2019 – Solved Question Paper | Entrepreneurship Development | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University

2019 – Solved Question Paper | Entrepreneurship Development | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University



Course: 104

(Entrepreneurship Development)

Full Marks: 80

Time: 3 hours

The figures in the margin indicate full marks for the questions.

1(a) Define the term entrepreneur and entrepreneurship. Explain the role of an entrepreneur.

-> Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Entrepreneur play a key role in any economy, using the skills and initiative necessary to anticipate needs and bring good new ideas to market. Entrepreneur who proves to be successful in taking on the risks of a start-up are rewarded with profits, fame, and continued growth opportunities. Those who fail suffer losses and became less prevalent in the markets. So, an entrepreneur is:

  • A beginner in the market, who has something new to offer to society and starts right from scratch to establish and run the enterprise.
  • An innovator, who has a thought-provoking idea or concept in his/her mind, that has the capability to lead the marketplace.
  • A developer, who develops a business model, to give shape to the idea.
  • A leader, who provides guidance and support to his/her men, to work in a specific direction or change the same so as to achieve the target.
  • An incharge who is accountable and responsible for the success or failure of the venture, for the decision made by him/her.
  • A promoter, who takes all the relevant steps to turn the dream into reality.
  • A forecaster , who foresees, future opportunities and threats which can affect the venture, possibility or negatively.
  • A risk-taker, who has the ability to anticipate the risk in the future moves, and take the risk, if they are beneficial to the enterprise.


Based on the types of business:

1) Trading Entrepreneur– As the name itself suggests, the trading entrepreneur undertakes the trading activities. They procure the finished products from the manufacturers and sell these to the customers directly or through the retailer. These serve as the middlemen as wholesalers, dealers, and retailers between the manufacturers and customers.

2) Manufacturing Entrepreneur– The manufacturing entrepreneurs manufacture products. They identify the needs of the customers and, then, explore the resources and technology to be used to manufacture the products to satisfy the customers’ needs. In other words, the manufacturing entrepreneurs convert raw materials into finished products.

3) Agricultural Entrepreneur– The entrepreneurs who undertake agricultural pursuits are called agricultural entrepreneurs. They cover a wide spectrum of agricultural activities like cultivation, marketing of agricultural produce, irrigation, mechanization, and technology.

Based on the use of technology:

1) Technical Entrepreneur– The entrepreneur who establish and run science and technology-based industries are called ‘technical entrepreneur.’ These are the entrepreneurs who make use of science and technology in their enterprises. Expectedly, they use new and innovative methods of production in their enterprises.

2) Non-Technical Entrepreneur– Based on the use of technology, the entrepreneurs who are not technical entrepreneurs are non-technical entrepreneurs. They are concerned with the use of alternative and imitative methods of marketing and distribution strategies to make their business survive thrive in the competitive market.

Based on ownership:

1) Private Entrepreneur– A private entrepreneur is one who is an individual sets up a business enterprise. He/she it’s the sole owner of the enterprise and bears the entire risk involved in it.

2) State Entrepreneur– When the trading or industrial venture is undertaken by the state or the government, it is called ‘state entrepreneur.’

3) Joint Entrepreneur– When a private entrepreneur and the government jointly run a business enterprise, it is called ‘joint entrepreneurs.’

Based on Gender:

1) Men Entrepreneurs– When business enterprises are owned, controlled, and managed by men, these are called ‘men entrepreneurs.’

2) Women Entrepreneurs– Women entrepreneurs are defined as the enterprises owned and controlled by a woman or women having a minimum financial interest of 51 per cent of employment generated in the enterprises to women.

Based on the Size of enterprise:

1) Small-Scale Entrepreneur– An entrepreneur who has made investment in plant and machinery up to Rs 1.00 crore is called ‘small-scale entrepreneur.’

2) Medium-Scale Entrepreneur: The entrepreneur who has made investment in plant and machinery above 1.00 crore but below Rs. 5.00 crore is called ‘medium-scale entrepreneur.’

3) Large-Scale Entrepreneurs: The entrepreneur who has made investment in plant and machinery more than Rs 5.00 crore is called ‘large-scale entrepreneur.’


1. Self-Motivation- One of the most important traits of entrepreneurs is self-motivation. When you want to succeed, you need to be able to push yourself. you aren’t answerable to anyone else as an entrepreneur, and that sometimes means that it’s hard to get moving without anyone to make you. You need to be dedicated to your plan and keep moving forward- even if you aren’t receiving an immediate pay check.

2. Understand what you offer – As an entrepreneur, you need to know what you offer, and how it fits into the market. Whether its product or a service, you need to know where you fit in. This also includes knowing whether you are high end, middle of the road or bargain. Being able to position yourself and then adjust as needed is an important part of entrepreneurship.

3. Take Risks- Successful entrepreneurs know that sometimes it’s important to take risks. Playing it safe almost never leads to success as a business owner. It’s not about taking just any risk, though. Understanding calculated risks that are more likely to pay off is an important part of being an entrepreneur. You’ll need to be willing to take a few risks to succeed.

4. Know How to Network- Knowing how to network is an important part of entrepreneurship. Sometimes who you know is an important part of success. Being able to connect with others and recognize partnership opportunities can take you a long way as a business owner. Figure out where to go for networking opportunities and make it a point to learn how to be effective.

5. Basic Money Management Skills and Knowledge – We often think of successful entrepreneurs as “ big pictures” people who don’t worry so much about managing the day to day. And it’s true that you might have an accountant or other team members to help you manage the business. However, if you want to be successful, you still have basic money management skills and knowledge. Understand how money works so that you know where you stand, and so that you run your business on sound principles.

6. Flexibility – To a certain degree, you need to be flexible as an entrepreneur. Be willing to change as needed. Stay on top of your industry and be ready to adopt changes in processes and product as they are needed. Sometimes, you also need flexibility in your thinking. This is an essential part of problem-solving. You want to be able find unique and effective solutions to issues.

7. Passion- Finally, successful entrepreneurs are passionate. They feel deeply about their product or service or mission. Passion is what will help you find motivation when you are discouraged and it will drive you forward. Passion is fuel for successful entrepreneurship. There are many serial entrepreneurs that create successful businesses, sell them, and then create something else.


The process of launching, developing and running a business venture along with its financial risks is called entrepreneurship. In simple terms, it is willingness to launch a new business venture. It is very important for the economic development of the expanding global marketplace. A person who undertakes entrepreneurship is called an entrepreneur.

Entrepreneurship has been described as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit.” While definitions of entrepreneurship typically focus on the launching and running of businesses, due to high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to “lack of funding, bad business decision, an economic crisis, lack of market demand, or a combination of all of these.”


1) Administrative Entrepreneurship- The entrepreneurial activity under this category is centred on administrative techniques and functions. It gives a new option to handle prevailing or future situations in a more effective way that provides advantages and a competitive edge. Total quality management, job redesigning, new techniques of doing things, participative management or management by consensus are a few of the examples of administrative entrepreneurship that increase overall organizational efficiency and that makes the firm successful and sustainable in the competitive market environment.

2) Opportunistic Entrepreneurship– It is the best characteristics of entrepreneurship. Environmental changes always offer new opportunities. But everybody is not equally capable of identifying and to utilize that opportunity on time. The entrepreneurship that identifies exploits and executes that opportunity in the first hand regarded as opportunistic entrepreneurship.

3) Acquisitive Entrepreneurship– The entrepreneurship that learns from other competencies is acquisitive entrepreneurship. It acquires something new of value front, the competitive environment or achieves the competitor’s technical capacities. It keeps entrepreneurship sustainable in a competitive environment. The failure never restraints them from acquisition but motivates them further to discover such a thing with a new visitor.

4) Imitative Entrepreneurship– The entrepreneurship that imitates a good or service operating in the market under a franchise agreement is the imitative entrepreneurship. It is the medium that spread technology over the world. It adopts an existing technology with minor modifications appropriate to the local condition.

5) Private Entrepreneurship– The entrepreneurship that is initiated under the private sector is private entrepreneurship. The government gives various support services through private and public concerns that encourage private initiative in taking entrepreneurial ventures. A mutual relationship between private and public sectors would make economic development speedy and balanced.

6) Public Entrepreneurship– The entrepreneurship that is undertaken by the government through its various development agencies is public entrepreneurship. All countries, developed or underdeveloped, take a public initiative in venture ideas to fulfil the initial deficiency of private entrepreneurs.

7) Individual Entrepreneurship– The entrepreneurship that is undertaken by an individual or a family with the personal initiative is individual entrepreneurship.

8) Mass Entrepreneurship– This type of entrepreneurship emerges in an economy where a favourable climate of motivation and encouragement exists for developing a wide range of entrepreneurship among general mass is mass entrepreneurship. It increases small and medium enterprises in a country.


  • Process: Entrepreneurship is a systematic, purposeful, creative and continuous process, which an entrepreneur undertakes to run the business smoothly.
  • Innovation: Innovation is the key feature of the entrepreneurship, which creates a difference in the market place. Indeed, it helps the enterprise to introduce the product quickly, as there is hardly any company which selling the product in the market.
  • Development of Network: Developing strong connections with the parties such as suppliers, distributors, banks, debtors, creditors and many more, which are directly or indirectly related with the business process, to have a good worth, in the market.
  • Profit potential: Profit is something that keeps the organization going; in fact, it acts as a motivation for the entrepreneurs, to do better than before. So, before taking any decision regarding the enterprise, priority is given to the profit potential, i.e. while taking any step further, the entrepreneur identifies whether it is profitable or not.
  • Forecasting of Market Trends and future possibilities: The entrepreneur has to keep a close watch on the market trends and future demands so that the enterprise could continuously work to improve the products or service offered, and grow further.

Role of an entrepreneur:-

A lot of hard work goes into starting and eventually expanding an enterprise. This hard work starts with the entrepreneur and trickles down the entire organization . But this is a very broad definition and does not really appreciate and highlight the actual role of entrepreneurs with respect to their enterprises.

So to explain it in a better way, let us break it down into points about how an entrepreneur is vital to the enterprise.


The entrepreneur is the one who initiates the process of creating an enterprise by coming up with the idea for the business and planning out how to turn that idea into a reality.

Risk Taker

In an enterprise, the entrepreneur, being the owner, is the biggest risk taker. He is the one who finds the capital to back up his idea and also the person who is accountable in the face of the failure of that particular idea.

Reduces Risk

It is also one of the most important roles of entrepreneurs to reduce the risk of an enterprise failure by bringing in people that can help the organization grow. These people can be shareholders or investors that have a stake in the company and therefore are motivated to help the company succeed.


An entrepreneur procures and allocates various resources in the organization. The most important of these resources is manpower. The entrepreneur is responsible for hiring an efficient staff to help him carry out his business. This is important because a good manager can take a business to new heights, while a bad manager can destroy the business.

He is also responsible for creating an organizational structure and departments for a more efficient functioning of the enterprise.

Adhering to Legal Norms

To ensure that the enterprise adheres to legal norms and policies , such as obtaining a license is also the duty of the entrepreneur. Not pertaining to these can mean serious legal consequences for the enterprise. These could be in terms of financial losses for the organization or something even more serious such as shutting down of an enterprise.


Last but far from least, the role of entrepreneurs involve acting as a forecaster. The enterprise works in a business environment and is affected by changes occurring in various aspects of this environment . It could be internal, such as strikes, machinery breakdowns; budget cuts etc. or these could be external, such as legal policy changes, political or social unrest, technological advancements, etc.

An entrepreneur must be able to correctly forecast these changes and prepare the organization to deal with these changes.

(b) Discuss the differences between an entrepreneur and a manager. In what way an entrepreneurs different from enterprises?

-> Strictly speaking however, an entrepreneur is different from a manager. The main points of difference between the two may be described as follows:

1. Innovation: The entrepreneur does not live with the status quo. He works to change in accordance with his or her personal vision and values. He is more than an inventor. An inventor only originates the invention. But the entrepreneur goes much further by exploiting the invention commercially or by applying the invention. On the other hand, the manager keeps running a business on established lines. He is neither an inventor nor an innovator. An entrepreneur changes the factors combinations and hereby increases productivity and profit. But a manager only deals with day to day affairs of a going concern. An entrepreneur is not a mere executive through he may also be appointed as one for the promotion of his company.

2. Risk taking: An entrepreneur takes calculated risk. He is not a gambler but he faces uncertainty and the security of others. But contrast, the manager is less tolerant of uncertainty. Does not face the uncertainty of a new venture with its potentials for failure and financial loss. He does not share in business risk.

3. Reward: An entrepreneur is motivated by profit while the manger is motivatd by externally imposed goals and rewards. The gains of an entrepreneur are uncertain and irregular and can at times be negative. The salary of a manager is on the contrary, fixed and egular and can never be negative.

4. Status: An entrepreneur is self-employed and he is his own boss. On the contrary, a manager is a salaried person and h independent of his employed, the entrepreneur.

5. Skills: The roles of entrepreneur and manger demand different types of personal skills. An entrepreneur needs institution, creative thinking and innovative ability among other skills. On the other hand, a manger depends more on human relations and conceptual abilities.

6. Response to authority: One of the main features that distinguish managers from entrepreneurs is their ability to identify in a posituve constructive way with authority figures using them as a role models. This type of behaviour is largely absent in entrepreneurs. Case histories of many entrepreneurs suggest that it was their inability to submit to authority and accept organizational roles that drove them to become entrepreneurs. In a sense they were misfits who had to enact their own environment.

2(a) Discuss the essential qualities and traits of an entrepreneur.

->Essentials qualities and traits of an entrepreneur are;

Strong desire to be a winner (Needs to achieve)

Most people dream of success and achievement, but do not take any action towards achieving those dreams. People with entrepreneurial qualities, on the other hand, have a strong desire to achieve a higher goal and make their dreams come true. For them winning is achievement.

‘Stick to it ‘quality (Perseverance)

Once committed to a goal and a course of action, entrepreneurs become absorbed in it. Hey are not deterred by difficulties and problems that beset any project: they work hard until the entire project is successfully accomplished.

Moderate and calculated risk talking

Entrepreneurs are not high risk-takers; they are not gamblers. They choose a moderate risk rather a wild speculative gamble. They love a moderate risk situation, high enough to be exciting, but with a fairly reasonable chance of winning.

Alertness to opportunities-seizing and converting them t your advantage (ability to identify and develop opportunities)

Entrepreneurial persons are quick to see and seize opportunities. They show an innovative turn o mind and convert difficulties into opportunities. But they are realistic too. They carefully plan how to achieve their goals and anticipate problems that might arise in realizing an opportunity.

Analytical Ability

If an entrepreneur has analytical ability he can effectively analyse situations, problems and difficulties and identify solution s for them. This makes the management and running o the enterprise smooth and successful.

Hope for success

Achievement- oriented people tend to be optimistic even in unfamiliar situations. The odds may not be clear but the circumstances may be appealing. In such situation entrepreneurial persons see no reason for failure given their abilities. They go ahead understand, sometimes even without guidelines and frequently make the best of whatever opportunities they are. As they begin to understand their environment they start calculating their chances very closely. Thus, paradoxically, they present picture of boldness in the face of the unknown and prudence in the face of the familiar. They usually win by applying their special insight and skills.

Using feedback

Entrepreneurs like to have immediate feedback on their performance. They seek prompt and accurate data and it does not make any difference whether or not the information they get is favourable. In fact, they are stimulated by unfavourable feedback into pouring more energy into attaining their objectives.


It is found that most entrepreneurs start off on their own because they do not like to work or other people they like to be their own masters and want to be responsible for their own decisions.

Systematic Planning

Most successful people tend to set a goal for themselves and make systematic plans to achieve that goal within a certain time limit.

Copying with stress

As a central figure in your enterprises, you will have to cope with many situations at the time and make the right decisions which may involve a lot of physical and emotional stress. All this can be done if you have the capacity to work long hours and keep cool under a lot of tension.

Positive self-concept

An achiever directs his energies towards accomplishments of worthwhile goals and standards of excellence in what he is doing. This is based upon his awareness of his strengths and weakness. He uses positive knowledge to support his thinking. He is rarely negative. He has self-confidence.

(b) Critically evaluate the views on entrepreneurship put forwarded by Schumpeter, Walker and Drucker.

-> Schumpeter’s Theory:

The innovative theory is one of the most famous theories of entrepreneurship used all around the world. The theory was advanced by one famous scholar, Schumpeter , in 1991.

Schumpeter believes that creativity or innovation is the key factor in any entrepreneur’s field of specialization. He argued that knowledge can only go a long way in helping an entrepreneur to become successful. He believed development as consisting of a process which involved reformation on various equipment’s of productions, outputs, marketing and industrial organizations.

However, Schumpeter viewed innovation along with knowledge as the main catalysts of successful entrepreneurship. He believed that creativity was necessary if an entrepreneur was to accumulate a lot of profits in a heavily competitive market.

The concept of innovation and its corollary development embraces five functions:

1. Introduction of a new good

2. Introduction of a new method of production

3. Opening of a new market

4. Conquest of a new source of supply of raw materials and

5. Carrying out of a new organization of any industry

Schumpeter represents a synthesis of different notions of entrepreneurship. His concept of innovation included elements of risk taking , superintendence and co-ordination.

According to Schumpeter

· Development is not an automatic process; bur must be deliberately and actively promoted by some agency within the system. Schumpeter called the agent who initiates the above as entrepreneur

· He is the agent who provides economic leadership that changes the initial conditions of the economy and causes discontinuous dynamic changes

· By nature he is neither technician, nor a financier but he is considered an innovator

  • Entrepreneurship is not a profession or a permanent occupation and therefore, it cannot formulate a social class like capitalist

· Psychological, entrepreneurs are not solely motivated by profit

Features of Schumpeter Theory

· High degree of risk and uncertainty in Schumpeterian World

  • Highly motivated and talented individual

· Profit is merely an part of objectives of entrepreneurs

· Progress under capitalism is much slower than actually it is

· It is leadership rather than ownership which matters.

· Schumpeter’s concept of entrepreneurship is both wide and narrow. It is wide in the sense that it includes not only the independent businessmen but also company directors and manager who actually carry out innovative functions. It is narrow to the extent than individuals who merely operate an established business without performing innovative functions are excluded.

· Schumpeter’s innovating entrepreneur represents the most vigorous type of enterprise. But this type of entrepreneurs is a rare species in developing countries. The type of entrepreneur who exploits possibilities as they present themselves within a limited time horizon and mostly on a small scale can only produce limited time horizon and mostly on a small scale can only produce limited results. Society must produce innovators with a long time horizon and who are capable of achieving substantial transformations.

Walker’s Theory:

Walker has considered an entrepreneur as an organizer and co-ordinator of the various factors of production. According to him the true entrepreneur is one who is endowed with above average ability for organization and co-ordination. He is a pioneer and a captain of industry. However, in practice, entrepreneurs possess different degrees or organizational skill and co-ordinating capacity. The supply of true entrepreneurs is limited. The more competent entrepreneurs earn superior rewards in terms of profit.

Drucker’s Theory:

According to Peter Drucker, an “entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity”. Entrepreneurs innovate and innovation is a specific instrument of entrepreneurship. It creates resources because there is no such thing as a ‘resource’ until man finds man finds a use for something and endows it with economic value.

J.B. Say defined entrepreneurship as improving the yield of resource. Drucker defines it an increasing the value and satisfaction obtained from resources by the consumer. Successful entrepreneurs create new value or increase the values of what already exists. The covert a material into a resources or combine existing resources in a new or more productive configuration. Entrepreneurship is based on purposeful and systematic innovation. “Systematic innovation consists in the purposeful and organized search for changes and in the systematic analysis of the opportunities such changes might offer for economic or social innovation”.

The test of the innovation lies not in its scientific content but in the market place. While many writers treat entrepreneurship as mysterious or flush of genius. Drucker treats it a practice or discipline that has a knowledge base. It is a purposeful task that can be organized and learnt. The focus should be not on psychology or character traits of entrepreneurs but on their actions and behaviour. According to Drucker, entrepreneurship is not confined to big business and economic institutions. It is also equally important to small business and non-economic institutions. Drucker considers entrepreneurship behaviour rather than personality trait as people with diverse personalities and temperaments have performed well in entrepreneurial challenges. The foundation of entrepreneurship lies in concept and theory rather than in intuition. An entrepreneur need not necessarily be a capitalist or an owner. A banker who mobilizes others’ money and allocates it in areas of higher yield is very much an entrepreneur though he is not the owner of the money.

3(a) Explain when does an idea become an opportunity. Explain the various steps involved in identifying and evaluating business opportunities by an entrepreneur.

-> The thought of a new idea can sometimes be so exciting that we tend to initiate the work on the prototype right away. It is very essential to understand that all ideas not necessarily lead into or turn out to be good opportunities. I came across this idea of creating a personal bill management solution (say e-Bill) that provides a platform to effectively manage the bills/statements consumers receive from the providers of utilities, credit cards, banking, mortgages, and other services. Let us evaluate this idea based on the required characteristics of a real business opportunity.

1. Create or add significant value to a customer or end user

Value is created when the benefits to the customer exceed the costs of product or service. The e-Bill idea offers great value to both the bill providers and the consumers. The bill providers are benefited from the cost savings in not printing the paper copies of the bills and statements. For consumers, the e-Bill solution provides a one-stop solution for managing and paying their personal bills and statements.

2. Fix a real problem in the market, something that is truly a market pain.

When analyzing at the customer survey I took for this idea, it turns out that about 52% of consumers do not have any concerns. But a promising 33% have some concerns about the existing solutions.

3. The need for the product or service is pervasive, the customer wants urgently to fix it, and the customer is willing to pay to fix it.

When looking at the following two responses, about 86% of consumers are interested in a new bill management solution and are ready to give it a try. About 38% of those are willing to pay an annual fee for it.

4. They have robust market, margin, and profitability characteristics that the entrepreneur can prove.

In a seven year financial projection, it shows that e-Bill solution attains one million customers in the fourth year of its operation. Also, the startup becomes profitable only in the fifth year.

5. The founders and management team have collective domain experience that matches the opportunity.

The two founders have three decades of collective experience in designing and managing software products. In order for an effective execution, the team needs an advisory board with expertise in operations, sales and marketing, and human resources.

By applying these characteristics to the e-Bill idea, I have arrived at the conclusion whether it is just an idea or a real opportunity. I will share it in a future blog post.

Steps involved in identifying and evaluating business opportunities by an entrepreneur are:-

Entrepreneurs often live with the hope that if they build it, customers will come. But in today’s economy, it takes a lot more than hope to get people to purchase your products or services: New business-building practices are a must if you want to expand.

Another necessary element is a clear-cut plan for growth. But many entrepreneurs get obsessed with creating the perfect plan. Or they never get around to putting one together. Crafting a plan is necessary, quick and effective. And we can show you how to do it. The following seven steps should take you no more than four hours to complete-a small price to pay for a tremendous upside. The result? A road map that will infuse new energy, enthusiasm and vision into your company’s growth plans. So let’s get started.

Step 1: Focus on your core product. A very successful e-newsletter entrepreneur has built his business around this mantra: “Prospects buy when they trust your value is applicable to them and believe your company is stable.” This strong position allows him to constantly check up on the services and value he’s providing his customers. Keep this statement in mind as we go through the rest of the seven steps, because internalizing this mantra is the key to a solid plan.

It’s common in small, service businesses that the entrepreneur feels he or she must do everything the “big guys” do to compete. The truth is, small-business owners can really never compete in the same way. So it’s essential for small businesses to differentiate themselves by focusing on the unique capabilities and core products they bring to prospects. Specialization is the entrepreneur’s greatest asset.

Step 2: Keep your pitch simple. The last time you asked someone at a party what their company does, did you get a clear, concise response? Or did your eyes glaze over by the time they got to the end of their explanation? My guess is, it was probably the latter. Now imagine that same pitch being presented to prospects who don’t have a glass of wine in their hands to distract them! It’s not a pretty picture.

What every company needs is a simple “elevator pitch.” That’s a short, concise message that can communicate your message to a prospect in 30 seconds or less. It explains the value your product or service provides so the prospect understands why it’s applicable to them.

Try this little exercise to test your pitch clarity quotient. Ask someone who doesn’t know what you do to listen to your pitch. Explain what your company does, and watch for signs of fatigue-eyes watering, lids getting heavy, and so on. Of course, you may have the perfect pitch. But if you don’t, you’ll recognize it right away from verbal and physical responses.

Step 3: Stay true to who you are. Knowing who you are and what gets you excited (and bores you to tears) will help you reach your goals. Nothing can derail a growth plan more than discomfort and procrastination-it’s simply human nature to procrastinate over things that cause discomfort. And there are dozens of daily business requirements that every business owner detests. If you’re finding yourself putting things off, it’s time to start delegating

Stay true to who you are and what you do best: Hand off those tasks that will blow you off course because you don’t like doing them, so you don’t! Stretch and grow your capabilities in alignment with your interests and expertise. If accounting is your nemesis, hire a bookkeeper. If your personal organization is out of control, hire a temp to set up a new filing system. Always make sure that you’re focused on your priority “A” tasks and delegate your Bs and Cs.

Step 4: Map it. Mapping your capabilities with your target clients’ needs is an excellent way for you to determine your service strategy. You’ll find that while you may be perfectly skilled in many areas, you’re going after customers who don’t need your particular expertise.

One common trait among many entrepreneurs is the urge to “cast a wide net” by being all things to all companies. In almost every case, however, a small business flourishes because it has a narrower service offering. Remember, a small company’s value is that it can specialize in unique, top-quality services.

Develop a list of decision-making criteria that you expect your clients to use when choosing a provider in your industry. Then rank yourself (and be brutally honest) in terms of where you’d be positioned in each category. After this intense evaluation, make sure that your elevator pitch is still on target.

Step 5: Utilize marketing tools that work best for you. When deciding on a marketing strategy, implement one that fits your personality and the customers you serve. For instance, if you’re terrified of getting up in front of a crowd, don’t schedule yourself to participate on a panel in the hopes of generating business. You’ll derail your efforts if you don’t perform well.

Identify the top two marketing tools you’ve used in the past that have worked for your company. Let’s say that’s cold calling and a Web site. Then start adding new ideas for a fresh perspective. When selecting your marketing tools, also evaluate them from a financial and cost basis. Decide what will yield the best return on your efforts. Each tool should lead to a revenue-producing result in one way or another.

Step 6: Implement a plan of action. Up until now we’ve been in the planning mode, but now it’s time to dig in and put it to work. Your action plan will also give you the map you can use to measure your progress.

Establish goals that can be reviewed at three and six months. At incremental points within each three-month period, keep checking your plan to see if you’re meeting your goals. If you find you’re missing the target, ask why. Were the tools appropriate for your target customer? Did you integrate the strategy, or did you just focus on one of the tools?

And don’t forget to plug in specific actions that you’ll do every day to help you meet your goals. That daily strategy will keep the goals of the plan top of mind.

Step 7: Exercise the plan. This final step is really straightforward: Just do it: Complete the daily actions, and then do something extra to accelerate your success plan. If you approach your plan and get butterflies in your stomach, either get over it or substitute an action that you’re comfortable with so you stay on course. Don’t let unplanned tasks waste precious time that should be applied toward reaching your goal. And most of all-enjoy the process!

(b ) Explain the role of any two of the following financial institutions in the entrepreneurship development:

(i) NSIC

The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified company, since its establishment in 1955, has been working to fulfil its mission of promoting, aiding and fostering the growth of small-scale industries and industry related small-scale services/businesses in the country.

Over a period of six decades of transition, growth and development, the NSIC has proved its strength within the country and abroad by promoting modernization, up gradation of technology, quality consciousness, strengthening linkages with large and medium enterprises and enhancing export projects and products from small-scale enterprises.

At present, the NSIC operates through 6 Zonal Offices, 26 Branch Offices, 15 Sub-offices, 5 Technical Services Centres, 3 Extension Centres and 2 Software Technology Parks supported by a team of over 5000 professionals spread across the country. To mange operations in Gulf and African countries, the NSIC operates from its offices in Dubai and Johannesburg.

Functions of NSIC:

NSIC provides a wide range of services, predominantly promotional in character, to small-scale industries.

Its main functions are to:

a. Provide machinery on hire-purchase scheme to small-scale industries.

b. Provide equipment leasing facility.

c. Help in export marketing of the products of small-scale industries.

d. Participate in bulk purchase programme of the Government.

e. Develop prototype of machines and equipments to pass on to small-scale industries for commercial production.

f. Distribute basic raw material among small-scale industries through raw material depots.

g. Help in development and up-gradation of technology and implementation of modernization programmes of small-scale industries.

h. Set up small-scale industries in other developing countries on turn-key basis.

i. Impart training in various industrial trades.

j. Set up small-scale industries in other developing countries on turn-key basis.

k. Undertake the construction of industrial estates.

NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in competitive and advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support, and other support services.

These are discussed in seriatim as follows:

Marketing Support:

Marketing, a Strategic tool for business development, is critical to the growth and survival of small enterprise in today’s intensely competitive market. NSIC acts as a facilitator to promote small industries products and has devised a number of schemes to support small enterprises in their marketing efforts, both in and outside the country.

These schemes are briefly discussed as under:

Consortia and Tender Marketing:

Small enterprises in their individual capacity face problems to procure and execute large orders, which inhibit and restrict their growth. NSIC accordingly adopts Consortia approach and forms consortia of units manufacturing the same products; thereby easing out marketing problems of SSIs. NSIC explores the market and secures orders for bulk quantities. These orders are then distributed to small units in tune with their production capacity.

Single Point Registration for Government Purchase:

NSIC operates a Single Point Registration Scheme under the Government Purchase Programme, wherein the registered SSI units get purchase preference in Government Purchase Programme, exemption from payment of Earnest Money Deposit etc.

The units registered under this scheme get the following facilities:

a. Issue of tender sets free of cost.

b. Advance intimation of tenders issued by DGS&D.

c. Exemption from payment of earnest money.

d. Waiver of security deposit up to the monetary limit for which the unit registered.

e. Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification.

Exhibitions and Technology Fairs:

To showcase the competencies of Indian SSIs and to capture market opportunities, NSIC participates in select International and National Exhibitions and Trade Fairs every year. NSIC facilitates the participation of the small enterprises by providing concessions in rental, etc. Participation in these events exposes SSI units to international practices and enhances their business skills.

Buyer-Seller Meets:

Bulk and departmental buyers such as the Railways, Defence, Communication departments and large companies are invited to participate in buyer-seller meets to enrich SSI units’ knowledge regarding terms and conditions, quality standards, etc. required by the buyer.

Export of Products and Projects:

NSIC is a recognized export house and exporting products and projects of small industries of India to other countries.

The major areas of operation are:

a. Exports of products such as handicrafts, leather items, hand tools, pipes/ fittings, builders’ hardware etc.

b. Supply of small industry products on turnkey basis.

Credit Support:

NSIC provides credit support to small enterprises in the following areas:

Equipment Financing:

The Corporation is facilitating small enterprises in securing loans for purchase of equipment and machinery.

Tie-up with Commercial Banks:

To meet the credit requirements of small enterprises, NSIC has tied up with commercial banks for sanction of term loans and working capital facilities as per the convenience of the small enterprises. The accreted small enterprises under the performance and credit rating scheme of NSIC will stand at a good chance to get the credit from these commercial banks at liberal rates.

Financing for Procurement of Raw Material (Short-Term):

NSIC’s Raw Material Assistance Scheme aims at helping small-scale industries/enterprises by way of financing the purchase of raw material (both indigenous and imported).

The salient features of the scheme are:

a. Financial assistance for procurement of raw materials up to 90 days.

b. Bulk purchase of basic raw materials at competitive rates.

c. NSIC facilitates import of scarce raw materials.

d. NSIC takes care of all the procedures, documentation & issue of letter of credit in case of imports.

Financing of Marketing Activities:

NSIC facilitates financing of marketing activities such as Internal Marketing, Exports and Bill Discounting, Finance through syndication with banks. In order to ensure smooth credit flow to small enterprises, NSIC is entering into strategic alliances with commercial banks to facilitate long-term/working capital financing of the small enterprises across the country. The arrangement envisages forwarding of loan applications of the interested small enterprises by NSIC to the banks and sharing the processing fee.

Performance and Credit Rating Scheme for Small Industries:

By providing performance and credit rating scheme, NSIC enables small enterprises to ascertain the strengths and weaknesses of their existing operations and take corrective measures to enhance their organizational strength.

The scheme is operated through empanelled agencies like CARE, CRISIL, ICRA ONICRA and SMERA. Small enterprises have the liberty to choose among any of the rating agencies empanelled with NSIC. Rating agencies will charge the credit rating fee according to their policies.

The benefits the small enterprises derive from these agencies are as follows:

a. An independent, trusted third party opinion on capabilities and credit worthiness of SSI units.

b. Facilitate prompt credit decisions from banks on proposals of SSI units.

c. 75 % of the credit rating fee subject to a maximum of Rs. 25,000/- will be reimbursed to the small enterprise having a turnover up to Rs. 50 lakh by way of grants.

d. 75 % of the credit rating fee subject to a maximum of Rs. 30,000/ reimbursed to the small enterprise having a turnover above Rs. 50 lakh to Rs. 200 lakh by way of grants.

e. 75 % of the credit rating fee subject to a maximum of Rs. 40,000/- will be reimbursed to the small enterprise having a turnover above Rs. 200 lakh by way of grants.

f. The accredited small enterprises under the scheme will benefit from commercial banks.

g. The credit rating also improves the market image of the small enterprise in domestic and international markets.

Technology Support:

Technology is the key to enhancing an enterprise’s competitive advantage in today’s dynamic information age. Small enterprises need to develop and implement a technology strategy in addition to financial, marketing and operational strategies and adopt the one that helps integrate their operations with their environment, customers and suppliers.

NSIC offers small enterprises the following support services through its Technical Services Centres and Extension Centres:

a. Advising on application of new techniques.

b. Material testing facilities through accredited laboratories.

c. Product design including CAD.

d. Common facility support in machining, EDM, CNC, DNC etc.

e. Energy and environment services at selected centres.

f. Classroom and practical training for skill up gradation.


-> It is the apex banking institution to provide finance for Agriculture and rural development. National Bank for Agriculture and Rural Development (NABARD) was established on July 12, 1982 with the paid up capital of Rs. 100 cr. by 50: 50 contribution of government of India and Reserve bank of India. It is an apex institution in rural credit structure for providing credit for promotion of agriculture, small scale industries, cottage and village industries, handicrafts etc.

Functions of NABARD:

NABARD was established as a development bank to perform the following functions:

1. To serve as an apex financing agency for the institutions providing investment and production credit for promoting various developmental activities in rural areas;

2. To take measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions and training of personnel;

4. To undertake monitoring and evaluation of projects refinanced by it.

5. NABARD gives high priority to projects formed under Integrated Rural Development Programme (IRDP).

6. It arranges refinance for IRDP accounts in order to give highest share for the support for poverty allevia­tion programs run by Integrated Rural Development Programme.

7. NABARD also gives guidelines for promotion of group activities under its programs and provides 100% refinance support for them.

8. It is setting linkages between Self-help Group (SHG) which are organized by voluntary agencies for poor and needy in rural areas.

9. It refinances to the complete extent for those projects which are operated under the ‘National Watershed Development Programme ‘and the ‘National Mission of Wasteland Development‘.

10. It also has a system of District Oriented Monitor­ing Studies, under which, study is conducted for a cross section of schemes that are sanctioned in a district to various banks, to ascertain their performance and to identify the constraints in their implemen­tation, it also initiates appropriate action to correct them.

11. It also supports “Vikas Vahini” volunteer programs which offer credit and development activities to poor farmers.

12. It also inspects and supervises the cooperative banks and RRBs to periodically ensure the development of the rural financing and farmers’ welfare.

13. NABARAD also recommends about licensing for RRBs and Cooperative banks to RBI.

14. NABARD gives assistance for the training and development of the staff of various other credit institutions which are engaged in credit distributions.

15. It also runs programs for agriculture and rural development in the whole country.

16. It is engaged in regulations of the cooperative banks and the RRB’s, and manages their talent acquisition through IBPS CWE conducted across the country.

Role of NABARD:

1. It is an apex institution which has power to deal with all matters concerning policy, planning as well as operations in giving credit for agriculture and other economic activities in the rural areas.

2. It is a refinancing agency for those institutions that provide investment and production credit for promoting the several developmental programs for rural development.

3. It is improving the absorptive capacity of the credit delivery system in India, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, and training of personnel.

4. It co-ordinates the rural credit financing activities of all sorts of institutions engaged in developmental work at the field level while maintaining liaison with Government of India, and State Governments, and also RBI and other national level institutions that are concerned with policy formulation.

5. It prepares rural credit plans, annually, for all districts in the country.

6. It also promotes research in rural banking, and the field of agriculture and rural development.

Some of the milestones in NABARD’s activities are:

Business Operations:

1. Production Credit: NABARD sanctioned aggregating of 66,418 crore short term loans to Cooperative Banks and Regional Rural Banks (RRBs) during 2012-13, against which, the maximum outstanding was 65,176 crore.

2. Investment Credit: Investment Credit for capital formation in agriculture & allied sectors, non-farm sector activities and services sector to commercial banks, RRBs and co-operative banks reached a level of 17,674.29 crore as on 31 March 2013 registering an increase of 14.6 per cent, over the previous year.

3. Rural Infrastructure Development Fund (RIDF)

Through the Rural Infrastructure Development Fund (RIDF) 16,292.26 crore was disbursed during 2012-13. A cumulative amount of 1,62,083 crore has been sanctioned for 5.08 lakh projects as on 31 March 2013 covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc.

New Business Initiatives:

1. NABARD Infrastructure Development Assistance (NIDA):
NABARD has set up NIDA, a new line of credit support for funding of rural infrastructure projects. The sanctions under NIDA during the year 2012-13 was 2,818.46 crore and disbursement was 859.70 crore.

2. Direct refinance assistance to CCBs for short term multipurpose credit:
Direct refinance assistance to CCBs was conceived and additional line of finance for CCBs in the light of recommendations of the “Task Force on Revival of Short Term Rural Cooperative Credit Structure, which enables the latter to raise financial resources other than from StCBs. During 2012-13, refinance assistance aggregating 3,385 crore was sanctioned to 42 CCBs and disbursement stood at 2,363.45 crore.

Now it can be conclude that the Agricultural & rural development is totally dependent on the efficiency of the NABARD, which is doing its job as per the requirements of the economy.

(iii) SIDBI

-> The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990.

SIDBI was made responsible for administering Small Industries Development Fund and National Equity Fund that were administered by IDBI before. SIDBI is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.

Besides focussing on the development of the Micro, Small and Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency. SIDBI helps MSMEs in acquiring the funds they require to grow market, develop and commercialize their technologies and innovative products. The bank provides several schemes and also offers financial services and products for meeting the individual’s requirement of various businesses.

Finance Facilities Offered by SIDBI

Small Industries Development Bank of India offers the following facilities to its customers:

1. Direct Finance

SIDBI offers Working Capital Assistance, Term Loan Assistance, Foreign Currency Loan, Support against Receivables, equity support, Energy Saving scheme for the MSME sector, etc.

2. Indirect Finance

SIDBI offers indirect assistance by providing Refinance to PLIs (Primary Lending Institutions), comprising of banks, State Level Financial Institutions, etc. with an extensive branch network across the country. The key objective of the refinancing scheme is to raise the resource position of Primary Lending Institutions that would ultimately enable the flow of credit to the MSME sector.

3. Micro Finance

Small Industries Development Bank of India offers microfinance to small businessmen and entrepreneurs for establishing their business.

Functions of SIDBI (Small Industries Development Bank of India)

1. Small Industries Development Bank of India refinances loans that are extended by the PLIs to the small-scale industrial units and also offers resources assistance to them

2. It discounts and rediscounts bills

3. It also helps in expanding marketing channels for the products of SSI (Small Scale Industries) sector both in the domestic as well as international markets

4. It offers services like factoring, leasing etc. to the industrial concerns in the small-scale sector

5. It promotes employment oriented industries particularly in semi-urban areas for creating employment opportunities and thus checking relocation of people to the urban areas

6. It also initiates steps for modernisation and technological up-gradation of current units

7. It also enables the timely flow of credit for working capital as well as term loans to Small Scale Industries in cooperation with commercial banks

8. It also co-promotes state level venture funds

Benefits of SIDBI

1. Custom-made

SIDBI policies loans as per the requirements of your businesses. If your requirement doesn’t fall into the ordinary and usual category, Small Industries Development Bank of India would assist funding you in the right way.

2. Dedicated Size

Credit and loans are modified as per the size of the business. So, MSMEs could avail different types of loans custom-made for suiting their business requirement.

3. Attractive Interest Rates

It has a tie-up with several banks and financial institutions world over and could offer concessional interest rates. The SIDBI has tie-ups with World Bank and the Japan International Cooperation Agency.

4. Assistance

It not just give provides a loan; it also offers assistance and much-required advice. Its relationship managers assist entrepreneurs in making the right decisions and offering assistance till loan process ends.

5. Security Free

Businesspersons could get up to INR 100 lakhs without providing security.

6. Capital Growth

Without tempering the ownership of a company, the entrepreneurs could acquire adequate capital for meeting their growth requirements.

7. Equity and Venture Funding

It has a subsidiary known as SIDBI Venture Capital Limited which is wholly owned that offers growth capital as equity through the venture capital funds which focuses on MSMEs.

8. Subsidies

SIDBI offers various schemes which have concessional interest rates and comfortable terms. SIDBI has an in-depth knowledge and a wider understanding of schemes and loans available and could help enterprises in making the best decision for their businesses.

9. Transparency

Its processes and the rate structure are transparent. There aren’t any hidden charges.

(iv) Assam Gramin Vikash Bank.

-> The Gramin Vikash Bank is a multidimensional financial institution with an undiluted commitment to rural credit dispensation. As the largest scheduled Commercial Bank in Assam, they have largest network of branches traversing the entire state of Assam. Assam Gramin Vikash Bank is a regional rural bank in Assam, India. The bank was formally launched on 12 January 2006 by amalgamation of Pragjyotish Gaonlia Bank, Lakhimi Gaonlia Bank, Cachar Gramin Bank and Subansiri Gaonlia Bank, which were sponsored by Punjab National Bank . It is further amalgamated with Langpi Dehangi Rural Bank which was sponsored by State Bank of India . The bank is divided into 8 regional zones. They are: Nalbari, Golaghat, Lakhimpur, Guwahati, Dibrugarh, Kokrajhar and Silchar and now Diphu. Among these zones there are 474 branches across 33 districts of Assam through which the bank is operating their functions. The Bank is one of the leading banks in the state of Assam. Its headquarters is located at Guwahati, Assam. They key people are Sanjaya Nand (Chairman), Aurobindo Das, Monoj Kumar Das (General Manager)

4(a) What do you mean by EDPs? Explain the importance of EDPs for entrepreneurship development.

-> EDP is a programme meant to develop entrepreneurial abilities among the people. In other words, it refers to inculcation, development, and polishing of entrepreneurial skills into a person needed to establish and successfully run his / her enterprise. Thus, the concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

Objectives of EDP:

The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:

a. Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.

b. Analyse environmental set up relating to small industry and small business.

c. Select the product.

d. Formulate proposal for the product.

e. Understand the process and procedure involved in setting up a small enterprise.

f. Know the sources of help and support available for starting a small scale industry.

g. Acquire the necessary managerial skills required to run a small-scale industry.

h. Know the pros and cons in becoming an entrepreneur.

i. Appreciate the needed entrepreneurial discipline.

j. Besides, some of the other important objectives of the EDPs are to:

k. Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and strive for their realization.

l. Prepare him / her to accept the uncertainty in running a business.

m. Enable him / her to take decisions.

n. Enable to communicate clearly and effectively.

o. Develop a broad vision about the business.

p. Make him subscribe to the industrial democracy.

q. Develop passion for integrity and honesty.

r. Make him learn compliance with law.

Importances of EDP for entrepreneurial development are:-

Entrepreneurs possess certain competencies or traits. These competencies or traits are the underlying characteristics of the entrepreneurs which result in superior performance and which distinguish successful entrepreneurs from the unsuccessful ones.

Then, the important question arises is: where do these traits come from? Or, whether these traits are in born in the entrepreneurs or can be induced and developed? In other words, whether the entrepreneurs are born or made? Behavioural scientists have tried to seek answers to these questions.

A well-known behavioural scientist David C. McClelland (1961) at Harvard University made an interesting investigation-cum-experiment into why certain societies displayed great creative powers at particular periods of their history? What was the cause of these creative bursts of energy? He found that ‘the need for achievement (n’ ach factor)’ was the answer to this question. It was the need for achievement that motivates people to work hard. According to him, money- making was incidental. It was only a measure of achievement, not its motivation.

In order to answer the next question whether this need for achievement could be induced, he conducted a five-year experimental study in Kakinada, i.e. one of the prosperous districts of Andhra Pradesh in India in collaboration with Small Industries Extension and Training Institute (SIET), Hyderabad.

This experiment is popularly known as ‘Kakinada Experiment’. Under this experiment, young persons were selected and put through a three-month training programme and motivated to see fresh goals.

One of the significant conclusions of the experiment was that the traditional beliefs did not seem to inhibit an entrepreneur and that the suitable training can provide the necessary motivation to the entrepreneurs (McClelland & Winter 1969). The achievement motivation had a positive impact on the performance of entrepreneurs.

In fact, the ‘Kakinada Experiment’ could be treated as a precursor to the present day EDP inputs on behavioural aspects. In a sense, ‘Kakinada Experiment’ is considered as the seed for the Entrepreneurship Development Programmes (EDPs) in India.

The fact remains that it was the ‘Kakinada Experiment’ that made people appreciate the need for and importance of the entrepreneurial training, now popularly known as ‘EDPs’, to induce motivation and competence among the young prospective entrepreneurs.

Based on this, it was the Gujarat Industrial Investment Corporation (GIIC) which, for the first time, started a three-month training programmes on entrepreneurship development. Impressed by the results of GIIC’s this training programme, the Government of India embarked, in 1971, on a massive programme on entrepreneurship development. Since then, there is no looking back in this front. By now, there are some 686 all-India and State level institutions engaged in conducting EDPs in hundreds imparting training to the candidates in thousands.

Till now, 12 State Governments have established state-level Centre for Entrepreneurship Development (CED) or Institute of Entrepreneurship Development (lED) to develop entrepreneurship by conducting EDPs. Today, the EDP in India has proliferated to such a magnitude that it has emerged as a national movement. It is worth mentioning that India operates the oldest and largest programmes for entrepreneurship development in any developing country.

The impact of India’s EDP movement is borne by the fact that the Indian model of entrepreneurship development is being adopted by some of the developing countries of Asia and Africa. Programmes similar to India’s EDPs are conducted in other countries also, for example, ‘Junior Achievement Programme’ based on the principle of ‘catch them young’ in USA and ‘Young Enterprises’ in the U. K.

(b) What do you mean by module of an EDP? Explain the various strategies and approaches that are followed for organising EDPs in India.

-> Entrepreneurship Development Programme (EDP) is a programme which helps in developing the entrepreneurial abilities. The skills that are required to run a business successfully is developed among the people through this programme. It has become one of the major instruments for the promotion and development of entrepreneurship in India during the last three to four decades. This programme is perfect for them. This programme consists of a structured training process to develop an individual as an entrepreneur. It helps the person to acquire skills and necessary capabilities to play the role of an entrepreneur effectively.

The potential target group refers to the group of persons for whom the EDP is designed and undertaken each and every target group has its own needs, requirements and aspirations.

The programme designed for one group may be useless for other groups. Therefore, the target Group to be trained and developed must be clearly defined before the EDP is designed and started. The following types of target group may be considered before starting and EDP.

1. Technical and other qualified persons:

This group includes the persons having technical knowledge of a particular course. The persons may be degree or diploma holders in science, ITI, engineering and technology.

The government and semi-government agencies operate special EDP and scheme of assistance for this group. The EDP for this group is designed to enable and help them to set-up their own manufacturing units.

The enterprises selected for this purpose are directly related to their technical qualification and experience.

2. Ex-Servicemen:

Ex-servicemen are the persons who are retired from army, navy and air-force. These persons have acquired many useful skills and experience during their service period. They are highly disciplined, hard working, enterprising and innovative. They can also become successful entrepreneurs after proper entrepreneurial training.

The Government of India offer special incentives and facilities in order to rehabilitate them. Many ex-servicemen are operating their manufacturing training and service enterprises successfully in two countries.

3. Business executives:

After getting sufficient business experience, some business executives want to start their independent business enterprises.

They have innovative ideas and may not be satisfied with their present economic and social entrepreneurs after getting entrepreneurial training.

4. Women entrepreneurs:

The Government of India is encouraging women to participate in business activities. Women are entering into business world in large numbers.

Several government and non-government agencies are specially, organizing entrepreneurial training programmes for women.

5. S.C. and S.T., entrepreneurs:

Government of India is committed to uplift the scheduled caste (S.C.) and scheduled tribe (S.T.). Various government and non-government agencies give preference to S.C. and S.T. entrepreneurs to attend EDP.

Special arrangements are made to provide them concessional loans to set up their enterprises.

The characteristics or qualities which make the entrepreneurs successful are known as entrepreneurial competencies. The possession of certain knowledge, skill, trait and quality called entrepreneurial competencies help the entrepreneurs to perform entrepreneurial activities successfully.

In other words, the qualities, traits and characteristics possessed by an entrepreneur which result in superior performance are called the entrepreneurial competencies and are developed through entrepreneurial development programme.

He following strategies and approaches are therefore, suggested to be followed for organizing EDPs future:-

EDP objective

Objectives of each type EDP, depending on the target group and its locations as well as the nature of activity to be focused upon, should be decided in the beginning itself. In other words, expectations from an EDP must be outlined at the outset itself. Such expectations would be with regard to raising the motivation level of trained, developing their entrepreneurial skills, personality traits, knowledge and preparedness for the promotion and management of enterprise etc.

Training needs assignment

Keeping in view the objectives of an EDPs the target group and the gaps observed between the expected and existing level f entrepreneurial motivation, skills, traits knowledge, and preparedness stc., the training needs and intensity should be assessed while the expected levels could be the concerned team of organizing that EDP.

Contents and module of an EDP

Based on the training needs, the entrepreneurship development team should identify the topics and activities to be covered and taken up and list them out in the form of contents of an EDPs. Also, the learning objectives of each topic and activity should be stated clearly. Formulation of EDPs module shall involve sequencing of the topics and activities to be taken up during the training period and the extent of time required to be devoted to each of the topics. The module should comprise the activities to be performed during the post-training as well.

Training Techniques

Once the content and module of an EDP have been worked out, the next step should be to identify and select the training techniques to be applied. These techniques could be class- room learning, on-the- learning, on- the job learning, lectures, panel, discussion, one to one counselling, group exercises and discussion, case analysis, video shows, motivation/ business/ management games, stimulation and group assignment etc. The identification and selection of training needs, contents as well as he target group.

Training Aids

Based on the content and training techniques to be applied, the training aids, like course materials, work books, scoring sheets and stationary etc. Should identify and developed. Depending on the training techniques, learning tools, like audio visual aids, black/ white board, flip charts instruments, models, simulators, computer manuals scoring sheets etc. Should be identified, acquired or developed. Also, evaluation criteria and evaluation as well as feedback tools for getting participants assessment of training etc should be developed.

Training faculty

One of the most important tasks to be performed in the course of the preparation for an EDP is the identification of the suitable training faculty keeping in view he contents and the target groups. It may be noted that training faculty plays a significant role in making an EDP effective and interesting. Therefore, one must keep in mind, that the chosen training faculty must have the necessary expertise and up-to-date knowledge of the topic(s) be handle and also must able to communicate and interact with the trainees in the same language as understood by them. As such the ED team must have a set of alternatives faculty as well whole services could be availed of as and when required.

Launching of an EDP

In the course of planning, executive and concluding an EDP, the ED team should try to involve the representatives of financial and support agencies as well as responsible social personalities of that are to the maximum extent possible. It would be better if the interaction sessions with the representatives of the concerned financial institutions and promotional agencies as well as local public personalities are arranged, in the beginning itself, to explain the scope and objectives of an EDP due to the organised. This would help build a conducive environment for seeking not only financial and promotional support for the creation of enterprise by the trainees but also sensitize the social environment for extending moral and material support to the potential entrepreneurs.

Post- training activities

Mere completion of the training programme would not be sufficient, and it would be necessary that the post- training follows – ups and monitoring of the training potential entrepreneurs continue or an extended period last 2 years. It may be stated that though such activities are being performed even now, the intensity and effectiveness of such post-training activities are up to the expectation.

It may be pertinent o observed here that most of the time and resources of an EDP are at present devoted to the training component of the purposes of which is developing the entrepreneurial capabilities would on its own lead to the creation of an enterprise however, it must be pointed out that the launching and resourcing of an enterprise. It is high time that an EDP sponsoring organisation as well as ED organisation and adequate attention to the expect.

Post training assessment

Assessing the impact and effectiveness of an EDP during the post-training phase should be an essential part of the whole exercise. It may be desirable to undertake such assessment exercise. It may be desirable to undertake such assessment exercise towards the end of third year from the completion of an EDP and it takes a lot of time or a potential entrepreneur to create an enterprise and sustain it in the initial stage. The scope of such an exercise should not remain confined to the effectiveness of EDP in terms of enterprise creation only but also take into account the impact created by an EDP on the trainees as well as their immediate social environment i.e. family and friends etc.

Growth programmes

During the 3rd and 4th year after the completion of an EDP a series of enterprise growth, programmes and organised to further strength the management skills f the training entrepreneurs who have already set up their enterprises and have been running them successfully or otherwise. In this way a link between the trained entrepreneurs and ED organisation would continue for a longer duration and also improved the health of the enterprise created by them and facility expansion, diversification and modernisation of the enterprises to a certain extent.

5(a ) Discuss the various factors impeding the growth of entrepreneurship in North-East India. What measures would you suggest to overcome these factors?

-> The factors impending the growth of entrepreneurship in North-East India are:-

1. Demography: –
The eight stated together have a population of 39 million as per 2001 census and constitution about 3.8 percent of the total population of the country. The decadal growth during the period 1991-2001 has been 22.16 per cent, higher than the national average of 21.34 per cent. The stages of Nagaland witnessed the highest decadal growth in all India during this period of 64.41% and Tripura registered the lowest growth in all India at 15.74%.

2. Power: –
during 2001-02, the estimated total peak demand in the eight stated of the north- east was 1395MW.Agaisnt this total installed capacity was 2344 MW was in the state sector, 1270 MW in central sector utilises and 25 MW in the private sector.
However the region continued t experienced severe power shortages forcing utilities to resort to frequent power cuts – both scheduled and unscheduled. The installed generating capacity is impressive as against the estimated peak demand, however, many of the unites in the states sector are closed and those running are at very low Plant Load Factors (PLF).

3. Industry: –
The North East industrial policy in (NEIP) 1997 declared on December 24, 1997 containing host of incentives such as Income Tax holiday, central excise exemptions act and various subsidies such as capital investment subsidy, transport subsidy, working capital interest subsidy etc. Has had a positive impact on the industrial development of the Northeast region through concerns o concentration in Limited area remains.
The number of industrial entrepreneur’s memorandum field grew 113% up to fiscal ending March 31, 2002 after the notification of NEIP and Central Excise Notification in July 1999. A total number of 282 numbers are claiming excise refunds. As per NEDFI estimates total of 461 medium and large units with capital formation of Rs 997 cores have been implemented or are under various stages of implementation after the declaration of the NEIP 1997.
While most of the investments have been confined to Assam and Meghalaya especially the Byrnihat area the low investment in the Other notified area have been primary duet non-availability of Infrastructures such as power, Water, roads etc. Efforts need to be taken by State governments in providing adequate infrastructure to attract industries for a more equitable distribution in investment.

4. Agriculture: –
The overall land to men ratio for North East reason of 0.66ha per person is still favourable compared to the all India average of 0.32ha per person. As per state agriculture census of 1990 -91 the gross cultivable area of the region was 64, 68,999 for me only 25% of the total geographical area as compared to the national average of 59%. This is primarily due to the mostly hilly nature of the region.
The percentage utilisation of cultivable area in the Northeast region (58.74%) is less than the national average (70.05) and mono cropping is the predominant method of cultivation. It is known that even productivity is lower than the national average in most of the crops grown in the north-east.

5. Banking
The number of branches of Scheduled commercial banks in the Northeast region total 1885 as on and March 2002. The figure was 1894 as on end 2002. While the banks have covering even more remote areas of the region, the credit deposit ratio of the banks have been far from desirable over the years. The credit deposit ratio of the scheduled commercial banks in NE region has fallen from 39.35% as on and March 1994 to 26. 25% as on end March 2002. The national average in the end of March 2002 was 62.31%.
With new policy of prudential banking the banks are reluctant to land in the remote areas and therefore the NER is it a disadvantage. The CD ratio has been falling regularly in spite of pressure from the state and Central Government. Assam has the highest sheet CD ratio in the region while Nagaland the lowest.

6. Economy of North east India: –
the north east India economy is generally characterized by low per-capita income, low capital formation, inadequate infrastructure facilities, geographical isolation and communication bottleneck, inadequate exploitation of natural resource like mineral resources, hydro power potential, forest etc, low progress in industrial field, lack of private and foreign direct investment and high un-employment rate among the relatively high literate people.
The population growth in the NER is largely responsible for this low per capita income. CARG in NSDP shows that Manipur, Meghalaya, Mizoram and Tripura have been doing better than national growth rate. Interestingly, Assam the so-called most developed state in the North-east has the lowest per capita income and lowest in NSDP.

(b) Discuss some of the social and institutional issues preventing the development of entrepreneurship in North-East India.

-> Training and Research done by brought out a number of social and institutional issues that need to be addressed to have better impact of the efforts to promote entrepreneurship. Socio cultural environment and values have an important bearing in the emergence of entrepreneurship in any society. While the individual may like to take up and opinion career the family may not like to encourage him/her to take up such a career. It is a fact that majority of parents want their children to take up salaried employment. Preference for salaried employment is not peculiar to the states of the Northeast. This can be found in other states also. But preferences for salaried jobs in northeast are very high. There are of course, youth taking up entrepreneurial career against the wishes of the parents. But their number is very small.
It is also social cultural environment that has been hindrance in the growth of entrepreneurship in the region. It is social status that comes most while making a choice in career. It is a fact that salaried jobs enjoy better social status in the society, besides enjoying security of jobs, assured income, less hour of work and lesser degree of responsibilities. The Northeast is not an expected to this phenomenon. However, preference for self employment has gone to such an extent that unemployment youth are prepared to pay for a job that to utilise that amount of money for self employment and all these are due to social environment. They feel that would get job because of their proximity to public man.
The value orientation to work and leisure, initiation talking innovativeness etc. Are some other aspects that are influenced by social environment? To become an entrepreneur a person must be hard working. But in the north east leisure orientation is more than the work orientation. Preference for leisure than or work is a role rather than an exceptions. This is reflected in the growing tendency or observing bandh. A change in this orientation is necessary to bring about change for growth of entrepreneurship in the North east.

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