Concept of Entrepreneurship

Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new businesses.
In economics, entrepreneurship connected with land, labour, natural resources and capital
can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and
is an indispensable part of a nation’s capacity to succeed in an ever-changing and more
competitive global marketplace. Entrepreneurship development (ED) refers to the
process of improving entrepreneurial skills and knowledge through structured
training and institution-building programmes. Entrepreneurship development
focuses on the individual who wishes to start or expand a business. This
accelerates employment generation and economic development.

Meaning of Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make profits.
The best example of entrepreneurship is the starting of a new business venture. The
entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas
in the market by replacing old with a new invention.
It can be classified into small or home business to multinational companies. In economics,
the profits that an entrepreneur makes is with a combination of land, natural resources,
labour and capital.
In a nutshell, anyone who has the will and determination to start a new company and deals
with all the risks that go with it can become an Entrepreneur.
Also Refer: Top 8 Difference Between Businessman and Entrepreneur

What are the 4 Types of Entrepreneurship?

It is classified into the following types:
Small Business Entrepreneurship-
These businesses are a hairdresser, grocery store, travel agent, consultant, carpenter,
plumber, electrician, etc. These people run or own their own business and hire family
members or local employee. For them, the profit would be able to feed their family and not
making 100 million business or taking over an industry. They fund their business by taking
small business loans or loans from friends and family.
Scalable Startup Entrepreneurship-
This start-up entrepreneur starts a business knowing that their vision can change the world.
They attract investors who think and encourage people who think out of the box. The
research focuses on a scalable business and experimental models, so, they hire the best
and the brightest employees. They require more venture capital to fuel and back their
project or business.
Large Company Entrepreneurship-
These huge companies have defined life-cycle. Most of these companies grow and sustain
by offering new and innovative products that revolve around their main products. The
change in technology, customer preferences, new competition, etc., build pressure for large
companies to create an innovative product and sell it to the new set of customers in the new
market. To cope with the rapid technological changes, the existing organisations either buy
innovation enterprises or attempt to construct the product internally.
Social Entrepreneurship-
This type of entrepreneurship focuses on producing product and services that resolve social
needs and problems. Their only motto and goal is to work for society and not make any
profits.

Characteristics of Entrepreneurship:
Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:

•
• Ability to take a risk- Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate
and take risks, which is an essential part of being an entrepreneur.
• Innovation- It should be highly innovative to generate new ideas, start a company
and earn profits out of it. Change can be the launching of a new product that is new
to the market or a process that does the same thing but in a more efficient and
economical way.
• Visionary and Leadership quality- To be successful, the entrepreneur should have
a clear vision of his new venture. However, to turn the idea into reality, a lot of
resources and employees are required. Here, leadership quality is paramount
because leaders impart and guide their employees towards the right path of
success.
• Open-Minded- In a business, every circumstance can be an opportunity and used
for the benefit of a company. For example, Paytm recognised the gravity of
demonetization and acknowledged the need for online transactions would be more,
so it utilised the situation and expanded massively during this time.
• Flexible- An entrepreneur should be flexible and open to change according to the
situation. To be on the top, a businessperson should be equipped to embrace
change in a product and service, as and when needed.
• Know your Product-A company owner should know the product offerings and also
be aware of the latest trend in the market. It is essential to know if the available
product or service meets the demands of the current market, or whether it is time to
 tweak it a little. Being able to be accountable and then alter as needed is a vital part
of entrepreneurship.
• Confidence
• Passion
• Motivation
• Decision making
• Collaboration
• Desciveness
• Persuasiveness(convince)
• Goal setting
• Demand for quality and efficiency

Importance of Entrepreneurship:
• Creation of Employment- Entrepreneurship generates employment. It provides an
entry-level job, required for gaining experience and training for unskilled workers.
• Innovation- It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
• Impact on Society and Community Development- A society becomes greater if
the employment base is large and diversified. It brings about changes in society and
promotes facilities like higher expenditure on education, better sanitation, fewer
slums, a higher level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community life.
• Increase Standard of Living- Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means, increase
in the consumption of various goods and services by a household for a particular
period.
• Supports research and development- New products and services need to be
researched and tested before launching in the market. Therefore, an entrepreneur
also dispenses finance for research and development with research institutions and
universities. This promotes research, general construction, and development in the
economy.

➢ Entrepreneurs are pioneers to business success today. They detect opportunities,

leading to a new opinion or innovation and good performance become a standard
in the era of free enterprise. Scaborough and Zimmerer (1988) define the
entrepreneur as a person who creates a new business and facing an uncertain
 situation in order to gain profit and growth to identify opportunities and provide
the resources to achieve it. Entrepreneurs usually start with the idea that there is
only and always a simple idea and provide the necessary resources to move those
ideas that are appropriate to the business. Other than that, Kuratko & Hodgetts
(2004), define the entrepreneur as a person who is trying to organize, manage and
take risks in business. Entrepreneurs are also a catalyst for economic change using
search for a particular purpose, careful planning and appropriate consideration
when making any business process. With optimistic and committed to work with
creative entrepreneurs to acquire new resources and renewing old source to the
new capacity, all this is only intended to create a profit.

DEFINITION OF ENTREPRENEURSHIP
The word 'entrepreneur' comes from the French word "entrepredre" which means "to
undertake". In the Malay language it can be defined as "to take over". According Histrich and
Peter (1988), entrepreneurship is a dynamic process of wealth creation. Wealth is created by the
individual who bears the risk of the 'equity', time and career commitment or provide value to a
product or service. It is the process of creating something new by taking into account the time
and effort to take into account the risk of financial, psychological and social. And receive the
benefits in terms of financial, personal satisfaction and freedom. Besides, Kuratko and Hodgetts
(2004) define entrepreneurship as a process of innovation and creation through the four
dimensions of the individual, organization, environment and the process of collaboration with
networks in government, education and institutional.

EVOLUTION OF ENTREPRENEURSHIP
In the Earliest period, definition of entrepreneurship began as early as the Marco Polo
who comes to the Middle East for trade. Marco Polo has signed an agreement with the capitalists
to sell their products. In the contract merchant adventurer took a loan at 22.5% rate including
insurance. Capitalist was the passive risk bearer and merchant adventurer took the active role in
trading, bearing all physical and emotional risks. When the merchant adventurer successfully
sold the goods and completed the trip, the profits were divided with the capitalist taking most of
them up to 75%, while the merchant adventurer settled for the remaining 25%.
In middle ages, Entrepreneur is described as someone who is involved in the care and
control of a large production projects. It is possible to control the project using the resources
provided by the government. In this case, the entrepreneur does not bear any risk. Entrepreneurs
in this age, is a have control and authority of construction works such as public buildings and
churches. A typical entrepreneur in the middle age was the priest.
In 17th century, the evolution of entrepreneurship can be related with the relationship
between risk and entrepreneurs. Entrepreneurship is the person who signed the contract
agreement with the government to provide a service or supply products that have been
determined. The contract price is fixed. Then, the entrepreneurs are fully responsible for the
gains and losses of the business. John law, a Frenchman was one of the entrepreneurs in that
period. The founder of the royal bank of France and the Mississippi Company, which had an
exclusive franchise to trade between France and the new world. Monopoly on French trade
eventually led to collapse of the company. Richard Cantillion, an economist defines
entrepreneurs earlier. In his view, the entrepreneur is risk insurers. Merchants, farmers,
craftsmen, and so is an entrepreneurs. They buy things at a certain price and sell it at a price that
is uncertain, with the risks
. In the 18th century, the person with capital was differentiated from the one who needed
capital. The entrepreneur was distinguished from the capital provider. One reason for this
differentiation was the industrialization occurring throughout the world. Eli Whitney was an
American inventor best known for inventing the cotton gin. This was one of the key inventions
of the industrial Revolution..
In 19th and 20th century, Entrepreneurs are not always associated with the
management. According to Merriam-Webster's online dictionary, an entrepreneur is one who
organizes, manages, and assumes the risk of a business or an enterprise. The entrepreneur
organizes and manages an enterprise for personal gain. The materials consumed in the business,
for the use of the land, for the services he employs, and for the capital he requires. Andrew
Carnegie is one of the best examples of this definition. Carnegie, who descended from a poor
Scottish family, made the American Steel Industry one of the wonders of the industrial world.
In the middle of the 20th Century, the function of the entrepreneurs is to recreate or
revolutionize the pattern of production by introducing an invention. Innovation, the act of
introducing some new ideas, is one of the most difficult tasks for the entrepreneur. For example,
Edward Harriman, who reorganized the railroad in the United States and John Morgan, who
developed his large banking house by reorganizing and financing the nation’s industries.
Besides, the Egyptian who designed and built great pyramids out of stone blocks weighing many
tons each, to laser beams, supersonic planes and space stations.

In 21st century, Entrepreneurs are known as a hero for Free Enterprise market.
Entrepreneur of the century created many products and services and is willing to face a lot of
risks in the business. According to Kuratko & Hodgetts, most people say entrepreneurs are
pioneers in creating new businesses. In the year 2005 Hisrich, Peter and Shepherd regarded
entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges
infrastructure, throw in his own inventiveness, expertise, plans and administers the venture.
The Future of entrepreneurship wil
l be growth with development of technologies. The modern technologies and internet have
improved the ways of conduct business. Entrepreneurs now have the luxury of putting their
business idea into action through the click of button.

The differences between entrepreneur and intrapreneur are as follows:

Topic Entrepreneure Intrapreneur

Dependency
He is independent in his He is independent in his
operations. He is fully operations. He is fully
independent. He does not independent. He does not
work for others and his own work for others and his own
boss. boss.
Core objective Core objective is to innovate
something new of socio core objective is to to increase
economic value competitive strength and
market sustainability of the
organization
Capital/ Investment He manages required capital
himself. He raises fund for He does not need to manage
new business. required fund because
corporation raises capital for
the business.
Risk Bearing He does not fully bear the risk
he bears the risk involved in involved in the enterprise. He
the business. He bears 100% does not bear full risk of the
business, He risks others
business risk. He risks own money.
money.

Primary Motive He has the motive of

Primary motive of advancement and promotion
with fixed salary.
entrepreneur is to be
independent, self-satisfaction
and earn monetary reward
Time Bound He is bounded by the
He does not follow strict corporate timetable.
timetable. It may take several
years for the growth of the
business.
Mind-set
He is guided by the principle He thinks that the problems
of ‘ Problems provide are threats for him and his
opportunities’ corporation.
 • Role of entrepreneur in Indian econonmy
Entrepreneurs play the most important role in the economic growth and development of Indian
economy. An entrepreneur plays a pivotal role not only in the development of industrial sector of
a country but also in the development of farm and service sector. The major roles played by an
entrepreneur in the economic development of an economy are as follows;

1. Increasing GDP and Per Capita Income

Entrepreneurs are always looking out for opportunities. They encourage effective resource
mobilisation of capital and skill, bring in new products and services and develops markets for
growth of the economy. In this way, they help increasing gross national product as well as per
capita income of the people in our nation.
2. Induces Backward and Forward Linkages
Entrepreneurs work in an environment of changing technology and try to maximise profits by
innovation. This induces backward and forward linkages which stimulate the process of
economic development in the country.
3. Wealth Creation and Distribution
It stimulates impartial redistribution of wealth and income in the interest of the country to more
people and geographic areas, thus giving benefit to larger sections of the society.
4. Facilitates Overall Development
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialisation is set in motion. This unit will generate
demand for various types of units required by it and there will be so many other units which
require the output of this unit. This leads to overall development of an area due to increase in
demand and setting up of more and more units.
5. Promotes Country's Export Trade
Entrepreneurs earn valuable foreign exchange through increased exports. They produce goods
and services in large scale for the purpose earning huge amount of foreign exchange from
export. This ensures economic independence and development.
6. Balanced Regional Development
Entrepreneurs promote development of industries. They help to remove regional disparities by
industrializing rural and backward areas. They help to reduce the problems of congestion, slums
and population in cities by providing employment and incomes to them. They help to improve
the standard of living in sub-urban and rural areas.

7. Improvement in the Standard of Living

Entrepreneurs adopt latest innovations in the production of wide variety of goods and services in
large scale that too at a lower cost. This enables the people to avail better quality goods at
lower prices which results in the improvement of their standard of living.
8. Promotes Capital Formation
Entrepreneurs promote capital formation by mobilizing the idle savings of our citizens. They
employ resources for setting up their enterprises. Such types of entrepreneurial activities lead to
value addition and creation of wealth, which is very essential for the industrial and economic
development of India.
9. Reduces Concentration of Economic Power
Industrial development normally leads to concentration of economic power in the hands of a few
individuals which results in the growth of monopolies. Entrepreneurs contribute towards the
development of society by reducing concentration of income and wealth.
10. Employment Generation
Entrepreneurs provide instant large-scale employment to the unemployed which is an unending
problem of India. Small entrepreneurs provide self employment to artisans, technically qualified
persons and professionals.

➢ Entrepreneurial culture;
It has been an area of worth investigation in management research for many years since the
growth in technology-based business ventures.
Since the last few years, entrepreneurial culture has been appearing as a highly noticeable
concept in management literature. Entrepreneurial culture has been defined as the attitude,
values, skills, and power of a group or individuals working in an institute or an organization
to generate income. One must notice that while considering entrepreneurial culture in an
organization, innovation is one of the most important elements for its growth and success,
so research on the subject is specifically needed in the entrepreneurial context. The basic
purpose of this study is to measure the openness to change and self-efficacy effect on the
entrepreneurial culture with a mediating role of creativity. Many researchers have studied
such type of culture from various perspectives, and in this study, the theoretical construct
resembles with the Schein’s (1985) prototype of organizational culture. We have used
innovative culture as a substitute to measure the entrepreneurial culture of an organization
due to its prognosticator power. Self-administered questionnaires were distributed through
physical channel among employees of various firms engaged in the information technology
business.
Making Plans
Everyone plans. What are you wearing today? What will you eat for dinner? Who’s
watching the kids? Many times, you concentrate on your short-term plans more than
your long-term plans. You prepare for life’s immediate concerns instead of preparing for
future prosperity. But, as an American statesman, entrepreneur, inventor, and author,
Benjamin Franklin said, “By failing to prepare, you are preparing to fail.”

What is Business Planning?

Business planning is “The process of determining a commercial enterprise’s objectives,
strategies and projected actions in order to promote its survival and development within a
given time frame.”
Business planning is a basic management function involving the design, steps, and
quantified resources needed to achieve the optimum balance of needs or demands with
available resources.
Definition: A written document describing the nature of the business, the sales and marketing strategy, and the
financial background, and containing a projected profit and loss statement

4 Basic Steps in the Business Planning Process

Ultimately, the definition of business planning can be seen in the business
planning process. Whether you’re planning your business’ opening, growth, projects, risk
mitigation, sale, closing, or anything else, all planning begins with a process. Although
you can make the planning process as long or as complicated as you’d like, I tend to
break the process into 4 Basic Steps.
Step #1 – Decide what you’re going to do.
Identify goals or objectives to be achieved. It has been said that if you aim at nothing,
you will hit it every time. The same is true for your business plans. In order to create an
effective, quantifiable, and measurable plan, you must clearly define your goals. A plan
without a goal is like charting a course for nowhere. You will just continue working in
perpetuity to reach a goal that doesn’t exist.

Step #2 – Determine how you will do it.

Formulate strategies to achieve the goals or objectives. Once you’ve defined your
goals, create a set of tactics and action steps to reach them. It’s a good idea to include
your team in this process, as they will likely be the boots on the ground that are working
through your strategy. Likewise, they may be able to help you find the best way to
achieve your goals because they will have first-hand knowledge of what tactics work
within your existing operations.

Step #3 – Pick who will accomplish it.

Arrange the people required to work on the strategies to achieve the goals. Be clear in
communicating who is responsible for what. Additionally, you need to set a timeframe
that is both realistic and challenging. If you ask for the work to be done in an unrealistic
amount of time, the group may not put any effort toward accomplishing it because they
know that it can’t be done. Likewise, giving too much time could breed procrastination.

Step #4 – Take action.

Implement, direct, and monitor the steps of the action plan. Once your team is set and they
understand what is expected of them and when it is expected to be done, then you need to be
consistent in following up with them. Regular check-ins keep the task fresh on their minds and
enable you to offer additional resources if things are falling behind. Similarly, these follow-up
meetings will help you to identify and address any problem areas that may need to be adjusted.

Ex: clothing,manufacturing machine tools,construction,etc.

 What is Environmental Analysis?
Contents
• P for Political factors
• E for Economic factors
• S for Social factors
• T for Technological factors
• L for Legal factors
• E for Environmental factors
Environmental analysis is a strategic tool. It is a process to identify all the external and internal
elements, which can affect the organization’s performance. The analysis entails assessing the
level of threat or opportunity the factors might present. These evaluations are later translated into
the decision-making process. The analysis helps align strategies with the firm’s environment.
Our market is facing changes every day. Many new things develop over time and the whole
scenario can alter in only a few seconds. There are some factors that are beyond your control.
But, you can control a lot of these things.

Businesses are greatly influenced by their environment. All the situational factors which
determine day to day circumstances impact firms. So, businesses must constantly analyze the
trade environment and the market.

There are many strategic analysis tools that a firm can use, but some are more common. The
most used detailed analysis of the environment is the PESTLE analysis. This is a bird’s eye view
of the business conduct. Managers and strategy builders use this analysis to find where their
market currently. It also helps foresee where the organization will be in the future.
PESTLE analysis consists of various factors that affect the business environment. Each letter in
the acronym signifies a set of factors. These factors can affect every industry directly or
indirectly.

The letters in PESTLE, also called PESTEL, denote the following things:
▪ Political factors
▪ Economic factors
▪ Social factors
▪ Technological factors
▪ Legal factors
▪ Environmental factor
Often, managers choose to learn about political, economic, social and technological factors
only. In that case, they conduct the PEST analysis. PEST is also an environmental analysis. It is a
shorter version of PESTLE analysis. STEP, STEEP, STEEPLE, STEEPLED, STEPJE and LEPEST: All of
these are acronyms for the same set of factors. Some of them gauge additional factors like
ethical and demographical factors.
I will discuss the 6 most commonly assessed factors in environmental analysis.
P for Political factors
The political factors take the country’s current political situation. It also reads the global
political condition’s effect on the country and business. When conducting this step, ask
questions like “What kind of government leadership is impacting decisions of the firm?”

Some political factors that you can study are:

▪ Government policies
▪ Taxes laws and tariff
▪ Stability of government
▪ Entry mode regulations
E for Economic factors
Economic factors involve all the determinants of the economy and its state. These are factors
that can conclude the direction in which the economy might move. So, businesses analyze this
factor based on the environment. It helps to set up strategies in line with changes.

I have listed some determinants you can assess to know how economic factors are affecting
your business below:

▪ The inflation rate

▪ The interest rate
▪ Disposable income of buyers
▪ Credit accessibility
▪ Unemployment rates
▪ The monetary or fiscal policies
▪ The foreign exchange rate
S for Social factors
Countries vary from each other. Every country has a distinctive mindset. These attitudes have
an impact on the businesses. The social factors might ultimately affect the sales of products and
services.

Some of the social factors you should study are:

▪ The cultural implications

▪ The gender and connected demographics
▪ The social lifestyles
▪ The domestic structures
▪ Educational levels
▪ Distribution of Wealth
T for Technological factors
Technology is advancing continuously. The advancement is greatly influencing businesses.
Performing environmental analysis on these factors will help you stay up to date with the
changes. Technology alters every minute. This is why companies must stay connected all the
time. Firms should integrate when needed. Technological factors will help you know how the
consumers react to various trends.

Firms can use these factors for their benefit:

▪ New discoveries
▪ Rate of technological obsolescence
▪ Rate of technological advances
▪ Innovative technological platforms
L for Legal factors
Legislative changes take place from time to time. Many of these changes affect the business
environment. If a regulatory body sets up a regulation for industries, for example, that law
would impact industries and business in that economy. So, businesses should also analyze the
legal developments in respective environments.

I have mentioned some legal factors you need to be aware of:

▪ Product regulations
▪ Employment regulations
▪ Competitive regulations
▪ Patent infringements
▪ Health and safety regulations
E for Environmental factors
The location influences business trades. Changes in climatic changes can affect the trade. The
consumer reactions to particular offering can also be an issue. This most often affects agri-
businesses.

Some environmental factors you can study are:

▪ Geographical location
▪ The climate and weather
▪ Waste disposal laws
▪ Energy consumption regulation
▪ People’s attitude towards the environment
 ❖ Government procedure for entrepreneurial venture

The government supports entrepreneurs: Entrepreneurs are good for the economy
and employment. The government supports innovative startups and helps them grow.

1.Supporting innovative enterprise

The government supports innovative enterprise in a number of ways:

Increasing scope for finance

The government has various financial schemes for:

• entrepreneurs wanting to expand their businesses quickly;

• innovative entrepreneurs.

Promoting cooperation between researchers and the private sector

The government is working with the private sector and knowledge institutions to improve
public-private partnership.

Reducing the regulatory burden on entrepreneurs

The government is taking steps to reduce the regulatory burden on entrepreneurs. These
include granting permits more quickly – or even automatically – and making greater use of
digital technology.

Developing IT tools for entrepreneurs

Providing government services online reduces the regulatory burden on entrepreneurs. IT

also offers unlimited scope for new products or for making business processes more
efficient.

Helping entrepreneurs access networks

Good networks help businesses grow. The government is using the following tools to help
entrepreneurs build solid networks:

• Trade missions abroad. By conducting trade missions abroad, the Netherlands can
access new foreign markets. The focus here is on emerging markets like Brazil and
India.
2.Better links between education and the labour market
The government also wants to establish better links between education and the labour
market. It is important for young people who have finished their training to find a job
quickly and for there to be enough skilled workers for companies.

3.Better cooperation with the franchise sector

The government and the franchise sector created a code of conduct. An independent
disputes committee will also be established. These measures should improve cooperation in
the sector and prevent issues like unfair distribution of income between the entrepreneur
(franchisee) and the owner of the trading name (franchisor).

4.Retail Agenda
Customer behaviour and preferences are changing. More and more purchases are being
made online. The government’s 2015 Retail Agenda describes these and other
developments in the retail sector. It also lists the 20 agreements reached between the
government and the retail sector. These include new ideas on combined zoning for shops,
cultural establishments and hospitality businesses, and additional training for shop workers.

5.Documents
• Letter to Parliament about ambitious enterpreneurship
Letter by Minister Kamp (Economic Affairs) to the House of Reprensentatives about
the policy for ambitious enterpreneurship.

Small industries service institutes (SISI’s)

MAY 6, 2017

The small industries service institutes (SISI’s) are set-up one in each state to
provide consultancy and training to small and prospective entrepreneurs. The
activities of SISs are co-ordinate by the industrial management training division
of the DC, SSI office (New Delhi). In all there are 28 SISI’s and 30 Branch
SISI’s set up in state capitals and other places all over the country.
SISI has wide spectrum of technological, management and administrative tasks
to perform.

Functions of SISI:
1. To assist existing and prospective entrepreneurs through technical and
managerial counseling such as help in selecting the appropriate machinery and
equipment, adoption of recognized standards of testing, quality performance etc;

2. Conducting EDPs all over the country;

3. To advise the Central and State governments on policy matters relating to

small industry development;

4. To assist in testing of raw materials and products of SSIs, their inspection and
quality control;

5. To provide market information to the SISI’s;

6. To recommend SSI’s for financial assistance from financial institutions;

7. To enlist entrepreneurs for partition in Government stores purchase

programme;

8. Conduct economic and technical surveys and prepare techno-economic

feasible reports for selected areas and industries.

NIESBUD:
Ntional institute of entrepreneurship and small business development
.NIESBUD is an apex body for co-ordinating and overseeing the activities of
various institutions and agencies engaged in entrepreneurship development
particularly in the area of small-scale industry.

The main objectives of the institute are:

1. To accelerate the process of entrepreneurship development throughout the

country and among all segments of the society.
2. To help institutions/agencies in carrying out activities relating to
entrepreneurship development.
3. To evolve standardised process of selection, training support and sustenance
to potential entrepreneurs enabling them to set up and run their enterprises
successfully.
4. To provide information support to trainers, promoters and entrepreneurs by
organising documentation and research work relevant to entrepreneurship
development
5. To provide functional forums for integration and exchange of experiences
helpful for policy formulation and modification at various levels.

Functions:The main functions of the Institute are as follows:

(i) Evolving effective training, strategy and methodology.

(ii) Formulating scientific selection procedure)

(iii)Standardising model syllabus for training for various groups.

(iv)Developing training aids, manuals and other tools.

(v)Supporting 9ther agencies engaged in entrepreneurship development.

(vi)Conducting such programmes for promoters, trainers and entrepreneurs

which are commonly not undertaken by other agencies

(vii) Organising all those activities that help develop entrepreneurial culture in
the country.
National Entrepreneurship Development Board (NEDB):

1. It devises and recommends to the Government, the schemes for promotion

of entrepreneurship, for encouraging self- employment in small scale
industries and small business. The Board also recommends suitable facilities
and incentives for entrepreneurship training.
2. Functions of NEDB•
3. National Entrepreneurship Development Board (NEDB)Identify & remove
entry barriers for potential entrepreneurs.Focus on existing entrepreneurs
and identify and remove constraints to survivals & growth.Facilitate the
growth and diversification of existing entrepreneurial venture in all possible
ways.
• Support skill up-gradation and renewal of learning processes among
entrepreneurs and managers.
• Support agencies in the area of entrepreneurship about the current
requirement of growth.
 • To act as catalyst to entrepreneurship development by supporting and
strengthening state level institutions for entrepreneurship development .
Objective

The main objective of the National Entrepreneurship Development Board

(NEDB) Scheme is promotion of entrepreneurship for encouraging self-
employment in small-scale industries and small business.

• I.INTRODUCTION TO DISTRICT INDUSTRIES CENTERS (DICs)

District Industries Centers (DICs) provide full assistance to the
entrepreneurs who are going to start the business on their own and in their
regional places. These centers provide service and support to small
entrepreneurs under a single roof at both pre and post investments. The
DICs program was started on May 1st in the year of 1978 with a view to
providing integrated administrative framework at the district level for
promotion of small scale industries in rural areas. Providing complete
assistance and support to entrepreneurs in multi-regions are the ultimate
aims of DICs. These DIC programs can take over the responsibilities in order
to promote cottage and small scale industries at district level effectively.
DIC’s are the implementing arm of the central and state governments of
the various schemes and programmes. Registration of small industries is
done at the district industries centre and PMRY (Pradhan Mantri Rojgar
Yojana) is also implemented by DIC. Management of DIC is done by the
state government.
II.OBJECTIVES OF DISTRICT INDUSTRIES CENTERS (DICS)

The following are the main objectives of DICs: To identify the new entrepreneurs and
providing assistance to them regarding their own startup’s.

1. To provide financial and other facilities to smaller blocks.

2. To rise the complete efforts for industrialization at district level.
3. To enhance the rural industrialization and also the development of handicrafts. 
4. To reach economic equality in multiple areas of the district.
5. To allow various government schemes to the new entrepreneurs.
 6. To desize the regional imbalance of development.
7. To make all the necessary facilities to come under one roof.

III.FUNCTIONS OF DISTRICT INDUSTRIES CENTERS (DICS)

The DIC’s programme is funded jointly by the concerned state and central government. It took
part in various promotional measures In order to bring out the development of small unit
sectors in the district level. The DIC’s performs the following functions mainly:

1. To spot the entrepreneurs: DICs conducting various motivational programmes so that they
can find new entrepreneurs throughout the districts. It is done particularly under some
schemes and with the association of SIS’s and TCO’s for conducting Entrepreneurial
programmes.

2. Purchase of fixed assets: To purchase fixed assets, the DICs suggest loan applications of the
prospective entrepreneur to some of the concerned financial and development institutions like
NSIC, SISI etc., DCI’s also recommend commercial banks so that to meet the working capital
requirement of SSI to run operations daily.

3. Offers subsidies and other incentives: DCIs help the rural people to subsidies offered by the
government on various schemes. It leads to the betterment in boosting financial capacity of the
units and may undergo for further development activities.

4. Guidance of import and export: Government provides various types of incentives for import
and export on particular goods and services. The license to the importer and exporter is issued
on the basis of recommendation of DIC.

5. Entrepreneurial training programmes: DCIs allow a lot of training programmes for the rural
entrepreneurs who are new to the business world and also recommend other institutions to
take part in such training programs. These are intended to give better assistance to the new
entrepreneurs.

6. Provides employment for unemployed educated ones: The DICs have introduced a scheme
to guide the unemployed educated youth by providing them facilities for selfemployment. The
age limits between 18 to 35 years with minimum qualification of metric or technical trade. The
notable thing here is that the technocrats and women are given importance.

➢ Financial scheme offered to Entrepreneurs

1. ICICI(industrial credit and investement corp. of india)

  IDBI(industrial development bank of India)
Financial institutions offering financial scheme & SIDBI(small industrial
development bank of India)
investment corp. of India)

3. The IDBI was established under the idbi act 1964 as a wholly owned subsidiary
of RBI. The main objective of establishing idbi was t0 set up apex institutions to
coordinate the activities of other financial institute and to act as a reservoir on which
the other financial institutions can draw.IDBI

4. Venture capital fund scheme-Develop new ventures and promote risk enterprise
by new technology. Technology up-gradation scheme-This scheme was
introduced in 1987 for the up-gradating technology in selected capital goods
industries.  Project finance scheme-provide the loans for setting new unit as well
as for expansions and modernization of existing unit. Financial scheme offered by
IDBI

5. Re-finance scheme- provide the re finance for small scale and medium scale
industry Operating support scheme-operating support is given by the IDBI to
financial intermediaries such as SIDBI,IFCI,SFC and other leasing co. 

6. ICICI The world bank was helping the setting up of development banks in under
developed countries. ICICI was the one bank from those banks and estb. 1955.
ICICI provide the various kinds of funds. The primary purpose for which fund are
made available by the corporation is the purchase of the capital assets such as land
building and machinery .
7. Foreign currency-Foreign currency loans are provide to finance the purchase of
imported goods in foreign currency. Project finance- This is the most important
activity of the banks. It grant the loan to business concern in the form of rupees and
foreign currency. The rupees project loan for purchasing for machinery and
equipment. Financial offered by ICICI

8. Technology financing- The ICICI bank provide a wide variety of financial

packages for R& TEST-Trade in environment service ACE- agriculture
commercialization enterprise.  SPREAD- sponsored research and development
programme . D commercialization of technology. It also offer packages to relating
to pollution control and protection. These scheme are- & technology.

9. SIDBI SIDBI was established in 1990 as a development bank exclusively for the
small scale industry. It is central govt. undertaking. It aims to empower the MSME
sector with a view to the contributing to the process of economic growth and
employment and generation and balanced regional development.

10. Loan assistance to institutions provideng primary services and infrastructure

and developing the growth of centers. Loan assistance to the institutions providing
 marketing or market avenue to the small entrepreneurs.  Loans assistance to
private companies which functional on rental basis or contract basis.  Loans
assistance to NSIC. Scheme offered by SIDBI
SFC(state finance corp.)-
The State Finance Corporations (SFCs) are an integral part of institutional finance
structure of a country. Where SEC promotes small and medium industries of the
states. Besides, SFC help in ensuring balanced regional development, higher
investment, more employment generation and broad ownership of various industries.

Functions of State Finance Corporations

The various important functions of State Finance Corporations are:

(i) The SFCs provides loans mainly for the acquisition of fixed assets like land,
building, plant, and machinery.

(ii) The SFCs help financial assistance to industrial units whose paid-up capital and
reserves do not exceed Rs. 3 crore (or such higher limit up to Rs. 30 crores as may be
notified by the central government).

(iii) The SFCs underwrite new stocks, shares, debentures etc., of industrial units.

(iv) The SFCs grant guarantee loans raised in the capital market by scheduled banks,
industrial concerns, and state co-operative banks to be repayable within 20 years.