services, lack of counselling and
training, lack of mentoring services, and lack of exchange networks, forums and meeting places or lack
of workspace.
5.0 Empower youth Entrepreneurship in India
There are ample opportunities in small businesses is there in India, Such opportunities will
transform India in the coming future. For such transformation to happen there needs to be Empower
and supporting youth Entrepreneurship both at the governmental and societal level.
5.1 Role of Media:
In order to engage young people to choose entrepreneurship as a safe career choice, the perception
of entrepreneurs in the media is very important especially in the digital media. Media should display high-
profile programs showcasing entrepreneur’s success stories more frequently to motivate these youngsters
as they are the driving force for any nation to grow.
5.2 Role of Government
Governments and local communities across the world have recognized that key to building
prosperity and stimulate regional growth is fostering entrepreneurship among their people especially
youth. Youth entrepreneurship has become a subject of major concern for the Government.
They need flexible policy environments and funding to stimulate and build the framework of an
entrepreneurial ecosystem and more importantly, a ‘culture’ of interaction and collaboration. Government
can play a major role in bringing together stakeholders to create an ecosystem which gives boost to
entrepreneurship at the national, regional and local levels. Government must help the entrepreneurs
to achieve their full potential as they hold the key to solving our youth unemployment problem. Their
key concern areas are they need training, need help with access to funding, innovative funding, their
contribution to be recognized, need society to tolerate failure, a streamlined tax and regulatory system.
They also need a supportive culture in which their contribution is properly recognized and their success
is celebrated. Even if there are failures, it should be considered as a valuable source of knowledge and
learning.
5.3 Role of Organizations:
The emergence of entrepreneurs and their contribution to the national economy is quite visible
in India. In order to harness their potential and sustain development, it is essential to devise apposite

ISBN: 978-93-5300-292-3 Technical Session - II

174 Challenges of Youth Entrepreneur in India: Role of Entrepreneurship Education for the Aspirant Entrepreneur

strategies for supporting and executing their efforts towards the entrepreneurial cause. And several
organizations need be lauded for their contribution in this direction.
Several organizations have moved into setting up Entrepreneurship developing programs in India
that not only empower the youth but also encourage them to come up with innovative solutions. They are
also involved in revitalizing Industrial Training Institutes (ITRs) with various state governments. They see
this initiative, in a couple of years, creating entrepreneurial enthusiasm among the rural youth. Partnering
with state and central governments, along with likeminded organizations to foster entrepreneurship, will
be the cornerstone to empower rural India, he asserts.
6. Conclusion:
With increasing interest in youth entrepreneurship, Career guidance services should be made
compulsory and should be provided for all levels of education to help students in making their career
choices which transform into a reality. Efforts taken by the organizations in career guidance will not only
enhance but also help in the overall development of the nation along with the individual early in their life
and becomes a way of thinking.
The Indian government should ensure that the policy measures be strictly adhered to by
encouraging the various financial institutions to grant aid to the prospective youth entrepreneurs by
promoting Entrepreneurship courses
Entrepreneurship courses and education should be incorporated at all levels of educations and
institutes for the uplift of the youth making them social aware and independent and self-sufficient
citizens, helping the development of the country’s economy.
The Indian government should therefore insist and recommend Organizations, Institutions and
Industries to provide new entrepreneurial opportunities for the youth with the onward development of
Global modern Information, Communication and Technological advancement.
7. Reference:
yy Dr. C.B Gupta & Dr. N.P. Srinivasan 2001 Entrepreneurship Development in India Sultan Chand & Sons
yy EY Report 2014 on “Avoiding a lost generation: Ten key recommendations to support youth entrepreneurship across the G20”
yy Agarwal, K.K .and Upadhyay, R.K. (2009), “Attitude of Youth Towards Entrepreneurship: A Case Study of Varanasi”, The ICFAI
University Press
yy Baker K (2008), “Fostering a Global Spirit of Youth Enterprise”, Preparatory Briefing of the Global Forum on Youth Entrepreneurship.
yy http://toostep.com/insight/youth-entrepreneurship-the-ultimate-key-to-self-reliance

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 Exogenous Determinants of Entrepreneurial Intuition & the Mediatory
Role of Psychological Capital among Potential Youth Entrepreneurs – A Study
*Dr. V. Venkateswara Rao, **D. Pushpa Sri
Director of EDP, PACE Institute of Technology & Sciences: Ongole Email: [email protected]
Assistant Professor, Department of MBA, PACE Institute of Technology & Sciences: Ongole. Email: [email protected]

Abstract: Some of the researchers argue that intuition should be given more importance in scholarly research,
but not many researchers have investigated intuition in entrepreneurial settings. The study therefore investigated the
influence of career adoptability, ambiguity tolerance, achievement need and mentioning support on entrepreneurial
institution and the mediatory role of psychological capital. The study was designed in a bid to enhance the intuitive
capacity of potential entrepreneurs who needs a comprehensive entrepreneurs training that include modules
of career adaptability, need for achievement should be incorporated in all categories of territory institutions
Key words: Career adoptability, psychological capital etc.

Introduction:
Entrepreneurship is n outcome of complex balancing of opportunity initiatives, risks and rewards.
It is a process by which people pursue opportunities, fulfilling needs and wants through innovations with
regard to the resources they currently cant role. Through the process of entrepreneurship, it is possible
to augment the scope of capital formation, job creation and facilitate industrialization in a country.
Entrepreneurship also acts as a powerful tool for raising productivity through innovation, facilitating
transfer of technology, playing a key role in commercializing new products, redistribution of wealth
and income, earning foreign exchanges, promoting economic welfare in the country. However, while
entrepreneurship may be deemed beneficial in the areas of job creation, its success depends on the
intuition capacity of entrepreneurs to make business decisions under fast paced and saturated market
conditions. Theoretical influences have identified roles of various psychological constructs on different
types of entrepreneurship behavior. This study attempts to establish an empirical basis for the influence of
career adoptability, ambiguity tolerance, need for achievement and mentoring support on entrepreneurial
intuition.
Entrepreneurial intuition is defined as instinctive and instanious capacity to recognize and
respond to business related cues. It describes a set of intrinsic traits that can prompt a deposition towards
patters of effective entrepreneurial activities. Lapira and Gillian defines entrepreneurial intuition as a part
of entrepreneurial decision and action that is not based on the reason of extrapolations, but it is based on
feeling of rightness.
Entrepreneurship and Economic Growth:
The joint production of entrepreneurs and workers where former provide, both entrepreneurial
(strategic) and managerial (coordination and motivation) services whilst management services are shared
with individual workers in such a way that output is maximized. The static equilibrium determines the
endogenous share of the entrepreneurs in the economy. The time dynamics of the solution imply that a
given growth rate in the quality of entrepreneurial services contributes to the productivity growth rate in
proportion to the share of entrepreneurs at the time period to improve the quality of the entrepreneurial
services is convergence enhancing. The improvement in the quality of entrepreneurial services can make
a substantial contribution to the economic growth by means of more effective management function
performance. The growing interest in the entrepreneurship among academic and in public policy justifies
176 Role of Psychological Capital among Potential Youth Entrepreneurs – A Study

a broader perspective on the functions of entrepreneurs in economic activity and on how efficiency in
performance translates to productivity over a period of time. Higher quality entrepreneurial services affect
output in two ways. Better strategic decisions that increase the productivity of the organization as a whole
and better managerial decision that improve efficiency through improved coordination and supervision
direct workers. Profit maximization behavior of the firms and equilibrium conditions in the supply and
demand of the labor determines the equilibrium share of entrepreneurs in the economy.
It is explained that the countries with a broader base of entrepreneurs gin relatively greater benefits
from improvements in the quality of entrepreneurial services over a period of time. Developments in
entrepreneurship, in theory as well as in practice will feel its growth. Given that more practice would
mean instances of introspection adding to existing knowledge base and simultaneous development of
periodical precision should be automatic. The framework works at both ends by pushing entrepreneurial
intuitions and pulling higher levels of knowledge creation to support the needs of a core business activity.
The synergies of entrepreneurship, as a field of study with other fundamental business management
courses, such as marketing, necessitate a framework for developing an entrepreneurship to the students, of
business management to ensure an integrated learning platform. A Framework for building this effective
entrepreneurship education eco-system is surely the need of the how ever and it requires a greater focus
on knowledge creation to support the framework.
Significances of MSME in Indian Economy:
In recent years, particularly since adoption of the economic reforms in India there has been a
decisive switch of emphasis from the capital intensive to MSME with immense potential for developing
domestic linkages for rapid. Sustainable industrial development apart from their potential for ensuring a
self-reliant industrialization in terms of ability to rely largely on local raw materials, SME’s are also in a
better position to boost employment guarantee more even distribution of industrial development in the
country.
Objectives of the Study:
ŠŠ To identify the determined exigent factors in influencing SME in India.
ŠŠ To assess the role of micro and small enterprises in employment generation and entrepreneurial
development.
ŠŠ To assess the extent of poor financing has affected SME operations.
ŠŠ To recommend appropriate measures through SME’s can be more effectively developed in India.
Literature Review:
Economic development depends to large extent on the active and enthusiastic participation of
intellectual entrepreneurs in the economic process. It is exclusively as a process of technological change
which is brought in by the creativity of the entrepreneurs. In modern India, the SME’s have emerged
vibrantly in the face of raising threats from the large scale sectors inside the country of multinational
abroad. There are various factors such as need for independence, improving financial position self-
fulfillment, desire to be own boss etc., motivates an entrepreneur. The factors such as age, gender and
individual background such as education and framework experience have an impact on entrepreneurial
intuition and endeavor. It is found that human capital or human resource such as age, gender, education
and experience is further influence on the decision to become self-employed.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Psychological Capital among Potential Youth Entrepreneurs – A Study 177

The Impact of Entrepreneurship on Economic Growth:

More recently a series of studies has identified a change in the determinants underlying the
industry structure that has reversed the trend. The most salient point of this change is that technological
change globalization, deregulation, and shifts in the labor supply, variety in demand and the resulting
higher levels of uncertainty have rendered a shift in the industry structure away from greater concentration
and centralization towards less concentration and decentralization. A series of empirical studies have
uncovered two systematic findings regarding the response of industry structure to changes to underlying
determinants. The first is that industry structure is generally shifting towards an increased role for small
firms. The second is that the extent and timing of this shift is anything but identical across countries.
Apparently, institutions and policies in certain countries have facilitated a greater and more rapid response
to technological change and globalization along with other lying factors, by shifting to a less centralized
and more dispersed industry structure.
Significance of Determinants of Entrepreneurial Intuition- A Methodology:
The conceptual work on opportunity identification suggests that intuition may be one of the
cognitive processes responsible for enabling entrepreneurs to leverage their vast knowledge and
complex mental frameworks to enhance their opportunity identification ability. The outcome of the
processing is a major determinant of how they feel, interpret events, make decisions and behave.
Psychological Capital:
The psychological capital questionnaire was used to assess the PSQ draws from widely recognizes
published standard measures for each of the positive cap as follows. 1. Hope, 2. Optimism, 3. Self-
efficacy, 4. Resilience.
Conclusion:
An interesting line of future research would be to provide an explanation of the dynamics
of management technology that determine the evolution of the share of entrepreneurs over time, as
well as looking at the determinants of differences in the quality of entrepreneurial services in different
countries over time. Differences in the entrepreneurial abilities of individuals in different countries would
explain the dispersion of different sized firms within a country. The effects of scale economies as a result of
quality in strategic decisions would imply a more than proportional effect of the differences in ability
on the size differences of firms. Therefore, dispersion in the sizes of firms within countries would be
expected to be a relevant variable for explaining productivity and growth.
Future research should also extend the results to situations where liquidity constraints can
limit access to becoming an entrepreneur – where the entrepreneur is also the capitalist. In this situation,
entrepreneurs manage both direct labor and capital and the model of optimal allocation of entrepreneurial
time would have to determine the allocation of this time in the two inputs. Unfortunately, data on the
number and share of entrepreneurs in different countries is highly incomplete and compiled according
to differing criteria in different countries. Moreover, we only have data on R&D and capital
inputs for a limited time period and for a limited set of countries, so labor productivity growth has to be
modeled without allowing for growth in the capital per employed person of the countries in the sample.
Finally, our data does not distinguish between entrepreneurs with or without salaried employees. The fact
that the main conclusions from the estimated models (in terms of the importance of improvements in
quality of entrepreneurial services to productivity growth) are robust to longer or shorter time estimation

ISBN: 978-93-5300-292-3 Technical Session - II

178 The Role of Young Entrepreneurship in India

periods and to estimations from the reduced sample with capend R&D data, suggests that the rest of the
control variables avoid potential biases in the estimated coefficients although further research with more
refined data is clearly required. Finally, future research should aim to confirm the results of this study
by using more complete databases and thereby contributing to the resolution of some puzzling results,
such as the particularly high estimated value of the rate of improvement in the quality of entrepreneurial
services in the nineties – a period of shake out with a generalized spread of information technologies.
The effort would be worthwhile, this is especially true if we take into account how little we know about
entrepreneurship and economic growth, the importance of entrepreneurship in economic policy actions
and what are, in our opinion, the important insights gained from this study.
References:
yy Acs, Z.J. and D.B. Audretsch. (1990). Innovation and Small Firms. Cambridge, MA: MIT Press.
yy dics, Z. J., D. Audretsch and D. Evans .(1994). The Determinants of Variations in the
yy Self- Employed Rates Across Countries and over Time. Mimeo.
yy Acs, Z. J. and D. Storey. (2004). “Introduction: Entrepreneurship and Economic
yy Development”. Regional Studies. Vol. 38, pp. 871-877.
yy Alchian, A. and H. Demsetz. (1972). “Production, Information and Economic
yy Organization”. American Economic Review. Vol. 62, pp. 777-795.
yy Audretsch, D. B., and M.P. Feldman. (1996). “R&D Spillovers and the Geography of
yy Innovation and Production”. American Economic Review. 86(3), pp. 630-640.
yy Audretsch, D. B. and M. Keilbach. (2004a). “Entrepreneurship Capital and EconomicAcs, Z.J. and D.B. Audretsch. (1990).
Innovation and Small Firms. Cambridge, MA: MIT Press.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 The Role of Young Entrepreneurship in India
*Dr. Krishna Banana, **V. Veeranjaneya Kumar. P, ***V Rama Krishna Rao Chepuri
*Asst. Professor., Head of the Department Department of Business Administration, Acharya Nagarjuna University Ongole Campus
**Research Scholar, Acharya Nagarjuna University-Guntur Asst. Professor, Department of Business Administration
St. Ann’s College of Engineering & Technology, Chirala
***Research Scholar, Acharya Nagarjuna University, Asst. Professor, Department of Business Administration, St. Ann’s College of
Engineering & Technology, Chirala

Abstract: Recently, interest in youth entrepreneurship has been fuelled due to high levels of unemployment amongst
young people and as a way to foster employment opportunities or to address social exclusion. Youth entrepreneurship
has gained more importance in recent years in many countries, with increased interest in entrepreneurship as a way of
boosting economic competitiveness and promoting regional development. Today’s youth are keen to experiment and take
risks. At present, many young fearless entrepreneurs have set the path for a wave of entrepreneurship in the country. This
entrepreneurial spirit has resulted in not just innovation but also in entrepreneurship being recognized as the driving
force of the market. Also, with government actively endorsing startups and small businesses, the wheel of entrepreneur-
driven innovation has started rolling. One of the major challenges faced by most of the countries in the world today is
to do with Youth unemployment. The overall unemployment rate is growing at an alarming speed. Amongst the
unemployed, the unemployment of youth seems to be alarming. The current global youth population is estimated to be
at 1.5 billion of which 620 million are employable and ninety percent of this population live in developing countries.
Countries like India and China have a fast increasing youth population and the rate of unemployment too is rising rapidly
Key words: Youth entrepreneurship; Economic development; Unemployment, experiment

Youth Entrepreneurship - An Overview

Youth is the Future of every nation & inheritors of the earth tomorrow. This statement stands
true in every sense. When a country has a healthy youth population, you will find the country making
headway in terms of overall development and progress. A country with high aging population and lower
youth population has a lot of problems to content with that can slow its growth. The world today
has transited into a ‘Technology Era’. Technology has enabled progress in all fields and all societies.
Technological revolution has changed the face of lives of people bringing healthcare, information and
connectivity to even the most remote areas that were hereto isolated.
Globalization has brought countries together and created entire world market. We are seeing a lot
of changes in the international political map of the world. Countries are beginning to show determination
to move from the old age monarchies and dictatorial regimes towards democracy. Progress and challenges
go hand in hand. One of the major challenges faced by most of the countries in the world today is to do
with Youth unemployment. The overall unemployment rate is growing at an alarming speed. Amongst the
unemployed, the unemployment of youth seems to be alarming. The current global youth population is
estimated to be at 1.5 billion of which 620 million are employable and ninety percent of this population
live in developing countries. Countries like India and China have a fast increasing youth population and
the rate of unemployment too is rising rapidly. As per ILO’s prediction approximately 660 million youth
will be seeking employment by 2015. The youth unemployment is higher measuring up to 50-60% in
Asia.
The above figures stand to reveal the fact that Global youth unemployment could boomerang
to become a global crises causing social and economical impact on all countries besides pushing the
economies and progress backward. Though every government as well as world Organizations do frame
180 The Role of Young Entrepreneurship in India

policies and promote schemes as well as funds to promote youth employment programs, the quantum of
such effort is negligible when compared to the huge numbers.
Governments are focused on looking at framework and strategies to creating new jobs and
increasing employment rates. However there is an urgent need for the policy makers to look specifically
at the Youth unemployment and related issues. In some of the countries youth entrepreneurship is being
recognized as a promising alternative and is being actively promoted by various agencies. If promoted
actively, Youth entrepreneurship can help sustain growing economies; integrate youth into the workforce
besides leading to overall development of society.
Entrepreneurship in any society is a sign of progress. The IT business in US has been the bedrock
for youth entrepreneurship and created stars and multi-millionaires in Bill Gates, Steve Jobs to Google’s
SergyBrin and Larry Page and many more. There are similar such stories in other countries too. However,
the need of the day is to create many more stars and make available the opportunities for every youth to
dream big and try their hands at entrepreneurship.
Objectives:
ŠŠ To investigate particular challenges that prevents expansion in youth entrepreneurial ventures.
ŠŠ To analyze and describe the possibilities of youth entrepreneurship development
ŠŠ To study the factors contributing to the promotion of young entrepreneurs to start up their own
enterprise.
Literature Review -Entrepreneurship
Venkataraman (1997) described that the “Entrepreneurship is an activity that involves the
discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of
organizing, markets process and raw material through organizing efforts that previously had not existed”
Shane and Venkataraman (2000) observed that the “Entrepreneurship is an important process by
which new knowledge is converted into products and services”
In (2000), Timmons suggested that entrepreneurship is a process of creating or seizing and
pursuing an opportunity, irrespective of the available controlled resources
Nafukho, Kobia et al. (2010) argue that the reason for not having a universal definition is because
entrepreneurship has been studied in many disciplines, which has resulted in the rise of many opinions
regarding its meaning.
Kelley, Singer et al. (2012) suggested that perhaps entrepreneurship has practical appeal but less
visibility in many countries.
Gwija (2014) analyzed that the Entrepreneurship is the process where an entrepreneur’s forms a
venture by seeing the opportunity in the market, undertake the risk by the help of effective innovative
idea or process and collect profit from the business. Numerous researchers in the field of entrepreneurship
have not come up with single and unanimously acceptable definition for entrepreneurship
Youth Entrepreneurship:
The entrepreneurs are one of the essential pillars of economic growth, job creation, empowerment
and innovations gaining ground in India. It’s an important facet of unleashing individual creativity and
energy for the purpose of greater common good.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Young Entrepreneurship in India 181

Increase in Job Scenario: Entrepreneurship benefits the economy as more jobs get created, the
nation reaps benefit of innovation and society progresses. Our recent study of young entrepreneurs in
Gurgaon reveal, on average an entrepreneur creates five jobs in two years, but if the venture survives for five
years, this increases to 50 jobs. The reason why Bangalore or Gurgaon are hot beds for entrepreneurship is
that higher the density of small business in a city, greater propensity for new venture creation.
Entrepreneurship in School & College: Launching entrepreneurship awareness programmes in
schools and colleges can ignite youth to the infinite possibilities of entrepreneurship — ranging from
self employed to high technology entrepreneurship. Prof. Paul Reynolds’ research on entrepreneurial
dynamics finds strong linkage between education in entrepreneurship and new entrepreneurship efforts.
Most countries and policy makers have recognised this fact and are working towards building an
entrepreneurial ecosystem through focused youth entrepreneurship programmes. The question is how
do you build this? Building and promoting entrepreneurial ecosystem for youth requires multi pronged
strategy of encouraging entrepreneurial culture in school and colleges, celebrating entrepreneurship by
providing role models in schools and colleges, introducing entrepreneurship developmental courses,
setting up localized mentoring networks and making available early stage funding through banking
system.
Building Entrepreneurial Culture:
A recent study on entrepreneurship in India by Gallup states that India has abundant entrepreneurial
talent, but, Indians lack in risk taking. Building entrepreneurial culture is a long term prescription. This
can happen when academia and Government work with business to start bringing local entrepreneurs
into classrooms.
Entrepreneurship is usually associated with new ideas, new ventures, disruptive technologies, quick
prosperity of entrepreneurs and hence, people believe that there should be a strong link with economic
growth. Essentially there are three main elements of entrepreneurship — an innovative idea, risk taking
behavior of people and perception of presence of economic opportunities that can be exploited. To do
this, India needs to introduce innovation and entrepreneurship courses that will allows process of inquiry
and risk taking. The curriculum should take care to build students competence, confidence, courage and
passion for the inventiveness and teach them to put theory into action. Every university in India must
have a Centre for Entrepreneurship. These centers should identify and recognize local entrepreneur role
models and involve them in educating people. University professors must open up their guards to actively
engage with local small business community. University level business and technology incubators should
be in a position to crack this code. Provided these incubators are run like a business. This can happen only
when we create a pool of teachers who could teach entrepreneurship. America has an excellent system of
Network For Teaching Entrepreneurship (NFTE) which could provide us the framework.
The culture of startup weekends need to penetrate to tier 2/3/4/5 cities. Since Indian academia
lacks ‘how to do this’ vision, Government has to play a key role by providing grants, encouraging
investors by providing incentives for investment in innovative student ideas and solutions to fast track
the realization of true potential.
Academia has to play a key role in this. We must document the success stories coming university
labs. This can be enabled by making the commercialization process out of university labs and incubators
smooth. There are ambiguities surrounding intellectual property rights coming out of Government
funded university research. This should be cleared with most commercial benefits loaded towards the
researcher. This can unleash commercialization of R&D. No less important are taxes— we should create

ISBN: 978-93-5300-292-3 Technical Session - II

182 The Role of Young Entrepreneurship in India

capital gains tax exemptions for startup investments held for a period of years and offer tax incentives for
startup operating capital.
A time-bound, purposeful policy with clear near term, medium term and long term goals shall go
a long way in building entrepreneurial ecosystem in India.
Why Young Entrepreneurs are so Important
Thousands of young entrepreneurs from 43 countries across the world took part in a series of
online and onsite dialogues as part of the Road to Lima 2015 activities. The inclusion of youth in such
an important process was possible thanks to the World Bank Group and the Young Americas Business
Trust (YABT).During this global consultation, young entrepreneurs mentioned that they still face
challenges when starting their own businesses, such as access to funding, education and trainings, better
infrastructure, and networking opportunities. However, young people did also share with us life-learning
lessons as entrepreneurs and explained us how entrepreneurship has evolved over the past years in their
home countries. Today, we are proud to share an overview of the #youthbiz global campaign where 2
million young people across the globe were engaged.
The World Bank and YABT have worked together over the past months to provide a
global platform to voice young people´s recommendations and experiences through their own
stories about their opportunities; government programs; and entrepreneurship philosophy.
In doing so, we aimed to raise awareness about young entrepreneurs´ increasing role in
guaranteeing sustainable growth and shared prosperity in their countries and worldwide.
For the global consultation, we included three channels to facilitate significant participation from every
continent. These channels consisted of 3 global dialogues in three languages (English, Spanish and
French); thirteen national dialogues (Latin America, Africa and the Caribbean); and 3 virtual consultations
(English, Spanish and French).
Their participation in this global consultation demonstrated that entrepreneurs are drivers of
innovation, economic growth, and keen to make a positive change in their societies. By dismantling
monopolies, creating new demands, and tackling old problems with new technology, young entrepreneurs
prove to foster more competitive economies and are enablers of shared prosperity, while adapting more
rapidly to ever more globalized societies. They are also the source of innovative solutions that governments
and private sector need to address current and future development challenges, especially since the
international community is enforcing the new Sustainable Development Goals in January, 2016.
Regardless of their language, level of education or nationality, young people see entrepreneurship
as a means to achieve social and economic development. In order to succeed their start-ups, create jobs,
and have a significant impact in their home countries, the serious commitment from their governments,
and the private and financial sector in their home countries is a must. In the upcoming Annual Meetings
of the World Bank and the International Monetary Fund in Lima, Peru, a flagship event “Young
entrepreneurs as Drivers of Sustainable Growth” led by World Bank President Jim Jong King will address
these and other issues.
Entrepreneurship Skills:
Entrepreneurship skills involve recognizing economic opportunities and acting effectively on
them. McClelland (1986) acknowledged the following entrepreneurial skills to successfully start-up and
advance the business ventures.
ŠŠ Inner discipline

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Young Entrepreneurship in India 183

ŠŠ Ability to take risk

ŠŠ Innovative
ŠŠ Change oriented
ŠŠ Persistent
ŠŠ Proactiveness
ŠŠ Committed
Management Skills:
Management skills consist of those skills which are essential for day to day operation and
management skills. Even though the business venture differ in size, type and structure, generally business
venture usually has marketing, finance, general management, operation, administration and external
affairs functions within. An individual needs to have following management skills to be successful in
entrepreneurial career.
ŠŠ Planning
ŠŠ Decision making
ŠŠ Motivating
ŠŠ Marketing
ŠŠ Finance
ŠŠ Selling
Technical skills:
In setting up new business venture, entrepreneur should decide to divide major tasks into smaller
manageable projects, which require technical to plan and control entrepreneurial process. Entrepreneurs
should use project management techniques to plan and control the project. An individual needs to have
following technical and project management skills in order to be successfully run the business venture
ŠŠ Communication
ŠŠ Design
ŠŠ Research and development
ŠŠ Environmental observation
ŠŠ Critical path method
ŠŠ Work break down structure
ŠŠ Quality control plan
ŠŠ Organizational breakdown structure
ŠŠ Configuration management
ŠŠ Document control
The Role of The Entrepreneur
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

ISBN: 978-93-5300-292-3 Technical Session - II

184 The Role of Young Entrepreneurship in India

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. Why is that? 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. More
than any other member of our society, entrepreneurs are unique because they’re capable of bringing
together the money, raw materials, manufacturing facilities, skilled labor and land or buildings required
to produce a product or service. And they’re capable of arranging the marketing, sales and distribution of
that product or service.
Entrepreneurs are optimistic and future oriented; they believe that success is possible and are
willing to risk their resources in the pursuit of profit. They’re fast moving, willing to try many different
strategies to achieve their goals of profits. And they’re flexible, willing to change quickly when they get
new information. Entrepreneurs are skilled at selling against the competition by creating perceptions of
difference and uniqueness in their products and services. They continually seek out customer needs that
the competition is not satisfying and find ways to offer their products and services in such a way that what
they’re offering is more attractive than anything else available.
Entrepreneurs are a national treasure, and should be protected, nourished, encouraged and
rewarded as much as possible. They create all wealth, all jobs, all opportunities, and all prosperity in the
nation. They’re the most important people in a market economy--and there are never enough of them.
As an entrepreneur, you are extremely important to your world. Your success is vital to the success
of the nation. To help you develop a better business, one that contributes to the health of the economy,
I’m going to suggest that you take some time to sit down, answer the following questions, and implement
the following actions:
What opportunities exist today for you to create or bring new products or services to your market
that people want, need and are willing to pay for? What are your three best opportunities?
ŠŠ Identify the steps you could take immediately to operate your business more efficiently, especially
regarding internal operating systems.
ŠŠ Tell yourself continually “Failure is not an option.” Be willing to move out of your comfort zone,
to take risks if necessary to build your business.
ŠŠ Use your creativity rather than your money to find new, better, cheaper ways to sell your products
or reduce your costs of operation. What could you do immediately in one or both of these areas?
ŠŠ Imagine starting over. Is there anything you’re doing today that, knowing what you now know,
you wouldn’t get into or start up again?

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Young Entrepreneurship in India 185

ŠŠ Imagine reinventing your business. If your business burned to the ground today, and you had to
start over, what would you not get into again? What would you do differently?
Factors responsible for the emergence of entrepreneurship
There are number of factors that motivate a young person to pursue a career in entrepreneurship.
These factors can be outlined as follows:
Background factors
ŠŠ Education
ŠŠ Family role
ŠŠ Financial condition
Motivational Factors:
ŠŠ Need for achievement
ŠŠ Locus of control
ŠŠ Need for independence
Economic Factors:
ŠŠ Government policies
ŠŠ Business environment
ŠŠ Availability of financial assistance
Factors Affecting Entry to Entrepreneurship

There are number of factors that can drive an individual to become an entrepreneur (Nieman and
Nieuwenhuizen 2009). These authors categorize them as push (necessity) and pull (opportunity) factors.
The figure below presents the influence that result in entrepreneurship.

ISBN: 978-93-5300-292-3 Technical Session - II

186 The Role of Young Entrepreneurship in India

Youth Unemployment and Causes

Youth entrepreneurship has an impact on social as well as cultural and economic progress of the
society. Building an environment that promotes creatively and provides opportunities for entrepreneurship
calls for multi pronged strategies implementation and involvement at all levels including Government,
industry, political, social as well as educational sectors. Working towards Youth Entrepreneurship programs
can help solve as well as avoid a lot of problems that are currently staring at the countries and pave way
for a better future and progressive societies world over.
Youth unemployment is being recognised as one of the problems that could grow into global
proportions in the coming years causing social and economical problems for the societies. Youth
entrepreneurship is being look at as an alternative besides other methods of creating employment
opportunities. However, there is a need for global recognition and promotion of Youth entrepreneurship
on sustained long term basis for this field certainly holds a promising future.
Revolution in technology and the resultant growth in all fields and globalisation has impacted
the World. Developing countries like India and China are growing rapidly both in terms of economic
development as well as population. Growing economies provide ample opportunities for services and
provide opportunities for entrepreneurs to set up small enterprises in different fields. There are huge
opportunities for individual enterprise in IT Services, Financial services, Travel and Tourism, Food, Supply
chain, Health care services and many more fields. While some country’s economies are not growing and
the unemployment is growing, in the developing countries which are registering higher economic growth,
there is no impetus for growth of youth entrepreneurship.
Reasons and Causes:
1. Socio-Cultural Factors as Inhibitors to Entrepreneurship:
In some of the countries the social and cultural outlook of the societies may not encourage
initiatives and entrepreneurship. Many societies expect the youth to obtain education that enables them
to get a job and earn salary to support the family. Economic compulsions too can push the families to
encourage youth to look for jobs and not look at opportunities. In some cases certain caste or class of
people are habituated to practicing certain occupations and thus entrepreneurship becomes a prerogative
of certain sections of the society. Some other societies are risk averse and tend to play safe, while
many communities believe in their children pursuing defense services opportunities or social service
opportunities and so on. In societies where the incidence youth rebellion, revolt and violence is very high
due to economic situation as well as due to the cultural outlook, youth may be wasting their time neither
pursuing education that helps them gain employment nor trying their hands at hands at entrepreneurship
in the face of too many obstacles and hurdles in the society.
2. Economic & Political Factors:
Economies which are not growing are grappling with huge unemployment problems and this is
affecting the youth too. When the economy is down and the business is not doing well, there will be no
opportunities for small entrepreneurs to provide services to support the economy and business. Political
will and focus to focus on youth in the country and to create a positive environment that encourages
youth to dream and work towards realising their dream is very much necessary in any society. It is the
political will that can spearhead the Youth revolution. Absence of stability in the political situation of the
country and the political party’s outlook towards this area can make or break the youth entrepreneurship’s
growth.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Young Entrepreneurship in India 187

3. Policy framework:
Government policy and framework in the country helps identify and build the base for youth
entrepreneurship. The policies need to encourage and provide opportunities as well as assistance and
environment to give impetus to youth entrepreneurship and have got to be implemented at national,
regional and local levels. Policy directives will need to engage the business, banking, educational and
other sectors to be able to deliver definitive steps to encouraging and aiding youth entrepreneurship. Lack
of such policy framework can hinder the growth and initiative in the youth.
4. Industry Support & Patronage;
In any industry, it is largely the business sector that provides opportunities for support services
and creating new networks of business enterprises. Similar to their role in social responsibility, Industry
can create a very strong platform to help develop the youth and give them the support and guidance as
well as opportunities to the youth. In society where the industry enterprise is not very significant or not
very active, there can be no encouragement for youth entrepreneurship.
5. Education System & Orientation;
In most of the countries today the education system is geared to enabling the youth to pass
out with their qualifications based on academic knowledge and prepare for seeking a job. There is little
or no focus on building and equipping the students with leadership, building awareness and giving
them training for entrepreneurship. Of late there is a trend to introduce specialised courses and training
modules on entrepreneurship in many of the universities. In most cases the students do not attempt to
think out of the box as they are not equipped with the necessary skills.
6. Finance & Business Support;
One other biggest hurdle faced by each and every entrepreneur is the lack of financial backup
and funding as well as guidance required to incubate new business. Most often those who attempt to
start any enterprise do so borrowing from family and friends and dipping into their saving. After a
while the business starts to suffer due to lack of funds and they end up in a debt trap. Banking and
financial assistance should be made available easily and this can happen only with the active support and
engagement by the Government. Nowadays venture capitalists are funding new enterprises. However this
is available to very few and not to the larger sections of the society.
Conclusion:
Most of the young entrepreneurs in Orissa suffer from the problem of deficiency of working
capital; tax regulations and lack of adequate encouragement by the society. These have been the bane
for poor performance in the state, contrary to the belief that Orissa does not have indigenous, dynamic
and committed entrepreneurs. Today, youth is more daring and hardworking and career oriented,
and can be easily transformed if proper training and knowledge in entrepreneurship can be provided..
Entrepreneurship can be more acclaimed if we can capitulate the transformation process of the youth
which had started in our nation and could live long and citizens of tomorrow. A few decades ago, people
were not very keen to leave a high-paying job to apply their skills and challenge their destiny in a startup.
Entrepreneurship was not so prevalent. If you were an entrepreneur or part of a startup, it was likely a
family endeavor or enterprise. However, the present scenario is entirely different. Today’s youth are keen
to experiment and take risks. At present, many young fearless entrepreneurs have set the path for a wave
of entrepreneurship in the country. This entrepreneurial spirit has resulted in not just innovation but also

ISBN: 978-93-5300-292-3 Technical Session - II

188 The Role of Young Entrepreneurship in India

in entrepreneurship being recognised as the driving force of the market. Also, with government actively
endorsing startups and small businesses, the wheel of entrepreneur-driven innovation has started rolling.
References
yy Agarwal, K.K “Attitude of Youth towards Entrepreneurship: A Case Study of Varanasi”, the ICFAI University Press.
yy Baker K (2008), “Fostering a Global Spirit of Youth Enterprise”, Preparatory Briefing of the Global
yy Forum on Youth Entrepreneurship.
yy Blanchflower, D.G. and Oswald, A. J. (2007), “What Makes a Young Entrepreneur?”, IZA Discussion
yy Goel A, Vohra N, Zhang L and Arora B (2007), “Attitudes of the Youth Towards Entrepreneurs
yy Entrepreneurship: A Cross-Cultural Comparison of India and China”, The Indian Institute of Management
yy Greene, F.J. (2005), “Evaluating Youth Entrepreneurship: The Case of the Prince’s Trust”,
yy htwww.youthbusiness.org/pdf/RecommendationsforAction.pdf
yy http://www.cacci.org.tw/Journal/2009Vol1/Youth2009Vol1.pdf

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 Education Reforms in India
K. Sivaiah, Ch. Yashoda Rao
Research scholars, A.N.U campus, Guntur

Abstract: India has emerged as a global leader and a strong nation. Education is the key to the task of nation building as
well as to provide requisite knowledge and skills required for sustained growth of the economy and to ensure overall progress.
According to the Census Data 2011, India is overpopulated with a population of 121,01,93,422 which means India today
is a powerhouse of talent of 121,01,93,422 plus. In order to convert the population from a challenge to an opportunity, the
area that requires immediate attention is education and training. 25% of Indian population is still illiterate and out of the
total population of 1.21 billion in India, 220 million children go to school. India’s GER (Gross Enrolment Ratio) is 12.4
percent. The GER in developed countries is between 50 percent to 70 percent. Our current education system selectively discards
talented students with inquisitiveness, ability to ask questions and dream to do something challenging, something better for
the society. This paper is an attempt to evaluate India’s efforts at reforming educational sector, analyses the growth of education
in India during last two decades and suggests ways to ensure that education remains both affordable and accessible to all.
Key words: Achievements, Education, Literacy, Training.

Introduction
Education starts with us when we start our life journey. From the very first moment, a baby
steps into this world, she/he starts to learn. She/he learns to cry, to show any sort of discomfort, smiles
to show his/her happiness and also learns to identify his/her mother’s touch. This process continues
throughout his/her life because she/he learns something new every moment of his/her life. John Dewey
said: “Education is not preparation for life, education is life itself.”
Demographic Dividend
India is a Nation of young people - out of a population of above 1.2 billion, 0.672 billion people
are in theage-group of 15-64 years, which is usually treated as the “working age population”. It is predicted
that India will see a sharp decline in the dependency ratio over the next 30 years, which will constitute
a major demographic dividend for India. This large population should be considered as an invaluable
human resource and should be provided the necessary skills so as to empower them to lead a purposeful
life and contribute to our national economy.
Indian Education System
Until the late 1970s, school education had been on the State List of the Indian Constitution,
which meant that States had the final say in the management of their respective education systems.
However, in 1976, education was transferred to the Concurrent list through a constitutional amendment,
the objective being to promote meaningful educational partnerships between the Central and State
Governments. Today, the Central Government makes the national policies and the States have to follow
it. The National Policy on Education (NPE) was formulated in 1968 and the National Policy Resolution
of 1986, which was later, updated in 1992, where specific responsibilities for organizing, implementing
and financing its proposals were assigned. About 80% of the funding for higher education is provided
by the states and 20% by the center through various bodies such as the University Grants Commission
(UGC).The Central Advisory Board of Education (CABE) maintains the coordination between the
central and state governments.
190 Education Reforms in India

Present Education in India

Education has been identified as a critical input for economic development and for human
resource development. India’s education system is divided into different levels such as pre-primary level,
primary level, elementary education, secondary education, undergraduate level and postgraduate level.
Achievements in Education Sector
By the end of the 10th Plan period, National Literacy Mission (NLM) which was launched in
1988, covering the age group 15-35 years), had made 127.45million persons literate, of which, 60%
were females, 23% belonged to Scheduled Castes (SCs) and 12% to Scheduled Tribes (STs). It led to an
increase of 12.63% in literacy - the highest increase in any decade. Female literacy increased by 14.38%,
SC literacy by 17.28% and ST literacy by 17.50%.In a special lecture organized by National Literacy
Mission Authority (NLMA), Nobel Laureate Prof. Amartya Sen, emphasized the importance of literacy
citing examples of developed countries. He said that the lack of proper education is the root cause of
many problems in India and hailed the Right to Education as a very important step.
Eradication of Illiteracy
Post-independence India inherited a system of education which was characterized by large scale
inter and intra-regional imbalances. The country’s literacy rate in 1947 was only 14 per cent and female
literacy was very badly low at 8 per cent. As per recently concluded census 2011, Literacy rate in India
has significantly increased from 18.33% in the year 1951 to 74.04% in the year 2011 (Table No.1). More
women literates added in the recent decade compared to men literates, so gap between men literates and
women literates also reduced from 24.82 in 1991 to 16.68 in the year 2011(Table No.1).
Table no.1: Literacy rate in india

Census Year Persons Male Female Gender Gap

1951 18.33 27.16 8.86 18.30
1961 28.30 40.40 15.35 25.05
1971 34.45 45.96 21.97 23.98
1981 43.57 56.38 29.76 26.62
1991 52.21 64.13 39.29 24.82
2001 64.83 75.26 53.67 21.59
2011 74.04 82.14 65.46 16.68
Source: Census of India - 1951 to 2011.

From the table No.2, it was evident that the number of literates increased by 117% , Male 94%
and Female 158% during the reforming period from 1991 to 2011. Effective Literacy rate has been
increased by 21.83 points, Male 18.01points and 26.17 points (Table No.3) in 2011 when compared to
1991. Eradication of illiteracy has been one of the major national concerns of the Government of India
since Independence. A number of significant programmes have been taken up since Independence to
eradicate illiteracy.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Education Reforms in India 191

Table No.2: Literates In India (Reform Period)

1991 2001 2011 Difference % Growth
Population 84,63,02,688 1,02,87,37,436 1,21,01,93,422 36,38,90,734 43
Persons 35,84,02,626 56,07,53,179 77,84,54,120 42,00,51,494 117
Male 228,983,134 33,65,71,822 44,42,03,762 21,52,20,628 94
Female 129,419,492 22,41,81,357 33,42,50,358 20,48,30,866 158
Year 1991 is taken as base year for calculation of Difference and percentage of growth
Source: Census of India - 1991, 2001 and 2011.
Table No.3: Effective Literacy Rate (%)(Reform Period)
1991 2001 2011 Increase /Decrease
Persons 52.21 64.83 74.04 +21.83
Male 64.13 75.26 82.14 +18.01
+26.17
Female 39.29 53.67 65.46

Year 1991 is taken as base year for calculation of Points of Increase/Decrease.

Source: Census of India — 1991, 2001 and 2011.

From the Table No.4, it was evident that number of Literates has been increased from 358.40 Million
in 1991 to 778.45 (more than doubled) Million in 2011 and the number of illiterates reduced from 328.16
Million to 272.95 Million (nearly 17%) during the same period.
Table No.4: Number of Literates and Illiterates (Reform Period)

Year Population Illiterates Literates

(in Millions)

1991 846.30 328.16 358.40

2001 1028.73 304.14 560.75
2011 1210.19 272.95 778.45
Population is taken Aged 7 and above.
Source: Census of India — 1991, 2001 and 2011.
Universal Elementary (Primary) Education
India is committed to the goal of universal elementary education for all children. This goal is part
of the Education for All (EFA) goals adopted at the World Education Forum, Dakar in April 2000. The
EFA goals include, inter alia achieving universal elementary education by the year 2015, ensuring equitable
access to appropriate learning and life skill programmes for young people and adults, achieving 80%
improvement in adult literacy by 2015, achieving gender equality in education by 2015 and improving
all aspects of quality of education. The Indian government lays emphasis to primary education up to the
age of fourteen years (referred to as Elementary Education in India.) 80% of all recognized schools at the
Elementary Stage are government run or supported.

ISBN: 978-93-5300-292-3 Technical Session - II

192 Education Reforms in India

The Sarva Shiksha Abhiyan (SSA)

The SarvaShikshaAbhiyan (SSA) is intended for the enlargement and growth mainly in the
primary education. The aim of this flagship program was to attain universalization of primary schooling
at an acceptable level by 2010. SSA is being implemented in partnership with State Governments to cover
the entire country and address the needs of 192 million children in 1.2 million habitations. The present
rules of SSA have been modified recently by putting into practice the “Right of Children to free and
Compulsory Education” which has been enforced from April 1, 2010 onwards.
Table No.5 Progress Overview Under SSA
99% of the rural population has a primary school within 1 km. 366559 new
Access
schools opened till September, 2010.
GER increased in 6-14 age groups to 114.37 in 2008-09 from 96.3 in 2001-02
Gross Enrolment Ratio at the primary level and to 76.23 in 2008-09 from 60.2 in 2001-02 at the upper
primary level.
Improved from 0.83 in 2001-02 to 1.00 in 2008-09 at primary level &from 0.77
Gender Parity Index (GPI)
to 0.96 at upper primary level.
Dropout Rate at the Reduced by 14.10% to 24.93% in 2008-09 from 39.03% in 2001-02. Dropout
primary level rate for girls declined by 16.98% points during same period.
In 2008-09 the PTR at the national level was 44:1 for primary and 34:1 for
Pupil-Teacher Ratio
upper primary level. 11.13 lakh teachers recruited by December, 2010.
Source: Annual Report 2010-11, Department of School Education & Literacy and Department of Higher Education,
Ministry of Human Resource Development, Government of India.
As for the year 2011-2012, the Union budget ministry has put forward to apportion an amount
of Rs 21,000 crore, which is almost 40% higher than the last year for SSA.
Other Schemes for Primary Education
Scheme of Infrastructure Development in Minority Institutions (DMI) has been operationalized
to augment infrastructure in private aided/unaided minority schools/ institutions in order to enhance
quality of education to minority children. Programme for Nutritional Support to Primary Education
(NP-NSPE) commonly known as the Mid-Day Meal Scheme (MDMS) was launched as a Centrally
Sponsored Scheme on 15th August 1995 covering all children studying in Classes I-VHI. The District
Education Revitalization Programme (DERP) was launched in 1994 with an aim to universalize primary
education in India by reforming and vitalizing the existing primary education system. This primary
education scheme has also shown a high Gross Enrollment Ratio of 93-95% for the last three years in
some states. Significant improvement in staffing and enrollment of girls has also been made as a part of
this scheme.
Adult and Women Education
SAAKSHAR BHARAT was launched in 8th September, 2009 aiming to accelerate Adult
Education, especially for women in the age group of 15 years and above. It targets to raise literacy rate to
80% by 2012 and reduce gender gap to half by the same period. National Programme for Education of
Girls at Elementary Level (NPEGEL) is implemented in educationally backward blocks (EBB).Kasturba
Gandhi Balika Vidyalaya (KGBV) provides for setting up residential upper primary schools for girls
from SC, ST, OBC and Muslim communities. The Mahila Samakhya scheme was started in 1989 to
translate the goals enshrined in the NPE into a concrete programme for the education and empowerment
of women in rural areas particularly those from socially and economically marginalized groups. Scheme

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Education Reforms in India 193

for Providing Quality Education in Madras (SPQEM) seeks to bring about qualitative improvement
in Madaras as to enable Muslim children attains standards of the national education system in formal
education subjects. There has been a phenomenal growth in enrolment of women students in higher
education in the country. The share of girl’s enrolment which was less than 10% of the total enrolment
on the eve of independence has been increased to 41.60% in the beginning of the academic year 2010-11.
National Policy on Education, 1986 (as modified in 1992) lays special emphasis on education
of Persons with Disability. 29.72 lakh children with special needs have been identified by the household
surveys 90% of them have been covered through various strategies. The Persons with Disabilities Act
1995 indicates that differently-able persons should have access to education at all levels.
Secondary Education
Secondary education covers children with age of 14-18 years. One of the feature of India’s
secondary school system is its emphasis on profession based vocational training to help students attain
skills for finding a vocation of his/her choosing.
Rashtriya Madhyamik Shiksha Abhiyan (RMSA) launched in March, 2009 is the flagship
programme in secondary education for universalizing access to secondary education and improving
its quality, while ensuring equity. The Information and Communication Technology (ICT) in Schools
Scheme was launched in December, 2004 to provide opportunities to build their capacity on ICT skills.A
Centrally Sponsored Scheme called “Incentive to Girls for Secondary Education” was launched in 2008-09.
The Centrally Sponsored Scheme of Vocationalisation of Secondary Education provides for diversification
of educational opportunities so as to enhance individual employability, reduce the mismatch between
demand and supply of skilled manpower and provides an alternative for those pursuing higher education.
The scheme of Kendriya Vidyalaya Sangathan (KVS)was approved by Government of India in November
1962 to provide uninterrupted education to the wardsof the transferable Central Government employees.
Residential Navodayaschools were setup with an aim of providing excellence coupled with equity and
social justice. The Central Board of Secondary Education (CBSE) is an autonomous body working under
the aegis of the Ministry of 1-11RD. There are 11500 schools affiliated with CBSE as on 31.12.2010
which include KVs, Government, Independent and JNV schools located in India and 24 other countries
of the world.
National Institute of Open Schooling (NIOS) was initiated as a project in 1979 under the
Central Board of Secondary Education. It has approximately 1.6 million Learners on roll emerged as the
largest Open Schooling organization in the world. 14 lakh students are enrolled at the secondary and
higher secondary level through open and distance learning. At higher education level, Indira Gandhi
National Open University (IGNOU) co-ordinates distance learning. The Distance Education Council
(DEC), an authority of IGNOU is co-coordinating 13 State Open Universities and 119 institutions
of correspondence courses in conventional universities. The National Council of Educational Research
and Training (NCERT) is an apex resource organization to assist and advise the Central and the State
Governments on academic matters related to school education.
Higher Education
India’s higher education system is the third largest in the world, after China and the United States.
The main governing body at the tertiary level is the University Grants Commission (UGC), which enforces
its standards, advises the government, and helps coordinate between the center and the state. The other
important policy initiatives in higher education are programmes for general development of universities
and colleges; special grants for the construction of hostels for women; scholarships to students, scheme

ISBN: 978-93-5300-292-3 Technical Session - II

194 Education Reforms in India

to provide interest subsidy on educational loans for professional courses to ensure that nobody is denied
professional education because he or she is poor and making interventions to attract and retain talent in
the teaching profession in the higher and technical education.
Table No.6: List of University Level Educational Institutions (As On 31.12.2010)

Central Universities 42
Institutions Deemed to be Universities 130
State Universities 261
Private Universities 73
Institutions of National importance 33
Institutions Established under State Legislature Acts 5
Total Number of institutions 544
Number of Colleges 31,324
Women Colleges 3432
Faculty Strength in Universities (at the beginning of the
academic year 2010-11) (in Universities 1 Lakh (14%) 6.99 Lakhs
and in Colleges 5.99 Lakhs (86%)
Source: Annual Report 2010-11, Department of School Education & Literacy and Department of Higher
Education, Ministry of Human Resource Development, Government of India
As per Report of the Higher education in India, Issues related to Expansion, Inclusiveness, Quality
and Finance, the access to higher education measured in term of gross enrolment ratio increased from
0.7% in 1950/51 to 1.4% in 1960-61. By 2006-07 the GER increased to 12 percent. By 2012, (the end
of 11th plan objective) is to increase it to 15%.
Distance Education System
Realizing the important role of education in the overall development of individual as well as the
nation, the Ministry has taken several initiatives to promote distance education. As on date(2009-10)
there are more than 200 distance education institutions in the dual mode universities and institutions
which are either offering programmes through distance mode or are in the process of seeking approval of
Distance Education Council to start offering programmes through distance mode.
Technical Education
Technical Education plays a vital role in human resource development of the country by creating
skilled manpower, enhancing industrial productivity and improving the quality of life. All India Council
for Technical Education (AICTE) was set-up in November 1945 as a national level Apex Advisory Body
to conduct survey on the facilities on technical education. In 2010-11 there were 79 centrally funded
Institutions in the country which are as follows:
Table No. 7: List Of Institutes Of Technical& Science Education (As On 31.12.2010)

Indian Institute of Technology (IITs) 15

Indian Institute of Management (IIMs) 11

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Education Reforms in India 195

Indian Institute of Science (IISc.) 1

Indian Institutes of Science Education & Research (IISERs) 5
National Institutes of Technology (NITs) 30
Indian Institutes of Information Technology (IIITs) 4
National Institutes of Technical Teachers Training & Research (NITTTRs) 4
Others 9
Total 79
Source: Annual Report 2010-11, Department of School Education & Literacy and Department of Higher Education,
Ministry of Human Resource Development, Government of India
Several new measures have been taken to implement the Government vision of providing
increased access with equity and excellence. Eight (8) new IITs, five (5) new IlMs and ten (10) new NITs
have been set up and are functional. 20 new IIITs will be set up in Private Public Partnership (PPP)
mode. Technical Education Quality Improvement Programme envisages on focus in strengthening the
Institutions to produce high quality engineers for better employability, establish centres of excellence for
focused applicable research, Training of faculty for effective teaching, enhancing Institutional; and system
Management effectiveness.
Financial Assistance
To provide financial assistance to meritorious students from weaker section for pursuing higher
studies and professional courses, the Ministry has started Central Sector Scholarship Scheme for College
and University Students. The Ministry has also launched a new Central Scheme to provide full interest
subsidy during the period of moratorium on educational loans for students belonging to economically
weaker section. Central Government has also approved an outlay of Rs.2,31,233 crore for implementation
of the combined RTE-SSA programme for the five year period of 2010-11 to 2014-15. The outlay for
XI Plan for education is more than 9 times higher than X Plan which shows the commitment of the
Government to provide education to all.
The Unfinished Tasks
Literacy Level
According to the Census Data 2011, India is heavily overpopulated with a population of
121,01,93,422 which means India today is a powerhouse of talent of 121,01,93,422 plus. But this
tremendous powerhouse can be compared to rocks, which need to be polished to be transformed
into diamonds. At the time of Independence, India’s literacy rate stood at 14% and in 1991 it was
52.21%According to Census 2001, it was 64.8% and presently (2011) it is 74.04% (Table No.1). So,
apparently we have come a long way. But when we compare this to China’s literacy rate of 94%, we surely
have a long road ahead. If we see the current scenario there is a rampant corruption, crime, unlawful
activities, and exploitation taking a toll on India.
Elementary / Primary Education
Every year the Union Budget makes an attempt as to broaden the education standards in the (1
country. As per the current Union Budget (2010-11) allocation, an amount of Rs.52,057 Crores is set
aside for the education. This is a huge amount, even though a disappointment struck when the increment
hike is significantly less than anticipated for the execution of acts like Right to Education. Due to shortage
of resources and lack of political will, this system suffers from massive gaps including high pupil to teacher

ISBN: 978-93-5300-292-3 Technical Session - II

196 Education Reforms in India

ratios, shortage of infrastructure and poor levels of teacher training. Enrollment has been enhanced, but
the levels of quality remain low.
In spite of the claims of fair work done by the states with regard to improving access and enrolment
in elementary education, any progress made has been overshadowed by high dropout and wastage rates
which, in turn, were the result of shortfalls in other related elements of elementary education. Unless
something is done to drastically reduce drop-out rates, by the year 2016, there would be approximately
500 million people in the country with less than five years of schooling, and another 300 million that
will not have completed high school. In other words, about two-thirds of the population will lack the
minimum level of education needed to keep pace with and take advantage of the social changes occurring
within the country and worldwide. The target before India at this stage is not only to eradicate illiteracy
and bring every child within the fold of school education but also to ensure good quality in school
education.
To improve the quality of education by reducing the class size would require a further 20 per
cent increase in the number of classrooms. Together, this will necessitate increasing the total number of
classrooms by 65 per cent within 20 years. An enormous increase in the number of teachers will also be
required to achieve the alternative scenario, i.e., eliminating primary school drop outs and reducing the
teacher-pupil ratio from the present high level of 1:42 down to around 1:20, which is the UMI reference
level. Together, this will require an additional three million primary school teachers, more than twice the
number currently employed. Similar increases will be required at middle and secondary school levels
Education in Private Sector
According to current estimates, 80% of all schools are government schools making the government
the major provider of education. However, because of poor quality of public education, 27% of Indian
children are privately educated. The pupil teacher ratios are much better in private schools (1:31 to 1:37
for government schools) and more teachers in private schools are female.
Secondary Education
We will need to expand the supply of secondary school teachers very significantly, invest large
resources in school buildings and in the preparation and distribution of education materials. Great
innovation is needed in thinking about how all this is to be done, and how the large resources needed will
be generated and invested efficiently and responsibly.
Higher Education
The opportunities for higher education, in terms of the number of places in universities, are
simply not adequate, in relation to our needs. The objectives of reform and change, in our higher
education system, must be expansion, excellence and inclusion. The higher education system needs a
massive expansion of opportunities, to around 1500 universities (currently only about 350) nationwide,
which would enable India to attain a gross enrolment ratio (GER) of at least 15 per cent, by 2015.
To generate quality, there is a need for reform of existing universities, to ensure frequent
curriculum revisions, introduction of the course credit system, enhancing reliance on internal assessment,
encouraging research and reforming the governance of institutions. Presently, accreditation is voluntary as
a result of which less than one-fifth of the colleges and less than one-third of all universities have obtained
accreditation. Mandatory accreditation in the higher education would enable the higher education system
in the country to become a part of the global quality assurance system. Legislation has been introduced

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Education Reforms in India 197

in Parliament (3rd May, 2010) to provide for mandatory accreditation and creation of an institutional
structure for the purpose.
Technical & Professional Education
The major challenges before the technical education system are one of access, equity and inclusion.
Another area of concern is the inadequate availability of faculty both in terms of quality and in numbers.
Promotion of R&D efforts, improvement in employability of trained graduates and postgraduates coming
out of the technical institutes, are some of the areas where efforts are required.
The professional education streams are plagued by problems similar to the higher education
system. Rapid reforms are still required in professional streams like the Legal, Management, Medical and
Engineering streams, etc.
Vocational Education And Training
In India, only 7% of the country’s labour force works in the organized sector and hence Vocational
Education and Training (VET) is an important element of the nation’s education initiative. There is an
urgent need to redefine the critical elements of imparting vocational education to make them flexible,
contemporary, relevant, inclusive and creative. Also the existing Industrial Training Institutes (ITIs) and
Industrial Training Centres (ITCs) are widely seen facing problems, such as poor quality trainers, lack
of flexibility and outdated infrastructure. The Government needs to take rapid steps, to strengthen the
structure of these institutes.
Women’s Education
Women have a much lower literacy rate than men. Far fewer girls are enrolled in the schools,
and many of them drop out. According to a 1998 report by U.S. Department of Commerce, the chief
barrier to female education in India are inadequate school facilities (such as sanitary facilities), shortage of
female teachers and gender bias in curriculum (majority of the female characters being depicted as weak
and helpless). A survey that was conducted in India showed results which support the fact that infant
mortality rate was inversely related to female literacy rate and educational level. The survey also suggests
a correlation between education and economic growth.
Rural Education
The government continued to view rural education as an agenda that could be relatively free from
bureaucratic backlog and general stagnation. However, in some cases lack of financing balanced the gains
made by rural education institutes of India.
Public Expenditure On Education In India
As a part of the tenth Five year Plan (2002-2007), the central government of India outlined
an expenditure of 65.6% of its total education budget of 438.25 billion (US$8.33 billion). According
to UNESCO, India has the lowest public expenditure on higher education per student in the world.
Although the country targeted towards devoting 6% share of the GDP towards the educational sector,
the performance has definitely fallen short of expectations.
Other Issues
One study found out that 25% of public sector teachers and 40% of public sector medical
workers were absent during the survey. Among teachers who were paid to teach, absence rates ranged
from 15% in Maharashtra to 30% in Bihar. Only 1 in nearly 3000 public school head teachers had ever
dismissed a teacher for repeated absence. A study on teachers by Kremer etc. found that ‘only about half

ISBN: 978-93-5300-292-3 Technical Session - II

198 Education Reforms in India

were teaching, during unannounced visits to a nationally representative sample of government primary
schools in India.’ A study of 188 government-run primary schools found that 59% of the schools had no
drinking water and 89% had no toilets. Modern education in India is often criticized for being based on
rote learning rather than problem solving.
Conclusion
All the positive steps taken till now are welcome. However, implementation of the initiatives is
a key to success. These are some points that the nation will have to consider upon. And the path ahead
isn’t that easy. Walls, windows, doors and teachers will not make a school, till we have hungry children
wanting to be in the fields and factories, to earn their meals. The Vision and Mission of Education for
all will have to inculcate and imbibe in one and all, leaders and followers that for every child born poor
and needy, there will have to be a well-drawn plan, to ensure that s/he doesn’t remain so — for if we
fail in providing the basic needs of food and shelter to a child, she/he will never see the light of the day,
through education — at least. A healthy mind comes in a healthy body. The nation should strive towards
total health of children, education will follow. Education for the masses is a massive task. It would need a
single minded focus of the State, to implement this programme in a country, which is the 7th largest in
the world in terms of size and the 2nd most populated of all. Reform in education is a cultural, political,
financial and administrative challenge. The children of today are to be the citizens of tomorrow. We as a
citizen of today will able to provide a slate to every child and a pen to write his/her own future. And we
will achieve this at least in the coming decade.
Reference
yy 50 Years of Education, (1997), viewed on 16th January 2012, http://www.education.nic.in/cd5Oyears/y/3T/9U/3T9U0101.
htm
yy Adult and Youth Literacy, (2011), viewed on 17th January 2012, http://www.uis.unesco.org/FactSheets/Pages/default.aspx
yy Annual Reports, 2008-09, (2009) National Council of Educational Research and Training, Government of India.
yy Annual Reports, 2010-11, (2011) Department of School Education & Literacy and Department of Higher
yy Barro, Robert and Jong-Wha Lee, (2010), “A New Data Set of Educational Attainment in the World, 1950-2010.” NBER Working
Paper No. 15902.
yy Census of India (2011), viewed on 15th January 2012, http://wwvv.censusindia.gov.in/2011-prov results/prov_results_paperl
yy Dept. of Higher Education, (2011), viewed on 16th January 2012, http://education.nic.in/secondary.htm
yy Dept. of School Education and Literacy, (2011), viewed on 14th January 2012, http://education.nic.in/Elementary/elementary
yy Education Expenditure (2010), viewed on 15th January 2012, http://www.indexmundi.com/world/education_expenditures
yy Education in India, (2012), viewed on 12th January 2012, www.en.wikipedia.org/wiki/Education_in_India.
yy Economic Survey, 2010-11 (2011), Ministry of Finance, Government of India, New Delhi.
yy National Knowledge Commission Report 2006-10, (2010), Government of India, New Delhi.
yy Higher Education in India, (2003), viewed on 12th January 2012, www.ugc.ac.in/pub/heindia.pd
yy Kothari, V.N. (1992), Issues in Human Capital Theory and Human Resource Development, Himalaya Publication, Mumbai
yy Outcome Budget, (2011), Dept. of Higher Education, viewed on 15th January 2012, http://education.nic.in/planbudget/
OutcomeBgt-2011-12-HE-E.pdf
yy UNDP, (2007), Human Development Report 2007-2008, New York.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Young Entrepreneurship in Economic Development Introduction
B. Ravi Kumar
Research Scholar, Acharya Nagarjuna University
Entrepreneurship is the process of starting a business, a startup company or other organization.
The entrepreneur develops a business plan, acquires the human and other required resources, and is fully
responsible for its success or failure. Entrepreneurship operates within an ecosystem as per the domain
of his business. Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage
of market opportunities by planning, organizing, and employing resources, often by innovating new
or improving existing products. Entrepreneurial activities differ substantially depending on the type of
organization and creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to
large-scale undertakings that create many jobs.
While Competition brings with it challenges, risks and failures, the young entrepreneurs are
not deterred by failures. In fact it is very important to experience some failure, as it broadens your
comfort zone and you realize that failure is not all that bad. You become a lot bolder in terms of taking
risks. An young entrepreneur will continuously enhance his skills in all areas, will keep looking for new
opportunities to provide better value to his customers and will do more than what is expected, providing
help out of the way. He will continuously expand his network by providing additional help, not only
through himself, but through his network as well. His relationships with the manufacturers, suppliers
and customers will be flexible with a view to provide convenience, and a higher value for their money
to them. As against a normal businessman who uses opportunities, entrepreneurs not only use existing
opportunities but create opportunities, through expanding in value chain, and/or generating new ideas,
to get better value.
Here are important roles an entrepreneur plays in the economic development of a country
1. Wealth Creation and Sharing: By establishing the business entity, entrepreneurs invest their own
resources and attract capital (in the form of debt, equity, etc.) from investors, lenders and the public.
This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing
businesses. This kind of pooled capital that results in wealth creation and distribution is one of the basic
imperatives and goals of economic development.
2. Create Jobs: Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The
simple translation is that when you become an entrepreneur, there is one less job seeker in the economy,
and then you provide employment for multiple other job seekers. This kind of job creation by new and
existing businesses is again is one of the basic goals of economic development. This is why the Govt. of
India has launched initiatives such as Startup India to promote and support new startups, and also others
like the Make in India initiative to attract foreign companies and their FDI into the Indian economy. All
this in turn creates a lot of job opportunities, and is helping in augmenting our standards to a global level.
3. Balanced Regional Development: Entrepreneurs setting up new businesses and industrial units help
with regional development by locating in less developed and backward areas. The growth of industries
and business in these areas leads to infrastructure improvements like better roads and rail links, airports,
stable electricity and water supply, schools, hospitals, shopping malls and other public and private services
that would not otherwise be available.
Every new business that locates in a less developed area will create both direct and indirect jobs,
helping lift regional economies in many different ways. The combined spending by all the new employees
200 Role of Young Entrepreneurship in Economic Development Introduction

of the new businesses and the supporting jobs in other businesses adds to the local and regional economic
output. Both central and state governments promote this kind of regional development by providing
registered MSME businesses various benefits and concessions.
4. GDP and Per Capita Income: India’s MSME sector, comprised of 36 million units that provide
employment for more than 80 million people, now accounts for over 37% of the country’s GDP. Each
new addition to these 36 million units makes use of even more resources like land, labor and capital to
develop products and services that add to the national income, national product and per capita income
of the country. This growth in GDP and per capita income is again one of the essential goals of economic
development.
5. Standard of Living: Increase in the standard of living of people in a community is yet another key goal
of economic development. Entrepreneurs again play a key role in increasing the standard of living in a
community. They do this not just by creating jobs, but also by developing and adopting innovations that
lead to improvements in the quality of life of their employees, customers, and other stakeholders in the
community. For example, automation that reduces production costs and enables faster production will
make a business unit more productive, while also providing its customers with the same goods at lower
prices.
6. Exports: Any growing business will eventually want to get started with exports to expand their business
to foreign markets. This is an important ingredient of economic development since it provides access
to bigger markets, and leads to currency inflows and access to the latest cutting-edge technologies and
processes being used in more developed foreign markets. Another key benefit is that this expansion that
leads to more stable business revenue during economic downturns in the local economy.
7. Community Development: Economic development doesn’t always translate into community
development. Community development requires infrastructure for education and training, healthcare,
and other public services. For example, you need highly educated and skilled workers in a community
to attract new businesses. If there are educational institutions, technical training schools and internship
opportunities, that will help build the pool of educated and skilled workers.
A good example of how this kind of community development can be promoted is Azim Hashim
Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting education through
the Azim Premji Foundation. This foundation works with more than 350,000 schools in eight states
across India.
So, there is a very important role for entrepreneurs to spark economic development by starting
new business, creating jobs, and contributing to improvement in various key goals such as GDP, exports,
standard of living, skills development and community development.
The Difference between Start Up and SME
The legal definition of a startup in India means an entity registered in India that has been in
existence for not more than seven years, and has an annual turnover not exceeding Rs. 25 crore in any
preceding financial year. The startup must also have been working towards innovation, development or
improvement of products or processes or services, or it is a scalable business model with a high potential
of employment generation or wealth creation.
Small and medium-sized enterprises (SMEs) are defined as small-scale units with an investment
up to Rs 1 crore in plant and machinery, provided it is not owned by or controlled by a subsidiary of any

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Young Entrepreneurship in Economic Development Introduction 201

other industrial undertaking. This latter condition ensures that larger corporate entities do not set up
subsidiaries to get the same benefits afforded to SMEs.
Ever since the onset of the financial crisis, the global economy has been struggling to revive itself
and achieve a healthy growth rate. The global growth rate for last year and this year are projected at 3.40%
and 3.80%.
But compared to this, India’s GDP continues to grow at a fast pace, outstripping major world
economies. According to IMF, India is projected to grow at 7.80% for this fiscal year. Source: Department
of Commerce, Govt. of India.
Without any dispute, SMEs are one of the key drivers behind this growth story. This sector,
comprising of manufacturing, infrastructure, service industry, food processing, packaging, chemicals, and
IT, has emerged as the most vibrant and dynamic engine of growth of Indian economy over the past few
decades.
These self-funded proprietary firms, private co-operatives, private self-help groups, Khadi, and
Village and Coir industries, not only provide huge employment opportunities but also ensure regional
balance by taking industrialization to rural and backward areas (about 20% of MSMEs operate out of
rural & backward areas – CII
To communicate the importance of the SME sector, I’m going to share with you some key SME
statistics, trends and reports. See for yourself what the numbers convey:
ŠŠ Number of SMEs in India: The number is estimated to be at 42.50 million, registered &
unregistered together. A staggering 95% of the total industrial units in the country.
ŠŠ SME & Employment opportunity: Employs about 106 million, 40% of India’s workforce. Next
only to the agricultural sector.
ŠŠ Products: produces more than 6000 products.
ŠŠ GDP Contribution: Currently around 6.11% of the manufacturing GDP and 24.63% of Service
sector GDP.
ŠŠ SME Output: 45% of the total Indian manufacturing output.
ŠŠ SME Exports: 40% of the total exports.
ŠŠ Bank Lending: Accounts for 16% of bank lending.
ŠŠ Fixed Assets: Current fixed assets at INR 1,471,912.94 crore.
ŠŠ SME Growth Rate: Has maintained an average growth rate of over 10%.
Factors that may predict entrepreneurial success include the following
Market
ŠŠ Business-to-business (B2B) model, not business-to-consumer (B2C)
ŠŠ High growth market
ŠŠ Target customer’s missed by others
Industry
ŠŠ Growing industry
ŠŠ High technology impact on the industry
ŠŠ Low capital intensity

ISBN: 978-93-5300-292-3 Technical Session - II

202 Role of Young Entrepreneurship in Economic Development Introduction

Team
ŠŠ Large, diverse venture team, not individual entrepreneurs
ŠŠ Employed full-time prior to new venture, as opposed to unemployed
ŠŠ Prior successful entrepreneurial experience
ŠŠ Full-time involvement in the new venture
ŠŠ Motivated by high profits, not independence
ŠŠ Number and diversity of individual’s social ties
Company
ŠŠ Written business plan
ŠŠ Activity focused on a single product or service
ŠŠ Competition based on a dimension other than price
ŠŠ Early, frequent and intense marketing
ŠŠ Tight financial controls
ŠŠ Start-up capital
Some of the Start Ups of A Young Entrepreneurs
Taxi for Sure
Started: 2011 Business: Aggregates car rentals and taxis Radhakrishna and Raghunandan
G, both IIM-Ahmedabad graduates, launched Taxiforsure in 2011 as an online platform through
which consumers can rent taxis. The company has partnered with around 25 cab operators
in Bangalore and around 15 in Delhi, including branded operators like Mega Cabs and Cell
Cabs. The company, which claims to have reached operational profitability in Bangalore, has
also done its own branding on about 550 cabs that are operated by small local operators. The past
couple of years has seen the launch of a number of online and mobile based taxi booking services.
The two cofounders expect their company to earn revenue of Rs 100 crore by fiscal 2015.
Red Bus
Phanindra Sama was 25 when he founded the pioneering venture together with his BITS Pilani
batchmates Charan Padmaraju and Sudhakar Pasupunuri. In June 2013, they sold red Bus to the Ibibo
Group for an estimated Rs 600-700 crore, the biggest overseas strategic acquisition of an Indian internet
asset. RedBus now sells over a million tickets a month, and the gross value of transactions on the site
last year was about Rs 600 crore, up from Rs 350 crore the year before. Given the operators’ wariness to
computerize, red Bus initially worked on the basis of seat quotas from operators, and returning unsold
seats within a defined time before the departure of the bus. Three and a half years later, they introduced
a bus ticketing software for the operators that could link to the redBus portal. To their utter surprise, it
was a phenomenal success!
Travel Triangle
It is a classic start-up story- two childhood buddies who graduate from the Indian Institute of
Technology and turn their backs on corporate careers to launch a venture of their own. TravelTriangle,
an online travel services company launched by Sankalp Agrawal and Sanchit Garg is clocking revenues
in crores.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Young Entrepreneurship in Economic Development Introduction 203

Both first generation entrepreneurs who quit plush postings at Adobe and Yahoo in the middle
of 2010, Agrawal and Garg took nearly a year to fine-tune their concept before launching their venture.
They started out in a garage in Noida with a business model that links customers with travel agents who
offer the best deals. These are value-added deals customized to specific needs of traveler. Each request by a
customer goes to at least three travel agents with operations in the area that is the client’s destination. The
agents compete among themselves to provide the best experience and price to the vacationer. Soon, they
roped in a third friend from school, Prabhat Gupta, who graduated from IIT Guwahati the same year, as
a core development member.
Snap deal
At 25, Wharton graduate Kunal Bahl quit his cushy Microsoft job based in Seattle and even
convinced his IIT Delhi alumni Rohit Bansal to take a leap of faith in 2007. Bahl originally launched
Snapdeal.com as a daily online deals site and was often touted as India’s answer to Groupon. The model
has, however, changed and is today one of India’s largest online marketplace.
The company boasts of 20 million members, 500+ product categories and 20000+ sellers. It is
backed by leading global investors such as eBay Inc, Intel Capital, Bessemer Venture Partners, Nexus
Venture Partners and IndoUS Venture Partners.
Knowlarity
Knowlarity, a cloud telephony company, was founded in 2009 by Ambarish Gupta and Pallav
Pandey. The two IIT-ians pooled in their experiences of working at global consulting firm McKinsey to
launch the new venture.They decided to address the need for technology for India’s small and medium
enterprises, creating a platform for voice application services hosted on the cloud or common servers.
Knowlarity hosts a number of telephony products that are sold through a common direct and channels
sales network. The company also plans to expand its sales force to reach a wider set of enterprise businesses
across India. As the start-up has grown, it has received multiple rounds of investment.
Bluegape
Till 2011, Ayush Varshney and co-founder Sahil Baghla, 23, were usual students at IIT Kanpur,
but then a thwarted wish to print a poster got them thinking about a potential business idea. So in August
the same year, they invested Rs 2 lakh to start Bluegape from their hostel rooms.Their venture began life
as a personalised poster company with a clientele limited to their campus. In the process, they pocketed
20% of the sale price as their profit. Convinced by their initial success, the duo decided to expand the
website to a national level in December 2011 by taking orders online. The business model was simple.
Anyone with a picture they had copyright to could send it across to Bluegape, mentioning the size of
the poster that they wanted. The portal would print and deliver it within 4-10 days. The company soon
started making coffee mugs, cushion covers, laptop skins and Tshirts. They also supplied merchandise to
various retailers across the country.
Flip kart
It has taken Sachin Bansal, 32, a mere six years to build Flipkart, the country’s best-known
online retail brand. The IIT-Delhi alumnus started off with college friend Binny Bansal in a small flat in
southeast Bangalore in 2007 with Rs 4 lakh. The two, who are not related to each other, had worked in
Amazon India for a few months before they launched Flipkart. Sachin, who leads the Bangalore-based
ecommerce venture as its CEO, has battled scepticism and regulatory constraints to build a company that
expects to post sales of $1 billion, or over Rs 6,200 crore, by 2015. Flipkart’s cash-on-delivery model has

ISBN: 978-93-5300-292-3 Technical Session - II

204 Role of Young Entrepreneurship in Economic Development Introduction

been copied by almost every other ecommerce company in the country and now accounts for a majority
of transactions across all online retail sites. Flipkart’s success has come not just from online retail, but
also from its focus on building technology services at the back end. It has set up a logistics arm that has
ensured quick deliveries to customers.
Report bee
Founders: Anantharaman Mani, Anjan T, Balaganesh S & Vinod Kumar (Alumni IIM-B) What
it does: It has revamped the report card into an interactive digital application. Teachers can track the
progress of a single student, see a class’ overall performance and compare classes on a single sheet.
Work with state: Report Bee is piloting in 64 government schools in Tamil Nadu. It is also
piloting in five Chennai Corporation schools. The startup has undertaken three data analysis projects for
Tamil Nadu Government Education Department.
Grey Orange Robotics
Tooling around with technology is a common pastime on campus but to turn a classroom project
into serious business is uncommon. That is exactly what Samay Kohli, 26, and Akash Gupta, 23, have
done. While still at the Birla Institute of Technology in Pilani, the two designed and built a robot that
waited at tables in the college cafeteria. Pushing the sci-fi button further, they programmed it to act as a
tour guide to guests during seminars and conferences in the college. Drawing on the learning from those
halcyon days, Kohli and Gupta have started a robot making company that is helping some of India’s
largest online retailers automate their warehouses. Grey Orange Robotics, set up in 2009, is a first -of-its-
kind venture for the Indian logistics industry. It builds robots that can move shelves stacked with various
products to a floor assistant who then scans a bar code to confirm the right items. The robot in turn moves
the chosen products to the shipping bay where workers seal the packages for final transport.
Exotel
Shivakumar Ganesan of BITS Pilani created a cloud-based mobile solution when call volume went
through the roof at his first venture, a consumer-to-consumer marketplace, Roopit. He soon realised that
other entrepreneurs needed a solution like this and so founded Exotel with Ishwar Sridharan, Siddharth
Ramesh and Vijay Sharma in February 2010 and launched the solution in June 2011. Exotel provides a
single mobile number that can be linked to a number of mobile phones. A company’s employees can log
into the system and calls get routed to those who are logged in. The system includes features for sales,
marketing and customer support teams making it an integrated solution, especially for small and medium
enterprises (SMEs). The product is aimed at SMEs that do not want to invest in servers and call centers
to handle calls.
Financial Institutions Who Support Young Entrepreneurs
ŠŠ IFCI
ŠŠ ICICI
ŠŠ IDBI
ŠŠ LIC
ŠŠ UTI
ŠŠ SIDBI
ŠŠ NSIC

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Young Entrepreneurship in Economic Development Introduction 205

Comprehending the sector’s contribution towards employment numbers, towards GDP,

innovation and entrepreneurship, the Government of India has launched numerous initiatives to further
the cause of SMEs. Mentioned below, in a table form, are the performances of some of the key schemes:
Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).
ŠŠ Objective: To make available collateral free credit facility to new and existing Micro & small
businesses subject to a limit of Rs.100 lakh per unit.
ŠŠ Performance during 2015-16 (up to 31/12/2015): 350056 Application approved with guarantee
coverage of Rs.14, 673 crore.
ŠŠ Performance since inception: 2160975 Application approved with coverage of Rs.103, 864 crore.
Export Promotion of Capital Goods (EPCG).
Objective: To allow import of capital goods on zero duty subject to meeting export obligations.
Performance during 2015-16: Number of authorization 22544 with FOB value of Rs.78,860
crore and duty savings of Rs.12619 crore.
ŠŠ Performance during 2016-17 (up to October 2016): Number of authorization 13,585 with FOB
value of Rs.50,359 crore and duty savings of Rs.8,668 crore.
Credit Linked Capital Subsidy Scheme (CLCSS).
ŠŠ Objective: To facilitate technology up-gradation. To enable beneficiary enterprises to avail
institutional credit towards the purchase of machinery and technologies.
ŠŠ Performance during 2015-16 (up to 31/12/2015): 3,142 benefited units with an expenditure of
Rs.203.76 crore.
ŠŠ Performance since inception: 22,380 benefited units with an expenditure of Rs. 1349.63 crore.
Lean Manufacturing (National Manufacturing Competitiveness Programme).
ŠŠ Objective: To make accessible the use of various Lean Manufacturing techniques to SMEs and
thus improve their manufacturing competitiveness.
ŠŠ Performance during 2015-16 (up to 31/12/2015): Benefits to 670 units with an expenditure of
Rs.11.26 crore.
ŠŠ Performance since inception: Benefits to 3041 units with an expenditure of Rs.45.26 crore.
Intellectual Property Rights.
ŠŠ Objective: To enhance competitiveness through increased awareness of IPR.
ŠŠ Performance during 2015-16 (up to 31/12/2015): Awareness programs held-26, Workshops-05,
and IPR Facilitation Centre-03. Expenditure Rs.1.73 crore.
ŠŠ Performance since inception: Awareness programs held-308, Workshops-95, and IPR Facilitation
Centre-31. Expenditure Rs.13.69 crore.
Marketing Development Assistance (MDA) Scheme.
ŠŠ Objective: To help & encourage SMEs to tap & develop overseas market.
ŠŠ Performance during 2015-16 (up to 31/12/2015): Units participated 233. Expenditure
Rs.4.77crore.
ŠŠ Performance since inception: Units participated 1476. Expenditure Rs.28.76 crore.
Source: MSME at a glance.

ISBN: 978-93-5300-292-3 Technical Session - II

206 Role of Young Entrepreneurship in Economic Development Introduction

Future Trends:
The future outlook looks very bullish for Indian SMEs, which are far more optimistic than their
Asian counterparts in China, Japan and other dynamic and large economies. Consider what this survey
result from American Express Global SME Pulse 2017 has to convey:
71% of the SME respondents hold an optimistic view about their domestic economy, followed
by Japan with 62% and Japan with 54%. IBEF.
The year 2017 has all the makings of an interesting year with GST following close on the heels
of demonetisation. Those who have survived the effects of demonetisation are more likely to see sunnier
days ahead.
The implementation of GST is generally expected to bring good tidings to this sector. Some key
points in favour of SMEs are:
ŠŠ Market Base: Set to grow as interstate sales complexities are a thing of the past. Since there is no
longer any tax burden on interstate sales, big corporate and manufacturers can procure materials
& components from small players from across any state borders.
ŠŠ Increased Competitiveness: Low-cost imports are no longer a cause for worry since tax levied on
imports goods and local manufacturers will be the same.
ŠŠ Freight Cost: Expected to come down by 1 to 2%, thus bringing down the cost of raw material
and finished products.
ŠŠ Cost of Raw Materials: Expected to come down with the disappearance of 2% CST on interstate
sales.
ŠŠ Sales & Service: Treatment of sales & services will be the same under GST means no additional
tax burden on SMEs with a business model of sales and service.
ŠŠ Transparency and Ease of Doing Business: The new indirect tax regime replaces multiple tax
rules. Physical interface of bureaucracy expected to be nonexistent or minimal since registration,
tax payment, input tax credit & tax liability adjustment, tax returns, and refunds will all happen
online electronically.
The same American Express Global SME Pulse 2017 was found stating that 37% of Indian SMEs
considered flexible lending and repayment and 49% high-interest rates as important factors affecting
business. Addressing these pain points will definitely make the road ahead much smoother.
With the Indian economy expected to touch $5 trillion by 2025, and with ground breaking
economic reforms kicking in, SMEs are expected and bound to play a much more important role. B2B
e-commerce, food processing, pharma, and homeland security and defense are the areas to watch out for.
Conclusion
The economic development is proven to be attained by the efforts of the young entrepreneurs in
Indian, the only thing to obtain from the Government and other financial institutions is support in the
terms of monetary as well as morally, the numbers and statistics are encouraging the young entrepreneurs
in contribution in economic development, by using all the available resources in terms of external and
internal factors any young entrepreneurs can reach his goal.

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 “The Role of young Entrepreneurs in Indian Economy Development”
Md Sohil Baba,
Assistant Professor in Malla Reddy Engineering College and Management Sciences , Hyderabad
Abstract: Entrepreneurship is an important engine of growth in the economy. Young entrepreneurship has an important
role to play in the development of Indian economy. Young entrepreneurship is now a days a major opportunity for the young
and dynamic people. Entrepreneurship is one of the key focus areas for the present generation to create a well balance eco-
system by bringing entrepreneurship at the center stage of both business and social growth, and to support the Entrepreneurship
promotion by identifying, discussing and evangelizing in this key focus area of education, healthcare, environment and the
likes.

Introduction:
Entrepreneurship gives young people an opportunity to work on their own skills and interests
and in the process, creating their own employment. Encouraging entrepreneurship in young people
is an important way of harnessing their enthusiasm, energy and ambition to contribute to economic
development. It is generally accepted that entrepreneurs “create jobs, increase innovation, raise competition
and are responsive to changing economic opportunities and trends. Young entrepreneurs can also act as
role models for their peers and, encourage others to follow their example.
According to the World Bank’s World Development Report 2013, around 600 million new jobs
will be required in the next 15 years to support a growing workforce. It is important to note that in
most emerging economies, 9 out of 10 jobs are created by the private sector, which is the foundation
of any thriving economy. In the coming years, developing countries must rebalance their economies
towards greater domestic consumption, import demand and higher value business activity and hence,
entrepreneurship is vital to the future of developing countries. As per reports shared by Accenture, Young
entrepreneurs are the driving force behind job creation in the G20 countries like India, Australia, China,
Indonesia, Japan, Saudi Arabia, United Kingdom, and United States amongst others.
Indeed, new Accenture research concludes that 10 million more youth jobs could be created in
G20 countries if existing barriers to entrepreneurship were lifted. It is through entrepreneurship we can
put new business ideas into practice. In doing so, it creates jobs that facilitate personal development and
economic growth. It’s a worthy pursuit to consider, but if it’s not for you, see how you can pass it your
next generation.
Objective:
(1) To generate new business and employment opportunities for the young Individuals. (2) To
analyze the challenges faced in growth of Young entrepreneurs in India. (3) To know the importance of
Young entrepreneurship in India.
Role of Young Entrepreneurs in India:
India today is growing with a vision of a “Developed Nation” striving its best with all the
economy, manufactures and products. But then dreaming of achieving great heights crossing every hurdle
also needs the most paramount vision of creating another 100 million employment for all the citizens of
India. The big question remains as to how those 100 million jobs to be created. Private, public, railway
sectors all scavenged wouldn’t come to make that myriad of jobs.
Hence entrepreneurship is one way out in finding the solution and reaching India’s destination.
Entrepreneurs and by that I mean people who are honed with a shimmer of talent and loads of confidence
and hard work to climb the ladder of success with a pose for the success magazines at a very young age.
208 “The Role of young Entrepreneurs in Indian Economy Development”

The normal belief of successful business magnates was broken off the monotony of 40 years, laying off
experience and wise grey hairs, the best examples internationally will be of Mark Zuckerberg, founder
of face book and Steve Jobs for Apple company. So let’s take vision for our Indian entrepreneurs who
maneuvered the skills of start-ups and made big in the business world questioning the very requirement
for the business tactics and grey hairs. So here are the few most successful entrepreneurs with their ideas
being the day starter for us.
Top 10 Young Entrepreneurs Of India:
(1). Shravan Kumaran and Sanjay Kumaran - Age 14 and 12 years Old Respectively At a tender
age of 14 and 12, most kids don’t even think of venturing into fields usually occupied but Shravan and
Sanjay thought out of box and became the youngest entrepreneurs. These techie kids are the founders
of Go Dimensions. (2) Farrhad Acidwala - Age 23,Farrhad bought a domain name at the age of 16 with
500 INR he had borrowed from his dad. He started a web community devoted to aviation and sold it at a
very good price when It became a hit. He is now CEO of his new company Rockstah Media. (3) Sameer
Gehlaut - Age 40, An IIT from Delhi, Sameer started India’s first online brokerage company in 2000,
Indiabulls Group. The combined net worth of his diversified company is $3.17 billion. (4) Arjun Rai -
Age 20, Arjun was highly inspired by TV shows like ‘The Oprah Show’ and ‘The Big Idea with Donny
Deutsch’. He started working towards his company in 2009. Today he is CEO of OdysseyAds.(5) Amir
Rao - Age 29, Amir is a studio director at Supergiant Games. He also a co-creator of role-playing action
video game Bastion which has won many awards and so far, as sold around 2.2 million copies. (6). Kavita
Shukla - Age 29, Kavita is the founder of FreshPaper which keeps the produces fresh for longer hours
than today’s conventional methods. She has patented her innovation. (7) Neil Mehta - Age 29, Neil is
the founder of Greenoaks Capital which is an investment firm. At present, he is managing around $600
million by investing in various industries ranging from insurance to e-commerce. (8)Pranav Yadav - Age
28, Pranav is the CEO of Neuro-Insight. It is a neuro-marketing firm that has designed and developed
brain mapping technology to understand and improve the quality of commercials on TV. Multi-talented
(9) Siddharth is an entrepreneur, artist, designer and public speaker. He dropped out of college to make
his name known in the world through his great work. He writes an e-magazine ‘Friendz’ and has written
books called ‘Law of Attraction’ and ‘Bhagvad Gita’. (10) Sandeep Maheshwari - Age 33, The founder
of image bazaar, Sandeep, is a leading entrepreneur in the field of collection of amazing images. His
company is the largest provider of images to various commercial companies. He also gives lectures in
renowned universities and colleges.
Need of young entrepreneurs in India:
“India needs more young entrepreneurs to create job opportunities” Nirmala Sitharaman, who
gave away certificates to the graduating students, said the young minds of this country must build business
houses and create more jobs. (PTI)India is looking for young entrepreneurs to build business houses and
create more jobs, Commerce and Industry Minister Nirmala Sitharaman said today, asking business
graduates to become fountainhead of commercially viable ideas. “India needs several entrepreneurs who
can become fountainheads of commercially viable ideas that will make a difference to the economy and
the country,” Sitharaman said while addressing the graduating students at the campus of Indian School of
Business (ISB) in Mohali, near here. “Develop your ideas. You should develop ideas … and that is what I
look up to graduates coming out of institutions like ISB,” she said. Sitharaman, who gave away certificates
to the graduating students, said the young minds of this country must build business houses and create
more jobs. “I would like the young minds of this country to build business houses and create more jobs,”
she said. She also touched upon the GST, saying with GST coming, India becoming one market and

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

“The Role of young Entrepreneurs in Indian Economy Development” 209

simplified taxation structure; it was also time for us to look into what exists in logistics. She said logistics
needs a lot of research. “Logistics is something on which India has to develop its own model … You have
logistics developed according to Western economies and their model, the Chinese have developed their
own but do we have an idea of how we are going to have efficient logistics in this country.
Role of Young Entrepreneurship in Economic Development
Entrepreneurship plays an influential role in the economic growth and standard of living of the
country. As a startup founder or small business owner, you may think that you are simply working hard to
build your own business and provide for yourself and your family. But you are actually doing a whole lot
more for your local community, state, region, and the country as a whole. Here are the top 7 important
roles an entrepreneur plays in the economic development of a country.
1.Wealth Creation and Sharing: By establishing the business entity, entrepreneurs invest their
own resources and attract capital (in the form of debt, equity, etc.) from investors, lenders and the public.
This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing
businesses. This kind of pooled capital that results in wealth creation and distribution is one of the basic
imperatives and goals of economic development. (2) Create Jobs: Entrepreneurs are by nature and definition
job creators, as opposed to job seekers. The simple translation is that when you become an entrepreneur,
there is one less job seeker in the economy, and then you provide employment for multiple other job seekers.
This kind of job creation by new and existing businesses is again is one of the basic goals of economic
development. This is why the Govt. of India has launched initiatives such as Startup India to promote and
support new startups, and also others like the Make in India initiative to attract foreign companies and
their FDI into the Indian economy. All this in turn creates a lot of job opportunities, and is helping in
augmenting our standards to a global level.(3) 3. Balanced Regional Development: Entrepreneurs setting
up new businesses and industrial units help with regional development by locating in less developed and
backward areas. The growth of industries and business in these areas leads to infrastructure improvements
like better roads and rail links, airports, stable electricity and water supply, schools, hospitals, shopping
malls and other public and private services that would not otherwise be available. Every new business that
locates in a less developed area will create both direct and indirect jobs, helping lift regional economies
in many different ways. The combined spending by all the new employees of the new businesses and the
supporting jobs in other businesses adds to the local and regional economic output. Both central and
state governments promote this kind of regional development by providing registered MSME businesses
various benefits and concessions. (4) GDP and Per Capita Income: India’s MSME sector, comprised of
36 million units that provide employment for more than 80 million people, now accounts for over 37%
of the country’s GDP. Each new addition to these 36 million units makes use of even more resources
like land, labor and capital to develop products and services that add to the national income, national
product and per capita income of the country. This growth in GDP and per capita income is again one of
the essential goals of economic development. (5) Standard of Living: Increase in the standard of living of
people in a community is yet another key goal of economic development. Entrepreneurs again play a key
role in increasing the standard of living in a community. They do this not just by creating jobs, but also by
developing and adopting innovations that lead to improvements in the quality of life of their employees,
customers, and other stakeholders in the community. For example, automation that reduces production
costs and enables faster production will make a business unit more productive, while also providing its
customers with the same goods at lower prices. (6) Exports: Any growing business will eventually want
to get started with exports to expand their business to foreign markets. This is an important ingredient
of economic development since it provides access to bigger markets, and leads to currency inflows and

ISBN: 978-93-5300-292-3 Technical Session - II

210 “The Role of young Entrepreneurs in Indian Economy Development”

access to the latest cutting-edge technologies and processes being used in more developed foreign markets.
Another key benefit is that this expansion that leads to more stable business revenue during economic
downturns in the local economy.(7) Community Development: Economic development doesn’t always
translate into community development. Community development requires infrastructure for education
and training, healthcare, and other public services. For example, you need highly educated and skilled
workers in a community to attract new businesses. If there are educational institutions, technical training
schools and internship opportunities, that will help build the pool of educated and skilled workers. A
good example of how this kind of community development can be promoted is Azim Hashim Premji,
Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting education through the Azim
Premji Foundation. This foundation works with more than 350,000 schools in eight states across India.
So, there is a very important role for entrepreneurs to spark economic development by starting new
businesses, creating jobs, and contributing to improvement in various key goals such as GDP, exports,
standard of living, skills development and community development.
Creating Young Role Models In Entrepreneurship:
“India’s biggest competitive advantage over countries likes the US, China and Japan is its young
population,” said Shashi Tharoor, Minister of State for Human Resource Development, few months
back over India’s youth power. A skilled and tech-enabled young India has its dynamic workforce
brimming with the spirits of entrepreneurship, ideas and innovation. This has leveraged the country
to a completely different ball-game where businesses and governments from the West are putting their
money on. One of them is Scotland-based social enterprise Power of Youth (POY), which along with the
Scottish Government, recently organised their fourth global summit in New Delhi. Focusing on bringing
together some of the best young minds in the world to boost entrepreneurship, the summit had around
30 enterprising individuals less than 35 years. Out of which, 18 were from India. POY had its previous
three summits in China in 2011, South Africa in 2012 and Scotland in 2013.
FOCUS ON INDIA: POY has their eyes set on BRICS nations – Brazil, Russia, India, China and South
Africa. When asked what makes India exciting for him and Scotland, Purvis says, “Out of BRICS, it is the
hardest by far for young people in India to start businesses because of the bureaucracy and the mindset.
So, we think that if can enable the change by encouraging entrepreneurial thinking here, we can make
it work anywhere else on the planet. This excites us to come to India.”Purvis like many other Indian
entrepreneurs believes that to make a difference in India, bureaucracy and traditional Indian mindset,
which pushes people towards being employees rather employers, needs to be changed.
“I hope that Indian Government will work with us and remove any red tape that might hold
anything back. Unfortunately, our biggest barrier to succeeding in India is the government, but it could
be our strongest ally,” adds Purvis. Among the 18 Indian entrepreneurs that attended the summit were Arif
Shafi Khanyari and a women entrepreneur Humeera Qayoom from Kashmir. The Scottish Government
supported both in their endeavours to set up small enterprises. Khanyari now runs Kashmir’s first jewellery
brand called D’ Ali’s while Humeera has ventured into his father’s carpet manufacturing business. “The
fund has been running for past many years and focuses on the South Asian countries like Pakistan,
Bangladesh and India,” says Yousaf.
Humeera’s story, on the other hand, is of getting mentoring and hand-holding. Always wanted to
be an entrepreneur, Humeera wanted to revive her father’s sinking carpet manufacturing business because
of conflicts in the state. However, she couldn’t find anyone supporting her dream because of orthodox
beliefs supporting government jobs. She had a stroke of luck finally when she applied for SKYE business

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

“The Role of young Entrepreneurs in Indian Economy Development” 211

plan competition and won that. The training and mentoring that she received from SKYE helped her
carpet business take off. SKYE had received £400,000 from the Scottish Government between 2010 and
2013 having 6000+ Kashmiri youth taking part. The project saw 170 new businesses coming out of it,
thereby creating jobs for 600 people.
“We have demonstrated our commitment in addressing the challenges faced by people in the
world by increasing our international development budget to £9 million. A small proportion of which has
supported Khanyari and Humeera to get their small business ideas off the ground,” Yousaf said earlier. He
added, “Today we extended that support, putting Khanyari and Humeera in touch with POY so that they
too could access invaluable advice and expertise from some of their world-leading young entrepreneurs.”
The Scottish Government also contributed £5,500 towards the summit that took place in Delhi. “In
POY, each of our members gets $30,000 in-kind consultancy from leading professional services company
Ernst & Young. POY is building similar relationships with some of the global banks like YES Bank and
companies like Oracle.
So, we are getting some of the biggest companies in the world to help these entrepreneurs succeed,”
says Purvis.
Young Entrepreneurs Celebrate `Startup India’ Action Plan:
The `Startup India’ action plan announced by Prime Minister Narendra Modi to encourage
startups with a incentive package including tax sops was met with enthusiasm by most first-generation
entrepreneurs, with some saying that it was a initiative long over-due and its success depended on how
the plan was implemented. “The tax sops and the fund for startups announced by the government will
help in funding a large number of startups throughout the country. It is a big boost for small like us who
could do with all help possible,” said Anoop Shukla from Eventweavers, an on-line company dealing in
e-cards. According to Sujai G Pillai, Founder & CEO, www.2tion.com, an online tutoring website, there
was just no help available for startups when he started out in 2006, and it was the first time that startups
were being celebrated.
“With the kind of financial support and handholding to first time entrepreneurs the action
plan seeks to provide, a large number of startups are sure to come up and the year 2016 will belong to
entrepreneurs,” Pillai, who also mentors other startups, said. Expressing similar sentiments, Manish Vij,
founder and CEO, SVG Media said that for the first time in 11 years of entrepreneurship, he had seen
the government support entrepreneurs. “The government’s action plan will inculcate the desire to become
entrepreneurs among our youth throughout the nation. It addresses a lot of pain points of entrepreneurs,”
he said. Premjit Prabhakaran and Preetha Premjit from Kerala-based Indian Homemade Toys are equally
jubilant with the ``recognition’’ for startups that the action plan provided. “The income tax exemption
on profits provided for the first three years is a very positive step. It is a visionary plan for startups that
the government has come up with which has recognized that startups are also important in creating
employment,” Prabhakaran said. Some entrepreneurs believe that startups have become successful in
India mainly because of the angel investors and the entrepreneurs themselves and it was natural for the
government to step in at this point. “Angel investors have played a vital role in giving a push to startups
and if all that the government has announced today is implemented, it would provide them a further
boost,” said Anuradha Acharya, CEO, Map My Genome.
Conclusion:
Young Entrepreneurship plays an important role for economic development in developing
countries such as that of India. It is evident from the study that Young entrepreneurs are ready to face

ISBN: 978-93-5300-292-3 Technical Session - II

212 “The Role of young Entrepreneurs in Indian Economy Development”

the challenges associated with setting up of business. Therefore, the Young entrepreneurs need to be
motivated to take up entrepreneurship as a career, with training and sustaining support systems providing
all necessary assistance
References:
yy EY Report 2014 on “Avoiding a lost generation: Ten key recommendations to support youth entrepreneurship across the G20”
yy Accenture Report 2014 on “The Promise of Digital Entrepreneurs: Creating 10 million youth jobs in the G20 countries”
yy https://successstory.com/lists/young-entrepreneurs-in-india
yy http://www.financialexpress.com
yy https://evoma.com/business-centre/7-roles-of-entrepreneurship-in-economic-development-of-a-country/
yy https://www.franchiseindia.com/entrepreneur/magazine/2013/december/Creating-Young-Role-Models-in-Entrepreneurship_15-1-2
yy http://www.thehindubusinessline.com/economy/young-entrepreneurs-celebrate-startup-india-action-plan/article8114456.ece

Technical Session - II UGC Sponsored National Seminar on Economy & Entrepreneurship

 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks
in Guntur District

*Dr. M. Aravind, ** Dr. T. Umamaheswara Rao

*Professor & Head, Department of Business Administration, Narasaraopeta Institute of Technology
Narasaraopet, Guntur, Andhra Pradesh,
**Registrar, K.L. University, Guntur, Andhra Pradesh

Nationalized banks have played a vital role in the development of industrial sector in the urban and rural areas of Guntur District. Commercial
banks are the main financial institutions financing the projects. More number of bank branches are established in the developed areas compared to
the undeveloped blocks. Indian bankers are still adverse in taking risks and do not lend without adequate tangible securities or guarantors. The
concept of looking into the merit of the women entrepreneurs and their business viability has not reached the banks yet; they do not fit into
the banks’ pre-contractual perceptions of entrepreneurs. The need of the hour is a nucleus center in each industrial area where all these services
are provided through it. Bank credit acts as a great support to women entrepreneurs in entering the new field of enterprise and also in facing
the problems related to finance.

Introduction
Nationalized banks have played a vital role in the development of the industrial sector in the
urban and rural areas of Guntur District . Since the district is basically village-oriented with a powerful
agrarian economy, it is but natural that the institutions set up to finance the rural needs have a
rural inclination. The commercial banks operating in the district have a wide network of branches
catering to the needs of the district.
Banks have granted loans to the industrial and commercial sectors, but did not trust the women
entrepreneurs who did not fit into the banks’ pre-contractual perceptions of entrepreneurs.
The fundamental aspects of a pre-contractual perception are taking for granted the social knowledge
and the attitude of stereotype. These aspects are constructed and reconstructed through social
interactions, and emerge in the relations of the loan applicant and the bank clerk. In order to be
trustworthy, the loan applicant, in this case, the entrepreneur, has to hold some hallmarks which fit
in with the clerk’s idea of an entrepreneur. These hallmarks are taken for granted. As bank finance
is an important aspect to support enterprises, the banks play an important role in supporting the
entrepreneurial activities; therefore the relation between the banks and the entrepreneurs is also
analyzed.
Without finance it is highly impossible to step in and settle in any business or industry. Honk
credit acts as a great support to women entrepreneurs in entering the new field of enterprise and
also in facing the problems related to finance.
Objectives of the Study
ŠŠ To study bank finance given to women entrepreneurs;
ŠŠ To study various loan facilities and schemes available to women entrepreneurs;
ŠŠ To analyze the repayment of loans and difficulties thereon;
ŠŠ To analyze the diversion of bank finance by women entrepreneurs; and
ŠŠ To offer suggestions for improvement in bank credit to women entrepreneurs.
214 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

Research Methodology
The study is based on both primary and secondary data. The required information is collected
through the following sources:
Primary Data
Informal Discussions
Togain deeper insights into the topics of investigation, the researcher has relied on informal
discussions with different bank officers, bank managers, women organizations, associations of women
entrepreneurs, district statistical officers, and Andhra Pradesh Industrial Development Corporation
(APIDC) and industrial estate area officers, regarding the problems faced by women entrepreneurs
in availing credit facilities.
Interview
The sample was initially drawn using a random sampling method. The researcher has collected
preliminary data from a number of entrepreneurs in Guntur District. An interview schedule was
prepared and administered on the sample respondents during the pre-testing; changes were incorporated
in the interview schedule to ensure the accuracy of data. The data was analyzed meticulously using
measurement tools.
The officials of the selected five banks—Andhra Bank (AB), State Bank of India (SBI), Central
Bank of India(CBI), Union Bank of India (UBI), and Industrial Development Bank of India(IDBI) were
interviewed and the banks’ ledgers were referred for the names, addresses and credit information of
the women beneficiaries.
Questionnaire
Two types of well-structured questionnaires were prepared by the researcher and provided to
women entrepreneurs and bank officials.
Secondary Data
For discussing the theoretical aspects of the topic under investigation, a number of books,
journals, periodicals and newspapers were used and acknowledged. A number of publications of SIDBI,
Southern Economist, Yojana, Pranjana, official records of banks, and annual reports banks were intensively
used.
Hypotheses of the Study
H1 - Women entrepreneurs who are less educated are prone to commit more defaults.
H2-Women entrepreneurs divert the bank credit and utilize it for unproductive purposes.
Scope of the Study
In Guntur district, 1,204 commercial bank branches are serving in different areas. The
study pertains to the select five banks which have a maximum number of branches compared to
other banks. Cooperative banks are not considered for the study. One of the major aims of the study
is to assess the development of women entrepreneurs with the help of bank credit in 14 blocks of
Guntur District.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 215

Finance Schemes Offered by the Selected Banks to Women Entrepreneurs

Financing schemes of banks and their capital assets will bring economic progress. Commercial
banks have started several schemes and programs for entrepreneurship development: The role played by
the selected five banks and their schemes for women entrepreneurs are stated below.
Central Bank of India
Andhra Bank (AB) was established by Sir Sorabji N Pochkhanawala on December 21, 1911.
Sir Pherozesha Mehta was the first Chairman of the bank. It was the first bank to introduce a special
ladies department in 1924, in its Amaravathi office, to cater to the needs of the w o m e n customers.
The bank has introduced its Credit Card—‘Central Card’.
It is based in Mumbai which is the financial capital of India and capital city of state of
Maharashtra. The bank has 4730 branches, 5319 ATM’s and 4 extension counters across 27 Indian states
and three Union Territories.
ABis the ‘lead bank’ of Guntur District with 61 branches. It has launched a special whom called
‘Cent Kalyani’ for women, which offers financial assistance to women entrepreneurs to then economic
pursuits in industry, agriculture and allied activities, and for business or profession. The bank, with a
network of branches spread across the country, welcomes women entrepreneurs to avail financial assistance
for pursuing vocations of their choice.
Credit facilities are available to women entrepreneurs for the following: small business;
professional and self-employment; retail trade; village and cottage/tiny industries; and Small Scale
Industries (SSIs). Credit is also available to the entrepreneurs who are engaged in manufacturing,
processing, preservation and services such as handloom, weaving, handicraft, food-processing, garment
making, etc., in village and small towns with a population not exceeding 50,000 by utilizing the
locally available resources/skills.
Andhra Bank
“Andhra Bank” was founded by the eminent freedom  fighter and a multifaceted genius,  Dr.
Bhogaraju Pattabhi Sitaramayya. The Bank was registered on 20th November 1923 and commenced
business on 28th November 1923 with a paid up capital of Rs 1 lakh and an authorized capital of Rs 10
lakhs.
The bank has implemented a number of innovative schemes in addition to various programs
sponsored by the Government and RBI. Laghu Udyami Credit Card Scheme, Mahabank Swarojgar
Credit Card Scheme (MSCC), and Maha-Entrepreneur are some of theschemes of the bank.
Andhra Bank is a medium-sized public sector bank (PSB) of India, with a network of 2803
branches, 4 extension counters, 38 satellite offices and 3636 automated teller machines (ATMs) as of 31
Mar 2016.
Maha-Entrepreneur
Under this scheme, the bank provides finance up to Rs. 25 lakh to SSIs without any collateralsecurity
and/or third party guarantee.
Mahabank Shakti
This scheme is specially introduced to offer financial assistance to women entrepreneurs for their
economic pursuits in industry, agriculture and allied activities, and business or profession. The bank with

ISBN: 978-93-5300-292-3 Technical Session - III

216 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

a network of 1,292 branches spread across the country has come up with this scheme which enables
women entrepreneurs an opportunity to avail financial assistance for pursuing vocation of their choice.
State Bank of India
The State Bank of India (SBI) was born with a new sense of social purpose aided by its 24,000offices
comprising of branches, sub-offices and three local head offices inherited from the Imperial Bank. The
concept of banking as mere repositories of the community’s savings and lenders to creditworthy parties
has soon given way to the concept of purposeful banking.
In Guntur, SBI has 131 branches which include four urban, 45 semi-urban and 39rural branches.
As per the bank’s model, the entrepreneurial development programs consist of one month intensive
training in behavioral sciences, management aspects and field training and during this period the entire
cost of boarding and lodging is borne by the bank. The bank recognized the importance of SSIs in
industrial development and started financing them ona larger-scale. A package of schemes and programs
was formulated by the bank to cater tothe specific needs of the SSIs.
StreetSarthe Package
This is a special scheme offering loans to women entrepreneurs. It gives concessions in promoter’s
margin and rate of interest. The scheme inspires women to start new ventures and there is no security for
loans up to Rs.5lakh for industrial units.
Entrepreneurs’ Scheme
SBI entrepreneurs’ scheme was introduced in 1967 for technically qualified entrepreneurs,
without insisting on any equity from them. The scheme is specially designed to tap the considerable
potential available in the country. It provides financial assistance ranging between 87.5% and 100% to
meet the project cost, pre-operative expenses and also the entrepreneurs’ sustenance needs during the
start-up period. Normally, a ceiling of Rs.10 lakhis operative, but in deserving cases this is relax able.
Union Bank of India
Union Bank of India (UBI) was inaugurated by Mahatma Gandhi. It has traversed the long road of
successful banking of 85 years. Union Bank does not have many branches, but they are enough to manage
and handle all the activities. The bank is committed to maintain its identity as the leading innovative
commercial bank alive to the changing needs of the society. Today, the bank is providing different value-
added services to the society. The bank has a special scheme of loan named, ‘Viklang Mahila Vikas Yojana’
for handicapped women for starting their own vocations. Physically handicapped women are identified
and after providing vocational training according to their aptitude, financial assistance of Rs. 25,000
isoffered to start the new vocation.
The bank is a public sector unit with 55.43% share capital. It is one of the pioneer public sector
banks, which launched Core Banking Solution in 2002. As of September 2016, more than 4214 branches/
extension counters of the bank are networked under core banking solution. In Guntur, UBI has 27
branches, which includes ten urban, 13 semi-urban and 22 rural branches.
The United Western Bank Ltd. (IDBI Bank)
A technology savvy and value-based bank, it commenced its business on March 8, 1937. Ason
September 30, 2016, the bank has a network of 1926 branches, spread over in different states. It is
a leading private sector bank in India. The performance of the bank is appreciated by all the leading
financial magazines by giving high ranking.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 217

The bank has set up a specialized SME Cell at strategic business centers to cater to the needs of
the small and medium enterprises. The bank has twenty urban, fifteen semi-urban and ten rural branches
working in Guntur District. It has no special scheme for women entrepreneurs.
An Analytical Study of Bank Finance to Women Entrepreneurs
Area-Wise Classification of Bank Branches in Guntur District
Narasaraopet is geographically the largest Mandalam in Guntur District, Andhra Pradesh.
Commercial banks operating in the district have a wide network of branches catering to the needs of the
district. Urban branches of the bank are located in Guntur city, semi-urban branches are at Villages and
rural branches are in villages. Area-wise classification of bank branches is shown in Table 1.
It is clear from Table 1 that,
ŠŠ AB, the lead bank of Guntur District, has the largest number of branches, i.e.,61 out of which 45
are rural, one is urban and 15 are semi-urban branches.
ŠŠ SBI has 31 branches, out of which 21 are rural, four are urban and six are semi-urban.
ŠŠ CBI has 35 branches which include 20 rural, 10 urban and five semi-urban branches.
ŠŠ UBI has 17 branches, out of which 12 are rural, two are urban, and three are semi-urban.
ŠŠ IDBI has live branches including two within two semi-urban and one rural brunch.
Table 1: Area-Wise Classification of Bank Branches in Guntur District
Number of Branches
S. No. Name of the Bank Total
Urban Semi-Uban Rural

1. AB 1 15 45 61 (42%)

2. SBI 4 6 21 31 (21%)

3. CBI 5 10 20 35 (23%)
4. UBI 2 3 12 17 (11%)
5. IDBI 2 2 1 5 (3%)

Total 14 36 99 149

Source: Credit Plan of Commercial Bank, 2015-16

The number of rural branches is double than that of urban and semi-urban branches.Nationalized
banks have done a good work in rural expansion of their branches. As ruralbranches mostly provide
agricultural loan, 50 branches of urban area are considered as therespondent branches.
Block-Wise Network of Commercial Banks in Guntur District
Guntur District has 14 blocks. The network of selected banks is working hard to developthe
industry. The block-wise network of commercial banks in Guntur is shown in Table 2.S. No. indicates
the selected five banks as per Table 1.

ISBN: 978-93-5300-292-3 Technical Session - III

218 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

Table 2: Block-Wise Network of Commercial Banks in Guntur District

Phirangipuram 

Pedanandipadu
Narasaraopet 
Chilakaluripet

Mangalagiri 
Sattenapalle

Vinukonda 
Amaravathi

Macherla 
Bapatla 

Repalle 
Guntur 

Ponnur
Tenali 

Total
S. No

1. 6 7 3 2 2 2 7 4 4 6 3 8 3 4 61
2. 7 3 2 1 1 1 3 2 3 1 2 2 1 2 31
3. 8 1 1 2 3 3 1 2 1 1 3 5 4 35
4. 2 4 1 3 3 1 1 2 17
5. 2 1 2 5
Total 25 11 6 9 7 9 11 8 8 12 8 11 12 12 149
Source: Central Bank of India — Credit Plan, 2015-16, pp. 21, 22, 25, 26

Total 149 branches of the selected five banks are established in Guntur District. Narasaraopet block
ranks first in number of branches i.e., 25, followed by 12 branches in Dondapadu Agraharam, Ravipadu
and Uppalapadu blocks. Eleven branches are situated in Ellamanda, Kondakavuru and Petlurivaripalem
blocks. Nine are in Tenali and Ponnur. Pedanandipadu , Sattenapalle and Repalle blocks have eight
branches each. Less number of branches are established in the undeveloped Phirangipuramblock. It is
observed that more number of branches arc established in developed areascompared to undeveloped areas.
Difficulties Encountered by Bank Managers While Sanctioning Loans
Ranking factors based on information pertaining to the different reasons for difficulties faced by
hunk managers while sanctioning loans to women entrepreneurs are presented in Table 3.
Table 3: Difficulties Encountered by Bank Managers While Sanctioning Loans

S. Ranking Factors Weighted Ranking

Difficulties Rank
No 1 2 3 4 5 6 Score (%)
1 Illiteracy 9 10 10 5 9 7 184 61.33 2
2 Unfamiliar about financial 10 8 10 7 6 9 242 80.66 1
aspect
3 Absence of self-confidence 9 10 7 6 8 10 176 58.66 4
4 Inadequate knowledge 5 9 10 10 7 9 168 56.00 6
5 Lack of entrepreneurial 9 8 7 8 10 8 182 60.66 3
skills
6 Lack of marketing talent 8 7 8 9 10 8 170 56.66 5
The analysis from Table 3 reveals that,
ŠŠ Unfamiliar about financial aspect ranked first with 80.66%;
ŠŠ Illiteracy ranked second with a weighted score of 61.33% followed by lack of entrepreneurial
skills with 60.66%;
ŠŠ Absence of self-confidence with 58.66% was ranked fourth.
Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 219

ŠŠ Lack of marketing talent ranked fifth with 56.66%; and

ŠŠ Inadequate knowledge ranked last with a weighted score of 56%.
Experiences of Repayment
The experience of bank managers about repayment of loan by the women entrepreneurs is shown
in Table 4. The normal tendency of the borrower is to delay the repayment of bankInnis II has been
examined earlier that the commercial banks in Guntur District suffer11 on defaults. The statistical details
about repayment and defaulters are presented in Table 4.
Table 4: Experience of Bank Managers about Repayment

AB SBI CBI UBI IDBI Total

Not Paid in Time

Not Paid in Time

Not Paid in Time

Not Paid in Time

Not Paid in Time

Not Paid in Time

Paid in Time

Paid in Time

Paid in Time

Paid in Time

Paid in Time

Paid in Time
Type

Engineering 1 3 2 2 2 8 2
Chemical 1 1
Trading 3 1 2 1 2 1 3 1 10 4
Food Products 3 1 2 2 3 1 10
Stationery 1 1 1 1 2 1
Ready Garment 1 2 3
Service 2 3 2 1 2 1 1 9 3
Animal 2 3 2 3
Fabrication 1 1
Coach Education 1 1 1 3
Health 1 1 2
Printing 1 2 1 1 5
&Stationery
Leather 1 1 1 1
Total 14 2 14 5 15 1 10 2 8 2 61 12
Percentage 87.5 12.50 73.68 26.32 93.75 6.25 75 25 80 20 83.56 16.43

A glance at the bank-wise performance of recovery of loans reveals certain interesting features.
Overall performance shows that out of 73 borrowers, 61 (83.56%) are defaulters and only12
(16.43%) borrowers have paid their installments on time.
Bank-wise analysis reveals that AB defaulters are 87.50% and those who are punctual are only
12.50% SBI statistics show that 73.68% are defaulters and 26.32% borrowers have paid their installments
as per schedule. CBI experienced 93.75% defaulters and only 6.25% are punctual. 75% of the UBI

ISBN: 978-93-5300-292-3 Technical Session - III

220 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

borrowers are defaulters, while 25% paid on time and 80% of the IDBI borrowers are defaulters while
20% paid as per schedule.
These defaults have far-reaching implications and are the consequences of negative response of
the borrowing entrepreneurs.
Caste Background of Borrowers and Defaulters in Various Villages
Caste background of borrowers and defaulters has some relationship. Borrowers are divided into
two categories: forward caste and backward caste. The statistical data about caste background of borrowers
and defaulters in various Villages of Guntur is given in Table 5.
It is observed from Table 5 that,
ŠŠ Out of 73 sample borrowers, 44 (60.27%) belong to forward caste and 29 (39.73%)belong to
backward caste.
ŠŠ Out of these, 40.91% of the forward caste and 93.10% of the backward caste aredefaulters.
Table 5: Caste Background of Borrowers and Defaulters in Various Villages
Forward Caste Backward Caste Total
Villages
B D B D B D
Narasaraopeta 6 0 3 2 9 2
Ellamanda 1 1 1 1 2 2
Ikkurru 3 0 1 1 4 1
Jonnalagadda 1 1 3 3 4 4
Kakani 2 1 2 2 4 3
Kesanapalle 2 1 3 3 5 4
Kondakavuru 2 1 2 2 4 3
Lingamguntla Agraharam 1 2 2 3 2
Mulakalur 6 3 2 2 8 5
Dondapadu Agraharam 3 1 1 1 4 2
Pamidipadu Agraharam 5 3 3 8 5
Petlurivaripalem 2 1 2 2 4 3
Ravipadu 2 1 1 1 3 2
Uppalapadu 8 4 3 2 11 7
Total 44 18 29 27 73 45
Percentage 60.27 40.91 39.73 93.10 100 61.64
Note: B = No. of Borrowers; D = No of Defaulters.
The block-wise analysis shows the same trend. It presents a peculiar situation where in a few
blocks forward caste people also commit more defaults and in a few other blocks the opposite is true.
Hence, the relationship cannot be generalized.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 221

Changes Made in the Lending Policy by Bankers

Bank massacres have to face problems of default in repayment. Therefore, it becomes necessary
to makes change in the lending policies. Bank managers were asked to rank the changes made and as per
the weighted score method, rating and ranks are given.
Table 6 presents the changes made in the lending policies by the bank managers. The analysis of
the data reveals the following:
Table 6: Changes Made in the Lending Policy by the Bankers
Ranking Factors Weighted
S. No Difficulties Ranking Rank
1 2 3 4 5 6 7 Score
1. More easy 9 8 9 5 9 6 4 219 62.57 4
2. Special concession 8 10 8 4 6 7 7 223 60.71 7
3. Interest rate 10 11 7 6 6 6 4 229 65.42 1
4. Scientific Re-payment 11 9 6 7 6 7 4 225 64.28 2
schedule
5. Enterprise passbook 9 8 8 8 7 6 4 220 62.85 5
6. Provision of incentive to 10 10 7 6 4 10 3 224 64.00 3
prompt re-payers
7. Toning up quality supervision 9 10 8 4 5 9 5 217 62.00 6
ŠŠ Interest rate is ranked first with 65.42% followed by scientific repayment schedule with 64.28%.
ŠŠ Provision of incentive to prompt re-payers ranked third with 64%.
ŠŠ More easy lending policy with 62.57% was placed fourth.
ŠŠ Entrepreneurs pass book, a new concept in this area, ranked fifth with 62.85%
ŠŠ weighted score.
ŠŠ Toning up of quality supervision was placed in sixth position with 62.00%.
ŠŠ Last rank was given to special concession with 60.71%. Solvency position of the borrowers has a
greater bearing on credit recovery and lending policies of the banks.
Education Level of Borrowers and Defaulters in Different Blocks
It is generally believed that the honesty and integrity would increase with the increase in the level
of education. The society also expects a high level of integrity from the educated class.
Borrowers are divided as per their educational level. The data regarding the educational level of
the borrowers and defaulters in different blocks is given in Table 7.
Table 7 reveals the education level and defaulters in different blocks. The sample members (73)
are distributed on their level of education.
ŠŠ For the purpose of analysis of this hypothesis, the term ‘less educated’ is understood as women
who are educated up to SSC. Those who have taken education above SSC up to PG are considered
as ‘highly educated’.
ŠŠ Table 7 reveals that out of 73 sample borrowers, 41 (56.16%) are educated below SSC and 32
(43.84%) borrowers are above SSC or graduates, diploma holders or postgraduates.

ISBN: 978-93-5300-292-3 Technical Session - III

 222 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

Table 7: Education Level of Borrowers and Defaulters in Different Blocks

Primary School Middle School Below HSC Post Graduate Total

Villages
B D B D B D B D B D
Narasaraopeta 1 1 - - 2 1 5 - 8 2
Ellamanda 1 1 1 1 - - - - 2 2
Ikkurru 1 1 2 1 - - 1 - 4 2
Jonnalagadda - - 2 2 - - 2 - 4 2
Kakani 1 - 1 1 2 1 - - 4 2
Kesanapalle - - 1 1 2 2 2 1 5 4
Kondakavuru 1 1 1 1 - - 2 1 4 3
Lingamguntla Agraharam 1 1 1 1 1 1 - - 3 3
Mulakalur 2 2 2 2 1 1 3 1 8 6
Dondapadu Agraharam - - - - 2 2 2 1 4 3
Pamidipadu Agraharam - - 2 2 2 1 4 2 8 5
Petlurivaripalem 1 1 - - 1 1 2 1 4 3
Ravipadu - - 1 1 1 1 1 1 3 3
Uppalapadu 2 1 1 1 1 1 8 2 12 5
Total 11 9 15 14 15 12 32 10 73 45
Percent 15.06 20.55 20.55 43.84
Note: B = No. of Borrowers; D = No of Defaulters.
ŠŠ Out of 41 borrowers who are less educated, 11 (15.06%) borrowers are educated upto second
standard, while 15 (20.55%) are educated up to secondary education and15 (20.55) below SSC.
ŠŠ The category of less educated women shows that out of 41 educated borrowers, 35(85.36%)
respondents are defaulters. Only 6 (14.64%) are paying their installments on time.
ŠŠ The borrowers who are highly educated are 32. Out of these, 10 (31.25%) borrowers are defaulters
and 22 (68.75%) paid their installments on time. Further, the data reveals that,
ŠŠ Out of 73 borrowers, 56.16% (41) are educated up to SSC, i.e., less educated category.
ŠŠ Of the 73 borrowers, 43.84% (32) are degree holders, diploma holders or double graduates.
ŠŠ Out of 41 less educated borrowers, 95.12% (39) are defaulters.
ŠŠ Out of 32 more educated borrowers, 43.75% (14) arc defaulters.
It seems that from less educated class, only 2 (4.88%) borrowers paid their installments on time.
On the contrary, 18 (56.25%) borrowers from more educated class did not divert their credit for other
purposes. Due to number of defaulters in less educated group, it is necessary to establish educational
institutions.
Reasons for Diversion of Credit as Reported by the Respondents
It is rather difficult to clearly ascertain the reasons for diversion of credit; most of the respondents
tried to evade the question regarding the reasons for diversion and did not come out with any specific
reason. The percentage of distribution of reasons for the diversion of credit is presented in Table 8a.
Table: Reasons for Diversion of Credit as Reported by the Respondents

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 223

S. No. Reasons for Diversion Total Percentage

1 Unavoidable needs 22 30.14
2 Urgent expenses on marriage, festivals, etc. 10 13.70
3 Under finance 8 10.96
4 Late receipt of loan 7 9.59
5 Repayment of old debts 4 5.48
6 Reasons not disclosed 2 2.74
7. Not diverted 20 27.40
Total 73 100.00
Table 8a reveals that,
ŠŠ Out of 73 borrowers, 72.60% (53) have diverted credit for other purposes. 27.40%i.e., 20
respondents did not divert their loans for any of the above.
ŠŠ 13.70% (10) of the borrowers have diverted their credit to meet urgent expenseson marriage
festivals, etc.
ŠŠ 30.14% (22) have diverted the credit to meet their household requirements.
ŠŠ 5.48% (4) of them availed bank credit to repay their private loans.
ŠŠ 10.96% (8) of the borrowers diverted due to under finance from banks and 9.59%(7) borrowers
diverted due to the late receipt of the bank loan.
ŠŠ 2.74% (2) of the borrowers did not disclose the reasons for diversion of credit. Thefield officer
of the bank feels that some of the borrowers may spend the money ongambling, consumption of
alcohol, etc. Perhaps, it would not be wrong to includethese under ‘undisclosed reasons.’
ŠŠ 27.40% (20) of them did not divert their loans for any other imposes.
The analysis shows the causes of poor credit recoveries In uoitiMeivial banks,
Block-Wise Reasons of Diversion of Credit
Guntur District has 14 blocks. Table 8b shows block-wise reasons of diversion of bank credit
which include unavoidable needs, urgent expenses, under finance, late receipt of loan, repayment of old
debts and reasons not disclosed.
Table 8b: Block-Wise Reasons for Diversion of Credit
Unavoidable Needs

Repayment of Old
Late Receipt of
Under Finance
Under Exps.

Reasons not
Disclosed
Debts
Loan

Total

Villages

Narasaraopeta 1 1 2
Ellamanda 2 2
Ikkurru 2 2
Jonnalagadda 2 1 3
Kakani 2 1 1 4

ISBN: 978-93-5300-292-3 Technical Session - III

224 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

Kesanapalle 1 1 1 1 4
Kondakavuru 1 1 1 3
Lingamguntla Agraharam 2 1 1 1 5
Mulakalur 1 1 1 3
Dondapadu Agraharam 2 2 1 1 6
Pamidipadu Agraharam 1 1 1 1 4
Petlurivaripalem 1 1 1 3
Ravipadu 3 1 1 1 1 7
Uppalapadu 1 2 1 1 5
Total 22 11 8 6 4 2 53
Percentage 41.51 20.75 15.10 11.32 07.55 03.77 100
Analysis of Table 8b reveals that
ŠŠ Out of 53 borrowers, 41.51% (22) diverted their credit for unavoidable needs ofconsumption.
ŠŠ 20.75% (11) of them diverted their credit for urgent expenses such as marriage,functions, and
festivals.
ŠŠ 15.10% (8) of the borrowers diverted due to under finance from banks.
ŠŠ 11.32% (6) of the respondent borrowers used the credit for some other purposes dueto late
receipt of loan from the bank.
ŠŠ 7.55% (4) of the borrowers used bank credit to repay their old debts.
ŠŠ 3.77% (2) of them did not disclose any reasons for diversion.
Guntur District is divided into two parts: forward block and lagging block (Table 8c). Forward
block consists of six blocks and lagging block consists of eight blocks. Categorization of blocks is presented
in Table 8c, and Table 8d reveals block-wise reasons for diversion of credit.
Table 8c: Forward and Lagging Blocks of Guntur District

Forward Block Lagging Block

Narasaraopeta Kondakavuru
Ellamanda Lingamguntla Agraharam
Ikkurru Mulakalur
Jonnalagadda Dondapadu Agraharam
Kakani Pamidipadu Agraharam
Kesanapalle Petlurivaripalem
Ravipadu
Uppalapadu
The block-wise diversion of credit shows that forward block and lagging blocks have equally
shared (50%-50%) all the reasons for diversion of credit except late receipt of loan (forward block:
57.14% and lagging block: 42.86%).
Table 8d: Reasons for Diversion: Forward and Lagging Blocks
Reasons Blocks I II III IV V VI
Forward 11 5 4 4 2 1

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 225

Lagging 11 5 4 3 2 1
Total 22 10 8 7 4 2
Note: Reasons of diversion (in Roman numerals) correspond to Table 8a.

Block-Wise Diversion of Credit by Women Entrepreneurs

Total 73 respondent borrowers are categorized in 14 blocks of Guntur District. Block wise
borrowers and defaulters are classified in Tables 9a and 9b.
Table 9a: Block-Wise Borrowers and Defaulters

Undeveloped
Developed Area Borrowers Defaulters Percent Borrowers Defaulters Percent
Area

Narasaraopeta 8 2 24 Kondakavuru 2 2 100

Ellamanda 4 4 100 L Agraharam 4 2 50
Ikkurru 8 5 60 Mulakalur 4 3 75
Jonnalagadda 4 3 75 D Agraharam 4 4 100
Kakani 8 6 72 P Agraharam 3 3 100
Kesanapalle 12 7 55 Petlurivaripalem 4 4 100
  44 27 52.27 Ravipadu 3 3 100
        Uppalapadu 5 5 100
          29  26 75.86
Table 9b: Block-Wise Diversion of Credit by Women Entrepreneurs
Lingamguntla Agraharam

Pamidipadu Agraharam
Dondapadu Agraharam

Petlurivaripalem
Narasaraopeta

Jonnalagadda

Kondakavuru

Uppalapadu
Kesanapalle

Mulakalur

Ravipadu
Ellamanda

Ikkurru

Kakani
Type /
Block

Total

B D B D B D B D B D B D B D B D B D B D B D B D B D B D
Engineering 10 5 1 1 1 0 1 1 2 1
Chemical 1 1
Trading 14 1 1 1 1 2 2 3 3 3 1 2 2 2 2
Food 12 1 1 1 2 2 1 1 1 1 1 1 2 1 3 2
Stationery 3 1 1 1 1 1 1
Garment 3 1 1 2 2
Service 12 1 1 1 1 1 1 1 1 1 1 1 1 1 5 3
Animal 5 2 2 1 1 1 1 1 1
Fabrication 1 1 1
Coach 3 1 1 1 1
Health 2 1 1 1

ISBN: 978-93-5300-292-3 Technical Session - III

 226 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

Printing a 5 1 1 1 1 1 1 1 1 1
Leather 2 1 1 1 1
Total 73 8 2 2 2 4 2 4 3 4 4 5 5 4 4 3 3 8 5 4 3 8 6 4 4 3 3 12 7
Note: B = No. of Borrowers; D = No of Defaulters.
ŠŠ Out of 73 borrowers, 53 have diverted their credit and 20 have not diverted.
ŠŠ 60.27% respondents are from forward blocks and 39.73% are from lagging blocks.
ŠŠ Out of 44 respondents from forward blocks, 52.27% have diverted their credit.
ŠŠ Out of 29 borrowers, 75.86% from lagging blocks have diverted their credit forother purposes.
Impact of Bank Credit on Rural Women Entrepreneurs
As mentioned earlier, industrialization of rural areas is essential for the development of rural sector.
For ensuring industrialization of rural areas, various measures have been initiated by the government
from time to time. For the growth of industrialization, financial institutions have been created by the
government to meet their credit needs. Credit is the key input for accelerating the development in the
rural industries. Among the financial institutions, commercial banks have a prominent and unique place.
All the selected banks are catering to the credit needs of rural entrepreneurs in all the Villages of Guntur
District. An effort has been made to analyze the role of the banks in financing rural and urban enterprises.
After analyzing the banker’s role, it becomes imperative to evaluate:
ŠŠ The impact of bank loan on the socioeconomic life of entrepreneurs;
ŠŠ To judge as to what extent the bank loan has helped the entrepreneurs’ to improve their living
conditions; and
ŠŠ Whether the bank loan has proved helpful in increasing their income or not.
Around 55% of the respondents reported that there was no increase in their income. Forget
about the increase, it even became difficult for them to repay the bank loans. But 45% of the respondents
reported an increase in their income and showed an inclination to set up their enterprises in urban
areas. It is sad to say that the bank loan has failed to ameliorate the existing socioeconomic status of
rural entrepreneurs. There are very few entrepreneurs who are interested to stay in rural areas. They are
reluctant about this. Only those respondents who have no land to their credit are ready to stay in the
rural areas.
Testing of Hypotheses
Women Entrepreneurs Who Are Less Educated Are Prone to Commit More Defaults
ŠŠ For the purpose of analysis of this hypothesis, the term ‘less educated’ is understood as ‘women
who are educated up to SSC.’
ŠŠ Out of 73 sample borrowers, 41 (56.16%) are educated below SSC and 32(43.84%) borrowers
are either graduates or diploma holders or postgraduates.
ŠŠ Out of 41 borrowers who are less educated, 11 (15,06%) ire educated up to second standard, 15
(20.55%) are educated up to savontiory eilucluion and 15(20,55) below SSC
ŠŠ The category of less educated women shows that out of 41 educated borrowers,35 (85.36%)
respondents are defaulters. Only 6 (14.64%) are paying their installments on time.
ŠŠ The borrowers who are highly educated are 32. Out of these, 10 (31.25%)borrowers are defaulters
and 22 (68.75%) are paying installments on time.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District 227

The above analysis proves the hypothesis; Women entrepreneurs who are less educated are prone
to commit more defaults.
Women Entrepreneurs Divert the Bank Credit and Utilize It for Other Unproductive
Purposes
Banks in India mostly provide loans for productive purposes, i.e., for activities which would add
to more production. The concept of consumption loan is still new to the Indian banks.
ŠŠ For the purpose of analysis, the term ‘unproductive purpose’ is understood as “the borrower uses
the loan amount for other purposes than the one stated • in their loan proposal.”
ŠŠ Out of 73 borrowers, 53 (72.60%) have diverted their credit for unproductive purposes and 20
(27.40%) have not diverted their loan and are paying installments as per schedule.
ŠŠ Out of 53 borrowers,
»» 22 (30.14%) used the credit for unavoidable needs.
»» 10 (13.70%) borrowers diverted for urgent expenses like marriage, festivals, etc.
»» 8 (10.96%) diverted their credit because of under finance from the bank.
»» 7 (9.59%) borrowers diverted due to late receipt of the loan.
»» 4 (5.48%) borrowers availed bank credit to repay their private loans.
»» 2 (2.74%) respondents have not disclosed the reasons for the diversion of credit.
ŠŠ Regarding block-wise diversion of credit, 60.27% are from developed areas and the percentages
of defaulters are 52.27%; and 39.73% are from undeveloped areas and the defaulters are 75.86%.
From the block-wise information about the diversion of credit, it is clear that women entrepreneurs
from both developed as well as undeveloped areas divert their credit.
The reasons for diversifying the credit do not depend upon the areas to which the borrowers belong,
whether it is forward block or lagging block. This analysis proves the hypothesis, Women entrepreneurs
divert the bank credit and utilize it for other unproductive purposes.
Conclusion
India is one of the very few countries in the world, which has developed a wide range of banks and
supporting agencies aimed at developing entrepreneurship. These agencies have certainly filled a vital gap
in the industrial development program of India. Commercial banks are the main financial institutions
which look into the financing of projects. More number of bank branches are established in developed
areas compared to the undeveloped areas.
Block-wise analysis reveals that all the borrowers from the lagging blocks have diverted bank
credit for other purposes. It is observed that borrowers from less educated class have not paid their
installments on time. On the contrary, borrowers from more educated class did not divert their credit
for other purposes. Due to more number of defaulters in less educated group, it is necessary to establish
educational institutions.
Indian bankers are still adverse in taking risks and do not lend without adequate tangible securities
or guarantors. The concept of looking into the merit of the women entrepreneurs and their business
viability has not reached the banks yet. The need of the hour is a nucleus center in each industrial area
where all these services are provided through it. The numbers of rural branches are more than that of

ISBN: 978-93-5300-292-3 Technical Session - III

228 Analytical Study of Bank Finance to Women Entrepreneurs in Selected Five Banks in Guntur District

urban and semi-urban branches. Nationalized banks have done a good work in the rural expansion of
their branches.
Entrepreneurial development is to be attuned to economic needs. It is therefore, necessary to
recognize the importance of entrepreneurship as an aspect of social life. Similarly, entrepreneurship
education should be made more socially utilitarian. It is, nevertheless, imperative to restructure the entire
curriculum and identify the areas of entrepreneurship and motivate young people to start their own
business at an early age in their chosen field of interest. This will generate self-employment, which is
always more satisfying than working for others.
Bibliography
Books
yy Census of India (2001), Government of India, New Delhi, p. 27.
yy Helle Nurgaard and John P Ulaoi (Eds.) (2006), Handbook of Qualitative Research in Entrepreneurship, The Aarhus School of
Business, Denmark.
yy “Mahabank Mahashakti”, A Handbook of Andhra Bank, September 16, 2005.
yy Moharana Samson and Jena R (1985), “Preventing Industrial Sickness in the SmallScale Sector: The Role of Commercial Banks”,
Indian Journal of Commerce, Vol. XXXVIII, Part-I, No. 142, January-March, pp. 51-59.
yy Per Davidsson, Frederic Delmar and Johan Wiklund (2006), Entrepreneurship and the Growth of Firms, Edward Elgar Publishing.
yy Prabhakar Rao J V (Ed.) (2000), Entrepreneurship and Economic Development,Kanishka Publishers, New Delhi.
yy Surya Rao V and Srinivasa Rao K (2000), J V Nabluskur Itao (1(d, ), Ride ol Commercial Banks’ in Economic Development, pp.
186- 190, Kanishka Publishek, New Delhi.
Reports
yy Annual Credit Plan (2005), Guntur District.
yy Annual Report, Andhra Bank (2003-04).
yy Economic Survey of Maharashtra (2003-04), Table 6.2, p. 161.
yy Government of India Publication, 9th Five Year Plan, Government of India, Delhi.
yy Potential Linked Credit Plan (2002-03 to 2006-07), NABARD, Regional Office, Pune.
Articles
yy “E-Commerce Boon to Rural Small Entrepreneurs”, SEDME Journal, p. 69, June 2001.
yy “NABARD Plans Vs. Funds”, The Economic Times, p. 10, July 14, 2005.
yy Prof. Jadhav S B (2004), Yojana (Marathi), December, p. 21.
yy “Women Entrepreneurs in Co-operative Banking Sector”, Southern Economist Journal,
yy Vol. 42, No. 19, pp. 7-10.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association
of Lady Entrepreneurs of Andhra Pradesh (ALEAP)

*Ms. Syamala Devi Bhoganadam, **Dr. Dasaraju Srinivasa Rao

*Research Scholar, Department of Management, K L University, Vaddeswaram, Guntur, AP.
**Professor, Department of Management, K L University, Vaddeswaram, Guntur, AP.
Abstract: Women entrepreneurship is a roaring area of research, business and nation’s development. Women are facing
environmental factors to achieve entrepreneurial success. Hence this paper focuses majorly on macro environmental factors
which influence their success. Here in this study only socio cultural factors were considered as in developing countries these factors
impact highly. This study takes five major socio cultural factors as education, family background, social networks, religion and
caste, which are tested with success using chi square test. From the literature it is tested that age of company is associated with
success. the study adopts descriptive type of research design using stratified simple random sampling of 55 entrepreneurs taken at
Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) using structured questionnaire. The findings of the study reveal
that all the factors five socio cultural factors and age of company are having significant relation with women entrepreneurial success.
Key words: Women entrepreneurship, socio cultural factors, entrepreneurial success, ALEAP, entrepreneurs
Abbreviations: ALEAP : Association of Lady Entrepreneurs of Andhra Pradesh

Introduction:
Entrepreneurship is defined as in terms of profit driven, economy driven, market driven, person
driven etc. But in developing countries it is hard to define entrepreneurship as their economical changes
are heavy and uncertain. Moreover major of the researchers, academicians consider entrepreneurs as profit
oriented hence in this paper entrepreneur is defined as a person who owns her enterprise and works hard
to developing and maintaining of enterprise and to achieve higher and higher success rate.
As environmental changes are uncertain with developing countries the macro and micro
environmental changes are happens. Hence the present attains socio cultural factors influencing Indian
women entrepreneurs with entrepreneurial success. Shardha Shivani et.al, (2006) say that socio cultural
factors are important on developing countries like India Association of Lady Entrepreneurs of Andhra
Pradesh (ALEAP) is a lady entrepreneur’s hub for promoting women entrepreneurs with an area of 30
acres having more than 300sheds occupied at present.
Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) contains different sectoral
business like food and processing, manufacturing, electrical, electronics, handlooms, paper and printing,
pharmaceuticals etc. Data was collected from each and every sector at Association of Lady Entrepreneurs
of Andhra Pradesh (ALEAP). It is observed that ALEAP is providing friendly built on infrastructure.
Objectives of the study:
ŠŠ To study socio cultural factors influencing women entrepreneurship
ŠŠ To examine significant association between socio cultural factors and entrepreneurial performance
ŠŠ To examine significant association between age of company and entrepreneurial performance
ŠŠ To bring out some suggestions to women entrepreneurs at ALEAP.
Review of literature:
Akpor - Robaro, M. O. (2012) says that socio cultural environment theoretical base which study
variables as level of education of entrepreneur, poverty, values of economic power and independence,
gender role values, and taken Hofstede’s cultural values. Debanjan Nag & Niladri Das (2014) identifies four
230 A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP)

factors as education, prior experience, leadership skills and communication influencing entrepreneurship
and results show that all these factors are significant role in developing entrepreneurship.
Shardha Shivani et.al, (2006) say that socio cultural factors are important on developing countries
like India. They had taken religion, caste, family support and education are variables under socio cultural
environment. Their findings indicate that caste does not influence entrepreneurial success but influence on
supply and survival of enterprise. Family support and education are significant factors identified. Religion
does not a relationship with entrepreneurship success but all the entrepreneurs are highly religious.
Kumar, D. (2014) says that in social values, family support, religion, education are influencing
factors for entrepreneurship. Levent Altinay &Catherine L. Wang (2011) research recognized some of
socio cultural factors influencing entrepreneurial orientation are education, prior experience and religion.
From this literature it is identified that four major factors which influence entrepreneurship success are
education, work experience, trust among social networks and quality of work force.
Hypothesis for the study:
H11: To examine significant association between education and entrepreneurial performance
H12: To examine significant association between family background and entrepreneurial performance
H13: To examine significant association between social networks and entrepreneurial performance
H14: To examine significant association between religion and entrepreneurial performance
H15: To examine significant association between caste and entrepreneurial performance
H16: To examine significant association between age of company and entrepreneurial performance
Model for the study:
From review of literature it is identified that five major socio cultural factors will impact women
entrepreneurial success as education, family background, social networks, religion and caste. Level
of education increases simultaneously the percentage of entrepreneurial success increases. As level of
family background support towards women entrepreneur increases simultaneously the percentage
of entrepreneurial success increases. Density of social networks to women entrepreneurs increases
simultaneously the percentage of entrepreneurial success increases. Level of religious participation of
women entrepreneurs increases simultaneously the percentage of entrepreneurial success increases. Level
of caste increases simultaneously the percentage of entrepreneurial success increases. Here these socio
cultural factors were measured using individual opinion scaling statements and were combined to each
variables using summation technique.
Women entrepreneurial success is measures using three parameters like financial performance,
production performance and marketing performance. Financial performance is measured using return
on sales, return on assets and profitability. Production performance is measured using production
cost, production quantity and quality. Marketing performance is measured using total sales, customer
satisfaction and market share. These nine statements were combined to women entrepreneurial success
variable using summation technique.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) 231

Education

H11

Family Background
H12
Socio cultural factors
influencing women Social Networks H13 Women Entrepreneurial
entrepreneurial success Success
H14
Religion

H15
Caste

Figure 5.1: Model for the study

Research Methodology:
The study finds out impact of socio cultural factors on women entrepreneurial success using
descriptive type of research design. To attain objectives defined for the study and for testing of defined
hypothesis 55 women entrepreneurs data gathered using stratified simple random technique at Association
of Lady Entrepreneurs of Andhra Pradesh (ALEAP) located at surrampally village, Krishna district.
The identified variables were measured using five point Likert scale in a structured questionnaire
format. This questionnaire distributed among 80 women entrepreneurs on June 2017 only 55 valid
questionnaires were found with an error ratio of 31%. These valid 55 women entrepreneurs’ data analysed
using SPSS software. Tests like chi square, percentages, etc were adopted.
Data Analysis and Interpretation:
Table 1: Sample profile of respondents

Std.
N Minimum Maximum Mean Skewness
Deviation
Std.
Statistic Statistic Statistic Statistic Statistic Statistic
Error
Entrepreneurs
55 1 5 2.75 1.004 .769 .322
qualification
Age of company 55 1 5 3.73 1.627 -.611 .322
Category of company 55 1 3 1.78 .498 -.416 .322
Type of business 55 1 2 1.05 .229 4.034 .322
Type of manufacturing
55 1 9 6.93 2.567 -1.110 .322
sector belongs to

ISBN: 978-93-5300-292-3 Technical Session - III

 232 A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP)

Std.
N Minimum Maximum Mean Skewness
Deviation
Std.
Statistic Statistic Statistic Statistic Statistic Statistic
Error
Present legal status of
55 1 4 1.71 1.286 1.276 .322
company
Sources of finance 55 2 5 4.02 .871 -1.082 .322
Valid N (listwise) 55
Testing hypothesis:
H11: To examine significant association between education and entrepreneurial performance
To test this hypothesis we used chi square analysis with dependent variable as women entrepreneurial
success and independent variable as education. From theanalysis it is clear that education has significant
relationship with women entrepreneurial success (0.000) as shown in table 2.
Table 2: Education and women entrepreneurial success

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 539.458 204 .000
Likelihood Ratio 207.891 204 .411
Linear-by-Linear Association 5.686 1 .017
N of Valid Cases 55
H12: To examine significant association between family background and entrepreneurial perfor-
mance
To test this hypothesis we used chi square analysis with dependent variable as women
entrepreneurial success and independent variable as family background. From the analysis it is clear that
family background has significant relationship with women entrepreneurial success (0.000) as shown in
table 3.
Table 3: Family background and entrepreneurial success

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 237.580 84 .000
Likelihood Ratio 122.540 84 .004
Linear-by-Linear Association 1.547 1 .214
N of Valid Cases 55
H13: To examine significant association between social networks and entrepreneurial performance
To test this hypothesis we used chi square analysis with dependent variable as women entrepreneurial
success and independent variable as social networks. From the analysis it is clear that social networks has
significant relationship with women entrepreneurial success (0.000) as shown in table 4.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) 233

Table 4: Social networks and entrepreneurial success

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 410.490 156 .000
Likelihood Ratio 165.993 156 .277
Linear-by-Linear Association 1.661 1 .197
N of Valid Cases 55
H14: To examine significant association between religion and entrepreneurial performance
To test this hypothesis we used chi square analysis with dependent variable as women entrepreneurial
success and independent variable as religion. From the analysis it is clear that religion has significant
relationship with women entrepreneurial success (0.000) as shown in table 5.
Table 5: Religion and entrepreneurial success
Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 413.574 144 .000
Likelihood Ratio 179.235 144 .025
Linear-by-Linear Association .101 1 .750
N of Valid Cases 55

H15: To examine significant association between caste and entrepreneurial performance

To test this hypothesis we used chi square analysis with dependent variable as women entrepreneurial
success and independent variable as caste. From the analysis it is clear that caste has significant relationship
with women entrepreneurial success (0.000) as shown in table 6.
Table 6: Caste and entrepreneurial success

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 250.937 120 .000
Likelihood Ratio 151.818 120 .026
Linear-by-Linear Association .721 1 .396
N of Valid Cases 55
H16: To examine significant association between age of company and entrepreneurial performance
To test this hypothesis we used chi square analysis with dependent variable as women entrepreneurial
success and independent variable as age of company. From the analysis it is clear that age of company
has significant relationship with women entrepreneurial success (0.000) as shown in table 7. As age of
company increases entrepreneurial success increases simultaneously.
Table 7: Age of company and entrepreneurial success

ISBN: 978-93-5300-292-3 Technical Session - III

234 A Study on Socio Cultural Factors Influencing Women Entrepreneurs At Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP)

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 89.844 36 .000
Likelihood Ratio 74.525 36 .000
Linear-by-Linear Association 17.590 1 .000
N of Valid Cases 55

Conclusion:
From the results it is concluded that women entrepreneurs at Association of Lady Entrepreneurs
of Andhra Pradesh (ALEAP) are having significant relationship between socio cultural factors and with
age of company. It is observed that few women entrepreneurs were facing social networking problems
which can be eradicated by implementing some training programs relating to social network analysis and
development. Education can be improved interms of providing vocational training or technical training
etc which can be done with government support institutes. Religion, caste and family background were
majorly taken as personal factors but can be abolished to get more entrepreneurial success.
References:
yy Akpor - Robaro, M. O. (2012) “The Impact Of Socio-Cultural Environment On Entrepreneurial Emergence: A Theoretical Analysis
Of Nigerian Society”. European Journal of Business and Management, 4 (16), 172-182.
yy Kumar, D. (2014) “Socio-Cultural Influence Of Women Entrepreneurs: A Study Of Uttarakhand State”. International Journal of Trade
And Commerce, 3 (1), 127-139.
yy Nag, D., & Das, N. (2014) “Impact of Socio cultural & Skill Related Factors for Success of Micro Entrepreneurs”. Twelfth Aims
International Conference on Management (Pp. 406-410). Kozhikode: IIM Kozhikode
yy Shradhashivani, Skmukherjee, & Rakasharan. (2006). Socio-Cultural Influences On Indian Entrepreneurs: The Need for Appropriate
Structural Interventions. Journal of Asian Economics, 17, 5–13.
yy Wang, L. A. (2011) “The Influence of an Entrepreneur’s Socio‐Cultural Characteristics on the Entrepreneurial orientation of Small
Firms”. Journal of Small Business and Enterprise Development, 18 (4), Pp. 673 – 694

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Problems & Prospects of Women Entrepreneurs in India
*Dr. Katreddi Satyanarayana
Reader in Social Work & Controller of Examinations, K.G.R.L. College (Autonomous)Bhimavaram – 534201, A.P.

Abstract: Entrepreneurship can help women’s economic independence and improve their social status. Automatically the
women get empowered once they attain economic independence. The development of women entrepreneurship enables society
to understand and appreciate their abilities. It enhances their status and leads to integration of women in nation building and
economic development. The number of woman entrepreneurs has grown over a period of time, especially in the 1990s. Woman
entrepreneurs need to be lauded for their increased utilization of modern technology, increased investment, finding a niche in
the expect market, creating a sizable employment for others and setting the trend for other woman entrepreneurs in the organized
sector. The number of women entrepreneurs in the field of engineering, electronics and energy are on the rise. Majority of the
educated woman entrepreneurs having qualities such as accepts challengers, ambitious, enthusiastic, hard-working, skillful etc.
In this paper the author attempts to analyze and highlight various problems and prospects and women entrepreneurship and
how to develop the women entrepreneur and steps taken by the government to develop women entrepreneur and suggestions for
the development of the women entrepreneurship.

Introduction:
Entrepreneurship is the purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain or organize a profit oriented business unit for the production or distribution
of economic goods and services. Entrepreneurship is one such a field where women’s participation is
very low, although there is lot of improvements in women literacy rate. Women entrepreneurs are
recognized as powerful instruments for the economic development of any nation as well as the catalyst
in bringing the changes in the society. The educated women do not want to limit their lives in the four
walls of the house. They demand equal respect from their partners. However, Indian women have to
go a long way to achieve equal rights and position because traditions are deep rooted in Indian society
where the sociological set up has been a male dominated one. Women are considered as weaker sex and
always made to depend on men folk in their family and outside, throughout their life. But there are
some women leaders who take leadership role in empowerment of women. These women leaders are
assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut throat
competition with their hard work, diligence and perseverance. Ability to learn quickly from her
abilities, her persuasiveness, open style of problem solving, willingness to take risks and chances, ability
to motivate people, knowing how to win and lose gracefully are the strengths of the Indian women
entrepreneurs.
Concept of Women Entrepreneurs:
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize
and operate a business enterprise. The Government of India has defined women entrepreneurs as ―an
enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the
capital and giving at least 51 per cent of the employment generated in the enterprise to women. Women
entrepreneurs engaged in business due to push and pull factors which encourage women to have an
independent occupation and stands on their own legs. A sense towards independent decision-making
on their life and career is the motivational factor behind this urge. Saddled with household chores and
domestic responsibilities women want to get independence. Under the influence of these factors the
women entrepreneurs choose a profession as a challenge and as an urge to do something new. Such a
situation is described as pull factors. While the push factors for women engaged in business activities are
family compulsion and the responsibility.
236 Problems & Prospects of Women Entrepreneurs in India

Women Entrepreneurship in India:

It is estimated that presently women entrepreneurs comprise about 10% of the total entrepreneurs
in India. The term “Women Entrepreneurship” means, an act of business owner -ship and business
creation that empowers women economically, increases their economic strength as well as position in
society. Hence women-entrepreneurs have been making a considerable impact in all most all the segments
of the economy which is more than 25 percent of all kinds of business .In India “Entrepreneurship” is very
limited amongst women especially in the formal sector, which is less than 5 percent of all the business.
Indian women business owners are changing the face of businesses of today, both literally and figuratively.
The dynamic growth and expansion of women-owned businesses is one of the defining tends of the past
decade, and all indications are that it will continue unabated. For more than a decade, the number of
women-owned businesses has grown at one-and-a-half to two times the rate of all businesses. Even more
important, the expansion in revenues and employment has far exceeded the growth in numbers.
Problems of Women Entrepreneurs:
1. Lack of Education.
Women in India are lagging far behind in the field of education. Most of the women (around
sixty per cent of total women) are illiterate. Those who are educated are provided either less or inadequate
education than their male counterpart partly due to early marriage, partly due to son’s higher education
and partly due to poverty. Due to lack of proper education, women entrepreneurs remain in dark about
the development of new technology, new methods of production, marketing and other governmental
support which will encourage them to flourish.
2. Access to Start-up Finance.
Access to start-up finance is the greatest single is-sue faced by women entrepreneurs. It is
observed that women entrepreneurs face greater problems in this regard that small business in gen-
eral. As family members are not in favor of supporting their ladies to take up the business in which
they have skills, naturally they will be unwilling to support with the finance required for starting a
business unit.
3. Marketing Problems and Skills.
Women entrepreneurs continuously face the problems in marketing their products. It is one of the
core problems as this area is mainly dominated by males and even women with adequate experience fail
to make a dent. For marketing the products women entrepreneurs have to be at the mercy of middlemen
who pocket the chunk of profit and also find it difficult to capture the market and make their products
popular. Maintaining existing business and access to fresh business requires strategic marketing skills.
This is the most commonly repeated problem faced by women entrepreneurs after finance.
4. Financial Problems.
Women entrepreneurs suffer a lot in raising and meeting the financial needs of the business.
Bankers, creditors and financial institutions are not coming forward to provide financial assistance to
women borrowers on the ground of their less creditworthiness and more chances of failure.
5. Regulatory Requirements.
Regarding administrative and regulatory requirements, may face that this is a significantly greater
problem for women entrepreneurs then their male counterparts. Microenterprises of every type experience

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Problems & Prospects of Women Entrepreneurs in India 237

these problems. It is because of the disproportionate effect of compliance costs on small companies
compared with large firms. Inspite of this, women entrepreneurs do not face that it, is a major issue.
6. Access to Technology.
Coordinating factors of production is really a challenge to woman entrepreneurs. Woman
entrepreneurs cannot easily co-ordinate the production process particularly with the ever changing
technology. Very few women can sustain such production instants. Women who aspire to become
entrepreneurs cannot keep pace with technology advancement. This puts down their initiative to become
entrepreneurs. Women entrepreneurs face technology obsolescence due to non-adoption or slow adoption
to changing technology which is a major factor of high cost of production.
7. Lack of Self- Confidence.
Women entrepreneurs because of their inherent nature, lack of self-confidence which is essentially
a motivating factor in running an enterprise successfully. They have to strive hard to strike a balance
between managing a family and managing an enterprise. Other problems like society’s attitude towards
woman entrepreneurs, unequal opportunities between women and women and very important amongst
all the ‘Lack of Confidence’ in women are also haunting entrepreneurs.
8.Lack of Management Skills.
Another vital problem encountered by woman entrepreneurs is lack of management skills. In
majority of the cases woman entrepreneurs lack management skills. Because they have lower propensity of
previous business experience. Besides this, support providers discriminate against women entrepreneurs to
a greater extension providing these skills. Women entrepreneurs are not efficient in managerial functions
like planning, organizing, controlling, coordinating, motivating etc. of an enterprise. Therefore, less and
limited managerial ability of women has become a problem for them to run the enterprise successfully.
9. Legal formalities.
Fulfilling the legal formalities required for running an enterprise becomes an uphill task on the
part of an women entrepreneur because of the prevalence of corrupt practices in government offices and
procedural delays for various licenses, electricity, water and shed allotments. In such situations women
entrepreneurs find it hard to concentrate on the smooth working of the enterprise.
10. High cost of production.
High cost of production undermines the efficiency and stands in the way of development and
expansion of women’s enterprises, government assistance in the form of grant and subsidies to some
extent enables them to tide over the difficult situations. However, in the long run, it would be necessary
to increase efficiency and expand productive capacity and thereby reduce cost to make their ultimate
survival possible, other than these, women entrepreneurs so face the problems of labour, human resources,
infrastructure, legal formalities, overload of work, lack of family support, mistrust etc.
Prospects for the Development of Women Entrepreneurs:
Throughout the world, it is observed that the ratio of Women entrepreneurs is increasing
tremendously. The emergence as well as development of Women entrepreneurs is quite visible in India
and their over- all contribution to Indian economy is also very significant.Today the role of Women
entrepreneurs in economic development is inevitable because women are entering not only in selected
fields but also in fields like Trade, Industry and Engineering.

ISBN: 978-93-5300-292-3 Technical Session - III

238 Problems & Prospects of Women Entrepreneurs in India

The industrial structure and the enterprises are undergoing a radical change. Information
Technology has transformed the very technique of doing business individually. Business ownership
provides women with the independence they crave and with the economic and social success they need.
Nationally, business ownership has great importance for future economic prosperity. Globally, women
are enhancing, directing and changing the face of how business is done today. Ultimately, female business
owners must be recognized for who they are, what they do, and how significantly they impact the World’
Global Economy.
Training on professional competence and leadership skills should be extended to Women
entrepreneurs. Activities in which women are trained should focus on their marketability and profitability.
State Finance Corporations and financing institutions should permit by statue to extend purely trade
related finance to Women entrepreneurs. And lastly women Development Corporation has to gain access
to open-ended financing.
Suggestions for the Growth of Women Entrepreneurs:
There should be a continuous attempt to inspire, encourage, motivate and co-operate women
entrepreneurs. An Awareness programme should be conducted on a mass scale to create awareness among
women about the various areas to conduct business.
Organize training programmes to develop professional competencies in managerial, leadership,
marketing, financial, production, profit planning, maintaining books of accounts and other skills. Skill
development to be done in women’s polytechnics and Industrial Training Institutes. Skills are put to work
in training-cum-production workshops.
Educational Institutes should tie up with various government and non-government agencies to
assist in entrepreneurship development mainly to plan business projects. International, National, Local
trade fairs, Industrial exhibitions, seminars and conferences should be organized to help women to
facilitate interaction with other women entrepreneurs.
Women entrepreneurs offered soft loan and subsidies for encouraging them into industrials and
other activities. The financial institutions should provide more working capital assistance to women
entrepreneurs and help them for smooth running of their business.
Steps taken by the Government:
Women, being almost 50% population of India, have a pivotal role to play as far as economic
development of country is concerned. The Government has increased the importance of women by
adopting various schemes and programs for the development of women entrepreneurship. At present, the
Government of India has over 27 schemes for women empowerment operated by different departments
and ministries. Some of these are:
ŠŠ Integrated Rural Development Programme (IRDP)
ŠŠ Khadi And Village Industries Commission (KVIC)
ŠŠ Training of Rural Youth for Self-Employment (TRYSEM)
ŠŠ Prime Minister‘s Rojgar Yojana (PMRY)
ŠŠ Entrepreneurial Development programme (EDPs) Management Development progammes
ŠŠ Women‘s Development Corporations (WDCs)
ŠŠ Marketing of Non-Farm Products of Rural Women (MAHIMA)

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Problems & Prospects of Women Entrepreneurs in India 239

ŠŠ Assistance to Rural Women in Non-Farm Development (ARWIND) schemes

ŠŠ Trade Related Entrepreneurship Assistance and Development (TREAD)
ŠŠ Working Women‘s Forum Indira Mahila Yojana
ŠŠ Indira Mahila Kendra Mahila Samiti Yojana Mahila Vikas Nidhi
ŠŠ Micro Credit Scheme
ŠŠ Rashtriya Mahila Kosh
ŠŠ SIDBI‘s Mahila Udyam Nidhi
ŠŠ Mahila Vikas Nidhi
ŠŠ SBI‘s Stree Shakti Scheme
ŠŠ NGO‘s Credit Schemes
ŠŠ Micro & Small Enterprises Cluster Development Programmes (MSE-CDP).
ŠŠ National Banks for Agriculture and Rural Development‘s Schemes
ŠŠ Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP)
ŠŠ Priyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid
Gangetic Plains‘
ŠŠ NABARD- KFW-SEWA Bank project
Conclusion:
An entrepreneur is one who plays significant role in the economic development of a country. The
most important challenges faced by new entrepreneurs include developing the Vision and Business Idea,
Raising Capital for Startup, Assembling a Business Team, Finding the Right Business Location, Finding
Good Employees, Finding Good Customers, Dealing with competition, Unforeseen Business Challenges
and Expenses, lack of support, negative mind set, lack of marketing facilities, lack of infrastructural
facilities etc. So it is necessary to overcome these challenges in order to conduct an efficient business.
Women should try to upgrade themselves in the changing times by adapting the latest technology benefits.
Women must be educated and trained constantly to acquire the skills and knowledge in all the functional
areas of business management.
Women are an important human resource of the nation and every state should try to utilize
them as mediators of economic growth and development. Encouragement for women entrepreneurship
is one of the ways for that. But unfortunately it is seen that the traditional mind set of the society and
negligence of the state and respective authorities are important obstacles in the women entrepreneurship
development in India. Therefore, there is need of continuous attempt to inspire, encourage, motivate
women entrepreneurs.
References:
yy https://www.borjournals.com/a/index.php/jbmssr/article/download/1868/1219
yy www.iosrjournals.org/iosr-jbm/papers/Vol19-issue3/Version-4/J1903048592.pdf
yy www.zenithresearch.org.in/.../14.Vol_01_Issue_05%20MEENU%20GOYAL%20wo
yy https://www.ijsr.net/archive/v5i3/NOV162067.pdf
yy https://www.ijsr.net/archive/v3i9/U0VQMTQ0MjM=.pdf
yy Nuzhath Khatoon(2016) : Entrepreneurial Development, published by Himalaya Publishing House, New Delhi.

ISBN: 978-93-5300-292-3 Technical Session - III

 Women Entrepreneurs – A Mirage of Indian Women
Dr. R. Lilambeswara Singh*
Prof. in Management, St.Johns college of Engineering & Technology,Yerrakota,Yemmiganur,Kurnool.A.P

Abstract: “You can tell the condition of a nation by looking at the status of its women”- Jawaharlal Nehru
Entrepreneurship is a more suitable profession for women than regular employment in public and private sectors since they have to
fulfill dual roles. Entrepreneurship emerges from an individual’s creative spirit into long-term business ownership, job creation,
and economic security. Female entrepreneurs seek the professional and personal support that is found in business associations.
Economic globalization has encouraged the expansion of female business ownership. Women bring commitment and integrity
because they care about economic empowerment, entrepreneurial development and innovation. Women have been taking
increasing interest in recent years in income generating activities, self employment and entrepreneurship. This is seen in respect of
all kinds of women both in urban and rural areas. Women are taking up both traditional activities (knitting, pickle making, toy
making, jam and jelly) and also nontraditional activities (like computer training, catering services, beauty parlor, gym etc.).It
is clear that more and more women are coming forward to set up enterprises. Generally, women who initiate a micro-enterprise
do it because of the factors which limit their capacity to start large ventures-low levels of self-confidence, little access to technical
information, poor local market conditions, regulatory barriers and no access to capital. Some micro enterprises offer a meaningful
source of income and satisfaction. Women who try to enter an industry, either in managerial or in entrepreneurial role are
generally exposed to various environmental constraints. Starting and operating business involves considerable risk and effort on
the part of the entrepreneur, particularly in the light of highest failure rate. Perhaps, this rate is even higher in the case of women
entrepreneurs who have to face not only the usual business problems but also their family problems. This not only limits the scope
of their contribution to the industrialization process, but also undermines the productive utilization of an available human
Key words;- Business, Entrepreneurs, Management&Women

Entrepreneurs:-
The word ‘ entrepreneur’ derives from the French word “Entreprendre” (to undertake) .in the early
16thCentury it was applied to persons engaged in military expeditions, and extend to cover construction
and civil engineering activities in the in this 22nd century the meaning of entrepreneurs has changed.
Entrepreneurship is more than simply “starting a business.” The definition of entrepreneurship is a process
through which individuals identify opportunities, allocate resources, and create value. This creation of
value is often through the identification of unmet needs or through the identification of opportunities
for change. Entrepreneurs see “problems” as “opportunities,” then take action to identify the solutions to
those problems and the customers who will pay to have those problems solved.
Entrepreneurial successes are simply a function of the ability of an entrepreneur to see these
opportunities in the marketplace, initiate change (or take advantage of change) and create value through
solution.
Women Entrepreneurs:- A brief prologue:-
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize
and operate a business enterprise. Government of India has defined women entrepreneurs as an enterprise
owned and controlled by a women having a minimum financial interest of 51% of the capital and giving
at least 51% of employment generated in the enterprise to women. A women entrepreneur has many
functions. They should explore the prospects of starting new enterprise; undertake risks, introduction of
new innovations, coordination administration and control of business and providing effective leadership
in all aspects of business. A large number of women around the world have set up and managed their own
businesses. It was not easy for these women to succeed in business. They had to face a lot of difficulties and
overcome a number of barriers to become successful in their ventures. They had to deal with discrimination
and withstand the skepticism of society, and also put in more effort than men to prove their credibility
Women Entrepreneurs – A Mirage of Indian Women 241

to others. Women entreprenurer’s have been making a significant impact in all segments of the economy
in India. The areas chosen by women are retail trade, restaurants, hotels, education, cultural, insurance
and manufacturing.
Push-Pull factors and Women in business
Women in business are a recent phenomenon in India. By and large they had confide themselves
to petty business and tiny cottage industries. Women entrepreneurs engaged in business due to push and
pull factors. Which encourage women to have an independent occupation and stands on their own legs?
A sense towards independent decision-making on their life and career is the motivational factor behind
this urge. Saddled with household chores and domestic responsibilities women want to get independence
Under the influence of these factors the women entrepreneurs choose a profession as a challenge and as
an urge to do something new. Such situation is described as pull factors. While in push factors women
engaged in business activities due to family compulsion and the responsibility is thrust upon them.
They have made there marks in business because of the following reasons:
ŠŠ They want to improve their mettle in innovation and competitive jobs.
ŠŠ They want the change to control the balance between their families and responsibility and their
business levels.
ŠŠ They want new challenges and opportunities for self fulfillment.
Role of women as an Entrepreneur’s:
ŠŠ Imaginative: It refers to the imaginative approach or original ideas with competitive market. Well-
planned approach is needed to examine the existing situation and to identify the entrepreneurial
opportunities. It further implies that women entrepreneur’s have association with knowledgeable
people and contracting the right organization offering support and services.
ŠŠ Attribute to work hard: Enterprising women have further ability to work hard. The imaginative
ideas have to come to a fair play. Hard work is needed to build up an enterprise..
ŠŠ Persistence: Women entrepreneurs must have an intention to fulfill their dreams. They have to
make a dream transferred into an idea enterprise; Studies show that successful women work hard.
ŠŠ Ability and desire to take risk the desire refers to the willingness to take risk and ability to the
proficiency in planning making forecast estimates and calculations.
ŠŠ Profit earning capacity: she should have a capacity to get maximum return out of invested capital.
A Woman entrepreneur has also to perform all the functions involved in establishing an enterprise.
These include idea generation, and screening, determination of objectives, project preparation, product
analysis, determination of forms of business organization, completion of formal activities, raising funds,
procuring men machine materials and operations of business.
Tribulations Faced by Women Entrepreneurs
Women in India are faced many problems to get ahead their life in business. A few problems can
be detailed as:
1. The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal –
male dominant social order is the building block to them in their way towards business success.
Male members think it a big risk financing the ventures run by women.

ISBN: 978-93-5300-292-3 Technical Session - III

242 Women Entrepreneurs – A Mirage of Indian Women

2. The financial institutions are skeptical about the entrepreneurial abilities of women. The bankers
consider women loonies as higher risk than men loonies. The bankers put unrealistic and
unreasonable securities to get loan to women entrepreneurs. According to a report by the United
Nations Industrial Development Organization (UNIDO), “despite evidence that women’s loan
repayment rates are higher than men’s, women still face more difficulties in obtaining credit,”
often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995b).
3. Entrepreneurs usually require financial assistance of some kind to launch their ventures - be it
a formal bank loan or money from a savings account. Women in developing nations have little
access to funds, due to the fact that they are concentrated in poor rural communities with few
opportunities to borrow money. The women entrepreneurs are suffering from inadequate financial
resources and working capital. The women entrepreneurs lack access to external funds due to their
inability to provide tangible security. Very few women have the tangible property in hand.
4. Women’s family obligations also bar them from becoming successful entrepreneurs in both
developed and developing nations. “Having primary responsibility for children, home and older
dependent family members, few women can devote all their time and energies to their business.
The financial institutions discourage women entrepreneurs on the belief that they can at any time
leave their business and become housewives again. The result is that they are forced to rely on
their own savings, and loan from relatives and family friends.
5. Indian women give more emphasis to family ties and relationships. Married women have to make
a fine balance between business and home. More over the business success is depends on the
support the family members extended to women in the business process and management. The
interest of the family members is a determinant factor in the realization of women folk business
aspirations.
6. Another argument is that women entrepreneurs have low-level management skills. They have
to depend on office staffs and intermediaries, to get things done, especially, the marketing and
sales side of business. Here there is more probability for business fallacies like the intermediaries
take major part of the surplus or profit. Marketing means mobility and confidence in dealing
with the external world, both of which women have been discouraged from developing by social
conditioning. Even when they are otherwise in control of an enterprise, they often depend on
males of the family in this area.
7. The male - female competition is another factor, which develop hurdles to women entrepreneurs
in the business management process. Despite the fact that women entrepreneurs are good in
keeping their service prompt and delivery in time, due to lack of organizational skills compared
to male entrepreneurs women have to face constraints from competition. The confidence to travel
across day and night and even different regions and states are less found in women compared to
male entrepreneurs. This shows the low level freedom of expression and freedom of mobility of
the women entrepreneurs.
8. Knowledge of alternative source of raw materials availability and high negotiation skills are the
basic requirement to run a business. Getting the raw materials from different souse with discount
prices is the factor that determines the profit margin. Lack of knowledge of availability of the
raw materials and low-level negotiation and bargaining skills are the factors, which affect women
entrepreneur’s business adventures.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurs – A Mirage of Indian Women 243

9. Knowledge of latest technological changes, know how, and education level of the person are
significant factor that affect business. The literacy rate of women in India is found at low level
compared to male population. Many women in developing nations lack the education needed to
spur successful entrepreneurship. They are ignorant of new technologies or unskilled in their use,
and often unable to do research and gain the necessary training (UNIDO, 1995b, p.1). Although
great advances are being made in technology, many women’s illiteracy, structural difficulties, and
lack of access to technical training prevent the technology from being beneficial or even available
to females (“Women Entrepreneurs in Poorest Countries,” 2001). According to The Economist,
this lack of knowledge and the continuing treatment of women as second-class citizens keep
them in a pervasive cycle of poverty (“The Female Poverty Trap,” 2001). The studies indicates that
uneducated women don’t have the knowledge of measurement and basic accounting.
10. Low-level risk taking attitude is another factor affecting women folk decision to get into business.
Low-level education provides low-level self-confidence and self-reliance to the women folk to
engage in business, which is continuous risk taking and strategic cession making profession.
Investing money, maintaining the operations and ploughing back money for surplus generation
requires high risk taking attitude, courage and confidence. Though the risk tolerance ability of the
women folk in day-to-day life is high compared to male members, while in business it is found
opposite to that.
11. Achievement motivation of the women folk found less compared to male members. The low level
of education and confidence leads to low level achievement and advancement motivation among
women folk to engage in business operations and running a business concern.
Future Prospects of Development of Women Entrepreneurs:-
If we see the present business and entrepreneurship trend throughout the world, we can notice
that the percentage or ratio of women entrepreneurs is growing tremendously. This is a good indicator as
if the aforesaid condition prevails through a long period of time the number of women entrepreneurs will
just double and even in certain sectors of economy it may triple in the coming 5-7 years. The emergence
as well as development of women entrepreneurs is quite visible in India and their over-all contribution
to Indian economy is also very significant. The occupational structure and the enterprises are undergoing
a drastic change. IT and the Internet revolutionize the very method of doing business. New types of
enterprises are created, and there are new requirements as regards the organization of work, qualifications
and management. Entrepreneurial culture is undergoing a positive development.
The Government wants this trend to continue. Several of the initiatives are especially useful
for women entrepreneurs’ improvement of the entrepreneurial culture, regional contact points and
entrepreneur networks as well as more ready access to financing, especially to small loans. These initiatives
are to be further adjusted to appeal to women entrepreneurs. All this is providing immense confidence
in the women entrepreneurs and enabling them to exercise their skills, risk taking abilities, uncertainty
bearing attitude while working in an enterprise. To inspire confidence and to “sell one’s idea” is the
policy nowadays being adopted by women entrepreneurs. Above all, women want competent counselling
in various fields: such as namely: financing, liquidity, budgeting, etc. Women entrepreneurs also want
more appreciation of their idea on the part of the banks. Many say, however, that they themselves must
also be better at selling their idea. More-over with increasing government and non-government and
other financial institutions assistance for various women entrepreneurs within the economy there can
be significant increase brought about in the growth of women entrepreneurship process. Still efforts are

ISBN: 978-93-5300-292-3 Technical Session - III

244 Women Entrepreneurs – A Mirage of Indian Women

being made to coordinate with the enterprise activities of women and providing them utmost financial,
morale, psychological support by various institutions working within the economy and world-wide.
Conclusion:
“Only a life lived for others is a life worthwhile”. Yes. Today there is a greater awakening among
women. In education, they have not only excelled but also become top makers. Likewise, in office and
industry, many have shown brilliant results. Even in rural India with education, women have shown
better performance. Educating women is absolutely essential in straightening her personality. The need
of the hour is to provide an opportunity in a conducive atmosphere free from gender differences. The
need for awareness motivation and courage to correct the faults of male counterparts is great challenges
today. It is, therefore, encouragement of the growing intensity of motivation amongst educated young
women for coming in the entrepreneurial stream and extends support with scientifically designed package
of the technical and financial assistance. The non-governmental organizations have a bigger role in
stimulating and nurturing the spirit of entrepreneurship among women. Towards this end, an integrated
approach is necessary for making the movement of women entrepreneurship a success. For this purpose,
both the government and non-government agencies have to play a vital role.
References;-
yy http://praveenben.com/55/entrepreneurship/women-entrepreneurship
yy http://www.indiatogether.org/women/business/renuka.htm
yy http://www.articlesbase.com/entrepreneurship-articles/women-entrepreneurship-in-india-909659.html
yy http://www.publishyourarticles.org/eng/articles/essay-on-the-growth-of-women-entrepreneurship-in-india. html
yy http://www.wordquotient.com/library/entrepreneurship/women-entrepreneurship-in-india.html
yy http://www.echeat.com/free-essay/Balancing-Acts-Role-Conflict-of-Women-Entrepreneurs-26383.aspx
yy http://www.un.org/News/Press/docs/2001/dev2331.doc.html19
yy http://www.celcee.edu
yy http://www.svtuition.org/2010/04/successful-women-entrepreneurs-in-india.html
yy http://www.youthkiawaaz.com/2011/01/top-10-women-entrepreneurs-and-leaders-of-india/
yy http://www.freshersworld.com/blogs/post/10/09/28/Women-Entrepreneurship-In-India
yy Jose P., Ajith Kumar. & Paul T.M., (1994) Entrepreneurship Development, Himalaya Publishing.
yy Medha Dubhashi Vinze (1987) Women Entrepreneurs In India: A Socio-Economic Study of Delhi - 1975-76, Mittal Publications,
New Delhi.
yy Renuka V. (2001) Opportunities and challenges for women in business, India Together, Online Report, Civil Society Information
Exchange Pvt. Ltd.
yy Starcher, D. C. (1996). Women entrepreneurs: Catalysts for transformation. Retrieved July 6, 2001: http:// www.ebbf.org/woman.
htm10 (c2001269511)
yy United Nations Industrial Development Organization (UNIDO). (1995a). “Women, industry and entrepreneurship.” Women in
Industry Series. Vienna, Austria: author. Retrieved July 6, 20001: http://www.unido.org/doc/150401.htmls15 (c2001266816)
yy United Nations Industrial Development Organization (UNIDO). (1995b). “Women, industry and technology.” Women in Industry
Series. Vienna, Austria: author. Retrieved July 6, 2001: http://www.unido.org/doc/150401.htmls 15 (c2001266618)

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of
Indian Perspective
*Dr. J. Revathy, **Maneeja Indupalli
*Associate Professor, VRS & YRN College, Chirala
**Research Scholar, Acharya Nagarjuna University
Abstract The women of 21st century are contributing towards the growth of economy and improvement of their socioeconomic
conditions. They have shown incredible impact on all sections of the economy. The women are entering in the business world
due to improved education level, standard of living and privileges at par with their male counterparts. In developing country
like India, most of the studies have been carried out on male entrepreneurs as comparison to women entrepreneurs. This study
examined the profile of women entrepreneurs, current status (financial status, social status and decision making status) and
various problems, such as financial problems, marketing problems, manufacturing problems and labour problems faced by
the women entrepreneurs. The results exposed that majority of women entrepreneurs were married and undertaken business
enterprises, such as food processing, textiles/garments and manufacturing units. They were selling their products at state, national
and international level. Moreover, majority of women entrepreneurs had not taken any formal training in their respective areas
prior to the establishment of business enterprises and key reason for staring business enterprises was their poor financial condition.
The women entrepreneurs decision making power in terms of manpower recruitment, marketing and financial decisions was
quite good. They were having moderate awareness about various government agencies, financial institutions and schemes of
women entrepreneurs. They were facing various financial problems, such as low credit facilities, shortages of working capital
and high competition from various men managed big business enterprises. Problem of shortages of raw material and non-
availability of skilled labour were also major problems of the women entrepreneurs. Even though we have many successful women
entrepreneurs in the different states of the country, but there are many challenges which women entrepreneurs face from family
and society. There is a need of exceptional efforts in the field of women entrepreneurship to boost their morale and instilling self-
confidence in them. The current study explains the problems and challenges which resulting in stress among women entrepreneurs.
Key words: Women Entrepreneurs,Decision-Making power, Social-Status.

Introduction
The Study on Women Entrepreneurship is a recent phenomenon. Studies on women
entrepreneurship explain that a great number of women enter into self-employment to supplement
household income. The word “entrepreneur” as a concept has evolved specially in the 17th century by
the definition from Richard Cantillon. He defined entrepreneur as a person who buys factor services at
‘certain’ prices with a view to selling its product at an uncertain price in the future.
Women as Entrepreneur
In general, those are playing the entrepreneurial role can be called as entrepreneurs, irrespective
of their sex. The Woman entrepreneur is regarded as a woman who accepts or takes a challenging role in
any business venture to become economically strong by making suitable adjustments in both family and
social life.(Balamurugan, 2008). The hidden entrepreneurial potentials of women have gradually been
changing with the growing sensitivity to the role and economic status in the society. Skill, knowledge and
adaptability in business are the main reasons for women to emerge into business ventures. A strong desire
to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing
values in both family and social life. With the advent of media, women are aware of their own traits, rights
and also the work situations.
Problems of Women Entrepreneurs;
Women entrepreneurs encounter two sets of problems i.e., general problems of entrepreneurs and
problems specific to women entrepreneurs (Desai 1994). Various problems associated with the women
entrepreneurship are below:
246 Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of Indian Perspective

1. Financial Problems:
Finance is regarded as “life blood” for any enterprise, be it big or small. However, women
entrepreneurs suffer from shortage of finance on two counts. Firstly, women do not generally have property
on their names to use them as collateral for obtaining funds from external sources. Thus, their access to
the external sources of funds is limited. Secondly, the banks also consider women less creditworthy and
discourage women borrowers on the belief that they can at any time leave their business. Given such
situation, women entrepreneurs are bound to rely on their own savings, if any and loans from friends and
relatives who are expectedly meager and negligible. Thus, women enterprises fail due to the shortage of
finance
2. Stiff Competition:
Women entrepreneurs do not have organization set- up to pump in a lot of money for canvassing
and advertisement. Thus, they have to face a stiff competition for marketing their products with both
organized sector and their male counterparts. Such a competition ultimately results in the liquidation of
women enterprises.
3. Lack of Education:
In India, around 60% of women are still illiterate illiteracy is the root cause of socioeconomic
problems. Due to the lack of education and that too qualitative education, women are not aware of
business, technology and market knowledge. Also, lack of education cases low achievement motivation
among women. Thus, lack of education creates problems for women in the setting up and running of
business enterprises.
4. Male Dominated Society:
Male chauvinism is still prevailing in India. The constitution of India speaks of equality between
sexes. But, in practice women are looked upon as “Abala “i.e., weak in all respects. Women suffer from
male reservations about a women’s role, ability and capacity and are treated accordingly. In nutshell, in
the male-dominated Indian society, women are not treated equal to men. This in turn, serves as a barrier
to women entry into business.
5. Low-level risk
Taking attitude is another factor affecting women folk decision to get into business. Due to lack
of higher education they are lacking self-confidence and though the risk tolerance ability of the women
folk in day-to-day life is high compared to male members, while in business it is found opposite to that.
6. Low Risk Bearing Ability:
Women in India lead a protected life. They are less educated and economically not self- dependent.
All these reduce their ability to bear risk involved in running an enterprise. Risk bearing is an essential
requisite of a successful entrepreneur. In addition to above problems, inadequate infra structural facilities,
shortage of power, high cost of production, social attitude, and socio-economic constraints also hold the
women back from entering into business.
7. Defying social expectations:
In this sort of situation, women may feel as though they need to adopt a stereotypically “male”
attitude toward business: competitive, aggressive and sometimes overly harsh. But successful female
CEOs believe that remaining true to yourself and finding your own voice are the keys to rising above
preconceived expectations.
Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of Indian Perspective 247

8. Building a support network:

Forty-eight percent of female founders report that a lack of available advisers and mentors limits
their professional growth,knowing where to find the right support network isn’t always easy. A few good
places to start include women-focused networking events — such as Womancon, Women in Technology
Summit and WIN Conferences— as well as online forums and groups created specifically for women in
business, such as Ellevate Network.
Balancing business and family life:
Work-life balance is a goal of many entrepreneurs regardless of their gender, but mothers who start
businesses have to simultaneously run their families and their companies. And in this area, traditional
gender expectations often still prevail. Thus these are the problems and challenges of women entrepreneurs
causing them stress.
1. Scarcity of Raw-material:
This is very common problem for men and women entrepreneurs. Knowledge of alternate source
of raw materials availability and high negotiation skills are the basic requirement to run a business.
Getting the raw materials from different source with discount prices is the factor that determines the
profit margin. Low level negotiation and bargaining skills are the factors, which are affecting women
entrepreneurs.
Due to these problems women entrepreneurs getting into high level stress and depression. With
a view to support and encourage women entrepreneurs the Government taking many programmes by a
way of giving subsidies, raw materials at discounted prices, technical assistance .
Schemes for Women Entrepreneurs in India
Development of women has been a policy objective of the government since independence. Until
the 70s the concept of women’s development was mainly welfare oriented. In 1970s, there was a shift
from welfare approach to development approach that recognized the mutually reinforcing nature of the
process of development. The 80s adopted a multi-disciplinary approach with an emphasis on three core
areas of health, education and employment. Women were given priorities in all the sectors including SSI
sector. Government and non-government bodies have paid increasing attention to women’s economic
contribution through self-employment and industrial ventures (Natrajan & Gordon 2007; Hattangadi
2007).
There are several schemes for women operated by different departments and ministries. Some of
these schemes are mentioned below:
1. Integrated Rural Development Programme (IRDP)
1. Khadi and Village Industries Commission (KVIC)
2. Training of Rural Youth for Self-Employment (TRYSEM)
3. Prime Minister’s RojgarYojana (PMRY)
4. Entrepreneurial Development Programmes (EDPs)
5. Management Development Programmes (MDPs)
6. Women’s Development Corporations (WDCs)
7. Marketing of Non-Farm Products of Rural Women (MAHIMA)
8. Assistance to Rural Women in Non-Farm Development (ARWIND) schemes

ISBN: 978-93-5300-292-3 Technical Session - III

248 Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of Indian Perspective

9. Trade Related Entrepreneurship Assistance and Development (TREAD)

10. Working Women’s Forum
11. Indira MahilaYojana
12. Indira Mahila Kendra
13. MahilaSamitiYojana
14. MahilaVikas Nidhi
15. Micro Credit Scheme
16. RashtriyaMahilaKosh
17. SIDBI’s MahilaUdyam Nidhi
18. MahilaVikas Nidhi
19. SBI’s Stree Shakti Scheme
20. NGO’s Credit Schemes
21. Micro & Small Enterprises Cluster Development Programmes (MSE-CDP)
22. National Banks for Agriculture and Rural Development’s Schemes
23. Rajiv Gandhi MahilaVikas Pariyojana (RGMVP)
24. Priyadarshini Project- A Programme for Rural Women Empowerment and Livelihood in Mid
Gangetic Plains
25. NABARD- KfW-SEWA Bank Project
26. Exhibitions for women, under promotional package for Micro & Small enterprises approved by
CCEA under marketing support
Women Development and Entrepreneurship:
Women represent half of the resources and half of the potential in all the societies. Efforts to
promote greater equality between women and men can also contribute to the overall development
of human societies. The empowerment and autonomy of women and the improvement of women’s
social,economic and political status is essential for the achievement of sustainable development in all
areas of life(Anitha, 1999).
Women also face considerable conflict between marital/parental and occupational demands.
High time pressure, long working hours, role conflicts etc expose women entrepreneurs to a lot of stress.
It becomes extremely essential for them to adopt appropriate strategies to cope with work stress.
Conclusion:
In former days, women there were 3Ks- Kitchen,Kids,Knitting , then came 3Ps-Powder,
Papad,Pickles and now at present there are 4Es –Electricity,Electronics,Energy, Engineering. Indian
Women had undergone a long way and are becoming increasingly visible and successful in all spheres
and have shifted from kitchen to higher level of professional activities. Educated women is contributing
to a great extent to the social transformation and in the future, will be seen that more women venturing
into areas traditionally dominated by men. Many women have established their own economy i.e.
Entrepreneurial Empire and now are ruling their world as they wished to. When a woman moves forward
the family moves and the village moves and the nation moves, asserted Pandit Nehru. Upliftment of
women is an essential ingredient of human development.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurs in Stressful Areas, A Study on Problems &Challenges of Indian Perspective 249

References
yy Ahuja, M. L. (2011). Agents in the Diversified Global Economy. New Delhi: Rupa Publications Pvt. Ltd. 4. Anbarci, N., & Cinar, E.
M. (2000).
yy Gender Based Wage Differences, Household Bargaining and Working Women’s Welfare: Theory and Evidence from Izmir. Working
Paper Series: 2020.
yy Berns, M. (1986). Communication Variables and Female Entrepreneurship: Exploratory Case Study of Six Former Corporate Executive
Women.
yy Bhatia, B. S., & Batra, G. S. (2003). Entrepreneurship and Small Business Management. New Delhi: Deep and Deep Publishers Pvt.
Ltd.
yy M Soundarapandian: Women Entrepreneurship Issues and Strategies, Kanishka Publshers Distributors, New Delhi, 1999
yy Nayyar, et al. 2007. “Causes and Constraints Faced by Women Entrepreneurs in Entrepreneurial Process.” The Journal of Social
Sciences 42 (4): 99-102
yy Anitha,H(1999).Women entrepreneurship in India.Southern Economist,11-13
yy Journal of Entrepreneurship and Management, Volume 5,October 2016.
yy Web Refferences
yy WWW.planningcommission.com

ISBN: 978-93-5300-292-3 Technical Session - III

 Women Entrepreneurship
G. Ramesh Babu
Associate Professor, PG Department of Commerce & Management studies, VRS & YRNCollege, Chirala
Abstract:- The entrepreneurial competencies of people of the country are indeed bedrocks over
which economic development of developing countries bank on. But for entrepreneurship development,
so called economically developed countries would not have developed economically and industrially.
In fact entrepreneurship is acknowledged as an engine of growth in developing country like India where economic development
is bound up with entrepreneurship development. One of the productive programmes to be carried out for harnessing productive
resources of every country is the development of entrepreneurial culture among people which results in entrepreneurial growth.
The crucial role played by the entrepreneurs in the economic development of western countries made people of developing countries
conscious of significance of entrepreneurship and its promotion towards achievement of high level of economic growth. The emergence
and exemplary success of some women entrepreneurs in India has come as game changer in the entrepreneurship landscape.
With galaxy of women joining into league of entrepreneurs year by year in India, entrepreneurship in India has assumed a
new dimension. Though male entrepreneurs outnumber women entrepreneurs, women entrepreneurs have set an example and
became beacon to the budding entrepreneurs. Despite several impediments to women entrepreneurship, scores of women had
to transform their role from homemakers to entrepreneurs to make themselves active participants in the process of economic
development. Today, the participation of women is found not only in pickles, pappad, powder business units but also in
manufacturing, trading and service sectors. This paper is an attempt to cover important aspects such as need for women
entrepreneurship, role of women entrepreneurship and problems of women entrepreneurs.

Introduction:-
For a long time entrepreneurship remained the domain of men only. Entrepreneurship is no
longer domain of men only. Role of women is no longer limited to four walls of their houses. Scores
of women have become entrepreneurs. Number of women entrepreneurs is increasing year by year. A
women entrepreneur is one who owns and controls and enterprise having a share capital of not less
than 51 per cent as partners/shareholders/directors of private limited company/ members of co-operative
society. The entry of women into business is of recent origin. It happened when activities of women
are extended from Kitchen to three Ps, i.e., pickles, powder (masala) and pappad manufacturing. Over
a period of time, women have shifted from traditional activities to modern activities like Engineering,
Electronics popularly known as 3Es.
Need for Fostering Entrepreneurial Culture among Women:-
Need for fostering entrepreneurial culture among women is of paramount importance in a
developing country like India, where women entrepreneurship will enhance economic Independence,
social status of women and provide opportunity to women to develop them economically and to reinforce
entrepreneurial base in India. If one woman becomes an entrepreneur, one job seeker will decrease there
by incidence of unemployment in India will scale down to some extent. In the light of existence of some
women who are ignorant of opportunities for entrepreneurship women entrepreneurship development
and awareness programmes should be carried out to sensitize women about entrepreneurship.
Factors that Prompt Women to Become Entrepreneurs:
Women entrepreneurs constitute 10 per cent of total entrepreneurs in the country. Due to pull
and push factors, women embark on entrepreneurship.
Pull factors include those factors which encourage women to start an occupation or venture with
an inclination to do something independently. Push factors include those factors which compel women
to take up their own business to tide over their financial woes.
Women Entrepreneurship 251

Changing Role of Women:-

Gone are the days when women confined themselves to the four walls of their houses. Now they
had to assume new role of entrepreneur to make themselves participants in economic development. The
eye-catching development which made India proud is amazing entry of galaxy of women into league of
entrepreneurs.
Concept of Women Entrepreneurship:
Government of India defined women entrepreneurship as an “enterprise owned and controlled
by a women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per
cent of the employment generated in the enterprise to women”.
A women entrepreneur is one who owns and controls enterprise having a share capital of not less
than 51 percent and giving 51 per cent of the employment generated in the entrepreneurs to women.
Women entrepreneurship is arecent phenomenon. It emanates from the need for filling the gap in
market caused by difference between actual level of entrepreneurship and desired level of entrepreneurship.
The need for women entrepreneurship cannot be ruled out in developing countries where women’s social
status and Economic Independence should increase. Since women are geared up to catch up with the
men entrepreneurs, many women are becoming entrepreneurs in India. Women entrepreneurship in
India is in nascent stage.
Achievements of Women as Entrepreneurs:-
The commendable economic history of India is replete with umpteen heart – warming success
stories belonging to women entrepreneurs. The redeeming feature of entrepreneurial landscape of India
is emergenceand sterling success of some women as entrepreneurs. The harsh reality which no body
deniesis emergence of some women who have become formidable adversaries to men in the sphere of
entrepreneurship. There is no gainsaying the fact that women who came with flying colors as Successful
entrepreneurs have made India proud. Buoyed by roaring success of men in the field of entrepreneurship,
some enterprising women followed the suit to carry forward the glorious legacy left by their predecessors.
Notwithstanding the entry of women into league of entrepreneurs as late entrants, unparalleled
commitment and vision of women made them important participants in the transformation of India into
resurgent and vibrant economy.
Objectives of the Study:-
ŠŠ To examine the role of women entrepreneurs in economic development.
ŠŠ To know the growth of women entrepreneurs.
ŠŠ To get complete picture regarding problems of women entrepreneurs in India.
ŠŠ To analyze the present environment for women entrepreneurship.
ŠŠ To analyze the factors which caused failure of some women entrepreneurs.
ŠŠ To provide insight into changing role of women from passive to active role in entrepreneurship.
Methodology:
The information required for this study was garnered from secondary sources such as business
Journals, magazines, text books, reports of some government agencies, and research studies.

ISBN: 978-93-5300-292-3 Technical Session - III

252 Women Entrepreneurship

Literature Review:-
The present study has banked on publications both government and Private, industrial policies
of Government, statements of captains of industry, National and International industry associations, case
study of some companies and annual reports of some companies.
Women Entrepreneurship in Pre – Independence Period:
In Pre- Independence period women entrepreneurship was negligible. There was no awareness
among women to become entrepreneurs and there was no proper direction to women to hone their skills.
Women Entrepreneurship in Post – Independence Period:
Since Independence in India, there has been phenomenal increase in number of women
entrepreneurs. Now there are over 2,90,000 women entrepreneurs in India. Female entrepreneurs
constitute 43% oftotal population. Women entrepreneurs constitute 12% of total entrepreneurs during
1998-1999.
Growth of Women Entrepreneurship in Post - Liberalization Period.
Post- liberalization period has witnessed exponential increase in number of women entrepreneurs.
Present Opportunities for Women Entrepreneurs:
Gone are the days when men entrepreneurs used to corner all the opportunities available in India
for playing dominant role as entrepreneurs, since women entrepreneurship was negligible at that time.
Thanks to change in the attitude of some women and, their urge to prove their mettle as
entrepreneurs some women made them entrepreneurs in course of time. As a result, women role in
entrepreneurship is increasing year by year. In addition, Central and State Governments are according top
priority to women entrepreneurship by announcing women entrepreneurship centric policies, subsidies
to new women entrepreneurs.
Problems of Women Entrepreneurs:-
ŠŠ Problem of finance.
ŠŠ Scarcity of raw materials.
ŠŠ Stiff competition.
ŠŠ Family ties.
ŠŠ Lack of education.
ŠŠ Male dominated society.
ŠŠ Low risk – bearing ability.
Findings of the Study:
ŠŠ Women entry into business is a recent phenomenon.
ŠŠ In certain industries, women entrepreneurs are excelling their male counterparts.
ŠŠ Entrepreneurship is the area where women participation is low.
ŠŠ Men entrepreneurs outnumber women entrepreneurs.
ŠŠ Women entrepreneurs are faring well not only in selected industries but also several industries.
ŠŠ Women entrepreneurs constitute 10 per cent of total entrepreneurs.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship 253

ŠŠ Women entrepreneurs are found in traditional and in nontraditionalIndustries such as Electronics,

Textile Design, Ceramics.
Suggestions:-
Following suggestions will go long way in fostering women entrepreneurship.
ŠŠ Women should be made conscious of their role in nation building by creating awareness among
them.
ŠŠ Financial environment should be made women entrepreneur friendly.
ŠŠ Industrial policy should accord utmost priority to women role in building vibrant industrial base.
ŠŠ Time is ripe for identifying prospective women in rural areas for grooming them as entrepreneurs
through entrepreneurship development program me.
ŠŠ Skill development programmes should be made within the reach of rural women who possess
skills for setting up start – ups.
ŠŠ Government should swiftly redress grievances of women entrepreneurs.
Role of Several Agencies in Women Entrepreneurship Development:-
Several institutions at central and State Levels like Nationalized banks, State Financial
Corporations, State Industrial Development Corporations, District Industries Centres and Voluntary
agencies like FICCI’s Ladies Organization, National Alliance of Young Entrepreneurs play crucial role in
developing women entrepreneurs in India. Apart from above agencies, International Women Associations
are working for developing women entrepreneurship in Rural and Urban Areas.
Industrial policy 1991 stressed the need for conducting special women entrepreneurship
development programme. The first National Conference of women Entrepreneurs advocated development
of women entrepreneurs. Second International Conference of women Entrepreneurs adopted declaration
for development of women entrepreneurs.
Conclusion:-
Women entrepreneurship has been progressing in India at a snail’s pace, even in the face of
endorsement of need for reinforcement of women entrepreneurship by government through creation
of awareness about entrepreneurship and through entrepreneurship development programmes. Some
progressive women entrepreneurs have left great legacy to women who are inclined to follow the suit.
Time is ripe for women to play catalyst role to change the face of entrepreneurship which is presently
plagued by umpteen stumbling blocks. Not with standing host of obstacles to the expected growthof
women entrepreneurship in India, women entrepreneurship is expected to scale great heights in the
days to come. The future of women entrepreneurship is likely to become bright, thanks to creation of
favourable environment marked by government subsidies and government encouragement.
References:
yy MedhaDulhashivize – Women Entrepreneurship.
yy Entrepreneurial development – C S Gupta and N P Srinivasan.
yy Priyanka Sharma, Jaipur National University, Jaipur, India – “Women Entrepreneruship Development in India”.
yy Renuka V opportunities and challenges for women in business.
yy Dr. G. Malyadri. Role of women entrepreneurs in the economic development of India.
yy Dynamics of Entrepreneurial Management and Development – Vasant Desai.

ISBN: 978-93-5300-292-3 Technical Session - III

 Financial Inclusion of Women Entrepreneurs in India
* K. Srinivas, **Dr. M.S. Narayana
*Research scholar, Rayalasima University,
**Professor & HOD,Department of MBA, Narasaraopeta Engineering College, Narasaraopet,
Abstract: - Women constituting half of our population represent an untapped source of economic growth and
entrepreneurship is one way of using that vast pool of human resource as mediators of that growth. Although India has
witnessed a significant rise in the number of women entrepreneurs over the past few decades influencing the demographic
characteristics of business yet the entrepreneurial world in the country is still dominated by men. There is ample evidence to
suggest that besides cultural constraints, the access to formal sources of credit is one of the major factors stifling the growth of
women entrepreneurship in India. While banks do not deliberately exclude women, something in the system is not working.
Not only in rural areas but even in big cities there are women with entrepreneurial spirit who cannot realize their full potential
in the absence of banking facilities. It therefore becomes imperative that any vision of India’s financial system in the coming
years takes this financial gap as a matter of concern. A financial inclusion program may not aim exclusively at women, but
to ensure that women benefit the maximum from such a programme, it is important to understand why financial exclusion
for women is different from that for men. Developing and monitoring financial services designed in accordance with the
needs of women entrepreneurs and making them aware of such services through literacy programs not only meets the objective
of financial inclusion but also adds to the overall socioeconomic development of the country. This paper emphasizes on the
need for a model of sustainable banking that fosters a more inclusive, environment-friendly, transparent and commercially-
viable financial sector and better serving and integrating women is an important part of it. Financial literacy for women
is a key,but awareness in society also has to play a big role in bridging this gap and the paper is step in that direction.
Key Words: Entrepreneurship, financial inclusion, financial literacy, collaterals, inclusive growth
Introduction
Today countries throughout the world have realized that women represent a powerful human
resource which can be used as a mediator of growth and development. Women entrepreneurship is one
way of doing that. Women entrepreneurs not only create new job opportunities but also provide society
with different solutions to management, organization and business problems. The increasing presence
of women in the business field as entrepreneurs over the past two decades has changed the demographic
characteristics of business and overall economic growth in the country. However, the entrepreneurial
world in India is still dominated by men. Female entrepreneurs are concentrated in the areas of small-
scale entrepreneurship characterized by limited growth and tend to be home-based. Their role in the large
scale and technology based industries is still quite limited. Many research studies point out that one of the
major factors restricting the growth of women enterprises in India is lack of finance. Women often have
fewer opportunities than men to gain access to credit for various reasons including lack of collateral,an
unwillingness to accept household assets as collateral and negative perceptions of women entrepreneurs
by loan officers in the absence of credit ratings and a proper business plan. A general lack of experience
and exposure, heavy paper work and high transaction cost associated with accessing credit also restricts
women from venturing out and dealing with banking institutions. As a result, they usually depend on the
family members or informal sources for their capital requirements which restricts the growth and survival
of their enterprises.
Though financial inclusion has been a major policy objective of India’s financial system since
2004 and number of financial institutions provide support to women entrepreneurs for their innovative
and imaginative scheme of activities aimed at skill development, yet according to FICCI estimate, only
26 percent women in India have a bank account and credit issued to women accounts for only 7.3
percent of the total credit in the Indian financial system. These miniscule numbers suggest a crying need
for a further push to our financial inclusion agenda. While efforts to enhance MSMEs through priority
sector lending targets and Credit Guarantee Schemes have been undertaken; women entrepreneurs get
excluded from mainstream financing efforts. They are often referred to as the ‘missing middle’. These sets
Financial Inclusion of Women Entrepreneurs in India 255

of women enterprises have financial needs that are greater than a SHG, but are not profitable enough for
a commercial banker. While banks do not deliberately exclude women, something in the system is not
working. A Goldman Sachs Global Investment Research Report that looked at loan rejection rates for
small and medium enterprises (SMEs) fund that rejection rates for women-owned SME’s in India were
almost double than those owned by men. It is a much higher rate than other countries in the world, so
something; somewhere isn’t working and needs to befixed.
India has a huge pool of human resource in the for mofnon-working women which can contribute
to economic growth if capital is arranged and hand-holding for starting a business is done. Banks can
definitely ensure the first one and contribute substantially to the second one. Financial Inclusion has
the potential to bring in many unbanked poor women into the formal banking system, channelize their
savings, and stoke their entrepreneurial ambitions by making them available adequate credit thereby
giving a fillip to the economy. While it is true that banks cannot survive by pursuing only the agenda of
inclusion and need to target the right group to be commercially viable, but India’s experience in the field
of micro finance clearly indicates that women entrepreneurs is the right group for the banks to target.
Results of a study using a global data set covering 350 micro finance institutions (MFIs) in 70 countries
including India indicate that more women clients is associated with lower portfolio-at-risk, lower write-
offs, and lower credit-loss provisions, citrus pari bus. Hence, it is rightly said by the Managing Director,
World Bank that “Investing in women entrepreneurs is smart economics”.
Literature Review
The term entrepreneurship can be and has been studied from different angles thereby creating
divergent yet complementary views of the phenomenon. While entrepreneurship is usually regarded as
an activity, some definitions concentrate more on its operational and functional characteristics. Some
writers have employed economic indicators like growth and profit and incorporated entrepreneurship as
an effective tool in reducing poverty. Entrepreneurs “seek out and identify potentially profitable economic
opportunities and as such are agents of growth (Farr-WhartonandBrunetto,2007).There are writers who
portray entrepreneurship as a human behaviour linked to personal achievement “Entrepreneurial behaviour
is often driven by diverse reasons including the desire for personal accomplishment” ( Itani et al., 2011} It
is important to see female entrepreneurship as a distinct yet related concept to male entrepreneurship to
understand the similarities and differences between both these groups. Women entrepreneurship usually
implies an act of business ownership and business creation that empowers women economically and thus
raises their economic strength and social status in the society. Out of the many gender specific definitions
one which is widely used is “Female entrepreneurs are defined as those who use their knowledge and
resources to develop or create new business opportunities, who are actively involved in managing their
businesses,and own at least 50 per cent of the business and have been in operation for longer than a year”.
Many research studies have been made in the field of women entrepreneurship which emphasis their role
in the overall economic development and the factors which inhibits their growth and survival. Though
the changing role of women in business is being gradually acknowledged, the journey is still fraught with
immense challenges. There is ample evidence to indicate that the lack of finance and access to formal
credit is a major hurdle in the growth and survival of women enterprises and government and financial
institutions can play a vital role in promoting these enterprises. Females across the globe complain about
lack of financial resource as a major constraint in their way to success (Halkias et al., 2011). In the Indian
context, a study by Charumathi (1991) established that banks and financial institutions historically
viewed women entrepreneurship as more doubtful prepositions than men entrepreneurship. Pal (1997)
in a study on women entrepreneurship and financial sector in India found that the lack of affordable

ISBN: 978-93-5300-292-3 Technical Session - III

256 Financial Inclusion of Women Entrepreneurs in India

credit from the formal financial sector was the most critical constraint for women entrepreneurship. It
showed that women faced obstacles even to open a bank account to increase their saving which might
help them to finance their own expansion or to provide security for a future loan. Similarly,a study by
Kaur and Bawa( 1992) based on primary data, showed that 54 per cent of women entrepreneurs had
started their business with their own personal savings and some financial assistance from their spouse, 23
percent received finances from their parents,13 percent from relatives and friends and only 10 per cent
from government agency and nationalized banks. Rao, K (2004) conducted a primary survey in Rajkot
of 25 entrepreneurs from lower middle class showed that most of the women entrepreneurs in all groups
had arranged their own funds, borrowing from friends or relatives but did not approach any financial
institution. A recent study by Vatharkar (2012) examined the problems faced by women entrepreneurs in
Pune district at various levels in their journey as entrepreneurs. The study found that women entrepreneurs
faced various problems at start-up and operating stage such as role conflict,lack of motivation, lack of
finance, discriminating treatment, understanding government rules and regulations. Similarly, a research
study based on primary data by Dr. D.D.Arora&Subhash Chandra (2013)tried to examine the financial
obstacles faced by women entrepreneurs during start-up stage and running up of their enterprise. A
survey of 189 enterprises from urban and rural areas of three divisions, (Ambala, Rohtak, and Gurgaon)
of Haryana State was conducted. The results of the study showed that 39.2 percent of sample women
entrepreneurs faced the problem in obtaining start-up capital and accepted it as a major obstacle. Activity
wise this problem is felt more in manufacturing and trading sectors. While many women entrepreneurs
felt that financial institutions showed reluctance in granting
ation of information about financial schemes for women Entrepreneurs was also a major problem.
According to the study, support for starting an enterprise came essentially from informal sources, with a
very small proportion of women getting help from Government schemes and programmes.
Governments all over the world today are promoting the agenda of inclusive growth by announcing
various policies and programmes aimed at left out sections particularly women. There are studies which
show that in many third world countries women entrepreneurial activities are getting a great flip by various
flagship schemes and programmes sponsored by World Bank and International Financial Institutions. In
the Indian context,there are some studies which show encouraging trends in the area of institutional
credit for women enterprises. Are search study by Bindiya(2001)undertaken on“Women and Agriculture”
found that the government was promoting women entrepreneurship by providing financial assistance in
the form of term loans, interest, subsidy, unsecured loans and concession in the form of subsidies in the
capital, self-employment loan etc. It found that the Regional Rural Banks are playing an important role
in empowerment of rural women through various credit schemes for entrepreneurship development.
Kumar (1998) from Banglore reported that Canara Bank’s Centre for Entrepreneurship Development
gives training to women and helps them to setup small industrial units besides providing assistance for
marketing their product. A study by Mohanty (2004) revealed that various self-employment and income
generating schemes such as IRDP, SEEUY, PMRY, SSI, KVI and DWCRA implemented in Orissa have
made significant contribution towards economic empowerment and self- employment of women and
development of women entrepreneurship.
Methodology
The study is based mostly on the secondary sources of data including vast literature review, reports
of relevant studies and surveys, census reports, government publications and a desk review of various
websites. Major problem faced in conducting the study was the non-availability of segregated data on
women enterprises and lack of uniformity and consistency among different data sources as there is no

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Financial Inclusion of Women Entrepreneurs in India 257

unique definition of a woman entrepreneur. Personal interviews and observations with some women
entrepreneurs in the social circle were also used to get insight and identify the issues discussed in the
paper. However attempt is made to use reliable official data as a basis of analysis and policy prescriptions.
The paper is divided into four sections. The first section throws light on the nature and types of women
enterprises in India. These cond section discusses the major constraints and challenges faced by women
entrepreneurs in the country. In the third section various policy initiatives and schemes to provide
institutional credit to women entrepreneurs are discussed. Last section concludes the discussion and
suggests for a more inclusive, environment-friendly, transparent and commercially- viable financial sector
which fulfils the aspirations of women entrepreneurs in the country.
1. Women Entrepreneurship in India
For a long time Indian women had been performing household activities as submissive housewives
or running part time business in the limited areas of food and fashion. Today, they are becoming as
aggressive and ambitious as men breaking free from traditional gender specific roles and venturing into the
new economic fields.Not only are they holding high corporate positions but have also proved to be at par
with their men counterparts in the business world and are emerging as smart and dynamic entrepreneurs
running their enterprises from papad to power cables. They have become successful entrepreneurs in
the field of both manufacturing and trade and commerce. Women entrepreneurs manufacturing solar
cookers in Gujrat or owing small foundries in Maharashtra or manufacturing capacitors in Orissa prove
beyond doubt,that given opportunity they can excel their male counter parts
Women entrepreneurship usually implies an act of business ownership and business creation
that empowerswomeneconomicallyandthusraisestheireconomicstrengthandsocialstatusinthesociety.
According to Kamala Singh, “A woman, entrepreneur is a confident, innovative and creative woman
capable of achieving economic independence individually or in collaboration, generates employment
opportunities for others through initiating establishing and running an enterprise by keeping pace with
her personal, family and social life”. Government of India has defined women enterprises as “An enterprise
owned and controlled by a woman or group of woman with a minimum financial interest of 51% of
capital and giving at least 51% of the employment generated in the enterprise to the women”.
Women entrepreneurs in India can broadly be classified in three categories
1. Women who are educated and professionally qualified and take initiatives and manage business
like men. They usually head medium and large units and are often involved in businesses to satisfy
their inner urge of creativity and to prove their capabilities.
2. Women who may not have educational or formal training in management but have developed
practical skills required for small scale or tiny enterprises like handicrafts, garments, retail, beauty
saloons,bio- technology, furniture etc. Economic independence, flexibility and control over their
life is usually a major motivating factor for them.
Women who work in cities and slums to help women with low incomes. There is a service-
motivated organization to assist economically the backward sections of society like lizzat Papad & Sasa
Detergent.
According to sixth Economic Census issued by ministry of statistics and programme implementation
women constitute only about 13.76 per cent of to al entrepreneurs in the country i.e.8.05 million out
of the 58.5 million which is much lower compared to USA & Canada where their share is estimated to
be 25% and 33% respectively. Further,34.3%of the total women entrepreneurs work in the agriculture

ISBN: 978-93-5300-292-3 Technical Session - III

258 Financial Inclusion of Women Entrepreneurs in India

sector and rest 65.7% in non-agricultural sectors. Of total female enterprises almost 98 % are Micro
Enterprises, 1.8 % are Small and only 0.05 % are Medium enterprises. Thus, the majority women are
in micro enterprises where the investment is less than INR 25 lakhs in manufacturing industry and less
than INR10 lakhs in service industry. Women owned enterprises provide employment to 13.45 million
people.
With regard to geographical spread of female entrepreneurship across India, Tamil Nadu has
highest number followed by Kerala, Andhra Pradesh, West Bengal and Maharashtra. 50.4% of women
enterprises are in manufacturing sector compared to 70 % in case of male enterprises in the sector. Service
enterprises account for almost 40.9 % of female enterprises, as compared with 12 % incase of male
enterprises. The pattern is same in both rural and urban areas. Almost 90 % of total MSM Enterprises
are under proprietorship or Hindu Undivided Family. Out of these 13% are owned by women, against
87 % owned by men. Women largely prefer being proprietors in business and show negligible interest in
partnerships or private companies. In contrast to earlier researches recent studies show that there are far
more similarities than differences between women and men entrepreneurs in terms of psychological and
demographic characteristics
1. Women Entrepreneurs- Major Constraints and Challenges
Although India has witnessed a significant rise in the number of women entrepreneurs in the post
liberalization era, many of them are still prevented from reaching their full potential by a combination of
cultural restrictions, gender discrimination and lack of resources. The gender discrimination that often
prevails at all levels in our society impacts the women in the field of business also. The gender gap in
entrepreneurial activity and capitalization can be attributed to the differing economic and socio- cultural
factors which determine the business environment for entrepreneurs there is ample evidence to suggest
that besides cultural constraints, the access to formal sources of credit is one of the major factors stifling
the growth of women entrepreneurship in India. Lack of access to immovable assets, poor enforcement
of financial rights, their marital status and stereotypical views on the capability of a woman entrepreneur
are the constraint factors for the growth of women entrepreneurship. According to the Gender Female
Entrepreneurship Index, announced at the Dell Women Entrepreneur Network in Istanbul on 4 June
2013, India ranked 16 of 17 nations trailing behind other developing countries like Mexico (5), Brazil (14).
The index is based on individual aspirations, business environments and entrepreneurial ecosystems and it
covers high potential women entrepreneurs. Although, the country scored relatively high for “opportunity
recognition” suggesting that the female population recognizes good opportunities for businesses where
they live but it received low scores relating to “institutional foundations” indicating that the women’s
ability to act on those perceived opportunities is limited. Access to finance is repeatedly identified as a
major constraint women face to start or expand their business. According to Global entrepreneurship
monitor (GEM) report 2014, 43% of women entrepreneurs cite issues in obtaining finance as a reason
for business discontinuance, as compared to 26% male. Most women entrepreneurs start their business
with their own savings and personal assets without much external funding. Only 26 % women in India
have a bank account and credit issued to women accounts for only 7.3 per cent of the total credit in the
Indian financial system (FICCI). According to IFC report 2013 women-owned businesses in India are
undercapitalized and there is a financing gap of Rs. 6.37 trillion. 73% of the total demand for finance by
women owned business in the country is un met.
Most women entrepreneurs in the country are trapped in the micro enterprise sector and are
unable to access larger business loans to expand their business beyond the SME level. They often have fewer
opportunities than men to gain access to credit as traditional lending models act to their disadvantage.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Financial Inclusion of Women Entrepreneurs in India 259

High transaction costs,the rigidity of collateral requirements and heavy paper work are the impediments in
the way of financial access. A general lack of experience and exposure also restricts women from venturing
out and dealing with banking institutions. Other factors that limit the financing of women enterprises
are low sector viability, limited business networks arising from mobility issues also constraint their access
to credit. On the supply side, financial institutions lack gender-inclusive mandates and vision statements.
Government financed programmes such as the Credit Guarantee Scheme is insufficient to absorb the risk
exposure. Public Sector Banks are characterized by manpower shortages resulting in inability to serve the
large and growing MSME segment.

Non financial
Undeserved credit needs due to Lack of technical and bottlenecks laws and
lack of collateral commercial support regulations assets positioning,
Systematic bias Lack of entrepreneurial network low mobility / Family
Absence of Credit ratings and & global marketing obligations, low level of
proper business plan education / training & skill
Financial illiteracy development

Women Entrepreneurship - Major Challenges

Thus the major challenges in the area of women entrepreneurship are-
ŠŠ Access to finance is repeatedly identified as a major constraint to start or grow business.
ŠŠ Women-owned SMEs compose a critical, yet under served market in the country
ŠŠ Under traditional lending models, women can be rejected for credit because of informality, lack
of credit histories and collateral,not fitting banks’ marketing strategies or client profiles,low
education levels, lack of formal work experience and exclusion from entrepreneurial networks..
ŠŠ Existing schemes of credit and support do not reach out to all in urban and rural areas because of
lack of awareness amongst women about the financial assistance offered
ŠŠ Non-financial bottlenecks such as laws, regulations and women’s access to markets and networks
often hamper women’s access to finance an.
ŠŠ India lags far behind other developing nations when it comes to a healthy ecosystem of women
entrepreneurship
II Institutional Credit for Women Entrepreneurs
It is important to note that the financing gap is not entirely due to the absence of financial
programmes and schemes for women. Many financial institutions and banks provide direct and indirect
support to women entrepreneurs for their innovative and creative activities aimed at income and
employment generation in different sectors. They are running schemes and programmes i.e. the Credit
Guarantee Fund Scheme wherein concessions in margin and interest subventions have been extended
to them. Rastriya Mahila Kosh (RMK) is the most important intervention launched in 1993 with the
objective of meeting the credit needs of the poor asset less women particularly engaged in the unorganized
sector who are not being adequately addressed by the formal financial institutions. To help and encourage
women entrepreneurs to start own business Seed Capital Scheme is undertaken by the government and

ISBN: 978-93-5300-292-3 Technical Session - III

260 Financial Inclusion of Women Entrepreneurs in India

agencies such as Directorate of Industries, Khadi and Village Industries Board, Small Industries Institutions,
Mahila Vikash Sambaya Nigam and Rashtriya Mahila Kosh are contacted for this purpose. The micro
finance has been emerging as a significant instrument to address the problem of lack of access to credit
for the small women entrepreneurs while indirectly attacking the problem of poverty and unemployment.
To assist large number of weaker sections banks have also introduced novel approaches / innovations
such as formation of Self Help Groups of weaker sections, specially of women and inculcating in them
the habit of regular savings and rotating the savings amongst them thereby creating awareness for regular
repayments. Banks have adopted more simplified policy in respect of security, documentation, margin,
repayment terms, disbursement schedule, model and period of repayment appraisal. Many schemes that
are exclusively for women provide relief in terms of collateral security and interest rates. Interest rates
vary in most cases from 0.25% to 1% on applicable conditions. For instance, under Bank of India’s,
Priyadarshini Yojana scheme, no collateral security is required for loans up to Rs 5 lakh and for small-scale
industries (SSI) units and there is a relief of interest rates from 0.5% to 1 %. Similarly, Oriental Bank of
Commerce’s Orient Mahila Vikas Yojana Scheme, there is up to 2% concessions and no collateral security
for loans upto Rs.10 lacs and in case of SSI no collateral security required up to Rs.25 lacs. The banks also
have micro-credit units which provide doorstep services to rural women. Similarly for SBI’s Stree Shakti
Package, security is waived for loans up to Rs 5 lacs for industrial units. Some banks like State Bank of
India and Canara Bank have special cells for women entrepreneurs. Besides consulting, these cells provide
training, counselling and at times avenues for showcasing and marketing their products. Government of
India launched the ‘Bharatiya Mahila Bank’, the world’s third “women-only” bank in 2013, to provide
tailored financial
However, despite these schemes and programmes initiated by banks and government institutions
for women entrepreneurs the financial help has reached to few. There is a wide gap between policies and
implementation. In practice the schemes are only providing minor concessions to women and the terms
and conditions are similar to any other consumer loans. While efforts to finance MSMEs through priority
sector lending targets and Credit Guarantee Schemes have been undertaken, women entrepreneurs get
excluded from mainstream financing efforts. They are often referred to as the ‘missing middle’. These sets
of women enterprises have financial needs that are greater than a SHG, but are not profitable enough for a
commercial banker. Women MSMEs who largely operate in service driven sectors need smaller quantum
of funds to finance working capital requirements which usually is below INR 50 Lacs. Given the high
administration costs associated with processing smaller loan amounts, women’s MSMEs get excluded.
Although NPAs on loans to women have declined from 6.5% in 2005 to 3.8% in 2014 according to RBI
estimates, women micro enterprises in India are still classified as high risk by financial institutions due to
inability to showcase scalability and meet collateral requirements
Conclusion and Suggestions
Financial Inclusion has been defined as a process of ensuring access to appropriate financial products
and services needed by all sections of the society in general and vulnerable groups in particular, at an
affordable cost in a fair and transparent manner by regulated institutional players. Women entrepreneurs
represent one such group who lacks access to formal credit and has to largely rely on informal sources of
credit i.e. family, friends and moneylenders to start and run their business. In contrast to men, women
face particular hurdles in doing business ranging from lack of collaterals to discriminatory regulations and
ingrained gender bias. Small loans can make a big difference for women entrepreneurs and microfinance
providers are addressing their need. But financial institutions must do a better job of banking on women’s
potential by going beyond the traditional lending models and thinking creatively to provide them tailor

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Financial Inclusion of Women Entrepreneurs in India 261

made products and services. Experience in the microfinance sector confirms women’s strong repayment
records as women-owned SME portfolios have lower Non- Performing Loans than those of men-owned
SMEs. Women-owned SMEs also demonstrate more brand loyalty to financial institutions and are more
likely to purchase multiple financial products from the same financial institution, increasing cross-selling
opportunities for them. Each market is unique and women entrepreneurs’ demands are not general but
specific, hence they need customized solutions. There now are now a variety of documented successful
approaches to promote women’s access to finance, training and marketing. Building on these available case
studies and emerging business networks, both public and private sector players have an opportunity to
collaborate in order to bring these initiatives to scale. Coca-Cola’s $100m initiative with the International
Finance Corporation (IFC) to give women a shot at the resources to enable them to start up or scale up
shows that financial institutions by forging partnerships with the corporate sector can help in providing
a healthy eco system for women entrepreneurship in India. To establish the baseline for any financial
inclusion programme for women there is a need to undertake intensive research using both primary and
secondary data involving a wide range of stakeholders to ensure that different perspectives are represented.
.Essentials for a Healthy Eco System of Women Entrepreneurship
Some recommendations for a healthy eco system of women entrepreneurship in India are-
A. Policy makers and government should ensure that:
ŠŠ Legislation provides equal opportunity for women and men and nondiscrimination is actually
practiced.
ŠŠ Regulatory framework is flexible and works for the benefit of women entrepreneurs (e.g., credit
reporting, opening hours of financial institutions).
ŠŠ Supplier diversity policies that promote sourcing from SMEs (including from women-owned
enterprises) are explored
ŠŠ Women are the major beneficiaries of Schemes under the financial inclusion agenda.
ŠŠ -Women are aware of the schemes and programs through financial literacy campaigns
ŠŠ Grass roots monitoring to ensure the effective implementation of the policies.
B. Private sector banks and financial institutions need to:
ŠŠ Conduct market research to identify the potential business case for women-targeted interventions.
ŠŠ Explore partnerships that better link access to finance with capacity-building programs (including
targeting entire value chains).
ŠŠ Strengthen information management systems to incorporate new financial products and services
tailor made for women entrepreneurs.
ŠŠ Have collateral- free lending and setting quotas for lending to women entrepreneurs as well as
guarantee scheme for zero collateral lending
ŠŠ Replace safe lending by priority lending for women. Make available Consortia (group) lending
for women.
ŠŠ Undertake awareness campaigns i.e. workshops/camps about the schemes available for women
ŠŠ Make available International capital to innovative and aspiring women entrepreneurs.
ŠŠ Undertake training programs for credit officers, customer service representatives and managers
to better attract and attend the female clients Identify support-program mechanisms for women

ISBN: 978-93-5300-292-3 Technical Session - III

262 Financial Inclusion of Women Entrepreneurs in India

entrepreneurs that can have an impact on the entire value chains where women entrepreneurs are
concentrated.
ŠŠ Improve performance measurement frameworks to better capture the success factors of capacity-
building programs for women entrepreneurs.
ŠŠ Improve performance measurement frameworks to better capture the success factors of capacity-
building programs for women entrepreneurs.
With the government giving top priority to the agenda of financial inclusion of poor and weaker
sections of society and launching schemes like- Pradhan Mantri Jan DhanYojana (2013) and Pradhan
Mantri Mudra Yojana (2015), women entrepreneurship is also expected to get a spark as most of the
women entrepreneurs being in the small scale sector, constitute target group of such schemes. While
the Mudra scheme is actually gender agnostic, it will have a much more significant impact on women
entrepreneurs who have struggled with accessing finance due to a disproportional lack of collateral for
decades in India. The setting up of a unique public sector institution of its kind “The Bharatiya Mahila
Bank” in 2013 with an aim to provide financial services predominantly to women and women self- help
groups is a significant step that may change the face of banking for women in India. It sends a message to
the banking community to think differently about how to offer credit, products and services to women.
With the government recognizing the important role of women in the overall growth of the nation, it is
vital that women and financial institutions find a crossroads where they meet to serve each other. Financial
literacy for women is a key, but awareness for all of us shall also play a big role in bridging this gap.
References
yy Birley, S. (1989). Female Entrepreneur : Are they really any different ?,Journal of Small Business Management;27(1),32-37
yy Chander,Subhash(2013).Study of financial problems of women entrepreneurs International Journal of Social Science & Interdisciplinary
Research, ISSN 2277 3630, IJSSIR, Vol. 2(4)
yy Charumathi, b.(1998). “Women entrepreneur’s challenges and prospects” in C. Swarajya Lakshmi (ed.),Development of Women
Entrepreneurship in India: Problems and Prospects, New Delhi: Discovery PublishingHouse
yy Das, M. (2000).Women Entrepreneurs from India: Problems, motivations and success factors, Journal of Small Business and
Entrepreneurship, 15, 4.
yy Dhaneja, SK. (2002). “Women Entrepreneurs: Opportunities, Performance, Problems” Deep publishing (p) Ltd., New Delhi.P11
yy Farr-Wharton, R. and Brunetto, Y. (2007). “Women Entrepreneurs, Opportunity Recognition and Government-Sponsored Business
Networks: A Social Capital Perspective”, Women in Management Review, Vol. 22, No. 3, pp.187-207

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Women Entrepreneurship In India - An Overview.
*Dr. N. Ratna Kishore **E.Sheela
Assistant Professor, Acharya Nagarjuna University
Research Scholar, Acharya Nagarjuna University
Abstract: Women entrepreneurship is very important for economic growth of our country. It does not only contribute to improve
women situation in the society but also helps to improve economic situation of country. Not only country half of the world is women.
Educating a woman means educating a family. These two popular saying underscore the critical and timeless roles woman play in
society. In man oriented society, women wants to prove him and created equality and democratic approach. This paper focuses on the
rising trend of rationales for diverge women entrepreneurship,an extensive literature review is done on women entrepreneur,the
hurdles that they face, Suggestions for the growth of women entrepreneurs and the initiatives taken by the government to
support and encourage women in their endeavours, . It also discusses some of the successful women entrepreneurs of India.
Key Words: women entrepreneurship, rationales for diverge, hurdles, role of government.

Introduction:
The educated women do not want to limit their lives in the four walls of the house. They demand
equal respect from their partners. Women entrepreneurs are those women who take the lead and organise
the business or industry and provide employment to others. Accordingly, a woman run an enterprise
is defined as “an enterprise owned and controlled by a women having a minimum financial interest of
51% of the capital and giving at least 51%of the employment generated in the enterprise to women”.
Women entrepreneur constitute 10 % of the number of the number of entrepreneur in the country. They
constitute 50% of the population of our country with a lower literacy rate than men. This statistical fact
indicates that for the economic growth of the nation, women should not be encouraged to make their
share of economic contribution towards the country. One way of achieving is by making women come
out and become entrepreneurs. Many women in India have attained prominent or leadership positions,
rising to the highest echelonsin every walk of life -for example as entrepreneurs, industrialists, civil
servants, police officers,airline pilots, scientists, engineers. These women leaders are assertive, persuasive
and willing to take risks. They managed to survive and succeed in this cut throat competition with their
hard work, diligence and perseverance. Ability to learn quickly from her abilities, her persuasiveness, open
style of problem solving, willingness to take risks and chances, ability to motivate people, knowing how
to win and lose gracefully are the strengths of the Indian women entrepreneurs.
Review of Literature:
Meenu Goyal*; Jai Parkash( Sep 2011)they are present detail the concept of women entrepreneur–
Reasons women become entrepreneurs -Reasons for slow progress of women entrepreneurs in India -
suggestions for the growth of women entrepreneurs-Schemes for promotion & development of women
entrepreneurship in India-Case study of a women entrepreneur of Ludhiana.
Mr. Sanjay Manocha (Aug. 2012) he a study on concept of innovation and entrepreneurship has
been studied by the authors. The paper will also include examples of innovative entrepreneurs and how
the innovation in products/services helps the business in survival and growth in present globalised market
place.
Cohoon, Wadhwa & Mitchell, (2010), present a detailed exploration of men & women
entrepreneur’s motivations, background and experiences. The study is based on the data collected from
successful women entrepreneurs. Out of them 59% had founded two or more companies. The study
identifies top five financial & psychological factors motivating women to become entrepreneurs. These
are desire to build the wealth, the wish to capitalize own business ideas they had, the appeal of start-
264 Women Entrepreneurship In India - An Overview.

up culture, a long standing desire to own their own company and working with someone else did not
appeal them. The challenges are more related with entrepreneurship rather than gender. However, the
study concluded with the requirement of further investigation like why women are so much concerned
about protecting intellectual capital than their counterpart. Mentoring is very important to women,
which provides encouragement & financial support of business partners, experiences & well developed
professional network.
Tambunan, (2009), made a study on recent developments of women entrepreneurs in Asian
developing countries. The study focused mainly on women entrepreneurs in small and medium enterprises
based on data analysis and review of recent key literature. This study found that in Asian developing
countries SMEs are gaining overwhelming importance; more than 95% of all firms in all sectors on
average per country. The study also depicted the fact that representation of women entrepreneurs in this
region is relatively low due to factors like low level of education, lack of capital and cultural or religious
constraints. However, the study revealed that most of the women entrepreneurs in SMEs are from the
category of forced entrepreneurs seeking for better family incomes.
Mayilvaganan&Santhini (JAN2015) they discuss quite significant about the women entrepreneurs
in India an overview the concept, meaning, growth, problems and its solutions. He concluded finally
the growth and development of women entrepreneurs required to be accelerated because entrepreneual
development is not possible without the participation of women. Therefore a congenial environment is
needed to be created to enable women to participate actively in the entrepreneurial activities. There is a
need of government and non-government promotional and regulatory agencies to come forward and play
the supportive role in promoting the women entrepreneur in India.
Monika Dahiya, Habiba Abbasi they are focuses on the rising trend of women entrepreneurship
in India, the hurdles that they face and the initiatives taken by the government to support and encourage
women in their endeavours. It also discusses some of the successful women entrepreneurs of India.
Dr. V. S. Dhekale present a detailed exploration of it is observed that women enterprises facing
lot of problems in India. Indian women entrepreneurs are facing social, financial, personal, marketing,
technological, educational, competition, managerial etc. challenges. The country economic policy
environment must be favorable for organizations to achieve efficiencies in today’s global market. It should
enable the entrepreneurs to provide a magical touch to an organization, whether in public or private
or joint sector, in achieving speed, flexibility, innovativeness, and a strong sense of self-determination.
More than increasing national income by creating new jobs, entrepreneurship acts as a positive force in
economic growth by serving as the bridge between innovation and market place.
Objectives of The Study:
ŠŠ To study the rationales for diverge women entrepreneurship.
ŠŠ To examine the hurdles that women have to overcome for setting up their own business in India.
ŠŠ To know the role played by government to develop women entrepreneurs in India.
ŠŠ To suggest to appropriate suggestions increase women entrepreneurship in India.
Methodology:
This paper is descriptive in nature. Secondary data has been collected from various websites,
journals and research papers etc.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship In India - An Overview. 265

Rationales for Diverge Women Entrepreneurship:

The entry of women into business in India is traced out as an extension of their kitchen activities,
mainly 3P‘s, Pickle, Powder and Papad. But with the spread of education and passage of time women
started shifting from 3P‘s to modern 3E‘s i.e., Energy, Electronics and Engineering. A strong desire to do
something positive is an in built quality of entrepreneurial women, who is capable of contributing values
in both family and social life.
“Women are better at managing the budget and better at making key financial decisions that
impact the family such as a child’s education,” noted Master Card’s group head for Asia, Pacific and
the Middle East and North Africa. A recent survey in Asia found that when it comes to home finances,
women generally play a leading role.
Many studies have concluded that women started their own business for different reasons. The
reasons generally included the following:
ŠŠ Additional income to the family
ŠŠ Economic independence
ŠŠ Equal status in society
ŠŠ Establishing their own identity
ŠŠ Role model to others
ŠŠ More government policies and procedures
ŠŠ Education and qualification
ŠŠ Success stories of friend and relatives
ŠŠ Developing risk taking ability
ŠŠ Greater freedom and mobility
ŠŠ Desire for wealth
ŠŠ Family responsibility
Hurdles in The Path to Success of Women Entrepreneurs:
The problems and constraints experienced by women entrepreneurs have resulted in restricting
the expansion of women entrepreneurship. They have attained prominent positions and have broken
all the gender stereotypes. The women of today have proved themselves in almost every area. But still
the journey to this revolution has not been easy. Women have and still face obstacles along their path.
Challenges faced by women are:
Lack of support from family: The patriarchal set up of our society emphasizes that women should focus
on nurturing their relationships and fulfilling family obligations. It is because of the lack of support
from family that a large number of women fail to take the plunge even when they have the potential.
Aspirations of women are suppressed owing to the burden of meeting the expectations of their families
and fulfilling their obligations.
Gender difference: The greatest deterrent to women entrepreneurs is that they are women. A kind of
patriarchal- male dominant social order is the building block to them in their way towards business
success. Male members think it a big risk financing the ventures run by women.

ISBN: 978-93-5300-292-3 Technical Session - III

266 Women Entrepreneurship In India - An Overview.

Family problems: Women‘s family and personal obligations are sometimes a great barrier for succeeding
in business career. Only few women are able to manage both home and business efficiently, devoting
enough time to perform all their responsibilities in priority.
Many women take the training by attending the Entrepreneurial Development programme
without an entrepreneurial bent of mind. Women who are imparted training by various institutes must
be verified on account of aptitude through the tests, interviews, etc.
Social barriers: The traditions and customs prevailed in Indian societies towards women sometimes
stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another
and hinder women entrepreneurs too. In rural areas, they face more social barriers. They are always seen
with suspicious eyes.
Lack of raw material: The scarcity of raw materials, sometimes nor, availability of proper and adequate raw
materials sounds the death-knell of the enterprises run by women entrepreneurs. Women entrepreneurs
really face a tough task in getting the required raw material and other necessary inputs for the enterprises
when the prices are very high.
Limited managerial ability: Management has become a specialised job which only efficient managers
perform. Women entrepreneurs are not efficient in managerial functions like planning, organising,
controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited
managerial ability of women has become a problem for them to run the enterprise successfully.
Heavy production cost: High production cost of some business operations adversely affects the
development of women entrepreneurs. The installations of new machineries during expansion of the
productive capacity and like similar factors discourage the women entrepreneurs from venturing into
new areas.
Problem of finance: Women entrepreneurs stiffer a lot in raising and meeting the financial needs of the
business, Bankers, creditors and financial institutes are not coming forward to provide financial assistance
to women borrowers on the ground of their less credit worthiness and more chances of business failure.
They also face financial problem due to blockage of funds in raw materials, work-in-progress finished
goods and non-receipt of payment from customers in time.
Legal formalities:Lack of awareness about the financial assistance in the form of incentives, loans, schemes
etc. by the institutions in the financial sector. So the sincere efforts taken towards women entrepreneurs
may not reach the entrepreneurs in rural and backward areas.
Other problems: Lack of self-confidence, will-power, strong mental outlook and optimistic attitude
amongst women creates a fear from committing mistakes while doing their piece of work. The family
members and the society are reluctant to stand beside their entrepreneurial growth.
Role of govt to develop entrepreneur in India: In 1970s, there was a shift from welfare approach to
development approach that recognized the mutually reinforcing nature of the process of development.
The 80s adopted a multi-disciplinary approach with an emphasis on three coreareas of health, education
and employment. Women were given priorities in all the sectors including SSI sector. Government and
non - government bodies have paid increasing attention to women‘s economic contribution through self
employment and industrial ventures.
At present, the Government of India has over 27 schemes for women operated by different
departments and ministries. Some of these are:
ŠŠ Integrated Rural Development Programme (IRDP)
Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship In India - An Overview. 267

ŠŠ Khadi and Village Industries Commission (KVIC)

ŠŠ Working Women‘s Forum
ŠŠ Exhibitions for women, under promotional package for Micro&
ŠŠ Small enterprises approved by CCEA under marketing support
ŠŠ Empowerment and Livelihood in Mid Gangetic Plains‘
ŠŠ Training of Rural Youth for Self-Employment (TRYSEM)
ŠŠ Prime Minister‘s RojgarYojana (PMRY)
ŠŠ Entrepreneurial Development programme (EDPs)
ŠŠ Management Development programmes Women‘s Development Corporations (WDCs)
Marketing of Non-Farm Products of Rural Women (MAHIMA)
ŠŠ Assistance to Rural Women in Non-Farm Development (ARWIND) schemes
ŠŠ RashtriyaMahilaKosh
ŠŠ SIDBI‘s MahilaUdyamNidhi
ŠŠ SBI‘s Stree Shakti Scheme
ŠŠ NGO‘s Credit Schemes
ŠŠ Micro & Small Enterprises Cluster Development Programmes
ŠŠ (MSE-CDP).
ŠŠ National Banks for Agriculture and Rural Development‘s Schemes Rajiv Gandhi
MahilaVikasPariyojana (RGMVP)
ŠŠ Trade Related Entrepreneurship Assistance and Development (TREAD)
ŠŠ Working Women‘s Forum
ŠŠ Indira MahilaYojana Indira
ŠŠ Mahila Kendra
ŠŠ MahilaSamitiYojana
ŠŠ MahilaVikasNidhi
ŠŠ Micro Credit Scheme
The government of India has introduced the above schemes for promoting women entrepre-
neurship. The efforts of government and its deferent agencies are ably supplemented by NGOs that
are playing an equally important role in facilitating women empowerment. Despite concerted efforts
of governments and NGOs there are certain gaps. Of course we have come a long way in empower-
ing women yet the future journey is difficult and demanding.
Suggestions Increase Women Entrepreneurship In India:
It was suggested to treat women entrepreneurship as a great specific target groups in all major
development programs of the country. The govt should devise and diversify vocational training facilities
for woman to suit their changing needs and skills. The present day women have a desire to become
independent and they are aware of their rights and their capabilities. A woman is capable of not only
catering to the needs of her family but also competent to contribute to social and professional life. Women
should understand and implement the new way to balance work and life. Women entrepreneurs should

ISBN: 978-93-5300-292-3 Technical Session - III

268 Women Entrepreneurship In India - An Overview.

spend some time to study and observe the nature of challenges women face in business. Women should
make adequate preparation to face the challenges before starting the business. Women should attend
training programs, seminars,workshop and conferences. This may help to reducethe challenges they face
in business. Women should develop or keep contact with the Entrepreneur Business Networks. Mingle
with like-minded people interested in philanthropy and global poverty. Learn how impact investing
expands  opportunity for people living in poverty. Hear from an inspiring partner who is making an
impact in the lives of women and their families. Please consider bringing a table of friends or colleagues
to learn about Global Partnerships. 
References
yy Sanjay manocha, Innovation and Entrepreneurship in today’s scenario international journal of marketing, financial services &
management research vol.1 issue 8, august 2012, ISSN 2277 3622 New Delhi.
yy Menu goyal; jai parkash, Women Entrepreneurship in India-problems and prospects, international journal of multidisciplinary
research vol.1 issue 5, September 2011, issn 2231 5780.
yy Carmen niethammer, odebrecht, Women, Entrepreneurship and the opportunity to promote development and business
yy Monika Dahiya, Habiba Abbasi, Scope of Women Entrepreneurship in India, International journal on recent and innovation trends
in computing and communicationissn:2321-8169volume:4
yy Entrepreneurship in India national knowledge commission 2008
yy Kavita sangolagi, Mallikarjun Alagawadi, Women Entrepreneurs volume 3, issue 1 April 2016.
yy RamMohan Gali, status of women entrepreneurship in India, International journal of multidisciplinaryEducationalResearch,ISSN:2
2777881,impactactor3.318value:5.16value:2.286 volume 5, issue 5(2) MAY2016
yy Danish Ahmad Ansari, women entrepreneurship in India, ageist - April 2016 - vole 4 - issue 4 issn - 2348 - 6732
yy Sukhjinder Singh, Women Entrepreneurship - A Roadmap For Success In Modern Time In India, ISSN: 2349-5677 Volume 2, Issue
10, March 2016
yy Sarmistha Nandy and Shalini Kumar, Women Entrepreneurship in 21st Century India, Global Journal of Finance and Management.
ISSN 0975-6477 Volume 6, Number 9 (2014), pp. 967-976 © Research India Publications http://www.ripublication.com.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 A study on awareness of entrepreneurial programs and support among the woman
MBA graduates with respect to SPSR Nellore district
* P. Siva Prasad, **Dr. Suja S. Nair
*Scholar, **Associate professor, Head, Dept. of Business management, VikramaSimhapuri University Nellore,A.P.)
Abstract: Women are an important part of the society and play a significant role in nation building. Women
constitute around 48% of the population of India. Equal opportunities need to be provided to them in every sector be
it science, technology, business, etc. for the development of the nation. Their participation is a must in the economic
activities for increasing productivity, fostering economic growth and ensuring livelihood security to women which
have long remained a concern among policy makers. In this regard, one area having a significant impact on the
economy is entrepreneurship. In addition to contributing to the economy, entrepreneurship helps in the generation of
employment. This is of a vital importance especially in the state of Andhra Pradesh because of the bifurcation the newly
generated state has lost lot of industries and increase unemployment. It is a dangerous situation for the state’s economy,
financially and socially. In this condition Govt. of AP encouraged entrepreneurship development is the top priority.
The government & its institutions and non governmental institutions have providing tremendous opportunities to
opening up of enterprises for women. No doubt, the government and non governmental institutions has introduced many
schemes to promote entrepreneurship. Therefore, it is very essential to educate the women by providing formal as well as
entrepreneurial education. The present study deals and discussed about the awareness about opportunities and support given
by government and non government institutions to woman entrepreneurship among the MBA graduates from SPSR Nellore
district Andhra Pradesh. This is based on the primary data collected from the 100 women MBA graduates from the
SPSR Nellore district of Andhra Pradesh. The collected data were analyses and interpreted by using statistical tools like
classification, tabulation, percentage, scaling technique and ANOVA.The study identified and suggested that the educational,
governmental and non governmental institutions are failed to create awareness among educated women about sources,
opportunities, programs and support to becomeentrepreneurs. There should be increase the awareness level among women
MBA graduates about benefits, support and opportunities provided by governmental and non governmental institutions
for the entrepreneur development and there encouraged them to earn self income for the benefit of the country and state.
Key words: Entrepreneurship, education, government and non-government and woman MBA graduates

Introduction:
The first Prime Minister of India Pandit Jawaharlal Nehru has rightly pointed out that “To awake
the people it is the women who should be awakened first. Once she is on the move the family moves …
the nation moves”. There is a need for changing the mindset towards women so as to give equal rights
as enshrined in the constitution Recently, entrepreneurship has been given serious devotion due to its
importance on economic growth, job creation, sources of innovation and productivity. Thus, developing
countries like India encourage students to be involved in entrepreneurship and consider entrepreneurship
as a career choice. It is widely known that in the future, undergraduates are the important source of nascent
entrepreneurship. Part of the government effort to instill entrepreneurial spirit among students is to make
entrepreneurship subject compulsory to all students regardless of their field business administration of
study. Entrepreneurship is important to economic advancement, employment as well as a solution to the
excessive number of university graduates and social problems. Therefore, it is important to know how
much awareness regarding opportunities and support which they got from different sources to launch
a new start-up or entrepreneurship effort. There are still limited researches on this issue even though
entrepreneurship has been viewed as essential to economic development and growth (Fayolle and Linan,
2013; Karimi et al., 2014). In relation to this, there is a call to conduct a research to understand the
students’ awareness which motivates to become entrepreneur and also to contribute to the development
of understanding in this area.
In this dynamic world, women entrepreneurs are an important part of the global quest for sustained
economic development and social progress. In India, though women have played a key role in the society,
their entrepreneurial ability has not been properly tapped due to the lower status of women in the society.
It is only from the Fifth Five Year Plan (1974-78) onwards that their role has been explicitly recognized
270 A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district

with a marked shift in the approach from women welfare to women development and empowerment.
The development of women entrepreneurship has become an important aspect of our plan priorities.
Several policies and programs are being implemented for the development of women entrepreneurship
in India. The entrepreneur is a visionary and an integrated person with outstanding leadership qualities;
with a desire to excel, who gives top priority to research and development. An entrepreneur is one of the
important segments of economic growth. An entrepreneur is a catalytic agent of change and works for
the good of people. One who takes initiative, have innovative skills for innovation and who looks for high
achievements. “Women entrepreneur refers equally to someone who has started a one women business to
someone who is a principal in family business or partnership or to someone who is shareholder in a public
company which she runs”. The Government of India has defined a women entrepreneur is “an enterprise
owned and controlled by a women having a minimum financial interest of 51% of the capital and
giving at least 51% of the employment generated in the enterprise to women.”The economy of India is
witnessing a drastic change since mid 1991 with a new policy of liberalization, globalization, privatization
initiated by Indian Government. India has great entrepreneurial Potential. Women Entrepreneurship
has gained momentum in last three decades with the increase in number of women enterprises and their
contribution to economic growth. In this dynamic world woman entrepreneurs are an important part of
economic development and social progress.
Women Entrepreneurship Promotion in India
Women entrepreneurs have been designated as the new engines for growth and the risingstars
of the economies in to bring prosperity and welfare. A variety of stakeholders has pointed at them as an
important ‘untapped source’ of economic growth and development. The growth of the proportion of
women entrepreneurs in India has drawn the attention of both the academic and the development sector.
Donors, international public institutions, national and local governments, NGOs, private companies,
charities, knowledge institutes and business associations have initiated programs or policies to promote
and develop women’s entrepreneurship. They initiate programs for capacity-building of entrepreneurial
skills, strengthening women’s networks, provide finance and trainings, or design policies that enable more
and stronger start-ups and business growth. They all claim that women entrepreneurship is essential
for growth and development. Some even argue that women entrepreneurs’ contribution tends to be
higher than that resulting from entrepreneurial activity of men. In recent years, the general attention to
women and entrepreneurship in developing countries has increased to a great extent and the focus on this
‘untapped source’ of growth seems to be indispensable nowadays for development practitioners and policy
makers. However, despite this growing number of initiatives and resources made available top romote and
develop women’s entrepreneurship in developing countries, women still ownand manage fewer businesses
than men, they earn less money with their businesses that grow slower, are more likely to fail and women
tend to be more necessity entrepreneurs. Women Entrepreneurs are inspiring. An entrepreneur is someone
that organizes, manages, and assumes the risk of a business enterprise. Today, more women are breaking
free from the traditional, gender-specific roles and venturing into the business world. Not only are they
holding high corporate positions but they are also successful women entrepreneurs .The steady rise in
female entrepreneurs can be due to many different reasons, among those one of the reason is providing
awareness regarding opportunities and support given to woman in India.
Steps Taken by Government
Development of women has been a policy objective of the government since independence. In
80s three core areas of health, education and employment achieved utmost attention. Women are given

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district 271

priorities in all the sectors including SSI sector. Government and non government bodies have tried to
increase women’s economic contribution through self employment and industrial ventures.
1. The First Five-Year Plan (1951-56) envisaged a number of welfare measures for women.
Establishment of the Central Social Welfare Board, organization of MahilaMandals and the
Community Development Programmes were a few steps in this direction.
2. In the second Five-Year Plan (1956-61), the empowerment of women was closely linked with the
overall approach of intensive agricultural development programmes.
3. The Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported female education as a
major welfare measure.
4. The Fifth Five-Year Plan (1974-79) emphasized training of women, who were in need of income
and protection. This plan coincided with International Women’s Decade and the submission
of Report of the Committee on the Status of Women in India. In1976, Women’s welfare and
Development Bureau was set up under the Ministry of Social Welfare.
5. The Sixth Five-Year Plan (1980-85) saw a definite shift from welfare to development. It recognized
women’s lack of access to resources as a critical factor restricting their growth.
6. The Seventh Five-Year Plan (1985-90) emphasized the need for gender equality and empowerment.
For the first time, emphasis was placed upon qualitative aspects such as inculcation of confidence,
generation of awareness with regards to rights and training in skills for better employment.
7. The Eight Five-Year Plan (1992-97) focused on empowering women, especially at the Gross
Roots Level, through Panchayati Raj Institutions.
8. The Ninth Five-Year Plan (1997-2002) adopted a strategy of Women’s Component Plan, under
which not less than 30 percent of funds/ benefits were earmarked for women related sectors.
9. The Tenth Five-Year Plan (2002-07) aims at empowering women through translating the recently
adopted National Policy for Empowerment of Women (2001) into action and ensuring Survival,
Protection and Development of women and children through rights based approach.
10. During (2007-12) Govt. ensured that at least 33 percent of the direct and indirect beneficiaries of
all government schemes are women and girl children. A CSS training programme, STEP provides
training for skill up gradation to poor and asset-less women in traditional sectors of agriculture,
animal husbandry, dairy, fisheries ,handlooms, handicraft, Khadi and village industries, sericulture,
social forestry, and wasteland development.
11. In framing policies/schemes for the Twelfth Five Year Plan (2012-17) the special needs of women
must be taken due care of. The MahilaKisanSashaktikaranPariyojana (MKSP) which is a sub-
component of NRLM was recently launched to meet the specific needs of women farmers, and
help them achieve social, economic and technical empowerment. (Make in India - MUDRA
banks, Start-Up India initiative- programs)
12. MUDRA Bank Micro Units Development Refinance Agency(MUDRA)
Institutional Support for Women Entrepreneurs
The followings are some of associations or institutions which have played pivotal role for growth
and development of women entrepreneurs:
1. Mahila Udyam Nidhi , Mahila Vikash Nidhi , Micro Credit Scheme by SIDBI ( Small Industries
Development Bank of India)

ISBN: 978-93-5300-292-3 Technical Session - III

272 A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district

2. Dena Shakti scheme of Dena Bank, Udyogini Scheme of Punjab & Sind Bank are some of the
important schemes introduced by various Banks.
3. SBI and NABARD are also involved in development and financing of enterprises set up by
women entrepreneurs.
4. SIDO (Small Industries Development Organization), CWEI (consortium of women entrepreneurs
of India), WIT (Women India Trust) , SEWA (Self Employed Women Association), FIWE
(Federation of India Women Entrepreneurs) , Central Social Welfare Board (CSWB), National
alliance of young entrepreneurs (NAYE) are some of the organizations which are engaged in
providing technical, financial and marketing assistance to women entrepreneurs.
5. Schemes of Ministry of MSME
»» Trade related entrepreneurship assistance and development (TREAD) scheme for women
»» Mahila Coir Yojana
6. Schemes of Ministry of Women and Child Development
»» Support to Training and Employment Programme for Women (STEP)
»» Swayam Siddha
7. Kerala Government’s Women Industries Programme
8. Delhi Government’s Stree Shakti Project
9. Schemes of Delhi Commission for Women (Related to Skill development and training)
10. Prime Minister’s Employment Generation Programme(PMEGP)contemplates to provide self
employment to unemployed youths by extending financial assistance to start their units.
11. IFCI scheme of interest for women entrepreneurs whose main objective is to provide incentives
to women having business women and entrepreneurial skills, for their industrial development.
12. Promotional package for micro & small enterprises --MSME has formulated a scheme for women
entrepreneurs to encourage Small & Micro manufacturing units owned by women in their efforts
to enter overseas markets.
13. MahilaVikashSamabaya Nigam (MVSN) by Orissa Govt. to give training, loans to WSHG & to
market their products.
14. Misson Shakti scheme by Orissa Govt. to support bank, NGOs,WSHGs Who work for women
entrepreneurs.
15. Support to Training &Employment Programme (STEP) Orissa Govt. for coastal districts to train
the women to prepare hygienic dry fish & prawn.
Women Entrepreneur Associations
The efforts of government and its different agencies are supplemented by NGOs and associations
that are playing an equally important role in facilitating women empowerment. Details of Women
Entrepreneur Associations in India
1. Federation of Indian Women Entrepreneurs (FIWE)
2. Consortium of Women Entrepreneurs(CWEI)
3. Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP)
4. Association of Women Entrepreneurs of Karnataka (AWAKE)

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district 273

5. SelfEmployedWomen’s Association (SEWA)

6. Women Entrepreneurs Promotion Association (WEPA)
7. The Marketing Organisation of Women Enterprises (MOOWES)
8. Bihar MahilaUdyogSanghBiharMahilaUdyogSangh
9. Mahakaushal Association of Woman Entrepreneurs (MAWE)
10. SAARC Chamber Women Entrepreneurship Council
11. Women Entrepreneurs Association of Tamil Nadu (WEAT)
12. TiEStree Shakti (TSS)
13. Women Empowerment Corporation
Support from Andhra Pradesh Government
According to the state government of AP the women entrepreneurs mean those units established
as sole Proprietress or invariably having 100% share in Partnership/Private Limited.
ŠŠ 25% investment subsidy on fixed capital investment by women entrepreneurs, with a maximum
limit per unit of 30 lakhs.
ŠŠ Seed capital assistance to First Generation Entrepreneurs @15% of the Machinery cost, which
will be deducted from the eligible investment subsidy.
ŠŠ All other incentives as per Industrial Development Policy 2015-20
There are many associations to provide entrepreneurial support for the development of woman
entrepreneurs in Andhra Pradesh they are
1. Andhra Pradesh state financial corporation (APSFC)
2. Andhra Pradesh industries development corporation (APIDC)
3. Industrial development bank of India (IDBI)
4. Andhra Pradesh industrial infrastructural corporation (APIIC)
5. Andhra Pradesh woman cooperative development corporation( APWCDC)
6. Andhra Pradesh industrial and technical consultancy organisation LTD (APITCO)
7. District small scale industry development authority(DSSIDA)
Research Methodology
Exploratory and descriptive research has been adopted to conduct the present research. The
research was conducted on 100 women MBA graduates in the city by using convenience sampling
method. Primary data was collected with the help of structured questionnaire which had the following
dimensions:
1. Demographics of woman MBA graduates
2. Awareness of woman MBA graduates regarding the support and opportunities.
Objectives of The Study
1. To identify the schemes opportunities and support from various government and non government
institutions
2. To examine the awareness about the entrepreneurship developmental activities, policies, programs
and institutions among the woman MBA graduates.
ISBN: 978-93-5300-292-3 Technical Session - III
274 A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district

Hypothesis of The Study

ŠŠ H0: There are no significant differences among the woman MBA graduates regarding the awareness
about entrepreneurial support.
ŠŠ H1: There is a significant difference among the woman MBA graduates regarding the awareness about
entrepreneurial support.
Analysis and Discussions
This includes the analysis using cross tabs and ANOVA to test hypothesis and discuss the objectives
in this study.
Table 1.1 Descriptive cross tabs of demographics of woman MBA graduates and their awareness on entrepreneurial
opportunities and support

Awareness
Variables Total Mean
A (%) NAD (N) (M)
DA (%) SDA (%)
(%)
Rural 2(6) 2(6) 17(50) 13(38) 34 4.44
Place Semi- Urban 0 0 4(50) 4(50) 8 4.50
Urban 4(6) 3(5) 28(45) 23(44) 58 4.46
Rural 0 0 5(71) 2(29) 7 4.29
Education Semi- Urban 0 0 10(100) 0 10 4.00
Urban 6(7) 29(35) 45(54) 3(4) 83 3.54
OC 2(3) 24(39) 30(49) 5(9) 61 3.62
Caste OBC 2(2) 14(42) 17(56) 0 33 3.63
SC/ST 2(33) 0 4(67) 0 6 3.67
Lower 2(7) 0 24(56) 15(37) 41 4.35
STATUS Middle 4(7) 5(9) 27(47) 21(37) 57 4.58
Higher 0 0 2(100) 0 2 4.00
Illiterates 0 9(39) 12(52) 2(9) 23 3.70
Father’s Education Primary 1(10) 2(20) 7(70) 0 10 3.50
Secondary 0 6(33) 12(67) 0 18 3.67
College 4(16) 7(28) 14(56) 0 25 3.52
University 9(37) 0 12(50) 3(13) 24 3.75
Illiterates 0 6(40) 9(60) 0 15 3.50
Primary 0 2(11) 14(78) 2(11) 18 4.00
Mother’s
Secondary 6(19) 8(25) 18(56) 0 32 3.56
Education
College 14(42) 0 16(49) 3(9) 33 3.61
University 0 0 2(100) 0 2 4.00
Agriculture 6(10) 2(4) 30(48) 25(38) 63 4.54
Father’s
Business 0 0 8(50) 8(50) 16 4.50
Occupation
Employment 0 3(14) 12(57) 6(29) 21 4.57

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district 275

Awareness
Variables Total Mean
A (%) NAD (N) (M)
DA (%) SDA (%)
(%)
House Wife 4(7) 0 16(53) 10(40) 30 3.53
Mother’s Agriculture 10(32) 0 17(55) 4(13) 31 3.59
Occupation Business 8(34) 2(9) 11(48) 2(9) 23 3.45
Employment 0 3(19) 10(62) 3(19) 16 4.00
A: Agree, NADA: Neither agree nor disagree, DA: Disagree, SDA: Strongly disagree
From the descriptive table1.1 the researcher observed that the 50% of the respondents living in
rural areas (n=34) are disagreed (m=4.44) and 38% are strongly disagreed with their awareness on woman
entrepreneurial opportunities and support. The 50% of the respondents (n=8) from semi-urban disagreed
(m=4.50) and 50% are strongly disagreed with their awareness on woman entrepreneurial opportunities
and support. The 45% of the respondents (n=58) from urban are disagreed (m=4.46) and 44% of the
respondents are also strongly agreed with their awareness on woman entrepreneurial opportunities and
support.
From the table 1.1 the 71% of the respondents mostly study in rural areas (n= 7) are disagreed
(m=4.29) with their awareness on woman entrepreneurial opportunities and support. 100% of the
respondents mostly study in semi-urban areas (n=10) are disagreed (m=4) with their awareness on woman
entrepreneurial opportunities and support. 54% of the respondents mostly studied in urban areas (n=
83) are disagreed (m= 3.54) with their awareness on woman entrepreneurial opportunities and support.
From the table 1.1 the 49% of the respondents belongs to the caste OC (n=61) are disagreed
(m=3.62) with their awareness on woman entrepreneurial opportunities and support. 56% of the
respondents belongs to caste OBC (n=33) are disagreed (m=3.63) with their awareness on woman
entrepreneurial opportunities and support. The 67% of the respondents belongs to the caste SC/ST (n=6)
disagreed (m=3.67) and 33% of the respondents agreed that they have awareness on entrepreneurial
opportunities and support.
From the table 1.1 56% of respondents from lower income group (n=41) disagreed (m=4.35) with
their awareness on woman entrepreneurial opportunities and support. 47% of respondents from middle
income group (n=57) disagreed (m=4.58) with their awareness on woman entrepreneurial opportunities
and support. 100% of the respondents from higher income group (n=2) disagreed (m=4) with their
awareness on woman entrepreneurial opportunities and support.
From the table 1.1 52% of the respondents have illiterate fathers (n=23) and respondents
disagreed (m=3.70) with their awareness on woman entrepreneurial opportunities and support. 70% of
the respondents have primary educated fathers (n=10) and disagreed (m=3.50) with their awareness on
woman entrepreneurial opportunities and support. 67% of the respondents have secondary educated
fathers (n=18) and disagreed (m=3.67) with their awareness on woman entrepreneurial opportunities and
support. 56% of the respondents have college educated fathers (n=25) and disagreed (m=3.52) with their
awareness on woman entrepreneurial opportunities and support. 50% of the respondents have university
educated fathers (n=24) and disagreed (m=3.75) but 37% of the respondents are agreed that they have
awareness on woman entrepreneurial opportunities and support.
From the table 1.1 60% of the respondents have illiterate mothers (n=15) and respondents
disagreed (m=3.50) with their awareness on woman entrepreneurial opportunities and support. 78%

ISBN: 978-93-5300-292-3 Technical Session - III

276 A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district

of the respondents have primary educated mothers (n=18) and disagreed (m=4) with their awareness on
woman entrepreneurial opportunities and support. 56% of the respondents have secondary educated
mothers (n=32) and disagreed (m=3.56) with their awareness on woman entrepreneurial opportunities
and support. 49% of the respondents have college educated mothers (n=33) and disagreed (m=3.61) but
42% of the respondents agreed that they have awareness on woman entrepreneurial opportunities and
support. 100% of the respondents have university educated mothers (n=2) and disagreed (m=4) with
their awareness on woman entrepreneurial opportunities and support.
From the table 1.1 the 48% of the respondents have agricultural fathers (n=63) disagreed (m=4.54)
with their awareness on woman entrepreneurial opportunities and support. 50% of the respondents have
business fathers (n=16) disagreed (m=4.50) with their awareness on woman entrepreneurial opportunities
and support. 57% of the respondents have employment fathers (n=21) disagreed (m=4.57) with their
awareness on woman entrepreneurial opportunities and support.
From the table 1.1 the 53% of the respondents have household mothers (n=30) disagreed (m=3.53)
with their awareness on woman entrepreneurial opportunities and support. 55% of the respondents have
agricultural mothers (n=31) disagreed (m=3.59) but 32% of respondents agreed that they have awareness
on woman entrepreneurial opportunities and support. 48% of the respondents have business mothers
(n=23) disagreed (m=3.45) but 34% of the respondents agreed that they have awareness on woman
entrepreneurial opportunities and support. 62% of the respondents have employment mothers (n=16)
disagreed (m=4) with their awareness on woman entrepreneurial opportunities and support.
Table 1.2 ANOVA between respondents’ demographics and awareness

Variables
SS DF MS F SIG
IV DV
Place Awareness on .354 2 .177 .368 .693
Education entrepreneurial 8.664 2 4.332 10.972 .000*
Caste 5.662 2 2.831 6.650 .002*
opportunities
Status 2.187 2 1.094 2.369 .099
Father’s education 10.050 4 2.513 6.467 .000*
Mother’s education 11.606 4 2.902 7.797 .000*
Father’s occupation .262 2 .131 .272 .763
Mother’s occupation 7.002 3 2.334 5.608 .001*
*significance at 1% level
IV: Independent variable, DV: Dependent variable, SS: Sum of squares, DF: Degrees of freedom
MS: Mean sum of squares, SIG: Significance value.
From the ANOVA table 1.2 researcher identified that there is no significant differences (F=.368,
P>0.05) among the respondents’ (MBA woman graduates) place of residing with respect to the awareness
on woman entrepreneurial opportunities and support at 5% level of significance. This means irrespective
of respondents’ place of residing (rural, semi-urban and urban) all women MBA graduates have no
awareness on woman entrepreneurial opportunities and support.
Respondents’ place of education shows significant differences (F=10.972, P<.01) with respect
to the awareness on woman entrepreneurial opportunities and support at 1% level of significance. This
means according to the place of study (rural, semi-urban and urban) the woman MBA graduates have
differences in their agreement towards awareness on woman entrepreneurial opportunities and support.
Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A study on awareness of entrepreneurial programs and support among the woman MBA graduates with respect to SPSR Nellore district 277

The caste of woman MBA graduates shows significance differences (F=6.650, P<.01) with respect
to the awareness on woman entrepreneurial opportunities and support at 1% level of significance. This
means according to the caste (OC, OBC and SC/ST) the woman MBA graduates have differences in
their awareness about woman entrepreneurial opportunities and support.
Woman MBA graduates’ status does not show any significant differences (F=2.369, P>0.5) with
respect to the awareness on woman entrepreneurial opportunities and support at 5% level of significance.
This means irrespective of level of status the woman MBA graduate have no awareness on woman
entrepreneurial opportunities and support.
Father’s education has shows significantly differences (F=6.467, P<.01) among woman MBA
graduates about awareness on woman entrepreneurial opportunities and support at 1% level of significance.
Mother’s education has shows significantly differences (F=7.797, P<.01) among woman MBA graduates
about awareness on woman entrepreneurial opportunities and support at 1% level of significance. This
means the education levels of their parents shows greater differences among the woman MBA graduates
about awareness on woman entrepreneurial opportunities and support.
Father’s occupation does not shows any significant differences (F=.272, P>.05) among woman
MBA graduates about awareness on woman entrepreneurial opportunities and support at 5% level
of significance. This means irrespective of fathers’ occupation all woman MBA graduates don’t have
awareness on woman entrepreneurial opportunities and support. Mother’s occupation shows significant
differences (F=5.608, P<.01) among woman MBA graduates about awareness on woman entrepreneurial
opportunities and support at 5% level of significance. This means the mothers’ occupation has greater
differences among the woman MBA graduates about awareness on woman entrepreneurial opportunities
and support.
Implications and Conclusion
Based on the analysis of the study, it is found that most of the woman MBA graduates having very
less/no awareness on entrepreneurship programs by both government and non government institutions.
Hence, much attention is to be focused on educating and train them and conducting workshops towards
the entrepreneurship awareness by inserting entrepreneurial activities as mini - projects in their course
curriculum. The overall development of the nation depends on the entrepreneurship,which otherwise
depends on the industrialization. It is the responsibility of the educational institutions to develop the
awareness about the entrepreneurial opportunities and support from various sources. If we want to increase
the scale of entrepreneurs among the educated women we have to generate awareness and develop the
interest to become entrepreneurs. As such the increase in the entrepreneurial attitude will increasethe
number of prospective entrepreneurs, who in turn generate more employment and create national wealth.
The findings may not represent the whole population of woman MBA graduate students in SPSR Nellore
district. Further research may consider for the development of this issues.
References
yy Fayolle, A., &Liñán, F., 2013. The Future of Research on Entrepreneurial Intentions. Journal of Business Research 67(5), 663–666.
yy Indian Economic Survey (2016-17).
yy Karimi, S., Biemans, H. J. A., Lans, T., Mulder, M. &Chizari, M., 2014. The Impact of Entrepreneurship Education: A Study of
Iranian Students’ Entrepreneurial Intentions and Opportunity Identification. Journal of Small Business Management.
yy Madan Mohan, Rural Development and Education, OMRGS Publications, New Delhi
yy Sanjay Kaushik ; Challenges Faced by Women Entrepreneurs in India, International Journal of Management and Social Sciences
Research (IJMSSR) Volume 2, No. 2, February 2013.
yy Report of AP Economic Survey (2015-2016)

ISBN: 978-93-5300-292-3 Technical Session - III

 Women Entrepreneurship- The Way for Economic Empowerment
*U. Chandramouli, **A. Rajeswari,

*Assistant Professor, Department of Management Studies, PSCMR College of Engineering and Technology, Kothapeta,
Vijayawada-520001
**MBA II YEAR, PSCMR College of Engineering and Technology, Kothapeta, Vijayawada-520001

Abstract: Entrepreneurship for Women development is an essential part of human resource. In Comparison to other countries,
the development of women entrepreneurship is very low in India, especially in rural areas. However, middle class women are not
too eager to alter their role due to fear of social backlash. The progress is more visible among upper class families in urban areas.
This paper focuses on current status of women entrepreneurs in India. Any understanding of Indian women‘s identity,
especially for their contribution in emerging new paths, will be incomplete without a walk down the place of Indian history
where women have lived. The paper talks about the status of women entrepreneurs and the problems faced by them. It will
also suggest the way of eliminating and reducing hurdles of the women entrepreneurship development in Indian Context.
Key words: Advanced Economy, Political Dimensions,Mobility Constraints,Women Exploitation

Introduction:
Definition of Women Entrepreneur: The term entrepreneur has been derived from the French word
entreprendre means to undertake. The term entrepreneur may be defined as an entrepreneur is a person
who combines capital and labor for production.
According to Cantillion: entrepreneur is the agent who buys means of production at certain prices, in
order to sell at prices that are certain at the moment at which he/she commits him/her self to his cost.
Schumpeter’s Definition: The entrepreneur in an advanced economy is an individual who introduce
something new in the economy- a method of production not yet tested by experience in the branch of
manufacturing, a product with which consumers are not yet familiar, a new source of raw material or of
new markets and the like
Drucker’s Views on Entrepreneur : An entrepreneur is the one who always searches for change, responds
to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which
they exploit changes as an opportunity for a different business or different service”
Time immemorial, women are described as the better half of men. But in reality, the women in
developing countries do not tally with this description. It is well known fact that women have played
and continue to play a key role in conservation of basic life support systems such as land, water, flora
and fauna. Women have to play a dual role, as a housewife and as income earners. Women have the
burden of preparing food for the family, besides fulfilling their fundamental role of nurturing and caring
for the children and tending to elderly members of the household. Even then they suffer from being
economically and socially invisible. There is continued inequality and vulnerability of women in all fields
like socioeconomic, political, education, health care, nutrition etc.
Now a day educated women do not want to limit their lives in the four walls of the house. They
demand equal respect from their partners. However, Indian women have to go a long way to achieve
equal rights and position because traditions are deep rooted in Indian society where the sociological set
up has been a male dominated one.. The transformation of social fabric of the Indian society, in terms of
increased educational status of women and varied aspirations for better living, necessitated a change in
the life style of Indian women. She has competed with man and successfully stood up with him in every
walk of life and business is no exception for this. These women leaders are assertive, persuasive and willing
Women Entrepreneurship- The Way for Economic Empowerment 279

to take risks. They managed to survive and succeed in this cut throat competition with their hard work,
diligence and perseverance. Ability to learn quickly from her abilities, her persuasiveness, open style of
problem solving, willingness to take risks and chances, ability to motivate people, knowing how to win
and lose gracefully are the strengths of the Indian women Entrepreneurs. Women constitute nearly one
half of the world’s population having enormous potential but being underutilized or unutilized for the
economic development of the nation.
Entrepreneurship is necessary to initiate the process of economic development of both developed
and developing countries as it is the back bone of economy of any country. Entrepreneurship refers to
combining the available resources of production in such a new way that it produces the goods and services
more satisfactory to the customers. Entrepreneur is a catalytic agent of change. It is also instrumental in
sustaining the process of economic development. Every country tries to achieve economic development
for prosperity and better life standard of its people. Development has economic, social and political
dimensions and is incomplete without the development of women who constitute about 50 per cent
of total population. So, contribution of women is essential in economic activities for healthy nation
building. Women entrepreneur has been recognized during the last decade as an important untapped
source of economic growth. Women entrepreneurs create new jobs for themselves and others and by
being different solutions to management. In today Indian scenario when India is turning out to be an
economic power house the recent financial crisis which has affected countries has had its impact on the
minds of women as they have understood the need to earn more.
In the era of globalization the challenges are far greater for women entrepreneurs. They are playing
very important role in socio-economic development of all countries. Because of their participation, global
economy is being changed at present. All over the world, it is estimated that approximately one third of
the business organizations are owned by women. In India, the position is near about the same.
The precious contribution of women in the area of entrepreneurship can be summarized as:
1. Promotion of capital formation by mobilizing the ldle saving of the public
2. Creation of immediate employment so it helps to reduce unemployment problem
3. Promotion of balanced regional development
4. Encourage effective mobilization of capital and skill, which might remain unutilized
5. Promotion of India‘s export trade.

ISBN: 978-93-5300-292-3 Technical Session - III

280 Women Entrepreneurship- The Way for Economic Empowerment

Impediment to Women Entrepreneurship

1) Operational: Women entrepreneur in India not only struggle at the time of establishment of enterprises
but at operation stage also, they have lots to overcome with different functional difficulties. Usually
women faced two fold operational problems. One she has to overcome with problems of production
process like, scarcity of raw material, lack of technical skills, lack of utilities and infrastructure facility.
2) Management Problem: It is normally believed that women have low managerial skill. But in fact
women are stronger in more logic based skills though they are weaker in self-promotion and handling
frustration. The increasing number of female students and their excellent performance in management
education is a proof to the fact. They don’t lack managerial skills but they have less promotional stability
which they need to improve upon it.
3) Mobility Constraints: Women in India have got restricted mobility, our society is a conservative
society, and the career of women was limited to four walls of kitchen. Though women faced lots of
problems being mobile in entrepreneurial activity, the mobility problem has been solved to certain extent
by the expansion of education awareness to all.
4) Dual Responsibility: The most exploited individual of the day are the working women, as they have
to perform dual responsibility, one at work and another as family as mother of wife. The level of women
exploitation on family responsibility ground depends on her social dependence.
5) Risk-Bearing Ability: One pre-requisites of the entrepreneurial success is risk taking. It is normally
believe that women being feminist gender have low risk taking ability. A Manipuri woman lives a
protected life. The society feels that women do not have risk taking ability. They are being suppressed by

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship- The Way for Economic Empowerment 281

the protected environment and are not allowed most of the time to take any type of risk even if she is
willing or she has the ability to bear.
6) Unawareness of the Supports and Incentives: India being a developing country has made efforts at
both central as well as state level to solve this problem by way of introducing policy measures and promoting
NGOs. The government of India in its annuals often announces special growth and provision to assist
self-employment in women. But it has not worked out effectively and very few women entrepreneurs
are able to avail them. Despite the efforts the problem still exists as most of the women entrepreneurs in
the region have neither approach nor awareness about these policies due to low education level. Women
engage in this venue are unhappy with support system due to harassment from the officials and high
corruption. There is a strong need for attitudinal change because policies, programmes and seminars
alone cannot change the women status.
Advantages of Entrepreneurship among Women
Empowering women is a challenge. Micro enterprises can help to meet these challenges. Micro
– enterprises not only enhance national productivity, generate employment but also help to develop
economic independence, personal and social capabilities among women. Following are some of the
personal and social capabilities, which were developed as result of taking up enterprise among Women:
ŠŠ Economic empowerment
ŠŠ Improved standard of living
ŠŠ Self confidence
ŠŠ Enhance awareness
ŠŠ Sense of achievement
ŠŠ Increased social interaction
ŠŠ Engaged in political activities
ŠŠ Increased participation level in gram sabha meeting
ŠŠ Improvement in leadership qualities
ŠŠ Involvement in solving problems related to women and community
ŠŠ Decision making capacity in family and community
Economic empowerment of women by micro entrepreneurship led to the empowerment of
women in many things such as socioeconomic opportunity, property rights, political representation,
social equality, personal right, family development, market development, community development and
at last the nation development..
Conclusion:
Women are very good entrepreneurs, and prefer to choose the same as they can maintain work
balance in life. Even though we have many successful Women Entrepreneurs in our country, but it should
be cross-checked with the real entrepreneurs. These factors may vary from place to place and business to
business but women entrepreneurship is necessary for the growth of any economy whether it is large or
small. Entrepreneurship among women, no doubt improves the wealth of the nation in general and of
the family in particular. Women today are more willing to take up activities that were once considered
the preserve of men, and have proved that they are second to no one with respect to contribution to the
growth of the economy.

ISBN: 978-93-5300-292-3 Technical Session - III

282 Women Entrepreneurship- The Way for Economic Empowerment

References:
yy Aparna Basu (2004), Women‘s Empowerment and Self Help Groups, SHELTER, Human Settlement Management Institute, New
Delhi, Vol. VII, No. 1, January, 2004, pp. 13 – 15.
yy Banumathy S (November (2006), ―Self Help Groups and Bank Linkages‖, Kissan World, Vol. 32(11), p. 19
yy Arakeri Shanta, V., Abhinav, National Monthly Refereed Journal Of Research In Arts & Education Women Entrepreneurship in India.
1(3)
yy Carol Roth, Entrepreneurship: 5 Challenges facing Women Entrepreneurs
yy Goyal, P., & Yadav, V. (2014). To be or not to be a woman entrepreneur in a developing country? Psychosociological Issues in Human
Resource Management, 2(2), 68–78.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Poverty Alleviation through SHGs with Micro Finance
D. Syamala, B. Saritha
Research Scholar, Department of Economics, AchrayaNagarjuna University, Nagarjuna Nagar.
Abstract: One of the powerful approaches to women empowerment and rural entrepreneurship is the formation of Self
Help Groups (SHGs) especially among women. This strategy had fetched noticeable results not only in India and Bangladesh
but world over. Women being central to the entire development process and at the precursor of social transformation can be
demonstrated with many examples that could include Grameen Bank’s success, SHGs of ICICI Bank, ShakthiAmmas at HLL,
Cemex, Amul, the success of Avon, Mary Kay, and Tupperware in US and other parts of the world. Micro Finance as a tool of
poverty alleviation and women empowerment has gained acceptance in development dialogue the world over. There is an acute
need among the poor for credit, both for consumption and production, which often forms the declining line between survival
and succumbing to poverty. It has been found that besides food, credit is also needed for health, housing education. These needs
are also critical for survival (Zeller, 2000). The success of SHGs as a development tool depends on the availability of Micro
Finance. This paper tries to link all the pertinent points discussed above namely Micro Finance, SHGs, Women Empowerment
and Women Entrepreneurship. Access to credit has long been considered a major poverty allocation strategy in India. Although
various credit programmes have been introduced in the country, their impact has been proved infective. Much of this failure
was due to a lack of involvement by the people during any stage of the implementation of the programmes. Empowerment is a
process of challenge by which individuals or groups gain power and ability to take control over their lives. It involves increased
well-being, access to resources increased self-esteem and respect, increased participation in decision-making and bargaining
power and increased control over benefits, resources and own life. Self-help groups programme proved that it is an effective
tool for poverty alleviation programme. HGs which poor need for their basic requirement is not available in the formal credit
system. In these circumstances, HGs services not only fulfill their productive needs but also satisfy their consumption needs.
Overall HGs can help low income people to reduce risk, improve financial activities, raise productivity, increase their income
and improve the quality of their lives and empower them for economic growth in India. SHGs Programmes have become a
popular mechanism for poverty alleviation, financial inclusion in many developing countries including India. Empowerment
is the recent approach articulated by the third world Countries women. It seeks to meet women’s strategic gender needs
due to their subordinate position to men, through bottom up mobilization around practical gender need according to their
accepted role in society. It aims at increasing women’s power in terms of their self-reliance and internal strength to determine
choices in life and to influence the direction of change. The empowerment of women through SHGs would lead benefits not
only to the individual women but also for the family and community as a whole through collection action the development.
These SHGs have collection action. Empowering women is not just for meeting their economic needs but also more holistic
social development. The SHGs empower women and train them to take active part in socio-economic progress of the nation.
Key words: Poverty Alleviation, Micro Fiancé Poverty, women.

Introduction:
“In most of the developing countries today, more and more emphasis is laid on the need for
development of women and their active participation in the main stream of development process. It is
also widely recognized that apart from managing household, bearing children, rural women bring income
with productive activities ranging from traditional work in the fields to working’ in factories or running
small and petty businesses. They have also proven that they can be better entrepreneurs and development
managers in any kind of human development activities. Therefore, it is important and utmost necessary
to make rural women empowered in taking decisions to enable them to be in the central part of any
human development process. The empowerment of women also considered as an active process enabling
women to realize their full identity and power in all spheres of life.
For women to become a successful entrepreneur, she needs access to capital, technical and
managerial know-how and market. The essence to empower rural women lies in catalyzing appropriate
economic activities at the grass root level and creating new opportunities for them to earn higher income in
order to improve their standard of living. This objective could be accomplished by establishing enterprises
that are based on the locally available resources and preferably indigenous knowledge. Development
experience shows that gender inequalities are a major factor impeding progress towards the Millennium
Development Goals of poverty reduction. This is particularly true in rural areas, where women are generally
284 Poverty Alleviation through SHGs with Micro Finance

very involved in productive work but lack access to assets they need to play that role effectively. As a result
of this imbalance, rural women are often more vulnerable to poverty than men, and their limited ability
to secure assets independently makes them more likely to be negatively affected by ongoing changes in
rural markets and institutions. In developing country like India where approximately 400 million people
living below or close to the poverty line, could be roughly translated into 75 million household out of
which around 60 million are rural household. So poverty in India has predominantly a rural character.
Micro finance has emerged as a needful programme to cater to the needs of the most under
privileged people i.e., tribal, Dalits and Women. The major concern today is increasing poverty and there
is urgent need of empowering, enabling the most neglected sections of the society through organized
support to all poverty alleviation programmes. Micro finance is expected to play a pivotal role in poverty
eradication and employment generation. Emphasis here is commercial and co-operative banks provide
micro finance services to large number of poor people. Today India is facing major problem in reducing
poverty. Millions of rural poor do not have access basic savings and credit services that most people take
for granted and these make it much harder for the poor to rise out of poverty. Micro finance is considered
one of the most effective and flexible strategies in the fight against global poverty. Micro finance in India
started in the early 1980 with small efforts at forming self-help groups (SHG) to provide an access to
the much needed savings and credit services. The existing credit institutions and the initiatives taken
by the authorities have not helped the rural poor to improve their standard and welfare. With regard
to the provision of credit there seems to be a big gap between the requirement of rural people and their
convenience. Micro finance provides an opportunity for the banks to search rural poor in groups for
extending various financial services and ensure financial inclusion. It should not be viewed as a government
problem by the banks but as a desirable long term strategy for growth. India has witnessed tremendous
progress in micro financing during the recent years.
Review of Literature
1. Ramanathan (1993)3traces the origin of SHGs to the ineffectiveness of supervised rural credit
programs as felt by the members of Asia Pacific Rural and Agricultural Credit Association (APRACA) in
the workshop held in China in 1986. TheSixth general assembly of APRACA held in Nepal decided to
launch SHG linkage program. In Srilanka, some of the operating SHGs emerged voluntarily and others
took birth due to Self Help Promotional Institutions. While in the former, members belong to different
income groups, in the latter membership was given to specific target groups. It is observed that smaller
the group, viability is brighter and also better managed. The SHGs evolved many instruments to promote
thrift among members. They generated a common fund from internal savings to grant small emergency
loans. Some SHG supplemented the common fund with the seed money or contributions from self-
help promoting institutions (SHPIs). Upto 1993, the rate of loan recovery was around 90 percent. He
concluded that on the whole, the performance of SHGs was fairly well compared to other borrowers of
the formal banking system.
2. Shakuntala Narasimhan (1999)11 in her study argues that the five decades of economic
planning has not done much to improve the status of Women in India. The 40vital reasons leading to the
disadvantaged position of women are their fear, ignorance, powerlessness and vulnerability. The author
emphasizes the need for bringing about an attitudinal change among women as the most important step
towards empowerment.
Objectives:
1. To examine the nature of the micro finance activities under taken by the banks.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Poverty Alleviation through SHGs with Micro Finance 285

2. To analyze the role of banking institutions in rendering micro credit services to the poor people.
3. To examine the organizational structure, functioning and performance of the Self Help Groups
(SHGs) promoted by the government or non-government entities and analyse the socio-economic
profile of SHG members, their contribution to thrift and use of micro credit for income generation
or other household needs.
Methodology:
The primary data were collected by use of well-structured questionnaire along with personal
interview to interact effectively with the respondents for electing wide information. As par as secondary
data is concerned that magazine, journals, internet information have been relied up on. The primary
data collected on the study were analyses with the help of statistical tools and techniques such as % ages,
averages and likes to make the data presentable in a more effective.
Poverty Reduction through Microfinance
Table – 1Gender wise classification of respondents
Respondents in
Gender Percentage (%)
Number
Male 92 92%
Female 8 85%
Total 100 100%
Sources: secondary Data
(The above table is excluding S.H.G. members)
From the survey we can know that the 92% of male persons and only 8% of female person are
enjoying the loans from various banks (covered under survey)
Table-2 Education wise classification of respondents

Education Respondent Numbers Percentage%

Illiterate 13 13%
Below SSLC 33 33%
SSLC-PUC 36 36%
Graduation 18 18%
Total 100 100%
It can be seen from the above table from that 13% of the respondents represent illiterate, 33%
of respondents represent the qualification below SSLC, 36% of respondents represent the qualification
SSLC – PUC, and 18% of respondents are graduates. Thus all 100 respondents were chosen from across
different beneficiaries under the study.
Women Self-Help Groups
One of the powerful approaches to women empowerment and rural entrepreneurship is the
formation of Self Help Groups (SHGs) especially among women. This strategy had fetched noticeable
results not only in India and Bangladesh but world over. “Women self-help groups are increasingly being
used as tool for various developmental interventions. Credit and its delivery through self-help groups
have also been taken as a means for empowerment of rural women. This integrated approach, whereby,
credit is only an entry point, and an instrument to operationalize other aspects of group dynamics

ISBN: 978-93-5300-292-3 Technical Session - III

286 Poverty Alleviation through SHGs with Micro Finance

and management, also caters to the need for social intermediation of these groups. A self-help group
is conceived as a sustainable people’s institution that provides the poor rural women with space and
support necessary for them to take effective steps towards achieving greater control of their lives. The
SHG approach has proved successful not only in improving the economic conditions through income
generation but in creating awareness about health and hygiene, sanitation and cleanliness, environmental
protection, importance of education and better response for development schemes.
Financial Services for the Rural Poor
While the fortunes of the many of India’s biggest corporations are likely to shaped by 638365
villages in India, the commercial sector has traditionally avoided the rural areas, deeming it as non-
profitable and risky. This has led many of the 800 million poor to turn to local money lenders charging
36-72% interest rates or suffer without capital. It is estimated that poor needs around Rs.2000 billion.
Globally over a billion people are still without access to formal financial services and some 200 million
of them live in India. Microfinance, the provision of a wide range of financial services to the poor on
a sustainable basis, has proved to be immensely valuable. Access to financial services has allowed many
families throughout the developing world (and, indeed, in poorer parts of the developed world) to make
significant progress in their own efforts to escape poverty.
It has become clear that poor need access to money to send their children to school, to buy
medicines; they need financial services to reduce their vulnerability. As a result, worldwide, MFIs have
started developing and delivering a range of financial products. This reflects Millennium Development
Goals (MDGs) that offer broadly accepted, measurable indicators of poverty reduction that are focused
on poverty, education, health and empowerment.
Microfinance and Women Empowerment
Women in the rural areas are the catalyst of change and that is why its whole programme keeps
women in progress. In the women’s savings movement, rural women organized themselves into ‘thrift and
credit’ groups with one rupee saving a day and this mass movement, in which 58 lakh members saved more
than Rs. 800 crore is rotated internally and lent amongst members twice in a year as per the interest rates
fixed by the groups. While the savings was there among the SHGs, there was no channel of investment.
Now HLL has provided a window of opportunity to invest and earn. approaches to micro finance and
women’s empowerment: the financial sustainability approach, the integrated community development
approach, and the feminist empowerment approach. However, program evaluations revealed the need to
question the assumptions underlying all 3 approaches. In most programs, women benefited to a limited
degree. Many women did not control the loan use. Most women were engaged in low paid, traditionally
female activities, and increases in income were small. Resources and time invested in economic activity
were limited by responsibility for household consumption and unpaid domestic work. Micro finance
programs sometimes created domestic tension between spouses and loss of spousal income and support.
Group repayment pressures sometimes created pressures between women.
Micro finance and Poverty Reduction in India
Micro finance is the provision of financial services to low-income clients, including consumers
and the self-employed, who traditionally lack access to banking and related services. More broadly, it is
a movement whose object is “a world in which as many poor and near-poor households as possible have
permanent access to an appropriate range of high quality financial services, including not just credit but
also savings, insurance, and fund transfers.” Those who promote micro finance generally believe that
such access will help poor people out of poverty. The dynamic growth of the micro finance industry has

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Poverty Alleviation through SHGs with Micro Finance 287

been promoted not only by market forces but also by conscious actions of national governments, Non-
Governmental Organizations (NGOs) and the donors who view microfinance as an effective tool for
eradicating poverty.
Microf inance is considered to be an adequate tool for
Financing small scale activities/technological applications in the rural areas because of the
following features.
1. Provide credit for investment in small scale activities chosen by the poor people.
2. Empower the poor to build self confidence that I can do something.
3. Can pay for itself with the interest earned.
4. Allow to develop opportunities for self-employment to the underserved people.
5. Have the broadest utility and the least cost per beneficiary.
Role of Microfinance in Poverty Reduction:
Microfinance is about providing financial services to the poor who are not served by the
Conventional formal financial institutions - it is about extending the frontiers of financial service provision.
The provision of such financial services requires innovative delivery channels and methodologies. The needs
for financial services that allow people to both take advantage of opportunities and better management
of their resources. Microfinance can be one effective tool amongst many for poverty alleviation. However,
it should be used with caution -despite recent claims, the equation between microfinance and poverty
alleviation is not straight-forward, because poverty is a complex phenomenon and many constraints that
the poor in general have to cope with. We need to understand when and in what form microfinance is
appropriate for the poorest; the delivery channel, methodology and products offered are all inter-linked
and in turn affect the prospect and promise of poverty alleviation.
Conclusion;
Micro credit and micro finance have received extensive recognition as a strategy for poverty
reduction and for economic empowerment. Micro finance is a way for fighting poverty, particularly in
rural areas, where most of the world’s poorest people live rural development and poverty reduction are
commonly related to the issue of rural employment. Rural households livelihood strategies comprise
several options, including farming and non-farm activities, local self-employment and wage employment,
and migration. Micro finance has proven to be an effective and powerful tool for rural development
and poverty reduction. There are many benefits due to micro-finance towards women empowerment
and poverty alleviation, there are some concerns. First, these are dependent on the programmatic and
institutional strategies adopted by the intermediaries, second, there are limits to how far micro-credit
interventions can alone reach the ultra poor, third the extent of positive results varies across household
headship, caste and religion and fourth the regulation of both public and private infrastructure in the
context of LPG to sustain the benefits of social service providers.
References
yy Aryeetey, E. (Summer 2005), “Informal Finance for Private Sector Development in Sub-Saharan Africa”, Journal of Microfinance, Vol.
7, No. 1
yy Neera Burra, Joy Deshmukh-Ranadive and RanjaniK.Murthy, 2005, ‘Micro- Credit, Poverty and Empowerment: Linking the triad’
Sage Publications
yy ‘NABARD initiatives turn rural women into entrepreneurs’, The Hindu, Feb 20, 2004
yy Srinivasan, N (2009). Microfinance India: State of the Sector Report 2008. New Delhi, India: Sage Publications.

ISBN: 978-93-5300-292-3 Technical Session - III

 Problems And Prospects of Women Entrepreneurs in India
*Thurumella Ramanaiah **Dr. N. Ratna Kishor
*Research Scholar
**Assistant Professor, Dept. of Commerce and Business Administration, Acharya Nagarjuna University, Guntur.

Abstract: Before the 20th century, women were operating businesses as a way of supplementing income. The ventures
that these women undertook were not known as entrepreneurial at the time; many of them usually had to bow to their
domestic responsibilities. However, in a country like India where almost 51% of population is made up of women, the
number of enterprises run by women entrepreneurs is only 7.36% or out of 361.76 Lakh enterprises in the MSME sector,
only 26.61 Lakh have women at the top. Entrepreneurship is a rapidly rising concern of a modern competitive economy
and its contribution in economy is viably recognized worldwide. But the point to ponder is the fact that it is generally
perceived as a male-gendered concept in India. Women’s development has been considered the key to the overall sustainable
development of a nation. There are a number of socio-economic hurdles faced by the women while they attempt to venture
into setting up and running their own enterprises. The educated Indian women’s have to go a long way to achieve equal
rights and position because traditions are deep rooted in Indian society where the sociological set up has been a male
dominated one. The paper focused on status of Indian women entrepreneurs and the problems faced by them when they
march forward to make their destiny and to show their ability in the competitive world of business environment and women
entrepreneur–Reasons women become entrepreneurs -Reasons for slow progress of women entrepreneurs in India. Findings
of this study reveal that absence of balance between family and career, socio-cultural barriers, male dominated society,
illiteracy or low level of education, dearth of financial assistance, lack of technical know how, marketing and entrepreneurial
skills, lack of self-confidence and mobility constraints are major problems of women entrepreneurship development.
Key words: Entrepreneurs, Women Entrepreneurship, Problems, Govt Schemes.

Introduction:
Women entrepreneurs in India face challenges of cultural bias and lack of public safety, in addition
to pressures of balancing work, home and family. Enterprising women who raised a family as well as a
company, with love, laugher and patience. They never gave in or gave up, and carried on to build valuable
companies while also giving back to society. Breaking centuries of tradition; the Indian woman today has
not only embraced a life in the corporate world but has also begun to make her moves beyond a corporate
career and into Entrepreneurship. While a corporate career gives her the financial independence and
growth to substantiate her abilities, being an Entrepreneur takes her beyond that and into a world where
not only does she get an opportunity to carve a notch for herself but also make a difference. The hidden
entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the
role and economic status in the society. Skill, zeal, wills, knowledge and adaptability in business are the
five important determinants of women to emerge into business ventures. In India, although women have
been performing exceedingly well in different spheres of activities like academics, politics, administration,
social work and so on, but the entrepreneurial world is still a male dominated one. An entrepreneur is
a person who is involved in economic activity and takes an initiative to start a business with innovative
ideas. Entrepreneurship provides huge opportunities for self - expansion as well as serves the society. All
over the world, entrepreneurs provide vast employment opportunities by setting up Micro, Small and
Medium enterprises in urban, semi - urban and rural areas for uplifting the living standard of people.
All over the world, it is estimated that approximately one third of the business organizations are
owned by women. In India, the position is near about the same. The precious contribution of women in
the area of entrepreneurship can be summarized as:
1. Promotion of capital formation by mobilizing the idle saving of the public
2. Creation of immediate employment so it helps to reduce unemployment problem
3. Promotion of balanced regional development
Problems And Prospects of Women Entrepreneurs in India 289

4. Encourage effective mobilization of capital and skill, which might remain un utilized
5. Promotion of India‘s export trade
Entrepreneur:
An entrepreneur could be defined as a dynamic agent of change, who is motivated to use resources and
skills and to take risks to achieve results in a competitive market. -Joseph Schumpeter.
Entrepreneurship: The purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain, or earn profit by production and distribution of economic goods and
services. -A.H.Cole.
Its features are risk bearing, innovation, decision making, achievement orientation, accepting
challenges, creative personality and mobilizing resources.
Women Entrepreneurship
Women Entrepreneurs  can not only contribute to the GDP, but can also play a key  role  in
addressing societal challenges. However, the number of women entrepreneurs in India remains relatively
low. In India, a large percentage of  women  enterprises are micro enterprises that  women  undertake
as a forced economic activity. Women entrepreneurship is the process where women organize all the
factors of production, undertake risks, and provide employment to others. The definition of women
entrepreneurship has never been differentiated on the basis of sex and hence could be extended to women
entrepreneurs without any restrictions.
Women Entrepreneurship in India
It is estimated that presently women entrepreneurs comprise about 10% of the total entrepreneurs
in India. The term “Women Entrepreneurship” means, an act of business owner -ship and business
creation that empowers women economically, increases their economic strength as well as position in
society. Hence women-entrepreneurs have been making a considerable impact in all most all the segments
of the economy which is more than 25 percent of all kinds of business. In India “Entrepreneurship” is
verylimited amongst women especially in the formal sector,which is less than 5 percent of all the business.
Review of lecturer:
Vanitha E. and Dinesh Kannan R. (2017)they are studied Globalization is opening up the Indian
economy suddenly at a very high speed without the requires economic and social policies to provide
the much required safety net, women who have been involved with production in the traditional ways,
have to cope with numerous problems and yet try to avail of the opportunities which an open economy
promises.
Fatema Nusrat Chowdary (2017) this study aims to explore the opportunities which encourages
people to become entrepreneurs, in microcosm such extensive constrains related to growth and development
of entrepreneurship in Bangladesh. The outspread list of constrains and problems of entrepreneurship
development include personal, environmental- situational, judicial, economic and political.
Dr. C.S ubathra (2017) this study everywhere problem also travels along with prospect.
Entrepreneurship is of no exception to this. The condition will be more serious especially with the
women folk’s considered. In this paper, the researcher has attempted to study the problems of women
entrepreneurs in general and the problems of women tailor in Asaripallam area in particular.
Danish Ahmad Ansari (2016)understanding of Indian women‘s identity, especially for their
contribution in emerging new paths, will be incomplete without a walk down the place of Indian history

ISBN: 978-93-5300-292-3 Technical Session - III

290 Problems And Prospects of Women Entrepreneurs in India

where women have lived. Women entrepreneurs and the problems faced by them various motivating and
de-motivating internal and external factors of women entrepreneurship.
Methodology
Research design: The nature of the research is both exploratory and descriptive. It is investigative as the
future prospects for the development and role of women entrepreneurs and problems faced by women
entrepreneurs in India
Sources of data: This study is based on secondary source of data. The data collected from books, published
reports of RBI, NABARD, DWCRA, Census Surveys, SSI Reports,newspapers, literature review is
prepared by online available studies and journals. Major problem faced in conducting the study was the
non-availability of segregated data on women enterprises and lack of uniformity and consistency among
different data sources as there is no unique definition of woman entrepreneurs in India.
Objectives of the Study
ŠŠ To study the Problems faced by Women Entrepreneurs and current scenario of Indian Women
Entrepreneurs.
ŠŠ To know the future prospects for the development androle of women entrepreneurs in India.
Present Scenario of Women Entrepreneurs in India
Women represent approximately half of the total world population as well as in India also.
Women are the better half of the society. In our societies Indian women are treated as show pieces to
be kept at home. But now they are also enjoying the impact of globalization not only on domestic but
also on international sphere. Women come out of the four walls to contribute in all activities. A women
entrepreneur is increasing tremendously. The emergence as well as development of Womenentrepreneurs
is quite visible in India and their over- all contribution to Indian economy is also very significant In
India, 26.61 lakh enterprises are female - owned out 361.76 lakh enterprises in the MSME sectorwhereas
120.56 lakh employees are female out of 805 lakh employees as per the MSME annual report 2015-16.
As per business report 2014 and survey done by IFC, women – owned enterprises contributes 3.09% of
industrial output and employ over 8 million people 12 However, the growth of female – owned enterprises
in India is relatively lower when compared with the other developed and developing countries. As per the
report of Female Entrepreneurship Index by the Global Entrepreneurship and Development Institute,
in a survey of 77 countries,India ranks 70, just above Ethiopia, Iran and Ugandan which shows that in
India, there is no adequate environment for women entrepreneurship development and their growth.
Future of Indian Women Entrepreneurs:
Though there are many roadblocks in this journey of women entrepreneurs going uphill, still there
are many incentives which lurks women into taking the big leap. For the growth and development of
women entrepreneurs their active participation is required to be accelerated entrepreneurial development
of women. Hence, a congenial environment is needed to be created to enable women to participate actively
in the entrepreneurial activities. There is a need of Government, non- Government, promotional and
regulatory agencies to come forward and play the supportive role in promoting the women entrepreneur
in India. The Government of India, has finally realized that it cannot achieve the desired economic
growth by neglecting half of its population i.e. Women. The Government by devising its various policies
gives encouragement to women entrepreneurs in India. By providing various incentives, subsidies and
including ‘integration of women in the development’ through its five year plan, Government of India has
shown the positive steps that it has taken in empowering women. Apart from Government many Non-

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Problems And Prospects of Women Entrepreneurs in India 291

Governmental Institutions, Financial Institutions, Women Development Cells, SIDBI, ILO, FIWE and
such other institutions are also working towards empowering women.
Government Schemes for Women Empowerment
The government programme for women development began as early as 1954 in India but the
actual participation began only in 1974. At present, the Government of India has over 27 schemes for
women operated by different departments and ministries. Some of these are:
1. Integrated Rural Development Programme (IRDP)
2. Training of Rural Youth for Self-Employment (TRYSEM)
3. Prime Minister’s RojgarYojana (PMRY)
4. Women’s Development Corporation Scheme (WDCS)
5. Working Women’s Forum
6. Indira MahilaYojana
7. Indira Mahila Kendra
8. MahilaSamitiYojana
9. RashtriyaMahilaKosh
10. Indira PriyadarshiniYojana
11. SIDBI’s MahilaUdyam Nidhi
12. Entrepreneurial Development programme (EDPs)
13. Management Development progammes
14. Marketing of Non-Farm Products of Rural Women(MAHIMA)
15. Assistance to Rural Women in Non-Farm Development(ARWIND) schemes
16. Trade Related Entrepreneurship Assistance andDevelopment (TREAD)
17. MahilaVikas Nidhi
18. Micro Credit Scheme
19. SBI‘s Stree Shakti Scheme
20. NGO‘s Credit Schemes
21. Micro & Small Enterprises Cluster DevelopmentProgrammes (MSE-CDP).
22. National Banks for Agriculture and Rural Development‘s Schemes
23. Rajiv Gandhi MahilaVikasPariyojana (RGMVP)
24. Priyadarshini Project- A programme for Rural Women
25. Empowerment and Livelihood in Mid Gangetic Plains‘
26. NABARD- KFW-SEWA Bank project
27. National Mission for Empowerment of Women (NMEW)
Problems of Women Entrepreneurs
Traditional Mindsets :When a friend once announced that she would like to quit her job and set up her
own Art and Design business, instead of a pat on the back or a hearty congratulations, she got a raised
brow and a question that broke her confidence “You are a girl, what will you be able to do?” While a lot

ISBN: 978-93-5300-292-3 Technical Session - III

292 Problems And Prospects of Women Entrepreneurs in India

many women are breaking the shackles and moving out of their homes to work, setting up businesses is
still perceived to be a Man’s domain.
Aggression and Assertiveness: Most Indian women are known to be extremely adaptive but the aggression
and assertiveness that is required to get their need across has not been a known characteristic in them.
However this is once aspect that is changing with more and more women from urban areas that are
educated and have an exposure to society taking the initiative to start their own business.
Networking: An important aspect of running your own business is the ability to socialize within the
Entrepreneurial network to build contacts and win customers but very few Indian women step out of
their comfort zones to do so. If they do socialize, it is limited to the work they need to get done and not
to build relationships.
Prioritization expectations: Societal expectations that whatever a woman does, she should always
prioritize her family over everything else can prove to be a big deterrent for those running their own show.
Most women bow down to the pressure instead of working out a win-win situation.
Business mindedness: Unfortunately most women lack the shrewdness that is required while dealing
with their stakeholders. Part of this also stems from the fact that most women do not hold a long term
view of their business and do not have a clear picture of how they want their start up to grow.
Sustainability: Probably the most important aspect of turning an Entrepreneur is being able to sus-
tain your business. Most women are unable to carry through their ideas because of the short term
goals they set without thinking through the sustainability of their venture and also partly due to the
priorities they are forced to change when it comes to family.
Safety and Security: In today’s times, probably this is the biggest obstacle for women in India. The
security blanket is at its thinnest thus making women hesitate to take on roles that demand long hours
and interactions with a world of strangers.
Family stress: Women in India are very emotionally attached to their families. They are supposed to
attend to all the domestic work, to look after the children and other members of the family. They are over
burden with family responsibilities like extra attention to husband, children and in laws which take away
a lots of their time and energy.
Social barriers: The traditions and customs prevailed in Indian societies towards women sometimes
stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another
and hinder women entrepreneurs too.
Shortage of raw materials: Neither the scarcity of raw materials, sometimes nor, availability of proper and
adequate raw materials sounds the death-knell of the enterprises run by women entrepreneurs. Women
entrepreneurs really face a tough task in getting the required raw material and other necessary inputs for
the enterprises when the prices are very high.
High cost of production: Several factors including inefficient management contribute to the high cost of
production which stands as a stumbling block before women entrepreneurs. Women entrepreneurs face
technology obsolescence due to non-adoption or slow adoption to changing technology which is a major
factor of high cost of production.
Exploitation by middle men: Since women cannot run around for marketing, distribution and money
collection, they have to depend on middle men for the above activities. Middle men tend to exploit them
in the guise of helping. They add their own profit margin which results in less sales and lesser profit.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Problems And Prospects of Women Entrepreneurs in India 293

Lack of self-confidence: Women entrepreneurs because of their inherent nature, lack of self-confidence
which is essentially a motivating factor in running an enterprise successfully. They have to strive hard to
strike a balance between managing a family and managing an enterprise.
Balance between family and career: Women in India are very emotionally attached to their home and
families. They are supposed to attend to all the domestic work, to look after the children and other family
members. They are overburdened with family responsibilities like taking care of husband, children and
in laws which takes away a lot of their time and energy. Male dominated society: Even though our
constitution speaks of equality between genders, male superiority is still the order of the day. Women are
not treated equal to men. Their entry into business requires the approval of the head of the family who is
mostly a male member. Entrepreneurship has traditionally been seen as a male task. All these hamper the
growth of women entrepreneurs.
Illiteracy or low level of Education: Women in India are lagging far behind in the field of education.
Even after more than 60 years of independence many women are still illiterate. Due to lack of proper
education, most women entrepreneurs remain in dark about the development of new technology, new
methods of production, marketing, networking and other governmental support which will encourage
them to rise in the field of management.
Absence of financial assistance: Women entrepreneurs suffer a lot in raising and meeting the financial
needs of the business. Bankers, creditors and financial institutes do not come forward to provide financial
assistance to women borrowers on the ground of their less credit worthiness. They also face financial
problem due to blockage of funds in raw materials, inventory, work-in-progress, finished goods and non-
receipt of payment from customers in time.
Lack of Technical knowhow: Management has become a specialized job which only efficient managers
perform. Women entrepreneurs sometimes are not efficient in managerial functions like planning,
organizing, controlling, directing, motivating, recruiting, coordinating, and leading an enterprise.
Marketing Skills: Since most women cannot run around for marketing, distribution and money
collection, they have to depend on middle men for the above activities. Middle men tend to exploit them
in the appearance of helping.
Entrepreneurial Skill: Lack of entrepreneurial aptitude is a matter of concern for women entrepreneurs.
They have limited entrepreneurial abilities. Even after attending various training programmes on
entrepreneurship women entrepreneurs fail to overcome the risks and troubles that may come up in an
organizational working.
Mobility Constraints: Women mobility in India is highly limited and has become a problem due to
traditional values and limited driving skills. Moving alone and asking for a room to stay out at night for
business purposes is still looked upon with suspicious eyes.
Limited Managerial Skills: Skills Management has developed a specific job which performs only capable
managers. Due to absence of proper knowledge women entrepreneurs not successes in managerial
responsibility like planning, managing, directing, staffing,controlling, coordinating, monitoring,
motivating etc. of a business enterprise. Hence, less and limited managerial skills of rural women has
become a problem for them to run the business successfully.

ISBN: 978-93-5300-292-3 Technical Session - III

294 Problems And Prospects of Women Entrepreneurs in India

Findings:
ŠŠ Family support and self-depend is most prominent influencing factors to start the business.
Women entrepreneurs mainly depend on personal loan as a source of finance, spouse income and
personal savings are another important source of finance.
ŠŠ Majority of respondents are not aware about the various schemes introduced by the government
to support them. And they would not enjoy any financial assistance from the Government. This
is one of the indications of slow growth of women entrepreneurship.
ŠŠ Self-depend is one of the important benefits acquired by the women entrepreneurs. Social status
also considered as important benefit. Women entrepreneurs mainly spend their earnings for
meeting family expenses. And they also concentrated on personal savings.
ŠŠ The main self-sufficiency problem faced by the women entrepreneurs is excessive tension. And the
social problem is male dominance. The main financial problems faced by many respondents are
shortage of capital and shortage of working capital. They also face tough competition as economic
problem. Majority of women entrepreneurs are highly satisfied with their business. This is a good
indication for their improvement.
Suggestions for Improvement
There should be a continuous attempt to inspire,encourage, motivate and co-operate women
entrepreneurs. Government should encourage and support women by providing infrastructural facilities,
finance,training programs, skill development programs etc.
ŠŠ An Awareness programme should be conducted on a mass scale with the intention of creating
awareness among women about the various areas to conduct business. Organize training
programmes to develop professional competencies in managerial, leadership, marketing, financial,
production process, profit planning, maintaining books of accounts and other skills. This will
encourage women to undertake business.
ŠŠ Vocational training to be extended to women community that enables them to understand the
production process and production management. A Women Entrepreneur Guidance cell may be
set up to handle the various problems of women entrepreneurs.
ŠŠ Skill development to be done in women’s polytechnics and industrial training institutes. Skills are
put to work in training-cum-production workshops.
ŠŠ Finance is the first major problem for women. The banks and other financial institutions should
provide loan to the women who are willing to do business without lengthily procedure. Hence the
government can provide interest free loans, capital subsidy, power tariff subsidy, tax concessions
and marketing assistance to encourage women entrepreneurship.
ŠŠ Marketing their products is one of the main problems for women entrepreneurs. Hence women
co-operative societies can be started to procure the products from women entrepreneurs and they
can help them in selling their products at reasonable prices.
ŠŠ Most of the women have entered in to entrepreneurship only after their marriage. Unmarried
women can be more successful than married women, in entrepreneurship business if they are
properly trained. Hence the govt. can conduct entrepreneurial training programmes in colleges at
least once in a month. This will motivate more young women to enter into business of their own.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Problems And Prospects of Women Entrepreneurs in India 295

ŠŠ National commission for self-employed women recommended that where raw materials are not
easily accessible, alternative channels should be identified through which good quality of raw
material would be procured at reasonable prices.
ŠŠ The Government can provide electricity charges at low cost without power failure which will
make women entrepreneurs to gain more in their business.
Conclusion
The emergence of women entrepreneurs and their contribution to the national economy is quite
visible in India. The glass ceilings are shattered and women are found to be indulged in every line of
business from papad to power cables. Even though we have many successful Women Entrepreneurs in our
country, but as we have a male dominated culture there are many challenges which women entrepreneurs
face from family & Society. Indian entrepreneurs are more about overcoming barriers, obstacles, inspiring
& surmount in their fields. Entrepreneurship is one of the important segments of economic growth.
Innovation is a key factor that an entrepreneur brings in an overall change through innovation for the
maximum social good. The growth of entrepreneurship particularly in the small scale sector can be traced
to the Second World War boom which brought many enterprising people from various walks of life.
Bibliography:
yy Dhameja S K (2002) , Women Entrepreneurs : Opportunities, performance, problems, Deep publications (p) Ltd., New Delhi, p 11.
yy Rao PadalaShanmukha (2007) “Entrepreneurship Development among Women: A case study of self-help Groups in Srikakulam
District, Andhra Pradesh” The Icfai Journal of Entrepreneurship Development Vol.1V No. 1.
yy Jawaharlal Nehru and Shubhra Bhardwaj, Spectrum: A Journal of Multidisciplinary Research Vol.2 Issue 7, July 2013, ISSN 2278-
0637.
yy A.M. MahaboobBasha, K. Sai Pranav, , R.V.S.S Nagabhushana Rao, K. Madhavi and P. Sri Sudha, Research Journal of Management
Sciences Vol.2(10), 1-5, October (2013)
yy Mrs.Ramandeep Kaur “Problems and prospects of women entrepreneurs in India”the Business Age July 2016 ISSN: 2455-9423.
yy B. Parimala Devi “Problems and Prospects of Women Entrepreneurship in India” International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064 Volume 3 Issue 9, September 2014.
yy Amutha, D.”Enterprise Involvement of Women Entrepreneurs’, Research on Humanities and Social Sciences, Vol. 1, 2011.
yy Goyal Jai Parkash“Women Entrepreneurship In India-Problems And Prospects Meenu” International Journal of Multidisciplinary
Research Vol.1 Issue 5, September 2011, ISSN 2231 5780
yy Sonu Garg, Dr. ParulAgarwa ‘Problems and Prospects of Woman Entrepreneurship – A Review of Literature’ IOSR Journal of Business
and Management (IOSR-JBM)e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 1. Ver. VI (Jan. 2017), PP 55-60.
yy Satpal, RupaRathee and PallaviRajain ‘Women Entrepreneurship: Challenges in the Present Technological Era’International Journal of
Advance Industrial Engineering ISSN 2320 –5539 Vol.2, No.2 (June 2014).
yy Ledid Bin Abdul Khader“The Problems and Prospects of Women Entrepreneurs with Special Reference to Trissur District”IOSR
Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 3. Ver. IV (Mar.
2017), PP 85-92.
yy G.Henry James Dr. K. Satyanarayana ‘problems andProspects Women entrepreneurship in India- problems andProspects’International
Journal of Academic Research ISSN: 2348-7666 Vol.2, Issue-2(8), April-June, 2015.
yy Danish Ahmad Ansari Women Entrepreneurship in India (An empirical study) AEIJST - April 2016 - Vol 4 - Issue 4 ISSN - 2348 –
6732.
yy Vanitha E. Dinesh Kannan R. Women Entrepreneurs in the Era of GlobalizationResearch magma An International Multidisciplinary
Journal ISSN No- 2456-7078 Volume-1, Issue-4, June-2017.
yy Dr. C.Subathra ‘Problems of women entrepreneurs - with special reference to tailors in asaripallam, kanyakumari district’ International
Journal of ResearchGranthaalayahVol.5 (Iss.2): February, 2017] ISSN- 2350-0530(O), ISSN- 2394-3629.
yy Deepa Vinay, Divya ‘Singh Status and Scope of Women Entrepreneurship’ Universal Journal of Management 3(2): 43-51, 2015.
yy T.Swetha, Dr.K.Venugopal Rao ‘Entrepreneurship in India’ International Journal of Social Science & Interdisciplinary Research ISSN
2277 -3630, IJSSIR, Vol. 2 (7), JULY, 2013.
yy P.M.SirumalarRajam, Dr.K.V.Soundararaja ‘Problems Faced by Women Entrepreneurs’International Journal of Research -
Granthaalayah Vol.4 May, 2016 ISSN- 2350-0530(O) ISSN- 2394-3629(P).

ISBN: 978-93-5300-292-3 Technical Session - III

 A Study on Problems Faced by Women Entrepreneurs in Rural Areas
(With Special Reference to Chittoor District, Andhra Pradesh)

*V. Murali, **Bhagyaraj. A

*Assistant Professor,Dept. Management Studies, KKC Institute of PG Studies – Puttur.
**Research Scholar, Dept. Management Studies Sri Venkateswara University, Tirupati

Abstract: This paper is an attempt to examine the possibilities of exploiting potential women entrepreneurs in Chittoor District,
Andhra Pradesh from the point of view of availability of some indigenous resources and the wide scope from entrepreneurship
development programme as is envisaged in the Government policy to support first generation entrepreneurs through training, financing,
etc. The case for the development of women entrepreneurs is particularly strong in an underdeveloped state like Andhra Pradesh.
Key words: Women Entrepreneurship, Challenges, Development, Chittoor District

Introduction
Women and business were considered as exclusive terms. Once industrialisation is historically
destined to be the main plank of modernisation, women cannot deprive themselves of the economic
opportunities. Of course, starting business is a major challenging task for women. It envisages revision
and virtual battling with barriers outside and complexes within. The Economic Times, writing on a few
successful women entrepreneurs stated that “They are storming what is definitely that last bastion of male
supremacy”.
Women in traditional societies are still confined to the four walls of home, children and family
rituals. In a male dominated society women are not treated as equal partners. In advanced countries of
the world, there is no phenomenal increase in the number of self-employed women after World War II.
Today, Women are at a historical compulsion to revise and redefine their values and roles at home
and outside. A new economy, a new social order, and new ways of thinking, largely fashioned by science
and technology, have emerged. The future belongs only to those who with assurance could shake hands
with the widening global economy and adapt themselves to the faster pace of technological changes.
The Concept of Women Entrepreneurship
According to Schumpeter an entrepreneur is an innovating individual who introduces something
new into the economy. However, such innovators are rarely found in the undeveloped countries. What
is primarily need in these countries per se are not innovators, but initiators. In the Indian context,
entrepreneur is more an adapter and initiator than a true innovator. Any women or group of women
which innovates, imitates or adapts an economic activity may be called Women entrepreneur.
“You can tell the condition of a nation by looking at the status of its women” - Jawaharlal Nehru
According to government of India, a women entrepreneur is defined as “an enterprise owned and
controlled by a woman and having a minimum financial interest of 51%of the capital and giving 51% of
the employment generated in the enterprise to women.”
In many countries of the world women entrepreneurs have been making a significant impact in
all segments of the economy. The areas chosen by them are retail trade, restaurants, hotels, education,
cleaning, insurance and manufacturing.
They had made their business for the following reasons.
1. They want new challenges and opportunities for self-fulfilment.
A Study on Problems Faced by Women Entrepreneurs in Rural Areas 297

2. They want to prove their mettle in innovative and competitive jobs.

3. They want the change to control the balance between their family responsibilities and their
business lives. Duna Lavoie a professor of entrepreneurship, Montreal observes that, “Women
business owners hire an average of two or three employees, whereas men are more likely to have
nine employees or more. Often, a micro business fits a women’s life style. Expansion might mean
a loss of control or disruption might mean a loss of control or disruption in the amount of time
she invests in other facets of her life. She may also want to oversee and control every aspect of her
business and may feel she will lose that opportunity if she grows to the point where she cannot”.
Motivational Factors for Women Entrepreneurship:
Generally, The traditional view of entrepreneur being born and not made, largely ignored
environmental influences of Indian women on women entrepreneurs. The type of situations encountered
and the social groups to which individual relate should be taken into consideration. Varied motivation need
and interests plunge in women entrepreneurs for establishing an enterprise. The most dominant motives
are fulfilment of ambition and pursuits of own interest in evident in almost all women entrepreneurs.
Factors that normally make women to be entrepreneurs include:
1. Economic needs ( To earn Money)
2. As a challenge to satisfy some of their personality needs; (Power, Achievement and Novel
Experience)
3. Educated Women utilising their knowledge gained;
4. Family occupation ( Second generation entrepreneurs); and
5. As a leisure time activity
Government programmes for the Development of Women Entrepreneurs
The constraints to women’s participation in main stream development programmes can be
identified and measured to overcome them, the extra investments will have a much larger pay off for
the women involved.At present, the Government of India has over 27 schemes for women operated by
different departments and ministries. Some of these are:
1. Integrated Rural Development Programme (IRDP)
2. Khadi And Village Industries Commission (KVIC)
3. Training of Rural Youth for Self-Employment (TRYSEM)
4. Prime Minister„sRojgarYojana (PMRY)
5. Entrepreneurial Development programme (EDPs)
6. Management Developmentprogammes
7. Women’s Development Corporations (WDCs)
8. Marketing of Non-Farm Products of Rural Women (MAHIMA)
9. Assistance to Rural Women in Non-Farm Development (ARWIND) schemes
10. Trade Related Entrepreneurship Assistance and Development (TREAD)
11. Working Women’s Forum
12. Indira MahilaYojana
13. Indira MahilaKendra

ISBN: 978-93-5300-292-3 Technical Session - III

298 A Study on Problems Faced by Women Entrepreneurs in Rural Areas

14. MahilaSamitiYojana
15. Mahila Vikas Nidhi
16. Micro CreditScheme
17. RashtriyaMahilaKosh
18. SIDBI„sMahilaUdyamNidhi
19. MahilaVikas Nidhi
20. SBI„s Stree Shakti Scheme
21. NGO„s Credit Schemes
22. Micro & Small Enterprises Cluster Development Programmes (MSE-CDP).
23. National Banks for Agriculture and Rural Development„s Schemes
24. Rajiv Gandhi MahilaVikasPariyojana (RGMVP)
25. Priyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid
Gangetic Plains„
26. NABARD- KfW-SEWA Bank project Exhibitions for women, under promotional package for
Micro & Small enterprises approved by CCEA under marketing support.
The efforts of government and its different agencies are ably supplemented by NGOs that are
playing an equally important role in facilitating women empowerment.
Women Entrepreneurship in Chittoor District – Andhra Pradesh
Chittoor District is a district in Rayalaseema region of the Indian state of Andhra Pradesh. The
district headquarters is located at Chittoor. It has a population of 4,170,468 according to 2011 census
of India. The district occupies an area of 15,359 square kilometres (5,930sqmi). According to the2011
censusChittoor district has apopulationof 4,170,468. Itspopulation growth rateover the decade 2001–
2011 was 11.33%.Chittoor has asex ratioof 1002femalesfor every 1000 males,and aliteracy rateof 72.36%.
In Chittoor district there is very wide scope for ancillary development as it has a good number
of large/medium scale industries. At present there are 84 large/medium scale industries workers in the
district which require a good lot of ancillary items of different varieties. Presently they are getting either
from Hyderabad or from Madras and Bangalore. It is reported that all the fruit processing industries
required a number of items as ancillaries which could be very well manufactured in small scale industries.
Carriage workshop is an important large scale unit which requires a good number of ancillary units,
which is located at Tirupathi, Renigunta Road. This is one of the major workshops of the Indian Railways
undertaking periodical repairs to passenger coaches.
Thirty years back there was plenty of water in Chittoor district and the temperature was below
30 degree in summer. Today waterless life, soaring mercury, unemployment, poverty and backwardness
continue to be nagging problems in Chittoor. Politicians and planners are clueless to put the district on
the development track again. Distribution of subsidy has created a mass of idle energy across the state
as people lose interest in entrepreneurship and look for loan waivers and freebies. The number of willful
defaulters in the district is at the increase. Chittoor district grows ground nut, jowar, ragi, millets, horse
gram, red gram, cowpea and bajra etc. The Pungnur block is famous for its famous tamarind. Nearly 5000
families are engaged in preparing tamarind products in Pungnur. There is a famous indigenous cow called
Pungnurbreed. Pungnur breed is very beautiful and small in size. It gives 3 to 5 litres of rich quality milk

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A Study on Problems Faced by Women Entrepreneurs in Rural Areas 299

per day. There is an urgent need to save this exotic pungnur breed from extinction. This climate resistant
cow can be a great help for thousands of poor families in Chittoor district.
Women as entrepreneurs in Andhra Pradesh Women owned businesses are highly increasing in
the economies of almost all States of the Nation. The hidden entrepreneurial potentials of women have
gradually been changing with the growing sensitivity to the role and economic status in the society.
Skill, knowledge and adaptability in business are the main reasons for women to emerge into business
ventures. ‘Women Entrepreneur’ is a person who accepts challenging role to meet her personal needs
and become economically independent. A strong desire to do something positive is an inbuilt quality
of entrepreneurial women, who is capable of contributing values in both family and social life. With
the advent of media, women are aware of their own traits, rights and also the work situations. They
are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still
exploring new avenues of economic participation. In India, although women constitute the majority of
the total population, the entrepreneurial world is still a male dominated one. Women in advanced nations
are recognized and are more prominent in the business world.
Rural Industries
Rural industries are playing a vital role in the development of rural areas
which is generally associated with agriculture. Any industry located in rural area where the population
of which does not exceed 10,000 which intends to manufacture any goods and renders services with
or without using power, in which fixed capital investment per head does not exceed Rs. 15,000 can be
considered as rural industry. They can start an industry in Hand made papers, Bee keeping, Black smiths,
Carpentry, Biogas, Palmgur, non-edible oil and soap, gur and cadasari, agarbathi, fireworks, cottage
match, leather, cereals and pulses processing, fruit processing and preservation, bamboo and cane work,
gums, weaving of door mats, bags, manufacturing of candles etc. As the rural industries require limited
capital, carrying out its activities in the rural areas where the labour is available in plenty, women can
successfully start their units in rural areas. As the village industries characterised with high potentiality for
employment generation, utilizing locally available material with local labour, less capital requirement and
technology, the women finds Good Avenue in this sector to start their units.
Selection of Industries by women Entrepreneurs
Chittoor is predominantly an agro-market place and a major market for mango, grain, sugarcane,
and peanut. Other industries include oilseed, poultry and milk. Tomato farming contributing over
20% of the State’s production. Ground nut is the most major commercial crop in the district followed
by sugarcane and the major horticulture crop of mangoes. 2nd largest milk producing district with its
expansive dairy industries. In the field of Dairy, the district stood first in the state. The district is famous
also for textile industries like that of Silk with 13,000 power looms providing employment 40,000
workers. Granite industry famous for its black, pink and grey granites.
Handloom and Handicraft works are exclusively done by women in Chittoor region in other
states in India. In fact, Chittoor was introduced to the outside world by handloom products of the
women entrepreneurs. The Handloom industry is a house–hold industry in Chittoor. This industries
demands intensive labour, but it provides more employment scope with proper use entrepreneurial skills.
Before the mill cloth was introduced in this state. Chittoor women use to produce all the cloths required
for domestic consumption and export by using indigenous raw material like cotton, silk which was
abundantly found in Chittoor. The women did not entire work of spinning, weaving, dyeing etc. and
selling of them in the market.

ISBN: 978-93-5300-292-3 Technical Session - III

300 A Study on Problems Faced by Women Entrepreneurs in Rural Areas

Rural Women Entrepreneurship Problems

To assess to the factors that inhibit promotion of entrepreneurship among rural women, problems
faced by rural women entrepreneurs are include
1. Inadequate financial support
2. Family ties
3. Male dominated society
4. Lack of education
5. Social barriers
6. Lack of motivation
7. Low risk-bearing capacity
8. Limited mobility
9. Exploitation by middle men
10. Lack of self confidence
11. Lack of entrepreneurial awareness – cum- promotional knowledge.
Suggestions
For the proper development of women entrepreneurship in Andhra Pradesh we have to evolve
many more strategies to suit the various conditions in different communities and regions. The various
problems being confronted by women entrepreneurs can be solved in the following manner:
1. Better Co-ordination between financial institutions and women entrepreneurs.
2. Free training facilities in all fields of enterprises.
3. The course design adopted by different training institutes should deal with various problems that
a women trainee has to face.
4. Proper technical education to the women.
5. Assistance in project formulation.
6. Improvement of identification mechanism of new women entrepreneurs.
7. Engaged organisation and agencies in EDPs should coordinates their activities effectively.
8. For developing a proper co-ordination between executives of promotional agencies and viable
women entrepreneurs.
9. Adequate follow-up support to the women entrepreneurs.
10. Adequate data regarding market situations should be made available to the women entrepreneurs.
Conclusion
Andhra Pradesh is considered to be one of the state producing best results in terms of entrepreneurial
and performance. This has been achieved by more than one method. The systematic development of
entrepreneurial potential was aimed at the high/higher secondary school levels. Students were exposed to
epics as well as real business success stories. These bits of information were given in a capsule form of a
programme considered as co-curriculum development.
In sum, the risks towards for the new women entrepreneur in the changed international
economic scenario are unprecedented. The challenge for making a dynamic, globally competitive women

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
A Study on Problems Faced by Women Entrepreneurs in Rural Areas 301

entrepreneur and enabling her to perform effectively lies as much on the society and government as
on the women herself. Under the free market conditions, society will allocate its resources (in terms
of capital, infrastructural and skills) to individual who in its opinion have delivered and become social
change agents and architects.
References
yy A. Sridevi Vijay Chandra,Dr.OmprakashKajipet, Women Entrepreneurship in India, a Retrospect and Prospects.
yy Dr. Mrs. U. Jerinabi, Women Entrepreneurship in India
yy India at 50- Publication by Indian Express – P-448
yy Dr.Gulestan B. Nagporewalla, Women Entrepreneurship in India
yy Mr. T. Bharath, Dr.S. Radha Krishna, Women Entrepreneurship in Rural Areas Some Strategies for Development
yy Dr.Himachalam, G. Viswanatha Reddy, Women Entrepreneurship Development in Co-operative Sector.
yy Dr. S. Sivakarsundari – Entrepreneurship Development for Rural Women, Vol –I, Sep 1995
yy Dr. C.G Gupta, Dr. N. Srinivasan – Entrepreneurship Development in India, Sultan Chand and Co., 1997
yy Panchayat Raj and Rural Development, government of A.P. Manual for IRDP and allied programmes of TRYSEM and DWCRA.
yy V. Jyothi and Prasad “A profile of potential rural women entrepreneurs “SEDME, vol. XVIII, NO, 1 March 1993, p23.

ISBN: 978-93-5300-292-3 Technical Session - III

 Women Entrepreneurs- Problems And Prospects
V. Pavani (MBA) M. Mounika (MBA)
DVR & Dr. HS MIC College of Technology, Kanchikacherla
Abstract Entrepreneurship is a rapid rising concern of a modern competitive economy and its contribution in
economy is viably recognized worldwide. A ‘‘women entrepreneur ‘’ is defined as the women or group of women,
who initiate, organize and operate a business enterprise. Government of India has defined ‘women entrepreneurs’ as
an enterprise owned and controlled by a woman having a minimum financial interest of 51 percent of the capital and
giving at least 51 percent of employment generated in the enterprise to women. Educated Indian women have to go a
long way to achieve equal rights and position because traditions are deep routed in Indian society where the sociological
set up is male dominated one. Despite all the social hurdles, many Indian women stood as successful entrepreneurs.
This paper attempts to analyse and highlight various problems and prospects of women entrepreneurship in India.
Key words Women entrepreneurs, enterprise,problems,education, initiatives, business, gender, prospects.

Introduction
An entrepreneur is an enterprising individual who builds capital through risk and initiative. The
term was originally a loanword from French and was first defined by the Irish-French economist Richard
Can till on. Entrepreneur in English is a term applied to a person who is willing to help launch a new
venture or enterprise and accept full responsibility for the outcome. Jean-Baptiste Say, a French economist,
is believed to have coined the word “entrepreneur” in the 19th century. He defined an entrepreneur as
one who undertakes an enterprise, especially a contractor, acting as intermediary between capital and labour.
Pickle & Abrahamson (1990) introduced a compact definition of an entrepreneur:“An entrepreneur
is one who organizes and manages a business undertaking, assuming the risk, for the sake of profit. The
entrepreneur evaluates perceived opportunities and strives to make the decisions that will enable the firm to
realize sustained growth.”
The entrepreneur leads the firm or organization and also demonstrates leadership qualities by
selecting managerial staff. It is important to note that management skill and strong team building abilities
are essential leadership attributes for successful entrepreneurs and the growth of the business.
From the viewpoint of growth-oriented innovative companies, one of the best definitions of
entrepreneurship is found in Ronstadt (1984):
“Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by
individuals who assume the major risks in terms of equity, time and career commitment to provide value
for some product or service. The product or service may or may not be new or unique but value must
somehow be infused by the entrepreneur by receiving and allocating the necessary skills and resources
Literature Review
Entrepreneurship is the purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain or organize a profit oriented business unit for the production or
distribution of economic goods and services. In India, gender discrimination is high. Owing to various
sociocultural reasons women are prohibited to enter into the entrepreneurial world. Entrepreneurship is
one such a field where women’s participation is very low, although there is lot of improvements in women
literacy rate. In 1971, the women constituted only 2% of total entrepreneurs. Now it has increased nearly
10% in the present modern world. Women entrepreneurs are recognized as powerful instruments for
the economic development of any nation as well as the catalyst in bringing the changes in the society.
The educated women do not want to limit their lives in the four walls of the house. They demand equal
respect from their partners. However, Indian women have to go a long way to achieve equal rights and
Women Entrepreneurs- Problems And Prospects 303

position because traditions are deep rooted in Indian society where the sociological set up has been a
male dominated one. Women are considered as weaker sex and always made to depend on men folk in
their family and outside, throughout their life. But there are some women leaders who take leadership
role in empowerment of women. These women leaders are assertive, persuasive and willing to take risks.
They managed to survive and succeed in this cut throat competition with their hard work, diligence and
perseverance. Ability to learn quickly from her abilities, her persuasiveness, open style of problem solving,
willingness to take risks and chances, ability to motivate people, knowing how to win and lose gracefully
are the strengths of the Indian women entrepreneurs. Under the influence of these factors the women
entrepreneurs choose a profession as a challenge and as an urge to do something new. Such a situation
is described as pull factors. While in push factors women engaged in business activities due to family
compulsion and the responsibility is thrust upon them.
The educated women do not want to limit their lives in the four walls of the house. They demand
equal respect from their partners. However, Indian women have to go a long way to achieve equal rights
and position because traditions are deep rooted in Indian society where the sociological set up has been
a male dominated one. Women are considered as weaker sex and always made to depend on men folk
in their family and outside, throughout their life. The Indian culture made them only subordinates and
executors of the decisions made by other male members, in the basic family structure. Despite all the
social hurdles, India is brimming with the success stories of women. They stand tall from the rest of the
crowd and are applauded for their achievements in their respective field. The transformation of social
fabric of the Indian society, in terms of increased educational status of women and varied aspirations for
better living, necessitated a change in the life style of Indian women. She has competed with man and
successfully stood up with him in every walk of life and business is no exception for this. These women
leaders are assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut
throat competition with their hard work, diligence and perseverance. Ability to learn quickly from her
abilities, her persuasiveness, open style of problem solving, willingness to take risks and chances, ability
to motivate people, knowing how to win and lose gracefully are the strengths of the Indian women
entrepreneurs.
Concept of Women Entrepreneurs
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize
and operate a business enterprise. The Government of India has defined women entrepreneurs as an
enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the
capital and giving at least 51 per cent of the employment generated in the enterprise to women. Women
entrepreneurs engaged in business due to push and pull factors which encourage women to have an
independent occupation and stands on their own legs. A sense towards independent decision-making
on their life and career is the motivational factor behind this urge. Saddled with household chores and
domestic responsibilities women want to get independence. Under the influence of these factors the
women entrepreneurs choose a profession as a challenge and as an urge to do something new. Such a
situation is described as pull factors. While in push factors women engaged in business activities due to
family compulsion and the responsibility is thrust upon them.
Objectives of the Study
The following are the objectives of the present study:
ŠŠ To know the status of women entrepreneurs in India.
ŠŠ To know various problems encountered by women entrepreneurs in India.

ISBN: 978-93-5300-292-3 Technical Session - III

304 Women Entrepreneurs- Problems And Prospects

ŠŠ To know the future prospects for the development of women entrepreneurs in India
ŠŠ To know various steps to develop women entrepreneurship in India.
ŠŠ To know various government schemes for the development of women entrepreneurs.
Methodology

The present study is based only on secondary data. The data were collected from books, jour-
nals, website and annual report.
Problems of Women Entrepreneurs There are many problems faced by women Entrepreneurs. Some
of them are
1. Patriarchal Society: Entrepreneurship has been traditionally seen a male preserve and idea of
women taking up entrepreneurial activities considered as a distant dream. Women also have to
face role conflict as soon as they initiate any entrepreneurial activity
2. Absence of Entrepreneurial Aptitude: Many women take the training by attending the
Entrepreneurship Development Programmes without entrepreneurial bent of mind. As per a
study, involvement of women in small scale sector as owners stands at mere 7 percent.
3. Quality of EDPs: All women entrepreneurs are given the same training through EDPs. Second-
generation women entrepreneurs don’t need such training as they already have the previous
exposure to business.
4. Marketing Problems: Women entrepreneurs continuously face the problems in marketing their
products. It is one of the core problems as this area is mainly dominated by males and even women
with adequate experience fail to make a dent. For marketing the products women entrepreneurs
have to be at the mercy of middlemen who pocket the chunk of profit and also find it difficult to
capture the market and make their products popular.
5. Financial Problems: Obtaining the support of bankers, managing the working capital, lack of
credit resources are the problems which still remain in the males domain. Marketing and financial
problems are such obstacles where even training doesn’t significantly help the women. Some
problems are structural in nature and beyond the control of entrepreneurs.
Suggestions for the Growth of Women Entrepreneurs
The following measures are suggested to empower the women to seize various opportunities and
face challenges in business:
ŠŠ There should be a continuous attempt to inspire, encourage, motivate and co-operate women
entrepreneurs. An Awareness programme should be conducted on a mass scale to create awareness
among women about the various areas to conduct business.
ŠŠ Attempts should be there to enhance the standards of education of women in general as well
making effective provisions for their training, practical experience and personality development
programmes, to improvise their over-all personality standards.
ŠŠ Organize training programmes to develop professional competencies in managerial, leadership,
marketing, financial, production, profit planning, maintaining books of accounts and other skills.
ŠŠ Vocational training to be extended to women community that enables them to understand the
production process

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurs- Problems And Prospects 305

ŠŠ Skill development to be done in women’s polytechnics and Industrial Training Institutes. Skills
are put to work in training-cum-production workshops.
ŠŠ Educational Institutes should tie up with various government and non-government agencies to
assist in entrepreneurship development mainly to plan business projects
ŠŠ International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should
be organized to help women to facilitate interaction with other women entrepreneurs.
ŠŠ Women in business should be offered soft loans & subsides for encouraging them into industrial
activities. The financial institutions should provide more working capital assistance both for small
scale venture and large scale ventures
Steps Taken by the Government
Development of women has been a policy objective of the government since independence.
Women were given priorities in all the sectors including SSI sector. Government and Non-Government
bodies have paid increasing attention to women‘s economic contribution through self-employment and
industrial ventures.
ŠŠ The First Five-Year Plan (1951-56) envisaged a number of welfare measures for women.
Establishment of the Central Social Welfare Board, organization of Mahila Mandal etc.
ŠŠ The Second Five-Year Plan (1956-61) Empowerment of women was closely linked with the
overall approach of Intensive Agricultural Development Programmes (IADP).
ŠŠ The Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported female education as a
major welfare measure.
ŠŠ The Fifth Five-Year Plan (1974-79) emphasized training of women, in need of income and
protection. This plan coincided with International Women‘s Decade and the submission of Report
of the Committee on the Status of Women in India. In1976, Women‘s welfare and Development
Bureau was set up under the Ministry of Social Welfare.
ŠŠ The Sixth Five-Year Plan (1980-85) saw a definite shift from welfare to development. It recognized
women‘s lack of access to resources as a critical factor impending their growth
ŠŠ The Seventh Five-Year Plan (1985-90) emphasized the need for gender equality and empowerment.
Emphasis was placed upon qualitative aspects such as inculcation of confidence, generation of
awareness with regards to rights and training in skills
ŠŠ The Eight Five-Year Plan (1992-97) focused on empowering women, especially at the Gross
Roots Level, through Panchayat Raj Institutions.
ŠŠ The Ninth Five-Year Plan (1997-2002) adopted a strategy of Women‘s Component Plan, under
which not less than 30 percent of funds/ benefits were earmarked for women related sectors.
ŠŠ The Tenth Five-Year Plan (2002-07) aims at empowering women through translating the recently
adopted National Policy for Empowerment of Women (2001) into action and ensuring Survival,
Protection and Development of women and children through rights based approach.
At present, the Government of India had schemes for women operated by different Departments
and Ministries Few of them are
ŠŠ Khadi and Village Industries Commission (KVIC)
ŠŠ Training of Rural Youth for Self-Employment (TRYSEM)

ISBN: 978-93-5300-292-3 Technical Session - III

306 Women Entrepreneurs- Problems And Prospects

ŠŠ Prime Minister‘s Rojgar Yojana (PMRY)

ŠŠ Entrepreneurial Development programme (EDPs)
ŠŠ Management Development programmes
ŠŠ Women‘s Development Corporations (WDCs)
ŠŠ Marketing of Non-Farm Products of Rural Women (MAHIMA)
ŠŠ Assistance to Rural Women in Non-Farm Development (ARWIND) schemes
ŠŠ Trade Related Entrepreneurship Assistance and Development (TREAD)
ŠŠ Indira Mahila Yojana
ŠŠ Mahila Vikas Nidhi
Conclusions
An entrepreneur is one who plays significant role in the economic development of a country. The
most important challenges faced by new entrepreneurs include Developing the Vision and Business Idea,
Raising Capital for Start-up, Assembling a Business Team, Finding the Right Business Location, Finding
Good Employees, Finding Good Customers, Dealing with competition, Unforeseen Business Challenges
and Expenses, lack of support, negative mindset, lack of marketing facilities, lack of infrastructural
facilities etc. So it is necessary to overcome these challenges in order to conduct an efficient business.
Women should try to upgrade themselves in the changing times by adapting the latest technology
benefits. Women must be educated and trained constantly to acquire the skills and knowledge in all the
functional areas of business management. Self-help groups of women entrepreneurs to mobilize resources
and pooling capital funds, in order to help the women in the field of industry, trade and commerce can
also play a positive role to solve this problem.
Reference
yy Problems and Prospects of Women Entrepreneurship in India B. Parimala Devi* *Asst. Professor, Department of Commerce, K. V. R
Government College, Kurnool, Andhra Pradesh, India
yy Women Entrepreneurship in India-Problems and Prospects K. Swarnalatha1 , Anuradha R. K.2 1 Research scholar, Department of
Home science, S. V. University, Tirupathi, Andhra Pradesh, India 2 Associate Professors.
yy WOMEN ENTREPRENEURSHIP IN INDIA-PROBLEMS AND PROSPECTS MEENU GOYAL*; JAI PARKASH** *Assistant
Professors in Commerce, Sri Aurobindo College of Commerce and Management.
yy Entrepreneurship & management by Mr.S.Nagendra, V.S. Manjunath.
yy Entrepreneurship (second edition) oxford higher education by Mr.Rajeev Roy

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Role of Women Entrepreneurship in Indian Economy
*Kumba Nagamani, **Dr. N. Ratna Kishor
*Research Scholar,
**Assistant Professor, Dept. of Commerce and Business Administration, Acharya Nagarjuna University, Guntur.

Abstract: In the Globalized world, women entrepreneurs are playing a vital role and they have become important part of
the global quest for the sustained economic development and social progress. In India, though women have played a key role
in the society, their entrepreneurial ability has not been properly tapped due to the lower status of women in the society. In
India, entrepreneurship among women is of recent origin. Socio economic background is an important factor that influences
the woman to start their business. Despite all the social hurdles, Indian women stand tall from the rest of the crowd and are
applauded for their achievements in their respective field. The development of the country would be very slow if the women
entrepreneurship is ignored and stopped to join the main stream of productive activities. In the 21st century, Micro, Small and
Medium Enterprises (MSMEs) are acting as specialist and soul of economic growth in India as well as in the world. Micro,
Small and Medium Enterprises (MSMEs) play a dominant role in the economic development of a country. MSMEs have been
largely recognized as a foundation stone for the industrial development of any country. Mainly, the paper focused in women
entrepreneurship and also focuses the role of women entrepreneurs in the Indian economy and also their MSMEs development.
Various broader objectives like growth with equity can be achieved by enabling the development of women entrepreneurship.
|Key words: Entrepreneurs, MSMEs,Role in Indian economy, problems, Women Entrepreneurship.

Introduction
The women empowerment has been important role of Governments and other non-governmental
organizations. The women are endowedwith innate power that can make them successful entrepreneurs.
Women entrepreneurship is inherent and also a natural process. Entrepreneurship is gaining significance in
the modern era. It is a global phenomenon. The developed countries are already enjoying the fruits of the
entrepreneurship development. On the contrary, in the developing economies like India, entrepreneurship
has gained importance in the recent past. In developing countries it is considered as method of promoting
self-employment. But one has to see far beyond this to improve and sustain the economic growth of the
country. A developing economy like India needs entrepreneurs who will use the scarce natural resources.
Competent entrepreneurs who will take risks and seize every opportunity to utilize the existing physical
and natural resources are required for the development of the nation. In India we have a long list of
women entrepreneurs. The reasons these women have entered into entrepreneurship may be different.
Some might have entered to develop their family business, some of them to be financially independent.
There are certain women who have started enterprise to bring out their family out of financial crisis.
The self-employment and the entrepreneurship development opportunities will have to be extended
to both the male and female entrepreneurs without any gender discrimination. Thus entrepreneurship
development will be a powerful tool in fighting the problems of unemployment. In India, MSMEs
has a very vital role to play in the progress of the country. MSMEs are considered as the second largest
source of employment after agriculture in India. A tremendous growth of small scale sector has resulted
in decentralized industrial development, better distribution of wealth, investment and entrepreneurial
talent.
Women Entrepreneurs
A woman entrepreneur is a woman or group of women who initiate, organize and operate
business enterprise for personal gain. The concept of woman entrepreneur is related to the concepts like
the women empowerment and emancipation. Today we find women in different fields as compared to
the earlier days where the activities of the women were limited only to the domestic work. Today we
find women in not only in papad, pickles and powder businesses but also in manufacturing, trading and
308 Role of Women Entrepreneurship in Indian Economy

service sector. No doubt the speed is very low, but women are entering into the entrepreneurial field and
certainly they are creating their impact.
Review of Literature
Vibhavari M. Chavan, Dr. Prachia. Murkute (2016)the significance of women entrepreneurship
and also focuses the role of women entrepreneurs in the Indian economy and also their contributions
to the economic development. Various broader objectives like growth with equity can be achieved by
enabling the development of women entrepreneurship.
Benard and Victor (2013) examined the growth of women entrepreneurs in Dar es Salaam
city of Tanzania on strengths, weaknesses, opportunities and threats. It used a sample of 130 women
entrepreneurs and simple random sampling technique for the selection of sample. The study found that a
major strength was the need for financial independence for women entrepreneur. Jayan (2013) analyzed
women entrepreneurship in MSMEs and the relationship between industries related factors and success
of entrepreneurs with special reference to Coimbatore city. The study identified that the factors which
motivate women to become a successful entrepreneurs are achievement motivation and human relation

Objectives of The Study

ŠŠ To study the role of women entrepreneurs in the economic development of India.
ŠŠ To study the challenges faced by the women entrepreneurs
ŠŠ To discuss the development of women entrepreneurs through small and medium enterprises.
Research Methodology
The present study is descriptive and analytical in nature. The data used for the study is secondary in
nature and has been collected from annual reports of Ministry of Micro, Small and Medium Enterprises,
Government of India, web site of Reserve Bank of India, various journals, newspapers and white papers
on Micro, Small and Medium Enterprises.
Indian Women & Entrepreneurship:
Indian women have made themselves free from the clutches of the patriarchal society wherewomen
were treated only as a show piece and were meant to be in the four walls of the housedoing the household
chores like cooking, washing clothes, cleaning utensils, giving birth tochildren and nurturing them.
Women entered the corporate world not only as job takers but alsoas job creators. Yes, women have
finally plunged into the business and have stepped into theShoes of an Entrepreneur. Indian women by
becoming entrepreneurs have moved a stepforward from just having a corporate career which gave her
financial independence and growthto substantiate her abilities.
Entrepreneurship is not a male prerogative. It’s been evidenced that women entrepreneurship has
gained momentum in the last three decades with the increase in the number of women enterprises and their
substantive contribution to the economic growth in the country. The foreign Direct Investment Policy,
technological innovations and manufactured exports in the Asia Pacific region have brought a wide range
of economic and social opportunities for women entrepreneurs. Women enter entrepreneurship due to
economic factors which pushed them to be on their own and urge them to do something independently.
Women prefer to work from their own work residence, difficulty in getting suitable jobs and desire for
social recognition motivate them towards self-employment.
Entrepreneurship Development:

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneurship in Indian Economy 309

Entrepreneurs play a key role in the economic development of a country. Importance of

development of entrepreneurship as an ingredient of economic development has been recognized a long
time back.
Role of Entrepreneurs in Economic Development
The role of entrepreneurs is not identical in the various economies. Depending on the material
resources, industry climate and responsiveness of the political system, it varies from economy to economy.
The contribution of entrepreneurs may be more in favorable opportunity conditions than in economies
with relatively less favorable opportunity conditions. Adam Smith, the foremost classical economist,
assigned no significance to entrepreneurial role in economic development in his monumental work An
Enquiry into the Nature and Causes of the Wealth of Nations, published in 1776. Smith extolled the rate
of capital formation as an important determinant of economic development.
Promotes Capital Formation:-Entrepreneurs promote capital formation by mobilizing the idle savings
of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type
of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the
industrial and economic development of the country.
Creates Large-Scale Employment Opportunities:-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 for others. As time passes, these enterprises grow, providing direct and indirect employment
opportunities to many more.
Promotes Balanced Regional Development:-Entrepreneurs help to remove regional disparities through
setting up of industries in less developed and backward areas. The growth of industries and business in
these areas lead to a large number of public benefits like road transport, health, education, entertainment,
etc. This helps in the development of backward regions.
Reduces Concentration of Economic Power:-Economic power is the natural outcome of industrial
and business activity. Industrial developments normally lead to concentration of economic power in the
hands of a few individuals which results in the growth of monopolies.
Wealth Creation and Distribution:-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. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.
Increasing Gross National Product and Per Capita Income:-Entrepreneurs are always on the lookout
for opportunities. They explore and exploit opportunities,, encourage effective resource mobilization of
capital and skill, bring in new products and services and develops markets for growth of the economy.
Improvement in the Standard of Living:-Increase in the standard of living of the people is a characteristic
feature of economic development of the country. Entrepreneurs play a key role in increasing the standard
of living of the people by adopting latest innovations in the production of wide variety of goods and
services in large scale that too at a lower cost.
Promotes Country’s Export Trade:-Entrepreneurs help in promoting a country’s export-trade, which
is an important ingredient of economic development. They produce goods and services in large scale for
the purpose earning huge amount of foreign exchange from export in order to combat the import dues
requirement.

ISBN: 978-93-5300-292-3 Technical Session - III

310 Role of Women Entrepreneurship in Indian Economy

Induces Backward and Forward Linkages:-Entrepreneurs like to work in an environment of change

and try to maximize profits by innovation. When an enterprise is established in accordance with the
changing technology, it induces backward and forward linkages which stimulate the process of economic
development in the country.
Facilitates Overall Development:-Entrepreneurs act as catalytic agent for change which results in chain
reaction. Once an enterprise is established, the process of industrialization is set in motion.
Creating innovation:-An entrepreneur is people who always look for changes. Part from combining the
factors of production, he also introduces new ideas and new combination of factors.
Entrepreneurs Create New Businesses:-Path breaking offerings by entrepreneurs, in the form of new
goods & services, result in new employment, which can produce a cascading effect or virtuous circle in
the economy.
Entrepreneurs Also Create Social Change:-Through their unique offerings of new goods and services,
entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on
obsolete systems and technologies.
Personal Growth:-Entrepreneurship has created millions of good jobs. In a startup workplace, jobs often
call for creativity and collaboration, leading to personal development. Those exposed to entrepreneurship
have higher confidence and greater independence.
Entrepreneurship puts new business ideas into practice. In doing so, it creates jobs that facilitate
personal development. With their innovative and disruptive ideas, entrepreneurs can tackle social
problems too.
GDP and Per Capita Income: India’s MSME sector, comprised of 36 million units that provide
employment for more than 80 million people, now accounts for over 37% of the country’s GDP. Each
new addition to these 36 million units makes use of even more resources like land, labor and capital to
develop products and services that add to the national income, national product and per capita income
of the country. This growth in GDP and per capita income is again one of the essential goals of economic
development.
Reasons for Women Becoming Entrepreneurs
The following are the reasons for women becoming entrepreneurs,
ŠŠ Innovative thinking
ŠŠ New challenges and opportunities for self-fulfillment
ŠŠ Employment generation
ŠŠ Freedom to take own decision and be independent
ŠŠ Government policies and procedures
ŠŠ Family occupation
ŠŠ Need for additional income
ŠŠ Bright future of their wards
ŠŠ Success stories of friends and relatives
ŠŠ Role model to others support of family members
ŠŠ Education and qualification self-identity and social status

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneurship in Indian Economy 311

ŠŠ They want to assume new and fresh challenges and opportunities for self-fulfillment.
ŠŠ They want to prove their personalities in innovative, daring and competitive jobs.
ŠŠ They want to undertake changes to control the balance between their families responsibly and
business obligations.
ŠŠ Government introduction attractive incentives, subsidies & various schemes
ŠŠ Increasing standard of living
ŠŠ Increasing socioeconomic awareness
Women Entrepreneurship in India: Problems and Challenges
Though, in practice, the same entrepreneurial process is followed for both men and women but
there are many problems and challenges which are being faced by women entrepreneurs in India. These
problems and challenges are:-
Male Dominated Society: The utmost constraint to women entrepreneurs is that they are women. A
male dominant social order is the biggest hurdle to them in their way towards business success. Male
members consider it to be a big risk funding the ventures run by women.
Distrust in the Entrepreneurial abilities of Women: - The financial institutions do not trust the
entrepreneurial abilities of women. The bankers put impracticable and absurd securities to get loan
to women entrepreneurs. According to the report by the United Nations Industrial Development
Organization (UNIDO), “despite evidence that women’s loan repayment rates are higher than men’s,
women still face more difficulties in obtaining credit,” often due to biased attitudes of banks and informal
lending groups.
Inadequate Financial Resources and Working Capital: - Entrepreneurs generally need financial
assistance of some kind to take-off their ventures- be it a formal bank loan or money from a savings
account. The women entrepreneurs are suffering from inadequate financial resources and working capital.
They do not have access to external funds due to their incapability to provide tangible security.
Family Obligations: - Women’s family obligations also restrict them from becoming effective entrepreneurs
in both developed and developing nations. “Having primary responsibility for children, home and older
dependent family members, few women can devote all their time and energies to their business.” The
financial institutions dishearten women entrepreneurs on the belief that they can at any time leave their
business and become housewives again.
More Importance to Family Ties and Relationship: - Indian women give more importance to family
ties and relationships. Married women have to make a reasonable equilibrium between business and
home. Moreover, the success of a business depends on the support of the family members to married
women who are engaged in the business process and management.
Lack of Managerial Skills: - Another dispute is that women entrepreneurs have low-level management
skills. They have to rest on office staffs and intermediaries, to get things done, especially, the marketing
and sales side of business.
Hard Competition between male and female: - The male-female competition is another reason which
develops hurdles in the path of women entrepreneurs in the business management process. In spite of
the fact that women entrepreneurs are good in keeping their services prompt and delivery in time, due
to lack of organizational skills compared to male entrepreneurs women have to face constraints from
competition.

ISBN: 978-93-5300-292-3 Technical Session - III

312 Role of Women Entrepreneurship in Indian Economy

Low Mobility: - The confidence to travel across day and night and even different regions and states
are less found in women as compared to male entrepreneurs. This shows the low level of freedom of
expression and freedom of mobility of women entrepreneurs.
Lack of Knowledge of Availability of Raw-materials: - Information of different sources of raw-materials
availability and high negotiation skills are the basic prerequisites to run a business. Receiving the raw
materials from different sources with discount prices is the factor that defines the profit margin. Lack
of knowledge of availability of the raw-materials and low-level negotiation and bargaining skills are the
factors, which affect women entrepreneurs’ business adventures.
Lack of Education: - Knowledge of modern technological changes, know how, and education level of the
person are the major factors that affect business. The literacy rate of women in India is found at low level
compared to male population. Many women in developing nations lack the education required to build
up successful entrepreneurship. They are unaware of new technologies or inexpert in their use, and often
incapable to do research and gain necessary training.
Inability to take risks: - Low-level risk taking attitude is another factor affecting women entrepreneurs.
Investing money, maintaining the operations and plugging back money from surplus generation requires
high risk taking attitude, courage and confidence.
Managing Employees: - Managing employees is another challenge that women entrepreneurs in India
face. Finding and retaining good employees is vital for the success of a business, but can be problematic
for women entrepreneurs in India. Since women owned businesses tend to be smaller, they are often less
likely to provide job security and retain good talent.
Inefficient arrangements for Marketing and Sales: - For marketing their products, women entrepreneurs
are frequently at the mercy of the middlemen who pocket the chunk of profit. Further, women
entrepreneurs find it tough to capture the market and make their products popular. This problem is all
the more serious in the case of food production and processing ventures.
Government Initiatives for Women Entrepreneurs in India
The government of India and the various state governments have come up with policies and
programmes to assist women entrepreneurs and help in solving the above stated challenges and problems
which they face. A brief account of these policies and programmes are given below.
Policy Initiatives: Government of India is committed to develop MSMEs in general and women
entrepreneurship in particular. In a broad manner the government has implemented the MSME
Development Act 2006 which has already come into effect. There is a provision to reserve items exclusively
for the MSMEs. At present 20 items are reserved for these sectors.
Role of the Ministry of MSME: The Ministry of MSME is primarily set up to assist various states and
Union Territories in the effort to promote growth and development of MSME in general.
Entrepreneurship Development Programme (EDP): The Government also announces from time to
time Entrepreneurship Development Programme (EDP) especially for the first generation of women who
desire to be entrepreneur.
Prime Minister’s Employment Generation Programme (PMEGP): launched in 2008-09 also gives
special attention to urban and rural women by providing them subsidy at the rate of 25 to 35 per cent
of the project cost in urban and rural areas respectively. Bank finance in the form of loan is 95% of the
project cost for women.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneurship in Indian Economy 313

The Ministry of Women and Child Development of Government of India It has launched the
National Mission for Empowerment of Women (NMEW) in March, 2010. The mission has the
network of various State Mission Authority (SMAs) at state level. Besides that there are two
important schemes of the ministry which can act as complement to the process of development of
women entrepreneurship.
Other schemes operated by different departments and ministries are: Management Development
Programmes, Women’s Development Corporations (WDCs), Marketing of Non-Farm Products of Rural
Women, Assistance to Rural Women in Non-Farm Development (ARWIND) Schemes, Micro Credits
Scheme etc.
GST (Goods and Services Tax) in the Ministry of MSME:
The introduction of Goods and Services Tax (GST) would be a very significant step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single
tax, it would mitigate cascading or double taxation in a major way and pave the way for a common
national market. The GST Act came into effect on 8th September, 2016 vide 101st Amendment tothe
Constitution of India. Hence, all existing Central Excise and Service Tax assesses will be migrated to GST
starting 7th January, 2017. The GST will officially come into force on 1st July, 2017.
Opportunities for MSMEs
MSMEs have a major presence in the Indian economy contributing to 37.54 percent of
India’sGDP. The share of MSME manufacturing output in the total manufacturing output of the country
isto the tune of 37.33 % as per the latest available information. Hence, GST will have a major impacton
the working of the MSME units. It will pose significant opportunities to these units, which forma major
backbone of the country’s economy.
Conclusion
The role of Women entrepreneur in economic development is also being recognized and steps
are being taken to promote women entrepreneurship. From these suggestions it is quite visible that
for development and promotion of women entrepreneurship, in the region, there is a need for multi-
dimensional approach from different sector, namely from the government side, financial institutions,
individual women entrepreneurs and many more, for a flexible integrated and coordinated specific
approach. Women participation in the field of entrepreneurship is increasing at considerable rate, efforts
are being taken at the economy as well as global level to enhance woman’s involvement in the enterprise
sector. Educated Women is contributing to a great extent to the social transformation and in the future,
will be seen that more women venturing into areas traditionally dominated by men.It can be concluded
that Micro, Small and Medium Enterprises are contributing to the economic growth and development
of Indian economy. Women Entrepreneurs who were traditionally kept behind the four walls of their
houses, now in modern society are capable of managing both their family and business. Though they face
many problems and challenges in their path of becoming a successful entrepreneur but the government
has taken many initiatives for the growth of women entrepreneurs. Finally, it can be said that there is a
long way to go for women entrepreneurs and MSMEs in India and their success is the success of Indian
economy.
Reference:
yy Vibhavari M. Chavan, Dr. Prachi A. Murkute ‘Role of Women Entrepreneurship in Indian Economy’ International journal of science
technology and management ISSN 2394-1537, Vol. No.5, Issue No.3,March 2016.

ISBN: 978-93-5300-292-3 Technical Session - III

314 Role of Women Entrepreneurship in Indian Economy

yy Vinesh‘Role of Women Entrepreneurs in India’ Research India Publications Global Journal of Finance and Management. ISSN 0975-
6477 Volume 6, Number 5 (2014), pp. 473-480.
yy MallikarjunMaradi&ParamanandDasar ‘The Strategic Role Of Women Entrepreneurship With Reference To Indian Economy: Hurdles
And Empowerment’ Global Journal Of Commerce & Management Perspective ISSN 2319 – 7285. Vol. 2(1) 2013.
yy Ritika, nehaDangil ‘women entrepreneurship and growth and performance of MSMEs in India International Journal of Advance
Research in Computer Science and Management Studies ISSN: 2321-7782, Volume 2, Issue 4, April 2014.
yy Dr. G. Malyadri; Role of Women Entrepreneurs in the Economic Development of India; Indian Journal Of Research Vol. 3;ISSN
2250-1991.
yy Sumangala Naik, ‗The Need for Developing Women Entrepreneurs,‘ Yojana, Vol. 47(7), July 2003, p.37.
yy Ms. Yogita Sharma ‘Women Entrepreneur inIndia’ Research paper presented in IOSR Journal of Business and Management (IOSR-
JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 3 (Nov. - Dec. 2013), PP 09-14.
yy Amrita Dhaliwal ‘Role of Entrepreneurship in Economic Development’ International Journal of scientific research and management
ISSN (e): 2321-3418 Volume 4 Issue 06Pages4262-42692016.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Women Entrepreneurship in India
*S. Rizwana Sultana, **J. Syamala Devi, ***Y. Devi, ****K.Hari Babu

Lecturer in Commerce, Lecturer in Telugu, Lecturer in Mathematics,

VRS & YRN College, Chirala , Andhra Pradesh

Abstract: Entrepreneurship for women development is an essential part of human resource. In comparison to other
countries, the development of women entrepreneurship is very low in India, especially in rural areas.This conceptual paper
indicates and emphasizes the women entrepreneurs as the potentially emerging human resource in the 21st century. The
primary objective of this paper is to find out the status of women entrepreneurs in India and also studies the success story of
HINA SHAH the most successful women entrepreneurs of India in plastic packaging and founder of ICECD (International
Centre for Entrepreneurship and Career Development).

“When Women moves forward the family moves, the village moves and the nation moves”- Pandit JAWAHARLAL
NEHRU
According to the holy Quran “Men shall have a benefit from what they earn and women shall
have the benefit from what they earn”
1. Introduction
Entrepreneurship refers to the act of setting up a new business or reviving an existing business so
as to take advantages from new opportunities. An entrepreneur is a person who starts an enterprise. He
searches for change and responds to it. The economists view entrepreneur as a fourth factor of production
along with land,labour and capital. Entrepreneurs are innovators who come up with new ideas for
products,markets or techniques. Entrepreneurs shape the economy by creating new wealth and new jobs
and by inventing new products and services. However, an insight study reveals that it is not about making
money, having the greatest ideas, knowing the best sales pitch,applying the best marketing strategy. It is
a reality an attitude to create something new and an activity which creates value in the entire social eco-
system. Entrepreneurship has been male-dominated phenomenon from the very early age, but time has
changed the situation and brought women as today’s most memorable and inspirational entrepreneurs.
2. Status of women entrepreneurs in India
Entrepreneurship is considered as one of the most important factors contributing to the
development of society.I ndia has been ranked among the worst performing countries in the area of
women entrepreneurship in gender-focused global entrepreneurship survey, released in July 2013. Status
of higher education in women in India came out to be lower than most countriesin the world. At present
women’s entrepreneurial role is limited in the large scale industries and technology based businesses. But
even in small scale industries, the women’s participation is very low. As per the third all-India census of
small scale industries, only 10.11% of the micro and small enterprises were owned by women, and only
9.46% of them were managed by women. While the number of women operating their own business is
increasing globally.
3. Challenges faced by the women entrepreneurs
ŠŠ Conflicts between work and domestic commitments-women’s family obligations also bar them
from becoming successful entrepreneurs in both developed and developing nations.”Having
primary responsibility for children, home and older dependent family members, few women can
devote all their time and energies to their business.
316 Women Entrepreneurship in India

ŠŠ Gender gaps in education-While women are making major strides in educational attainment
at primary and secondary levels, they often lack the combination of education, vocational and
technical skills, and work experience needed to support the development of highly productive
businesses.
ŠŠ Stiff competition-Women entrepreneurs do not have organizational setup to put in a lot of money
for canvassing and advertisement. Thus they have to face a stiff competition for their products
with both organized sectors and their male counter parts.
ŠŠ Lack of confidence and faith-lack of role models undermines the self confidence of women
entrepreneurs. The activity of selling is considered abhorrent to the female gender.
ŠŠ Lack of right public/private institutions-Most public and private incentives are misused and do
not reach the woman unless she is backed by a man. Also many trade associations like ministries,
chambers of commerce do not cater to women expecting women’s organizations to do the
necessary things.
4. Life of an entrepreneur- Hina Shah Bhuptani
Hina shah is a home maker, a classical dancer, an entrepreneur, a painter, an academician and the
director of ICECD. In a man’s world she has created a niche for herself with path breaking innovative
ideas. She began her career in 1976 in the plastic packaging industry and with a belief that economic
empowerment is the tool for overall empowerment of women, she piloted a development strategy in 1980
that viewed women as an active participant in economic development. In 1986, she transformed her
vision into an initiative “International Centre for Entrepreneurship and Career Development (ICECD)”
which today is recognized as “centre for excellence” by United Nations.She has thus facilitated thousands
of deprived women to become entrepreneurs all over India and the developing world. Hina shah started
her 1stprogramme, termed Entrepreneurship Development Programme for women with 25 widows
from Gujarat, out of which 16 women established non-traditional business.Her efforts have created a
consolidated wealth of Rs.195 crores in India and Rs.620 crores in other countries till date.Her mission
has always been to create successful and persistent women entrepreneurs, who will emerge as job creators
and not job seekers. The core idea of “SHE CAN YOU CAN” in essence, is an initiative to capture stories
of women going beyond the ordinary. There has been irrevocable change in the role of women in the
deeply backward areas, Ms.Hina shah has been chosen as a social entrepreneur, who in the past 3 years has
led over 13,000 widows of Gujarat to become successful entrepreneurs, and is currently reaching out to
over 2500 Primitive tribal Youth of the state to become self sufficient. She is a huge source of inspiration
to many who have changed the course of their lives to follow her leadership.
5.Recommendations
The elimination of obstacles for women entrepreneurship requires a major change in traditional
attitudes and mindsets of people in society rather than being limited to only creation of opportunities for
women.The basic requirement in development of women entrepreneurship is to make aware the women
regarding her existence, her unique identity and her contribution towards the economic growth and
development of country.
Here are some suggestions to increase the role of women entrepreneurs:-
ŠŠ Infrastructure-Infrastructure set up place a vital role for any enterprise, Government can set some
priorities for women entrepreneurs for allocation of industrial plots, sheds and other amenities.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship in India 317

However, precautionary measures should be undertaken to avoid the misuse of such facility by
the men in the name of the women.
ŠŠ Business Development Training Programmers’:-It includes basic day-to-day management training
like how to keep track of accounts, handle taxes and understand compliance rules and regulations.
They can also focus on strategy and the long-range success of a business from writing a business
plan to targeting specific markets, along with product innovation within business clusters and
incubators.
ŠŠ To establish all India forums to discuss the problems, grievances, issues, and filling complaints
against constraints or shortcomings towards the economic progress path of women entrepreneurs
and giving suitable decisions.
6. Conclusion
As per the studies it has been observed that are very good entrepreneurs and prefer to choose the
same as they can maintain work balance in life.Women entrepreneurship is necessary for the growth of
any economy whether it is large or small.

ISBN: 978-93-5300-292-3 Technical Session - III

 Women Entrepreneurship - Challenges And Opportunities
*Madhavi. Nuthalapati, **Dr. A. Kanakadurga
*Research Scholar
**Assistant Professor, Dept of Commerce & Business Administration, Acharya Nagarjuna University, Guntur
Abstract: The present era of privatization and globalization is creating ample opportunities for entrepreneurship.
Entrepreneurship refers to to the act of establishing a new business so as to take the benefit from new opportunities.
Women Entrepreneurship is gaining importance in the present scenario due to the importance of new business creation
for economic growth and development. Economic development of today’s women is essential for economic development of
any country. Women entrepreneurship is low in India when compared to other countries especially in rural areas. However
middle class women are not much eager to become entrepreneurs due to the fears and problems .The progress is visible
in upper class women in urban areas. In this paper an attempt is made to study the concept of women entrepreneurs,
reasons for women becoming entrepreneurs and challenges and opportunities related to women entrepreneurs in India.
Key words: Women entrepreneurs, challenges, key to success

Introduction:
“A woman entrepreneur can be defined as a innovative, confident, and creative woman capable
of achieving self economic independence alone or in association creates employment opportunities for
others through initiating, establishing and running the venture by keeping pace with her personal, family
and social life.” Government of India defined women entrepreneurship as “An enterprise owned and
controlled by a women having a minimum financial interest of 51 per cent of the capital and giving at
least 51 per cent of the employment generated by the enterprise to women.” Women entering in to
entrepreneurship due to economic factors which pushed them to be on their own and urge them to do
something independently. Women prefer to work from their own work residence, difficulty in getting
suitable jobs and desire for social recognition motivate them towards self-employment. We see a lot
of women professionals in engineering, medicine, law etc. They are also setting up hospitals, training
centers, etc.
Objectives of the study:
ŠŠ To evaluate the factors responsible for encouraging women to become entrepreneurs
ŠŠ To study the challenges and opportunities of women entrepreneurs in India
ŠŠ To discuss the measures needed to improve the state of women entrepreneurs in India
Methodology of the study:
To fulfill the above objectives secondary data collection method is used. Data have been collected
from different Scholars and researchers published books, articles published in different journals,
periodicals, conference papers, working paper and web sites.
Concept of women Entrepreneurs:
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize
and operate a business enterprise. The Government of India has defined women entrepreneurs as an
enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the
capital and giving at least 51 per cent of the employment generated in the enterprise to women. Women
entrepreneurs engaged in business due to push and pull factors which encourage women to have an
independent occupation and stands on their on legs. A sense towards independent decision-making on
their life and career is the motivational factor behind this urge. Saddled with household chores and
domestic responsibilities women want to get independence. Under the influence of these factors the
Women Entrepreneurship - Challenges And Opportunities 319

women entrepreneurs choose a profession as a challenge and as an urge to do something new. Such a
situation is described as pull factors. While in push factors women engaged in business activities due to
family compulsion and the responsibility is thrust upon them.
Reasons for women becoming Entrepreneurs:
With the spread of education and passage of time women started shifting from 3P‘s i.e. pickle,
powder and pappad to modern 3E‘s i.e., Energy, Electronics and Engineering. Skill, knowledge and
adaptability in business are the main reasons for women to appear into business ventures. Women
Entrepreneur’s a one who accepts tough role to meet her individual needs and become economically
independent. A strong desire to do something constructive is an in built quality of entrepreneurial
women, who is gifted of contributing values in both family and social life. With the introduction of
media, women are awake of their own qualities, rights and also the work situations. The challenges and
opportunities provided to the women of digital era are growing rapidly that the job seekers are turning
into job creators. Many women start a business due to some hurtful event, such as divorce, discrimination
due to pregnancy or, the health of a family member, or economic reasons such as a layoff. But a new talent
pool of women entrepreneurs is forming today, as more women opt to leave corporate world to chart
their own destinies. They are flourishing as designers, interior decorators, exporters, publishers, garment
manufacturers and still exploring new avenues of economic participation.
Factors influencing Women Entrepreneurship:

Push Factors Pull Factors

ŠŠ Dissatisfaction with salaried job ŠŠ Entrepreneur drive

ŠŠ Difficulty in finding work ŠŠ Desire for wealth, power and social status
ŠŠ Need for flexible work schedule ŠŠ Self fulfillment
ŠŠ Insufficient family income ŠŠ Cooperation and support of family members
ŠŠ Strong network of contacts

Challenges for women Entrepreneurs in India:

Lack of Risk taking ability: Our educational system is very ancient in creating awareness about woman’s
capacities and their hidden powers to handle economic activities. Most of the women are not performing
entrepreneurial activities because they are not having the proper capacities and risk making ability.
Arrangement of Finance& Raw Material: The major problem faced by women entrepreneurs are
arrangement of finance. Their access to external sources of finance is very limited because of their poor
economic condition in the society. Another problem faced by them is shortage of raw-material and
difficulty faced by the women entrepreneur in arranging good quality raw material at competitive prices.
Low levels of literacy amongst women: The socioeconomic bias that prevails in the society is because of
women illiteracy and that doesn’t let women achieve economic independency. Due to lack of Knowledge
of latest technology and proper education, it becomes difficult for women to set up their own enterprises.
Aggressive Competition: Women entrepreneurs have to face strong competition from two ends one
from industry and other end from their male counterparts. Surviving this aggressive competition and

ISBN: 978-93-5300-292-3 Technical Session - III

320 Women Entrepreneurship - Challenges And Opportunities

achieving the aim of producing quality product at competitive price is not an easy task for the women
entrepreneurs.
Problems in getting financial assistance by banks & Financial Institutions: Small and medium size
firms get financial assistance through Banks and financial institutions. But these banks and financial
institutions are not ready to provide credit to women entrepreneurs because they doubt the credit
worthiness of women entrepreneurs. The irony is that according to a report by the United Nations
Industrial Development Organization (UNIDO), woman’s loan repayment rates are higher than men’s
but still financial institutes doubt their loan repayment abilities.
Marketing Problems: Women entrepreneurs face problems in marketing of their products as this area
is mainly dominated by males and women fail to make a mark in this area. Women entrepreneur also
find it difficult to capture the market and make their products popular and they often take the help of
middlemen in marketing their products who often charge high commission from them.
Less support from family: In business women have to devote long hours and gets less support from
family and as a result, they find it difficult to balance both work and life. As such they become incapable
in attending to domestic work, attending to the needs of their children which lead to conflict in their
personal lives and they find it difficult to work as a women entrepreneur.
High cost of production: High cost of production adversely affects the development of women
entrepreneurs. The high cost of factors of production and the raw material makes it difficult for the
women entrepreneur to operate in the industry. Government assistance in the form of grant and subsidies
to some extent enables them to tide over the difficult situations. Other than the high cost of production,
women entrepreneurs also face the problems of labor, human resources, infrastructure, legal formalities,
overload of work, mistrust etc that are associate with every business enterprise.
Lack of self-confidence and self-esteem amongst women: A strong mental outlook and an optimistic
attitude amongst women are required amongst women to be an entrepreneur. But it has been noticed that
women lack these qualities required in setting up their own enterprises. Thus, not having the required
confidence that is needed by today’s women to move ahead creates resistance in their being a good
entrepreneur
Measures for the improvement of women Entrepreneurship: Efforts from all areas are necessary in
the development of women entrepreneurs and their better participation in the entrepreneurial activities.
Entrepreneurship basically implies being in control of one‘s life and activities and women entrepreneurs
need to be given confidence, independence, and mobility to come out of their paradoxes. The follow-
ing measures are suggested to empower the women to grab various opportunities and face challenges in
business.
ŠŠ Attempts should be there to enhance the standards of education of women in general as well
making effective provisions for their training, practical experience and personality development
programmes, to manage their over-all personality standards.
ŠŠ There should be a continuous attempt to encourage, support motivate and cooperate women
entrepreneurs.
ŠŠ An Awareness programme should be conducted on a bunch scale with the objective of creating
awareness among women about the various areas to carry out business.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship - Challenges And Opportunities 321

ŠŠ Conduct training programmes to develop specialized competencies in managerial, leadership,

marketing, financial, production process, profit planning, maintaining books of accounts and
other skills. This will encourage women to undertake business.
ŠŠ Vocational training to be extended to women community that enables them to understand the
production process and production management.
ŠŠ Skill development to be done in women’s polytechnics and industrial training institutes. Skills are
put to work in training-cum-production workshops.
ŠŠ Educational institutes should tie up with various government and non-government agencies to
assist in entrepreneurship development mainly to plan business projects.
ŠŠ International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should
be organized to help women to facilitate interaction with other women entrepreneurs.
ŠŠ Women in business should be offered soft loans & subsides for encouraging them into industrial
activities. The financial institutions should provide more working capital assistance both for small
scale venture and large scale ventures.
ŠŠ Making provision of micro credit system and enterprise credit system to the women entrepreneurs
at local level.
ŠŠ The weaker section could raise funds through various schemes and incentives provided by the
government to develop entrepreneurs in the state. E.g. the Prime ministers RozgarYojana, The
Khadi and Rural village industries scheme, etc.
ŠŠ Attempts by various NGO‘s and government organizations to spread information about policies,
plans and strategies on the development of women in the field of industry, trade and commerce.
Women entrepreneurs should utilize the various schemes provided by the Government.
ŠŠ Women should try to upgrade themselves in the changing times by adapting the latest technology
benefits. Women must be educated and trained constantly to acquire the skills and knowledge in
all the functional areas of business management. This can facilitate women to excel in decision
making process and develop a good business network
ŠŠ Self-help groups of women entrepreneurs to mobilize resources and pooling capital funds, in
order to help the women in the field of industry, trade and commerce can also play a positive role
to encourage women entrepreneurship.
ŠŠ Women‘s entrepreneurship must be examined both at the individual level (i.e. the choice of
becoming self-employed) and at the firm level (the performance of women owned and managed
firms) in order to fully understand the differences between men‘s and women‘s entrepreneurship.
ŠŠ To establish all India forums to discuss the problems, grievances, issues, and filing complaints
against constraints or shortcomings towards the economic progress path of women entrepreneurs
and giving suitable decisions in the favor of women entrepreneurs and taking strict stand against
the policies or strategies that obstruct the path of economic development of such group of women
entrepreneurs.
Conclusions:
Today we are in a better position wherein women participation in the field of entrepreneurship
is increasing at a considerable rate. Women sector occupies nearly 45% of the Indian population. It
is important to promote women entrepreneurship for the improvement of economic situation of the

ISBN: 978-93-5300-292-3 Technical Session - III

322 Women Entrepreneurship - Challenges And Opportunities

women. This can be made possible with the help of education as education is a powerful tool in bringing
out the entrepreneurship qualities in a human being. Moreover, attempts to motivate inspire and assist
women entrepreneurs should be made at all possible levels. Women entrepreneurship in India faces many
challenges and requires a radical change in attitudes and mindsets of society. Women entrepreneurs
faced lots of problems like lack of education, social barriers, legal formalities, high cost of production,
male dominated society, limited managerial ability, lack of self-confidence etc. Training should be given
to the women by establishing training institutes that can enhance their level of work-knowledge, risk-
taking abilities, enhancing their capabilities. Undoubtedly the women participation rate in the field
of entrepreneurship is increasing rapidly. However, efforts need to be taken at larger scale to give the
position in the field of entrepreneurship that they deserve. The actions & steps that has been taken by
the government sponsored development activities have benefited only a small strata of society and more
needs to be done in this area. Effective steps need to be taken to have entrepreneurial awareness and skill
development to women. If every citizen works with such an attitude towards respecting the important
position occupied by women in society and understanding their vital role in the modern business field
too, then very soon occupy bigger place in our country‘s development process.
References:
yy Vinesh, (2014), Role of women Entrepreneurship in India, Global Journal of finance and Management.
yy Singh Kamala, (1992), Women Entrepreneurs, Ashish publishing house, New Delhi.
yy Gorden.E.&.Natarajan,.K (2007), Entrepreneurship Development, Himalaya Publication House
yy Yogita Sharma, (2014), Women Entrepreneur in India, IOSR Journal of Business and Management
yy Ravinder Jit& Anju Bharti ,(2016), Women Entrepreneurs of India: Issues and Challenges, Journal of Management Sciences and
Technology.
yy Sweety Gupta &Aanchal Aggarwal, (2015), Opportunities and challenges faced by women Entrepreneurs in India, IOSR Journal of
Business and Management
yy Meenu Goyal & Jai Prakesh, (2011), Women entrepreneurship in India-Problems and prospects, International Journal of
Multidisciplinary research.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Role of Women Entrepreneur in India
*B. Venkateswarlu ** T. Tulasi
Associate professor VYCET
T.Tulasi Student of VYCET

Abstract: Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take
good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential
economic profits the entrepreneur could earn. Technically, a “women entrepreneur” is any women who organizes and manages
any enterprise, usually with considerable initiative and risk. However, quite often the term “women-owned business” is used
relative to government contracting. In this instance, the entrepreneur (a woman) owns (more than 50%), controls and runs the
enterprise. Data has been collected from number of articles, books, periodicals and web sites. The present study has been an attempt
to generate awareness and to understand meaning, rationale for diversification. An extensive literature review is done on women
entrepreneur. At the end some major problems faced by Indian women entrepreneurs, success stories of Indian women entrepreneurs,
factors influencing women entrepreneurship and steps taken by the government for upliftment of Indian women entrepreneurs.
Key words: Meaning of women entrepreneur, rationale for diversification, problems faced by Indian women entrepreneurs,
success stories of Indian women entrepreneurs ,factors influencing women entrepreneurship, steps taken by the Indian
government

Introduction
Women entrepreneurs may be defined as a “Woman or a group of women who initiate, organize
and run a business enterprise”. Government of India has defined women entrepreneurs based on women
participation in equity and employment of a business enterprise. Accordingly, a woman run a enterprise is
defined as “an enterprise owned and controlled by a women having a minimum financial interest of 51%
of the capital and giving at least 51%of the employment generated in the enterprise to women”. Women
entrepreneur constitute 10 % of the number of the number of entrepreneur in the country. This has
been a significant growth in self-employment of women with women now starting new ventures at three
times the rate of men. They constitute 50% of the population of our country with a lower literacy rate
than men. This statistical fact indicates that for the economic growth of the nation, women should not
be encouraged to make their share of economic contribution towards the country. one way of achieving
is by making women come out and become entrepreneurs. In the traditional society, they were confined
to the four walls, playing household roles, but in the modern society, they are coming out to participate
in all sorts od activities. Normally, women entrepreneurship is found in the extension of their kitchen
activities, mainly in preparing commercially the 3Ps namely, Pickles, Papads and Powder. Few of them
venture into services industry relating to hospitality, catering, educational services, consultation or public
relations, beauty clinics, etc.
Women enter entrepreneurship due to economic factors which pushed them to be on their own
and urge them to do something independently. Women prefer to work from their own work residence,
difficulty in getting suitable jobs and desire for social recognition motivate them towards self-employment.
We see a lot of women professionals in engineering, medicine, law etc. They are also setting up hospitals,
training centers, etc.
“An enterprise owned and controlled by a women having a minimum financial interest of 51 per cent
of the capital and giving at least 51 per cent of the employment generated by the enterprise to women.” —
Government of India
“A woman entrepreneur can be defined as a confident, innovative and creative woman capable of
achieving self-economic independence individually or in collaboration, generates employment opportunities for
324 Role of Women Entrepreneur in India

others through initiating, establishing and running the enterprise by keeping pace with her personal, family and
social life.”—Kamal Singh
Rationale for Diversification
Women entrepreneur are risk bearers, organizes and innovators too. Indian women, who are
regarded as better half of the society, are not equal partners in society. Perceptual variables have a crucial
influence on the entrepreneurial propensity of women and account for much of the gender differences in
entrepreneurial styles. The low literacy rate ( 40% ), low participation rate ( 10 %) of women as compares
to 60%, 52%, 18% respectively of their male counterparts prove their disadvantageous position in the
society. The results of the survey conducted by IIT, Delhi are:
Women Entrepreneur In India
1. Women own one-third of small business in USA and Canada and the number is likely 50% in
the 21st century.
2. Women account for 40% of the total work force in Asian countries.
3. Women outnumber men by at least two lines in China.
4. The percentage of women entrepreneurs has increased from 7.69% in 1992-93 to 10% in year
2000-01, but the number still is significantly low as compared to overall work participation rate
i.e. 25.7%.
5. The number of women in technical courses, professional courses and in engineering stream has
shown a tremendous rise. Polytechnics and IITs have only 15% girls out of total entrolled students
and very less join and set their own enterprises.
Review of Literature
Bowen & Hisrich, (1986), compared & evaluated various research studies done on entrepreneurship
including women entrepreneurship. It summaries various studies in this way that female entrepreneurs are
relatively well educated in general but perhaps not in management skills, high in internal locus of control,
more masculine, or instrumental than other women in their values likely to have had entrepreneurial
fathers, relatively likely to have frts born or only children, unlikely to start business in traditionally male
dominated industries & experiencing a need of additional managerial training.
Cohoon, Wadhwa & Mitchell, (2010), present a detailed exploration of men & women
entrepreneurs motivations, background and experiences. The study is based on the data collected from
successful women entrepreneurs. Out of them 59% had founded two or more companies. The study
identifies top five financial & psychological factors motivating women to become entrepreneurs. These
are desire to build the wealth, the wish to capitalize own business ideas they had, the appeal of startup
culture, a long standing desire to own their own company and working with someone else did not
appeal them. The challenges are more related with entrepreneurship rather than gender. However, the
study concluded with the requirement of further investigation like why women are so much concerned
about protecting intellectual capital than their counterpart. Mentoring is very important to women,
which provides encouragement & financial support of business partners, experiences & well developed
professional network.
Women network report on Women in Business & in Decision Making focus on women
entrepreneurs, about their problems in starting & running the business, family back ground, education,
size of business unit. Some interesting facts which came out from this report are less educated women
entrepreneurs are engaged in micro enterprises, have husband & children but have no help at home. Most

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneur in India 325

of the women establish enterprises before the age of 35, after gaining some experience as an employee
somewhere else. The motivational factors were desire for control & freedom to take their own decision
as well as earning handsome amount of money. Dedication of more than 48 hours in a week with the
family support to their enterprises gave them a sense of self confidence. However, to maintain balance
between family & work life is a major challenge before women entrepreneurs especially for those who
have children & working husband.
Darrene, Harpel and Mayer, (2008) performed a study on finding the relationship between
elements of human capital and self-employment among women. The study showed that self-employed
women differ on most human capital variable as compared to the salary and wage earning women.
The study also revealed the fact that the education attainment level is faster for self-employed women
than that for other working women. The percentage of occupancy of managerial job is found to be
comparatively higher in case of self-employed women as compared to other working women. This study
also shed light on similarity and dissimilarity of situations for self-employed men and self-employed
women. Self-employed men and women differ little in education, experience and preparedness. However,
the main difference lies in occupational and industry experience. The percentage of population holding
management occupation is lower for self-employed women as compared to self-employed men. Also the
participation levels of self-employed women are found to be less than of self-employed men in industries
like communication, transportation, wholesale trade, manufacturing and construction. The analysis is
based on data from the Current Population Survey (CPS) Annual Social and Economic Supplement
(ASEC) from 1994 to 2006.
Singh, 2008, identifies the reasons & influencing factors behind entry of women in
entrepreneurship. He explained the characteristics of their businesses in Indian context and also obstacles
& challenges. He mentioned the obstacles in the growth of women entrepreneurship are mainly lack
of interaction with successful entrepreneurs, social un-acceptance as women entrepreneurs, family
responsibility, gender discrimination, missing network, low priority given by bankers to provide loan to
women entrepreneurs. He suggested the remedial measures like promoting micro enterprises, unlocking
institutional frame work, projecting & pulling togrow & support the winners etc. The study advocates
for ensuring synergy among women related ministry, economic ministry & social & welfare development
ministry of the Government of India.
Tambunan, (2009), made a study on recent developments of women entrepreneurs in Asian
developing countries. The study focused mainly on women entrepreneurs in small and medium enterprises
based on data analysis and review of recent key literature. This study found that in Asian developing
countries SMEs are gaining overwhelming importance; more than 95% of all firms in all sectors on
average per country. The study also depicted the fact that representation of women entrepreneurs in this
region is relatively low due to factors like low level of education, lack of capital and cultural or religious
constraints. However, the study revealed that most of the women entrepreneurs in SMEs are from the
category of forced entrepreneurs seeking for better family incomes.
Methodology
The prepared paper is a descriptive study in nature. The secondary data and information have
been analyzed for preparing the paper extensively. The secondary information have been collected from
different scholars and researchers published books, articles published in different journals, periodicals,
conference paper, working paper and websites.

ISBN: 978-93-5300-292-3 Technical Session - III

326 Role of Women Entrepreneur in India

Problems Faced By Indian Women Entrepreneurs

Besides the above basic problems the other problems faced by women entrepreneurs are as
follows:
1. Family ties: Women in India are very emotionally attached to their families. They are supposed to
attend to all the domestic work, to look after the children and other members of the family. They are
over burden with family responsibilities like extra attention to husband, children and in laws which take
away a lots of their time and energy. In such situation, it will be very difficult to concentrate and run the
enterprise successfully.
2. Male dominated society: Even though our constitution speaks of equality between sexes, male
chauvinism is still the order of the day. Women are not treated equal to men. Their entry to business
requires the approval of the head of the family. Entrepreneurship has traditionally been seen as a male
preserve. All these puts a break in the growth of women entrepreneurs.
3. Lack of education: Women in India are lagging far behind in the field of education. Most of the
women (around sixty per cent of total women) are illiterate. Those who are educated are provided either
less or inadequate education than their male counterpart partly due to early marriage, partly due to son’s
higher education and partly due to poverty. Due to lack of proper education, women entrepreneurs
remain in dark about the development of new technology, new methods of production, marketing and
other governmental support which will encourage them to flourish.
4. Social barriers: The traditions and customs prevailed in Indian societies towards women sometimes
stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another
and hinders women entrepreneurs too. In rural areas, they face more social barriers. They are always seen
with suspicious eyes.
5. Shortage of raw materials: The scarcity of raw materials, sometimes nor, availability of proper and
adequate raw materials sounds the death-knell of the enterprises run by women entrepreneurs. Women
entrepreneurs really face a tough task in getting the required raw material and other necessary inputs for
the enterprises when the prices are very high.
6. Problem of finance: Women entrepreneurs stiffer a lot in raising and meeting the financial needs
of the business, Bankers, creditors and financial institutes are not coming forward to provide financial
assistance to women borrowers on the ground of their less credit worthiness and more chances of business
failure. They also face financial problem due to blockage of funds in raw materials, work-in-progress
finished goods and non-receipt of payment from customers in time.
7. Tough competitions: Usually women entrepreneurs employ low technology in the process of
production. In a market where the competition is too high, they have to fight hard to survive in the
market against the organised sector and their male counterpart who have vast experience and capacity to
adopt advanced technology in managing enterprises
8. High cost of production: Several factors including inefficient management contribute to the high cost
of production which stands as a stumbling block before women entrepreneurs. Women entrepreneurs
face technology obsolescence due to non-adoption or slow adoption to changing technology which is a
major factor of high cost of production.

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneur in India 327

9. Low risk-bearing capacity: Women in India are by nature weak, shy and mild. They cannot bear
the amount risk which is essential for running an enterprise. Lack of education, training and financial
support from outsides also reduce their ability to bear the risk involved in an enterprises.
10. Limited mobility: Women mobility in India is highly limited and has become a problem due to
traditional values and inability to drive vehicles. Moving alone and asking for a room to stay out in the
night for business purposes are still looked upon with suspicious eyes. Sometimes, younger women feel
uncomfortable in dealing with men who show extra interest in them than work related aspects.
11. Lack of entrepreneurial aptitude: Lack of entrepreneurial aptitude is a matter of concern for
women entrepreneurs. They have no entrepreneurial bent of mind. Even after attending various training
programmes on entrepreneur ship women entrepreneurs fail to tide over the risks and troubles that may
come up in an organizational working.
12. Limited managerial ability: Management has become a specialized job which only efficient managers
perform. Women entrepreneurs are not efficient in managerial functions like planning, organizing,
controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited
managerial ability of women has become a problem for them to run the enterprise successfully.
13. Legal formalities: Fulfilling the legal formalities required for running an enterprise becomes an
upheaval task on the part of an women entrepreneur because of the prevalence of corrupt practices in
government offices and procedural delays for various licenses, electricity, water and shed allotments. In
such situations women entrepreneurs find it hard to concentrate on the smooth working of the enterprise.
14. Exploitation by middle men: Since women cannot run around for marketing, distribution and
money collection, they have to depend on middle men for the above activities. Middle men tend to
exploit them in the guise of helping. They add their own profit margin which result in less sales and lesser
profit.
15. Lack of self-confidence: Women entrepreneurs because of their inherent nature, lack of self-
confidence which is essentially a motivating factor in running an enterprise successfully. They have to
strive hard to strike a balance between managing a family and managing an enterprise. Sometimes she has
to sacrifice her entrepreneurial urge in order to strike a balance between the two.
Factors Influencing Women Entrepreneurship
Push Factors Influencing Women Pull
Factors Entrepreneurship Factors

1. Push Factors: Push factors are elements of necessity such as insufficient family income,dissatisfaction
with salaries job, difficulty in finding work and a need for flexible work schedule because of family
responsibilities. These factors may have more importance for women than for men.
2. Pull Factors: Factors that work as entrepreneurial drive factors relate to
Successful Leading Business Women in India
The 21st leading business women in India:-
ŠŠ Akhila srinivasan, Managing Director , Shriram Investments ltd.
ŠŠ Chanda Kocchar, Executive Director, ICICI Bank
ŠŠ Ekta Kapoor, Creative Director, balaji Telefilms Ltd.
ISBN: 978-93-5300-292-3 Technical Session - III
328 Role of Women Entrepreneur in India

ŠŠ Jyoti Naik, President, Lijjat Papad.

ŠŠ Kiran Mazumdar Shaw, Chairman & Managing director, Biocon Ltd.
ŠŠ Lalita D.Gupte, JMD , ICICI Bank.
ŠŠ Naina Lal Kidwar, Deputy CEO , HBSE.
ŠŠ Preetha Reddy , Managing Director, Apollo hospitals.
ŠŠ Priya Paul, Chairman, Apeejay Park Hotels.
ŠŠ Rajshree Pathy, Chairman, Rajshree Sugars & Chemicals ltd.
ŠŠ Ranjana Kumar, Chairman, NABARD.
Steps Taken by the Indian Government
The growth and development of women entrepreneurs required to be accelerated because
entrepreneurial development is not possible without the participation of women.
Therefore, a congenial environment is needed to be created to enable women to participate actively
in the entrepreneurial activities. There is a need of Government, non-Government, promotional and
regulatory agencies to come forward and play the supportive role in promoting the women entrepreneur
in India.
The Government of India has also formulated various training and development cum employment
generations programs for the women to start their ventures. These programmes are as follows:
1 Steps taken in Seventh Five-Year Plan:
In the seventh five-year plan, a special chapter on the “Integration of women in development” was
introduced by Government with following suggestion:
A) Specific target group: It was suggested to treat women as a specific target groups in all major
development programs of the country.
B) Arranging training facilities: It is also suggested in the chapter to devise and diversify vocational
training facilities for women to suit their changing needs and skills.
C) Developing new equipment’s: Efforts should be made to increase their efficiency and productivity
through appropriate technologies, equipment’s and practices.
D) Marketing assistance: It was suggested to provide the required assistance for marketing the products
produced by women entrepreneurs.
E) Decision-making process: It was also suggested to involve the women in decision-making process.
2 Steps taken by Government during Eight Five-Year Plan:
The Government of India devised special programs to increases employment and income-
generating activities for women in rural areas. The following plans are lunched during the Eight-Five Year
Plan:
1. Prime Minister Rojgar Yojana and EDPs were introduced to develop entrepreneurial qualities
among rural women.
2. Women in agriculture scheme was introduced to train women farmers having small and marginal
holdings in agriculture and allied activities.
3. To generate more employment opportunities for women KVIC took special measures in remote
areas.
Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Role of Women Entrepreneur in India 329

4. Women co-operatives schemes were formed to help women in agro-based industries like dairy
farming, poultry, animal husbandry, horticulture etc. with full financial support from the
Government.
5. Several other schemes like integrated Rural Development Programs (IRDP), Training of Rural
youth for Self-employment (TRYSEM) etc. were started to alleviated poverty. 30-40% reservation
is provided to women under these schemes.
3 Steps taken by Government during Ninth Five-Year Plan:
Economic development and growth is not achieved fully without the development of women
entrepreneurs. The Government of India has introduced the following schemes for promoting women
entrepreneurship because the future of small scale industries depends upon the women-entrepreneurs:
1. Trade Related Entrepreneurship Assistance and Development (TREAD) scheme was lunched
by Ministry ofSmall Industries to develop women entrepreneurs in rural, semi-urban and urban
areas by developing entrepreneurial qualities.
2. Women Comkp0onent Plant, a special strategy adop0ted by Government to provide assistance
to women entrepreneurs.
3. Swarna Jayanti Gram Swarozgar Yojana and Swaran Jayanti Sekhari Rozgar Yojana were introduced
by government to provide reservations for women and encouraging them to start their ventures.
4. New schemes named Women Development Corporations were introduced by government to
help women entrepreneurs in arranging credit and marketing facilities.
5. State Industrial and Development Bank of India (SIDBI) has introduced following schemes to
assist the women entrepreneurs. These schemes are:
»» Mahila Udyam Nidhi
»» Micro Cordite Scheme for Women
»» Mahila Vikas Nidhi
»» Women Entrepreneurial Development Programmes
»» Marketing Development Fund for Women
4. Consortium of Women entrepreneurs of India:
Provides a platform to assist the women entrepreneurs to develop new, creative and innovative
techniques of production, finance and marketing.
There are different bodies such as NGOs, voluntary organizations, Self-help groups, institutions
and individual enterprises from rural and urban areas which collectively help the women entrepreneurs
in their activities.
5 Training programmes:
The following training schemes especially for the self-employment of women are introduced by
government:
ŠŠ Support for Training and Employment Programme of Women (STEP).
ŠŠ Development of Women and Children in Rural Areas (DWCRA).
ŠŠ Small Industry Service Institutes (SISIs) (iv) State Financial Corporations
ŠŠ National Small Industries Corporations (vi) District Industrial Centres (DICs)

ISBN: 978-93-5300-292-3 Technical Session - III

330 Role of Women Entrepreneur in India

6 Mahila Vikas Nidhi:

SIDBI has developed this fund for the entrepreneurial development of women especially in rural
areas. Under Mahila Vikas Nidhi grants loan to women are given to start their venture in the field
like spinning, weaving, knitting, embroidery products, block printing, handlooms handicrafts, bamboo
products etc.
7 Rashtriya Mahila Kosh:
In 1993, Rashtriya Mahila Kosh was set up to grant micro credit to pore women at reasonable
rates of interest with very low transaction costs and simple procedures.
Conclusions
India is a male dominated society and women are assumed to be economically as well as socially
dependent on male members. Women entrepreneurs faced lots of problems like lack of education, social
barriers, legal formalities, high cost of production, male dominated society, limited managerial ability,
lack of self-confidence etc. Various factors like Pull and Push factors influencing women entrepreneurs.
Successful leading business women in India. Government takes various steps for the upliftment of women
entrepreneurs in 7th five year plan,8th five year plan and in 9th five year plan. Women have the potential
the potential and determination to setup, uphold and supervise their own enterprise in a very systematic
manner, appropriate support and encouragement from the society, family, government can make these
women entrepreneur a part of mainstream of national economy and they can contribute to the economy
progress of India.
References
yy Bowen, Donald D. & Hirsch Robert D. (1986), The Female Entrepreneur: A career Development Perspective, Academy of Management
Review, Vol. 11 no. 2, Page No. 393-407.
yy Cohoon, J. McGrath, Wadhwa, Vivek & Mitchell Lesa, (2010), The Anatomy of an Entrepreneur- Are Successful Women Entrepreneurs
Different From Men? Kauffman, The foundation of entrepreneurship.
yy Women Entrepreneurship Development in India, www.indianmba.com/Faculty_Column/FC1073/fc1073.html
yy Hackler, Darrene; Harpel, Ellen and Mayer, Heike, (2008), “Human Capital and Women‟s Business Ownership”, Arlington, Office
of Advocacy U.S. Small Business Administration, August 2006, VA 22201 [74], No. 323.
yy Singh, Surinder Pal, (2008), An Insight Into The Emergence Of Women-owned Businesses As An Economic Force In India, presented
at Special Conference of the Strategic Management Society, December 12-14, 2008, Indian School of Business, Hyderabad
yy Tambunan, Tulus, (2009), Women entrepreneurship in Asian developing countries: Their development and main constraints,
yy Journal of Development and Agricultural Economics Vol. 1(2), Page No. 027-040.the glass ceiling. Thousand Oaks, CA: Sage.
yy http://www.chimc.in/Volume2.1/Volume2Issue1/GurendraNathBhardwaj.pdf
yy A Reflection of the India women in Entrepreneurial World
yy www.iimahd.ernet.in/publications/data/2005-08-07 indirap.pdf

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
 Women Entrepreneurship in The Rural Environment

Dr. B.V.H. Kameswara Sastry

Associate Professor

Abstract: Women constitute around half of the world’s population. Hence, they can rightly be regarded as the “better half of
the society”. People living in rural peripheries especially women are illiterate and shoulder the burden of the world’s poverty. The
productive potentiality of these rural women is indispensable to achieve the resilient economic growth. Reducing urban-rural
and gender inequalities is essential for combating the problems like poverty, unemployment and helps in generating income
source. Rural women are the major neglected sector. Developing rural women entrepreneurship is the need of the hour which
can helps to overcome the problems of unemployment and poverty. It increases self-employment and reduces unemployment,
under employment and disguised employment. Rather than push factors, pull factors should influence the rural women to start
their own business of their interest which brings a qualitative change. For this they require adequate education, awareness,
motivation, support and encouragement to avail the market opportunities with their inherent potentiality, initiative, creativity,
commitment, risk-taking ability, dedication and devotion towards the work as their basic investments. Only by the joint efforts
of both men and women in this concern can bring a healthy change which helps the country to develop with in no time.
Key words: Self Help Groups, Rural women entrepreneur, Women empowerment, risk-taking ability, creativity,
commitment
Introduction
Women represent 50 percent of the world population but they are receiving only 10 percent of
the world income and 1 percent of world’s assets. Women and girls constitute three-fifth of the world’s
poor. Their poverty level is worse than that of men as clear gender disparities in education, employment
opportunities and decision making power exist. So it is clear that people living in rural peripheries,
especially women, shoulder the burden of the world’s poverty. They have been deprived for too long from
participating in the opportunities and benefits of economic growth and globalization.
Rural entrepreneurship is considered as one of the most important factors contributing to the
economic development of the rural society. Promotion of entrepreneurship among rural women is a
major step to increase women participation in rural and economic development. Rural entrepreneurship
is today a buzzword in the changing rural economy. It is a purposeful activity initiating, promoting and
maintaining economic growth. Rural entrepreneurship is not new to our culture. What it needs today is
to nurture this spirit and instill it in the present and coming generations of both men and women. It is
said that if a man starts a business venture he only becomes the entrepreneur, while when a women takes
to entrepreneurship the whole family becomes entrepreneurial in its behaviour and outlook. Therefore,
if women gain economic strength, they gain visibility and voice. With the economic restructuring
and societal acceptance in the modern days, women have started establishing and running enterprises
successfully.
Though women entrepreneurship is in its infancy and transition period, it is all set to go a long
way. Today rural women entrepreneurs represent a group of women who have broken away from the
beaten track and are exploring new avenues of rural and economic development. The number of women
entrepreneurs have grown over a period of time and it is clear that the percentage is increasing every year.
The present article endeavours to study the role of rural women entrepreneurs in the contribution towards
the overall growth of the country. It also studies the bottlenecks for their growth and also offers some
suggestions for the development of rural women entrepreneurs and overall development.
Driving Forces for Women Entrepreneurs:
ŠŠ To attain economic independence.
332 Women Entrepreneurship in The Rural Environment

ŠŠ To establish their own creativity.

ŠŠ To establishing their own identity.
ŠŠ To achieve excellence.
ŠŠ To developing risk-taking ability.
ŠŠ To attain equal status in society.
ŠŠ To have greater freedom and mobility.
ŠŠ To earn additional income to the family.
ŠŠ To achieve women empowerment.
ŠŠ To make use of unutilized and underutilized local resources.
Indian Perspective
India has the world’s largest number of professionally qualified women. It has more female
doctors, surgeons, scientists and professors than in U.S. It also has successful women entrepreneurs.
India has more working women than any other country in the world. But, the women who are highly
qualified, skilled, take-up good jobs and are very successful as entrepreneurs are confined to urban areas
and their contribution towards the generation of National income and economic growth is not adequate.
In India the rural area contributes to 72 percent and among that 50 percent are women, who are not
having adequate opportunities to educate, develop, get good opportunities or start their own business by
which they can stand on their own feet. Thus they are not given an opportunity to contribute for national
income, growth and development.
In India we face the problems of unemployment, disguised employment, under employment and
poverty. Rural women entrepreneurship can be a good answer to all these problems as it not only provides
employment and source of income to the major neglected sector of the country but also to all those who
become associated with the business concern.
Government Initiatives
The Government of India has been encouraging self-employment and has started several schemes
to promote entrepreneurship among women. Various income generating schemes like Support to
Training and Employment Programme (STEP), Swavalambana Socio-Economic Programme, Pradhan
Mantri Gram Swarozgar Yojana, Pradhan Mantri Shahri Swarozgar Yojana, Jana Shikshan Sansthan (JSS)
etc. have been launched to this end. Women are encouraged to organize and form Self Help Groups
(SHGs) and Cooperatives which undertake activities to generate income for the most vulnerable groups
of women. Rastriya Mahila Kosh (RMK) was set up to provide loans to these women who could then
become self employed by establishing their own business or small scale enterprises. Women’s Development
Corporations, operating in a few States in India are promoting entrepreneurship among women at the
gross root level. In this way, women at the grass roots and other levels, who are managing small-scale
industries and enterprises, are becoming economically empowered.
Bottlenecks for the development of women Entrepreneurs
Inspite of their important contribution to socioeconomic development, women suffer from
various constraints, which inhibit them from fully realizing their potential for development. Some of the
reasons are as below:

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship in The Rural Environment 333

ŠŠ Rural women are unaware of the legal provisions and legislative systems that help them to take
initiative and avail opportunities to become entrepreneurs. Their understandings as well as their
capacity to identify unjustified application of the regulation are weak.
ŠŠ Increase in the crime rate and lack of security to women is also not permitting them to come out
and participate in the business activities at par with men.
ŠŠ Complex regulatory requirements and lengthy licensing process and costly operations often
discourage rural women to start a business.
ŠŠ Furthermore, their reproductive role in family and the community puts women in a disadvantaged
position to engage in entrepreneurial activities.
ŠŠ Cultural values and social norms hinder the equal participation of women in the society.
ŠŠ One of the major constraints women face as entrepreneurs is the unequal access to productive
resources and services, including finance and skill upgrading opportunities.
Some other problems which our rural women entrepreneurs face today are:
ŠŠ Small investment.
ŠŠ Tough competition.
ŠŠ Lack of awareness of marketing techniques.
ŠŠ Lack of women entrepreneur role models in rural areas.
ŠŠ Business not in the area of interest.
ŠŠ Lack of confidence.
ŠŠ Lack of motivation.
ŠŠ Lack of family support.
ŠŠ Inability to dream.
ŠŠ Negative self-perception.
ŠŠ Lack of computer knowledge and access to internet.
Measures to remove the bottlenecks and come over the problems:
ŠŠ Women human resource should develop in such a way to increase their competitive
entrepreneurship, technology absorbing capacities and control over asset management.
ŠŠ To respond to the needs of women to materialize their economic potential and thereby to improve
their standard of living, it is necessary to design programmes by applying mainstreaming strategy.
Necessary measures have to be devised to integrate women as decision-makers, participants and
beneficiaries in all relevant development activities, irrespective of the sector or type of activity.
ŠŠ It is also necessary to address the totality of problems rural woman face as entrepreneurs, due to
wide spectrum of elements effecting the equitable participation in development.
ŠŠ A bottom-up growth strategy has to be planned which focuses on the transformation and
diversification of micro and small scale enterprises run by rural women to growth-oriented
activities and on increasing the productive capacity in order to enable them to participate in the
main stream economy of the nation.

ISBN: 978-93-5300-292-3 Technical Session - III

334 Women Entrepreneurship in The Rural Environment

ŠŠ A plan or strategy must be designed and implemented in close collaboration with various
development partners in different specialized areas, notably education, health, human rights as
well as environment and energy.
ŠŠ By organising themselves in groups and associations, rural women entrepreneurs can voice their
specific concerns and advocate change through formal policy making process. This entrepreneurial
group capacity helps to plan and implement common projects and keep motivation going. They
can establish common projects such as:
»» Collective marketing.
»» Bulk purchasing.
»» Group lending and group oriented enterprises.
»» Common facilities like sharing machines and equipment, a warehouse or a vehicle or office
furniture.
ŠŠ Top level and successful women entrepreneurs in urban areas and country wide should help,
involve and encourage rural women entrepreneurs in mainstreaming their activities at national
level. For example; women involved in textile and garments business in urban areas and well
developed areas can give orders in bulk to rural women entrepreneurs involved in crochet lace
business and saree embroidery works.
ŠŠ Strong rules and measures should be taken and implementation of severe punishments should be
made to bring down crime rate and to eradicate sexual harassments on women.
Conclusion
Scope and need for rural women entrepreneurs is high in India. Hence the development of Rural
Women Entrepreneurship is the need of the hour. They also help in producing eco-friendly and pollution
free products which are necessary as pollution and global warming are a very serious and burning topics
today. Business opportunities are not created by external intervention - they arise from market and
entrepreneurial capabilities. The issue is to enable rural women entrepreneurs to take advantage of market
opportunities.
Many government policies, reservations and opportunities are being exploited and are used by
males making their wife or mother as instruments in the process i.e., business will be run in his wife’s
or mother’s name but the ropes will be in his hands. Reducing Urban – Rural inequalities and gender
inequalities is essential for the development of any Country. Mobilizing the potential productivity of
rural women by developing them as entrepreneurs is one of the best solutions and is indispensable to
achieve the resilient economic growth that will pull people above the poverty line.
We can come to a conclusion that overall literacy and gender equality is a prerequisite for
development because of the contribution women make and the role they play in society and in the
economic well-being of the family and community. Be it in rural or urban area, be it micro or medium
or large enterprise, women must be an integral part of development not only as beneficiaries but also
as decision-makers and agents of change. One thing is clear that, whatever may be the suggestions,
whatever may be the rural women entrepreneurship development programmes and projects undertaken
and whatever may be the government policies for encouraging rural women entrepreneurs, no change
comes unless and until the rural women they themselves have a strong desire and passion to develop.
Change should come from within. They have to be educated and made clear that “Nobody can make
them feel inferior without their concern”. And once they are strongly determined and has a desire to

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Women Entrepreneurship in The Rural Environment 335

become entrepreneurs, nothing and nobody can stop them. In such process the hurdles and difficulties
in their way becomes negligible.
Finally as a strong, unavoidable and standard measure overall literacy rate and awareness regarding
the concern should increase irrespective of men and women. Because, though women are educated,
motivated, aware and ready to grab the opportunities, men should be in a position to accept equality in
gender and to encourage their mother, sister, wife and daughter to become an entrepreneur.
References
yy Amartya Sen and Jean Dreze, India Economic Development and Social Opportunity, Oxford University Press, 1996.
yy Anil Kumar S, Poornima S.C, Abraham M.K and Jayashree K, Entrepreneurship Development, New Age International (Pvt.) Ltd,
New Delhi, 2004.
yy Anil Kumar, Financing Pattern of Enterprises owned by Women Entrepreneurs, The Indian Journal of Commerce, Vol.57, No.2, April-
June, 2004, pp 73 and74.
yy Anand Neeta, Working Women: Issues and Problems, Yojana, March 2003, pp.11-14.
yy Aravinda.C, and Renuka S, Women Entrepreneurs: An Exploratory Study, SEDME Journal, September, Vol.28, No.3, 2001,pp. 1-7.
yy Behara Sreenivasa R and Niranjan K.(2012), Rural Women Entrepreneurship in India, IJCEM International Journal of Computational
Engineering & Management, November.Vol. 15, Issue 6.
yy Business Today, September 26, 2004, p.85.
yy Business Today, April 14-17, 2003, p.64.
yy Business Line, Saturday, April 27, 2002, p.1.
yy Chandar S. and Arora D (2013), Study of Financial Problems of Women Entrepreneurs, IJSSIR, Vol. 2(4). April.
yy Dubhashi M., Women Entrepreneurship in Asia-Ventures of Experiences of Asian Women, SEDME Journal, Vol.30, No.4, 2003,
pp.21-24.
yy George P.A., Women Entrepreneurship in India, Pranjan, Vol.2, No.1, Jan-June 1998.
yy Government of India, Economic Survey, 2003-2004.
yy Government of India(2001-02), Third All India Census of SSI, DC(SSI), Ministry of SSI, New Delhi, 2002.
yy Gupta C.B and Khanka S.S, Entrepreneurship and Small Business Management, Sultan Chand, New Delhi, 2003.
yy Heggade O.D, Development of Women Entrepreneurs – Problems and Prospects, Economic Affairs, 1981, pp. 39-50.
yy Hanuman Prasad and B.L. Verma, Women Entrepreneurship in India, The Indian Journal of Commerce, Vol.59, No.2, April-June,
2006.
yy Kondaiah C, Entrepreneurship in the New Millennium-Challenges and Prospects, Tata McGraw-Hill Publishing Company, New
Delhi, 2002 .

ISBN: 978-93-5300-292-3 Technical Session - III

Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development
Shaik Mastan Vali,
Assistant Professor in Malla Reddy Engineering College and Management Sciences, Hyderabad – 501 401

Abstract: The entrepreneur is an economic man, who tries to maximize his profits by innovation. Innovation involves problem
solving and entrepreneur gets satisfaction from using capabilities in attacking problems. There are around seven lakh villages in
India and also that more than 70% of our population live in villages of half are women. Rural women represent a sizeable percentage
of labor force in our country yet; they have not been brought under the main stream of development. The rural women may be
mobilized and may lead to the nation towards the path of progress and prosperity. The rural women by all means can be very effective
agents of change for better homes, better society and ultimately for robust economy in the present global scenario. In the Globalised
world, women entrepreneurs are playing a vital role and they have become important part of the global quest. The Government
of India has been implementing several policies and programmes for the development of women entrepreneurship in India. Some
researchers also pointed out that these women entrepreneurs were the key to leading us out of the previous economic recession.
Key Words: Women Entrepreneurs, Rural Development, Challenges, Contributions, Suggestions and Factors for successful
WE

Introduction:
The Entrepreneur is an economic man who tries to maximize his profits by innovation. Innovation
involves problem solving and entrepreneur gets satisfaction from using capabilities in attacking problems.
Women entrepreneurs may be defined as a women or a group of women who initiate, organize and run a
business enterprise. Women owned business are highly increasing. “You can tell condition of a nation by
looking at the status of its women.”- By- Jawaharlal Nehru Men & women both are two wheels of society
and contribution of both is very essential for building healthy nation.
There are around seven lakh villages in India and more than 70% of our population lives in
villages. In rural sector 56% of the male and 33% of the female were in the labour force. About 66% of the
female population in the rural sector is idle & unutilized. Even after 56 years of the independence women
in India are struggling for entrepreneurial freedom. They have to face various socio-economic problems.
But now the Scenario is changing fast with modernisation, urbanisation and development of education
and business.
Thus the opportunities of employment for women have increased drastically. We have an example
of Kerala State in India. In 1975-76 the number of Industrial units run by women entrepreneurs in Kerala
was 73. It has increased to 4, 190 industrial Units in 1993-94. The women entrepreneurs in Kerala are
now at the top of all industries right from readymade garments to high tech computers. ( Kuruksehtra,
June 1998). In the state Jharkhand, Silli (legislative assembly area) is one of the best example where
15,000 women are involved in “Gunj Pariwar” (NGO) and women entrepreneurs are involved in Knitting,
mushroom agriculture & pickle making Industry etc.
Rural Entrepreneurship:
Indian rural economy is also experiencing behaviour of entrepreneurial. Aim of most farmers
is to earn profits from farming as from any other business. A farm business necessary requires deliberate
decision and proper investment, after assessing risk and available resources to maximize profit. Therefore,
entrepreneurship is not simply adoption of new activity but it is transformation of a person from traditional
to modern India.
Organizations will face seven trends in the next decade as they flight to survive, grow and remain
competitive. (1) Speed and uncertainty will prevail, (2) Technology will continue to disrupt and enable.
Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development 337

(3) Demographics will dictate much of what happens in business, (4) Loyalty will erode (5) Work will be
done anywhere, anytime, (6) Employment as we know it will disappear.
The basic entrepreneurial principles should be applied to rural development. This would result in:
(a) Better distribution of farm produce resulting in the rural prosperity, (b) Entrepreneurial occupation
rural for youth resulting in reduction of disguised employment and alternative occupations for rural youth,
(c) Formations of big cooperatives like Amul for optimum utilization of farm produce (d) Optimum
utilization of local resource in entrepreneurial venture by rural youth.
Women Entrepreneurs In Rural India:
The origin of women entrepreneurship in India geared up only in last three decades. The spirit of
enterprising transforms ordinary men into entrepreneurs and ideas into economic realities. In developing
economies, the small, medium and cottage industries are able to create livelihood to the poor and needy
of the society. The small savings of rural areas are contributing more in establishing the small and micro
enterprises in India. The women empowerment has been important role of Governments and other non-
governmental organizations. The women are endowed with innate power that can make them successful
entrepreneurs. Women entrepreneurship is inherent and also a natural process.
The Indian society has not bothered to pay due attention to appreciate and involve its women
members in the promotion of its economic development. When both men and women together work
and contribute for the economic development, no doubt that the national economy will develop at a
faster rate. The Government of India has defined a woman entrepreneurship as “an enterprise owned and
controlled by a woman having a minimum financial interest of 51% of the capital and giving at least
51% of the employment generated in the enterprise to women”. In India, women constitute around 48
percent of the population but their participation in the economic activities is only 34 percent. As per the
Human Development Report (2012), India ranks 96th on the gender related development index of 137
nations. The gender empowerment measures, which estimate the extent of women participation in the
country’s economic and political activities, rank India as 110th of the 166 nations. Indian women will
prove themselves to be highly potential productive force for the development of the nation.
In the 70s and 90s, the women in India were hardly engaged in any type of self employment.
They were perceived as a homemaker and an idea that a woman can take up entrepreneurial activity was a
joke. It was predominantly a male dominated field till the rise of 90s. After the introduction of the policy
of privatization, liberalization and globalization the women started responding to the changes in the
environment and their entry in the entrepreneurial activities was noticed. The process of computerization
also was an aid for women in their way. The planning commission and also the Indian Government
have recognized the need for women to participate in the mainstream of economic growth. Women
entrepreneurship is understood as an effective strategy to solve both the rural and urban poverty.
The government of India through different policies and programmes is encouraging the Indian
women to come forward and involve in different entrepreneurial activities. The government has extended
subsidies, tax waiver schemes and concessions for the women entrepreneurs are as below:
(1)Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women -
Provided by the Ministry of Micro, Small & Medium Enterprises, (2) Integrated Support Scheme provided
by the National Small Industries Corporation (NSIC), (3) Prime Minister‘s Employment Generation
Programme (PMEGP) provided by the Khadi and Village Industries Commission (KVIC) and Coir
Board , (4) Priyadarshini Yojana Scheme by Bank of India, (5) Support to Training and Employment
Programme for Women (STEP) provided under Schemes of Ministry of Women and Child Development,

ISBN: 978-93-5300-292-3 Technical Session - III

338 Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development

(6) Swayam Siddha provided under Schemes of Ministry of Women and Child Development, (7) Micro
& Small Enterprises Cluster Development Programme (MSE-CDP), (8) Credit Guarantee Fund scheme,
(9) SIDBI Marketing Fund for Women (MFW), (10) Management Development Programs, (11) Indira
Mahila Yojna, (12) Mahila Samiti Yojna, (13) National Banks for Agriculture And Rural Development
Schemes, (14) SBI s Stree Shakti Scheme, (15) NGOs Credit Schemes, (16) Micro Credit Schemes, (17)
Integrated Rural Development Programme (IRDP), (18) Women„s Development Corporations (WDCs),
(19) Marketing of Non-Farm Products of Rural Women (MAHIMA), (20) Assistance to Rural Women
in Non-Farm Development (ARWIND) schemes. The efforts of the Govt. of India, Banks, NGOs and
various other associations have encouraged the women to start up and sustain in the entrepreneurial
activities. They have also facilitated the woman empowerment. Women Empowerment is considered
essential for achieving the goals for sustainable and inclusive development.
Objectives of the Study:
To study the role of women entrepreneurs in the economic development of India. (2) To study
the factors responsible for the success of the Women Entrepreneurs (3) To study the challenges faced by
the women entrepreneurs (4) To highlight the contributions made by the Women Entrepreneurs to the
Indian economy. (5) To give suggestions.
Methodology:
The study is based on the extensive survey of secondary data which is collected from published
research papers, websites, reference books, journals and reports etc.
Challenges Faced By Women Entrepreneurship:
Women have to face various problems in both the cases--while entering into any entrepreneurial
activity and also while they are continuing with their business. No doubt even men entrepreneurs also
have to face challenges but being a woman the womanhood has created certain challenges which the
women have to face exclusively.
(a)Conflicts between domestic and entrepreneurial commitments: A woman primarily has to look
after the domestic work. Her family obligations are obstacles for her most of the times for conducting
her entrepreneurial activities. Her responsibilities towards her children and the old members and family
as whole, results in very little time left for her to engage herself in any business activity. (b) Gender gaps
in education: In many families in India girls/women are avoided to go to schools and colleges due to
various reasons. The family members stop their education at different levels before graduation, thus the
question of higher education doesn‘t come into picture. There is a lack of combination of education,
vocational courses and other courses necessary for taking up any entrepreneurial activity. (c) Not Being
Taken Seriously: Women who take up any business are not taken seriously. The people around her feel
that it is her hobby or any side project to her family duties. Women‘s opinions and advice are not always
viewed as expert compared to a man‘s opinion. (Dr.Vijaykumar A.and Jaychitra S.) This gender bias
becomes a major hindrance for a woman entrepreneur. (d) Fear of taking risks: Women are considered as
being more afraid of taking risks and moving forward. Women are more comfortable in their safe zone.
They are afraid of moving out of their comfort zones. This fear may be fear of failure, fear of success, fear
of being on their own. (e) Wanting to please everyone: Women, right from their childhood, are taught to
be nice with everyone. They are taught to say Yes‘ always and please everyone and due to this women are
taken for granted many a times. They feel difficult to say no to anyone which may be at the cost of their
needs , business or otherwise. (f ) Wanting to be perfect in all tasks: Women want to be always perfect in
all the tasks may it be in their personal life or their professional life. They feel that they‘are the best ones

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development 339

who can perform any task in front of her perfectly. This makes them poor in delegation of authority which
may be an obstacle for their success in their business. (g) Patriarchal Society: Women do not get equal
treatment in this male dominated society even in these days when women work in space research centres.
Ours is a patriarchal society which pampers the male ego and whims. In this scenario, a woman taking up
entrepreneurial activity is a distant dream.
The other challenges faced by women are those which are common to both men and women
entrepreneurs. Shortage of finance, marketing problem, shortage of raw material, stiff competition,
high cost of production, limited managerial ability, lack of entrepreneurial training, etc are the various
challenges faced by women entrepreneurs.
Contributions Of Women Entrepreneurs:
The role of women in the economic development of the nation cannot be neglected. In fact they
have to be encouraged and motivated to take active part in any business activity. Women occupy a larger
share of the informal economy and also in the micro and small enterprise sector in India. This leads to
poverty reduction and minimising the problem of unemployment.
(i) Capital Formation: An economy grows rapidly if the idle savings are invested in some
productive activities. The idle funds mobilised and invested in the industry and thus optimum utilization
of national resources is done. This phenomenon of capital formation accelerates the economic growth.
(ii) Improvement in per capita income: The exploitation of the opportunities to convert the idle resources
like land, labour and capital in to national income and wealth in the form of goods and services is the
outcome of increasing entrepreneurial activities. The per capita income and the net national product
will be increased resultantly. (iii) Generation of employment: Entrepreneurial activities give rise to
employment opportunities. The women entrepreneurs become the job creators and not job seekers.
Naturally the economic growth will be accelerated by generating employment. (iv) Balanced regional
development: The regional development of the nation is balanced as the women mostly start their business
activities in the rural and underdeveloped regions. Government also encourages the entrepreneurs to
start businesses in these areas through different schemes and subsidies. (v) Improvement in standard of
living: Various products are produced by the women in their small scale businesses, which are offered to
the people at reasonable rates. New products are introduced and the scarcity of essential commodities is
removed. This facilitates the improvement in standard of living. (vi)Innovations: Innovation is the key of
entrepreneurship. (Dr. G. Malyadri) An entrepreneur through his/her innovations begins new enterprise
and thus plays an important role of pioneer and industry leader. As we have seen above, the enterprise
leads to acceleration of economic growth through different angles.
Women entrepreneurs are transforming families and society, besides making contributions to
business development. Women are more likely to reinvest their profits in education, their family and their
community. Despite of all these contributions, today we find that rate of women entrepreneurs is very
low. Government and non-government agencies also have recognized their contributions and have paid
increasing attention towards the empowerment of women entrepreneurs.
Suggestions to Overcome the Challenges:
No doubt, women have to come forward to start up the enterprise. But she needs a little support
in the initial stages of setting up the business.
1. Finance cells: Finance cells should be opened so that the women entrepreneurs will get finance and
also appropriate guidance regarding the financial schemes available to them. (2) Education and awareness:

ISBN: 978-93-5300-292-3 Technical Session - III

340 Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development

The negative social attitude of the society can be changed by conducting different awareness programs and
educate the women and also the society regarding the fruits of women indulging in the entrepreneurial
activities. Women also should be made aware of the importance of education, different vocational courses,
so that they can make up their mind for starting enterprise. (3) Training Facilities: Women lack different
skills like the managerial skills, communication skills, language problems, etc. Various training programs
can be developed so that the women take full advantage and confidently engage themselves into any
business activity. (4) Planning: Women should never enter into any business without proper planning.
They have to create appropriate strategies. A blue print of the activities to be undertaken should be
prepared which will specify the product/service, the target customers, the mode of financing and the way
the business will be undertaken on daily basis. This will give a proper idea to the woman entrepreneur
of her responsibilities and her commitments. (5) Team Building: The woman entrepreneur has to forget
the fact that she is the only person who will do the particular task perfectly. She should have a team, the
members of which have different skills and strengths and the women should be able to coordinate with
the team and thus bring out all the strengths and skills in the members for the success of the business. (6)
Avoiding getting too close with the employees: Women, naturally, are family oriented. They are attached
to anybody as if he/she is that woman‘s family member. She gets too close to her employees which will
make her difficult many a times to maintain professional relationship with them. Thus the women should
be able to be professional and practical always and be informal at some times.
Factors Affecting for A Successful Women Entrepreneurship:
The following factors will be affected for a Successful Women Entrepreneurship.
(1)Early Childhood Experiences: White and Cooper (1997) described the characteristics of
women who have made it to the top in corporate, professional and public life and how they achieved their
success. They revealed early experience of coping independently with the environment generated a strong
sense of competence and self-confidence in these successful women. (2) Psychological Characteristics :
Successful female entrepreneurs exhibits psychological characteristics such as: high level of self-confidence,
determination, hard work, creating a position for themselves, superior quality output and the love for their
work high need for achievement and were also found to be internal locus of control. (3) Entrepreneurial
Competencies: Successful female entrepreneurs were found to exhibit entrepreneurial competencies such
as: taking initiatives, sees and acts on opportunities, persistence, information seeking, concern for
high quality of work, commitment to work contract, efficiency orientation, self-confidence, persuasion
and the use of influence strategies. (4) Formal and Informal learning: Successful female entrepreneurs
were found to have higher level of education. (5) External Support: Successful female entrepreneurs most
notably considered: family support, family support and social networking government support business
background of their respective families rather than education for their career in business, entrepreneurial
family background as an important element for their success.
Conclusion:
There is direct relationship between the economic growth, poverty reduction and women
entrepreneurship. It has been correctly stated by our first Prime Minister Pandit Jawaharlal Nehru, that
―when women move forward, the family moves, the village moves and the nation moves. The women in
the rural areas are subject to lots of restrictions in rural area of Indian. They are not regarded as economic
powerhouse; rather they are treated as dependent part of the society. Though they equally possesses the
potentialities to become a successful entrepreneur but the problems they face which are not similar to the
men’s problems, creates hindrances in the growth of entrepreneurial activities. The numbers of women

Technical Session - III UGC Sponsored National Seminar on Economy & Entrepreneurship
Challenges, Contributions and Factors for Successful Women Entrepreneurs in Rural Development 341

entrepreneurs from rural areas is very negligible. To increase the numbers of rural women entrepreneurs
the Central governments have to take lead role in the development of women entrepreneurship in whole
of rural areas in India. Than only, the possibility of increase in entrepreneurial activity by rural women
can be achieved.
References:
yy Bhagirathi P (2006): Concept and Context of new employment opportunities for women in agriculture.
yy Buragohain Rajkonwar Ajanta (2004): Entrepreneurship Development; Kalyani Publisher, New Delhi
yy Government of India (2007): Indian Industrial and Investment Promotion Policy.
yy Desai, V. 1991; Entrepreneurial Development, Vol. 1 Himalaya Publishing House, Bombay.
yy Vinesh, Role of women Entrepreneurs in India; Global Journal of Finance and Management; ISSN 09756477
yy Women entrepreneurship in India vol. 2 No.- 1 Jan. to June
yy SCHEMES FOR DEVELOPMENT AND PROMOTION OF WOMEN ENTREPRENEURS, http://www.smallindustryindia.com
yy RURAL ENTREPRENEURSHIP: N.G.Shah and Reshma Sherkhane, CTARA, IITBombay www.indianblogger.com
yy Problems of Women Entrepreneurs in India, MBA India Forum
yy www.articlesbase.com
yy www.samachar.com
yy www.dcmsme.gov.in

ISBN: 978-93-5300-292-3 Technical Session - III

 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the
Guntur District of Andhra Pradesh
*Dr. P. Nagamani, *Dr. T. Ramadevi
*Professor & Head, Hindu College of Management, Guntur, Andhra Pradesh,
**Professor & Head, Department of Commerce & Management,Sri Durga Malleswara Siddhartha Mahila Kalasala,Vijayawada,
Andhra Pradesh
Rural micro enterprises mine value addition to rural resources in rural areas engaging largely
rural bunion resources. The basic rationale of developing micro enterprises is that they provide additional
employment opportunities and ensure more equitable distribution of income and better standard of
living to the rural inhabitants. Global experience shows that the development of rural micro enterprises
is one of the most cost-effective ways of creating employment, scattering the industry, catalyzing research
and development and allowing entrepreneurial talent to prosper. The present study is an attempt to
analyze the manic characteristics of rural micro-entrepreneurs in the Guntur district of Andhra Pradesh.
The study also highlights the problems encountered by these enterprises and auras suitable measures
to eradicate then: The findings of the study suggest that there is a need for concerted efforts by the
government and rural masses to enhance the growth and prosperity of rural micro-enterprises.
Introduction
India is the fastest growing economy of the world, but still more than 70% of its population resides
in villages. There exists a considerable discrepancy in the pace of development between rural and urban
areas. Villages in India need to be empowered by enhancing the welfare of the rural people and unleashing
the innovations of entrepreneurs, which in turn will make the huge leap forward possible. The eastern
region is characterized by violent conflicts, insurgency and an extra economic burden that the rest of the
country has to bear. Andhra Pradesh, a part of east India, is one of the most culturally and geographically
distinct parts of the country. 56% of Andhra Pradesh population lives in villages. Agriculture accounts for
more than one-third of Andhra Pradesh income and employs 69% of the workforce. Average literacy rate
in rural areas is 70.44%. The unemployment problem is more pronounced in the rural area of Andhra
Pradesh as there is a gradual increase in educated unemployed. Rural micro enterprises ensure value
addition to rural resources in rural areas engaging largely rural human resources.
Since the word ‘micro’ represents small, the Micro, Small and Medium Enterprise Development
(MSMED) ACT. 2006 defines it as the enterprise engaged in the manufacturing or production of
goods, whose investment in plant and machinery does not exceed Rs. 25 lakh, and enterprise engaged
in providing or rendering of services, whose investment in equipment does not exceed Rs. 10 lakh.
Rural small-scale enterprises are those industrial and business undertakings where owners, individuals,
friends or relatives supply capital; they operate locally, and the size of business as well as management is
small. Small manufacturing and service enterprises such as brick kiln industry, stone crushing industry,
bakery, steel fabrication, cane and bamboo, washing soaps, food products, beauty parlors, tailoring and
embroidery, jewelry designing, supari processing are some of the examples of rural micro enterprises.
In India, where about 72% of the population lives in rural areas, the development and progress
of the country lies in the development of its villages. Any progress in growth and development does not
fulfill the needs of rural area and its people, especially the poor, cannot be claimed as development in
India (Sinha, 2015). Development of a country and decide its progress and performance. Urban and
rural is a choice loaded on its people, whether urban or rural. It is the individuals who shape a society
are the two sides of the same coin of economic development. While the urban sector has witnessed
The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 343

phenomenal growth and development, fueled by the post-independence era of industrialization, the rural
sector saw little corporate growth (Srivastava, 2016).
It is now recognized that development planning in India has to concentrate on generation of more
employment, as it is the only effective way of poverty alleviation, reduction of inequity and meaningful
growth (Kamalakannan, 2006). The unemployment problem in rural India, involving 70% of the Indian
labour force, can never be solved by industrialization and globalization. The answer to this problem lies
only in the creation of massive number of jobs where rural Indians can be gainfully employed. Such jobs
can become a reality only if small business and micro enterprises emerge intensively all over rural India
(Santana and Jegadeesan, 2008).
The existing industrial profile of Andhra Pradesh presents a very gloomy picture. Andhra Pradesh
has about 5,911,431 unemployed persons as per the live register of employment exchanges in 2010.
Acute unemployment, especially educated unemployment, continues to be a serious problem in the state.
As per the data available from the employment exchanges of the state, it is revealed that the number of
educated job-seekers on the live register of employment exchanges stood at 54 lakh in 2015 (Economic
Survey, Andhra Pradesh, 2014-15).
Development of rural micro enterprises in Andhra Pradesh plays a vital role in accelerating the
balanced regional development of this backward state. The agriculture sector is not sufficient to remove
rural unemployment. Even in agricultural enterprises, total employment in Andhra Pradesh accounts
for only 2.3%. Another aspect is also observed that the state is characterized by subsistence occupational
pattern and restricted consumption norms. Hence, neither the local supply of resources nor any demand
force operates effectively to take the risk to promote industrialization. Hence, entrepreneurial activities
are very less in the region (Hazarika and Singaiah, 2010).
Deolankar (1984) conducted a study on 264 small-scale units to understand entrepreneurship
development in the developed, developing and backward states of India. In spite of the abundant natural
resources, industrial development was slow mainly due to the untapped entrepreneurial talent rather than
due to lack of basic faculties and financial support. The study suggested timely action of the government
to accelerate the process of entrepreneurship development in India.
Giriappa (1996) analyzed the employment as well as income potential from fish as well as cashew
and apple processing. He also mentioned that India is among the five major producers of at least a dozen
agricultural commodities in the world. These include sugar, tea, tobacco, spices, fruits and vegetables,
cotton, jute, milk and milk products, rice and wheat. Yet its contribution to the international trade in
farm products is less than 0.5%. Even in domestic market, agro-processing is not a strong economic
activity. It is estimated that 5% increase in the processing of agricultural commodities can help to generate
65 million jobs for the rural people. Apart from this, branded products can bring more value to the
economy.
The study by Kanitkar (1994) was aimed at understanding the emergence of successful
entrepreneurs and owners of microenterprises in rural India. Based on the case studies of 86 village-based
entrepreneurs drawn from different regions of India, the study examined the socioeconomic profile of the
entrepreneurs, their motivation for shifting from an agriculture-based occupation to a non-farm activity,
their approach in raising resources for their enterprises, and the factors that facilitated entry of the village-
based entrepreneurs into a business activity.
Ramalingam and Gayatri (2006), in the paper, suggested the use of innovation as a strategic
tool for development of rural entrepreneurship. Since most of the Indian population raised in rural

ISBN: 978-93-5300-292-3 Technical Session - IV

344 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh

areas, entrepreneurship awareness has to be created among them. The multidimensional aspects of rural
entrepreneurship were studied with the help of a small sample size. The findings suggest that a small
innovation in the rural area would definitely help most of the population to catch up, which would lead
to improvement in the quality of life of many people in the country.
Anderson (1995), in his thesis, attempted to understand what it is that rural entrepreneurs
do within the rural context. The central argument of the thesis was that in order to understand the
entrepreneur, we must place his entrepreneurial action in its social context, i.e., we must study the process
of entrepreneurship. This study therefore endeavored to investigate the actions of the entrepreneur in one
context, rurality. Consequently, this study was a detailed examination of the rural environment and the
interrelationships of this environment and entrepreneurs. Its purpose was to try and establish the nature
of the relationships between rurality and to specify the conditions of the entrepreneurial process.
Ramakrishna (2008), in his paper, encompassed the present scenario of khadi and village industries
in the eastern states, particularly Arunachal Pradesh, in relation to growth, development, problems and
solutions. The author opined that top priority should be given to small-scale industries like khadi and
village industries which need light machine tools and other equipments in order to produce qualitative
products because today, a state’s progress is measured by the quality of goods it produces.
Srivastava and Syngkon (2008) conducted an in-depth analysis of the development of Small-
Scale Industrial (SSI) sector in the rural areas of the states of eastern region of India. The study also
focused specifically on the role and profile of entrepreneurs. The findings reveal that the manufacturing,
assembling and processing activity is the dominant group among the various SSI activities in the eastern
states in both rural and urban areas. It is observed that in most of the eastern states, concentration and
growth of SSI activities is higher in rural areas than in urban areas. The study also brings to light the rising
number of women and tribal entrepreneurs in the region.
Khanka (2009) conducted a survey of 1,248 first-generation entrepreneurs in Andhra Pradesh
to understand their entrepreneurial motivation. The study clearly showed that the entrepreneurs were
primarily motivated by the need for economic achievement, personal growth, autonomy and recognition.
The desire to contribute to the community was not found to be an important reason to become an
entrepreneur. The study did not reveal any significant difference in the motivations of men and women
entrepreneurs.
Bana and Mali (2011), in their study, found that the micro, small and medium enterprises in
Andhra Pradesh had registered an average growth of 20.63% per annum from 1987-’88 to 2006-’07. This
was accompanied by an average annual growth of 45.3% in investment and 89.5% in output. However,
there was an element of upward bias in estimates of growth in investment and output as price rise over
the years had significantly inflated their values. The whole study was based on secondary data. It can be
concluded from the study that entrepreneurial performance indicated by the output is largely affected by
the quantum of investment rather than the level of employment.
The review of literature showed that many studies were conducted on rural entrepreneurship, but
no study on rural micro-entrepreneurship has been conducted till now on Andhra Pradesh in general
and Guntur district in particular. There is a need for many more micro studies because of variations
in geographic, social cultural, political and economic conditions from state to state and from region
to region within a state. Further, there is a need to throw light on the factors that motivate the rural
micro-entrepreneurs to establish their units, socioeconomic profile of such micro-entrepreneurs and the

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 345

problems faced by the micro-entrepreneurs in operating their units. This study attempts to sketch the role
of microenterprises in transforming the lives of the rural folks in the Guntur district of Andhra Pradesh.
The study was restricted to Guntur district and 60 micro-entrepreneurs from two blocks of the
district. The focus was on the role played by micro enterprises in promoting rural entrepreneurship,
the socioeconomic background and the problems faced by the micro-entrepreneurs. The study covers a
period of two years, 2014-15 and 2015-16.
Objectives of the Study
The specific objectives of the study arc:
1. To study the socioeconomic background of the rural micro-entrepreneurs.
2. To identify the operational problems encountered by the rural micro-entrepreneurs.
3. To offer suggestions for fostering rural entrepreneurship.
Methodology
Keeping the above objectives in mind, a sample of 60 rural micro-enterprises of the district was
selected for the study. The design of the study was exploratory and the data were collected from primary
and secondary sources. Primary data were collected through personal interview schedules, while secondary
data were collected from GDIC Andhra Pradesh, KVIB, banks, research paper, government bulletins,
Internet, etc.
To find out the problems faced by rural entrepreneurs’ simple percentage analysis was administered.
Percentage and rank analysis was also used to find out the demographic profile of rural entrepreneurs and
to draw inferences.
Brief Profile of the Study Area
The Guntur district is an administrative district of Andhra Pradesh. The district headquarter is
located at Amaravati. As of 2016, it is the third most populous district (out of 13) of Andhra Pradesh.
According to the 2010 census, Guntur district has a population of 6,19,25,975. The district has
a population density of 365 inhabitants per square kilometer. Its population growth rate over the decade
2006-2016 was 15.67%. There are 7,876 villages in the district with a rural population of 4,10,54,835.
Agriculture is the prime occupation of the people of the district; traditional dependence on agriculture is
one of the reasons for lack of entrepreneurship among the educated youth. They are mostly concentrated
in white-collared jobs. The absence of major industries in the district is also partly responsible for lack of
entrepreneurial activities (www.Guntur.nic.in).
Rural Entrepreneurship and Micro enterprises in Andhra Pradesh
The micro enterprise sector is one of the fastest growing industrial sectors all over the world. It
has shown an outstanding performance over the past five decades as a highly vibrant and dynamic sector
of the Indian economy. The micro enterprises are important not only as a means of creating employment
for the people and raising their income as well as the real income of the nation, but also because they
contribute directly to the development of agriculture and indirectly to the development of the urban
industries. Rural industries help in value addition to agricultural produce and enable farmers to augment
their income.
The State of Andhra Pradesh is endowed with a vast deposit of mineral resources like petroleum,
natural gases, coal, limestone, forest and water resources, but it has been considered as an ‘A’ category
industrially backward state of India. The existing industrial profile of Andhra Pradesh shows a lopsided

ISBN: 978-93-5300-292-3 Technical Session - IV

346 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh

picture (Neeitco Survey, 2001). Table 1 exhibits the number of registered Micro and small Enterprises
(MSEs) in the state. Besides, it also indicates the year-wise growth of the permanently registered MSEs
in the state. It is clear from Table 1 that the number of MSEs registered every year keeps on fluctuating.
However, with the announcement of the East Industrial Policy (EIP) in 2016, the number of new units
registered in the consecutive years stabilized due to the expansion of a number of schemes and concessions
that benefited this sector.
Table 1: Growth of Micro and Small Enterprises in Andhra Pradesh
Number of MSEs Annual growth in Total Number of MSMEs as on March
Year Registered Registration 31
2007-‘08 2,193 -9.79 14,258
2008-‘09 2,224 1.41 36,482
2009-‘10 1,821 -18.12 38,303
2010-‘11 2,116 16.12 40,419
2011-‘12 2,528 19.47 42,947
2012-‘13 2,246 -11.16 45,193
2013-‘14 2,364 5.30 47,558
2014-‘15 2,067 -2.60 49,625
2015-‘16 2,082 0.73 51,707
2016-‘17 2,172 4.32 53,879
Source: Directories of Industries & Commerce, Government of Andhra Pradesh
Major Findings
Socio-economic Status of the Sample Entrepreneurs
Age of the Respondents
The Respondents were classified on the basis of their age at the time of survey to know which
age group participated more vigorously in entrepreneurial activities. The data collected in this regard
is presented in Table 2. A majority (51.67%) of the total respondents were in the age group of 31-40
years, followed by 25% in the age group of 21-30 years and 16.66% in the age group of 41-50 years.
Only 6.67% of respondents were above 50 years of age. It may be interpreted that microenterprise has
facilitated rural entrepreneurs in different age groups.
Table 2: Age-Wise Classification of the Entrepreneurs
Age ( Years) Number Percentage
20-30 15 25.00
31-40 31 51.67
41-50 10 16.66
Above 50 4 6.67
Total 60 100.00
Source: Filed Survey.
Caste Origins of Respondents
Caste-wise classification of sample entrepreneurs is given in Table 3. The table reveals that 50% of
entrepreneurs belonged to the general category; followed by 28.33% belonging to other backward castes,

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 347

15% schedule tribes, and the remaining 1.67% belonged to other castes. Thus, it is observed that the
weaker section and depressed class people are less involved in business.
Table 3: Caste-Wise Classification of the Entrepreneurs
Category Number Percentage
General 15 50.00
SC 9 15.0
ST 17 5.00
OBC 12 28.33
Others 1 1.67
Total 60 100.00
Source: Filed Survey.
Educational Qualification of the Respondents
Education and training are the important factors influencing the development of rural
entrepreneurs. The education-wise classification of sample entrepreneurs is presented in Table 4. From
the table, it is clear that 41.67% of the entrepreneurs have metric-level education, while 28.33% have
below high school level education and 10% are graduates and 3.33% are postgraduates, while 6.67% are
illiterates. Thus, it can be interpreted that there are few entrepreneurs with postgraduate qualification.
Table 4: Education Level of the Entrepreneurs
Category Number Percentage
Uneducated 4 6.67
Below High School 17 28.33
Metric 25 41.67
Higher Secondary 6 10.00
Graduate 6 10.00
Postgraduate 2 3.33
Total 60 100.00
Source: Filed Survey.
Gender of the Respondents
The gender of the respondents indicates the proportion of male and female entrepreneurs
participating in entrepreneurial activities in the district. The data are shown in Table 5. 66.67% of the
respondents were males, while 33.33% of the respondents were female. It should be added that more
encouragement needs to be given to women to take up entrepreneurial ventures.
Table 5: Gender of the Respondents
Gender Number Percentage
Male 40 66.67
Female 20 33.33
Total 60 100.00
Source: Filed Survey.

ISBN: 978-93-5300-292-3 Technical Session - IV

348 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh

Past Occupation of the Sample Entrepreneurs

Previous occupation in the related field was found to be one of the most important motivating
factors for entrepreneurs. Hence, information about the occupation pursued by the respondents before
entering into the industry was collected and is presented in Table 6. Out of the 60 respondents, 50%
were engaged in business before becoming an entrepreneur, 8.38% were in service, while 41.67% had
no occupation earlier. It may be inferred that previous occupation is not a significant factor among the
present sample.
Table 6: Past Occupation of the Entrepreneurs
Category Number Percentage
No Occupation 25 41.67
Business 30 50.00
Agriculture Nil Nil
Service 5 8.33
Total 60 100.00
Source: Filed Survey.
Marital Status of the Respondents
The marital status of the respondents was ascertained and is presented in Table 7. A large majority
of the respondents (71.67%) were married, while the remaining 28.33% were unmarried. It is clear that
a majority of the respondents were carrying out the entrepreneurial activity as a means of their livelihood.
Table 7: Marital Status of the Respondents

Marital Status Number Percentage

Married 43 71.67
Unmarried 17 28.33
Total 60 100.00
Source: Filed Survey.
Community of the Respondents
It has often been suggested that certain communities encourage the growth of entrepreneurial
ability. The protestant ethic of the west was considered to have significantly contributed to the emergence
of a new class of industrialist. In Japan, it was the ‘samurai’ who turned to industry and kept their social
structure intact by adopting vigorous young businessmen or taking them into family through marriage.
Hence, an attempt has been made in this study to ascertain the community background of the respondents.
This data is presented in Table 8. It was found that 36.67% of the respondents were form Andhra Pradesh
background. 31.67% from Bengali community, 13.33% Bihar’s, 10% from Marwari community, and
8.33% represented other communities.
Table 8: Community of the Respondents
Community Number Percentage
Andhra Pradesh 22 36.67
Telangana 19 31.67
Chennai 6 10.00
Bangalore 8 13.33

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 349

Others 5 8.33
Total 60 100.00
Source: Filed Survey.
Occupation of the Respondents’ Fathers
Parental occupation is also one of the factors that have bearing on the emergence of entrepreneurship.
Table 9 shows the parental occupation of the respondents’ fathers. The fathers of a majority of respondents
(66.67%) were businessmen. While the fathers of 18.33% of the respondents were agriculturists, 15%
were government employees. It is clear that a majority of the present respondents come from business
background.
Table 9: Occupation of the Entrepreneurs
Occupation Number Percentage
Agriculture 11 18.33
Business 40 66.67
Government Employee 9 15.00
Total 60 100.00
Source: Filed Survey.
Type of the Family
One of the important factors influencing the success of an entrepreneur is the support that he gets
from his family, which in turn depends upon the structure and economic status of the family. Membership
of a resourceful family belonging to a resourceful company facilities entrepreneurship. The data regarding
the type of family is shown in Table 10. It was found that a majority of the respondents, i.e., 73.33%,
belonged to joint families, while the remaining 26.667% belonged to nuclear families. I can thus be said
that joint family system is still an important determinant of entrepreneurship.
Table 10: Family Structure of the Respondent
Category Number Percentage
Joint 44 73.33
Nuclear 16 26.67
Total 60 100.00
Source: Filed Survey.
Type of Activity of the Respondents
The MSMED Act, 2006 distinguishes the enterprise as manufacturing their activities as
manufacturing or servicing or services on the basis of its investment criteria. The data collected from the
respondents classifying are shown in Table 11. A majority of the respondents (63.33%) are from service
enterprise, while the remaining (36.67%) are from manufacturing enterprise. It may be interpreted that
entrepreneurs like to invest more in service enterprises in comparison to manufacturing enterprises.
Table 11: Type of Activity of the Respondent
Category Number Percentage
Manufacturing 22 36.67
Servicing 38 63.33
Total 60 100.00

ISBN: 978-93-5300-292-3 Technical Session - IV

350 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh

Source: Filed Survey.

Nature of Business Organization
Table 12 shows the different forms of business organization chosen by the respondents. Sole
proprietorship was the preferred form of business organization in the district under reference, 91.67% of
the respondents opted for it, followed by partnership that constituted 8.33%. The micro-entrepreneurs
preferred proprietorship form of business organization.
Table 12: Nature of Business Organization
Organization Number Percentage
Sole-Proprietorship 55 91.67
Partnership 5 8.33
Total 60 100.00
Source: Filed Survey.
Influencing Factors
Data have been collected regarding the people/institution that influenced the respondents in
starting the enterprise and the results are presented Table 13. A majority (36.67%) went influenced by
parents, followed by 30% of respondents who were influenced by self; 13/33% were influenced by their
life partners, 11.76% by financial institutions, 6.67% by friends, and 1.67% by others (uncle, brother,
etc).
Table 13: Persons Influenced to Start Business
Category Number Percentage
Parents 22 36.67
Self 18 30.00
Spouse 8 13.33
Financial Institutions 7 11.76
Friends 4 6.67
Others 1 1.67
Total 60 100.00
Source: Filed Survey.
Motivating Factors
The factors that motivated the respondent’s to take up entrepreneurship have been identified and
presented in Table 14. A majority (38.33%) of the respondents took up entrepreneurship to combat
the problem of unemployment; another 13.33% stated that the training received in this regard was
the motivating factor. While 8.33% respondents opted for entrepreneurship to utilize their technical
knowledge, 6.67% did so to remain their own boss. 5% respondents each took up entrepreneurship for
using their spare time, because of government incentives, and because they had no other alternative for
employment. Finally, the family environment promoted 3.33% respondents to take up entrepreneurship.
Table 14: Factors Prompted to Start Business
Category Number Percentage Rank
Use spare time 3 5.00 6
Self-earning and independence 23 18.33 1

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 351

Utilize technical Know-how 5 8.33 4

Government incentives 3 5.00 6
Overcome unemployment 9 15.00 2
Need to be one’s own boss 4 6.67 5
No alternative for income 3 5.00 6
Family environment 2 3.33 7
Training 8 13.33 3
Total 60 100.00
Source: Filed Survey.
Problems faced by the Respondents in Operating Their Business
The different problems faced by the respondents are presented in Table 15. Ranking was done
on the basis of intensity of the problems faced by the entrepreneurs in operating their business. A
majority (66%) of the respondents faced the problem of paying high rent and rates on their property,
electricity, etc. in running their units. 58% stated that high interest rate is a major problem. The bank
demands high interest from small entrepreneurs for financing their business. 57% faced the problem of
shortage of skilled labour, while 56% faced the problem of inadequate information on source of finance.
Entrepreneurs in rural areas are not aware of the different types of finance offered by the banks and
financial institutions due to lack of proper knowledge. 55% faced the problem of tough competition
from the urban entrepreneurs as well as large-scale entrepreneurs. 54% of the respondents faced problem
in procuring adequate amount of finance form different sources. Most of the time, the rural micro-
entrepreneurs do not get the desired amount of loan from the bank to start their enterprises. Moreover,
due to too many formalities of banks they are reluctant to take loan from banks. Marketing of projects
(48%) is another area where the rural micro enterprises find themselves handicapped. As the units are
resource-constrained, they do not have a separate marketing department. 46% of the respondents stated
that they did not possess proper information on different markets for marketing of their products. While
40% of the respondents faced the problem of heavy taxation, 38% stated insufficiency of demand for their
products. Lack of proper managerial talent was yet another problem faced by 28% of the respondents.
Stringent government regulations posed a serious problem to 27% of the respondents. Another important
problem faced by 20% respondents was delay in supply of raw materials to the enterprise. Apart from
the problems mentioned above, there are numerous other problems that are faced by the rural micro-
entrepreneurs in running and managing their units.
Table 15: Problems Faced by the Respondents in Operating Their Business
S. No Category Percentage Rank
1 High rent and rates 66 1
2 High interest 58 2
3 Lack of finance 54 5
4 Inadequate information on source of finance 56 4
5 Insufficient demand for products 38 10
6 Inadequate information markets 46 8
7 Lack of marketing facilities 48 7
8 Tough competition 55 6

ISBN: 978-93-5300-292-3 Technical Session - IV

352 The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh

S. No Category Percentage Rank

9 Shortage of skilled labour 57 3
10 Managerial difficulties 28 11
11 Strict government regulation 27 12
12 Delay in supply of raw materials 20 13
13 Heavy tax burden 40 9
Source: Filed Survey.
Suggestions
ŠŠ On the basis of the above findings, we put forth some suggestions for the growth and development
of rural micro-entrepreneurship in the backward region of the Guntur district of Andhra Pradesh.
ŠŠ The government needs to focus more on setting up of agro-based industries using the resources
based on primary sector (agriculture) in the region and big industries to support ancillary small
and micro units which will, in turn, boost micro units in this backward region under globalization.
ŠŠ Industrial policy of the state should be strengthened to encourage the unemployed persons to seek
entrepreneurial career by providing financial and non-financial assistance.
ŠŠ Government agencies should ensure timely supply of raw material, steady flow of institutional
finance at relatively lower cost and marketing facilities to the units.
ŠŠ Reduction of interest rate and liberal payment policy are essential for encouraging entrepreneurship
in rural areas, which in turn will usher in industrialization.
ŠŠ One of the common problems faced by rural micro-enterprises is lack of marketing information
and marketing of products. In this regard, the government and other agencies have to disseminate
the information thorough database on the internet. This can be undertaken by the market research
firms and other established institutes.
ŠŠ The social community dominant in the field of entrepreneurship in Guntur district was found to
be general (forward caste) (50%), followed by other backward classes (28.33%). The government
agencies at central and state level should encourage Scheduled caste and Scheduled Tribe young
graduates to take up rural entrepreneurship. Moreover, various incentives, schemes and subsidies
available for them should be advertised.
ŠŠ The government should simplify the official formalities by organizing training programs, where
the procedures of motivational training, selection and loan disbursement should be completed
under a single roof.
ŠŠ The subsidy policy of the government needs to be rationalized on the basis of certain criteria like
project viability, entrepreneurs’ experience and capacity, instead of getting subsidy on receiving
credit.
ŠŠ Entrepreneurship development training program should be directed not only to motivate but
also to instill confidence in the trainees. Entrepreneurship development program needs to be
reoriented based on successful entrepreneurs from inside and outside the region for development
of self-confidence.
ŠŠ Location of the industrial units should be so designed that they are closer to the sources of raw
material, market place and other infrastructural facilities.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Role of Micro enterprises in the Promotion of Rural Entrepreneurship in the Guntur District of Andhra Pradesh 353

ŠŠ Introduction of entrepreneurship in school and college education can help foster entrepreneurial
culture right from the beginning. Appropriate technological guidance will make the production
process easier.
ŠŠ Entrepreneurship business development cell needs to be established at village level, and
entrepreneurship guidance and counseling cell must function to motivate entrepreneurs in rural
areas.
ŠŠ Appointment of SSI ombudsman and establishment of one-stop center for all needs of rural
entrepreneurs are necessary.
ŠŠ Promotion of rural enterprises, both in farm and non-farm, needs the intervention of specialized
support services. It could be provided by agencies like Small Business Development Centers
(SBDC), designed and trained to work with rural people.
ŠŠ Rural saving potential has to be harnessed by using suitable strategies. Microfinance organization,
both governmental and cooperative ones, should be set up for providing concessional finance to
rural entrepreneurs.
Conclusion
The development of rural microenterprises on a planned basis can play an effective role in increasing
production, productivity and economics wealth, and can give a broader and stronger base to the rural
economy in general. A policy for promoting indigenous entrepreneurship has to be implemented through
evolution of newer organizational forms with simple, low capital using technologies augment such needs.
Also, combined efforts of the government, family members and total involvement of the people at the
grass roots level will go a long way in bringing about planned development of rural micro enterprises.
References
yy Andersan Alistair R (1995), the Arcadian Encores-in: An Enquiry into the Nature and conditions of Rural Small Business”, available at
www.emeraldinsight.com/Insight/View Content Servlet? Filename .....html. Accessed on April 2, 2010.
yy Barua A Nissar and Mail Archana (2011), “Entrepreneurship and Its Role in the Growth of Micro and Small Enterprises: A Case Study
of Andhra Pradesh”, Small Enterprise Development Management & Extension Journal, Vol. 38, No. 2, pp.69-83.
yy Deolankar Vivek (1984), “Role of Entrepreneurship in Industrialization”. Southern Economics,. Vol. 22, February 19, p. 14.
yy Economics Survey, Andhra Pradesh, 2011-12, available at http:// ecocstatAndhra Pradeshnic.in/ads_economic%20survey.pdf. Accessed
on May 25, 2012.
yy Girimpa (1996), Prospects of agro-Processing Industry, pp. 1-43. Daya Publishing Hour, Delhi.
yy Hazarika Balin and Singaiah G (2007), “Developing Entrepreneurial Traits and Competencies in East: A Cross Cultural Perspective”,
Small Enterprise Development Management & Extension Journal, Vol. 34, Not 4, pp. 1-16.
yy Kanulakoman K (2006), “Rural Industrialization and Poverty Alleviation”, Economic and Political Weekly, Vol. 54, No 7, pp. 3-8.
yy Kanitkar Ajit (1994), “Entrepreneurs and Micro-Enterprises in Rural India”, Economic and political Weekly, Vol. 29, No. 9, pp. 25-
30.
yy Khanka S (2009), “Motivational Orientation of Andhra Pradesh Entrepreneurs in the SME Sector”, Journal of Entrepreneurship, Vol.
18, No. 2, pp. 209-218.
yy MSMED Act 2006, Ministry of Small Scale Industries, Notification, July 18, 2006, Government of India.
yy Neeitco Survey (2001), Industrial Potential Survey of Guntur District.
yy Ramakrishna Mandal (2008), Khadi and Village Industries East India with special Reference to Arunachal Pradesh: Retrospect and
Prospect, IUP, Hyderabad.
yy Ramalingam C and Gayatri R (2006), “A Framework for Development of Rural Entrepreneurship in Tamil Nadu Using Innovation as
Strategic Tool”, available at http://www.indianmba.com/faculty_Column?FC995/fc995.html. Accessed on March, 13, 2010.
yy Santana Krishnan R and Jegadeesan G (2008), Entrepreneurship and Rural Development in India, IUP, Hyderbad.
yy Sinha Harendra (2010), “Block Administration without Panchayathiraj Institutions: An Assessment into the Guntur District of Andhra
Pradesh”, Kurukshetra, Vol.58, No.12, pp. 44-47.
yy “Socia-Economic Profile of Guntur District”, available at www.Guntur.nic.in (Official Website of Guntur District).

ISBN: 978-93-5300-292-3 Technical Session - IV

 The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in
Prakasam District of Andhra Pradesh
Atyala Salem Raju
Research scholar, Department of Economics, Acharya Nagarjuna University,
Guntur, Andhra Pradesh Email:[email protected].
“Empowering women is a prerequisite for creating a good nation, when are a empowered, society with
stability is assured empowerment of women is essential as their value systems lead to the development of a good
systems leads to the development of a good family, good society and ultimately good nation.”
A.P.J. Abdul Kalam
Abstract: The Development of the tribal women has been a major concern past four decades have witness a study increase
in the awareness regarding need to development of women through increasing socio-economic equity and broader accessibility to
fundamental human rights along with improvements in nutritional, health and education. Women, in emerging complex social
scenarios, have a pivotal role to play. Traditionally they have their own socio-cultural life, which is male dominated patriarchal
and are at varying stages of development. The geographical research on participation of women in agriculture, especially
in this region still very limited. In rural economy, women have been playing an important role in the economic substance
of the families. It has also recognized that the tribal women have significant contribution to the economic development of
the family and the society. In the current article, an attempt has made to evaluate the educational attainment, health
wage criteria occupational structure and land holdings of the sample respondents. The present study based on primary data
and secondary data. The secondary data is based on published articles, journals and reports on tribal women development.
Key Words: Socio-economic equity, educational attainment, occupational structure.

Introduction:
Study of the tribal women issues assumed great importance in a national context the tribal women
development is the central issues in the process of development of Andhra Pradesh and India also. India
is an agricultural country most of the people of it rely on agriculture. Most of these are of below poverty
line who don’t have any skills and are illiterates most of the people in villages are depending on farming
due to they don’t have education, technical skills, growing population and unemployment etc…. are the
reasons for farmers to rely on agricultural works.
Tribal people have own social ceremonies, festivals, dress, decoration, music and dance vary from
region to region and from tribes to tribes. The women’s respected as the main a leap of the tribal society
and plays multifarious roles as a kind and compassionate mother, loyal wife, affectionate sister and is an
economic asset. The women attend her daily life in child feeding, housekeeping, cooking; washing cloth,
fetching water etc are attended exclusively by the women folk. The Tribal economy around the gathering
of forest products like herbs, hunting, podu, and settled cultivation, The gathering of edible roots, forest
fruits and other miner products. The tribal women participate in the work dig the Earth, fill the basket
with tuber. Tribal women are paid less labour to men, because of social tradition and inefficiency of
women.
In 21st century the equality, unfortunately has not yet been achieved in developing countries like
India. This is one of the main reasons why such countries behind in socio-economic, socio-cultural fields
and failed to achieve development of the women. In this connection all the countries much take care about
the equality of male and female must be achieved. Women, who are one of the basic constituent of the
society should have given the same status of women in health education, business, home life, production,
consumption, literacy rate, participating in the administration and the general equality should be achieved.
After bifurcation of Andhra Pradesh state, now it has 13 districts only, and these districts, according
to 2011 censes have 4,93, 78, 776 of population in Andhra Pradesh state. In 1991 censes, the tribal female
The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh 355

population and it constituted just 3.09 percent. Whereas it was 24, 75, 809of tribal population in 2001
censes and it reckons only 3.24 percent of the total population. Most of the tribal population located in
the districts of Srikakulam, Vijayanagaram, Visakhapatnam, East Godavari, West Godavari. As per 2001
census, the tribal female population is 24, 75, 809 of the total population and it constituted just 3.24
Percent, whereas, it was 21, 60,873 of tribal female population in 2011 census and it reckons only 4.37
Percent of the total population. Scheduled Tribes have own customs and traditions and those are living
under having variety conditions in plains, thick jungles, hill ranges and river valleys. It is so long to village
environment and no relation with the society.
Need for the Study
Caste based stratification of our society unfavourable affected and equal opportunities to the
disadvantage of tribal groups and it is also need to examine the defect of caste attached to the present
Scheduled Tribes Women in particular. They are faced the problem of discrimination by their family
members, gender and forward castes, unemployment under employment, seasonal unemployment, poverty,
lack of nutritional food, educational and health facilities and minimum needs facilities. Constitution of
India provides so many provisions to scheduled tribes to protect and promote their Social, Economic,
Cultural and Educational status. Though, Tribal Women is found to lower than Scheduled Caste and
general women the same. There is need to study to improve their welfare and empowerment.
Review of Literature
Bhatti (1975), in his study, observed that the tribal agriculture was not market-oriented and the
advantages of bulk selling were not available to them. A major proportion of ‘surplus production’ was sold
in the village itself to the traders and hawkers and they received a price for their produce which was much
less than the prevailing market rates.
Sikligar (1995), says believe that whatever sources of drinking water are flowing/available in their
areas are healthy and pure. But the situation is quite different from their traditional views and they are not
aware of the number of waterborne diseases such as malaria, jaundice, diarrhoea, eczema etc., which have
really spread in their areas due to impure water.
Durgadas (2013) Self-confidence of the women causes the work hard and earn good lively hood.
Then women will be acknowledged with their rights and responsibilities automatically the empowerment
of women will be shown the Indirakranthipatham play the important role in the women empowerment
and elimination of rural poverty.
Objectives of The Study
ŠŠ To study the socioeconomic status of Tribal women in the study area.
ŠŠ To look into the tribal women literacy and educational attainment, and land holdings of the
agricultural rural tribal women in Andhra Pradesh.
ŠŠ To study the working hours, wages and expenditure of the agricultural rural tribal women in
Andhra Pradesh.
ŠŠ To give suitable suggestion for proper implementation of policy measures.
Methodology
This study mainly based on primary and secondary data. The primary data was conducted on
august 2017 at akuthota sangam village in Ulavapadu mandal singarayakonda region, prakasam District.
In this village, survey has taken with 84 samples who are randomly selected based on occupational

ISBN: 978-93-5300-292-3 Technical Session - IV

356 The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh

distribution, religion wise, wage criteria wise, health details and Age-wise classification etc. The data was
prepared to check the reality at the grass root level and an interview schedule was admired to collect
the data from the samples. Target the group discussions and interviews with the key informants were
conducted to supplement and compliment the information from survey. The secondary data collected
through various published journals, Economic surveys and official government records of central, state
and panchayat level.
Results and Discussions
Table -1 Age wise Distribution:
S. No Age Group No. of Workers Percentage
1. 15-30 years 44 52.38
2. 31-45 years 26 30.95
3. 46-60 years 14 16.66
4. Above 60 years 00 00
5 Total 84 100
Source: primary data
Above the table gives clear picture about the age wise distribution of the sample respondents in
the study area. The working class of tribal women most of them are of 15-30 years age group are 52.38
percent and 30-45 years age group are 30.95 percent and 45-60 years age group are 16.66 percent and 60
years above years age group are not into any agricultural works
Table 2 Literacy Rates Of Respondents

Level Numbers Percentage

Illiterates 35 41.66
primary level 22 26.19
Upper Primary 13 15.47
Secondary level 12 14.28
10+2 level 02 2.38
Higher education 00 00
Total 84 100
Source: Primary data.
Above the table gives clear picture about the literacy rate of the respondents. 41.66 out of 84 of
them are illiterates. There are 30 members in primary level their percentage is 26.19 percent, there are 13
members in upper primary level whose percentage is 15.47 percent 12 members of the respondents are in
secondary level that is 14.28 percent and there are 2.38 percent of the respondents are in 10+2 level. No
one is in higher education among them. As per this, there are a lot people who are illiterates and primary
level workers
Table-3 Occupation Structure
S. No Occupation No Percentage
1 Cultivators 34 40.47

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh 357

2 Agricultural labours 26 30.95

3 Animal Husbandry 08 9.52
4 Fishing 60 19.04
5 Poultry & Manufacturing etc. 00 00
6 Total 84 100
Source: Primary data.
Above the table gives clear picture about the occupational distribution of the respondents. Coming
to occupational structure 40.47% of population depends on agriculture and 30.95 percent are agricultural
labors. 95.52 percent are busy in animal husbandry like buffalo sheep goat feeding and 19.04 percent are
into fishing .the main reason for this is the nearby the coastal area. There are women into manufacturing
and poultry .therefore 71.12 percent tribal women are into agriculture Works and 28.56 percent are in
agricultural allied activities.

Table-4 .Religion Wise Distribution

S. No Religion No Percentage
1 Hindu 48 57.14
2 Christianity 36 42.85
3 Muslim 00 00
4 Others 00 00
5 Total 84 100
Source: Primary data.
Above the table gives clear picture about the religion wise distribution of the sample respondents
in the study area. Most of the tribal women are of Hindu religion .in those 57.14 percent are of follower
of Hindu religion and remaining 42.85 percent are of Christians. The remaining religions like Muslim,
Buddha, Jain, parsi etc., are not included in the study
Table-5 Family Number –Wise Distibution
S. No Members of the family No. of Members Percentage
1. 1-2 10 11.90
2. 3-5 18 21.42
3. 6-7 44 52.38
4. Above 7 12 14.28
5. Total 84 100
Source: Primary data.
Table 5 gives the clear picture about the family member wise distribution in the study area. 10
families of the respondents 11.90 percent of their family numbers below 2. Between 3-5 number families
18 it has 21.42 percent, between 6-7 number families 44 it has 52.38 percent it is very high because they
have no literary awareness of the small family. Above 7 number families is 12 it has 14.28 percent it shows
mainly the villages have joint family system and large family members. And they are willing to have more
and more children. Above 5 family members only to respondents it has 10.63% it is very low
Table 6 Wage Criteria Of Respondents

ISBN: 978-93-5300-292-3 Technical Session - IV

358 The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh

Working days
S.No Occupation Wage Working Hours per a Day Annual Income
per a Year
1 Agriculture 200 9 Hours 250 15000
2 Fishing 240 10 Hours 200 48000
3 Animal husbandry 150 10 Hours 365 54750
Manufacturing of
4 agricultural products 00 00 Hours 00 00

Above the table shows that the wage criteria of the sample respondents in the study area. The daily
wage for agricultural labor is Rs 200. They work 250 days in a year and their annual income is 50,000.
Likewise some works like fishing they work 200 days in a year for the wage 240 per day. Which leads
to 48000 annual income. Some other workers 10 hours per day like animal husbandry. The wages and
working time of farmers are less than agricultural allied activities.
Table 7 Expenditure of The Respondence
S.No Item Percentage
1 On food 60
2 On cloth 10
3 On Health 20
4 On Education 05
5 On tours and entertainment 05
6 Total 100
Source: Primary data.
Above the table shows that the expenditure of the sample respondents in the study area. The
expenditure of these tribal women income is like this for food 60 % on health 20% . cloths 10% education
5% tours and entertainment 5% so they are spending more on food next is on health 20% because most
of the government hospitals don’t have proper facilities so they take treatment in private hospitals which
leads to high expenditure.
Table 8 Causes For Become A Agricultural Workers

S. No Cause No Percentage
1 Lack of Educational & Technical skills 58 69.04
2 Sharing of family responsibilities 16 19.04
3 To increase their income 10 11.90
4 To utilising leisure time 00 00
5 Total 84 100
Source: Primary data.
Table 8 gives the clear picture about the causes for become agricultural workers in the study area.
The main reason which leads the tribal women in to working in to agricultural work are illiteracy lack of
technological skills. 69.04 percent of the population are working without any technical skills and literacy.
19.04 percent of them are busy in family responsibilities, which leads them to work as agricultural labours.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh 359

11.0 percent of the population only working to marriage their annual income in forming majority of these
are lack of technical skills.
Table- 9 Health Details Of The Respondents

S. No Problem No Percentage
1 Eye, Ear, Nose, Throat and Headache 32 38.09
2 Mensuration, Pregnancy and post pregnancy problems 20 23.80
3 Heart, Liver, Kidney etc. 00 00
4 HIV and other diseases 00 00
5 No diseases 32 38.09
6 Total 84 100
Source: Primary data.
Above the table shows that the health details of the sample respondents in the study area. 38
percent of tribal women are of facing problems with their ear, eye, nose throat and headache etc. in those
mensuration, pregnancy and post pregnancy problems facing women are 23.80 percent. There are no such
women who has heart, liver, kidney and HIV diseases. There are38.09 percent of women don’t have any
diseases. The reason for this is they take care of their health and systematic way of leading life makes them
healthy.
Table-10 Land Holdings of The Respondents

S. No CATEGORY NO PERCENTAGE
1 No Land 31 36.90
2 Marginal Farmers(Below 1 hector) 50 59.52
3 Small Farmers(1-2 hector) 02 2.28
4 Semi-Medium Farmers(2-4 hector) 01 1.19
5 Medium Farmers(4-10 hector) -- --
6 Large Farmers(above 10 hector) -- --
7 Total 84 100
Source: Primary data.
Table 10 shows that the land holdings of the sample respondents in the study area. In this study
are most of the tribal women are marginal formers among these 2.38 percent are small formers and 1.19
percent are semi-medium formers among these 36.90 percent are land less and medium formers, large
formers. According to the despondence most of them are first on to agricultural labour and them the saved
the amount and spent it in buying the lands 36.90 percent people don’t have land where 59.52 percent
people are marginal formers. The inequality of their income caused due to some of them small formers a
few are semi-medium formers

ISBN: 978-93-5300-292-3 Technical Session - IV

360 The Socio-Economic Conditions of Rural Tribal Agricultural Women Workers in Prakasam District of Andhra Pradesh

Findings and suggestions

Due to 41.66 percent of illiteracy in these tribal women made them on nothing government
policies and that leads them to work for a low wage so they have to be educated through government
education. Due to the low wage in agricultural works they still remain poor. So the government has to
render a helping hand to develop their vocational and technical skills as they are spending 20 percent
on health which portrays lack of communication regarding government health policies and government
hospitals which don’t provide permanent facilities make them to now private hospitals. As their dwelling
are in remote areas so that they are not able to communication with urban people and they couldn’t aware
of government policies and way living.
Conclusion
Generally we compare scheduled tribe women population with other category tribal women are
backward. Because of government policies to enhance the skills of tribal women many of them are going
forward, and striving to develop economic and social relation, and taking care of education of their
children. If it least a few of the tribal women dwelling urban areas they could have lent the modern
way of living and could have taught to their siblings and friends who reside in rural areas. Present days
the children of the tribal women are in to educational sector and learnt the modern technology and
implementing in their villages.
References:
yy Bhatia,R (2002):”Measuring gender Disparity using time use statistics”, Economic and political weekly, August 17-23, Vol XXXV
No.33, pp.3464-469.
yy Krishnaraj M (1992)” “Women Craft Workers as Security for Family Subsistence”, Economic and Political Weekly, Vol XXXV, No.17,
April PWS7-17.
yy Pradeep kumar panda (2017) inclusion in economic empowerment of rural tribal women in lack value chain market. Journal of social
and economic development, 19(1):25-41 school of economic Hyderabad, India.
yy M Munyyandi, Neeru Singh (2012) Empowerment of for health “An Indian perspective, tribal Health Bulletin. Regional Medical
Research Centre for Tribal ( ICMR) Vol 18 (1&2) Jabalpur, Madhya Pradesh
yy Veena Kumari, “Socio-Economic Status of Women in India”, Southern Economist, Vol.37, No.7, August 1, 1998, pp.3-6.
yy Ambannavar, J.P., “Change in Economic Activity of Males and Famales in India, 1911-1961”, Demography India, 4 (2), December
(1975). Best, John W.,(1983), Research in Education (4 Ed.). New Delhi: Prentice Hall of India Pvt. Ltd.
yy Chattopadhyaya, K., (1978). Tribalism in India, New Delhi: Vikas Publishing house Pvt. Ltd,
yy Chowdhry, D.P., (1992), Women Welfare and Development - A Source Book, New Delhi: Inter India Publication.
yy Das, S.T., (1986), Tribal Life of North - Eastern India - Habit, Economy, Customs, Traditions, Delhi: Gian Publishing House.
yy Datt, Ruddar and Sundaram K.P.M., (2012), Indian Economy, New Delhi: S. Chanel & Company.
yy Deogaonkar, S.G., (1980), Problems of Development of Tribal Areas, Delhi: Leeladevi Publications. Dutta, Parul, (1976),

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

 Women in Arunachal and their Status in the Socio - Cultural Life, Shillong:
Government of Arunachal Pradesh.
K. Prabhu Rani
Assistant Professor, Department of Management Studies, Marry Stell College, Vijayawada

Abstract: This essay is not a comprehensive study of all issues facing agriculture today. It will be noted that agriculture is
a rapidly changing industry with many high value resources at its disposal. Farmers tend to be referenced as a uniform group
by the majority of Americans. Upon closer inspection, farmers are discovered to be anything but uniform as evidenced by the
abundance of descriptive terms and metrics encountered in the literature. Rather than argue the many arbitrary definitions of
“farmer”, this paper strives to accurately depict today’s agricultural entrepreneur and contemplate policies that best support him
or her - regardless of farm size or business strategy. With the implicit understanding that not every farmer or aspiring farmer
is entrepreneurial.

Introduction
One definition of Entrepreneurship is that it’s the art of generating innovative ideas that, if properly
funded, generates profit. The profit could be from the sales of various products or services that were
created by the idea. Such innovative ideas usually generate new companies. These ideas could also be
taken to existing companies through which the idea is developed and the entrepreneur gets a percentage
of the money or a job. What most people perceive entrepreneurship as is the start of a new business.
They wouldn’t be wrong for thinking so as most entrepreneurial ventures start off as startup companies.
However, the word has been broadened in recent years. It now incorporates a variety of different areas.
Entrepreneurship can Transform the Face of Agri-Business in India
With 60 per cent of India’s population still engaged in agriculture and allied activities, economists
and policy makers often talk about the need for creating new work avenues and industries to shift a major
segment of this population out of agriculture.
However, this is not the only solution to the economic woes of India’s rural poor. Apart from
generating new sources of jobs and income, it is equally important to bring about transformational change
in the agribusiness sector to augment incomes, create more sub-industries within the agricultural sector
and help the rural poor add to their agricultural resources.
Most agricultural outliers are forced to migrate to nearby towns and cities in search of work, often
in the unorganized unskilled sector. This highlights the need for developing more innovative mechanisms
in the rural economy that boost employment opportunities in the agri sector.
The success of cooperatives in India, particularly Gujarat’s Dairy co-operative and Maharashtra’s
sugar co-operative are examples of what innovation and entrepreneurial thinking can do for the rural
sector.
Enterprising young entrepreneurs who have flooded urban India with startups in recent years have
unfortunately neglected the rural economy. Or to put it this way, entrepreneurs who can transform the
face of the rural economy have failed to emerge in rural India.
Sectors where entrepreneurship can help the agribusiness:
1. Food processing
Agriculture-based industrial products account for half of all exports from developing countries.
However, most of them involve exports of raw material as against developed countries whose exports
mostly comprise processed goods. By continuing to operate at a low level of value chain, we are losing
362 Women in Arunachal and their Status in the Socio - Cultural Life, Shillong: Government of Arunachal Pradesh.

income and production. An entire food processing industry can be developed in rural areas, augmenting
income and employment.
2. Floriculture
In a number of cases flower farming can be done on small tracts of land. In fact, bulks of flowers are
cultivated on ‘micro farms’. Farmers can utilize a part of their land to cultivate seasonal flowers alongside
regular conventional crops.
But, this needs markets in the vicinity or processing and preservation units. Entrepreneurs having
knowledge of flower cultivation and marketing can set up parallel industries in fertile rural lands.
3. Pisciculture
Fish farming is practiced by a lot of farmers to augment their incomes. However they do soon
amateurish and small scale basis. A conscious business effort to develop small pond fish farms in rural areas
can enable Pisciculture to become a valuable sector in the rural economy. Fish cultivation on market scale
needs some knowledge and boosting entrepreneurship in the sector can make a difference, as done in the
western countries.
4. Farm technology
Dependence on outdated and inefficient technologies lead to poor productivity and low income.
While large scale farmers have adopted modern technology on a major scale in India, most small farmers
still rely on age-old farming techniques with mostly manual methods.
Boosting entrepreneurial minds in agriculture can boost productivity by incorporating modern
technologies in the farming sector. With increasing awareness and technology the risk of monsoon and the
price trends in the markets can be taken care of.
Agricultural Business Ideas
Farmer’s Market Vending, Herb Growing, Vegetable Farming, Livestock Feed Manufacturing,
Fruit Growing, Field Crop Farming, Nursery Operation, Dairy Farming, Poultry Farming, Fish Farming,
Rabbit Rising, Snail Farming, Mushroom Farming, Beekeeping, Honey Production, Beeswax Processing,
Soy Production, Bulk Foodstuff Wholesaling, Weed Killer Production, Fruit Canning, Jam Production,
Juice Production, Meat Packing, Florist Business, Spice Production
Agri Tech Social Enterprises
Agriculture plays a vital role in the GDP of India. 58% of Indian rural household is dependent on
agriculture for its livelihood. Here are few agri tech social enterprises who are working day and night to
improve agriculture with the help of latest technology.
Agri Tech Social Enterprises
Agrostar
Aim: To transform Agri-business and simplify the lives of farmers.
Product: “Direct to farmer” m-commerce is a platform where farmers can acquire agri-inputs at
their doorstep by just giving a missed call on 1800 number and the executive will return the call and take
care of the rest.
The agri-inputs include seed, crop nutrition, crop protection and hardware. It focuses primarily to
provide Quality, Convenience, Availability, Price, Ease of Use and Service to the farmers.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Women in Arunachal and their Status in the Socio - Cultural Life, Shillong: Government of Arunachal Pradesh. 363

Kisan Raja
Aim: To ensure food security by making agriculture farmer-friendly.
Product: GSM-based Mobile Motor Controller which is controlled by the farmers even from their
homes through mobile phones or landlines.
Earlier farmers used to get up at odd hours to switch off the motors. This agri tech social enterprise
resolved this problem. Its key features are Convenience, Protection and Comprehension.
EKGAON
Aim: To enrich 25 million households by 2020.
Product: Uses web and mobile applications to provide financial (credit, savings, remittance,
insurance, investment and mortgage on mobile phones), agricultural (Interactive Voice Response System,
Voice Recognition in Hindi, Telugu and Gujarati on mobile phones and weather information on web)
and government-related services (awareness of government programmes and services entitled to farmers
through web). ekagaon.com, a marketplacewhich provides “Direct from Farmer Produce” to urban
customers.
It is South Asia’s first platform to provide financial assistance through mobile phones. Ekgaon
works with the motive to provide One Village and One World Network platform where mobile technology
is used to encourage sustainable development of Self Help Groups and small farmers across India.
Digital Green
Aim: To integrate innovative technology with global development to create a world where all
humans live with dignity.
Product: Training to farmers are given through videos where their problems and solutions are
shown. Two online games, Wonder Village and Farmer Book where players are related as farmers with
whom Digital Green works.
This agri tech is a non-profit international organization which is busy in developing rural lives
in South Asia and Sub-Saharan areas. It has mingled technology and social organizations to upgrade
agriculture, health and nutrition.
Skymet
Aim: To forecast accurate weather condition to prepare the farmers to act accordingly and avoid unnecessary
damages.
Product: Crop Insurance, Weather Forecast, Media and Risk Management.
They believe to be the experts in measuring, predicting and limiting climate risk to agriculture. This,
no doubt enhances the yield as it prepares the farmers for drought and heavy rainfall, and consecutively
prepares farmers to take preventive measures for the same.
Reuters Market Light (RML)
Aim: To provide Agri Decision Support Solution to farmers through cuttinge-edge technology.
Product: RML Farmer, RML Trader and Redge.
RML makes sure that farmers are selling their produce at an appropriate rate. It helps in linking
farmers, traders and agribusiness companies. It has benefited over 2 million people from 13 Indian states.
Jain Irrigation Systems Ltd.
Aim: To create a sustainable world and inspires to leave the world in a better condition than it was found.

ISBN: 978-93-5300-292-3 Technical Session - IV

364 Women in Arunachal and their Status in the Socio - Cultural Life, Shillong: Government of Arunachal Pradesh.

Product: Drip Irrigation Systems, Sprinkler Irrigation Systems, PVC Piping Systems, HDPE Piping
Systems, Plumbing Systems, EX-CEL PVC Sheet, Food Processing, Tissue Culture Plants, Greenhouse,
Renewable Energy, Turn-Key Projects and Services.
This agri tech social enterprise is the second largest Micro-Irrigation company in the world and
has 55% share in India. It has become One-Stop Hi-tech Agri Shop. It has brought revolution in the
Indian irrigation system with the help of latest technology which are using cutting-edge research and
development to save water and increase the crop yield.
Nanopix
Aim: To increase 5% value of 1% Indian agriculture produce by grading in 2018.
Product: Nanosorter, Handheld Tracker, Railway Inspection, Blood Smear Analysis, Trackball
India’s Prime Minister Mr. Manmohan Singh selected Nanopix as the “Distinguished Entrepreneur
and Innovator” and invited to participate in “Start-up India, Stand-up India“. Nanosorter, a machine
based on patented ImageIn Technology helps cashew farmers in grading and sorting on the basis of color,
size and type in just single pass.
9. Rain Water Concepts Pvt Ltd.
Aim: To bring water literacy in India and promote rainwater harvesting.
Product: Rainwater harvesting solutions.
This agri tech has technologies which encompass irrigation and rain water harvesting, urban and
rural rainwater harvesting, bore-well recharging, subsoil recharging, stream-water harvesting, groundwater
recharging, non-irrigational agriculture, and the recycling of used water.
10. Barrix Agro Sciences Pvt Ltd.
Aim: To promote organic farming to volumnize the producitivity, and to protect the crops and living
organisims with minimal expenditure. Hence, increasing the GDP of the country.
Product: Pest Management Solution and Nutritional Management Solution.
This agri tech enterprise provides farmers with effective, affordable and eco-friendly crop protection
methods using latest technologies. It believes in 4-step process; Research, Develop, Produce and Market.
Not only this, it has its own e-shop from where one can buy organic products.
Suggestions
In the light of the above analysis following suggestions have been made to make regulation of
marketing of agricultural produce more efficient on the basis of recommendations made by Working
Committee of Planning Commission
1. Shift ‘agricultural marketing’ from the list of state subjects to the concurrent list for speeding up
the progress of market reforms and evolving a unified national market.
2. The state should hold regular elections of agricultural produce market committees and bring
professionalism in the functioning of existing regulated markets.
3. Not only the licensing of traders, commission agents and other market functionaries need to
be liberalized by de-linking the licenses with ownership of shops in the yards/sub-yards, the
requirement of multiple licensing for each market within a State needs relaxation.
4. Promote grading, standardization, packaging and certification in the market area.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Women in Arunachal and their Status in the Socio - Cultural Life, Shillong: Government of Arunachal Pradesh. 365

5. Ensure transparency in auction system, penalization on arbitrary deductions from the farmers’
realization, prompt payments to farmers, dissemination of market intelligence and speedier and
hassle free transactions in the market.
Conclusion
In the past agriculture has played and will continue to play a dominant role in the growth of
Indian economy in the future. It represents the largest sector producing around 28 percent of the GDP,
is the largest employer providing more than 60 percent of the jobs and is the prime arbiter of living
standards for seventy percent of India’s population living in the rural areas. These factors together with
a strong determination to achieve self-sufficiency in food grains production have ensured a high priority
for agriculture sector in the successive development plans of the country. An important facet of progress
in agriculture is its success in eradication of its critical dependence on imported food grains. Indian
agriculture has progressed a long way from an era of frequent droughts and vulnerability to food shortages
to becoming a significant exporter of agricultural commodities. This has been possible due to persistent
efforts at harnessing the potential of land and water resources for agricultural purposes. Indian agriculture,
which grew at the rate of about 1 percent per annum during the fifty years before independence, has
grown at the rate of about 3 percent per annum in the post-independence era.

ISBN: 978-93-5300-292-3 Technical Session - IV

 Agricultural Entrepreneurship
Anilambica Kata, Suresh Chandra.T
* Asst Prof, AKNU, [email protected]
**MBA, II YEAR, AU, [email protected]

Abstract Entrepreneurship is the process of designing, launching and running a new

business, which is more often than not, initially a small business, offering a product, process
or service for sale or hire. The people who create these businesses are called entrepreneurs.
Entrepreneurship has been described as the “capacity and willingness to develop, organize
and manage a business venture along with any of its risks in order to make a profit”.
Traditionally, agriculture is seen as a low-tech industry with limited dynamics dominated
by numerous small family firms which are mostly focused on doing things better rather
than doing new things. Over the last decade, this situation has changed dramatically due to
economic liberalization, a reduced protection of agricultural markets, and a fast changing,
more critical, society. Agricultural companies increasingly have to adapt to the vagaries of the
market, changing consumer habits, enhanced environmental regulations, new requirements
for product quality, chain management, food safety, sustainability, and so on. These
changes have cleared the way for new entrants, innovation, and portfolio entrepreneurship.
Key words: entrepreneurship, liberalization, agricultural, sustainability.

Introduction
The entrepreneurs who undertake agricultural pursuits are called” Agricultural entrepreneurs”.
They cover a wide spectrum of agricultural activities like cultivation, marketing of agricultural produce,
irrigation, mechanization, and technology.
With 60 per cent of India’s population still engaged in agriculture and allied activities, economists
and policy makers often talk about the need for creating new work avenues and industries to shift a major
segment of this population out of agriculture.
However, this is not the only solution to the economic woes of India’s rural poor. Apart from
generating new sources of jobs and income, it is equally important to bring about transformational change
in the agribusiness sector to augment incomes, create more sub-industries within the agricultural sector
and help the rural poor add to their agricultural resources.
Most agricultural outliers are forced to migrate to nearby towns and cities in search of work, often
in the unorganized unskilled sector. This highlights the need for developing more innovative mechanisms
in the rural economy that boost employment opportunities in the agri-sector.
The success of cooperatives in India, particularly Gujarat’s Dairy co-operative and Maharashtra’s
sugar co-operative are examples of what innovation and entrepreneurial thinking can do for the rural
sector.
Enterprising young entrepreneurs who have flooded urban India with start-ups in recent years have
unfortunately neglected the rural economy. Or to put it this way, entrepreneurs who can transform the
face of the rural economy have failed to emerge in rural India. Not only in developing alternative sources
Agricultural Entrepreneurship 367

of employment, entrepreneurship can also help radicalize farming techniques and bring innovation to
improve yields per hectare.
Smart farming is the need of the hour. Biotechnology can be also utilized in agriculture for benefits
by increasing the health of the soil and reduce the nitrogen intake.
The sectors that can benefit hugely from entrepreneurial intervention are food processing and
packaging, preservation of seasonal fruits and vegetables, seed processing, flower farming in addition to
crop farming etc.
Agro based industries can flourish in rural sectors where labour is abundant and labour cost is low.
Small and medium enterprises set up at rural level to supplement traditional farm income in a big way and
create alternative sources of income.
Time for Agricultural Start-ups
India today is emerging as a major start-up hub with the urban sector giddy with new entrepreneurial
energy. Unfortunately, the agricultural sector has remained out of ideas and out of mind.
The government has already initiated to offer attractive incentives including easy loans, insurance
schemes and tax benefits to farmers-cum-entrepreneurs.
Developing entrepreneurs in agriculture can immensely benefit Indian economy by
Reducing the burden on agriculture
Generating employment opportunities for rural youth
Reducing the need for migration from rural to urban areas, thereby reducing pressure on urban
cities etc.
Increasing individual and national income
Sectors where entrepreneurship can help the agribusiness:
1. Food processing
Agriculture-based industrial products account for half of all exports from developing countries.
However, most of them involve exports of raw material as against developed countries whose exports
mostly comprise processed goods. By continuing to operate at a low level of value chain, we are losing
income and production. An entire food processing industry can be developed in rural areas, augmenting
income and employment.
2. Floriculture
In a number of cases flower farming can be done on small tracts of land. In fact, bulks of flowers are
cultivated on ‘micro farms’. Farmers can utilize a part of their land to cultivate seasonal flowers alongside
regular conventional crops.
But, this needs markets in the vicinity or processing and preservation units. Entrepreneurs having
knowledge of flower cultivation and marketing can set up parallel industries in fertile rural lands.
3. Piscicaulture
Fish farming is practiced by a lot of farmers to augment their incomes. However they do so on
amateurish and small scale basis. A conscious business effort to develop small pond fish farms in rural areas
can enable Pisciculture to become a valuable sector in the rural economy. Fish cultivation on market scale

ISBN: 978-93-5300-292-3 Technical Session - IV

368 Agricultural Entrepreneurship

needs some knowledge and boosting entrepreneurship in the sector can make a difference, as done in the
western countries.
4. Farm technology
Dependence on outdated and inefficient technologies lead to poor productivity and low income.
Farmers still rely on age-old farming techniques with mostly manual methods.
Government initiatives
Under the Ministry of Micro, Small and Medium Enterprises and joint collaboration between
different Departments have initiated various schemes for Entrepreneurs in order to motivate and encourage
young minds to innovative ideas.
Financial assistance, insurance, subsidy, training, helps early stage tech start-up, business loans,
special incentive is provided to set up new enterprises for entrepreneurs of the Agricultural sector.
The Central Government Entrepreneur schemes for Agricultural are listed below:
ŠŠ Enterprise Development Schemes
ŠŠ Assistance to NCDC Programmes for Development of Cooperatives
ŠŠ Capacity Building to Enhance Competitiveness of Indian Agriculture and Registration of Organic
Products Abroad
ŠŠ Cold Chain
ŠŠ Cold Storage Unit - Basic Mezzanine Structure
ŠŠ Scheme for Cold Storage Unit - PEB Structure
ŠŠ Cold Storage Unit using Technology for Controlled Atmosphere
ŠŠ Dairy Entrepreneurship Development
ŠŠ Development Strengthening of Agricultural Marketing Infrastructure, Grading & Standardisation
ŠŠ Scheme for Establishment of Agri-Clinics and Agri-Business Centres
ŠŠ Fodder and Feed Development
ŠŠ Gramin Bhandaran Yojana A Capital Investment Subsidy for Construction Renovation of Rural
Godowns.
ŠŠ Horticulture for Post- Harvest Management Projects
ŠŠ Scheme of Horticulture in Open Field
ŠŠ Horticulture in Protected Cover
ŠŠ Marketing Research and Information Network
ŠŠ Post-Harvest Technology and Management
ŠŠ Promotion and Strengthening of Agricultural Mechanisation through Training, Testing &
Demonstration
ŠŠ Refrigerated Transport Vehicles
ŠŠ Small Farmers’ Agriculture-Business Consortium – Agriculture-Business Development
ŠŠ Strengthening of Agmark Grading Facilities
Problems

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agricultural Entrepreneurship 369

Developing entrepreneurship in agri-business is as much useful is not so easy and simple. In fact,
there are several challenges, but not confined to the following only, involved in developing entrepreneurship
in agri-business.
Lack of Skilled and Managerial Manpower:
Rural areas also suffer from rural-urban migration mainly male migration. This results in
denudation of educated and skilled manpower in rural areas. Lack of skilled and managerial manpower
in rural areas is mainly due to the absence of suitable educational institutions in rural areas. Moreover,
people even otherwise belonging to rural areas do not want to go back to rural areas to work due to various
problems the rural areas suffer from.
Lack of Infrastructural Facilities:
Infrastructure facilitates performing any activity. There is a need for the availability of a minimum
level of prior-built up infrastructural facilities to undertake any economic activity including starting an
enterprise. However, especially rural areas suffer from the lack of or weak infrastructural facilities in terms
of road, rail, telecommunication, electricity, market information network, etc. This, in turn, adversely
affects the effective use of agri-resources available, on the one hand, and efficiency and mobility of labour,
on the other.
Problem of Marketing:
If proof of pudding lies in eating, the proof of production lies in consumption. Production has no
value unless it is sold / consumed. The major marketing problems faced by agri-entrepreneurship are lack
of marketing channels and networks, promotional facilities, support system, poor quality of products, and
competition with medium and large-scale enterprises.
Conclusion
India is an emerging economy. For the Countries like India, which agro based, it seemed to be
necessary to create awareness on the opportunities and Issues existing in this sector. As it is one of the
most rapid growing sectors for the agro based countries. It is identified that our farmers who still do not
get the right MSP (minimum support price) for their crops and other agricultural products , the agro
entrepreneurs help for the overall development of the country. Entrepreneurs are the ones who can take
this initiative and give their contribution in this area which paves a path for self-development as well as
over all development of the society.
Bibliography
yy www.newincept.co.in
yy www.entrepreneur.com
yy economictimes.indiantimes.com
yy www.icrisat.org
yy www.yourarticlelibrary.com

ISBN: 978-93-5300-292-3 Technical Session - IV

A Study on Agriculture Entrepreneurship Development with Reference to Kothapali
Mandal, East Godavari District
*B. Swathi Devi, **G. V. Chaitanya
*APSET, Asst Professor, Department of management studies, KIET College, East Godhavari District
**Asst Professor, Department of management studies, KIET College, East Godhavari District

Abstract: The study is intended to find out the role of agripreneurs in agriculture development in kothapalli mandal,East
Godhavari district. Entrepreneurship has been names as one of the key driver for economic development .The importance
of entrepreneurship development in agricultural sector and business planning for agricultural firms-from input traders to
producers to processors and step required to prepare a through business plan .although Indian agriculture has come a long way,
there are certain implications that have to be addressed for national and nutritional security .An empirical investigation given
a picture of problem faced by entrepreneurs agriculture and allied sectors kothapalli mandal, East godhavari district. While this
is an enormous undertaking, the study could prove to be small step in this direction.

Introduction
The entrepreneur is an important input of economic development. He is a catalyst of development
with him we prosper without him we are poor. Entrepreneurs are both born and made. While some
people are born with natural talent and risk tolerance Entrepreneurship skills can be learned by everyone.
As Peter Drucker said Entrepreneurship is a discipline it can be learned. Entrepreneurship is the process
of identifying opportunity in the marketplace, marshalling the resources required to pursue these
opportunities and investing the resource to exploit the opportunities for long-term gains. It involves
creating wealth by bringing together resources in new ways to start and operate an enterprise. According
to him entrepreneurs are business leaders and not simple owners of capital. They are men of vision drive
and talent who spot out opportunities and promptly seize them for exploitation. It will not be out place
to mention here that innovation concept of entrepreneurship cannot be exclusively depended upon in
undeveloped countries. In these countries leaders who promote many large and small enterprises and adapt
western techniques of production and distribution to the prevailing conditions in their own industries
are entrepreneurs of no mean significance. They may not be innovators in the sense of the term but they
are men of great vision and effective industrial leaders who transform the economic landscape of their
countries. People like JamsetJi Nusserwanji Tata, Mavisvesvaraya G D Birla, Jamnalal Bajaj Laxmanrao
Kirloskar and other visionary’s builders and thinkers laid the foundation for a modern industrialized
India. Professor Bert F. Hoselitz calls them imitative entrepreneurs and regards their existence as quite
purposeful in a mixed economy. Coupled with all historical experiences of Western Europe, it appears to
be safe to assume, the writes that small and medium scale entrepreneurs are likely to play an important
role in developing countries for several decades provided these developing nations permit a private sector
of enterprise in the industrial commercial and financial field all.
Agricultural entrepreneurship can be defined as being primarily related to the marketing and
production of various agricultural products. Agricultural entrepreneurship is also related to agricultural
inputs. Examples of areas where agricultural entrepreneurs associate themselves include dairy, forestry and
horticulture. Production and marketing of agricultural inputs and outputs (Dairy, horticulture, forestry)
Political Entrepreneur There are three different types of political entrepreneurs.
1. The first is someone who is in some way related to the field of politics and creates new political
groups, parties or projects to make a profit
2. The second type is a political entrepreneur who makes profits through various government
contracts, subsidies and protection. Profit is made through various political arrangements.
A Study on Agriculture Entrepreneurship Development with Reference to Kothapali Mandal, East Godavari District 371

3. The third type is the more common politician. These political entrepreneurs use innovative ideas
and policies to benefit their own political career or interest and all the while make a profit.
Regardless of the type of entrepreneurship, each have a common primary aim between them and
that is making a decent amount profit. Entrepreneurs could work alone and keep the profit with them or
they may be part of a team. Those that are part of a team usually go on to create medium to large-sized
businesses. Irrespective of your field, every entrepreneur needs capital to start their venture. The initial
capital usually comes from either banks, investors or the entrepreneur(s). Entrepreneur(s) – This type of
capital gives an entrepreneur the greatest degree of freedom. However, the entrepreneur does have to use
his/her own money. If a team is made, all entrepreneurs invest money into the venture. Indian Agriculture
is known throughout the world for its multi-functional success in yielding employment and livelihood. In
fact, agriculture in India shapes the economy of the country to a large extent.
Agriculture is the principal occupation of the people of India. More than 70 percent of the
working population derives their livelihood by cultivation. Moreover, in India agriculture is the basis of
the economic structure of India, for it is not only the source of raw materials for the principal industries
of India such as jute textiles, sugar and cotton but it also accounts for the maximum portion of the total
income. Indian agriculture has been taking a special place in the lifestyle of the Indians. Moreover, with
the passing decades, Indian agriculture has earned multi-functional success in generating employment,
food, and livelihood, nutritional and ecological security. Agriculture and associated activities contribute
about 30% to the gross domestic product of India. Food grain crops are dominant everywhere and they
cover as much as three fourth of the total cropped area in India.
Objectives
1. To explore the concept of entrepreneur ship and the causes of its development
2. To study various type of entrepreneurship in agriculture and allied sectors in Kothapalli Mandal,
East Godavari district.
3. To study grants, subsidies, incentives, loans and other support available entrepreneurs in agriculture
and allied sectors in Kothapalli Mandal, East Godavari district.
Methodology
The intent of this section is to describe the methodology that is proposed for such a research
effort. Included In the section a description of research design, study sample and data collection methods,
procedures and analysis efforts.
The proposed study employs on ex-post factor research design as described by kerlinger ex-post
facto research is systematic empirical inquiry in which the scientist does not have direct control of variables.
A convenience sampling have draw from the list of entrepreneurs in a agriculture and allied sectors in a
kothapalli mandal, eastgodhavari district .75 ago entrepreneurs in total will be collected for analysis. In
the study use questionnaires with response sheet for closed ended responses will be employed to measures
various independent variables/attributes and dependent variables/attributes.
Discussion and Result
Entrepreneurship in agriculture is the key element of the study. The entrepreneurial behavior
has been analyzed and interpreted through administering a questionnaire to 75 agricultural formers of
Kothapalli Mandal in east Godavari district. The data collected have been classified, tabulated and analyzed
in the background of the objectives of the study.

ISBN: 978-93-5300-292-3 Technical Session - IV

372 A Study on Agriculture Entrepreneurship Development with Reference to Kothapali Mandal, East Godavari District

In the absence of local entrepreneurship, the opportunities in agriculture and allied sectors are
high jacked by outsiders, particularly the urban business man and traders, leading to exploitation and
deprivation of employment for the farmers ,considering the growing unemployment in rural areas and
slow growth of the agriculture and allied sectors ,it is necessary to tap the opportunities for promoting
entrepreneurship in agriculture and allied sector ,which it can turn can address the present problem related
to agriculture problem and profitability.
Analysis of factors contributed to entrepreneurship development and the causes of entrepreneurship
development among respondents.
Factors N Mean S.D

1.self-interested 54 0.72 7.299

2.family members 21 0.28 4.511
3.govt officials motivated -
Competence in manage business
1.avaliability of resources 46 0.61 6.73
2.product quality 29 0.38 5.34
Obstacles
1.no obstacles 42 0.56 6.43
2.self confidence 12 0.16 3.44
3.gender discrimination 8 0.1 2.81
4.intetention of labour forces 13 0.17 3.58

In self-interested factors have high value for mean in comparison of other motivating factor ,and
competence to manage business availability of resources have highest mean in comparison of product quality
and It may be observed that for 75 respondents 72% are motivated in startup business by self-interested
.there is 20% influence of family back ground of entrepreneurial activity, 61% of respondents choose
availability of resources and 38% of respondents choose product quality of the barriers on development
of entrepreneurial activity, 56% of respondents choose no obstacles when startup the business, and 16%
of respondents select lack of self-confidence,17% of respondents opted retention of labor forces when
startup the business.
(ii)Analysis of various types of entrepreneurship in agriculture allied sectors in Kothapalli Mandal,
East Godavari district
Agriculture, Forestry, and Fisheries Industry Categories:
Agriculture Crop Industry:
All establishments primarily engaged in the production of crops, plants, vines and trees. This also
includes sod farms, cranberry bogs, the production of mushrooms, bulbs, flower and vegetable seeds, and
hydroponic crops. This does not include forestry operations.
Agriculture Livestock Industry:
All establishments primarily engaged in the Keeping, grazing or feeding of livestock for the sale of
livestock or livestock products. Livestock includes cattle, hogs, sheep, goats, and poultry, as well as animal
specialties such as horses, rabbits, bees, pets, fish in captivity, and fur-bearing animals in captivity.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Agriculture Entrepreneurship Development with Reference to Kothapali Mandal, East Godavari District 373

Agriculture Services Industry:

For optimizing agriculture by every family enterprise there are different types services required
at the village level. All establishments primarily engaged in performing soil preparation services, crop
services, veterinary services, other animal services, farm labor and management services, and landscape
and horticultural services.
Fishing, Hunting and trapping industry:
All establishments primarily engaged in commercial fishing (including crabbing, leistering,
clamming, oystering, and the gathering of sponges and seaweed), and the operation of fish hatcheries and
fish and game preserves, in commercial hunting and trapping. and in game propagation.
Forestry Industry: All establishments primarily engaged in the operation of timber tracts, tree farms,
forest nurseries, and related activities such as reforestation services and the gathering of gums, barks,
balsam needles, maple sap, Spanish moss, and other forest products.
Factors N Mean
Type of business
Agriculture 13 0.17
Horticulture 0 0
Live stock 3 0.04
Fishery 10 0.13
Poultry 3 0.04
Forestry 46 0.61

In forestry have high mean value to comparison of other agricultural business and From the
following figure1 and table 2 it may be observed that for 75 respondents 61%are belong to forestry,
agriculture 17% fishery ,13%,4% are belong to poultry and livestock.
Analysis of grants and subsidies, incentives, loans and other support available entrepreneurs in
agricultural and allied sectors in Kothapalli mandal, East Godhavari.
The government of India has taken many initiatives towards strengthening the innovation
ecosystem, efforts made by the government towards the promotion of innovation for entrepreneurship
development and sustainable growth.
Factors N Mean Sd
Investment support
Family 12 0.16 3.44
Friends 11 0.14 3.29
Bank 19 0.25 4.33
Govt grant 4 0.05 1.98
Money lenders 29 0.38 5.34
Govt assistance
Not aware 15 0.2 3.84
Assistance not needed 8 0.1 2.81
Procedure is cumbersome 22 0.29 4.65

ISBN: 978-93-5300-292-3 Technical Session - IV

374 A Study on Agriculture Entrepreneurship Development with Reference to Kothapali Mandal, East Godavari District

Involve cost 9 0.12 2.97

Non cooperative 21 0.28 4.55

In investment supporting to entrepreneurs money lenders factors have high value for mean
comparison to other investment supporting factors. In govt assistance to entrepreneurs the procedure
become cumbersome, It may be observed that for 75 responses 38% mem are opted money lenders and
25%are bank,16% are family ,14% are friends,5% govt grants choose as a main source to support of
entrepreneurial development of agriculture and allied sectors in kothapali mandal, east godhavari district.
20% agripreneurs not aware any scheme on behalf of govt and 29% entrepreneurs feel govt
assistance for entrepreneurial development cumbersome and cooperative.
The govt of India realize the importance of agriculture to the development this nation and has
adopted several initiatives and programmes for this sector continuous growth. Notable among them are
Rashtriya krishi vikas yogana(RKVY);national Food security mission, National Horti culture Mission
Gramin Bhandaran yojana.etc..
Conclusion
Agriculture entrepreneurship shares many characteristics of generic entrepreneurship, but also
has its distinct features due to the specific context of the agriculture sector. Influence of availability of
labor, capital and raw material on the development of entrepreneurial activity but there is no influence
of educational back ground and family background of entrepreneurial development. Encouraging and
motivating entrepreneurs in rural areas is not an easy proposition .policies and special programs for the
development and channeling of entrepreneurial Talent. This paper suggest that a major challenges for the
agricultural sector is to enable farmers to develop their entrepreneurial skills .it may well point to the
fact that if the sector is under as much strain as many would suggest ,then former of all types will require
economic support and greater emphasis on education and training may be necessary.
Reference:
yy Atul kumar baksi(2014).An empirical evidence on entrepreneurship and economic growth in India ,journal of entrepreneurship and
management, 2014,Vol3 No3
yy Deepak Bhagat(2016).Factors contributing the success of rural entrepreneurs ,journal of entrepreneurship and management.
yy Maskell H Hannibalsson(2016) competitiveness localized learning and regional development
yy Gandgi V Kumar (2015) Agro industry for rural and small farmer development. The international Food and Agribusiness management
review
yy Misra SK ,Puri VK ,Indian economy, Himalaya publishing house 2005
yy Pandey,R.K(2009),Perspectives of agripreneurship and rural development ,Banaras HindUniversity.
yy Bairwa SL, Meena LK , Kumar LP. agripreneurship as a tool to upliftment of Agriculture
yy Mc Elwee G. Farmers as entrepreneurs: developing competitive skills, journal of development entrepreneurship,2006
yy Kualr IK Transforming Indian Agriculture through Agripreneurs,Indian journal of Marketing 2011
yy Ben Fatma Elhem; Ben Mohamed Ezzeddine; Sami Boudabbous. (2015). Does entrepreneur dispositional optimism bias affect small
firms’ technical efficiency International Journal of Entrepreneurship and Small Business,
yy Hao Hu; Taïeb Hafsi. (2015). Entrepreneurial social capital and reciprocal dependence effects on strategy: an empirical study of CROs
in China, International Journal of Entrepreneurship and Small Business
yy Kambeiz Talebi; Arash Rezazadeh; Amer Dehghan Najmabadi. (2015). SME alliance performance: the impacts of alliance
entrepreneurship, entrepreneurial orientation, and intellectual capital, International Journal of Entrepreneurship and Small Business ,
yy Morley Martina McDonnell; Chantal. (2015). Men and women in IT entrepreneurship: consolidating and deconstructing gender
stereotypes, International Journal of Entrepreneurship and Small Business, Vol.24, No.1, pp.41 – 61. 5. Arup Kumar Baksi. (2014).
Exploring the Relationship between Entrepreneurship, Innovation and Economic Progress: A Case of India with Evidences from GEM
Data and World Bank Enterprise Surveys, Journal of Entrepreneurship & Management, Vol. 3.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Agriculture Entrepreneurship Development with Reference to Kothapali Mandal, East Godavari District 375

yy Atul R. Deshpande. (2014). An Empirical Evidence on Entrepreneurship and Economic Growth in India, Journal of Entrepreneurship
& Management, 2014,
yy Brendan James Gray, Suzanne Duncan, Kirkwood & Jodyanne Sara Walton. (2014). Encouraging Sustainable Entrepreneurship in
Climate-Threatened Communities: A Samoan Case Study, Entrepreneurship & Regional Development,
yy Gry Alsos, Agnete Sara Carter & Elisabet Ljunggren. (2014). Kinship And Business: How Entrepreneurial Households Facilitate
Business Growth, Entrepreneurship & Regional Development.
yy Deepak Bhagat. (2014). Factors Contributing the Success of Rural Entrepreneurs in Hilly Areas: An Insight from Garo Hills, Meghalaya,
Journal of Entrepreneurship & Management, Vol. 3

ISBN: 978-93-5300-292-3 Technical Session - IV

 Emerging Trends in Agricultural Entrepreneurship
A. J. Mohan Rao, Gk. Patnaik Karakavalasa
*Associate Professor, Sanketika College of Technology and Management, Research Scholar, A.U, DCMS, Visakhapatnam
**Research Scholar, Dept. of HRM, A.U, Visakhapatnam
Abstract: Entrepreneurship is a vital facet of industrialized growth and development of a nation. It is
the backbone of a nation that sets its eyes on maximizing its performance in all walks of life. The fortitude of
entrepreneurship comprises enthusiasm, persistence and the ability to seek entrepreneurial opportunities that
lead to achievement. A nation’s ability to generate a steady stream of business opportunities can only come about
when its people take to entrepreneurial activities. Entrepreneurs are essentially the engines of growth for a nation.
India is emerging as the economic super power of the entire world. Primarily its economy is based on agriculture.
According to researches, the largest producer of milk, pulses, jute and stands in number one position. Also stands
second in the production of rice, wheat, sugar cane, groundnut, vegetables, fruits and cotton. And also a leading in the
production of spices and plantation crops as well as livestock, fisheries and poultry. Despite of weather and price shocks,
there is a tremendous growth in this sector in the recent times enables the entrepreneurs to come and explore their
opportunities and take active part of sustainable economic development of the country. The agri-preneurship is the latest
trend in the agricultural industry which includes production agriculture, food, fiber, the environment and natural
resources. Agri entrepreneurs avoid low risk situations because there is a lack of challenge and they avoid high risk
situations because they want to succeed. Hence they like to handle achievable challenges in their entrepreneurial endeavor.
Key words: economic super power, economic development, agri-preneurship, agri-entrepreneurs, low risk, high risk,
entrepreneurial endeavor

Introduction:
The advent of economic reforms in the year 1991 has unleashed umpteen number of opportunities
to explore and enter into the business world. India being the nation of agrarian society economy and
employment both were predominantly depending on this sector. In order to rise the economy and agriculture
being the backbone of the nation there is great need of considering serious profits and revenue generation
apart from development. Most our agricultural produces has a great demand in the foreign markets. This
could be the main reason for the tycoons investing their capital with no second thought. These capitalists
invested their money as stakeholders. Agriculture and allied activities provided to be a boon as their
investment destination when they earned dividends and other entrepreneurs followed suit. Agricultural
entrepreneurship is the need of the hour because today our economy consists of entrepreneurship in many
sectors and then our farmers are in great use of assistance to entrepreneurs and can be of great help.
India is emerging as the economic super power of the entire world. Primarily its economy is based
on agriculture. According to researches, the largest producer of milk, pulses, jute and stands in number
one position. Also stands second in the production of rice, wheat, sugar cane, groundnut, vegetables,
fruits and cotton. And also a leading in the production of spices and plantation crops as well as livestock,
fisheries and poultry. Despite of weather and price shocks, there is a tremendous growth in this sector
in the recent times enables the entrepreneurs to come and explore their opportunities and take active
part of sustainable economic development of the country. The agri-preneurship is the latest trend in the
agricultural industry which includes production agriculture, food, fiber, the environment and natural
resources. Agri entrepreneurs avoid low risk situations because there is a lack of challenge and they avoid
high risk situations because they want to succeed. Hence they like to handle achievable challenges in their
entrepreneurial endeavor.
India is an emerging economy. It is not a hidden fact that out farmers who still do not get the right
MSP (minimum support price) for their crops and other agricultural produce need assistance of some well
professed people. Entrepreneurs are the ones who can take this initiative and give their contribution in
this area.
Emerging Trends in Agricultural Entrepreneurship 377

Why Agricultural Entrepreneurship?

Traditionally, agriculture seen as a low-tech industry with limited dynamics dominated by
numerous small family firms, which are mostly paying attention on doing things better rather than doing
novel things. Over the last decade, this situation has changed dramatically due to economic liberalization,
a reduced shelter of agricultural markets, and a fast changing, more decisive, society. Agricultural
companies progressively more have to adapt to the vagaries of the market, varying consumer lifestyle,
enhanced ecological regulations, new necessities for product quality, chain management, food security,
sustainability, and so on. These alterations have cleared the way for new participator, innovation, and
portfolio entrepreneurship.
Concept of Agripreneur
Agripreneur defined as “entrepreneur whose main business is agriculture or agriculture-related”
Agriculture + Entrepreneur = Agripreneur
Concept of Agripreneurship
Agripreneurship defined as “generally, sustainable, community-oriented, directly-marketed
agriculture. Sustainable agriculture denotes a holistic, systems oriented approach to farming that focuses
on the interrelationships of social, economic, and environmental processes”.
Agricultural entrepreneurship shares many characteristics of “generic” entrepreneurship, but also
has its distinct features due to the specific context of the agricultural sector. With better industrial and
entrepreneurial education discipline, entrepreneurs will naturally take advantage of the vast human resource
availability. It is clear that there is a great scope for entrepreneurship in agriculture and this potentiality
can be tapped only by effective management of agri elements an individual with risk bearing capacity
and a quest for latest knowledge in agriculture sector can prove to be a right agripreneurs. The agriculture
sector has a large potential to contribute to the national income while at the same time providing direct
employment and income to the numerically larger and vulnerable section of the society. Agripreneurshipis
not only an opportunity but also a necessity for improving the production and profitability in agriculture
sector.
Objectives
ŠŠ To study the concept of Entrepreneurship in Agricultural Sector.
ŠŠ To understand the Problems and Prospects of Entrepreneurship in Indian Agriculture Sector.
ŠŠ To observe the various type of Entrepreneurship in Agricultural Sector.
ŠŠ To identify the use of Technology in Agricultural Entrepreneurship.
Need of The Study
According to researches, it is possible to identify the emerging trends in agricultural entrepreneurship
but most of them addressed only one or few dimensions of entrepreneurship in Agriculture and allied
sectors, none of them adopted integrated approach to study the entrepreneurship in Agriculture and allied
sectors. One or few dimensions will, definitely, not give fair and complete picture of their operations,
problems and prospects. Hence there is an immediate need for such studies.
Methodology:
Collection of the data (samples) is the primary aspects in research process. The research includes
both primary and secondary data. The information from the respondents is collected through questionnaire.

ISBN: 978-93-5300-292-3 Technical Session - IV

378 Emerging Trends in Agricultural Entrepreneurship

Data which is collected for the purpose of research helps proper analysis to develop findings which is
helpful to conduct research effectively.
Primary Data:
It is collected for through administering the questionnaire by direct contact and also through
direct observation to obtain the insights of the information. Questions will be framed in such a way that
the answers reflect the ideas and thoughts of the respondents with regard to level of satisfactions.
Secondary Data:
The secondary data consist of information that already exists and which has been collected by
some persons, at some other time for the purpose. The secondary data is mostly collected from books,
Journals, reports, internet Sources.
The main source of data in this study is secondary data only.
Review of literature:
Entrepreneurs entering into agribusiness and the efforts made by them in this field help transform
the economic facet of the country towards greater dynamism. Young and highly educated individuals
are getting motivated to participate and come up with new strategies to market the agricultural based
produces.
Although Indian Agriculture has come a long way, there are certain implications that have to be
addressed for national and nutritional security. Our population is expected to be 1.4 billion by 2020. The
increasing population, coupled with growing income will generate increased demand for food grains and
non-food grain crops. Therefore, Indian agriculture has to achieve a higher growth rate targeted at 4 per
cent per annum on a sustainable basis. Acceleration of growth of this sector will not only push the overall
GDP growth upwards, it would also make the growth more inclusive. Since increase in net sown area
has flattened out, further increase in agriculture production needs to come through an increase in gross
cropped area (multiple cropping), coverage of area under irrigation and improvement in the productivity
levels. Agriculture sector needs well-functioning markets to drive growth, employment and economic
prosperity in rural areas of the country. To provide dynamism and efficiency into the marketing system,
Entrepreneurs are defined as people who are involved in a business or enterprise whether in
agriculture, livestock, production or service (Sahri, 2007). Meridith, Nelson and Neck (1982), however,
state that entrepreneurs are individuals who are able to predict opportunities, gather resources that are
needed such as time, energy and money, and take actions that are necessary to ensure success. This opinion
differs from Kuratko and Hodgetts (2004) who see entrepreneurs as individuals who face uncertainty
in many respects. Meanwhile, Drucker (1985), through a more comprehensive approach, states that
entrepreneurs are individuals who are able to transfer economic resources from less productive sectors to
those with higher productivity. Meanwhile, Buang (2002) takes the view that entrepreneurs are individuals
who successfully create value added to the market.
There are a great many skills which are necessary to run the farm business, ant to be successful in
a competitive market environment. The next stage will focus on these skills. Clearly the extent to which
farmers are capable of being able to fully delineate their own skill capacity necessitates further work.
Vinisha Bose (2013) Development of entrepreneurship has become a movement in India
in the recent years. Entrepreneurship Development Programmes have been considered as an effective
instrument for developing entrepreneurship in the country side. Hundreds of EDPs are conducted by
various organisations to impart entrepreneurial training to participants in thousands. Though the EDPs

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Emerging Trends in Agricultural Entrepreneurship 379

are conducted with the intention of grooming entrepreneurs, more often than not the programmes do not
yield the desired results. when the bug of Entrepreneurship bites an Entrepreneur he becomes passionate.
He has limited resources and has to think of creative and easy ways to scrape together enough money to
put up as set capital. She is a person who has passion determination and persistence to take calculated
risk. All this value may see theoretical but the blending of these values, which give the results. They are
successful because their passion leads them to organize available resources inn new and more valuable
ways.
Sarkar, M. B.; R. A. J. Echambadi; and Jeffrey S. Harrison (2001) extends entrepreneurship in
domain of alliances and examines the effect of alliance proactiveness on market-based firm performance,
including the higher performance of firms that are proactive in forming alliance and the moderating
influence of firms size and environmental uncertainty on the relationship between alliance pro-activeness
and performance.
(Bairwa , 2012), Agripreneurship plays various roles in the growth and development of national
economy through entrepreneurship development which increases the income level and employment
opportunities in rural as well as urban areas
Nowadays, Easy access to technology, emergence of micro financing, liberalized government rules,
awareness and training programmes on agri and allied sectors and finally changing mindset of the highly
qualified people to go for self-employment in the field of agriculture have contributed significantly in
enhancing the potentiality for entrepreneurship in India (Bairwa et al., 2014.
Agriculture have several areas of entrepreneurship which include the activities like, Dairying,
Sericulture, Goat rearing, Rabbit rearing, Floriculture, Fisheries, Shrimp Farming, Sheep rearing, vegetable
cultivation, nursery farming, farm forestry Pandey, RK (2009)
The possible areas of entrepreneurship in agriculture are:
1. Agro produce processing units –Thee units do not manufacture any new product. They merely
process the agriculture produce e.g. Rice mills, Dal mills, decorticating mills etc.
2. Agro Produce manufacturing units –These units produce entirely new products based on the
agricultural produce as the main raw material. E.g.-Sugar factories, Bakery, Straw board units etc.
3. Agro-in puts manufacturing units –These units produce goods either for mechanization of
agriculture on for increasing manufacturing plants, e.g.-Fertilizer production units food processing
units, agricultural implements etc
4. Agro service centers –These include the workshops and service centre for repairing and serving the
agricultural implement used in agriculture.
5. Miscellaneous areas –besides the above mentioned areas, the following areas may prove to be
encouraging to establish agri enterprises such as setting up of Apiaries, feed processing units, seed
processing units, mushroom production units, commercial vermin compose units, goat rearing
farmers club, organic vegetable and fruits retail outlet, bamboo plantation and jatropha cultivation.
Challenges The growth and survival of any business units is most contradictory in nature. Complex
and dynamic nature of business entities also provides a ground for the existence of certain complexities.
However, this factor is solely the question of adaptability and vision which is also the quintessential
qualities of an entrepreneur, who can create value for himself and the ecosystem in the most alien of
environments. It is not often nor a supernatural gift that an entrepreneur comes along and creates a
successful business opportunity out of nothing, he encountered and thrived against all odds and shaped

ISBN: 978-93-5300-292-3 Technical Session - IV

380 Emerging Trends in Agricultural Entrepreneurship

his business destiny before time and time beyond fortunes. In the light of the above statement, some major
challenges to the small scale farmer entrepreneurs of the state are studied here below:
1. Risk factor involve the investment were high and may lost permanently depending on how the
business is run.
2. Return on investment may be comparatively low.
3. Constraints in marketing of their produces.
4. Less seed capital, access to financial credits and borrowing sources.
5. Transportation, communication and sometimes storage facilities pose as some of the major
challenges to the small-scale farmers in Manipur.
6. Lack of policies promoting entrepreneurship in the state.
7. Lack of EDPs programmes and Trainings.
8. Less motivational factors.
It may be noted; being associated by such living challenges, failures in the business of the small
scale farmer entrepreneurs are vivid in the state of Manipur. Whereby, prompt intervention of the state
government remains an indispensable input for the success of their businesses. Policy makers need to
make „failure friendly environment that helps foster entrepreneurship among others and push forward the
existing entrepreneurs to work beyond their failures.
Case:
Green Rich India was set up in in Madhurawada, Visakhapatnam. The following are the credentials
of this agricultural company.
Multiple Agriculture Franchisee:-Agriculture business in India plays a dominant role in generating
revenues and export earnings various support from government, such as financing options and tax-
exemptions have further widened the scope of business opportunities in farming give the right platform
to your entrepreneurial dream by taking up franchisee opportunities in plant sales, farm equipment’s,
agricultural products, fruits, pests, fertilizers and seeds and so on pulses to tractors, becoming a franchisee
of anything in the agro industry engages attractive profits, all Agriculture related products available at one
platform.
ŠŠ Seeds, Pests, Fertilizers supply to farmers
ŠŠ Contract farming (Buy- back their products)
ŠŠ Quality plants supplying nurseries and farmers
ŠŠ Soil analysis reports
ŠŠ Agricultural machinery on hire [Rental base]
ŠŠ Farmer membership
ŠŠ Training in all agricultural related entrepreneurs
ŠŠ Animal hostels in all live stock demo units
Training in all agricultural entrepreneurs: - In every district head quarters below the following trainings
are also available.
ŠŠ Aquaculture fish, prawn etc
ŠŠ Poultry boilers ,layer ,color boilers etc

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Emerging Trends in Agricultural Entrepreneurship 381

ŠŠ Dairy farm, cow/buffalo

ŠŠ Sericulture on farm training
ŠŠ Genie birds farming
ŠŠ Quail birds farming
ŠŠ Goat/sheep farming
ŠŠ Turkey birds farming
ŠŠ Piggery unit
ŠŠ Rabbit farming unit
ŠŠ Mushroom culture training unit
I. Aggri Skilled Labour :-Each and every district have 400-500 trained agri skilled labors. This trained
candidates are useful for farmers and industries, school, college, garden maintenance.
This is important activity of our company because now a days agriculture management trained
skilled labour availability is less and no one organization trained this type of skilled labour like pesticide
spraying, fertilizers applying, irrigation management and tractor drivers, weed control machine operator,
lawn and garden maintenance labour. Our company proudly announced that we will give training for
educated/non educated village candidates who is interested in this field. We will give good training of all
agri related training and give placements to that people at our client’s fields. They got good salary and
residential facility and also training conducted for agri new entrepreneur users who started agri and agri
related institutions/industries.
The above trainings available at only dist. head quarter franchisee only. This is useful for agri and
science college students.
Conclusion:
The entrepreneurship miracle in other country is an engine for job creation, innovation and diversity.
In the case of diversity it is observed that women – owned and minority owned business may be emerging
growth companies of the next decade. The role of entrepreneurship in global business of developing
countries like India is also significant. The wide range of significant contributions that entrepreneurship
makes include promotion of capital formation, creation of immediate large-scale employment, promotion
of balanced regional development, and effective mobilization of capital and skills
References:
yy Sahri, Y. M. M. (2007). Keusahawanan di Malaysia. Retrieved 24 Ogos, 2007, from http://ms.wikipedia.org/wiki/keusahawanan_di_
Malaysia
yy Drucker, P. (1985). Innovation and Entrepreneurship: Practice and Principles. New York: Harper and Rowe.
yy Meredith, G. G., Nelson, R. E., & Neck, P. A. (1982). The Practice of Entrepreneurship. Geneva: International Labor Office (ILO).
yy Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Thoery, Process, & Practice. Ohio: South-Western Publisher.
yy Buang, N. A. (2002). Asas Keusahawanan. Shah Alam, Selangor: Penerbit Fajar Bakti.
yy Vinisha Bose. (2013). An Analysis of Women Entrepreneurship Development
yy Programmes in the State of Kerala, Journal of Entrepreneurship & Management,
yy Vol. 2, No. 3
yy Sarkar, M. B.; R. A. J. Echambadi; and Jeffrey S. Harrison. (2001). Alliance
yy Entrepreneurship and firm market performance. Strategic management Journal,
yy vol. 22, no 6/7. Pp. 201-12.
yy Misra SK, Puri VK. Indian economy. HimalayaPublishing House, 2005, 888.
yy Bairwa, S. L., Lakra, K., Kushwaha, S., Meena, L. K., & Kumar, P. (2014). Agripreneurship Development as a

ISBN: 978-93-5300-292-3 Technical Session - IV

 A Study on Employment Conditions and Risks among Street Food Vendors in
Thiruvannamalai District
Dr. E. Sambasivan,
Assistant Professor, Department of Commerce, Faculty of Science and Humanities, SRM University, Chennai, Tamil Nadu.
Abstract: Street food vending is found around the world, but has variations within both regions
and cultures. Street foods are consumed in many areas. Often sold by street vendors and peddlers,
street food is usually ready-to-eat food or drink sold in a street or other public place, such as
a market or fair, by a hawker or vendor, often from a portable stall. The present study explores
that employment conditions and risks among street food vendors in Thiruvannamalai District.
The study explores that street food vendors in Thiruvannamalai District are independent self-
employed on whole time as well as part time basis in undesignated market place. Working outside,
street food vendors and their goods are exposed to strong sun, heavy rains and extreme heat or
cold. Unless they work in markets, most don’t have shelter or running water and toilets near
their workplace. Inadequate access to clean water is a major concern of prepared food vendors.
Key words: Street Food Vendors, Employment Status, Service situation, etc.

Conceptual Framework
Urbanization has resulted in a proliferation of street food vendors and hawkers as the movement
of people from rural to urban areas has led to the need to feed large numbers of working people away from
their place of residence. In many countries, street vendors prepare the first meal of the day for low-income
workers. The FAO (Food and Agriculture Organization of the United Nations) estimate that up to 30%
of household food expenditures were devoted to prepared food purchased outside of the household and
Tinker (1993) also reports at least twenty percent of the household food budget is spent in this way.
Street vendor means a person engaged in vending of articles, goods, wares, food items or
merchandise of everyday use or offering services to the general public, in a street, lane, side walk, footpath,
pavement, public park or any other public place or private area, from a temporary built up structure or
by moving from place to place. Street vendors are an integral component of urban economies around
the world. Distributors of affordable goods and services, they provide consumers with convenient and
accessible retail options and form a vital part of the social and economic life of a city. Street vending as
an occupation has existed for hundreds of years (Bromley 2000) and is considered a cornerstone of many
cities’ historical and cultural heritage.
Street foods are very well patronized in many developing countries since they are affordable, easily
accessible and also serve as an important source of income. However, these street foods largely do not meet
proper hygienic standards and can therefore lead to morbidity and mortality due to food borne illnesses,
and concomitant effects on trade and development
Street foods have been considered as an important element in the urban food production and
consumption and employment sectors for the past 15 years or so. The Equity Policy Center (EPOC) of
Washington, USA examined the employment generated in the street food sector, particularly for women
(Tinker, 1997). Street food vendors can earn a reasonable income, in some countries well above the
minimum wage. For consumers street foods are also a dependable source of cheap foods, often economies
of scale in preparation mean that they can be cheaper than food prepared at household level and thus
constitute a significant portion of nutritional intake for the urban poor.
A Study on Employment Conditions and Risks among Street Food Vendors in Thiruvannamalai District 383

Street food vendors are a self-employed category of small entrepreneurs who are not dependent on
any institutional structures to find their livelihoods. Their enterprises evolve exclusively around their own
individual strengths and the support extended to them by their immediate social networks such as family
members and other close associates. The earnings from their business enterprises are a means of living
for the vendors themselves and their dependent family members. As such, these economic activities of
the street food vendors have not only provided a source of livelihood to the vendors and their dependent
family members but also have reduced the plight of their becoming an economic and social burden on
the State.
Review of Literature
M Bartley, A Sacker, and P Clarke, (1991 - 2001), in their research work on, “Employment
status, employment conditions, and limiting illness: prospective evidence from the British household
panel survey” stated that, Secure employment in favorable working conditions are associated with a greatly
reduced the risk of healthy people developing limiting illness. Lower income is associated with a higher
risk of limiting illness, independently of education, social class, education, and employment status. Secure
employment increases the likelihood of recovery. Deterioration in job security may be an important
reason behind the increasing prevalence of limiting illness in the community.
Jacob Olang’oOnyango, Prof. Olima W.L.A, Dr. Leah Onyango, (2012) The study concludes
that street vendors identify the locations where they vend on their own without any guideline .The sites
taken at random by vendors make the pattern of street vending look haphazard within the urban built
environment. This make Local Authorities view street vending as disorganized activity giving bad image
to the town.
R. Karthikeyan and Dr. R. Mangaleswaran, (2013), in their research work on “A Study on
Working Patterns of Unorganized Sector with Particular Reference to Street Vendors in Tiruchirppalli,
Tamil Nadu” concluded that, street vendors are integral part of human society. These people are to be
looked after by the individuals, groups and communities. Even though they have this type of occupation,
their life on this earth is threatening. Government should take active roles to implement the policies
effectively which they have made. Hence, the government should look in to the problems of the street
vendor’s each and every corner of life. As professional social workers, it is our duty and obligation to work
for the wellbeing of the Street Vendors.
M J Saurel-Cubizolles, J Zeitlin, N Lelong, E Papiernik, G C Di Renzo, and G Bre´art, (2003),
in their research report on “Employment, working conditions, and preterm birth: results from the Europe
case-control survey” concluded that, these findings show that specific working conditions affect the risk of
preterm birth. They also suggest employment related risks could be mediated by the social and legislative
context.
Objectives of The Study
The broad objective of present study was to study the Employment Conditions and Risks among
Street Food Vendors in Thiruvannamalai District and the specific objectives were to study the employment
context, location of work place, income risk, and health hazards of street food vendors.
Research Methodology
Study Area
The present study was confined with the street food vendors carrying out their business activities
in the main city of Thiruvannamalai .

ISBN: 978-93-5300-292-3 Technical Session - IV

384 A Study on Employment Conditions and Risks among Street Food Vendors in Thiruvannamalai District

Methodology Adopted
The present study was exploratory research work, as it explores the employment conditions of
street food vendors in the city of Thiruvannamalai and it also explores the employment risks that were
faced by the street food vendors in the city of Thiruvannamalai .
Sampling Technique
The present research work was followed random sampling. The researcher went for data collection
in the city of Thiruvannamalai for a period of one month and could able to cover 90 street food vendors.
Hence, 90 respondents were considered for the present study.
Tools Employed
The present research work used structured interview scheduled for the collection of field work
data, that is, primary data. To analyze the primary data statistical tools such as, Percentage, Mean and
Standard Deviation were employed.
Table 1: Incumbent Population by Personal Details

Variable No. of Respondents %

Age
20 – 30 08 8.8
31 – 40 42 44.5
41 – 50 26 28.8
51 – 60 12 13
61 – above 02 2
Mean 40.9
Standard Deviation 9.3
Sex
Male 54 60
Female 36 40
Educational Qualification
Illiterate 22 24
Primary 31 34
Secondary 14 15.5
Higher Secondary 19 21
Graduate 04 5
Marital Status
Married 74 82
Unmarried 12 13
Widow/Widowed - -
Separated 04 05
Religion
Hindu 57 63

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Employment Conditions and Risks among Street Food Vendors in Thiruvannamalai District 385

Variable No. of Respondents %

Muslim 33 37
Christian - -
Others - -
Community
General 15 16.6
SC/ST 30 33
OBC 45 50
Others - -
Family Size
2 – 3 members 19 21
4 – 5 members 48 53
6 – above members 23 25.5
Source: Primary Data
Table 2: Distribution of The Respondents by Their Position of Business
Variable No. of Respondents %
Initial investment
1000 – 5000 47 52
5001 – 10000 21 23
10001 – 15000 16 17.7
15001 – 20000 06 06.6
Type of business
Vegetables 22 24
Fish 03 3
Fruits 24 26.6
Readymade Foods 41 45.5
Profits per day
100 – 500 68 75.5
501 – 1000 12 14
1001 – above 10 11
Time spends on vending
4 – 8 hours 40 44
8 – 10 hours 28 31
10 – 12 hours 14 15.5
12 and above hours 08 09
Savings per month
1000 – 5000 12 13
5001 – 1000 58 64
10001 – 15000 11 12

ISBN: 978-93-5300-292-3 Technical Session - IV

386 A Study on Employment Conditions and Risks among Street Food Vendors in Thiruvannamalai District

15001 – 20000 09 10
20001 – above - -
Source: Primary Data

Table 3: Distribution of The Respondents by Their Employment Conditions

Variable No. of Respondents %
Years of Business
1–5 10 11
6 – 10 13 14.4
11 – 20 30 33
21 – 30 35 38.8
31 – 40 02 2
40 – 50 - -
Location of workplace
Designated 16 17.7
Undesignated 49 44.8
Mobile/Variable 25 27.7
Employment Perspective
Whole time 37 41
Part time 43 47.7
Weekly 10 11
Seasonal - -
Employment Status
Independent self employed 24 26.6
Semi – dependent employees 58 64
Dependent employee 08 8.8
Source: Primary Data

Table 4: Distribution of The Respondents by their Employment Risks

Variable No. of Respondents %
Income risk
There was local govt. Eviction 62 68.8
There was seasonal variation 18 20
There was competitive pressure 10 11
Sanction risk:
Legal sanction 24 26.6
Social sanction 66 73
Health risk:
Operates near open drainage 14 15.5
Due to movement in open air 52 57.7

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

A Study on Employment Conditions and Risks among Street Food Vendors in Thiruvannamalai District 387

Variable No. of Respondents %

Must lift and pull heavy loads 24 26.6
No health hazards - -
Source: Primary Data
Analysis and Discussions
Incumbent Population by Personal Details
Table 1 represents the distribution of street food vendors’ general information. It shows that, most
of them belong to the middle age group (31-40 years 44.5%) with their mean age 40.9 years and standard
deviation 9.3 years. The street food vendors by their gender show that, absolute majority (60%) of them
was male and minority (40%) of them was female. The educational qualification of the respondents showed
34% of respondents were primary, 24% illiterate, 21% had completed higher secondary school, 15.5%
had completed 10th standard and 5 % were graduate holders. A vast majority (82%) of the respondents
got married, 13% of the respondents do not married and 5% of the respondents were separated. Majority
(63%) of the respondents followed Hindu Religion and remaining 37% of the respondents belonged
to Muslim Religion. Half (50%) of the respondents community was Other Backward Classes (OBC),
33% of the respondents were comes under SC/ST category and 16.6% of the respondents were General
category. The family members of the respondents showed that, majority (53%) of the respondents had 4 –
5 family members, 25.5% of the respondents have 6 – above family members and 21% of the respondents
had 2 – 3 members in their family.
Business Position of the Street Food Vendors in Thiruvannamalai District
Distribution of respondents by their business position as street food vendors in Thiruvannamalai
District is presented in Table 2. Majority (52%) of the respondents initial investment was Rs. 1000 – 5000,
23% of the respondent’s initial investment was rupees above 5000 – 10000, 17.7% of the respondents
initial investment was rupees above 10000 – 15000 but 6.6% of the respondents was invested rupees
above 15000 to Rs.20000 in their business. The street food vendors by their type of business show that,
nearly half (45.5%) of the respondents were doing ready to serve business, 26.6% of the respondents
selling fruits, 24% of the respondents involving vegetables selling activities and remaining 3% of the
respondents retailing fish business in the study area. A vast majority (75.5%) of the respondents saving
per day was between Rs.100 – 500, 14% of the respondents earning rupees above 500 – 1000 per day and
very few 11% of the respondents earning above Rs.1000. The street food vendors by their time spends
on vending show that, 44% of the respondents was working short span of 4 – 8 hours a day, 31% of the
respondents spends 8 – 10 hours to vending activities, 15.5% of the respondents was working more than
10 – 12 hours a day and 9% of the respondents more than 12 hours a day. The street food vendors by their
monthly level of savings show that, absolute majority (64%) of the respondents had savings per month
was Rs.5001 – 10000, 13% of the respondents had Rs.1000 – 5000, 12% of the respondents had rupees
above 10000 – 15000 per month, 10% of the respondents had earned rupees above 15000 – 20000 and
none of them do not exceed 20000 per month.
Employment Conditions of the Street Food Vendors in Thiruvannamalai District
An employment condition of the street food vendors in Thiruvannamalai District is presented
in table 3. The years of business as street food vendors in Thiruvannamalai District showed 38.8% had
21 – 30 years business, 33% had 11 – 20 years of business, 14.4% had 6-10 years of business, 1% of the
respondents had 1 – 5 years of business and two respondents had 31 – 40 years of business. The location

ISBN: 978-93-5300-292-3 Technical Session - IV

388 Role of Agricultural Entrepreneurship for Sustainable Economic Development -Special focus on Food Processing Industry

of their business represents that 44.8% of them were carrying out in undesignated natural market and
27.7% carried out as mobile/variable, 17.7% of the respondents working in designated market place. The
employment perspective of the street food vendors showed that, nearly half (47%) of the respondents
working as a part time, 41% of the respondents working as whole time worker and 11% of the respondents
were weekly worker in the study area. A vast majority (64%) of the respondents were semi – dependent
employees, 26.6% of the respondent’s independent self-employed and 8.8% of the respondent dependent
employee among the street food vendors in Thiruvannamalai District.
Employment Risk among The Street Food Vendors in Thiruvannamalai District
Table 4 represents the employment risk among the street food vendors in Thiruvannamalai
District. It revealed that 68.8% had a risk of local government eviction, 20% of the respondents have
a risk of seasonal variation and 11% had competitive pressure from the other competitors.73% of the
respondents facing social sanction and 26.6% of the respondents were facing legal sanction risk. The
study revealed health risk among the street vendors in many ways such as; 15.5% faced due to operations
near open drainage, 57.7% due to movement without any protection from sunlight and 26.6% faced due
to lifting and pulling of heavy loads.
Conclusion
Street food business plays an important role in contemporary urban areas in Thiruvannamalai
District. It represents a viable employment opportunity for vulnerable groups and ensures food access
for a large part of the middle- and low-income working classes. Majority (60%) of the respondents was
male and 63% of the respondents belonged to Hindu religion. Majority (52%) of the respondent’s initial
investment was Rs.1000 – 5000, absolute majority (64%) of the respondents had savings per month was
Rs.5001 – 10000, The years of business as street food vendors in Thiruvannamalai District showed 38.8%
had 21 – 30 years business, The location of their business represents that 44.8% of them were carrying
out in undesignated natural market. The employment perspective of the street food vendors showed that,
nearly half (47%) of the respondents working as a part time, a vast majority (64%) of the respondents
were semi – dependent employees among street food vendors in Thiruvannamalai District.
References:
yy Stefano R. Marras (2014): “Comparative analysis of legislative approaches to street food in South American metropolises”, Street Food
Book.
yy Sharit K. Bhowmik and Debdulal Saha (2012): “Street Vending in Ten Cities in India”, Conducted by School of Management and
Labour Studies, Tata Institute of Social Sciences for National Association of Street Vendors of India, Delhi, Deonar, Mumbai, June.
yy Sharit K. Bhowmik: “Hawkers and the Urban Informal Sector: A Study of Street Vending in Seven Cities”, National Alliance of Street
Vendors of India (NASVI), New Delhi.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

 Role of Agricultural Entrepreneurship for Sustainable Economic Development
-Special focus on Food Processing Industry
*Smt. L. Vijaya, **Smt. P. Rupavathi
Assistant Professor, Dept of Management Studies, Vignan’s Nirula Institute of Technology &amp; for Women, Guntur & Research
Scholar, ANU, Guntur;
Assistant Professor, Dept of Management Studies, Vignan’s Nirula Institute of Technology &amp; for Women, Guntur;

Abstract: The aim of this paper is to develop the contributions of entrepreneurship through agricultural sector and to focus
the contribution of Food Processing Industry ( FPI ) in the economic development of India. Agriculture is the backbone for any
country’s economic development and it creates the opportunities of employment and business. It is a popular belief that economic
development takes place because of rapid industrialization. The conception of both economists and policy makers regarding the role of
agriculture and industry in economic development has undergone an important evolution. Now, both are regarded as an active and
co-equal partners in the process of economic development. With the passage of time, India’s agriculture has been transformed from
subsistence level to commercial level. India’s rich agricultural base has potential to add significant value to the food processing sector.
In this paper, an attempt has been made to bring out developmental experience of India in relation to the food processing industry.
Key words: Agricultural Entrepreneurship, Economic Development, Food Processing Industry

Role of Agriculture in Economic Development

The agriculture sector is the backbone of an economy which provides the basic ingredients to
mankind and now raw material for industrialization. Agriculture occupies a very important place in the
economic life our country. It is the backbone of our economic system. Agriculture has been the major
source of livelihood in the Indian economy. India is primarily an agricultural country. The fortunes of
the economy are, even now, dependent on the course of agricultural production. The importance of
agriculture in the national economy can be best explained by considering the role of agriculture under the
following heads.
Therefore, the role of agriculture for the development of an economy may be stated as below:
Contribution to National Income
ŠŠ Source of food supply
ŠŠ Pre requisite for raw material
ŠŠ Provisions for surplus
ŠŠ Shift of manpower
ŠŠ Creation of infrastructure
ŠŠ Relief from shortage of capital
ŠŠ Helpful to reduce inequality
ŠŠ Based on democratic notions
ŠŠ Create effective demand
ŠŠ Helpful in phasing out economic depression
ŠŠ Source of foreign exchange for the country
ŠŠ Contribution to capital formation
ŠŠ Employment opportunities for rural people
ŠŠ Improving rural welfare
390 Role of Agricultural Entrepreneurship for Sustainable Economic Development -Special focus on Food Processing Industry

ŠŠ Extension of market for industrial output

Agro-Based Industry
Agro-based industry would mean any activity involved in cultivation, under controlled conditions
of agricultural and horticultural crops, including floriculture and cultivation of vegetables and post-harvest
operation on all fruits and vegetables. The development of agro-industries has assumed crucial importance
in the economic planning and progress of the country.

Definition:
Agro- industrial integration can be defined as “an organic link between agriculture and industries
that uses agricultural raw materials on one hand, and manufactures agricultural in-puts and agriculture
that uses them on the other hand”. (V.Venkaiah, 1985).
Agro based industries may be defined as “Those industries which are engaged in either processing
of products of raw materials or manufacturing them to finished products on the basis of primary and
secondary products o f agriculture and forest” (N. Rangaswamy, 1988).
Characteristics:
Agro based industries are unique because of three characteristics of their raw materials:
1. Seasonality,
2. Perishability and
3. Variability. (James E. Austin)
Seasonality
Agro industries are biological and their supply of raw material is seasonal. It is available at the end
of the harvest or livestock - reproduction cycle. Although raw material supply is usually available only
during one or two brief periods during the year, the demand for the finished product is relatively constant
throughout the year.
Perishability
The raw materials used in agro-industries are biological and raw materials are perishable and quite
fragile. For this reason, agro-industrial products require greater speed for processing and care in handling
and storage, which can also affect the nutritional quality of food products by reducing the damage or
deterioration of quality of raw materials.
Variability
Agro industries have variability in the quantity and quality of raw materials. Quantity is uncertain
because of fluctuations in weather, in soil condition etc. Quality varies because of standardization, of raw
materials remain elusive even though there have been advancement in animal and plant genetics. These
variations exert additional pressure on agro-industrial units in terms operations related to production,
scheduling, and quality.
Types of Agro-Based Industries:
Agricultural products and processed foods, including marine products, have been recognized as
a major thrust area for development as they contribute significantly to foreign exchange earnings and
help the country to reduce the problems of balance of payment. The food processing industry in India
comprises of three groups. The first group consists of primary food processing units mainly rice mill, dal

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Agricultural Entrepreneurship for Sustainable Economic Development -Special focus on Food Processing Industry 391

mill, oil mills etc. The second group consists of unorganized cottage industries including of traditional
food units, processing units of fruits, vegetables and spices. The last group is the organized sector of food
processing units with further division into the following sub sectors
ŠŠ Primary food processing
ŠŠ Fruit and vegetables processing
ŠŠ Dairy and live stock products
ŠŠ Fish and fish products and
ŠŠ Consumer goods industry (processed foods)
Food Processing:
Food processing is the transformation of raw ingredients into food, or of food into other forms.
Food processing typically takes clean, harvested crops or butchered animal products and uses these to
produce attractive, marketable and often long shelf-life food products.
The processed food industry is divided into the following broad segments:
• Primary processed food: which includes products such as fruits and vegetables, packed milk, unbranded
edible oil, milled rice, flour, tea, coffee, pulses, spices, and salt, sold in packed or non-packed forms.
• Value-added processed food: which includes products such as processed fruits and vegetables, juices,
jams, pickles, squashes, processed dairy products (ghee, paneer, cheese, and butter), processed poultry, and
processed marine products, confectionery, chocolates, and alcoholic beverages.
Importance of Food Processing Industries:
Food Processing Industries are given high priority in India because of their great linkages in the
development of many interrelated variables. The significance of food industries lies in the fact that they
create employment opportunities, mobilize investible resources from rural sector, promote agricultural
production, make use of local resources, add value to the farm products, improve quality, achieve efficient
marketing, combat rural-urban migration and promote industrialization in an agricultural economy. The
availability of raw material, changing life style and relaxation in regulatory policies is fuelling the growth
of this sector. Food processing industry is widely recognized as a “Sunrise Industry” in India having huge
potential for uplifting agricultural economy.
The food processing industry has strong backward linkages with rural economy, as all the raw
material is produced by rural people. Hence, any growth in food processing industry, positive or negative
will have a direct impact on economy of rural India. Out of the agro processing sector in rural areas, the
food processing industry is the second most important Industry, in terms of revenue generation. But there
is a huge productivity gap because of the use of traditional technology in production.
It is widely accepted that the food processing sector is the most appropriate sector for creating
jobs for rural poor, and thus reduce the burden on agricultural sector for creation of their livelihood.
This is due to their familiarity with the agricultural sector which would make it easier to train and place
them in food processing enterprises. The multiplier effect of investment in food processing industry on
employment generation is also higher than any other sector. Therefore, for the overall progress of economy
it is important that the farmers and backward communities working in rural food-processing units are
treated at the top of the growth process.

ISBN: 978-93-5300-292-3 Technical Session - IV

392 Role of Agricultural Entrepreneurship for Sustainable Economic Development -Special focus on Food Processing Industry

Overview of Indian Food Processing Industry

India is the largest producer of milk, fruits, pulses, cashew nuts, coconuts and tea in world and
accounts for 10% of the world fruit production. Confederation of Indian Industry has estimated that the
food processing sector has potential of attracting US$ 33 billion (Rs. 1,50,000 Crores) of investment in
next ten years. The Indian domestic food market is expected to grow by nearly 40% of the current market
size to Rs. 12,900 billion by 2015 and Rs. 17,200 billion by 2025
Across the world, food-processing is considered to be a sunrise sector because of its large potential
for growth and socio economic impact. It not only leads to income generation but also helps in reduction of
wastage, value addition, and foreign exchange earnings and enhancing manufacturing competitiveness. In
today’s global market, quality and food safety have become competitive edge for the enterprises producing
foods and providing services. “With proper investment in food processing, technical innovation and
infrastructure for agriculture sector, India could well become the food basket of the world” The existing
level of processing and the extent of value addition are very low as compared to other developing countries.
In India the food processing industry is ranked fifth in terms of production, consumption, export and
expected growth A strong and dynamic food processing sector plays a significant role in diversification of
agricultural activities, improving value addition opportunities and creating surplus for export of agro-food
products Food processing accounts for about 14% of manufacturing GDP, i.e. Rs. 2, 80,000 crore, and
employs about 13 million people directly and 35 million people indirectly. Its employment intensity can
be seen by the fact that for every Rs. 1 million invested, 18 direct jobs and 64 indirect jobs are created in
organized food processing industry only
In India, the food processing industry is highly fragmented and is dominated by the unorganized
sector. A number of players in this industry are small. About 42% of the output comes from the unorganized
sector, 25% from the organized sector and the rest from small players. Though the unorganized segment
varies across categories but approximately 75% of the market is still in this segment. The organized sector
is relatively bigger in the secondary processing segment than the primary processing segment. Increasing
urbanization, consciousness on health and nutrition and changing lifestyle are changing the consumption
habits of India. The number of working women, single students/professionals and nuclear families are
creating demand for processed ready-to-eat foods. Growth of organized retail, which makes the processed
food readily available, is also driving growth of food processing. In rural areas, the food processing industry
is mainly unorganized.
The presence of FDI will definitely act as a boon for the investors, farmers and everyone associated
with food processing sector, but there is a strong need to regulate the modern retail, the laws should be
properly implemented such that small retailers are safeguarded, the traditional retailers should be upgraded
and wholesale markets should be upgraded to serve retailers and farmers better. The policy should work on
the line of “Competitiveness with inclusiveness”.
Employment Generation Capacity
As stated earlier, food processing industry employs 13 million people directly and 35 million people
indirectly and the kind of growth industry is having it is expected that it will create job opportunities for
large part of workforce. The food processing sector is highly unorganized, 82% of the workforce employed
in food processing industry is in unorganized sector, and i.e. out of every 10 person around 8 are employed
by unorganized sector (Table 1).
Table 1: Employment scenario in food processing industry in India

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Role of Agricultural Entrepreneurship for Sustainable Economic Development -Special focus on Food Processing Industry 393

Sector No. of Persons (million) Share (%)

Organized 1.53 18%
Unorganized 7.00 82%
Total 8.53 100
Share of various states in employment in food processing industry
Share of employment
S No. Name of the State
in %
1 Andhra Pradesh 14.1%
2 Assam 4.7%
3 Gujarat 5.9%
4 Haryana 3.3%
5 Karnataka 6.0%
6 Kerala 11.9%
7 Madhya Pradesh 2.3%
8 Maharashtra 7.8%
9 Punjab 7.7%
10 Tamil Nadu 11.2%
11 Uttar Pradesh 12.0%
12 West Bengal 4.8%
13 Others 8.3%
Conclusion:
Agricultural development is a must for the economic development of a country. The paper
endeavors to analyze the food processing industry in its current form in India. It will primarily focus on
contribution related to food processing industry. The paper looks into the agro-based industry, and the
future prospects of the sector, the employment generation capability of industry.
References:
yy Asha (2013), “Emerging sectors of Indian Economy”, Global Journal of Management and Business Studies, Vol.3, No: 5, pp. 491-196.
yy Baisya, R. K. (2004), “Changing Face of Processed Food Industry in India Recent Acquisitions in Indian Food Industry”, Processed Food
Industry, February.
yy Kachru, R.P. (2006), “Agro-processing Industries in India-Growth, Status and prospects”, Indian Council of Agriculture Research, New
Delhi.

ISBN: 978-93-5300-292-3 Technical Session - IV

 Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P
G. Saritha,
Research scholar, Dept. of Economics. A.N.U Campus [email protected]
Abstract: Indian agriculture is passing through a difficult phase as reflected by the decaling growth rate in production
and employment in the agricultural sector since the 1990s. The terms from cultivation are unrewarding. Attributable to
various factors such as escalating input costs, inadequacies in the extension support and institutional credit, exposure to yield
and price risks and low coverage of crop insurance. The farmers are pushed into a distress situation due to recurrent losses
in agriculture and their inability to repay the loans taken for invest and domestic needs. Thus the agrarian economy of the
country is in crisis. The most serious manifestation of agrarian crisis is the phenomenon of farmers committing suicide. There
were more reasons than one for the indebtedness of the deceased farmers. The chief reason for indebtedness was exclusively
related to agriculture. Reasons for farmer suicides, such as monsoon failure, high debt burdens, genetically modified crops,
government policies, public mental health, personal issues and family problems. There are also accusation of states fudging the
data on farmer suicides. The factories like lower yields, rising cost of alleviation, declining prices of sever l crops, widening
disparities between agricultural and non-agricultural sectors, conspicuous expenditure on ceremonies, a mounting debt burden
and dipping incomes of the cultivators are responsible for plunging the small and marginal farmer into crises which have
no other alternative expect driven them to take the extreme steps of suicides. The growth rate of the value of agriculture
output per hectare also showed a declaration in the 90s from 3.52 of eighties to 2.67 percent per annum. The confirmation
of agriculture to NSOP in the state has declined from about 40 percent in the early eighties to 31 percent in 1999-2000.
This downturn in the performance of agriculture in the state may be due to the decline in public investments in irrigation,
rural infrastructure and agricultural research. Investment in public irrigation sources such as canals declined with nineties.
Keywords: Agriculture, credit burden, Agrarian crisis, and Farmers suicides, Farmer’s debts, agrarian distress.

Introduction:
Andhra Pradesh which was the forerunner of neo-liberal reforms vigorously and religiously
implemented by the earlier government, important changes took place in agriculture and increased
exposure of the farmer community to the markets. The crisis manifested itself in an extreme from in
suicides by farmers. Majority of farmers who committed suicide belonged to the relatively younger age
groups, were predominantly male, belonging to the OBC and scheduled caste, and belonged to a new
generation of farmers who took up farming for the first time, Besides changes at the household level
due to policy shifts like increased aspiration for economic and upward social mobility were manifested
in higher expenditure on education and health Daughters of marriage age. Education needs of sons and
health needs emerged as trigger factors suicides. As noted earlier suicides by farmers began to occur in the
state from the eighties when cotton growers of prakasam district committed suicide due to successive crop
failure. The marketing crisis in tobacco trade in the seventies and the continuous drought and pest attack
in the cotton crop in the mid-eighties became trigger points of suicides. There is an interesting debate in
the literature on the role of stress or triggering factors in determining the incidence of suicides. The major
problem in ares where non-food crops are mostly grown Guntur and Ananthapur . Among the inputs
risks the risk of credit turning into debt is very high in all the districts and class of farmers. Different
explanations have been advanced for farmer’s suicides in Andhra Pradesh attributing the spate of farmer’s
suicide to drought seems to be a popular explanation. Another study found that small and marginal
farmers and tenants have almost entirely borrowed from money lenders at exorbitant rates of interest and
rarely borrowed from institutional sources. It argues that the distress of farmers has been compounded by
the virtual with drawal of public support for institutional credit. All these studies have clearly established
the fact that that lack of irrigation, failure of rainfall, non-availability of institutional credit especially to
small and marginal farmers, rising cost of cultivation and lack of minimum support price have resulted in
agrarian distress leading to farmers suicides.
Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P 395

Farmers Suicides In India:

Several studies conducted in India have linked the phenomenon of farmer suicides generally to
agrarian crisis, particularly to crop failure, raising input prices, inferior quality of seeds and pesticides,
private money lending, inter-linkages of product and credit markets and non-remunerative prices. There
is a feeling of insecurity due to crop failure, land alienation and indebtedness. This has resulted in a spate
of farmers’ suicides in different parts of the country.
In 2014, the National crime records Bureau of India reported 5,650 farmer suicides. The highest
number of farmer suicides were recorded in 2004 when 18,241 farmers committed suicide. The farmer’s
suicide rate in India has ranged between 1.4 and 1.8 per 100,000 total population, over a 10-year period
through 2005.
Indian is an agrarian country with around 70% of its people depending directly or indirectly upon
agriculture .Farmers suicides account for 11.2% of all suicides in India. Reasons for farmer suicides, such
as monsoon failure, high debt burdens, government policies, public mental health, personal issues and
family problems.
Need for The Study:
The problem is selected for the study as it is a pressing problem for the farmers of Ananthapur
and Guntur districts. There is also a need to test hunches and general beliefs regarding farmers’ suicides.
This study has great relevance to the theory pertaining to agrarian crisis and farmers suicides in Andhra
Pradesh. The study is needed to fill up some gaps in the knowledge pertaining to the phenomenon. Some
studies have already been conducted in the past on the problem in the district and the findings of these
studies have to test. Findings of the studies pertaining to other areas also need to be examined. In view of
the seriousness of the issue, the selection of the present study is need-based and fully justified.
Objectives:
1. Farmers’ Suicides in Andhra Pradesh with special reference to Anantapur and Guntur Districts.
2. To draw the socio economic profile of the farmers who have committed Suicide;
3. To analyze in depth, the causes for the suicides of the farmers in Anantapur and Guntur Districts.
4. To suggest suitable policy interventions.
Methodology:
The study is based on the both primary and secondary data. Secondary data drawn from the
statistical abstracts of Andhra Pradesh and season and crop reports. The identification of the volume
of the farmers suicide problem in the state is also based on the secondary data, which is compiled from
newspapers and the information gathered by the A.P.Rythusangam. The study are covered Guntur District
in the Costal Andhra region. Ananthapur District in Rayalaseema Region. A purposive random sampling
method was adopted. The farmers, suicides took place highly in two districts I have been selected for the
study based on the high incidence and regional representation of the problem. Later on, I have selected
the suicides cases randomly in two districts based on the newspapers reports. Having selected the cases,
villagers were identified for the interaction. The study is based on primary data collected from the bereaved
families, village panchayat members, small and marginal farmers. Primarily individual meetings with the
deceased families enabled obtaining first-hand information.

ISBN: 978-93-5300-292-3 Technical Session - IV

396 Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P

Review of Literature:
Analyzing the causes of suicides, Revathi (1998) feels that there are some missing issues. Firstly,
she points out that irrigations is an implicit cause for the soaring debts of the farmers. The cotton farmers
of Warangal almost entirely depend on private irrigation. She observes that in the creation of private
irrigation, farmers make heavy investments that lead to accumulation of debts. Secondly, she ascribed
the source of credit as another reason for the farmers’ suicides. She points out that most of the studies
conducted in the district revealed that is either the commission agent or the pesticide dealer network that
finances the credit needs of the farmers.
Muzzaffer assadi (1998) while analyzing the farmers was a new phenomenon in Karnataka, as
mostly the Karnataka farmers highlighted their problems through agitations. He finds that money who
committed suicide grew commercial crops, especially tur dal, chillies, etc. most of them were tenant farmers
who borrowed from local money lenders. Failure of crops for consecutive years and at the sometime,
pressure from the landlords and money lenders led the farmers to commit suicide. While discussing
parthasarathy and shameems analysis of the causes of suicides, revathi (1998) feels that there are some
missing issues. Firstly, she points out that irrigation is an implicit cause for the soaring of the farmers.
Ashish Bose (2000) in his analysis of suicides by Punjab farmers in the cotton belt finds that 85
percent of the farmers are in debt and the causes for indebtedness area 1.Failure of the cotton crops. 2.
High cost of pesticides, 3. Over mechanization of agriculture i.e., the needless purchase of tractors as a
result of demonstration effect.
Aldas Janaiah (2007) In his study of three districts Anantpur, Guntur and Warangal of Andhra
Pradesh found that; rural distress and farmers suicides are the outcome of multiple factors related to the
agrarian economy. Study finds the paradoxical situation of agricultural development that increased the
incidences of farmers suicides in the state. Indebtedness of farmers is found as the main reason for this
distress behavior and policy implemented by the center during the post reforms period further aggravated
the situation. It has been the outcome of the direct linkage of the agriculture sector to the international
market without any safety net. Which leads to uncertainties in farmer’s income? There is a decline in
farm and non-farm employment opportunities and thereby income in the rural parts of the state. But the
consumption expenditure has remained constant or sometimes increased due to an increase in prices of
consumption commodities which is common as increase in rate of inflation. As well as, the cultivation
expenditure has also increased. Farmers borrow money for both the consumption and cultivation
expenditure from the private sources at higher rates of interest.
Hebbar Dr. Ritambhara (2007) conducted a study on farmer’s suicides in two states, Maharashtra
and Karnataka. The situation in both the states was similar to the extent that the areas affected by farmer’s
suicides were dry regions and agriculture was largely rain fed. And also in both states suicides are mostly
among small and middle farmers. There were farmers who had been growing cash crops, which included
cotton sunflower groundnut and sugarcane which had been producing for the market. Due to indebtedness,
farmers were unable to live a life of dignity. They lived from one agricultural season to another in the hope
of a good crop a better price enough to pay the interest cover social and economic expenses.
Bains (2007) in his article examined the suicide by farmers was a serious problem in the Southern
Punjab. The cotton belt in southern Punjab was an agriculturally richer area than the rest of the state
and yet the numbers of farmer’s suicides was more there. The main factors driving farmers to suicide was
indebtedness. It results from two factors, firstly, low yields and thus farmer not getting enough income
to meet his needs and to repay the loan. Secondly, farmers tend to over borrow and use it for purposes

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P 397

other than agriculture. He observed that when the farmer was unable to pay bank or cooperative loans he
resorted to borrow from village moneylenders at exorbitant rate of interest. He recommended that macro
measures for increasing productivity with a special emphasis on small farmers and other aspects for rural
development should go on and farmer’s suicides need to be analyses and dealt with at micro level.
P.Narasimha Rao, K.C. suri ( 2006) in their study found that a large number of farmers who
cultivated cotton, chilies and groundnut committed suicides because the cost of cultivation is very high
when compared to neighbor state .An increasing cash expenditure on modern inputs and decline in
productivity have been steadily taking place over the year and have resulted in a continuous decline in the
net surplus from agriculture activity. Most of the farmers to carry out cultivation without taking loans
from informal sector and suicides of co-farmers not only affected cost of cultivation but also effected
multiple factors like seeds and pesticides non-remunerative price their product, increasing expenditure on
health and education etc.
Muzaffar Assadi (2006) In his paper he analyzed on agrarian crisis in Karnataka. Global capital
brought in new methods to link the autonomous farmers with the larger market. Firstly path of development
increased the disparity between the urban and rural areas. However the disparity has increased. Secondly,
it has not made farmers free from debt rather it has trapped them in debt. In fact the failure of co-operative
institutions made large number of farmers to fall back on private money lenders who charge higher level
of interest. Thirdly, production cost increased rather than the price of agricultural produce. The increase
in the cost of inputs has been against the terms of trade of agriculture.
Farmers Suicides in Andhra Pradesh:
The number of farmers committing suicide was much higher during 1995- 2002, in Andhra
Pradesh it was estimated that more than 3,000 farmers committed suicide. In fact in Andhra Pradesh
the beginning of suicide started during the late 1980s than in 1990s. The Chrisman aid estimated that
in 2004 2,115 farmers killed themselves, which comes to around 4,378 since 1998. There are others who
estimated that between 1997 and 2006 over 9,000 peasants took their lives due to the failure of cotton
crops. There are considerable regional disparities in the agrarian economy of Andhra Pradesh. The early
phase of green revolution in the state was largely confined to resource rich south coastal Andhra, and
bypassed the semi-arid and rain fed areas of Rayalaseema north and south Telangana, and north coastal
Andhra. During the period 1998 and2006, there were 4403 farmers’ suicides in the state. According to a
judicial commission appointed by the state government, between 14may 2004 and 10 November 2005
alone there .were 277 starvation deaths of weavers in the same period 2005. 26 debt ridden farmers of
Guntur district had sold their kidneys. AN AWARE [1998] study covered a sample of 92 households of
farmers who committed suicide, from across 10 districts. The major cause reported by most of the victim’s
is accumulated debt for digging or deepening of the wells. A citizen’s report [CES 1998] Investigated 50
households of deceased farmers in Warangal district of the state. In all the cases the case seems to be failure
of crops due to inadequate water sources. But 72 percent of the households depended on own ground
water. Sources while 28 percent depended on tanks which failed to SUICID provide full protection
because of monsoon failure.
Social Factors as Leads to Suicide of Farmers:
Table: 1. VICTIMS BY METHOD OF SUICIDE
Source: primary data
S. No. Method of suicide Frequency Percent
1 Hanging 1 5

ISBN: 978-93-5300-292-3 Technical Session - IV

398 Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P

S. No. Method of suicide Frequency Percent

2 Pesticide 193 96.5
3 Jumping into well 6 3.0
Total 200 100
Table: 1 explains that the farmers in Anantapur and Guntur districts 96.5 per cent of them had
chosen pesticide to take away their lives. It was only 3 per cent who had chosen to die by jumping into
well. Only one hanged himself. The desperation to die and the frustration in their lives had made them to
resolve to take their lives leaving behind their loved one.
Table: 2-DID ANY ONE COUNSEL HIM
S. No Opinion Frequency Percent
1 Yes 60 30%
2 I don’t know 7 3.5%
3 No 133 66.5%
Total 200 100%
Source: Primary data
Table: 2 The data presented that the reveals that 30 per cent of them said they were advised, while
66. 5 per cent said they were not advised by any one either from among their relatives or in the village.
There was a tiny 3. 5 per cent said they did not know whether were advised or not. The point of inference
here is that the fact that majority of the farmers were not counseled at the hour of their crisis shows the
desperation these farmers were experiencing at that time.
Table: 3 WHAT KIND OF NATURE WAS HIS
S. No Nature Frequency Percent
1 Reserved 5 2.5%
2 Adamant 171 85.5%
3 Introvert 2 1.0%
4 Self-respect 22 11.0%
Total 200 100%
Source: Primary data
Table: The data presented here shows that 85.5 were of Adamant nature. And 11.0 per cent
were reported to be self-respected and 2.5 Present Reserved only 1 per cent of them were reported to be
Introvert. This has significance because it is because of their adamant nature that they could not heed to
the advice of others. The rural males are typically male chauvinistic that they take decisions unilaterally.
Most of the widows do not even know about the debts they had incurred. Being young in years and the
farmers were mostly of not much level of education and their adamant nature.
Table: 4 HOW DOES VICTIM BEHAVE USUALLY?
S. No Response Frequency percent
1 Normal 64 32.0%
2 Abnormal 136 68.0.%
Total 200 100%
Source: Primary data.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P 399

Table: 4 The data presents that Among the victims 32 per cent of them had remained Normal
Usual day. While 68 per cent of them remained Abnormal according to their widows. The abnormal
noticed in the victims may be due to the melancholia set in them due to the decision they had taken to
end their lives that day. They did not give any indication what so ever to any one that they were dying.
Most of them drank pesticide and dropped dead in the fields.
Economic Factors as Leads to Suicide of Farmers:
Based on a study in Anantapur and Guntur district in Andhra Pradesh enlisted major factors such
the level of indebtedness and the percentage of institutional credit,many of them farmers had borrowed
from the Money lenders. These farmers who were mostly simple, docile sensitive easily became emotional
realizing their hapless condition.
Table: 5 ACCUMULATED DEBT OF THE DECEASED FARMERS
S. No Debt Frequency Percent
1 < Rs. l lak 138 69.0%
2 Rs.1-2 lakhs 61 30.5%
3 Rs.2-4 lakhs 1 .5%
Total 200 100%
Source: Primary data
Table : 5 shows that the debts incurred by the farmers were mostly below 1 lakh for most of them
the sense of status loss experienced in the village seemed to have killed their self-pride. The money lenders
subjected them to shame, abuse and heckling for the nonpayment of loans confiscated their livestock,
and it had caused in them a sense of irreparable damage to their pride as a respectable small farmer. These
farmers who were mostly simple, docile sensitive easily became emotional realizing their hapless condition.
Table: 6 FROM WHOM DID HE BORROW
S. No Source of borrowing Frequency Percent
1 Friends 1 .5%
2 Money lenders 172 86.0%
3 Bank 4 2.0%
Relatives 23 11.5%
Total 200 100%
Source: Primary data
Table : 6 The data shows that that many of the farmers had borrowed from the Money lenders
86.0% It was only 2 per cent of farmers , who could borrow from the banks because, beginning with the
era of globalization, the institutional credit shrunk, making the farmers to look to private money lenders
who also purchased the output at lower prices.
Table: 7 MEMBERSHIPS IN FARMERS ASSOCIATION
S. No Membership Frequency Percent
1 No 171 85.5%%
2 Yes 29 14.5%
Total 200 100%
Source: Primary data

ISBN: 978-93-5300-292-3 Technical Session - IV

400 Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P

Table: 7 the data presented that 85.5 per cent were not members of Farmers’ association while it
was found that only 14. 5 per cent were members of Farmers’ Association. Being a member of a group
creates in the mind of the person some secure feeling that he or she is not alone. It fosters solidarity
and togetherness and we feeling among members so much so that they come to share their happiness
and problems and mutually embolden each other enhancing the power of coping the problematic
situations. Had most of the farmers were members of the group they would have been emboldened to
face the challenges in farming forging unity among the farmers to articulate their needs. In the absence of
association these farmers drifted away in alienation and ended their lives in desperation.
Table: 8 Was He Involved in Politics
S. No Response Frequency Percent
1 No 194 97.0%
2 Yes 6 3.0%
Total 200 100%
Source: Primary data
Table: 8 the data shows that 97 per cent were not involved in politics at all while it was found
that only 3 per cent were into politics that too as passive supporters of party. This was examined whether
their involvement at least in a political group made them feel secure against disasters or the political
involvement made them to articulate their crisis to their political circles for support
Table: 9 Did He Victim Leave Any Suicidal Note?
S. No Response Frequency Percent
1 Yes 4 2.0%
2 No 196 98.0%
Total 200 100%
Source: Primary data
Table: 9 presented the data 98.0 per cent of them did exhibit a trait of gazing blank. According to
psychiatrists those in a condition of mental depression do gaze blank at times, a sign of sheer meaninglessness
and helplessness.
Table: 10 Place of Suicide
S. No Place of suicide Frequency Percent
1 Field 181 90.5%
2 isolated place 15 7.5%
3 Home 4 2.0%
Source: Primary data
Table: 10 It can be seen from the table that 90.5 per cent of the respondents had died on the fields,
7.5 per cent chose some isolated place where nobody can see them end their lives and about 2 per cent
of them died in their own house when no one was around. Farmers have a sentimental attachment to the
land and most of them drank pesticide and ended their lives on the fields. The fact that most of them had
died in their fields.
Table: 11 Reasons For Committing Farmer Suicides

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P 401

S. No Cause Frequency Percent

1 Agro-Economic Distress 186 93.0%
2 Psychological Factors 11 5.5%
3 Social Factors 3 1.5%
Source: Primary data
Table: 11 Economic distressing factors like chronic drought and scanty rain fall, lack of and
depleting underground le irrigation water, high cost of cultivation with inadequate returns, crop failures
and low yields, lack of remunerative prices for the farm produce, spurious fertilizers, pesticide s and seeds,
lack of sufficient institutional credit flows. High rates of rents charged by land owners and high interest
rates charged by private money lenders, failure of agricultural relate cooperative banks in lending money
to farmers, Lack of sustainable irrigation facilities, failure of bore wells and unorganized agricultural
market facilities for farmers are observed in the case of 93 per cent of the farmers. Next main cause notices
among 5.5 per cent of respondents was psychological factors that abetted and aggravated the situation to
propel the victims to suicide were found to be loss of self-esteem, ego and pride, feeling of shame, feeling
hurt and insult from the money lenders suffering from alienation characterized by helplessness, isolation
meaninglessness, powerlessness and self-estrange men. The social cause were found to be relatively young
age of the farmers, absence of elders to offer sage counsel, moderate education, relative deprivation felt
while comparing themselves.
Findings of The Study:
ŠŠ It was found that 85.5 per cent were not members of Farmers’ association while it was found that
only 14. 5 per cent were members of Farmers’ Association.
ŠŠ The farmers in Anantapur district 97 per cent of them had chosen pesticide to take away their
lives. It was only 3 per cent who had chosen to die by hanging.
ŠŠ Majority of the farmers about 69 per cent had debts amounting to little less than 1 lakh About
30.5 per cent had debts ranging from 1 to 2 lakhs. Only one farmer had debts exceeding21akhs.
ŠŠ Among the deceased farmers, 86 per cent of them had borrowed from the private money lenders.
It was only 2 per cent of farmers, who could borrow from the banks. Beginning with the era of
globalization, the institutional credit shrunk, making the farmers to rush to the waiting hands of
the private money lenders.
ŠŠ Only 2 per cent of the farmers left suicidal note, while the rest did not leave any suicidal note.
To write a suicidal note precedes the strong will and a decision to die. By writing of the note, the
victim wants to inform their relatives the reason for his sudden death.
ŠŠ It can be seen from the table that 90.5 per cent of the respondents had died on the fields, 7.5 per
cent chose some isolated place where nobody can see them end their lives and about 2 per cent of
them died in their own house when no one was around.
ŠŠ 30 per cent of them said they were advised, while 66. 5 per cent said they were not advised by any
one either from among their relatives or in the village. There was a tiny 3. 5 per cent said they did
not know whether were advised or not.
ŠŠ 85.5 were of Adamant nature. And 11.0 per cent were reported to be self-respected and 2.5 Present
Reserved only 1 per cent of them were reported to be Introvert. This has significance because it is

ISBN: 978-93-5300-292-3 Technical Session - IV

402 Agriculture: Socio Economic Factors as Leads to Farmers Suicides in A.P

because of their adamant nature that they could not heed to the advice of others. The rural males
are typically male chauvinistic that they take decisions unilaterally.
Suggestions:
The state should ensure provision of cheaper credit through institutional sources and regulate the
activities of private moneylenders. The practice of input- credit tie-up should be discouraged
There is a need to regulate the unscrupulous activities of the private traders in the seed market
The advices of the Agricultural officers on only supply side not demand side but the farmers are
needed demand side, because after harvesting of crop farmers could not able to find out demand their
products the nearby market, as a results farmers are not taking following the suggestions for agricultural
officers and they are not providing adequate infrastructure facilities to the farmers.
It is suggested by the victim households that Government should make policy to waive the
outstanding borrowed amount of farmers at the time of failure of crops due to natural calamities. This
would develop the confidence among the farmers. The farmers will not come under depression and tension
due to debt trap.
Conclusion:
Several studies conducted in India have linked the phenomenon of farmer suicides generally to
agrarian crisis, particularly to crop failure, raising input prices, inferior quality of seeds and pesticides,
private money lending, inter-linkages of product and credit markets and non-remunerative prices. There
is a feeling of insecurity due to crop failure, land alienation and indebtedness. farmers in Anantapur and
Guntur districts 96.5 per cent of them had chosen pesticide to take away their lives. It was only 3 per cent
who had chosen to die by jumping into well. Only one hanged himself. The desperation to die and the
frustration in their lives had made them to resolve to take their lives leaving behind their loved one. many
of the farmers had borrowed from the Money lenders 86.0% It was only 2 per cent of farmers , who could
borrow from the banks because, beginning with the era of globalization, the institutional credit shrunk,
making the farmers to look to private money lenders who also purchased the output at lower prices. that
90.5 per cent of the respondents had died on the fields, 7.5 per cent chose some isolated place where
nobody can see them end their lives and about 2 per cent of them died in their own house when no one
was around. Farmers have a sentimental attachment to the land and most of them drank pesticide and
ended their lives on the fields. The fact that most of them had died in their fields.
References:
yy Assadi, Muzaffar (1998), “Farmers’ Suicides; Signs of Distress in Rural Economy”, Economic and Political Weekly, vol.33,No.l3.
yy Bose, Ashish (2000), “From Population to Pests in Punjab- Amercian Boll Worn and Suicides in Cotton Belt,‟ Economic and Political
Weekly, Vol. 35(38), September 1, P. 3375-3378.
yy Dr. Aldas Janaiah (2007)- “Rural Distress and Farmers’ Suicides: Cumulative Effect of Multiple Factors” PP 72-87 Farmers’ Suicide:
Dynamics and Strategies of Prevention / Edited Book- Deep & Deep Publications, New Delhi.
yy Kumar and sharma (2006 )” Analysis of farmers suicides in kerala “Economic political weekly Vol, 41, No.16, pp 1553-1558 April 22.
yy M.R.Lakshiminarayanan(2015) IncreaseNumberofsuicidesbyIndianfarmers: An assessment. Southern Economist Vol 54,No. 4, pp.19-
20.
yy P.Satish(2006) institutional credit, indebtedness and suicides in Punjab,Economic and political weekly, Vol,41, No. 26, p,p 2754-2761
june 30.
yy Ramachandra Gowda and E.A Parameswara Gupta, (2012), “farmer suicides in India.Trends and Issues Recommendations of
NCEUS”. Southern Economist, Vol.51 (4).pp52-55.
yy Revathi, E. (1998), “Fanners’ Suicide: Missing Issues”, Economic and Political Weekly, vol. 33, No. 20, p. 1207.
yy Suri, K C 2006, “Political Economy of Agrarian Distress” Economic and Political Weekly, Vol.LXI, No.52, pp. 1523-29.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

 Rural Women Entrepreneurship in India Problems and Challenges
Dr. Mazharunnisa
Asst.Professor, Dept.of MBA, KBN College, PG Centre, Vijayawada-1,
Abstract: Now days, women are becoming socially and economically empowered through generating their own business.
A woman entrepreneur plays an important role in India to the wake of globalization and economic liberalization.
Women entrepreneurship is very important concepts for development of rural areas. Rural Entrepreneurship can
create new economic opportunities for rural women and contribute to overall growth and leaving from poverty. It also
provides a great opportunity in current time for the development of rural or semi-rural people who migrate to urban
areas. In this field rural woman entrepreneurs cannot be ignored. There is a substantial contribution of women rural
entrepreneurs in the growth of developed rural areas but the development of women entrepreneurship in rural areas is
very low because the rural women’s are face more challenges and problems. The aim of this study is to discuss the problems
regarding women entrepreneurship in rural India. This paper is mostly based on secondary data and some observations.
Key words: Rural Entrepreneurship, Women entrepreneurship, Globalization, Economic liberalization.

Introduction:
Women play a vital role in the growth and development of the economy of the nation. They attain
the success in the entrepreneurial world by facing a lot many problems. There may be various problems
for women to get entered into the world of entrepreneurship. But their ultimate aim is to reach the peak
of success and to be economically sound.
Women entrepreneurs:
Last ten years of Indian economy make it evident that the structure of ownership in the industrial
sector, in agriculture, in the trade and commerce sectors has changed. Many women entered the world of
business, of trade commerce and they have become successful entrepreneurs in various business activities.
However, the rate of participation or rate of their inclusion in the business world is very low, in spite of
its increase during the last ten years. This growth rate of women’s participation in economic activities
is much lower than the expected rate. If we look at the developed countries we see that women are
actively participative in the business and trade activities, including agriculture, without any social or other
restrictions. But in India, there are still many social and cultural restrictions on women. Hence, women
participation in entrepreneurial activities is less than the requirement of the fast growth of India.
Rural women entrepreneurs:
Women entrepreneurship is very important concepts for development of rural areas. Rural
Entrepreneurship can create new economic opportunities for rural women and contribute to overall
growth and leaving from poverty. It also provides a great opportunity in current time for the development
of rural or semi-rural people who migrate to urban areas. This type of target of every rural women
entrepreneur brightens the development of country along with the development of women entrepreneurs.
This is because they neither face gender bias nor the problem of literacy respectively. The participation
of women in the field of economy not only improves the nation and also women. Indian rural women
entrepreneurs become part and parcel of the development of the nation. As rural women is one of the
major human resources and opened to all natural resources. They even assist men in all walks of life along
with agriculture. Henceforth if they take participation in the area of business, they can lower the concept
of „brain and drain within the nation by finding employment in their own rural area. In this field rural
woman entrepreneurs cannot be ignored. There is a substantial contribution of women rural entrepreneurs
in the growth of developed rural areas but the development of women entrepreneurship in rural areas is
very low because the rural women’s are face more challenges and problems.
404 Rural Women Entrepreneurship in India Problems and Challenges

Objectives:
ŠŠ To understand the concept of rural women entrepreneur and entrepreneurship
ŠŠ To focus on the critical issues of women entrepreneurs of rural India
ŠŠ To identify the problems faced by rural women entrepreneur
Methodology:
The present article is purely based on secondary data collected through literature survey. This
paper is mostly based on secondary data and some observations for the identification of these issues the
author has reviewed different research articles and reports.
Problems Faced By Rural Women Entrepreneurs:
As they face innumerable problems. These problems may be social, economical or entrepreneurial
one
1. Gender bias in formal institution:
Every rural entrepreneur faces this kind gender bias which is unable to redress in the social
context. Being one of the social problems, it attacks an entrepreneur as elemental one. In rural areas
women face legal and institutional segregation and discrimination, wherein laws and regulations hinder
women’s ability to become successful entrepreneurs. As India is dominant by patriarchal male culture, it’s
not so easy to come out of the social bindings for rural women. Therefore assisting women to the process
of setting up a business is not enough. It is very essential to give mental support out of gender bias to
succeed is also important.
2. Paradox of Illiteracy results in lack of knowledge and skill.
The problems faced by rural entrepreneurs are overlapped on one another. As literacy ratio of rural
women is low, is directly affects the ratio of women entrepreneurs. They are benighted of new technologies
and its developments. They are completely oblivious towards marketing knowledge. The enigmatic concept
of literacy and skill are intrinsic things for a rural women entrepreneur to set up themselves in marketing
sector. Apart from literacy there exists the problem of being skilled. For a rural Indian woman of poor
economy with various skills faces the problem of financial assistance.
3. Absence of skill and knowledge:
Meanwhile a woman entrepreneur of sound economy may not be skilled. Hence it’s puzzling of
absence of skill and knowledge. Above all there are women entrepreneur from rural areas in whom both
skill and economic assistance should be provided.
4. Lack of financial assistance:
As all problems are enchained with one another, the problem of financial support cannot not
detach from the chain of problems. It is the underlying problem for a woman to establish an enterprise; as
a result she steps back or makes a blind eye to become a successful entrepreneur. It is true that women have
lesser opportunities and ample of financial problems to be equipped. This is only because of insufficiency
of tangible security and credit in the market. Along with these they are heedless about the process of
receiving finance in banks.
5. Imbalance between family and profession:
The Indian tradition, in which the society and women itself considers that, a women is always
catted and fished” after her marital life. It’s absolutely true. But at the same time it binds women’s freedom

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Rural Women Entrepreneurship in India Problems and Challenges 405

within the context of family. Besides these, a woman plays the role of mother and wives. These all marital
bindings of rural women within the rigid traditional rural area compel a woman to be in the same boat
and to enjoy within the margin of family.
Challenges:
The conclusion of this paper expose that lack of balance between family and career obligations
of women, lack of direct ownership of the property, poor degree of financial freedom for rural women,
the absenteeism of entrepreneurial skills and finance in economically rich and poor women, negligence
by financial institutions, lack of self-confidence, lack of confident schedule of life, lack of education, no
awareness about capacities, low risk bearing ability, lack of self-confidence, problems of work with male
workers, flexibility limitations and lack of contact with successful women rural entrepreneurs are major
challenges.
Conclusion:
Women in India live protected lives. A woman is taught to depend on the male members
of her family from birth. She is not allowed to take any type of risk even if she is willing to take it
and has ability to bear it as well. However, this is not entirely true because many great women proved
that they have risk bearing capacities and attitude to take risks in entrepreneurial activities. They have
become aware of their rights and potential situations and therefore entered different fields of businesses
However; most of the women are not performing entrepreneurial activities because they are not having
the proper capacities. Therefore, we should try to make them aware of their risk bearing capacities.
References
yy Vijay Kumbhar, Some Critical Issues of Women Entrepreneurship in Rural India, EUROPEAN ACADEMIC RESEARCH, VOL. I,
ISSUE 2/ MAY 2013.
yy Anitha D.Pharm, Dr. R.Sritharan, Problems Being Faced By Women Entrepreneurs in Rural Areas, The International Journal Of
Engineering And Science (Ijes) Volume2, Issue 3, Pages 52-55, 2013.
yy Sujata Kumari, Vandana Kaushik and Neeta Lodha, Problems Faced by Rural Women Entrepreneurs of Rajasthan, Stud Home Comm
Sci,
yy Sreenivas Rao Behara, K.Niranjan, Rural Women Entrepreneurship in India, IJCEM International Journal of Computational
Engineering & Management, Vol. 15 Issue 6, November 2012.
yy Jyoti Bahl, Status of women entrepreneurship in rural India, Asian Journal of Multidimensional Research Vol.1 Issue 2, July 2012.
yy Kishor N. Choudhary, Dr. Arvind P.Rayalwar, Opportunities and Challenges for Rural women Entrepreneurship in India, Variorum
Multi- Disciplinary e-Research Journal Vol.-01, Issue-III, February 2011.
yy Sathiabama. K, Rural Women Empowerment and Entrepreneurship Development, eSS Student papers Sathiabama/Women
Empowerment April 2010.

ISBN: 978-93-5300-292-3 Technical Session - IV

Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable
Development in India
* Mr. B. Sudheer Kumar, ** Dr. V. Mallikarjuna, ***Dr. N. Kumara Swamy,
*Research Scholar at VTU Belgaum,
**Professor, Dept of MBA, Sri Sai Institute of IT and Management, Kadapa, A.P,
***Professor in Civil department, Vasireddy Venkatadri Institute of Technology, Guntur, A.P,
Abstract: In recent decades we can see around the business that the things are changing like never before due to
technological advancement, change in economy and political influences. It has been also observed in two decades that there
is a major shift in consumers taste and preferences. The companies who are continuous monitoring and focusing on these
issues are much more successful than the rest. There is a cut throat competition in the market and every company wants
to fill the vacuum of the market by providing desired product and services to the consumers. In current market scenario,
the studies show that consumers are now health and environment conscious. Perhaps this is the reason, that the concept of
green product and green marketing are taking place slowly and steadily in the market. It can be also as an opportunity for
those companies, who believe in innovation and redesigning their products and services in ecological manner. It is a perfect
time for those entrepreneurs who want to come and be a part of this emerging green market. The purpose of this paper is to
aim in general to understand the opportunities for green entrepreneurs in the changing scenario of market shift. The study
is based on available literature, various facts and figures, on this issue. It tries to bring a novel study which can be applied
in current market scenario. The study is conceptual in nature and validates its findings with the help of a proposed model.
Key words: Green market; Consumer behavior; Environment; Green entrepreneurs; Opportunities; Sustainable
development

Introduction
Change is a very common phenomenon which can be seen anywhere whether it is business,
economics or anything. It occurs some times in cyclic way or may be in a random order. In the same way,
when we take a look towards consumers, we find that their needs, wants, demands, test and preferences
are also changing. This change is not specific to a particular product category but it is in every product
segment. There may be several reasons for that such as increasing consumer household income, change
in life style and increasing consumer awareness etc. Among these changes market also need to adopt
some changes for its survival and for that there is a need of new product development concept, product
redesign, process design, changes in marketing policies etc. A successful business organization always
focuses on these changes and implements it into its operations within time. Changing consumer behavior
in the market generates a new market which may be seen as a challenge and opportunity both by many
organizations. Those organizations that are capable enough to adopt changes and can fulfill the desire of
their customers, they take it as an opportunity but there are several organizations who failed to adopt these
changes many times. In recent scenario it has been seen that the consumer behavior is taking a shift towards
the eco-friendly product which is also called green product. The significant reason behind this change is
increasing pressure on human’s planet inform of various pollutions and certain other issues caused by these
pollutions. Therefore consumer, Government and business organizations are taking this issue seriously
around the world. Government is making strict norms and regulations to forbid the problem arises by
business organizations, consumers and other sources. Wherein increasing consumer awareness towards
environment change their consumption and buying pattern of products. On the other hand business
organizations are also finding fruitful results in adopting green practices in their business operations.
Among all these development certain concepts are coming in the field of management such as green
marketing, green supply chain management, reverse logistics, waste management etc. which not only
fulfills the needs of the consumers but also give assurance about the green and clean environment. Every
individual want to keep the environment green and clean because they are aware about the consequences,
Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India 407

and due to that they seek green products in the market many times. The concept of green marketing came
into existence way back in 1980’s in United States and European country and the development goes on.
Green marketing concept is gaining its popularity across the world as environment is an international issue
now days. Green marketing helps in reducing the impact of environmental consequences with the help of
fulfilling the demand of the consumer’s green need and also creates the demand for the green product. It
is also one of the facts that changing consumer’s perception towards green products leads to the genesis of
green market. Green marketing concept not only fulfills the needs of the consumer but it also participates
in the sustainable development in long run. Due to the increasing growth and development of the green
market, there are various opportunities are also coming for entrepreneurs around the world. Innovations
and new product development are among the important ingredients of the entrepreneurship and can be
seen in the green marketing concept. An entrepreneur always focuses on innovative ideas and brings the
change in the society and market with the help of their enterprise. Providing safeguard to the environment
is a nobel work for the society and the humanity and a good entrepreneur take care of this entire task as
he is also responsible for social welfare. We can see around us, many entrepreneurs those who change the
concept of businesses in their own way and provided solution for various problems in the society. Change
in consumer buying pattern on the basis of eco-friendly or green product there is a space creation for the
green entrepreneurship. Green entrepreneurship innovates, substitutes the traditional or conventional
products into the green products and taps the green market. Creation of the green market is a kind of an
opportunity for these green entrepreneurs as it is an emerging market and not penetrated enough. These
green entrepreneurs are also called enviropreneurs as they build their business which is favorable to the
environment and society. The concept of green entrepreneurs is not only helping consumer in getting
their green products and services but also make people learn towards greening ecosystem. But green
entrepreneurs also face challenges such as lack of substitution of the conventional products, cost controlling,
redesigning, raw material and lack of R&D infrastructure etc. These challenges can be reduced in further
development. On the other hand it is also true that successful green entrepreneurs create changes in the
society in form of providing a good natural environment. Various developed and developing countries are
now started adopting green practices such as green marketing, green supply chain and waste management
which is a favorable atmosphere for such green entrepreneurs. The nurturing of green entrepreneurs also
encourages young graduates to come and be a part of this emerging opportunity. Green entrepreneurs can
make profit through the market as well as social recognition in the society. Therefore we can say it is not
all about business only but somewhat it is a kind of social activity in terms of providing a safeguard to our
natural environment. The paper is trying to focus on how emerging green markets is an opportunity for
green entrepreneur and sustainable development in India. The paper is segmented in various parts such as
theoretical background of the study i.e. literature review, identification of various parameters on the basis
of the literature review, methodology, development of the conceptual model, discussion and findings,
managerial implication, conclusion, contribution of the study, limitations and future research scope.
Literature Review Environmental issues
The top ten environmental issues facing our planet is population, climate change, loss of biodiversity,
the phosphorus and nitrogen cycle, water, pollution, ozone layer depletion, ocean acidification, over
fishing and deforestation (Planet earth herald). Rapid development in the economy which is always works
like an indicator of a successful development of a nation is among the major cause of environmental loss
[15]. Development of a nation is mainly dependent upon the successful industrial output [16]. But many
times the environment gets ruin in the development war by the nations [17]. The increasing pressure on
our green planet is continuous going on and human have also started to experience the consequences of
the environment in form of various havoc [18]. Issues like global warming, climate change are the part
ISBN: 978-93-5300-292-3 Technical Session - IV
408 Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India

of every news now days. Excessive use of natural resources and dependency on non-renewable energy
are the major challenges in front of the human kind [19]. Government and various other agencies are
continuously working to provide a better shield to the natural environment and endeavors are going on
at international level and on the other hand, sustainable development is key agenda of the Government
as it saves our natural resources for meeting the present and future needs [20]. Various committees,
NGO’s and teams have been formed to control the consequences of the environment and also showing
positive results [21]. It is the matter of fact majority of the censure goes to the industries but they are
not the only responsible for the creation of environmental problems [7]. Human consumption pattern
is also very much responsible in harming the environment as consumption leads to the direct creation of
environmental pressure from the use of various products and services as in case of a through car driving
burns fossil fuel which is limited resource on the earth. The changing income level, life style pattern
and their responsiveness towards environment affects our natural ecosystem [2]. Studies also show that
awareness and education gives positive approach towards the environment. Environmental issues are one
of the major ingredient of many research work as it is directly associated to the existence of human and
its planet [22]. It is also true that environmental consequences can be controlled by changing certain
consumption behavior of mankind in long term.
Changing consumer behavior towards green products
Change is a very natural phenomenon of nature and same is applicable for the human. Change
in consumer behavior has many reasons such as change in income, life-style and many more [2] but it is
also seen that there are certain changes take place in consumer buying attitudes which is based on their
knowledge, awareness and education Environmental knowledge also changes the mind of the consumer
which can be observed in their purchase intentions towards green products or ecological products [3].
Changing consumer behavior towards green products leads to the increasing demand of it and develops an
arena for the green market [23]. Demographic criteria are less significant than the psychographic criteria in
case of green consumer purchase behavior [24]. The study also reveals that the demand for green product
can be understood as the consumer has the willingness to pay for the high priced product or premium
price for it [8]. Environmental concern started in way back 1970 and its importance is increasingly in
today’s Cenozoic era in context to the sustainability [25]. Green perceived value would positively affect
the green trust and green purchase intention, while green perceived risk negatively affect both of them and
expectation of green product is often hurt by the perception that these product are low value and failed
to fulfill their environmental claims [26]. The problem is generally known as consumer skepticism, which
need proper attention in order to eliminate it [9]. There is need of more promising reliable companies
those who can make reliable promises related to the green product. As the demand of the environmentally
responsible product is increasing and need to remain competitive, has provoked many managers seeking
information related to the responsible purchase behavior [27]. There are some adverse findings also which
discourages the green marketers also such as consumers environmental concern is not reflected in their
purchase behavior ,There may be various causes for it as lack of marketing strategies etc. [9].
Green marketing concepts and philosophies
Green marketing concept evolve in 1960 when US and Europe has realized the environmental
burden and formed agencies like environmental protection agency(EPA) with the objective of becoming
green and clean. The ecological pressure was also realized by the business houses and they started greening
business. The development goes on and till 1990 it took a proper shape [7]. The American marketing
association (AMA) conducted the first workshop on ‘ecological marketing’ in 1975. The proceeding of
the workshop converted in the form of a book on green marketing entitled “ecological marketing” [28].
It was the evolution phase of green marketing in the field of academia [29]. Green marketing has various
Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship
Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India 409

synonyms such as ‘ecological marketing’; ‘sustainable marketing’ and ‘environmental marketing’ [30].
The development of the green marketing is taking place rapidly now days as every organization want to
enjoy the competitive advantage and it works [31]. Green marketing not only helps in organizational
competitive advantage but also responsible for organizational performance in many cases Organizations
are adopting green marketing strategies due to assertive and defensive ways. Young and educated generation
is taking very much interest in green products but there are still some obstacles such as substitution of
the raw material, process redesign, cost etc. [8]. On the other hand various organizations are working
on the reduction of the cost of green product with the help of reverse logistics and green supply chain
management so that they can make the product more affordable for the maximum market segment [32].
Automobiles are one of the highest pollutant product segments and therefore green marketing is also
taken a better shape around the world and companies like Nissan, GM, Ford, Daimler Chrysler etc. and
other car manufacturers are working aggressively in this area. Studies claim that the Green marketing is
future of the marketing management [33]. There are various important elements of green marketing,
which can be seen in the Table 1.
Genesis and attributes of green entrepreneurs
The work on the phenomena of environment entrepreneurship had begun in the late 1970 and till
1990 it got the attention. According to the study were the pioneers in the field and began to employ the
term ‘environmental entrepreneurs’, ‘green entrepreneurs’, ‘eco-entrepreneurs’ and also derivate as ‘eco-
preneurs’ [29]. The term ‘green entrepreneurs’ was coined by Terry Clark from Goizueta Business School,
Emory University [11]. The term green entrepreneurs are a combination of two word i.e. environment
and entrepreneurship. Green entrepreneurs are the formulation and implementation of environmental
advantage, corporate strategies and creating revenue. An entrepreneur is someone who produces for
the market and he is determined and creative leader always looking for opportunities to improve and
expand his business and one of the best innovators. In the same way enviropreneurs are also innovating
and participating in the process of sustainable development. Sustainability is the main stream of the
business strategy; hence entrepreneurs are the important chain for holding the responsibility towards
sustainable society [34,35]. Sustainable entrepreneurs aim to introduce environmentally and socially
friendly innovations to a large group of stakeholders [36]. Sustainable entrepreneurship gained force in
recent years as a global movement that aims to promote business to pay close consideration to their
social and environment [37]. Enviropreneurs are important to the economic development as they are
the significant contributors in providing the job and also treated as the driving force towards the change,
they also get appreciated for introducing the innovation, adopting and developing new thoughts and
responsive towards change in rapid, flexible and efficient than the larger organizations [38]. The nexus
of environmental, economic and social objectives creates enviropreneurial strategies which leads to active
entrepreneurship and innovation to solve green problems while boosting competition and benefiting
society. Enviropreneurial business process and marketing also leads to competitive advantage of the firm
[11]. A study reveals three key sociological constructs in green business i.e. personal motivation and
mission; locality and a forward thinking which leads to sustainability for long run [38]. On the basis of
this study about green entrepreneurs a figure has been developed which is showing the composition of it.
It can be seen in Figure 1.

ISBN: 978-93-5300-292-3 Technical Session - IV

 410 Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India

Figure 1: Composition of Enviropreneurs or green entrepreneurs.

Indian market scenario for entrepreneurs

There is a good hope from the new Government in India in the development of entrepreneurship.
Finance Minister of India has released the budget of 2014-15 and gave focus to the entrepreneurship
as for creating a conducive eco-system for the venture capital in MSME’s (Micro, Small and medium
enterprises) sector Rs.10,000 crore fund to act a catalyst to attract private capital by way of providing
equity, quasi equity, soft loans and other risk capital for start-up companies and he also announced a
national wide incubation and accelerator program, entrepreneurial friendly legal bankruptcy frame work.

S. No. Elements Descriptions Authors

(Polonsky et al., [8]); (Saxena

and Khandelwal [3]);
Those products which are presumed environmentally
(Chen-Lin et al.,); (Kaur et al.,
1. Green product safe called green product. It includes redesign and
[6]); (Lampe and Gazda [7] );
new product development process.
(Gleim, [9]); (Ilker,); (Singh et
al., [14]).
Eco-labels are the logo or mark on the product which
2. Eco-labels Thogersen et al.
assures or helps in identifying the green product.
Green price is also called premium price which is
Polonsky et al. [8] Gleim et al.
3. Green price charged by the green customers that may be extra
[9],
charge for the green product.

Green supply chain management starts from the

Green supply chain (Chen-Lin et al., [6]); Chang,
4. procurement of raw material and till disposal of the
management(GSCM) et al.[26]).
product in a greener manner.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

 Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India 411

Reverse logistic is one of the sub elements of GSCM,

(Polonsky [8]); (Chen [26]);
5 Reverse logistics which takes the used product from the customers and
Hazen et al.
send it to the manufacturers again for recycling.
Communicating about the green product to the
6. Green promotion (Polonsky [8].
customer.

7. Green positioning Positioning the green customer segment in long run. Polonsky [8].

Table 1: Key elements of the green marketing

S.No. Ingredients Description Authors

(Planet earth herald); (Skaza et

The world is facing crucial time for our natural al., [15]); (Gelb[16]); (Lakshmana
environment as it is blighting, which can be et al., [17]); (Galli et al., [18]);
1. Environmental issues experienced by every individuals in form of various (Ashley et al.,[19]); (Yarong et al.,
problems like pollutions, global warming, climate [20]); (Jia-nan, [21]); (Christensen
change etc. et al.,[2]); (Straughan et al.,[4]);
(Sherbinin [22]).

Due to the problem arising in our natural (Straugh [4]); (Christensen [2]);
environment, people are aware and changing their (Saxena et al., [3]); (Lin et al. [5])
2. Consumer behavior
consumption behavior and seeking product and (Polonsky et al., [8]);(Chen[6]);
services which are eco-friendly. (Gleim et al., [9]).

(Chen et al., [6]); (Polonsky et al.,

Green marketing is a result of development in
[8]); (Saxena et al., [3]); (Gleimet.
3. Green marketing changing consumer behavior pattern towards green
al., [9]) (Singh et al., [14]); (Lampe
products. It profits to both consumer and marketers.
et al., [7] 1995); (Henion [28]).

(Menon and Menon [11]); (Keskin

An entrepreneur, who develops green business with et al., [10]); (Shepherdal., [13]);
4. Green entrepreneurs
the help of adopting green practices. (Dean et al., [35]); (Allen et al.,
[38]).

Indian market is suitable for entrepreneurs than

Favorable market
5. ever before as change in Government policies for (Sabharwa et al., [40]).
condition
the entrepreneurs.

Table 2: Significant ingredients supporting the study

Indian clean energy sector is a $US20 billion opportunity. It has the potential to generate 10 mn
jobs in India by 2025 and is witnessing the emergence of energy entrepreneurs, who are all set to write new
codes in the energy domain [40]. In recent news, Union Bank cuts interest rates in MSME’s loans [41]. On
the other hand it is also one of the facts that India has the power of young and educated graduates who are
ISBN: 978-93-5300-292-3 Technical Session - IV
412 Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India

vibrant and full of enthusiasm and ready to accept the opportunities of entrepreneurship. The Government
is continuous providing better inputs for the business opportunities, which helps these entrepreneurs. The
current market condition is favourable for entrepreneurs in country like India. Several agencies are formed
for the development of the prospective entrepreneurs which creates a suitable environment.
Indian economy is growing rapidly, and investors from abroad are also keen to invest in Indian
market which proofs India is a better place to invest. Government is also focusing on development of
better norms for FDI (Foreign direct investment), for attracting investors from abroad. On the basis of the
above literature review a table has been formed which identifies the important ingredients for this study
and also gives a brief introduction. It can be seen in the Table 2.
Methodology
The paper is based on exploratory research and conceptual in nature. The study has been done on
the basis of extensive literature review. All the relevant findings of the research papers has been tabulated and
summarized which can be seen in the Table 2 which further helps in developing a conceptual framework
of the study.
Development of Conceptual Model
On the basis of the study of literature and identification of various significant ingredients Table 2,
a conceptual model has been proposed. Figure 2 represent the conceptual model of the study.

Figure 2: A conceptual model showing nexus among environmental issues, emerging green market, green entrepreneurs
and sustainable development.
Discussion and findings
The conceptual framework shows in Figure 1 that the concept of green entrepreneurs starts
from the environmental concerns such as pollutions, global warming, climate change, scarcity of natural
resources and other havoc caused by disturbance in the ecosystem. Due to increasing awareness may
be with the help of environmental knowledge and education people are becoming more responsive
Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship
Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India 413

towards the environment. These factors are also responsible for the changing consumer behavior towards
green product or eco-friendly product. The perception towards green product gives a positive impact
on the development of the green market. Green market is an emerging market, which brings ample of
opportunities in every field such as greening supply chain, green production, green design and many
more. The current market scenario has various opportunities for the entrepreneurs as well as for green
entrepreneurs. These opportunities can be also helpful for bringing motivation and empowerment to the
green entrepreneurs. The successful green entrepreneurs lead to the sustainable development in long term.
Findings:
Study based on the literature survey and conceptual model shows the following major findings of
the study:
There is a bright opportunities for the green entrepreneurs as the green market is expanding and
consumer behavior is favorable towards green market.
India is going to be one of the best destinations in the world for the investment point of view.
The study found that there is a conceptual link among environmental concern, emerging green
market, green entrepreneurs and sustainable development.
Research Implications
The study findings and discussion of the study would be beneficial for the academicians, research
scholars, practitioners, managers and policy makers. The study would be benefited for the academicians
and research scholars, as this study gives further insights in this field and there are less numbers of works
are available especially in Indian context. Managers and practitioners can understand the opportunities
which are emerging in the field of green marketing and there is need of much more focus on it. As it will
be profitable and can be significant for sustainable development. Finally the policy makers must more
concern on this issue by creating a suitable environment for the green entrepreneurs program.
Conclusion and Recommendation
On the basis of various explanations in this paper we can understand various opportunities for
the green entrepreneurs due to emergence of green market. Changing consumer behavior towards green
market is another significant and positive indicator for the green entrepreneurs. Green entrepreneurs or
enviropreneurs are not only important just for the fulfilling the need of consumers but they mean more
than it. Green entrepreneurs have the responsibility towards achievements of social objectives, economic
objectives, environmental objective and sustainable objectives. Green entrepreneurs are the warriors who
continuously work, in order to protect the nation from all the evils such as poverty, unemployment
and pollution etc. If we think of the traditional entrepreneurs they have also big responsibility on their
shoulders but green entrepreneurs have some more responsibility that is adoption of green practices and
other environmental tasks. India is a country of young people. Our majority of the youth are getting good
education and thousands of young generations are getting graduate each year. This means that India has
great potential towards green entrepreneurship. In India most of the entrepreneurs are young and their
concept of business is unique and somewhere they implement the practical aspects of their education in
their businesses and getting a great success. The concept of green entrepreneurs is not different, the one
who more innovate green product or services more he become a successful green entrepreneurs. Although
it is difficult to innovate green products many times as it is difficult to provide substitutes for various raw
materials, this is a kind of challenge which a green entrepreneur can handle. There are several examples
of green entrepreneurs who are continuously involved in the green businesses. Following is the list of few

ISBN: 978-93-5300-292-3 Technical Session - IV

 414 Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India

green entrepreneurs who are engaged in green business or green marketing. The information has been
taken from the article published on yourstory.com and India today.in and further tabulated in Table 3.
Name of the Name of the
S. No. Description of business
enviropreneurs organization
Supriya Nikumbh and Engaged in vertical gardening on walls of the
1. Green drops India
Bhairavi Shevade buildings.
Danteshwari herbal Engaged in organic farming and won the “Earth
2. RajaramTripathi
products hero” award from Royal bank of Scotland
Making nest for birds made of clay, which can be
3. DamjiPrajapati __
fixed. Got many projects from real estate sectors.

4. Mini MINC retail store Eco-friendly fashion store

Production of renewable energy and organic manure

5. AnupamJalote Green oil
from the wate material
Pallavi Agarwal and Prachi Manufacturing of toys without use of plastic and
6. Chalk and Chukles
Agarwal chemical based paints.

7. Dhivik Reddy Go GreenBOV Electric bikes

8. T.S.Sankker Biotec Bags Biodegradable plastic bags

9. Surendranath Uravu, Kerala Making of houses and handicrafts of bamboo.

10. Jos Raphael Mazhapolima Techniques of water harvesting

11. Sunil Mehta The tree house resort Providing natural habitat to exotic birds

Mansukhlal Mitti cool clay

12. Fridge made of clay
RaghavjibhaiPrajapati products
Preethi Sukumaran and Krya consumer
13 Chemical free detergent etc.
Sriniwas products
Table 3: List of few Indian entrepreneurs and their green business
List of few Indian entrepreneurs and their green business
Change in purchase intentions or behavior has given space for these green entrepreneurs and the
concept is welcomed by many customers and they are also gaining money and fame for the economic and
social cause. But it can be observed that still there are less numbers of green entrepreneurs in the country,
which can be increased with the help of change in Government policies and support, such as tax exemption,
infrastructural facilities, training programs and other motivational schemes for green entrepreneurs. Finally
it can be said that, Government of India is also suitable for the entrepreneurs and change in consumer
behavior towards green market has created a better opportunity for these entrepreneurs. The new policies
regarding “Make in India” will be promising the entrepreneurs in Indian scenario. Make in India and
make it green will double the interest of the investors and Government.
Contribution of the Study
Before planning this paper we have reviewed various research papers in reputed journals but none
of the study was completely based on such kind of issue even though in Indian scenario, and which shows
Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship
Emerging Green Market as an Opportunity for Green Entrepreneurs and Sustainable Development in India 415

a research gap between consumer behavior and green entrepreneurs. Therefore in order to bridge the gap
this study has been propounded on this issue and would surely help in this discipline.
Limitations and Further Research
Every study has their own limitations same as in this study. There is lack of good studies which is
relevant to this paper especially in context to consumer behavior, green marketing and the entrepreneurs.
This paper can be a base for further research and one can make an empirical research paper by using the
concept and various identified parameters of this study. Although the concept is not very new but needs
proper attention by researcher as the issue is very important for our economy and environment both.
There are still many things may be left in this paper which can be added in the further research work.
References
yy Zarnowitz V Moore GH (1986) Major changes in cyclical behavior, UMI:519-582.
yy Christensen P (1997) Different lifestyles and their impact on the environment. Sustainable development5:30-35.
yy Saxena RP, Khandelwal PK (2008) Consumer attitudes towards green marketing on exploratory study.
UniversityofWollongongResearchOnline1-31
yy Straughan R, Roberts J (1999) Environmental segmentation alternatives: a look at green consumer behavior in the new millennium.
Journal of consumer marketing 16: 558-575.
yy Chen YS, Lin CL, Chang CH (2013) The influence of green wash on green word-of-mouth (green                  WOM): the mediation
effects of green perceived quality and green satisfaction. Quality & Quantity 48:2411-2425.
yy Pavleen K, Raghbir S (2006) Children in family purchase decision making in India and the West: A review, Academy of Marketing
Science Review.
yy Lampe M, Gazda GM (1995) Green marketing in Europe and the United States : An  Evolving Business and Society Interface.
International Business Review 4: 295-312.
yy Polonsky MJ, Rosenberger PJ (2001) Reevaluating Green Marketing: A strategic approach. Business Horizon 21-30.
yy Gleim MR (2013) Against the Green: A Multi-method Examination of the Barriers to Green Consumption. Journal of Retailing 89:
44-61
yy Keskin D, Diehl JC, Molenaar N (2013) Innovation process of new ventures driven by sustainability. Journal of Cleaner Production
45: 50-60.
yy Menon A, Menon A (1997) Enviropreneurial Marketing Strategy: The Emergence of Corporate Environmentalism as Market Strategy.
Journal of Marketing 61: 51-67.
yy Green warriors: Entrepreneurs and Innovators inspire change with eco-friendly business ideas, India today (n.d)
yy Shepherd A, Patzelt H (2011) The new field of sustainable entrepreneurship: studying entrepreneurial action Linking? What is to be
sustained? With? What is to be developed? Entrepreneurs Theory and Practices35: 137-163.
yy Singh PB, Pandey KK (2012) Green Marketing: Policies and Practices for sustainable development. Integral Review- A Journal of
Management 5: 22-30
yy Skaza J, Blais B (2013) The Relationship between Economic Growth and Environmental Degradation: exploring Models and
Questioning the Existence of an Environmental Kuznets Curve. working paper series, The central for global and regional economic
studies at Bryant University, Usa.
yy Gelb A (2010) Confronting Old and New Challenges organized by the Central Bank of Algeria and the   IMF Institute in Algiers.
retrieved from https://www.imf.org/external/np/seminars/eng/2010/afrfin/
yy Lakshmana CM (2013) Population, development, and environment in India. Chinese Journal of Population Resources and Environment
11:367-374.
yy Galli A, Wiedmannb T, Ercinc E, Knoblauchd D,Ewinge B, et al. (2012) Integrating Ecological, Carbon and Water footprint into a
“Footprint Family” of indicators: Definition and role in tracking human  pressure on the planet. Ecological Indicators 16:100-112
yy Ashley M Bookman J ( 2009) Forms of Energy, earth day network every day for everybody, Washington DC 1-22
yy Yaronga Z,Xin Y (2011) Research on the sustainable development and the objective of Chinese Government performance audit. Energy
Procedia5:1230-1236
yy Jia-nan C (2012) Contributions of Environmental NGO to Environmental Education in China. IERI Procedia2: 901-906
yy Sherbinin AD, Carr D, Cassels S, Jiang L (2009) Population and environment. Annual Review Environment Resource 32: 345-373.
yy Lin RJ, Tan KH, Geng Y (2013) Market demand, green product innovation, and firm performance:evidence from Vietnam motorcycle
industry. Journal of Cleaner Production40:101-107.

ISBN: 978-93-5300-292-3 Technical Session - IV

 Agricultural Entrepreneurship
* Ch. Rajasekhar, P. Chinnari
Associate Professor, [email protected],V S Lakshmi Engineering College for Women,Kakinada
,MBA Student,[email protected],V S Lakshmi Engineering College for Women,Kakinada
Introduction
Although Indian Agriculture has come a long way, there are certain implications that have to be
addressed for national and nutritional security. Our population is expected to be 1.4 billion by 2020. The
increasing population, coupled with growing income will generate increased demand for food grains and
non-food grain crops. Therefore, Indian agriculture has to achieve a higher growth rate targeted at 4 per
cent per annum on sustainable basis. Acceleration of growth of this sector will not only push the overall
GDP growth upwards, it would also make the growth more inclusive. Since increase in net sown area
has flattened out, further increase in agriculture production needs to come through an increase in gross
cropped area (multiple cropping), coverage of area under irrigation and improvement in the productivity
levels. Agriculture sector needs well-functioning markets to drive growth, employment and economic
prosperity in rural areas of the country. To provide dynamism and efficiency into the marketing system,
large investments are required for the development of post-harvest and cold chain infrastructure nearer to
the farmers’ fields.
Agricultural Entrepreneurship
To start, there is no fixed definition of entrepreneurship; a wide diversity of definitions can be
found. In daily language, the term “entrepreneur” is often interchangeably used with business owner,
starter, someone who is self-employed, sole-trader, or farmer, thereby confusing status (a position in
society) with role (behaviour in a particular position) McClelland (1967). Agricultural literature is in
this perspective not helpful since it provides a multitude of operational definitions of the agricultural
entrepreneur. Definitions about entrepreneurship are fuelled by disciplinary inheritance, for instance,
building further on the classic economist Schumpeter (1934), or departing from the personal psychologist
McClelland (1967).
Many attempts have been made to establish some clarity in this semantic confusion in order to
provide the field of entrepreneurship its own distinct signature. Definitions of entrepreneurship have moved
from a focus on individual traits (e.g., local of control, need for achievement), toward entrepreneurial
behaviour (e.g., entrepreneurial orientation), cognitions (e.g., decision making) and social capital (e.g.,
networks). Over the last decade, there has been a growing consensus that a fundamental, distinctive
feature of entrepreneurship is the identification, evaluation, and pursuit of business opportunities (Shane
and Venkataraman 2000). Entrepreneurial opportunities differ from normal possibilities to optimize
the efficiency of existing products in the sense that the former involves new means-ends relationships
(Shane and Venkataraman 2000). It means that the obtainment of a larger milk quota or the acquisition
of additional greenhouses which are already up and running are not considered as true entrepreneurial
opportunities. There are several arguments that can be put forward why the opportunity definition as an
overarching definition is attractive for agricultural entrepreneurship.
It does not limit the study of agricultural entrepreneurship to specific situations such as new
venture creation (e.g., most of the agricultural businesses are already in existence for decades).
Learning and development are the heart of entrepreneurship: The fact that some farmers exploit
entrepreneurial opportunities and others do not is not due to lack of certain personality traits, but due to
(the lack) of specific competence, and experience.
Agricultural Entrepreneurship 417

It recognizes the importance of the broader working environment the entrepreneur engages in.
Interpretation, understanding and creativity, core processes in opportunity development process, all do
not happen in isolation, but are influenced by, for instance, the farmer’s wife, employees, competitors,
network, and chain partners or extension services.
In sum, a focus on the identification and pursuit of opportunities as the core of agricultural
entrepreneurship emphasizes the creative, alert, proactive, and networking aspects of entrepreneurial
activity (DeTienne and Chandler 2004). It enables researchers to shift from the question “who is the
entrepreneur?” to the question “what does the entrepreneur do?” (Gartner 1989), thus helping to avoid
the conceptual swamp of defining the “true” entrepreneur.
Definition of Agriculture Entrepreneurship
Agricultural entrepreneurship can be defined as being primarily related to the marketing and
production of various agricultural products. Agricultural entrepreneurship is also related to agricultural
inputs. Examples of areas where agricultural entrepreneurs associate themselves include dairy, forestry and
horticulture. Production and marketing of agricultural inputs and outputs (Dairy, horticulture, forestry)
Political Entrepreneur There are three different types of political entrepreneurs.
The first is someone who is in some way related to the field of politics and creates new political
groups, parties or projects to make a profit
The second type is a political entrepreneur who makes profits through various government
contracts, subsidies and protection. Profit is made through various political arrangements.
The third type is the more common politician. These political entrepreneurs use innovative ideas
and policies to benefit their own political career or interest and all the while make a profit.
Regardless of the type of entrepreneurship, each have a common primary aim between them and
that is making a decent amount profit. Entrepreneurs could work alone and keep the profit with them or
they may be part of a team. Those that are part of a team usually go on to create medium to large-sized
businesses. Irrespective of your field, every entrepreneur needs capital to start their venture. The initial
capital usually comes from either banks, investors or the entrepreneur(s). Entrepreneur(s) – This type of
capital gives an entrepreneur the greatest degree of freedom. However, the entrepreneur does have to use
his/her own money. If a team is made, all entrepreneurs invest money into the venture.
Why Agricultural Entrepreneurship
Traditionally, agriculture is seen as a low-tech industry with limited dynamics dominated by
numerous small family firms, which are mostly focused on doing things better rather than doing new
things. Over the last decade, this situation has changed dramatically due to economic liberalization, a
reduced protection of agricultural markets, and a fast changing, more critical, society. Agricultural
companies increasingly have to adapt to the vagaries of the market, changing consumer habits, enhanced
environmental regulations, new requirements for product quality, chain management, food safety,
sustainability, and so on. These changes have cleared the way for new entrants, innovation, and portfolio
entrepreneurship. It is recognized by politicians, practitioners as well as scientists that farmers and growers
increasingly require entrepreneurship, besides sound management and craftsmanship, to be sustainable in
the future (McElwee 2008; Pyysiäinen et al. 2006). Recent studies show that agricultural entrepreneurship
is not only dreaming or a new hype: it has a profound impact on business growth and survival (Lans et al.
2011; Verhees et al. 2011).

ISBN: 978-93-5300-292-3 Technical Session - IV

418 Agricultural Entrepreneurship

Is Agricultural Entrepreneurship Different From “Normal” Entrepreneurship?

A classic question posed in debates about agricultural entrepreneurship is whether agricultural
entrepreneurship is different from entrepreneurship in non-agricultural firms. The answer is yes and
no, depending on the type of research question and research paradigm employed. Certain elements
of entrepreneurship seem to be relatively universal, context independent (Rauch et al. 2009) (e.g., the
importance of opportunities, pro-activeness, risk taking, and entrepreneurial self-efficacy), other elements
are more dependent on the type and context of entrepreneurship (Lans et al. 2008) (e.g., entrepreneurial
learning). For studying agricultural entrepreneurship, the following characteristics have to be taken into
consideration: The agricultural sector. Historically, the agricultural working setting did not necessarily
educe entrepreneurial behaviour.
Over the last 50 years, in many western countries, agriculture became a highly specialized domain
focused on efficiency and productivity (Van der Ploeg et al. 2002). For instance, in Europe, post-war
agricultural modernization was very successful for its original aims, to provide food security. However,
this system did not stimulate diversification and innovative entrepreneurship. Farmers were trained to
be craftsmen, producing food and fibres. The development of an entrepreneurial identity, skills, and
behaviour are, consequently, not self-evident (Visalia et al. 2007).
Agricultural entrepreneurship shares many characteristics of “generic” entrepreneurship, but also
has its distinct features due to the specific context of the agricultural sector. A substantial body of literature
on agricultural entrepreneurship has emerged, discussing several aspects of agricultural entrepreneurship.
However, several avenues for research remain. Below, we will discuss four areas for future research in
agricultural entrepreneurship.
Agricultural Entrepreneurship Support
The developing field of dedicated agricultural entrepreneurship support is a fourth focus point
for research. Traditionally, problem solving and innovation in the agricultural sector was supported by
so-called extension services, which were often funded and provided by the state in line with food security
and agricultural modernization policies. These extension services often had a supply-push orientation
and worked within a linear paradigm of innovation (innovations developed by agricultural research were
uniformly disseminated to farmers by extension services), and the one-size-fits all modernization agenda
neglected the heterogeneity of farming styles and entrepreneurial styles of farmers (Van der Ploeg 1994).
Because of this changing structure of agricultural markets and the agricultural sector (earlier mentioned
phenomena like multi-functionality, integration in production chains driven by consumer demands,
societal demands such as food safety, animal welfare, and ecological sustainability), a one-size-fits all
model of innovation and entrepreneurship support has become inadequate. This realization, coupled
with the privatization of applied agricultural research institutes and agricultural extension services, has
induced major changes in innovation and entrepreneurship support in agriculture. Farmers are now
served by a pluralistic system of advisors (both specialized and independent advisors, and those connected
to agricultural input supply such as seeds and fertilizers) (Klerkx and Jansen 2010). Since addressing the
heterogeneous support demands of farmers includes a shift from a mere production-technical focus toward
providing services aimed at improving more generic business, management, and entrepreneurial skills
(Phillipson et al. 2004), farmers need to access different kinds of advisors. In some cases, the formation
of adequate advisory networks which provide a complementary set of both technical advice and advice in
support of entrepreneurship (management, strategy, finance) happens autonomously (Klerkx and Proctor
2013). However, often farmers have difficulties in finding their way around in this pluralistic advisory
system, and need to be supported by an agency who acts as a broker (Phillipson et al. 2004). To this
Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship
Agricultural Entrepreneurship 419

end, in recent years, several dedicated “innovation centres” or “business support centres” have emerged,
which help farmers articulate their entrepreneurial strategy and their entrepreneurship and innovation
support needs, search suitable support providers and match these with farmers, and, if needed, facilitate
their further collaboration (Klerkx and Leeuwis 2009a). Furthermore, initiatives have sprouted which
stimulate informal networking among farmers, to share experiences and learn on topics of joint interest.
Some of these initiatives explicitly aim to stimulate entrepreneurial learning by challenging farmers to pay
more attention to other topics than craftsmanship in crop and animal management, offering, for example,
master classes by successful entrepreneurs from non-agricultural sectors (Klerkx and Leeuwis 2009). As
many of these initiatives are of recent date, more research is needed on issues such as their form, focus, and
impact on agricultural entrepreneurship skills.
Agriculture in India
Indian Agriculture is known throughout the world for its multi-functional success in yielding
employment and livelihood. In fact, agriculture in India shapes the economy of the country to a large
extent.
Agriculture is the principal occupation of the people of India. More than 70 percent of the
working population derives their livelihood by cultivation. Moreover, in India agriculture is the basis of
the economic structure of India, for it is not only the source of raw materials for the principal industries
of India such as jute textiles, sugar and cotton but it also accounts for the maximum portion of the total
income. Indian agriculture has been taking a special place in the lifestyle of the Indians. Moreover, with
the passing decades, Indian agriculture has earned multi-functional success in generating employment,
food, and livelihood, nutritional and ecological security. Agriculture and associated activities contribute
about 30% to the gross domestic product of India. Food grain crops are dominant everywhere and they
cover as much as three fourth of the total cropped area in India.
Arable land area in India is about 168 million hectares and this country ranks second only to
the United States in regards to agricultural activities. A well-developed agricultural research system, a
significant area of almost 60 million hectares under irrigation and an increasing productivity in major
crops has enabled Indian agriculture to become a globally competitive participant. Indian Agriculture
by its complete size and quantum of the activity can control the global markets directly and indirectly.
Majority of rural population in India still depend on agriculture for their living and over 600 million
farmers are involved in the agriculture related activities. India agriculture has the advantage of 52 per
cent of cultivable land and a plethora of climatic conditions. India enjoys sunshine round the year it is
the world`s best country to grow crops throughout the year. Due to urbanization and rapid growth in the
metropolis there is increased demand in the food supply.
The history of Indian agriculture dates back to ten thousand years. Indian agriculture began during
9000 BCE as a result of early cultivation of plants, and domestication of crops and animals. The middle
ages in India saw irrigation channels that reached a new level of sophistication in India. Land and water
management systems were developed with an objective of providing uniform growth.
The Indian agricultural sector employed 60 per cent of the total workforce, despite a steady decline
of its share in the GDP, it is still the largest economic sector, and Indian agriculture plays a significant role
in the overall socio-economic development of India. India is a large country with unevenly distributed
rainfall, varied soils and marked seasons - mildly cool winters and hot summers in north India. Such
regional contrasts favour diversity in crop production. In areas of perennial supply of water, two or even
more crops are raised a year. However, in India crop yield per hectare are among the poorest in the world.

ISBN: 978-93-5300-292-3 Technical Session - IV

420 Agricultural Entrepreneurship

Uncertain rainfall, floods and droughts sometimes ruin crops. Indian soils are universally deficient in
nitrogen. That is why usage of chemical fertilizers for making up the deficiency of important nutrients
like nitrogen, phosphorus is quite popular among the farmers. As a very large area of the country is under
crops, India produces large quantities of rice, tea, jute, cotton, wheat and sugarcane despite low per
hectare yields. India leads the world in the production of jute and tea. (22/01/2014).
India is primarily an agrarian country with 60 per cent of its population being dependent directly
or indirectly on agriculture. The Indian agriculture sector has made considerable progress in the last few
decades with its large resources of land, water and sunshine. India produces all major crops to meet the
requirement of food, fodder, fiber, fuel and inputs for its agricultural industry.
India is presently the world’s largest producer of pulses and the second largest producer of rice and
wheat in the world. The country is also the second largest producer of sugar, after Brazil.
The Department of Agriculture and Cooperation under the Ministry of Agriculture is the nodal
organization responsible for the development of the agriculture sector in India. The organization is
responsible for formulation and implementation of national policies and programmes aimed at achieving
rapid agricultural growth through optimum utilization of land, water, soil and plant resources of the
country.
Government Initiatives
The Government of India realizes the importance of agriculture to the development of this nation
and hence has adopted several initiatives and programmes for this sector’s continuous growth. Notable
among them are Rashtriya Krishi Vikas Yojana (RKVY);
National Food Security Mission (NFSM); National Horticulture Mission (NHM); Gramin
Bhandaran Yojana; Integrated Scheme of Oilseeds, Pulses, Oil palm, and Maize (ISOPOM), etc. Some of
the recent major government initiatives in the sector are as follows:
In a meeting between Mr Alphonsus Stoelinga, the Dutch Ambassador to India, and Mr Radha
Mohan Singh, Union Minister for Agriculture, Government of India, both countries have decided to
strengthen the cooperation in the field of agriculture.
The General Council for National Food Security Mission (NSFM) has approved Rs 2,100 crore
(US$ 347.21 million) for the scheme in 2014-15 which will focus on improving the production of oilseeds
and pulses.
The Coffee Board has taken steps to include growers associations, eminent growers, and experts in
the field of agriculture to strengthen coffee research at the Central Coffee Research Institute.
The Ministry of Development of North Eastern Region (DoNER) has sanctioned seven new
projects worth Rs 87.88 crore (US$ 14.53 million) during FY 15, which include projects for road
construction, irrigation scheme and renewal of electric installations. The irrigation schemes are slated to
help the agriculture sector in the rural areas of the Northeast.
One of the major economic issues faced by the country is agriculture as this is the sector which
is source of livelihood for about 54% of Indians till date. Still today this sector is not well developed and
faces lots of problems resulting into low productivity of crops.
As 43% of land in India, is used for farming but contributes only 18% of the nation’s GDP. The
poor condition of agriculture in the country is the point of concern for Indians. The rural farmers in India
suffer from poverty and most of them are illiterate so there is lack of good extension services.

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agricultural Entrepreneurship 421

Another major problem faced by Indian farmers is their dependency on nature and poorly
maintained irrigation systems. Current agricultural practices are neither economically nor environmentally
sustainable and India’s yields for many agricultural commodities are low.
Poorly maintained irrigation systems and almost universal lack of good extension services are
among the factors responsible. Poor roads to market from village, rudimentary market infrastructure, and
excessive regulation are few of the other concerned points for the agriculture sector in India.
India holds the second largest agricultural land (179.9 million hectares) in the world. India is the
largest producer of pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits
and vegetables, sugarcane, cotton and oils eeds. Total food grains production in India reached an all-time
high of 259.32 million tonnes (MT) in FY12. Rice and wheat production in the country stood at 105.3
MT and 94.9 MT respectively.
Gross Domestic Product (GDP) of agriculture and allied sectors in India reached US$ 151.8
billion in FY12. India is among the 10 leading exporters of agricultural products in the world; the country
accounted for 2.07 per cent of global agricultural trade in 2012. Total agricultural exports from India
registered 24.1 per cent compound annual growth rate (CAGR) to reach US$ 39 billion during FY07-12.
Domestic demand for agricultural and allied products has not only been rising due to rising
population, but also as a result of greater consumption by a wealthier population. Indian agriculture has
also benefitted from rising external demand and the sector’s wider participation in the global economy.
The Government of India has launched National Food Security Mission (NFSM) to increase
production of rice, wheat and pulses. It has also implemented schemes like Rashtriya Krishi Vikas Yojana
(RKVY) which incentivizes states to increase private investment in agriculture and allied sectors.
Entrepreneurship In Agriculture And Allied Sector
In the absence of local entrepreneurship, the opportunities in agriculture and allied sector are
high-jacked by outsiders, particularly the urban businessmen and traders, leading to exploitation and
deprivation of employment for the farmers. Considering the growing unemployment in rural areas and
slow growth of the agricultural and allied sector, it is necessary to tap the opportunities for promoting
entrepreneurship in agriculture and allied sector, which in turn can address the present problems related
to agricultural production and profitability.
Agricultural entrepreneurs are important particularly in developing nations such as India. The
entrepreneur helps to provide education and employment opportunities to people especially those located
in struggling regions. The entrepreneur program in India is operated out of Indira Gandhi National
University. The entrepreneur program is beneficial to many youth of rural communities as it offers them
the opportunity to discover how to sustainably use agriculture in their lives. Agricultural entrepreneurs
in India strive to develop agrarian prosperity while also focusing of sustainable development. Agricultural
entrepreneurs utilize education that includes practical application as well as lectures and reading material to
develop necessary skills. This combination of techniques allows individuals to gain not only knowledge but
also technical skills. Agricultural entrepreneurs are particularly useful in transforming rural communities.
In the north-east region of India which features soil well suited to agriculture, entrepreneurship help to
minimize other limiting factors such as education that often limit success.
Agriculture in India is transforming its practices. As young and charged-up entrepreneurs are
joining the fray, commodities are being turned into value-added products and premium prices can
be demanded from various retail outlets. With the same available resources, young entrepreneurs are

ISBN: 978-93-5300-292-3 Technical Session - IV

422 Agricultural Entrepreneurship

modifying their business-models and exploiting market opportunities to improve their lifestyles. This is
not only helping the entrepreneur but also encouraging farmers to shift to a better world.
Types of Agri Enterprises
While promoting entrepreneurship, we may consider different types of enterprises in agri-
business.
1. Farm Level Producers: At the individual family level, each family is to be treated as an enterprise, to
optimize the production by making best use of the technology, resources and demand in the market.
2. Service Providers: For optimizing agriculture by every family enterprise, there are different types of
services required at the village level. These include the input procurement and distribution, hiring of
implements and equipment like tractors, seed drills, sprayers, harvesters, threshers, dryers and technical
services such as installation of irrigation facilities, weed control, plant protection, harvesting, threshing,
transportation, storage, etc. Similar opportunities exist in the livestock husbandry sector for providing
breeding, vaccination, disease diagnostic and treatment services, apart from distribution of cattle feed,
mineral mixture, forage seeds, etc.
3. Input Producers: There are many prosperous enterprises, which require critical inputs. Some such
inputs which can be produced by the local entrepreneurs at the village level are biofertilizers, biopesticides,
vermicompost, soil amendments, plants of different species of fruits, vegetables, ornamentals, root media
for raising plants in pots, agricultural tools, irrigation accessories, production of cattle feed concentrate,
mineral mixture and complete feed. There are good opportunities to support sericulture, fishery and
poultry as well, through promotion of critical service facilities in rural areas.
Processing and Marketing of Farm Produce: Efficient management of post-production
operations requires higher scale of technology as well as investment. Such enterprises can be handled by
People’s Organizations, either in the form of cooperatives, service societies or joint stock companies. The
most successful examples are the sugar cooperatives, dairy cooperatives and fruit growers’ cooperatives in
many States. However, the success of such ventures is solely dependent on the integrity and competence
of the leaders involved. Such ventures need good professional support for managing the activities as a
competitive business and to compete well with other players in the market, particularly the retail traders
and middlemen.
Problems of Entrepreneurship Development
Entrepreneurship in agriculture is not only an opportunity but also a necessity for improving the
production and profitability. However, the rate of success is very low in India, because of the following
reasons.
For most of the farmers, agriculture is mainly a means of survival. In the absence of adequate
knowledge, resources, technology and connectivity with the market, it is difficult for the illiterate small
holders to turn their agriculture into an enterprise.
Before promoting various services by self-employed persons, there is a need to create awareness
among the farmers, who are the users, about the benefits of these services.
For popularization of services, the present practice of providing free service by the Government
agencies should be discontinued. In fact, many farmers, particularly the politically connected leaders are of
the impression that the government is responsible for providing extension and technical advisory services
to the farmers. However, over the years, the credibility has eroded and the services of these agencies are

Technical Session - IV UGC Sponsored National Seminar on Economy & Entrepreneurship

Agricultural Entrepreneurship 423

not available to small farmers, particularly those living in remote areas. Nevertheless, the concept of free
service makes the farmers reluctant to avail of paid services, offered by the local self-employed technicians.
The self-employed technicians need regular back up services in the form of technical and business
information, contact with the marketing agencies, suppliers of critical inputs and equipment and research
stations who are involved in the development of modern technologies.
There are several legal restrictions and obstacles, which come in the progress of agri-business,
promoted by the People’s Organizations and Cooperatives. Private traders engaged in such business tend
to ignore these rules and disturb the fair trade environment.
People’s Organizations often hesitate in taking the risk of making heavy investments and adoption
of modern technologies, which in turn affect the profitability. With low profitability and outdated
technologies, farmer members lose interest in their own enterprises as well as in that of their leaders.
Bibliography
yy 1. Arup Kumar Baksi. (2014). Exploring the Relationship between Entrepreneurship, Innovation and Economic Progress: A Case of
India with Evidences from GEM Data and World Bank Enterprise Surveys, Journal of Entrepreneurship & Management, Vol. 3, No. 1.
yy 2. Atul R. Deshpande. (2014). An Empirical Evidence on Entrepreneurship and Economic Growth in India, Journal of Entrepreneurship
& Management, 2014, Vol. 3 No. 3
yy Websites
yy 1. Government of India: www.gov.in
yy 2. National Institute of Rural Development: www.nird.org.in
yy 3. Directorate of Economics and Statistics: http://eands.dacnet.nic.in
yy 4. Ministry of Agriculture, Govt. of Indian: http://agricoop.nic.in

ISBN: 978-93-5300-292-3 Technical Session - IV

 Author Index
A. Bhagyaraj 17 Dr. Suja S. Nair 269 P. Daniel Paul 62
A. J. Mohan Rao 376 Dr. T. Lokeswara Rao 152 Prof. D. V. Ramana 17
Anilambica Kata 23, 156, 366 Dr. T. Ramadevi 342 Prof. G. V. Chalam 1
A. Rajeswari, 278 Dr. T. Umamaheswara Rao 213 P. Siva Prasad 269
A Sai Manideep 141 Dr. V. Mallikarjuna, 406 P. Srinivasa Reddy 162
Atyala Salem Raju 354 Dr. V. Srinivasa Prasad 11, 45, 62 P. Vikram Babu 124
Dr. V. Venkateswara Rao 175 PVS Chowdary 100
Bandlamudi Kalpana 76 Dr. Y. Ramakrishna Prasad 105
Bhagyaraj. A 296 D. Syamala 283 Ravi Kumar 199
B. H. Venkata Siva Krishna 45
B. Raghavi 23 E.Sheela 263 Shaik Mastan Vali 336
B. Saritha 283 Sk. Basheerunnisa 156
B. Satyavani 81 Gk. Patnaik Karakavalasa 376 Smt. L. Vijaya 389
B. Swathi Devi 370 G. Ramesh Babu 250 Smt. P. Rupavathi 389
B.V. Brahmaji 87 G. Saritha 394 S. Pratap 166
B. Venkateswarlu 323 G. V. Chaitanya 370 S. Rizwana Sultana 315
G. Venkateswarlu 100 Suresh Chandra.T 366
Challa Maruthy Subrahmanyam 162 Syamala Devi Challa 147
Ch. Rajasekhar 416 Harika 87
Ch. Yashoda Rao 189 Immaniyelu Yepuri 36 Taidala Vasantaha Rao 76
J. Syamala Devi 315 Thurumella Ramanaiah 288
D. Bhaskara Rao 52 K.Hari Babu 315 T. Narayana Rao 11
D. Poornima Devi 152 K. Prabhu Rani 361 T. Tulasi 323
D. Pushpa Sri 175 K. Sivaiah 189
K. Sivaji Ganesh, 1 U. Chandramouli 278
Dr. A. Kanaka Durga 36, 147, 318
K. Srinivas 254 V. Murali 296
Dr. B.V.H. Kameswara Sastry 331
Kumaraswamy Manepalli 66 V. Mydhili 70
Dr. Dasaraju Srinivasa Rao 229
Kumba Nagamani 307 V. Pavani 302
Dr. E. Sambasivan 382
L. Jyotshna Reddy 171 V Rama Krishna Rao Chepuri 179
Dr. J. Revathy 30, 52, 166, 245
Madhavi. Nuthalapati 318 Vunnam Venkata Ramanjaneyulu 57
Dr. Katreddi Satyanarayana 235
Maneeja Indupalli 245 V. Veeranjaneya Kumar 179
Dr. Krishna Banana 179
Md Sohil Baba 207 Y. Devi 315
Dr. M. Aravind 213
M. Krishna Chaitanya, 60 Y. Nagendra 119
Dr. Mazharunnisa 403
M. Mounika 302 Y. Srinivasa Rao 41
Dr. M.S. Narayana 254
Dr. N. Kumara Swamy 406 Mr. B. Sudheer Kumar 406
Dr. N. Ratna Kishore 263, 288, 307 Ms. Syamala Devi Bhoganadam, 229
Dr. P. Nagamani 342 M.V Subba Rao 131
Dr. Prasad Chundi 92 MVS Vaishnav, 131
Dr. P Srinivas Reddy 141 N. Madhuri 156
Dr. Radhika Naidu 171 N. RamaKrishna 136
Dr. R. Emmaniel 124 O. Naresh 30
Dr. R. Lilambeswara Singh 240 P. Anitha Saravanan 114
Dr. S. Subba Reddy 119 P.Chinnari 416