EXTN-355- Lecture 3.pptx EXTN-355- Lecture 3.pptx EXTN-355- Lecture 3.pptx EXTN-355- Lecture 3.pptx

EXTN-355- Lecture 3.pptx

1. Prof.R.A.Shelke

2. L ECTURE -3:- E NTREPRENEURSHIP DEVELOPMENT –  What is Entrepreneurship development ?  The process of enhancing the capacity to develop, manage and organize a business venture while keeping in mind the risks associated with it..

3. P ROCESS OF ENTREPRENEURSHIP DEVELOPMENT  Entrepreneurship development is a process involving a number of phases and steps. The process has been viewed at two level- one at the level of individual- developing entrepreneurial qualities in a individual and another at the community – creating an environment in which entrepreneurship activities can grow .

4. A] P ROCESS OF ENTREPRENEURSHIP DEVELOPMENT AT COMMUNITY LEVEL - Cycle of entrepreneurship development process at community level

5. 1. S TIMULATORY PHASE  The stimulatory activities help in the emergence of entrepreneurs in society. They prepare the background where from entrepreneurship can sprout. 1. Generating entrepreneurial awareness in the community through well-planned publicity. 2. Identifying and selecting potential entrepreneurs. 3. Helping them through training to raise their motivational level. 4. Improving their knowledge and skills in modern management methods. 5. Developing technical competence relevant to the product or service selected.

6. S TIMULATORY PHASE 6. Helping them to develop project report. 7. Making available techno-economic information and project profile. 8. Entrepreneurs to select new product. 9. Developing the data bank on new product and process available to the target group. 10. Evolving new product and processes relevant to local situation. 11. Public recognition of entrepreneurial exellence.

7. 2] S UPPORT PHASE -  The support activities provide infrastructure facilities, resources, abilities and skills to entrepreneurs for enterprise launching and management. 1. Registration of the unit. 2. Arranging finance of any type such as fixed capital and or working capital. 3. Providing land, shed, power, water, etc. for establishing the unit. 4. Guidance for selecting and obtaining plant and machinery and layout.

8. S UPPORT PHASE - 5. Helping in purchase of plant and machinery. 6. Issue of license for scarce new materials. 7. Providing common facilities. 8. Granting tax relief and other types of subsidy. 9. Offering management consultancy. 10. Assisting in marketing the product either through reservation or assigning government quota purchase, etc. 11. Providing information related to industry.

9. 3] S USTAINING PHASE -  This phase activities refer to all such efforts that facilitate growth and continuity through expansion, modernization, diversification and technology up gradation of on-going enterprises. 1. Helping in modernization, diversification, and expansion or product substitution. 2. Additional financing for full capacity utilization. 3. Deferring repayment or interest depending on the situation. 4. Help and guidance in diagnosing the cause of failure or low production or profit.

10. S USTAINING PHASE - 5. Modification or change in legislation or plicy affecting marketing. 6. Quality testing and quality improvement at low cost. 7. Creating common facilities, which are not feasible in a single unit but are needed by he unit both in production and marketing.

11. B] P ROCESS OF ENTREPRENEURSHIP DEVELOPMENT AT INDIVIDUAL LEVEL -  The human factor refer to the attitude, desire and motivation of an individual, his capability to perceive the environmental changes and opportunities as well as his ability to solve the problems An analysis of the entrepreneurship development process reveals that it follows a sequence of development of individual-personality, capabilities and abilities. The first generation of entrepreneurs requires developing following things. 1. Entrepreneurial quality and motivation 2. Capabilities for enterprise launching and resourcing; 3. Ability for enterprise management; and 4. Sense of responsibility to the society that promotes and supports them.

12. 1. E NTREPRENEURIAL QUALITY AND MOTIVATION  Generally, we find people opting for wage-earning career. This tendency spreads and popularizes such orientation.  As a result of creativity, risk taking, perseverance, innovativeness and problem solving orientation which are some of the accepted entrepreneurial qualities, are not encourage.  Efforts are made to induct people to entrepreneurial career, such entrepreneurial qualities are generally found lacking or dominant.  A basic requirement and much needed force, which drive people to their new venture.

13. 2] C APABILITIES FOR ENTERPRISE LAUNCHING AND RESOURCING -  This opportunity exists in the society but all of us are not sensitive to it.  Most of us in the society can perceive only the apparent and traditional opening for earning.  Resources are also available but very few make the efforts to make use of them.  These are to be developed through training interventions.

14. 3] A BILITY FOR ENTERPRISE MANAGEMENT  The enterprise may be small or big, demands good management abilities in its owner/manager.  The necessary determinants for sustenance of an enterprise.  The management input to the potential entrepreneurs also raise expectancy for success.  The intensity of these inputs may vary depending upon the size of enterprise that is selected by entrepreneur/ self-employed person.

15. 4] S ENSE OF RESPONSIBILITY TO SOCIETY -  The entrepreneurs who are developed and promoted at the social cost have certain responsibility to the society that promotes and supports them.  The govt. and other public institutions that invest on them also expect something in return.  The entrepreneurs have need to follow certain discipline, which is useful for entrepreneurial career.  Such discipline may cover subjects like repayment behaviour, response to tax and statutory requirements, progressive outlook towards labour and above all care for ecology and environment.