DEPARTMENT OF COMMERCE,UNIVERSITY OF MUMBAI,

In the Subject ENTREPRENEURSHIP MANAGEMENTSUBMITTEDTOUNIVERSITY OF MUMBAIFOR SEMESTER IIIOFMASTER OF COMMERCEBYNAME OF THE STUDENT: SUDAM MANGAL MERYA

UNDER THE GUIDANCE OF DR.VIVEK DEOLANKAR,HEAD OF THE,DEPARTMENT OF COMMERCE,UNIVERSITY OF MUMBAI.

YEAR 2015-2016

DECLARATION BY STUDENT

I, SUDAM MANGAL MERYA student of M.Com. Part-1I (Semester I1I) hereby declare that the Project for the Paper ENTREPRENEURSHIP MANAGEMENT submitted by me for Semester-II1 during the year 2015-2016, is based on actual work carried out by me under the supervision of DR..VIVEK DEOLANKAR.I, further state that this work in original and not submitted anywhere else for any examination.

PLACE-MUMBAISignature of Student

EVALUATION CERTIFICATEThis is to certify that the undersigned have assessed and evaluated the project on ENTREPRENEURSHIP MANAGEMENT submitted by SUDAM MERYA, Student of M.Com. Part-II.This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner External Examine Head of the Department Dr. Vivek deolankar

Internal Assessment : Project 40 MarksName of the studentClassSr. No.

First Name: SUDAMFathers Name: MANGALSurname: - MERYAM.Com. Part-II (Semester III)

Subject: ENTREPRENEURSHIP MANAGEMENT

Name of the studentMarks AwardedSignature

DOCUMENTATIONInternal Examiner(Out of 10 Marks)

External Examiner(Out of 10 Marks)

Presentation(Out of 10 Marks)

Viva and Interaction(Out of 10 Marks)

TOTAL MARKS (OUT OF 40)

ACKNOWLEDGEMENT

I, SUDAM MANAGAL MERYA, would like to express our gratitude to our DR. VIVEK DEOLANKAR for her valuable guidance, whole- hearted co-operation and generous helping in carrying out this project. Without her help, this project would not have been possible. Iwish to place on record our deep sense of gratitude to all those who contributed in one way or the other to the success in the completion of our project.

INDEX

SR NO.PAGE NO

1SIGNIFICANCE OF ENTREPRENEURSHIP

2DISTINQUISH ENTREPRENEUR V/S INTRAPRENEUR

3CHARACTERISTIC ENTREPRENEURSHIP

4TYPES OF OWNERSHIP /IMPORTANCE FACTOR

5IMPORTANCE OF ENVIRONMENTAL FACOR

7ROLE OF ENTREPRENEURSHIP

8EVALUATE THE SME AND ENTREPRENEURSHIP DEVELOPMENT

Q1. What Is The Entrepreneurship Management And Explain Significance Of Entrepreneurship Management.

Ans:- A. Introduction-The term entrepreneurship has a wide range of meaning. The business dictionary defines entrepreneurship as the capacities and willingness to undertake conception, organization and management of a productive venture wit all attendant risks while seeking profits.Schumpeters definition of entrepreneurship placed emphasis on innovation of new products, new production methods, new markets or new forms of organizations. He defined entrepreneurship as the makings of a new combination of already existing materials and forces. What drives an entrepreneur, Schumpeter says are primarily three things,a. The dream and will to found a new kingdom.b. The will to conquer.c. The joy of creating.

.This can be translated in modern language as:

a. The desire for power and independenceb. The will to succeed andc. The satisfaction of getting thins done.

According to Jarilo, entrepreneurship is a process by which individuals either on their own or inside organization pursue opportunities without regards to the resources they directly control.In Krizners view, entrepreneurship means alertness towards profit opportunities and the entrepreneurship essentially tries to discover profit opportunities and helps to restore equilibrium.Weber described entrepreneurship as economy in which peoples needs are satisfied through exchange for the sake of making profit and at ones own economic risk.Cole defined entrepreneurship as the purposeful activity of a individual , undertaken to initiate, maintain or aggrandize profit by production, distribution of economic goods and/or services.Many definitions of entrepreneurship can be found on the literature describing business processes. The earliest definition of entrepreneurship dating from the eighteenth century, used it as an economic term describing the process of bearing the risk of buying at certain prices and selling at uncertain prices.Other, later commentators broadened the definition to include the concept of bringin together the factor of production. Some of the characterstics of entrepreneurs are:1. Risk Taking:-Entrepreneurs are moderate risk takers.They enjoy the excitement of challenge, but hey dont gamble.Entrepreneurs avoid low risk situations because there is a lack og challenge. They avoid high risk situations because they want to succeed. They like achievable challenges. They do not tend to like situations where the outcome of pursuit depends upon a chance and not on their efforts. They like to influence the outcome of their pursuit by making more efforts and then experiencing a sense of accomplishment.A risk situation occur when an entrepreneur is required to make a choice between two or more alternatives whose potential outcomes are not known and must be evaluated In advance, wit limited information. A risk situation involves potential risks and potential gains.2. Self- Confidence-A man with relevant knowledge, skill and information and having successful experiences in the past possess greater degree of self-confidence. A person attempting to complex tasks and utilizing feedback for corrective measures has greater chances of success and in the process may build his self-confidence. A man with self-confidence has clear thoughts and well-defined goals to achieve in his life. Capabilities An entrepreneur gets into business or industry with a high level of self-confidence. He is able to evaluate his competences and capebilities in a realistic manner. He can set realistic and challenging goals. He is confident of achieving these goals. He possess a sense of effectiveness which ultimately contributes to success of is venture. He puts forward his case confidently and gets needed help from concerned agencies.

3. Optimist-Untapped entrepreneurial opportunities lie in a state of uncertain.nity. Different people evaluate these opportunities differently. An entrepreneur exhibits a positive and optimist attitude towards such opportunities. The entrepreneur approaches his task with the hope of success and not with a fear of failure. In the process of accomplishing his task he may also fail but he failure experience does not change his thinking. He is always an optimist in his outlook.

4. High need for achievement- The need to excel, known as achievement is a critical factor in the personality of an entrepreneurs. People with high motivation is basic in helping people to become entrepreneur. People with high need for achievement have desire for success in competition with others or with a self imposed standard of excellence.

5. Need for independence- Studies conducted on entrepreneurs indicate that their need for independence is the prime characterstics that as driven them to start their own business. These entrepreneur do not like to be controlled by thers. They have original thoughts and ideas and generally do not confirm to routine jobs and practices. They set their own challenging goals and make efforts to achieve these goals. They do not wait for directions from others and choose their own course of action. They are masters of their own activities and take full responsibility of the outcome of their actions. The independence provides opportunity for trying out new ideas and helping them to achieve their life goals

6. Creativity-Entrepreneurs are ighly creative people. They always try to develop new products, process or markets. They are innovative, flexible and are willing to adopt a change. They are not satisfied with the conventional and routine way of doing tings. They involve themselves in thinking and finding new ways of doing the things in a better way. They do original thinking and come out with solutions of any problems. Their thinking is divergent and they are on look out for new scientific theories and knowledge for improving products and processeB. SIFNIFICANCE OF ENTREPRENEURSIP MANEGEMENT- 1. Entrepreneurship aids the economy-Most economists agree that entrepreneurship is essential to the vitality of any economy, developed or developing. Entrepreneurs creates new businesses, growing jobs for themselves and dose they employ. In many areas, entrepreneurship activity increases competition and with technological or operational changes it can increase productivity as well.In the United states for e.g small business provide opportunities. 75% of the new jobs added to the American economy each year and represent over 99% of all us employees. The small business in the united states are often created by self-employed entrepreneurs. Entrepreneurs gives security to other people. They are the generators of social welfare. Carl. J. Schronm, president and chief executive officer of Ewing Marion Kauffman Foundation, said in February 2007. The foundation is dedicated to fostering entrepreneurship and Schranm is one of the worlds leading export in the field.Others agree that the benefits of small business go beyond income. However, V. Baretto administrator of the U.S. Small Business Administration (SBA), explains , smaill business broaden the base of participation in society create jobs decentralize economic power and give people a stakein the future.Entrepreneurs innovate and innovation is a central ingredient in economic growth. As per Peter Drucker said, The entrepreneurship always searches for change, respond to it and exploits it as an opportunity. Entrepreneurship are responsible for the commercial introduction of many new products and services, and for opening new markets. A look at recent history shows that entrepreneurs were essential to many of the most significant innovations, ones that revolutionized how people will live and work. From the automobile to the airplane to personal employees- individuals with dreams and determination developed these commercial advances.Small firms also are more likely than large companies to produce specialty goods and services and custom-demand items. As Schranm has suggested entrepreneurs provides consumers goods and services for needs they didnt even know they had.Innovations improve the quality of life by multiplying consumers choices. They enrich peoples lives in numerous ways- making life easier, improving communications, providing new forms of entertainment, and improving health care to name a few.Small firms in the United States, for instances, innovate for more than large ones to do. According to the small business administration small technology companies produce nearly 13 times more patents per employee than large firms. They represent one third of all companies in possession of 15 or more.patents.According to the 2006, summary results of the Global Entrepreneurship Monitor (GEM) project, Regardless of the level of development and firm size, entrepreneurial behavior remains a crucial engine of innovation and growth for the economy and for individual companies since by definition, it implies attention and willingness to take advantage of unexploited opportunities. The GEM project is a multi-country study of entrepreneurship and economic growth. Founded and sponsored by Babson College (USA) and the London Business Scool in 1999 the study included 43 countries by 2006.International and regional institutions suc as the United Nations and the Organisations for Business Corporations and Development , agree thet enttrepreneursa can play a crucial role in mobilizing resources and promoting economic growth and socio-economic development. This is particularly true in the developing world, where suceesful small business are primary enfines for job creation and poverty reduction.For all these reasons, government may wish to pursue policies that encourage entrpreneurship

2. Generation of employment- The empirical literature on the generation of employment can be categorized based on whether aggregated or disaggregated data are analysed. The unambiguous results lead to the conclusion tthat entrepreneurial firms have a disproportionately high contribution to the creation of jobs.Based on aggregated data, Boldown (1998) concludes, based on changes in employment shares of size classes of Canadian manufacturing plans, than the smallest size class , i.e plants employing fewer than 100 employees, has increased its employment share in the period 1973-1992 whereas the larger size class experienced decreasing employment shares. Johnson (2005) studying acive Swedish I.T forms in the period 1994-1998 establishes, a u-shaped relationship between an industrys average firm size and its employment growth with a minimum value for employment growth at an average firm size of around 240 employees. Shaffer (2006) arrives at a aimilar conclusion, also based on aggregated data, namely at the country sector level in the US. Shaffer study makes an increasing first attempt for including the measurement of externalities in terms of job creation. Most previous studies of employment patterns have focused on job changes within individual firms, overlooking potentially important aggregate effects that may reflect externalities and which are essential to an assessment of overall welfare. In most cases smaller establishment are found to be associated with faster subsequent growth rates of employment both with in and across sectors. 3. Contribution to productivity and growth-The contribution of entrepreneurs to productivity and growth are measured by their relative contribution to components of GDP, i.e total value added and ladour and factor productivity. A distribution is made between contribution to the level of GDP and the growth of GDP. There has been use of several indicators to measure productivity and growth assuming that the indicators are complimentary to each other. Given that the studiesw observe different periods, sample, sizes and countries while using methodologies the similarity of the findings is striking.

4. Development of managerial capabilities-The biggest significance of entrepreneurship lie in the fact that it helps in identifying and developing managerial capabilities of entrepreneurship. An entrepreneur studies a problem identifies its alternatives compares the alternatives in terms of cost and benefits implications and finally chooses the best alternative. This exercise helps in sharpening the decision mainly skills of an entrepreneurial in creating new technologies and products to place older technologies and products resulting in higher programme.

5. Creation of organization- Entrepreneurship results into creation of organization when entrepreneurs assemble and contribute physical, human and financial resources and direct them towards achievement of objectives through managerial skills.

6. Improving standard of living-By creating productive organizations, entrepreneurship helps in making a wide variety of goods and services available to the society which results into higher standard of living for the people.Possesion of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc are pointers to the rising living standards of people and all this is due to the effects of entrepreneurs.

7. Means of economic development-Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, development of managerial skills, ets and all these factors are essential for the economic development of a country.

Conclusion-The main motivation of different managers is the desire to make profits.This involves coming up with product that are affordable and are demanded by numerous customers. They also create employment opportunities benefiting the community.There are numerous roles of entrepreneurs in various organizations. An example of their role is that their role is that they are always required to coordinate and interact with different employees. It is also their responsibility to handle, share and analyze information in an organization. They are also the go-to people expected to make final important decisions in a company.There are various ways of managing a company. Some entrepreneurs may opt to establish a power base and launch various connections needed for the success of an organizations. Some entrepreneurs are also exsperts in handling and analyzing complex situations. Most entrepreneurs are also expected to learn how to communicate, monitor and innovate and delegate responsibilities to their staff.Entrepreneurship requires individual to first come up with an appropriate policy. A policy is a plan of action that should be strictly followed in order for the enterprise to be successful. A policy should always be simple and flexible for ythe employees to be able to understand it. It is normally used by many entrepreneurs to make appropriate decisions. It usually contains main goals of organizations.Entrepreneurs are also required to come up with appropriate business strategies. There are three functions of management in every organizations. These b functions are planning, implementation and evaluation..

Q2. Distinguish Between Entrepreneur, Intrapreneur, Entrepreneurship And Manager. Enumerate The Type And Functions Of Entrepreneur.

Ans: A) Introduction-There is generally no accepted definition or model of entrepreneur. Much of the literature on entrepreneur is fragmented and highlights divergent views. In the past decade, a number of trends have emerged with distinguish between individual entrepreneurship and corporate entrepreneurship and entrepreneurs and small business owners. The literature abounds with criteria ringing from creativity, innovation, risk taking, high need achievement, etc, to personal traits such as appearance and style. Models of the entrepreneurial leader are almost as plentiful as the number of authors who write about them.Entrepreneur is an innovator who introduces something new to the economy to the economy, a new method of production not yet tested by the experience in the branch of manufacture concerned, a products with which the customers are not familiar or of new hither to unexploited, and other similar innovations.J.B.Say, while defining entrepreneur laid emphasis on bringing together of factor of production and the provision of continuing management as well as risk bearing.An entrepreneur possess a complex personality , certain personality characterstics make him quite different from an ordinary human being. Some of the characterstics which constitute his personality are inborn and some are acquired in the process of socialization. However, it has been proved that most of the entrepreneurial traits are present in him to some extent in latest form by well structured tranning and development programmes. The important entrepreneurial traits are:1. Risk-taking2. Self-confidence3. Optimist4. High need for achievement5. Need for achievement6. Need for power.7. Creativity8. Foresight9. Effectiveness10. Imaginative11. Respect for feedback and learning from experiences12. Future oriented.Intrapreneur and Entrepreneurship-Intrapreneurship shows many of the key aspect of traditional entrepreneurship. Intrapreneurship is the process in which innovative products or processes are developed by creating an entrepreneurial culture with in an existing organization. An intrapreneur is an established company takes hands on responsibility for creating innovation of any kind within the organization. The intrapreneur may be the creator or inventor but is always the dreamer who does and figure out how to turn an idea into a profitable business activity.Intrapreneurship also have some significant differences. Looking at the similarity first but focus on innovation. The innovation may be in the form of new products or services, new processes or management methods. Both focus on creation of value added products or services. Something new and different must be developed in order for the process to be entrepreneurial. But require investment in activities that are more risky than normal. Individual entrepreneurship risks, the entrepreneurs time and capital. Intrepreneurship risks he capital of the parent companies, and takes attention away from its existing products. Intrepreneurship is also sometimes termed as corporate entrepreneurship by some authors.The difference between entrepreneurship and intrapreneurship is perhaps more dramatic than the similarities. Intrapreneurship is often restorative whereas individual entrepreneursip is developmental. Restorative action is taken to counter the suggestion with in a large organization. Intrapreneurship can restore growth and innovation to an otherwise traditional or slow growth company. It is restorative in the sense hat it restores entrepreneurial culture to an organization that perhaps long ago became overly structured and heirarical. Individual entrepreneurship on the other hand, create something out of noting. It develops products or process where none existed before. In the case of new venture, even the entity is itself new.A second difference between individual entrepreneurship and intrapreneurship is the firm antagonism. In case of individual entrepreneurship, the enemy is the market. The task for the entrepreneur is to overcome obstacles within the market in order to preserve and become a competitive force. But in the case of intrapreneurship, the corporate culture may be the primary foe. Depending upon the relationship, the company itself can stifle the very entrepreneurial culture and process it seeks to encourage. Thus in addition to overcoming market obstacles, the corporate entrepreneur may also have to overcome organizational hurdles, blocks and mindsets.A third difference is that entrepreneur has the acess to the company funds, manufacturing facilities, marketing network and other support facilities provided the venture opportunity warrants it. The individual enterprise, on the other hand has to use his personal wealth or scramble to obtain funding and support from various outside sources.A fourth difference is that ntrapreneur does not have the ownership of the new venture created nor is he completely independent whereas an individual entrepreneur is completely independent and has complete ownership of the new venture established by him.Entrepreneurship is technical institutions in is purest sense, is a contradiction as it is profit-oriented requires risking ones own capital and assumes the creation of a new business enterprise. Yet the concept of intrepreneurship can be applicable to technical institution almost as well as it can be to large corpoaration. Technical institution can form a fertile ground for intrepreneuring through restorations and strategic planning. Accademic environment of a technical institution is more conducive for creative work and innovation. Development of new products and services can be taken up by a group of teachers and students who have entrepreneurial qualities.Difference between entrepreneur and Manager-

EntrepreneurManager

1.

2..

3.

4.

5.Motive-The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification.

Status-An entrepreneur is the owner of the enterprise.

Risk Bearing-An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in running the enterprise.

Rewards-The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain.

Innovation-Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customer. Hence, he acts an innovator also called as change agent.But the main motive of the manager is to render his service in an enterprise already set up by someone else.i,e entrepreneur

A manager is the servant of the enterprise owned by the entrepreneurs.

A manager I as a servant does not bear risk involved in the enterprise.

A manager gets salary as reward for the services rendered by him in the enterprise. Salary of a manager is certain and fix.

But what a manager does is simply execute the plan prepared by te entrepreneur. Thus a manager simply translatesentrepreneurs idea into practice.

Difference between entrepreneur and entrepreneurship-

1. 1. Technically speaking, what an entrepreneur does should be entrepreneurship. 2. But entrepreneur word has got diluted with the passage of time and all business owners and those starting a venture on their own are simply called entrepreneurs. 3. Entrepreneurship is a rare attitude of having the ability to look at the future and goals opportunities when there exist none for common people and implement new ideas and innovations.4. In todays time, all entrepreneurs may not possess entrepreneurship..

Difference between entrepreneur and intrapreneur-

EntrepreneurIntrapreneur

1.

2.

3.

4.

Dependency-An entrepreneur is independent in his operations.

Raising of funds-An entrepreneur himself raises funds required for the enterprise.

Risk-Entrepreneur bears the risk involved in the business.

Operation-An entrepreneur operates from outside.But an intrapreneur is dependent on the entrepreneur i.e the owner.

Funds are not raised by the intrapreneur.

An intrapreneur does not fully bear the risk involved in the enterprise.

On the contrary an intrapreneur operates from within the organization itself.

Types of Entrepreneur-

1. According to the type of businessEntrepreneurs are found in various types of business connotations of varying size.

a. Business Entrepreneur-Business entrepreneurs are individuals who conceive an idea for a new product or service and then creates a new business to materialize their idea into reality. They tap both production and marketing resources in their research to develop new business opportunity. They may set up an big establishment or a small business unit. They are called business entrepreneurs. When found in small business units such as printing press, textile processing house, advertising agency, readymade garments or confectionary. In a majority of cases, entrepreneurs are found in small trading and manufacturing business and entrepreneurship flourishes when the size of the business is small.

b. Trading entrepreneurs-Trading entrepreneurs is one who undertakes trading activities and is not concerned with the manufacturing work. He identifies potential markets, stimulates demand for his product line and creates a desire and interest among buyers to go in for his product. He is engaged in both domestic and overseas trade.

c. Industrial entrepreneur-Industrial entrepreneur is essentially a manufacturer who identifies the potential need of customers and tailors a product or service to meet the marketing need. He is a product oriented man who starts in an industrial unit because of the possibility of making new product. The entrepreneur has the ability to convert economic resources and technology into a considerable profitable venture. He is found in industrial units as the electronic industry, textile industry, machine tools or video casstte tape factory and the like

d. Corporate entrepreneur-Corporate entrepreneur is a person who demonstrates his innovative skill in organizing and managing corporate undertaking. A corporate undertaking is a form of business organization which is registered under some stake or Act, which gives it a separate legal entity. A trust registered under the Trust Act, or companies registered under the companies Act are example of corporate undertaking. A corporate individual is thus an individual who plan, develop and manage a corporate entity.

e. Agricultural entrepreneurs-Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities as raising and marketing of craps, fertilizers and oaps, inputs of agriculture. They are motivated to raise agriculture through irrigation and application of technologies for dry land agriculture products. They cover a broad spectrum of the agricultural sector and include its allied operations.

2. According to the technology use-

a. Technical Entrepreneur-A technical entrepreneur is essentially compared to a craftman. E develops improved quality of goods because of his craftsmanship. He concentrates more on production than marketing. On not much sales generation by and does not do various sales promotion techniques. He demonstrates his innovative capabiltities in matter of production of goods and in rendering of services. The greatest strength which the technical entrepreneur has is his skill in production technique.

b. Non-technical entrepreneur-Non-technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business.

c. Professional entrepreneurs-Professional entrepreneurs is person who is interested in establishing a business but does not have interest in managing or operating it once it is established. A professional entrepreneur sells out the running nusiness and starts another venture with sales proceeds such an entrepreneur is dynamic and he conceives new ideas to develop alternative products.

Functions Of Entrepreneurs-1. Planning of the project-He is the organizer to corrective idea of launching the project and to programme the structure of business.

2. Management-The entrepreneur is also responsible for the management of business. e tries to have a least cost of combination of factors of production.

3. To face risks-He faces uncertainity and bears the risk in his business uncertainity comprises those risks against which it is not possible to insure. He also faces the risk of other producers may enter the market.

4. Distribution of rewards-He is responsible of distributing the rewards to all factors of production. He pays the reward in the shape of rent, wage and interest and bears the risk of profit or loss himself.

5. Sale of products-An entrepreneur is also responsible of marketing, advertising. He wants to maximize his profits by selling his product in te market.

6. Scale of production-He decided the scale of business in according with the provision of capital. Then he takes the decision of what, where and how to produce goods.

7. Joint- stock organization-In a partnership, the entrepreneurial functions are divided between the partners. But in public limited companies, the board of directors takes this responsibility with nationalized enterprise, the entrepreneurial decisions are left to the government or a body to which government has delegated its powers.

8. Identifying entrepreneurial opportunity-There are many opportunities in te world of business. These are based on human needs like food, fashion, education etc. which are constantly changing. These opportunities are not realized by common man but an entrepreneur senses the opportunities faster tthen others do. An entrepreneur therefore has to keep his eyes and ears open and require imagination, creativity and informativeness.Q3. Discuss Te Stages In The Evaluation Of Entrepreneurship Theories Of Cantillion, Schumpter, Knight, Classical And Neo-Classical, Biological And Sociological Theories On Entrepreneurship.

Ans: Krizners Theory-According to Krizner, alertness to disequilibrium is the distinguishing characterstics of the entrepreneur. Alertness enables some individuals to intervene in the market by changing the price while other individual simply respond by changing their buying and selling prices in the light of the newly quoted price. Rather disappointingly, however, the introduction of he concept of alertness signals the end, rather than the beginning of Krizners explanation of he market process.Krizner (1973) has built his concept of entrepreneurship upon the foundation of Mises uman action theory. The basic concept of Krizners theory of entrepreneurship is alertness. Alertness leads to individuals to make discoveries hat are valuable in the satisfaction of human wants. The role entrepreneur lies in their alertness to itterto unnoticed opportunities. Through their alertness, entrepreneurs can discover and exploit situations in which they are able to sell for high prices that which they can buy for lower prices.While an neo-classical analysis(Marshall) the mail focus is the conditions necessary to sustain an equilibrium. Krizner- representing the neo Austrian approach to entrepreneurship focused on answering the question of whether a market economy works and if it does so, what is the process that leads the economy towards an equilibrium? Krizner claim that initially the economy is in disequlibrium and the competition among alert entrepreneurs leads to equilibrium. Unlike neo-classical economists, Krizner realizes that markets are not always clear, there is no perfectly informed representatives agent and for change to occur the entrepreneurs need incentives and this incentives comes from the differences among agents in terms of information and technology.According to Krizner, an improvement in the technique of production or a shift in preferences leads to change in the market share where initially there was equilibrium. If there is equilibrium in the market there is nothing for the entrepreneur to do and no exchange and profit opportunities for them since everybody will be able to carry out is initially determined exchange plans. But whenever the change has occurred, some planned activities will not be realized. Krizner states that there is no room for entrepreneurial discovery and creativity, the course of market events is for ordinate by the data of the market situation and for the system to create profit opportunities for entrepreneur, there is need for an exogenous shock to the system. Krizner argue that the economy is in a constant state of dusequilibrium due to shocks constantly hiting the economy. Furthermore economic agent suffer from, utter idnorance they simply do not know that additional information is available. In this world, he alert entrepreneurs discover and exploits new business opportunities and eliminate utter ignorance and thus move the economy towards equilibrium which is the state where no more information can be discovered.Krizners analysis of entrepreneurship identifies disequilibrium that can only be corrected by alert entrepreneurs who produce and exchange, but the emphasis is on the exchange opportunities and progress hat comes mainly from this part. He postulates that entrepreneurial progress does not depend on a great man butt it does depend on many great men, many players in the business areas. Profits from an entrepreneurship ventures may not usually be very large and in some cases before the break-even point is established, the returns may be negative. Since there is lot of uncertainity in the business environment profits is always a speculative affairs b the entrepreneur and therefore an entrepreneurship is an risk-taking act.

B. Cantillion Theory-This theory does not view the entrepreneur as a production factor as such but an agent that takes on risk and thereby equilibrates supply and supply in the economy. In a neo-classical framework, this functions resembles that of the optimizing residual claimant e. the business owner who rents labour and capital from workers and land owners in a world of uncertain deman or production.

C) Knights Theory-According to kniht the main function of the entrepreneur is to assume the uncertainty related to those events, thereby shielding all other stakeholders against the entrepreneur. It could be argued that the innovating role o entrepreneur was already identified or atleast mentioned by Marshall. Knight view an entrepreneur in terms of risk, uncertainty and profit. Knight recognized the distinction between risk and uncertainty. He latter is uninsurable since it relates to unique events, e. a shift in consumer taste. According to Knight,the main function of the entrepreneur is to assume the uncertainty related to these events, thereby, shielding all other stakeholders against it, i.e the entrepreneur exercises judgement over this unique situation the uncertainty in the economy and the function as an insurance agent.KNIGHT EXPLICITLY ARGUES THAT ENTREPRENEURS ARE OWNERS OF COMPANIES I.E RESIDUAL CLAIMANTS AND THUS RECEIVE PROFITS. In order to earn a positive profit, the entrepreneur carries out three tasks-1. He initiates useful changes or innovations.2. He adopts to changes in the economy development.3. He assumes the consequences of uncertainty related to the company. Hence , in this later it can be argued that the knight theory of entrepreneurship is a refinement of the theory by Cantillion. The latter also argued that entrepreneurship is closely connected to rick or uncertainty but did not recognize the important distinction between the two. However, the Cantillion entrepreneur is also an arbitrager who ensures that the economy is in equilibrium a function which is not entrusted.

D. Schumpeter theory-Schumpeter perhaps more than any other writer, is very explicit about the economic factors of the entrepreneur. The entrepreneur is the prime mover of in economic development and his function is to innovate, or to carry out new combination. Five types of innovation are distinguished- the introduction of new product, the introduction of new method of production, the opening of new market, in particular export market in a new territory, the conquest of new source of supply of raw-material or half-manufactured goods and the creation of a new type of industrial organization, in particular the formation of a trust or some other type of monopoly. Anyone who performs the function is an entrepreneur whether he is an independent businessman or a dependent employee of a company such as manager or director. Not all businessmen are entrepreneurs the typical entrepreneur is the founder of a new firm rather tan the manager of an established one.Schumpeter is adamant that the entrepreneur is not a risk-bearer. Risk bearin is the function of the capitalist who lends his funds to the entrepreneur. The entrepreneur bears the risk only in as far as his own capitalist. Unlike Knight, Schumpeter does not perceive much problem of moral hazard for a capitalist lending to an entrepreneur.The entrepreneur of earlier times was not only as rule a capitalist too e was also often as he still is today in the case of small concerns- his own technical expert, so far as professional specialistwas not called in for special cases. Likewise he was often his own personal manager, and sometimes even though as a rule, he, of course employed solicitors, his own legal advisers in current affairs. And it was performing some or all of these function regularly filled is days. The carrying out of new combinations van no more be a vacation than the making and execution of strategical decisions, although it is this function and not routine work that characterizes the military leaders. Therefore, entrepreneurs real function must always appear mixed up with other kinds of activity, which as a rule must be much more conspicuous than the essential one. Hence, the Marshallan definition of the entrepreneur which simply treats the entrepreneurial function as management in the widest meaning.Schumpeter believed that talented entrepreneurs were a very scarce breed. Their scarcity lies not so much in their alertness, or in their professionalism as in their psychology. While entrepreneurs are rational economic men their objective is not the puysuit of consumption in the usual sense of their word.Schumpeter himself was a very cautious about relying upon major innovations and their consequent economies and spinoffs as an explanation for the clustering of innovation observed during the business cycle. Basically, e regarded waves of innovations and their creative destruction as a basic phenomenon of capitalist economic development so much so that he dated the origin of capitalism from the first appearance of these waves. He recognized that the waves could take very different forms in different times and places.a. Classical and neo-classical theories-A treatise on political economy or the production, distribution and consumption of wealth, the entrepreneur plays a central co-ordinating role both in production and distribution. Also within the firm, he is the co-ordinator, the model leader and manager says, is the first economist who stresses that managerial role of the entrepreneur compared to other classical economist says gives a very prominent position to the entrepreneur in the entire system of production and consumption. He extends the entrepreneurial functions as defined by Cantillion. However, by treating entrepreneurship mainly as a superior kind of labour.The entrepreneur function within the distribution sector is to gather the revenues from the products sold and to distribute these amongst the several production inputs, labour from the other classes of operation capital and natural agents. These inputs are paid in a 13 remuneration according to their efforts in the form of wages, interest and rent respectively. The entrepreneur has a key position within his own enterprise, he is the coordinator, modern leader and manager. However, the entrepreneur should perform tasks specific to the trade as well and he will also supply his own capital. A successful entrepreneur should have many qualitites. The combination of various tasks requires a combination of many qualities that are not often found together. Says classical economy all prices are determined by supply and demand.Neo-classical theory-Early neo classical economists mainly represent by a Marshall and A.C.Pigou paid considerable attention to the 14 theory of entrepreneurship. However the formulated model of the majority of later neo-classical economist did not sudstaintially contribute to the theory of entrepreneurship. Current research methods, especially, in micro-economics and also in entrepreneurship. The neo-classical model with its production function, the logic of rational choice and perfect information, leaves no room for an active entrepreneur. Obivously, the entrepreneur has been read out of the model. There is no room for entrepreneur or initiative. The management group become a passive calculator. One hears of no brilliant innovations of no charisma or any of the other staff of which entrepreneurship is made, one does not hear of them because there is no way in which they can fit into the model.However, earlier neo-classical theories paid considerable attention on the entrepreneur. The alert entrepreneur is continuously seeks opportunities (i.e innovations) to minimize costs for a given result. Consequently successful entrepreneurship obviously require specific skills and capacities. The general ability depend on family.In this standard analysts, the study of the business is very similar to that of the customer. There is a of difference, however, which is the result of technical determinants and not another group of questions which should be included inside this box of so called business organization problems. Therefore, there is no need no room for entrepreneurial action. In summary, neo-classical entrepreneur is only interested in the result, a certain quantity of products which will be sold in the market. How the production is made- a purely technologiacla function. The neo-classical presents an unrealistic partial conception of the firm and the entrepreneur.

b. Biological theories-According to Eagly (1995) several of the academic theories of gender differences offer explanation based on deeply sealed cultural or even biological difference between men and women. The practioner literatures are also particularly likely to emphasize gender differences, continuing them as a core aspects of what is means to be a man or a woman in the entrepreneurial process. However, other especially role based theories emphasize that gender difference in behavior should be expected to change along with other social changes.Risk has long been a central concept in the entrepreneurship literature suggested by Adam Smith. Psychologists have documented moderate and consistent levels of difference between men and women in risk-taking behaviours. An analysis of 150 studies examining such differences found some evidence of a temporal trend towards smaller differences, but still found that men were significantly more likely than women to engage in 14 0f 16 types of risky activities. Their results showed that males took more risks even +when it was clear that it was a bad idea to take risk and the females seemed to be disinclined to take risk even in fairly risky situations or when it was a great idea. Psychologists view explain why a women are risk averse and are skeptical into a ventureing in unfamiliar territories as regards business operations. Risk-taking is one of the entrepreneurial competencies that can propel a business to growth and innovation that ultimately may make a difference between enterprise to be successful. Risk avertness may contribute immensely to business failure and collapse. This might explain why women enterprises fall within five years of their establishment or at start up.

c. Sociological theories- Entrepreneurial ventures are clearly social entities from the very beginninng because even solo ventures implicitly involve a choice not to store ownership with others in the founding process. How a venture begins and whether others are recruited to join the effort can have lasting consequences for its performance and survival. Entreprises can be formed as a result of teams. Entrepreneurship has a psychological contract involving a give and take transactionary relationship in the form of framework involving two or more individuals who jointly establish a business in which they have an equity interest. Tese individuals are present during the pre-start up phase of the firm, before it actually begins making its goods or services available to the market. By this definition, a person must be involved from the beginning and also must have an equity stake in the venture to be considered a member of the team. Much of the literature is based on the assumption that teams are a deliberate choice of a lead entrepreneur or a set of founders.Q4. Comment On Attribute And Charaterstics Of A Successful Entrepreneur And Portray Entrepreneur Culture And Entrepreneurship Promotion In India.

Ans: Attributes of a successful entrepreneur-1. Full of determination-When you set out to become an entrepreneur it will require you to set very clear goals along the way. Growing your business increasingly safetly several micro-gultches witin them to be executed successfully. This type of workload and challenge is enough to stop many people from pursuing the entrepreneurial career path. You have to be determined from the beginning to be successful before you even start. If you arent fully determined to make it there is a good chance you will crumble under the pressure.

2. Not afraid to take-risk-Some of the most successful entrepreneurs took major risks, and they paid off in a big way when most people hear the worst risk they relate it to a financial risk but in the case of Corcoran, the initial financial investment wont very risky. The risk came into play when he went all in developing 100% to making her businesss work with such a small amount of seed capital.3. High level of confidence-Entrepreneurs that have a high-level of confidence are able to get the job done even under the most stressful conditions. They understand the big challenges breed big-rewards. This mentality allows successful entrepreneur to spot an opportunity when most just see a possible change.

4. Graves learning-You have to stay sharp and that requires that you are constantly learning. Industries constantly changes and evolve only those that are also growing through constant learning will stay ahead. You will always ave competitors breathing down your neck trying to suppress you. There will always be someone claiming to be the next greatest thing.

5. Understands failure as part of the game-If entrepreneur understand that failure is a part of being an entrepreneur, they will take those failure and use them as learning experiences, evwen failing will teach more than ever learn in classroom.6. Passionate about his or her business-Passion fuels the drive and determination required to be successful whether you are building a company from the ground up or buying an internet business that already has a proven track record.

7. Highly adoptable-If entrepreneurs had the ability to see what was hiding around each turn it would make it much easier but unfortunately that is not the case. There can be surprises around every corner even with a well thought out plan and strategy.

8. Good understanding of money management-It doesnt matter if you are bootstrapping your business using personal credit cards or have millions of dollars from investors-you must have excellent money management skills. Poor financial decisions such as overspending or allocating funds to less important tasks can quickly run business.

9. Expert at networking-A large collection of business cards and a huge contract list doesnt make you an expert at networking. Building value-based relationships that are truly meaningfull is what networking is all about- there are the relationships that lead to business opportunities and long-term relationships that are mutually beneficial.

10. Ability to sell and promote-If you watch the T.V shows Shark tank that you have certainly heard Mark Cubin tell entrepreneurs on several is an absolutely essential part of being a successful business owner.

Charaterstics Of Successful Entrepreneur-

1. Plan everything-Planning every aspect of your home business is not only a must, but also builds habits that every home business owner should develop implement and maintain. The act of business planning is so important because it requires you to analyse each business situation, research and complete data, and make conclusion based mainly on the fact as revealed through research.

2. Manage money wisely-The lifeblood of any business enterprise is cash flow. You need it to buy inventory, pay for services, promote and market your business, repair and replace tools and equipments and pay yourself so that you can continue to work. Therefor, all home business owners must become wise money managers to ensure that the cash keeps flowing and the bills get paid.

3. Ask for the sale-A home business entrepreneur must always remember that marketing advertising or promotional activities are completely worthless, regardless of how clever, expensive or perfectly targetd they are unless one simple thing is accomplished ask for the sale. This is not to say that being a great sales person, advertising copy writing whiz on public relation specialist isnt a tremendous asset to your business.

4. Remember its all about the customer-Your homr business is not about the products or services that you sell. Your home business is not about the prices that you charge for your goods and services. Business is all about customers, or clents, period. After all your customers are the people that will ultimately decide if your business goes boom or bust. Everything you do in business must be customer focused including policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website.

5. Project a positive business image-Entrepreneur must go out of their way and make a conscious effort to always project the most professional business image possible. The majority of home businesss owners do have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers.. Instead they must rely on imagination, creativity and attention to the smallest detail when creating and maintaining a professional image for their home business.

6. Level the playing field with technology-One of the most amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a $50 million company and nonody knows the difference. Making sure that keeping with high tech would as it suits your needs. The best technology is that which helps to impress customers.

7. Create a competitive advantage-A entrepreneur must have a already defined unique selling proposition. This is nothing more than a fancy way of asking the vital question. What one aspect or combination of aspects is going to separate your business from competition.

8. Be accessible-Entrepreneur must remain congizent of the fact that new people will work hard go out of their way, or be in convenience just for the privilege of going their hard earned money. Making it easy for people to do business which mean that they must be accessible and knowledgeable about products and services.

Entrepreneurship Culture In India-Young Entrepreneurs Summit (G20 YES) held in France this month. 98% of Indian entrepreneurs who were surveyed for this report agreed with the statement that Indian culture encourages entrepreneurship, as compared to 80% for the rapid growth markets and 72% for the mature economies.The report is based on a survey of 1000 entrepreneurs across the G20 nations, and outlines each countrys areas of potential improvement, recommending actions for governments and entrepreneurs. It notes that innovation and promotion of success stories can enhance the culture of entrepreneurship, adding that in India, the influence of the family, the direct environment and the media have had a strong impact in improving the perception of entrepreneurship in the last five years.Says Farokh Balsara, Partner and National Leader Entrepreneur Of The Year Program,We have always known India to be a hotbed of entrepreneurship, despite the hurdles in its business and regulatory environment. Indian entrepreneurs have made their mark both in India as also at a global level. This survey further substantiates the countrys premier position as an emerging hub for entrepreneurial activity and innovation.The EY Entrepreneurship Barometer highlights five key pillars to build a successful enterprise environment -entrepreneurship culture; education and training; access to funding; regulation and taxation; coordinated support.Indias potential, says the report, is still to be fully grasped, with a third of the Indian respondents rating the country as the most favourable business environment out of the G20 countries. According to the survey, there has been a 5.5% decline in costs of starting up a business in India since 2005, while the time to start a business in India has reduced from 56.5 days in 2005 to 29 days in 2010. 71% of Indian respondents recommended a further simplification of procedures to start a business.The report adds that the implementation of the twin tax policy initiatives the Direct Taxes Code and the Goods and Services Tax would be significant in removing the current complexities and bringing simplicity, efficiency and greater certainty in the tax laws for businesses in general, and small and medium enterprises (SMEs) in particular. These reforms would rationalise the tax structure, reduce transaction and compliance costs and would be instrumental in reducing the litigation and controversies that presently surround the tax system in India, it said.According to the report, 80% of Indian entrepreneurs reported improved access to funding, including bank loans. However, steadily rising interest rates could weigh on lending growth in the future, it cautions. A large majority (80%) reported that funding from PE had improved since 2005. A 523% growth has been registered in PE investment since 2005. IPOs were seen to have improved in terms of the access to funding they provide, by 67% of Indian entrepreneurs.For 61% of Indian respondents, access to funding from business angels has improved, a smaller proportion compared with some of the other funding instruments. This is common with other rapid-growth markets, where business angels tend not to play as large a role as they do in mature markets. Alongside, these improvements in funding access in India from 2005 to 2010, 67% still rated access as difficult overall.Interestingly, 94% of Indian entrepreneurs think that promoting success stories to students is a key priority to improve student perception of entrepreneurship as a career option. 67% felt that students need to follow specific training to become entrepreneurs, as compared to an average of 80% for the rapid growth markets and 59% for the mature economies.While a leading 84% felt that support from entrepreneurs clubs and associations have improved in India, they were not so enthusiastic about the coordination between the different bodies.

Entrepreneurship Promotion In India

It's a known fact that India, today, is an emerging economy that is destined to achieve milestones, on various fronts, in the near future. However, for India, to acquire the status of a "developed" nation, it needs to create 100 million jobs, statistics point out!Experts confirm, in an endeavour to achieve this mark, tapping the potential of the unemployed and exploring opportunities in the employment market, so that each and every person plays a crucial role in contributing towards the growth of the Indian economy is necessary. However, how can one create 100 million jobs? And the million-dollar question is which industry will absorb people and bridge the employment gap? While experts are busy contemplating the possibilities of the army, the railways, the government and the private sector to recruit, speculations about the difficulty in employing in such huge numbers continue to persist.So, is there any solution to this problem? The answer is entrepreneurship! With several organisations understanding the importance of entrepreneurs and the ways in which they can create jobs for the unemployed, thus paving the way for an enriching economy, they are partnering with several expert bodies such as institutes, financial firms, etc. to foster all kinds of entrepreneurship- rural, ICT, social, etc.Partners in growthIndia has almost 300 million youth, but only 100 million jobs. Therefore, the country faces a 200 million employment gap. And Amy Christen, Vice President, Corporate Affairs & General Manager, Networking Academy Operations, Cisco Systems, Inc. believes that this gap can be bridged through self-employment and entrepreneurship-driven employment."We strongly believe in the entrepreneurial spirit of India's youth. In order to support entrepreneurship, the right framework, funding and mentoring needs to be provided. Entrepreneurs and small businesses are always most vulnerable in times of crisis when funding becomes dearer and difficult to come by. While others may put their efforts on hold during this economic crisis, it should be India Inc's organisations' corporate social responsibility to continue to fulfill their vision and commitment to this effort.She also adds that the financial crisis has created opportunities for start-ups. "There are good people available who are more willing to join start-ups; salaries are more reasonable and therefore within the reach of smaller companies; and young people, having learned that jobs in large companies are not necessarily "safe", may be more inclined to start off on their own," Christen adds. Hence structuring programmes to maximise the chances of success among young entrepreneurs and ensuring that entrepreneurs have strong mentoring and training to succeed in their business ventures, is vital.Cisco, in a quest to achieve just that has collaborated with Small Industries Development Bank of India (SIDBI) and Tiruchirappalli Regional Engineering College- Science and Technology Entrepreneurs Park (TREC-STEP), a science and technology Entrepreneurs Park to promote information and communications technology (ICT) entrepreneurship and innovation in the country.In this endeavour, SIDBI will finance small ICT businesses in India which will be run by current and/or former Cisco Networking Academy students, Cisco will subsidise the interest repayment and guarantee fees on the loans and TREC-STEP will provide customised training and mentoring to participants in the pilot. The new entrepreneurship pilot program will initially involve ten ICT businesses in Tamil Nadu. "With job opportunities only available to approximately one-third of India's youth, entrepreneurship development is a critical part of the country's future.And such partnerships aim to nurture innovative thinking in small enterprises and support them with the financial resources to transform those ideas. Such programmes aim to foster an entrepreneurial environment that helps small businesses contribute to India's overall economic development," said Rakesh Rewari, Deputy Managing Director, SIDBI.Partners in progressIf you look at the last two decades of economic growth, it has been, solely, due to the rise of various entrepreneurial start-ups in this country, primarily in the IT and ITeS sectors, experts say. Entrepreneurship, even in the future will drive economic growth, they confirm. "In the next two decades, I foresee an opportunity in the social entrepreneurship domain that will positively influence the global economy. With over 70 per cent of the population still working in the agricultural sector, 90 per cent of the jobs are still driven by this industry. Come to think of it, the country has been chugging along, only because of the emergence of small and medium start-ups in this sector," adds R Sreenivasan, Co-Founder, Career Launcher that has initiated partnerships with central and state governments to encourage youth to start their own small entrepreneurial ventures.

Q 5) What Are The Different Ownersip Types Amd Explain Importance And Factors Influencing The Selection Of Ownership Types.

1)Sole TraderA sole proprietorship is one person is one person business that is not registered with the stake like like a limited liability company or corporation. they have to do anything special or file any paper to set up a sole proprietorship. Sole proprietorship is in seperable from its owner as one and same.2)PartnershipSimilarly , a partnership is simple a business owned by too or more people that havent field paper to become a corporation or a limited liability company. They dont have to file any paper work to form a partnership. The arrangement begins as soon as they starts a business with another person as in a sole proprietorship. The partnership owner pay taxes on their shares of the business income on their personal tax.3)Limited PartnershipLimited partnership are costly and complicated to set up and run, and are not recommended for the arrange small business owner limited partnership are usually created by one person or company who will solicity investment from other. The general partner control the limited partnership day to day operates and is personally liable for business debts. Limited partner are minimum control over daily business decision or operates.4) Corporate And LicsForming and operating an lic or a corporator is a bit mere complicated and costly.but well worth the trouble for some small business. The main benefit for lic are a corporator is that thes structures limit the owner personal liability for business debts and court judgement against the business. like corporation lic provides limited personal liability for businessdebts and claims, but when it comes to taxes lic are more like partnership the owner of on lic pay taxes on their shares of the business.5)Non Profit CorporatorsA non profit corporators is a corporation formed to every out a charutable education. Religious, literacy or sciencetific purpose. A non profit can raised much needed fund by soliciting public and private grant money and donation from individual and companies. The fedral and state governments do not generally take non profit corporator on money they take in that is related to their non profit purpose.because of the benefit they contribute to the society

6)Co-operationSome people dream of forming a business of true equals-an organisation owned and oprerates democratically by its member.these grassroots business as agroup, collective or co-op but these are often informal rather than legal labels.

FACTORS INFFLUENCING IN SELECTION OF OWNER TYPE 1)Nature Of Business ActivityThis is important factors having a direct bearing an the choice of a form of ownership. In small trading business professional and personal service trades,sole proprietorship is predominant . besides partnership is also advantageous in case of manufacturing activities on a moderate scale.2)Scale Of OperationThe second factor that effect the form of ownership organisation is the scale of operation. If the scale of operation of business activities small, scale proprietorship is suitable. If the scale of operation is modest neither too small or too large partnership is preferable where as in case of large scale of operation the company form is advantageous.3) Capital RequirementsCapital is one the most crusial factor affecting the choice of the particular form of ownership,organisation , requirement of capital is closely realated to the type of business and scale of operation.entreprise requiring heavily investment should be organised as joinst stock companies.4)Degree of control and managementThe degree of control and management that an entrepreneur desing to have business offects the choise of ownership organisation. In sole proprietorship owners management and entrepreneur has complete control over business. In partnership management and control of business is jointly share by partner.5)Degree Of Risk And LiabilityThe size of risk and willingness of owners to bear it is an important concideration in the selection of a legal form of ownership organisation. The amount of risk involved in a business depends amang other on the nature and size oof business. Smaller the size of business smaller the amount of risk6)Stability Of BusinessStability of business is yet another factor that the choice of an ownership organisation . a stable business preferred by the ownership in safer as it help him in attracting suppliers of capital. Who took for safety of investment and regular return and also helps in getting competent workers and manager hwo look for security of service and apportunity of advancement from this joint of views.7)Flexibility Of AdministrationAs far as possible of organisation chosen should allow flexibility of administration. The flexibility of administration is closely related to the internal organisation of a business. The manner in which organisation activities are structured in to department. Section and unit with a clear definition of authority and responsibility.

Q6.DISCUSS THE ENTREPRENEURSHIP AND BUSINESS ENVIRONMENT AND IMPORTANCE OF ENVIRONMENTAL SCANNING OF SWOT ANALYSIS?

Environmental scanning is one of four activities comprising external analysis ,is the broder activity of understanding the changing external environments that may impact the organisation in descrining external analysis .fathey and narayanan(1986 )suggest that organisation scan the environment to identify changing trend and partner monitor specific trend and patterns forecast the feature direction of these changes and patterns and assess their organisational impact .merged with internal analysis of the organisations ,vision ,mission ,strength and weaknesses.external analysis assist decision market in formulating strategic direction and strategic plans.The goal of environmental scanning is to direct decision makers to potentially is to significance external changes before they crystalize so that decision makers have sufficient lead time to react to the changes .consequently the scope of environmental scanning is broad.

NEED AND IMPORTANCE OF ENVIRONMENTAL SCANNING?

1)Identification of strenghtStrenght of the business firm means capacity of the firm to gain advantage over its competors. Analysis of internal business environments helps to identify strength of the firm after identifying the strength the firm must thus no consolidate or minimised its strength by further improvement in its existing plans policies and resources.2)Identification Of WeaknessesWeaknesses of the firm means limitation of the firm monitoring internal environment helps to identify not only the strength but also the weaknesses of the firm. A firm may be weak in some other areas for further growth and expansion of weaknesses should be identify so as to correct them as soon as possible.3)Identification Of OpportunityEnvironmental analyses helps to identify the opportunities in the market. The firm should make every possible efforts to grab the opportunities as and when they come.4)Identification Of ThreatBusiness is subject to threat from competitors and various factors environmental analysis help from to identify threat from the external environments early identification of threat is always beneficial as it helps to diffuse off some threat.5)Optimum Use ResourcesProper environmental assessment helps to make optimum utilisation of score human ,natural and capital resources. Systematic analysis of business environment help the firm to reduced wastage and make optimum use of available resources without understanding resources can not be use in an effective manner.6)Survival And Growht Systematic analysis of business environment helps the firm to maximised their strength ,minimised the weakness. Grab the opportunities and diffuse threats. This enable the firm to improve and growth in the competitive business world.7)To Plan Long Term Business StrategyA business organisation has start term long term objective. Proper analysis of environmental factors helps the business firm frame plans and policies that could help in easy accomplishment of those organisation objective without understanding environmental scanning the firm can not develop a strategy for business success.8)Environmental Scanning Aids Decision MakingDecision making is a process of selecting the best alterative from amang various available alternatives. An environmental analysis is an extremely important tools in understanding and decision making in all situation of the business success of the firm depends upon the precise decision making ability study of environmental analysis enable the firm to select best option for the success and growth of the firm

ROLE OF SWOT ANALYSIS

One of the most widely use strategic planning tools is swot .strenght, weakness, opportunity and threats,analysis. Most companies use it in one form oranother. Swot analysis is often used as basic quite for strategic planningThe work of swot analysis is often depends on the ojective insight of those management individuals who conduct swot analysis. If management for consultant manage ment is able to provide ,objective ,relevant information for the analysis are extremely useful the companyThe term swot is the acronym made up for four words. The first was various are internal to an organisation . where as the last who are external swot stands four strength ,weakness opportunity,threats.the first two are internal to an organisationa where as last two are external.

Importance Swot analysis is not only concerned with making only forur but it is much more than*swot analysis bring to light whether the business is healthy or rich.*an understanding comes to knownof both internal as well as external factors affecting its or failure* it help in the formation of a strategy so as to make preparation for the possible threats from the competitors swot analysis evalueate the business environment in a detailed manners so as to take decision for the course of action

7) Identify The Role Of Entrepreneurs In Balance Regional Developmenee

The entrepreneur who is a business leader looks for ideas 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 sparle to economic activities by his entrepreneurial decision. He plays a private role not only in the development of form and service sector.the major role played by an entrepreneur in the economic development of an economy is discussed in a systematic and orderly manner as follows.1)Promote Capital PromotinEntrepreneurs promote capital formulation by mobilising the saving of public.theyEmploy their own as well as borrowed resources for stting up their entreprenurs. Such types of entrepreneurial activities kead to value addition and creation of wealth which is very essential for the industrial and economic development of the country.2)Creating Large Scale Employment OpportunitiesEntrepreneurs provides immediate large scale employment to the unemployed which is a chronic problem of underdeveloped nation.with the setting up of more and more unit by entrepreneur both on small and large scale numberous job opportunity are created for other as time passess these entreprise grow providing direct and indirect employment opportunity to many more.3)Promote Balance Regional DevelopmentEntrepreneur helps to remore regional disruption setting up of industries in less developed and backword area. The growth of industries and business in these areas lead to a large number of public benefit like road transport, health, education, entertainment etc.

4)Reduces Concentration Of Economic PowerEconomic power is the natural outcomes of industrial and business activities industrial development normally leads to con centration of economic power in the hand of a new individual which result in the growth of monopolies.in order to redressed this problem a large number of entrepreneur needs to be develop which will help reduced the concentration of economic power amangst the population.5)Wealth Creation And DistributionIt stimulates eguirable redistribution of wealth and incomes in the interest of the country to more people and geographic areas. These giving benefit to larger section of the society entrepreneurial activities also generate more activities and given a multiplier effect in the economy6) Increasing Gross National Product And Per Capital IncomeEntrepreneurs are always as the lookout for opportunities. They explore and exploit opportunities, encourage effective resources mobilisation of capital and skill bring in new product and service and develop market for growth of the economy.in the way, they help increasing gross national product as well as per capita income of the people in a country. increased in gross national product and per capita income of the people in a contry is a sigh of economic growth7)Improvement In Standard Of Living Increased in standard of living of the people is a characteristic features of economic development of the country entrepreneur play a key role in increasing the standard of living of the people by adapting latest innovation in the productin of wide variety of good and service in large scale.8)Promots Country Exports TradesEntrepreneurs helps in promoting a country export trade which is an important in gradient of economic development. they product goods and service in large scale for the purpose earning large amount of foreign exchange from export in order to corbal. The import dues requirement . hence import substitution and export promotion ensure economic in dependence and development9)Induces Backword And Forword Linkages Entrepreneurs like to work in an environments of change and try to maximised profit by innovation . when an entreprise is established in accordance with the changing technology. It induces backword and forword linkages which stimulates the process of economic development in the country.10)Facilitates Overall Development Entrepreneurship act as catalastive agent for change which result to claim creation once an entreprise is establish the process of industrialisation is set in motion. This unit will generate demand for various types of unit required by it and there will be so many other unit which require the out put of this unit . this lead to overall development of an area due to increased in demand and setting up of more and more unit.11)Innovator In Economic GrowhtThrought the last decade of 20th century experienced growth of a large number of small entrepreneur. In india the number of innovating entrepreneur is less than the initiating entrepreneur as a result of which the country has been logging behind in morring at a pace which the international community is demand . there fore to cope with the international order.12)Generation Of Employment OpportunityEntrepreneur play a significant role in generation of employment opportunities. The development strategy of a country confronts to important problem. Employment and poverty of the masses. These problem can effectively minimized by activating the latest human potentials through entrepreneurship13)Complementing And Supplementing Economic GrowhtSchumpeters poshilates that the rate of economic progress of a country depends largely upon its rate of innovation, which in turn depend upon the entrepreneurial talents. According to schumpete, technological development can not done bring about economic growth14)Social Stability And Balanced Regional Development Of IndustriesEntrepreneur play a crucial role in bringing about social stability and balanced regional development in each and every country entrepreneur are considered as a valueable human resources. The responsibility of social stability lies on his shoulders

Q8. Critically Evaluate The Small And Medium Enterprises And Entrepreneurship Development.

Ans- Introduction-Recent decades have seen substantial growth in the range of assistance programmes for SMEs and entrepreneurs across the world. One regarded as peripheral to the economy and public policy, the role of small firms and of entrepreneurship is now recognized as of key importance in the economc growth and development strategies of many nations.The range of inventions and support focused on promoting SMEs and entrepreneurship is substantial and expanding so Government, SMEs and entrepreneurship development asks what are some of the main policy instrument being used and how effective are they? It considers policies in different countries, economies key inventions and tools used to promote entrepreneursip and SME development and concludes with contributions on how to best evaluate their effectiveness.The contributor chapters by academics and practioners from business, enterprise development agencies and government are empirical or evidence based and use both quantitative and qualitative approaches. DErawing on experience from a wide range of both developed and emerging countries and economies, the contributions focus on the broad strategies that different governments and communities have adopted to foster entrepreneurship and SMEs, the policy tools and instruments that can be used to promote small business and entrepreneurship and on the outcomes of policy instruments and the methods used to evaluate interventions. Their findings will help researchers, policy makers, economic development officers, civil servans, elected official and business associations to better understand the issues in this important field.While SMEs and entrepreneurship have recently been identified as a key engine for economic development, the implications for public policy have remained elusive. In a globally changing landscape characterized by enhanced competitive pressures, the role of effective entrepreneurship and SME policy had never been more important.

SME and entrepreneurship-Characterstics

a. The Concept Of Market Failure-The public policies to promote SMEs are normally justified on grounds of market failure. By this means, that taxpayers funds are used to provide welfare improving services that would not otherwise be provided or be inadequately provided, by private organization necessary, but not sufficient, condition for government into venture is evidence of market failure, four forms of which are relevant to SME policy. The first three relate to imperfect information, and the fourth reflects a divergence between social and private returns-

1. Individuals do not realize (are ignorant of) the private benefits of starting a business. This is frequently used to justify entrepreneurship policies such as the raising of enterprise awareness amongst young people.

2. Owners of small firms do not fully appreciate the private benefits to their business of taking certain courses of action. This information imperfection is used to justify public subsidies to promote SMEs to undertake workforce or management training or obtaining external advice from specialists or consultants or used to fund visits by SMEs to overseas trade fairs.

3. Financial institutions are unable to accurately assess the risk of lending to small firms so denying some small firms access to funds and constraining their growth. To respond to this problem, governments in many countries have introduced loan gurranttee scheme in which the state agrees to reimburse defaults on bank oans made to SMEs with viable business plans but lacking the cultural that banks would expect to be available if they were making fully commercial loans.

4. Finally, a range of SME policies reflect the divergence between private and social benefits. The best examples relate to policies to promote innovation in small firms. Here, it is argued that without subsidies there would be a socially sub-optimal formation and growth of technology based firms. The potential presence of positive eventualities is used to justify policies to promote science parks or public funding of seed equity programmes focuses on technology based small firms. Public policy to support SMEs is then justified on the grounds that the markets fails on one or more of the four grounds identified above. Policy interventions therefore seek to rectify the market failure.

b. Key policy Choices- Those responsible for formulating entrepreneurship and SME policy are faced with a number of choices. This section examine3s two key policy choices and demonstrates that the choices made by policy makers often radically between OECD countries.The first choice is over the emphasis placed on entrepreneurship as opposed to SME policy. A second choice is another to focus on lowering barriers or offering support. The nature of these choices and the decisions reached in OECD countries in turn.The important distinction between SME and entrepreneneurship policy in which the former applies to existing enterprises whereas the latter relates to policies seeking to enhance the creation of such enterprises. The distinction is shown as below-

SME policyEntrepreneurship policy

1.

2.

3.

4.

5.

6.Reducing red tape and paperwork burden

Access to capital/financing

Provision of information and services

Export and marketing services

Provision of training and consultancy

Technology transferReducing red tape and paperwork burden

Access to micro loans and seed funds.

Provision of information about start-up.

Highlighting entrepreneurs as role models.

Entrepreneurship education

Facilitating networking services.

c. Policy Delivery-Policy effectiveness however is determined not only by the policy choices discussed but also by policy delivery.There are several grounds for favouring simplicity and consistency in SME policy delivery. The first is that SMEs are of a simple organizational form at least in comparison with larger enterprises. Hence, SME policy instruments should not be complex if they are to be understood and implemented by smaller firms. The second is the SME owners, since they have a business to run regard themselves as having little time wit which to engage with government. They do not have the resources unlike many large enterprises, to employ specialist individuals for this purpose, so policies that are subject to frequent change are likely to be ignored br SME owners. A third reason is that, in general, te owner of an SME considers him or herself to be of a practical disposition focused upon customers rather than governments. For all these reasons, it might be expected that SME policy would be simple, easily understandable and cost effectively delivered. The evidence from OECD countries suggest that, if anything, the reverse is the case SME policy is remarkeably complex, delivered in a variety of very different ways for not very obvious reasons and subject to considerable changes over shot period of time, it seems remarkable to ask why this is the case. Several explanation have been proposed. All countries with SME policies face the problem of delivery, but respond to it in very different ways. For e.g SME advisory services in Sweeden are provided by public servants in a publicity owned organization.The disadvantage of having small business services provided by public servants are two fold. The first is that the creditability of these services with te SME customers may be lower, it advice is provided by public servants on the grounds that such individuals may be less well informed than consultants who are themselves in business. The second is the provision of state funded and delivered advice crowds out private suppliers who, in the absence of the state sudsidy, would be more suitable suppliers. Nevertheless, it is the case that despite these theoretical disadvantages, the services provided are well regarded by sweedish smaller firms.Policy AreaComment

1

2.

3.

4.

5.

6.

7..Control of inflation/ low interest rates/ economic uncertainity.

Low tax regime

Immigration Policy

Welfare payments-

Competition policy-

Business Regulation-

Policy delivery-Entrepreneurship is lower when interest rates are hig and self employment rates are evidenced by stability.

Tax impact is complex . Low marginal tax-rates increases self-employment effort. However, low rates also reduce the tax benefits of self-employment over being an employee. It therefore discourages individual shifts.

In migrants from anoter country are often highly enterprising individuals. Policies to either encourage or restrict immigration therefore can impact powerfully upon enterprises.

In more developed countries, the unemployed are more likely to enter self- employment then the employed. The evidence is that countries with more generous and long lasting benefit regimes have fewer unemployed individuals pushed into self-employment.

Competition amongst financial institutions is official to providing access to finance for SMEs. Where competition is imperfect financial institutions can make easy money by lending to government or large firms without having to incur costs and risks for the SME market.

As noted there is clear evidence that the difficulty of starting and operating a business varies considerably between countries. Whilst it is less clear that regulation influences the overall scale of entrepreneurship in a country. It is clear that it influences the scale that is recorded in official data.

It appears that the same policy can be effective in one country and yet ineffective in another. It also appears that the same policy in the same country can very in effectiveness overtime. Our view is therefore that economic circumstances and policy delivery influence overall effectiveness.

REFERENCE: RAJEEV ROY VASANT DESAI : HIMALAYA PUBLICATION