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ENTREPRENEURSHIP
DEVELOPMENT
[Year 10-12- A B ]
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Objectives1-To provide necessary exposure to the
students to the fields of entrepreneurshipdevelopment
2-To understand the steps involved andattributes of a successful entrepreneur
2- To assist them to develop new projects and
encourage to start innovative and newventures
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Entrepreneurship and itsSignificance
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INTRODUCTIONTO ENTREPRENEURSHIP
Ean-Baptiste Say, an Industrialists definition associatesentrepreneur with the functions of coordination
,organization, and supervision . According to him theentrepreneur is one who combines the land of one ,the laborof another and the capital of yet another and thus producesa product
He elaborates following three more implicit factorsdeemed to be essential
a)Moral qualities for work judgment ,perseverance and aknowledge about the business world
b)Command over sufficient capital
c)Uncertainty of profits
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WHATIS ENTREPRENEURSHIP?
Entrepreneurship is concerned with stimulating
economic progress through innovation andaction.
Entrepreneurship is the process by which
individuals pursue opportunities without regard toresources they currently control.
The essence of entrepreneurial behavior isidentifying opportunities and putting sizable
ideas into practice It requires creativity ,drive ,and a willingness to
take risks
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WHOISCALLEDAN ENTREPRENEUR?
Economist Jean Baptiste Say, describedentrepreneurs as the venturesome individuals whostimulated economic progress by finding new andbetter ways of doing things.
In other words, entrepreneurs optimize theallocation and use of resources ,to generatemaximal profits.
The entrepreneur has the courage to takecalculated risks, sometimes even doing things thatothers think are unwise, or even undoable.
The entrepreneur also carries projects through, tocompletion, and is uninhibited by occasionalsetbacks or challenges
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TOSUMUP----
The function of entrepreneurs is to reformor revolutionize the pattern ofproductionbyexploiting an inventionor,
more generally, anuntried technologicalpossibilityfor producing a new commodityorproducing an old one in a new way, byopening up anew source of supplyof
materials or anew outletfor products, byreorganizing an industry
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WHYBECOMEANENTREPRENEUR ?
Three main reasons
1- Be their own boss 2-Pursue their own ideas
3- Realize financial rewards
1-People who become entrepreneurs for the first reason
typically do not grow their firms beyond their immediatecontrol
2-The second reason people are alert, and when theyrecognize ideas for new product or services, they havea desire to see those ideas realized .
Corporate entrepreneurs who innovate have amechanism for ideas to become known.
Establish firms resist innovation and the people withinnovative ideas choose to leave firms
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3-The third motivation is however is typically
secondary to the first two .
The average entrepreneur does not make moremoney than someone with a similar amt ofresponsibility in a traditional job
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QUALITIESANDTRAITSOFASUCCESSFULENTREPRENEUR
Willingness to make sacrifices
LeadershipDecisivenessConfidence in the projectMarketing orientation
Strong ego
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CONTINUED----
Willingness to make sacrifices
The entrepreneur has to be prepared to sacrificehis time ,energy, and resources. Must be willing
to struggle, sacrificing personal comforts andconveniences. Its not a typical nine to fiveexecutive job. It is far more demanding,requiring total commitment
Leadership Generally have strong leadership qualities. Able
to inspire ordinary persons. They are able to firepeople with zeal
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TYPESOF ENTREPRENEURS
On the basis of study of entrepreneursworld over they can be classified asfollows
Innovative Entrepreneurs
It characterizes aggressive assemblage of information
and analysis of results. These persons are aggressive in experimentation
Introduce new products and new methods ofproduction, opens new market and reorganizes theenterprise
Found in developed countries
Innovative entrepreneurs played a key role in the riseof modern capitalism, through their enterprising spiritand ability to exploit opportunities .
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Adoptive or Imitative Entrepreneurs
Instead of innovating they just imitate the technology,knowledge and skills already available in moreadvanced countries
These entrepreneurs are important in underdeveloped
countries as they contribute significantly to thedevelopment of these nations
Imitative entrepreneurs help to transform the system withthe limited resources available and also face lesser risk
and uncertainty
They are mostly small scale and not be underestimated
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CONTINUED---
Fabian Entrepreneurs Entrepreneurs of this type are very cautious and skeptical
while practicing any change. They have neither the will northe desire to adopt new methods. They are shy and lazy.
Dealings are determined by customs, religion andtradition. Try to follow footsteps of predecessors
Drone Entrepreneurs
Characterized by a refusal to adopt and use opportunities to
make changes in production. They are laggards as theycontinue to operate in their traditional way and resistchanges. They are pushed out of market once theiractivity become uneconomical
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CONTINUED--
Some more categories ofentrepreneurs are Individual and Institutional Entrepreneurs
In SME sector individual entrepreneurs are dominant.
Such entrepreneurs have the advantage of flexibility,quick decision making and state patronage. But it haslimitation. After certain stage they institutionalize tohandle increasingly complex network of decision-making.
Corporate sector is the symbol of institutionalizedentrepreneurship
Entrepreneurs by inheritance
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ROLEOF ENTREPRENEURSHIPPLAYEDINECONOMICDEVELOPMENT
Entrepreneurship promotes capital formation bymobilizing the idle saving of the public
It provides immediate large scale employment,
which is the root of all socio-economics problem. It promotes balanced regional development
It helps to reduce the concentration of economicpower
It simulates the equitable redistribution of wealth,income and even political power .
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It encourages effective resource mobilizationof capital and skill which might other wiseremain unutilized
Induces backward and forward linkages whichstimulate the process of economic development
It promotes countries export trade which is an
important ingredient to economic development
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FUNCTIONSOF ENTREPRENEURS
Kilbey, classified the functions of Entrepreneur into four
groups. These are follows
AExchange relationship
Perceiving market opportunities
Gaining command over scarce resources
Purchasing inputs
Marketing of the products and responding to competition
B Political Administration
Dealing with the public bureaucracy(concession, licensesand taxes)
Managing human relation within the firm
Managing customer and supplier relations
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CONTINUED--
Management control Managing finance
Managing Production
Technology Acquiring and overseeing assembly of the factory
Industrial Engineering
Upgrading process and product quality
Introducing new production techniques and productsThe above functions may very according to the size ,type,
and setting of an enterprise and could be augmentedthrough training and education
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CONTINUED--
Arthur H. Cole has described functions of anEntrepreneur in following way
1-Determination of objectives . And then change of thoseas conditions required.
2-Development of an organization including efficientrelationship with employees
3-Securing adequate financial resources and relationship with existing and potential investors
4-Acquiring efficient technological equipment and itsrevision if required
5-Development of new market for the product anddevising of new products to meet consumers demand
6-Maintenance of good relationship with public authoritiesand with society at large
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THE ENTREPRENEURIALPROCESS
The entrepreneurial process consists of fourimportant steps
Step-1 Deciding to become an entrepreneur
Step-2 Developing successful business ideas
Step 3 Moving from an idea to an entrepreneurial
firm
Step 4 Managing and growing the entrepreneurialfirm
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DECIDINGTOBECOMEANENTREPRENEUR
Step 1People become entrepreneurs to be their
own boss ,to pursue their own ideas and to
realize financial rewards
Some times a triggering event prompts anindividual to become an entrepreneur
Lifestyle issues may also triggerentrepreneur careers eg. A woman may waituntil her youngest child in school .etc
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CONTINUED--
Step 2 Developing successfulbusiness ideas
It includes
Opportunity recognition, Feasibility analysis
Writing a business plan,
Industry analysis and Development of an effective Business Model
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CONTINUED---
A firms business model is its Plan, for how itcompetes ,use its resources ,interfaces with itscustomers ,and creates value ,to sustain itself on thebasis of, profit it generates
Step 3 [moving from an idea to anEntrepreneurial firm
Turning an idea into reality is to build a new ventureteam.eg Assembling the firms initial mgt. team and
selecting a Board of directors and Board of advisors
Assessinga new ventures financial strengths andviability
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CONTINUED---
Preparing a proper ethical and legal foundation fora firm including selecting an appropriate form ofbusiness ownership
To have a written business plan to raise money
and attract high quality business partners
Getting financing or funding and identifying theoptions that a firm has for raising money
S 4 M
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STEP-4 MANAGINGANDGROWINGANENTREPRENEURIALFIRM
This is a final stage of an entrepreneurialprocess
Focus on unique marketing issues facingentrepreneurial firms ,including selecting anappropriate target market ,building a brand and thefour Ps for the new firm .
Examine the important role of intellectual property in
the growth of entrepreneurial firmsProtecting business ideas through intellectual
property status such as patents ,trade marks, copyrights, and trade secrets
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Study strategies for growth ranging fromnew product development to mergers andacquisition
Franchising could also be a growingcomponent of entrepreneurial landscape
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TEN KEYACTION ROLESASSOCIATEDWITHENTREPRENEURS
Entrepreneurs are individuals whomake a significantdifferenceEntrepreneurs translate what is possible into reality. They
transform a simple ,ill defined idea into something that works
Entrepreneurs are creative andinnovative
Creativity and innovation are the distinguishing marks of theentrepreneur. It is a continuous activity for the entrepreneur.Creativity is combined with the ability to innovate ,to take theidea and make it work in practice
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CONTINUED--
Entrepreneurs spot and exploitopportunities Entrepreneurs are able to see or craft opportunities that
other people miss ,even though the data that generates the
idea is often there. Those gifted few who are both inventorsand entrepreneurs, have a special edge
Entrepreneurs find the resources
required to exploit opportunities It is not a flash of inspiration or luck but rather it conscious anddisciplined exploitation of resources . They are experts atexploiting contacts and resources ,begging, stealing andborrowing when necessary( Stevenson,1997)
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CONTINUED--
Entrepreneurs are good networkersKnow where to find resources and how to control abusiness
Entrepreneurs are determined in the face
of adversityThey are motivated to succeed and possessdetermination and self belief
Entrepreneurs manage riskEntrepreneurs take risk they believe they understand and
can manage. They are not risk averse ,they prefer to findways of saying yes rather than no and then are willing toaccept responsibility for their decision
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CONTINUED--
Entrepreneurs have control of the business
They seems to have knack for knowing what is important andwhat to keep an eye on. They are able to see the wood for thetrees but they also know which trees to watch. Thus are able toexercise the strategic control over their business
Entrepreneurs put the customers first
They are able and willing to respond to what the customer istelling them
Entrepreneurs create capital
Creativity and innovation ,resources acquisition, networking andthe other action factors are all part of entrepreneurs intellectualand emotional capital. They are currency he uses to generate newkinds of capital such as Financial capital, Social capital,Aesthetic capital
FOUR PRIMARY CHARACTERISTICS OF
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SUCCESSFULENTREPRENEUR
PASSION FORTHE BUSINESS
PRODUCT/CUSTOMER FOCUS
TENACITY DESPITEFAILURE
EXECUTIONINTELLIGENCE
FOUR PRIMARY CHARACTERISTICS OFSUCCESSFUL ENTREPRENEUS
CHARACTERISTICS OF SUCCESSFUL
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CHARACTERISTICSOFSUCCESSFULENTREPRENEURS
There are some common behaviors
among the successful entrepreneurs
Passion for the business It is the number one characteristic shared by those in the
context of new firm or an existing business
Passion is important because ,although rewarding theprocess of starting and building a new firm is demanding
Entrepreneurship is not for the person who is partiallycommitted
Caution-It is important to be enthusiastic but it is alsoimportant to understand its potential flaws and risks
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CONTINUE---
Product customer focus Most important element in a business is product andcustomer
Michael Dell wrote : We introduce technology that meets theneeds of our customer ,rather than introducing technology for
its own sake.
Tenacity despite failure Because entrepreneurs are trying something new ,the failure
rate associated with their efforts is high. Developing a newidea may require a certain degree of experimentation
The litmus test for entrepreneurs is their ability to pursuethrough setbacks and failures
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CONTINUED--
Execution Intelligence The ability to fashion a solid business idea into
a visible business is a key characteristics of
successful entrepreneurs In many cases execution intelligence is the factor
that determines whether a start up is successful orfails
An ancient Chinese saying warns To open abusiness is very easy ; to keep it open is verydifficult
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CONTINUED---
There are certain characteristics which are found
usually prominent in entrepreneurs . The principalones are
Self confident and Optimistic
Able to take calculated risk
Respond positively to challenges
Flexible and able to adapt
Able to get along well with others
Independent mindedVersatile knowledge
Energetic and diligent
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CONTINUED--
Creative, need to achieve
Dynamic leader
Responsive to suggestions
Take initiatives
Resourceful and persevering
Perceptive with foresight
Responsive to criticism
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COMMON MYTHS ABOUT ENTREPRENEURS Media covers articles of some typical entrepreneurs which
creates misconceptions. These are exceptions rather thanrule. The common myths and the realities
Entrepreneurs are born ,not made
This myth is based on mistaken belief that some aregenetically predisposed to be entrepreneurs
Studies on psychological and sociological make up ofentrepreneurs show that entrepreneurs are notgenetically different from other people
No one is born to be an entrepreneur; everyone has thepotential to become one. However there are personalitytraits and characteristics commonly associated withentrepreneurs [listed separately]
CONTINUED---
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CONTINUED---
Entrepreneurs are gamblers The truth is entrepreneurs are moderate risk takers as are most
people. This myth originates from two sources
First the entrepreneurs typically have jobs that are lessstructured facing uncertainty in prospects. Secondly manyentrepreneurs have strong need to achieve and setchallenging goals
These behaviors are some time equated with risk taking bycommon man
Entrepreneurs are motivated primarily bymoney
Entrepreneurs do seek financial rewards however money israrely the primary reason entrepreneurs start new firm
Some successful entrepreneurs say If you chase money youwill never get it ,They warn pursuit of money can bedistracting
CONTINUED
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CONTINUED----
Entrepreneurs should be young and energetic What makes an entrepreneur strong in the eyes of an Investor
is experience in the area of the proposed business ,skills andabilities that will help the business ,a solid reputation ,a trackrecord of success and passion about the business idea
Majority of above qualities favour older rather than youngerentrepreneurs
Entrepreneurs love the spotlight A few are flamboyant but vast majority of entrepreneurs do not
attract public attention
Many avoid public notice due to the products or services theyare working on
We do not know the names of founders of many products orservices ,which we use frequently
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INTRAPRENEURS-ANEMERGINGCLASS
Intrpreneurship the latest buzz word in India Inc.has started gaining momentum
Some of the well established companies learn tomake use of entrepreneurial talents within to avoid
stagnation and decline. An employee who is given the financial support and
resources to create new products, services and
systems is called an Intrapreneur . The intrapreneurs introduce new products
,services and process which enable the company togrow and succeed in a changing environment
CONTINUED
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CONTINUED--
We need a system and an organization culture
within a large organization that would allow theexecutives to operate like entrepreneurs
Some firms create a system which will provide
selected executives a status within the corporationto that of an entrepreneur in a society Such peopleare Intra-corporate Entrepreneurs orIntrapreneurs
Some of the greatest business leaders of the pastmade their early mark in in business as Intrapreneur
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A strong and healthy risk taking culture isrequired ,where risk taking managers areassured of security and rewards
Intrpreneur is an organization man operating
from within an organization whereasEntrepreneur operates from outside
Both the entrepreneur and the intrapreneurare innovators and both perform the function of
organization and management .But the contextswithin which the two operate and the degree ofrisk they bear are different
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CONTINUED---
Most progressive organizations view
intrapreneurship as a way to develop- andretain the best manpower they have andprovide an entrepreneurial atmosphere withinthe organization itself.
The competitive nature of the business drivesthe intrapreneur culture
Indian companies have started empowering
people in the lower levels where trueinnovation can occur
This considered to be an HR tool or aninnovation tactic,
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GENERAL TRAITS OF AN INTRAPRENEUR
Three dimensional thinking
High energy Persistence Communications ability
Networking and team work skills
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MONITORING THE ENVIRONMENT
A firm must systemically monitor the environment and
assess its competitive abilities
Following are the important aspects to be studied inmonitoring the key sectors of the environment
ECONOMIC SECTOR
State of the economy
Overall rate of growth
Growth rate of primary secondary and tertiary sectors
Cyclical fluctuations Linkages with world economy
Trade surplus/deficits
Balance of payment
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CONTINUED---
Governmental sector Industrial policy
Govt. programmes and projects
Tax framework
Subsidies ,incentives, and concessions
Import and export policies
Financing norms
Lending conditions of financial institutions andcommercial banks
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CONTINUED---
Technological Sector
Emergence of new technologies
Access to technological know-how, foreign as well asindigenous
Receptiveness on the part of industry
Socio-demographic sector
Population trends
Age shift in population
Income distribution Employment of women
Attitudes towards consumption and investment
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CONTINUED---
Competition Sector
Number of firms in the industry and the market share ofthe top few Degree of homogeneity and differentiation among
products Entry barriers Comparison with substitutes in terms of quality, price,
and appeal Marketing policies and practices
Supplier Sector
Availability ,and cost of raw materials and sub-assemblies
Availability and cost of energy Availability and cost of money
I R
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IDENTIFYINGAND RECOGNIZINGOPPORTUNITIES
Entrepreneurs recognize an opportunity andturn it into a successful business
An opportunity is a favorable set of
circumstances that creates a need for a newproduct, service or business
An entrepreneur must rely on instinct, whichmakes it an art, and on purposeful action and
analytical techniques, which makes itscience
CONTINUED---
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CONTINUED
An opportunity has four essential qualities
, it is 1) attractive2) Durable, 3)timely and 4)anchoredin a product, service or business
- [that adds value for its end user]
Important to understand that there is a differencebetween an opportunity and an idea.
An idea is a thought ,impression or notion. It mayor may not meet the criteria of an opportunity
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There are two ways to identify anopportunityObserving trends
First approach is to observe trends and study
Economic factors ,social factors.Technological advances, and political action arethe most important trends to follow
Entrepreneurs who have industry experience, whohave well establish social network, who arecreative ,and who are in general alert are morelikely to spot trends and interpret themcorrectly
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CONTINUED---
Some of the recent trends thatallow for the new opportunities are
Family and work patterns
The aging of the population
The increasing diversity in the workplace Globalization of the industry Increasing focus on healthcare and fitness
The proliferation of computers and the internet
Increase in the numbers of cell phones users New forms of music and other forms of entertainment
C
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CONTINUED--
Economic forces Economic forces affect consumers level of disposable
income .Individual sectors of the economy have a directimpact on consumer buying patterns
When studying how economic forces affect opportunities ,itis important to evaluate who has money to spend
Social Forces The proliferation of fast food restaurants is due to the fact
that people are busy, working women strength isincreasing etc
CONTINUED--
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CONTINUED--
Technological advances Advances in technology frequently dovetail with economic
and social changes to create opportunities
Eg Creation of cell phone is a technological achievement,but it was motivated by increasing mobile population
Political Action and RegulatoryChanges
New laws create opportunities for entrepreneurs to startfirms to help companies comply with these laws
[Environmental protection agency, Occupational safety andhealth regulations etc]
Eg.-Global political instability and the threat of terrorism haveresulted in many firms becoming more security conscious.Companies want the data to be protected
ENVIRONMENTAL TRENDS SUGGESTING
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ENVIRONMENTALTRENDS SUGGESTINGBUSINESSOPPORTUNITIES GAPS
Economic Forces
State of the EconomyLevel of disposable incomeConsumer spending pattern
Social ForcesSocial and cultural trends
Demographic changesWhat people think is in
Technological AdvancesNew technologies
Emerging technologiesNew uses of old tech
Political and RegulatoryChanges
New changes in political arena
New laws and regulations
Business,Product or
service
opportunityGapDifferencebetweenwhats
available
&whatspossible
Newbusiness
,productand
servicesideas
C
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CREATIVITY
Creativity is the process of generating a novel or usefulidea. Opportunity recognition ,may be at least in part, acreative process.
For an individual the creative process can be broken intofive stages [See the chart]
The vertical arrows suggest that at any stage an individualgets stuck to continue, the best choice is to return to thepreparation stageto obtain more knowledge orexperience before continuing to move forward
FIVE STEPS GENERATING CREATIVE
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FIVESTEPS GENERATINGCREATIVEIDEAS
Preparation
Incubation
InsightBusiness idea
conceivedProblem solved
Evaluation
Elaboration
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CONTINUED--
PreparationPreparation is the background,experience, and knowledge that the entrepreneurbrings to the opportunity recognition process
IncubationIt is the stage during which a personconsiders an idea or thinks about a problem.
Sometimes incubation is a conscious activity andsometimes it is unconscious and occurs while engagedin another activity
InsightInsight is a flash of recognitionwhen thesolution to a problem is seen or an idea is born.Sometimes called the Eureka experience
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CONTINUED---
EvaluationIt is the stage of the creativeprocessduring which an idea is subjected toscrutiny and analyzed for its viability.Entrepreneurs should not skip this step
It is the challenging stage of the process because itrequires to take a candid look at the viabilityof anidea
ElaborationIt is the stage during which thecreative idea is put into a final form. The idea istransformed into something of value, such as a newproduct ,service or business concept.
This is a point at which a business plan is written
OPPORTUNITY RECOGNITION
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OPPORTUNITYRECOGNITIONPROCESS
There is a connection between an awareness ofemerging trends and the personal characteristics ofthe entrepreneurs
Eg An entrepreneur with a well establish social
network may be in a better position to recognizeemerging technological trends
As the same time an awareness of emerging trendsuch as digitisation may prompt an entrer To attend
conference or workshop ---expanding socialnetwork
Opportunity recognitionprocess
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EnvironmentalTrends
Economic factorsSocial FactorsTech. advances
Political & regulatorychanges
Personalcharacteristics of an
EntrePrior experienceCognitive factors
Social networksCreativity
Business product orService opportunity
gapDifference betweenwhats available and
whats possible
Newbusiness,
product &serviceIdeas
process
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TECHNIQUESFOR GENERATINGIDEAS In general entrepreneurs generate more ideas than
opportunities. Several techniques can be used to find the bestway to stimulate and facilitate the generation of new ideasfor products ,services ,and business .
Brainstorming
Used to generate ideas quickly. Not for analysis or decisionmaking ,Ideas generated by this need to be filtered later on.
The brainstorming session is targeted to a specific topic by theleader of group. An atmosphere of enthusiasm is created .Mayinvolve the employees of an organization
Focus Group A focus group is selected because of their relationship to the
issue. Usually focus groups are conducted by trained moderators,who keep the grp. focused
CONTINUED
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CONTINUED---
Surveys Surveys generate new products ,services and business
ides since they ask specific questions and get specificanswers. Answers sometime produce interesting leads
to new products or service ideas
Other techniques Customer advisory boards, attending trade shows,
conferences and gathering of industry personnel and usethe information to stimulate new product
CREATIVITY ENHANCERS
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CREATIVITYENHANCERSOrganizational Level
Elevating creativity s importance
through out the organization
Offering tangible rewards to thosegenerating new ideas
Investing in resources that helpemployees sharpen their creative skills
Hiring people different from thosecurrently working in the company
Individual Level
Listening attentively in order toacknowledge and provide early
support to ideas
Dealing with employees as equals
to show that status isnt veryimportant
Speculate ,be open and build onothers ideas
Protecting people who makehonest mistakes and are willing to
learn from them
C D
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CREATIVITY DETRACTORS
Organizational Level
Not attempting to hire creativepeople
Maintaining a stiff organizationalculture with no room for different
behaviors
Pigeonholing employees keeping
them in the same job for years
Promoting a mentality suggestingthat the best solution to all
problems have already been found
Individual SupervisoryLevel
Being pessimistic ,judgment aland critical
Punishing mistakes or failedideas
Being cynical or negative andinsisting on early precision
Being inattentive ,acting distantand remaining silent whenemployees want to discuss
new ideas
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WOMEN ENTREPRENEURSHIP
Women Entrepreneurs may be defined as a womenor group of women who initiate ,organise and run abusiness enterprise .
According to Schumpeterian innovative
entrepreneurs ,women who innovate, imitate oradopt a business activity are called women
entrepreneurs
They are those who initiate it organize or combine
the factors of production, undertake risk and handleeconomic uncertainty
F R W
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FUNCTIONSAND ROLEOF WOMENENTREPRENEURS
A women entrepreneurs must perform five functions
Explore the prospects of starting a new business
Undertaking of a risk and handling of economicuncertainties
Introduction of innovations
Coordination,administration and control
Routine supervision
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OPPORTUNITIESFORWOMENENTREPRENEUR
Many all India level surveys have proved that inrecent years ,women entrepreneurs have enteredall fields business and industry
Considering the shift in from the manufacturing
industry to the service industry,some imporantopportunities are identified for women in urbanareas
1-Computer services and information dissemination
Trading in computer stationary Travel and tourism
Sub assemblying of electronic products
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Poster and indoor plant library
Screen painting ,photography, and video shooting Community kitchens
Job contracts for packaging of goods
Crches
Beauty parlors Catering centers
Opportunities in Semi urban areas
Production of liquid soaps detergents etc
Ready made instant food products, Different types of training and coaching classes
Nursery classes
Garments
Manufacturing of leather goods
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PROBLEMSOF WOMEN ENTREPRENEURS
Women entrepreneurs face two types of problems.VizGeneral problems of entrepreneurs and problems specificto women entrepreneurs , Some are discussed as follows
Problem of finance Suffer from shortage of finance on
two accounts ,Firstly women do not generally haveproperty on their names thus access to the externalsources of funds is limited . Secondly the Banks alsoconsider women less credit worthy and discourage women
borrowers on the belief that they can at any time leave theirbusiness . Hence they fail due to shortage of funds
Scarcity of Raw material
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CONTINUED---
Stiff competition
Limited mobility
Family ties-Involvement in family leaves little time andenergy to devote for business. Background of husbandinfluence positively influence women's entry intobusiness
Lack of education60 % women are still illiterateIlliteracy is the route cause of socio economic problems.Women are unaware of business ,technology and
market knowledge
Male dominating society --Male dominated Indiansociety women are not treated equal to men ,thus servesas a barrier to women entry into business
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Low risk bearing ability
Women lead a protected life . Are not economicallyself dependant . These things reduce their ability tobear risk