ENTERPRENEURSHIP DEVELOPMENT

INTRODUCTION

Who is an ENTERPRENEUR

The entrepreneur brings in overall change through innovation for the maximum social good. Human values remain sacred and inspire him to serve society. The entrepreneur is a visionary and an integrated man with outstanding leadership qualities.

NEED OF ENTREPRENEUR

Entrepreneur is one of the most important inputs in the economic development of a country of region within the country.

Entrepreneurial competence makes all the difference in the rate of economic growth.

The small scale industrial sector and business are left completely to private entrepreneurship.

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The need for broad-based entrepreneurial class in India arises from the need to speed up the process of activating the factor of production, leading to a higher rate of economic growth, dispersal of economic activities, development of backward and tribal areas, creation of employment opportunities, improvement in the standard of living of the weaker sections of the society and involvement of all sectors of the society in the process of growth.

CHARACTERSTICS OF ENTREPRENEUR

An entrepreneur must be able to engage in the analysis of various problems and situations in order to deal, with them.

An entrepreneur should have a clear objective as to exact nature of the business, the nature of the good to be produced and subsidiary activities to be undertaken.

An entrepreneur must be able to guard business secrets.

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An entrepreneur must maintain good relation with his customers if he is to establish relations that will encourage them to continue to patronize his business.

An entrepreneur who can effectively communicate with customers, employees, suppliers and creditors will be more likely to succeed than the entrepreneur who does not.

An entrepreneur must have a reasonable level of technical knowledge, and quality of decision making.

ENVIRONMENTAL FACTORS AFFECTING ENTREPREURSHIP

1. Sudden changes in Government policy.

2. Sudden political upsurge.

3. Outbreak of war or regional conflicts.

4. Political instability or hostile Government attitude towards industry.

5. Excessive red- tapism and corruption among Government agencies.

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6. Ideological and social conflicts.

7. Unreliable supply of power , materials, finance, labour and other inputs.

8. Rise in cost inputs.

9. Unfavorable market fluctuations.

10.Non- co-operative attitude of banks and financial institutions.

STRATEGY FOR ENTREPRENEURSHIP DEVELOPMENT

Public entrepreneurship should remain confined only to those industries and sectors where private enterprise, individual or cooperate, is generally not attracted.

All possible efforts be made very seriously for the development of an industrial culture. It should be realised that the central core of entrepreneurship is the motive force since by its very nature, entrepreneurship implies positive action and initiative.

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There is no need to develop management education and industrial training.

The development of backward regions/areas constitute a new challenge. Programmes for their development be drawn up and should be effectively implemented.

Economic administration by the sate should be improved and made more effective so that economic policies may fully achieve their objectives in the overall interest of the economy.

PROJECT REPORT

A project report is a synchronisation synthesis of relevant data in respect of a project which serves as a guide to management and records merits and demerits in allocating resources to production of specific goods or services. A project report is prepared for analysing the form of opportunities in the contemplated project.

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Project report includes information on economic, technical, financial managerial and production aspects.

Economic Aspects: The project report should be able to present economic justification for investment. It should present analysis of the market for the product to be manufactured.

Technical Aspects: The project report should give details about the technology needed, equipment and machinery required and the sources of availability of plant and machinery.

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Financial Aspects: The report should indicate the total investment required. It should also highlight the sources of finance and the ‘entrepreneur’s contribution.

Production Aspects: It should contain a description of the product selected for manufacture and the reasons for such selection.

Managerial Aspects: The report should contain qualifications and experience of the persons to be put on the managerial of the job.

PREPRATION OF PROJECT REPORT

The project report being compiled by the entrepreneur should accomplish the vital task of providing a ‘bird’s eye-view of the entire spectrum of activity.

Technical Feasibility: This would encompass factors such as description of the product specifications to be adopted, raw material availability as per requirements, outline of manufacturing process inclusive of a flow-process chart, quality control measures, power supply, availability of water, transport and communication network.

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Economic Viability: This essentially involves compilation of demand for domestic and export markets, most appropriately installed capacity requirements in regard to capital assets, evaluation of the production cost, capturing a substantial share of market sales, revenue expected, , suitable price structure, and so on.

Financial Implications: Project cost covering non-recurring expenses as land and building, plant and machinery, pre-operative expenses and so on and recurring expenses such as working capital needs, raw material needs, wages for personnel, etc.

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Managerial Competence: The new entrepreneur manager entering the small scale sector should devote his full attention to the new venture and should consider the product line chosen as a ‘major economic activity’. The new enterprise must emerge itself as a customer-satisfying and customer-producing organism.