Role of re in Indian Economy

8/6/2019 Role of re in Indian Economy

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PROJECT REPORT

ON

ROLE OF ENTREPRENEURS

IN INDIAN ECONOMY

BACHELOR OF BUSINESS ADMINISTRATION

(SESSSION: 2009-2011)

Under the guidance of: Submitted By:

Mr. Amit Kajal GauravSaini Lecturer

1209403 MMIM

BBA (Industry Integrated)

MAHARISHI MARKANDESHWAR INSTITUTE OF MANAGEMENT

(MULLANA)


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TO WHOM SO EVER IT MAY CONCERN

This is to certify that GAURAV SAINI bearing University Roll No. :

1209403, a bonafide student of BBA (Trimester- 4) has completed his

work on project entitled ROLE OF ENTREPRENEURS IN INDIAN

ECONOMY under my supervision.

His work is original, satisfactory and fit for the purpose of further

evaluation.

Mr. Amit Kajal

Lecturer

MMIM


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ACKNOWLEDGEMENT

There is always a source of gratitude which one expresses to the other

for the helpful and ready service they render during all work at life. I

gratefully acknowledge the inspiration, encouragement, guidance, help

and suggestions receipt from the following well wishes.

At the first place, I am highly thankful to Mr. Amit Kajal, Lecturer,

MMIM, Mullana. Under whose guidance I have successfully completed

my project, who always there to give my spirits a boost.

I express my sincere regards to him for sparing his valuable time in

giving guidance and knowledge that I have gained during the project

work is all because of him.

I also extend my thanks to other faculty members of MMIM, Mullana

for their successful help at various stages.

GAURAV SAINI

(Student)


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ABSTRACT

Entrepreneurs are people who do things, which are not generally done

in the ordinary course of a business. It is not surprising that every

fortune 500 Enterprise in existence is the result of an entrepreneur's

enterprise and perseverance. Entrepreneurs, according to Karl Vasper,

are pillars of industrial strength the movers and shakers who

constructively disrupt status quo.

Entrepreneurs are the driving forces behind any economy. They create

large corporations out of backyard enterprises. Henry ford, Irving

Berlins, Bill Gates, King Gillette and Rose Perot were people who

envisioned a dream and took risk to achieve this Dream. They marched

to a different beat. They were innovators, inventors, and adventurers.

Entrepreneurship is a social phenomenon and it is not inherent within a

person, rather it exists in the interaction between people. To be asuccessful Entrepreneur it requires practicing as a manager by acquiring

various skills and efforts in learning to understand a business.

Entrepreneurship is the future of the modern society. It reflects a ray of

hope for the unemployed to earn a living and maintain a dignified life

and also for the economic development of the country. The present

paper focuses mainly on the dual aspect of Economic Development and

how entrepreneurship can improve the status of women in the IndianSociety.


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CONTENT

TOPIC 1: INTRODUCTION

TOPIC 2: DETAIL STUDY

TOPIC 3: CONCLUSION


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ENTREPRENEUR

How do we define "Entrepreneur"? Is there anything to be learned

about entrepreneurship and building a business by studying the

definition? Or, is studying the historical definition of "Entrepreneur"

just an academic exercise?

Let's look at how some small business experts define the word"Entrepreneur":

Bob Reiss, successful entrepreneur and author of Low-Risk, High-

Reward: Starting and Growing Your Small Business With Minimal Risk,

says: "Entrepreneurship is the recognition and pursuit of opportunity

without regard to the resources you currently control, with confidencethat you can succeed, with the flexibility to change course as necessary,

and with the will to rebound from set backs."

A key factor in Reiss's definition is that entrepreneurs undertake

opportunities regardless of the resources the entrepreneur currently

controls. I've known many people who say they'd love to start a

business, but they just don't have the money to get started. Neither did

many of history's greatest entrepreneurs like Michael Dell, who started

his computer company in his college dorm room or Lillian Vernon, who

started her mail-order business when she was a housewife looking for


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extra income. These successful entrepreneurs didn't start rich and

successful. They ended rich and successful.

Entrepreneurs find ways to acquire the resources they need to achieve

their goals. One of those resources is capital. "Entrepreneurial" is often

associated with venturesome or creative. Be creative in acquiring the

resources you need to build and grow your business. Think outside the

box and you'll improve your chances of acquiring what you need to

succeed.

Linda Pinson, author of much of the SBA's material about writing a

business plan and creator of business plan software (business-

plan.com) says: "I have always thought of an entrepreneur as a person

who starts a business to follow a vision, to make money, and to be the

master of his/her own soul (both financially and spiritually). Inherent in

the venture is the risk of what the future may bring. Therefore, I believethat an essential key to success is that the entrepreneur also be an

"educated" risk taker.... "

Pinson continues: "I think that there is a general admiration for the

entrepreneur who has a skill and bravely jumps into the middle of the

fire hoping not to get burned. If he makes it, he is our shining example

of who we want to be. If he does not, we say, "Oh, well" and pay no

heed to the plight of his venders, associates, and customers who have

been burned in the process. The view, though, I think is rapidly

changing because a large percentage of American entrepreneurs have


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not been successful. Their industry knowledge and skills have been

everything we could hope for......but their business skills have been

sorely lacking. I think it is now recognized that the "educated risk taker"

will win the race."

Many entrepreneurs feel that running a business offers far more

security than being an employee. Entrepreneurs often argue that you

can acquire wealth much faster if you own a business and you can build

a buffer of personal financial security. Further, an entrepreneur's

continued paycheck isn't dependent upon a single employer whosefaulty business decisions could lead to being laid off. So, while some

people see starting a business as more risky than conventional

employment, other people see it as less risky.

Pinson's second point is the growing awareness of "professional

entrepreneurship." Today, more people aren't just starting onebusiness. They are starting one business followed by another and often

another. Such entrepreneurs are sometimes called "serial

entrepreneurs." Sometimes these people become angel investors who

invest their own money into start-up companies. The more you

understand about business and entrepreneurship, the better your

chance of succeeding in business. Become an educated risk taker.

Pinson reminds us that entrepreneurs have a certain responsibility not

only to themselves but also to their customers, suppliers, and

associates.


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GillianMurphy, leader of San Joaquin Delta College Small Business

Development Center, says: "An entrepreneur is not static but

fluid...continues to seek opportunities and/or different methods of

operation. When I think of someone with 'an entrepreneurial spirit,' I

think of a person who will do whatever it takes to be successful in

business, e.g., A former client wanted to open a business in a specific

strip mall. However, there were no vacancies. He sought out a business

that didn't appear to be very healthy. The business owner agreed to my

client's suggestion of dividing her premises, leaving her with reduced

rent, inventory needs, and general operations. In turn, my client

"found" a location where he could operate his business."

Bernard Kamoroff, entrepreneur, owner of Bell Springs Publishing, and

author of the highly-regarded and bestselling book (over 500,000

copies sold), Small Time Operator: How To Start Your Own Small

Business, Keep Your Books, Pay Your Taxes, And Stay Out Of Trouble!

says: "The original dictionary definition of entrepreneur is one who

undertakes to carry out an enterprise,' the words entrepreneur and

enterprise possibly having the same root. But people who do call

themselves entrepreneurs I find usually think of themselves as more

than 'just' a business owner carrying out an enterprise. They view

themselves more as a swashbuckler, business adventurer, risk taker.Inc. Magazine in particular likes to promote this image. Me, personally,

I do not make the distinction in my books. One of the fun things of

being your own boss is giving yourself whatever title you like."


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BACKGROUND

Entrepreneurs choose a level of personal, professional or financial risk

to pursue opportunity.

Entrepreneurs tend to identify a market opportunity and exploit it by

organizing their resources effectively an outcome that changes existing

interactions within a given sector.

Business entrepreneurs are viewed as fundamentally important in the

capitalistic society. Some distinguish business entrepreneurs as either

"political entrepreneurs" or "market entrepreneurs," while social

entrepreneurs' principal objectives include the creation of a net social

benefit.

Other entrepreneurs are necessity entrepreneurs. Entrepreneurship,

particularly among women in developing countries (Minitti, 2010)

seems to offer an improvement in the standard of living as well as a

path out of poverty. Entrepreneurship is now growing at nearly three

times the rate among women as it is among men.


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ENTREPRENEUR AS A LEADER

The entrepreneur is the main person behind a firm; she or he can

demonstrate her or his quality as a leader by choosing the right

managers for the firm.

Scholar Robert. B. Reich considers leadership, management ability, and

team-building as essential qualities of an entrepreneur. This concept

has its origins in the work of Richard Cantillon in his Essaisur la Nature

du Commerce en (1755) and Jean-Baptiste Say (1803 or 1834) in his

Treatise on Political Economy.

A more generally held theory is that entrepreneurs emerge from the

population on demand, from the combination of opportunities and

people well-positioned to take advantage of them. An entrepreneur

may perceive that they are among the few to recognize or be able to

solve a problem. In this view, one studies on one side the distribution of

information available to would-be entrepreneurs and on the other, how

environmental factors (access to capital, competition, etc.), change the

rate of a society's production of entrepreneurs.

A prominent theorist of the Austrian School in this regard is Joseph

Schumpeter, who saw the entrepreneur as innovators and popularized

the uses of the phrase creative destruction to describe his view of the

role of entrepreneurs in changing business norms. Creative destruction


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dealt with the changes entrepreneurial activity makes every time a new

process, product or company enters the market.


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ENTREPRENEUR AS AN INNOVATOR

There are so many unique characteristics that an entrepreneur

possesses, and there is no doubt in my mind that not everyone has

these characteristics. These innovators are always going to be

successful because of the way that they constantly come up with new

products and services.

Lets take a look at some of the characteristics that an entrepreneur

has:

Creativity is one of the ways that an entrepreneur will have a constant

flow of new products, services, and new markets. They seem to be

intoned with the things that people need and the follow through with

creating a way to make it possible.

Let me give you an example. If you owned a printing business and the

cost of your production was just running too high. An entrepreneur will

find a way to introduce a way to keep that high cost of production

down.

Enjoys challenges challenges are something that keeps an

entrepreneurs mind working. Entrepreneurs will spend a good portion


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of their time calculating the pros and cons. If there is not a challenge

then they will move on to a new project.

Enthusiastic, you will never find an entrepreneur to be anything less

then enthusiastic. They will talk forever about what they are passionate

about never accept anything that they do not believe in with their

whole heart.

Hardworking This is one of the reasons why an entrepreneur is sosuccessful in nearly anything that they set their minds too. These

definitely go hand and hand, with hard work follows success. If you

dont work hard then how in the world do you expect to be successful,

you wont.

Born leaders Being a leader is important for many different reasons.As a leader you will set yourself above the rest due to your effective

planning organizing skills. A leader is always respected, but not always

liked. When you are an entrepreneur you dont care about being liked

all you want to do is get the job done and done correctly. This doesnt

mean that you are not going to treat the people that you are working

with like humans, but you dont stand for anything less then hard work.

When you are an entrepreneur there is always going to be a small

amount of risk taking involved. Risk taking is part of the challenge, but

this is a well thought out risk taking. You dont just jump right into


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something without thinking it out completely from start to finish. The

risk that you are about to take must be an attainable risk, if you believe

that there is going to be a much higher risk of failing rather then

succeeding then you will need to avoid that specific challenge.Entrepreneurs choose their challenges by carefully calculating every

aspect of it.

This certain DNA structure of an entrepreneur is something that I feel

you are born with. You can learn how to become a successful

entrepreneur but a born entrepreneur is going to make it look so easy.If you want to become a successful entrepreneur then its important

that you work right along side of someone that was born with this

special DNA structure and you will begin to understand the mindset of

them.

You can find many successful entrepreneurs that are offering theirtime to teach you how you too can become a successful entrepreneur.

When you have finally made the decision that you want to have full

control over your life and its future then you should look on the

internet to find a successful entrepreneur to mimic.


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THE ROLE OF ENTREPRENEUR

By understanding your place in the economy, you can better positionyourself for success.

Entrepreneurs occupy a central position in a market economy. For it's

the entrepreneurs who serve as the spark plug in the economy's

engine, activating and stimulating all economic activity. The economic

success of nations worldwide is the result of encouraging and

rewarding the entrepreneurial instinct.

A society is prosperous only to the degree to which it rewards and

encourages entrepreneurial activity because it is the entrepreneurs and

their activities that are the critical determinant of the level of success,

prosperity, growth and opportunity in any economy. The most dynamic

societies in the world are the ones that have the most entrepreneurs,plus the economic and legal structure to encourage and motivate

entrepreneurs to greater activities.

For years, economists viewed entrepreneurship as a small part of

economic activity. But in the 1800s, the Austrian School of Economics

was the first to recognize the entrepreneur as the person having thecentral role in all economic activity. Why is that?


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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 yetunsatisfied 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 andservices. 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 toproduce 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.


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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 andservices 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'mgoing 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?

1.Identify the steps you could take immediately to operate yourbusiness more efficiently, especially regarding internal operating

systems.


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2.Tell yourself continually "Failure is not an option." Be willing tomove out of your comfort zone, to take risks if necessary to build

your business.

3.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?

4.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?

5.Imagine reinventing your business. If your business burned to theground today, and you had to start over, what would you not get

into again? What would you do differently?


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INVOLVEMENTS

GDP - composition by sector:

y Agriculture: 17.5%y Industry: 20%y

Services: 62.6% (2009)

GDP

Agriculture

Industry

Services


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Public debt:

y 59.6% of GDP (2009 est.)y 57.6% of GDP (2008 est.)

56.50%

57.00%

57.50%

58.00%

58.50%

59.00%

59.50%

60.00%

2009 est. 2008 est.

Public debt.

Series 1


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Market value of publicly traded shares:

y $1.301 trillion (31 December 2009)y $645.5 billion (31 December 2008)y $1.819 trillion (31 December 2007)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan-07 Jan-08 Jan-09

Market value of publicly traded shares

Series 1


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CONCLUSION

The Indian economy provides a revealing contrast between howindividuals react under a government-controlled environment and how

they respond to a market-based environment. The evidence presented

here suggests that recent market reforms encouraging individual

enterprise have led to higher economic growth in that country. The

reasoning here is not new, although it is refreshing to discover that this

tried-and-true reasoning applies to developing as well as to

developed nations. Specifically, reliance upon a free market, with its

emphasis upon individual self-interest in survival and wealthaccumulation, can yield a wide range of economic benefits. In India

those benefits have included, among other things, increased economic

growth, reduced inflation, a smaller fiscal deficit, and higher inflows of

the foreign capital needed for investment.

We further conclude that India can generate additional economic

growth by fostering entrepreneurial activities within its borders,particularly within its burgeoning middle class. Not only has

entrepreneurship been found to yield significant economic benefits in a

wide variety of nations, but India specifically has reached a point in its

development where it can achieve similar results through

entrepreneurial efforts. Among other things, India is poised to generate

new business start-ups in the high technology area that can help it

become a major competitor in the world economy. For example, it has

a strong education base suited to entrepreneurial activities, increasedinflows of foreign capital aimed at its growing information technology

services sector, and a host of successful new business start-ups. To

pursue further the entrepreneurial approach to economic growth, India

must now provide opportunities for


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(1) Education directed specifically at developing entrepreneurial

skills,

(2) Financing of entrepreneurial efforts, and

(3) Networking among potential entrepreneurs and their

experienced counterparts.

Obviously, the government can play a substantial role in helping

to provide thesetypes of opportunities. It can also provide the

appropriate tax and regulatory policies and help the citizens of India to

understand the link between entrepreneurial efforts and economic

prosperity. However, its role overall must be minimized so that the

influence of the free market and individual self-interest can be fully

realized.

Only time will tell if increased entrepreneurial activities in India will

actually yield the economic benefits found in so many other nations of

the world. Should India decide to pursue that avenue of economic

development, then future research needs to examine the results of

Indias entrepreneurial programme. Perhaps more important, thatresearch also needs to determine how Indias success inentrepreneurial

efforts might differ from those pursued in developed nations.

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