AEX 321 Entrepreneurship Development & Business Communication (1+1)

Dr. Ganesamoorthi, S.

Associate Professor of Agril. Extension &

Course Teacher

III B.Sc. (Hons.) Agribusiness Management II Semester of 2022-23

Course Outline & Introduction

Meaning, Concept & Definitions

Entrepreneur(s)

• Economic Agent
• Drivers of Economic Development
• Steady Growth in income
• Entrepreneur
• Knowledge, Skills, Initiative, Drive, Spirit of Innovation & Goals
• One who identifies & seizes opportunities for Economic Benefits.

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Entrepreneurships in Agri.

• Virtual co-operative for subsistence farmers
• Digital agriculture platform connecting farmers with sponsors
• After-school programs, summer camps, farm tours, and Willing Workers on Organic Farms (WWOOF) placements.
• Hydroponic system sustainable with LED light
• Farms crickets and produces a high-protein cricket blended flour, Power Flour
• Reducing the reoffending rate through on-the-job baking training for prisoners and ex-offenders

Entrepreneurship

• Dynamic activity
• Helps the entrepreneur in Changing
• Process of production
• Innovation in production
• New Usage of materials
• Creation of Market, etc.
• Develops Attitude to foresee risk and uncertainty with a view to achieve certain strong motive
• Doing something in a new & effective manner

CONCEPT OF ENTREPRENEUR

• French word ‘entreprendre’ means ‘to undertake’
• 16^th Century Military Expeditions -‘Entrepreneurs’
• 18^th Century French Economist Richard Cantillon used the term in business
• Entrepreneur is “one who takes the risk of starting a new organization or introducing a new idea, product or service to the society”.

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J.B. Say

• “An Entrepreneur is the economic agent who unites all means of production, land of one, the labour of another and the capital of yet another and thus produces a product”
• By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit”
• An action oriented entrepreneur is
• Highly calculative individual & willing to undertake risks to achieve goals

Joseph Schumpeter

• “An entrepreneur in an advanced economy is an individual who introduces something new in the economy
• a method of production not yet tested by experience in the branch of manufacture concerned
• a product with which consumers are not yet familiar
• a new source of raw material or
• a new market and
• the like”.

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Cantillon

• “An entrepreneur is the agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future”.

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Conclusion

• Entrepreneur is the person
• who bears risk,
• unites various factors of production,
• to exploit the perceived opportunities
• in order to evoke demand,
• create wealth and employment.

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CONCEPT OF ENTREPRENEURSHIP

• Synonymously used with ‘Entrepreneur’
• Two sides of a coin & Conceptually different
• Entrepreneurship is the indivisible process flourishes, when the interlinked dimensions of individual psychological entrepreneurship comes together such as:
• Entrepreneur traits,
• social encouragement,
• business opportunities,
• Government policies,
• availability of plenty of resources and opportunities
• coverage towards the common good,
• development of the society & economy.

Entrepreneurship

• Process of
• identifying opportunities in the market place,
• arranging the resources required to pursue these opportunities and
• investing the resources to exploit the opportunities for long term gains.
• It involves creating wealth by bringing together resources in new ways to start and operate an enterprise.

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Cole

• “purposeful activity of an individual or a group of associated individuals undertaken to initiate, maintain & aggrandize profit by production or distribution of economic goods & services”.

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Higgins

• “function of foreseeing investment & production opportunities, organizing an enterprise to undertake a new production process, raising capital, hiring labour, arranging the supply of raw materials, finding site, introducing a new technique, discovering new resources or raw materials and selecting top managers for day to day operations of the enterprise”.

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Conclusion

• Risk bearing, innovating and resource organizing aspects of an individual or group of people to achieve goal through production or distribution of products or services.
• Set of activities performed by an entrepreneur thus, entrepreneur proceeds entrepreneurship.
• Entrepreneur >>Entrepreneurship >> Enterprise
• Person/ Actor / Subject >>Process / Act / Verb >> Outcome / Object

Factors responsible for Entrepreneurship

• Tradition of families and Societies
• Religious, Social and Cultural factors
• Psychological Factors
• Achievement, Leadership, Self confidence, Creativity, Vision, Determination, etc.
• Security orientation, conformity, need for affiliation
• Political System
• Economic Policies of Govt./Institutions

TYPES OF ENTREPRENEURS

Aggressive / Innovative

• who assembles & synthesize information
• Introduces new combinations of factors of production
• Smell of innovativeness
• Sense the opportunities
• For introduction new ideas new technology, new markets and creating new organizations.
• Helpful for their country
• Bring transformation in life style

Imitative/ Adoptive

• Adopts successful innovation of others
• Imitate and setup enterprise in the same manner.
• Helpful in less developed countries
• growth of enterprise & entrepreneurial culture
• Adopting tested technology >> Generate ample employment avenues for the youth
• treated as agent of economic development

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Fabian

• Timid & Cautious
• Imitates only if failure will damage his business
• skeptical in adopting or innovating new technology
• Not adaptable to changing environment
• Love to remain with age-old techniques of production
• Adopt the new technology when they realize inevitable – Ambassador

Drone

• Conservative / Orthodox / Laggards
• Don’t get rid off traditional business / machinery / systems
• Always feel comfortable In spite of societal changes
• Refuse to adopt the changes
• Entr. Activity restricted to one or two innovations
• refuse to adopt changes & face risk of reduced returns - Jaggery

B. Arthur H. Cole : Empirical / Rational / Cognitive

• Empirical
• hardly introduces anything revolutionary
• follows the principle of Rule of Thumb
• Rational
• Well informed about the general economic conditions
• introduces changes which look more revolutionary
• Cognitive
• Well informed
• draws upon the Advice & Services of experts
• introduces changes that reflect complete break from the existing scheme of enterprise.

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Basis of Ownership

• Private
• Motivated by profit
• would not enter those sectors of the economy in which prospects of monetary rewards are not very bright.
• Public
• underdeveloped countries government will take the initiative to start enterprises

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Based on the Scale of Enterprise

• Small scale
• Popular in underdeveloped countries
• Lack necessary talents and resources
• large scale / revolutionary technological changes
• Large scale
• Developed countries – large scale enterprises
• Posses the financial & necessary enterprise to initiate & introduce new technical changes.
• Results in sustain & develop a high level technical progress

New Classifications

• 1. Solo operators
• Prefer to set up their business individually
• own capital, intellect and business acumen
• form of proprietorship
• 2. Active partners
• Jointly put their efforts to build enterprise
• Pooling together their own resources
• actively participate in managing daily routines

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New Classifications

• 3. Inventors
• Primarily involve themselves in R & D
• Creative in character
• Feel happy in inventing new products, technologies and methods of production
• 4. Challengers
• Challenges to establish business venture as mark of achievement.
• Improve standard and face boldly the odds and adversities
• Use business acumen and talent to convert the odds into opportunities to profit
• no challenge >>> no charm in life
• never hesitate to plunge into uncertainties

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New Classifications

• 5. Buyers (entrepreneurs)
• explore opportunities to purchase existing units (ceased or running)
• turn them around using experiences, expertise and business acumen
• Free of hassles (building infrastructures and other facilities)
• 6. Life timers
• Believe business is the part and parcel
• reunite successfully as a matter of ego satisfaction
• strong desire for taking personal responsibility
• Family enterprises with high personal skill

Other

• Mobile entrepreneurs
• Not necessary to have a fixed locality / offices
• Depend on ICTs, Mobile apps, etc.
• Managerial entrepreneurs
• Manage the things by out sourcing
• Depend on Newer / tailor made business models

• Innovative
• Innovation in every sphere of entrepreneurship
• Empire builder
• ‘balance sheet affluent’
• Doesn’t sell, go for long
• Serial Entrepreneurs
• Involves angel investors

5.5.23

• Functions of Entrepreneur
• Characteristics of entrepreneur
• Difference between entrepreneur & manager
• Stages in setting up & managing enterprise
• SWOT Analysis

Functions & Characteristics of Entrepreneur

General Functions of Entrepreneur

• Opportunity seeker
• Organizer and Coordinator
• Executor of functions to establish
• Perceiver of opportunities &
• Mobilizer of resources
• Initiation
• Choice of location
• Innovation
• Coordination
• Risk and uncertainties

Important Functions of Entrepreneur

• Idea generation
• Determination of objectives
• Raising of funds
• Procurement of raw materials
• Procurement of machinery
• Market research
• Determination of form of enterprise
• Recruitment of manpower
• Implementation of the project

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1. Idea Generation

• vision, insight, observation, experience, education, training and exposure
• product selection and project identification
• environmental scanning and market survey
• generate as many ideas as he can

2. Determination of objectives

• determine and lay down the objectives of the business
• spell out on clear terms
• nature & type of business
• manufacturing / service / trading business

3. Raising of funds

• All activities depend finance & its management
• Internally & External
• aware of sources of funds and formalities
• knowledge on Govt. schemes such as PMRY, SGSY, REGP, etc.
• Seed capital, fixed and working capital

4. Procurement of raw materials

• identify the cheap and regular sources of supply
• reduce the cost of production & face competition

5. Procurement of machinery

• Technology
• Capacity
• Manufacturers & suppliers
• Indigenous or foreign
• After-sales service facilities
• Warranty period of the machineries

6. Market Research & Product analysis

• Systematic collection of data regarding the product
• Undertake market research persistently
• Demand >> Supply >> Price >> Size of the customers

7. Determination of form of enterprise

• Nature of product
• Volume of investment
• Nature of activities
• Types of product
• Quality of product
• Quality of human resources, etc.
• Sole proprietorship, Partnership, Joint Stock Company and Cooperative society
• Determination of ownership right
• Essential to acquire legal title to assets

8. Recruitment of Manpower

• Estimate manpower need
• Selection procedure
• Scheme of compensation
• Rules of training & development

9. Project Implementation

• Implementation schedule / action plan
• Time-bound
• conception stage to commissioning
• avoid cost, time overrun & competition

Entrepreneurship & Management�The Difference

Entrepreneurship & Management

Entrepreneurship & Management

Characteristics of Entrepreneurs

• Key figure in economic progress
• Introduces new things
• Business leader and not simple owner of capital
• Telescopic faculty, drive and talent
• Perceives business opportunities and promptly seizes for exploitation
• M. M. P. Akhouri, former Executive Director
• National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi.
• “Entrepreneur is a character who combines innovativeness, readiness to take risk, sensing opportunities, identifying and mobilizing potential resources, concerns for excellence and who is persistent in achieving the goal.”

1. Need to achieve

• strong desire to achieve higher goals
• Inner-self motivates their behaviour towards high achievement
• Dream Vs. Action
• High n-Ach factor act continuously
• Winning is achievement

2. Independence

• Dislike to work for others
• prefer to be Own BOSS
• Want to be Responsible for their decisions

3. Risk-bearing

• Take decisions under uncertainty
• willing to take risk but never gamble
• Choose moderate / calculated risk
• enough to excite with reasonable chance

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4. Locus of control

• Rotter’s locus of control theory
• “an individual perceives the outcome of an event as being either within or beyond his personal control”
• Believe in their own ability
• Control the consequences of their endeavor
• Influencing their socio-economic environment
• Do not leave everything to luck

5. Perseverance

• Quality of Sticking to job
• Committed to specific goal & course of action - Become absorbed to it
• Solve all problems personally that come across
• Work sincerely till complete implementation

6. Positive self-concept

• Always Positive
• Directs his fantasies and dreams
• towards achievement of worthwhile goals
• sets extraordinary standard of excellence
• Derived from SWOT
• He utilizes his positive knowledge to support his thinking
• Never Exhibits negative attitude

7. Ability to find & explore opportunities

• always alert to opportunities
• quick to see and grab
• exhibit an innovative turn of mind
• convert problems into viable opportunities
• Plan intellectually & anticipate carefully
• how to achieve goals in realizing an opportunity

8. Hope of success

• Significant quality of entrepreneurial personality
• Set their goals with a hope
• basis of facts and their ability to manoeuver to their advantage

9. Flexibility

• Measure the pros and cons of a decision
• Change if the situation demands
• Never reluctant to revise
• Open mind without rigidity

10. Analytical ability of mind

• Unaffected by personal likes & dislikes
• Stand beyond prejudices as they are realistic
• Select experts
• rather than friends and relatives
• Avoid emotional & sensitive attitude towards their business or problem.

11. Sense of efficacy

• oriented towards action for accomplishment
• problem solvers Vs. problem avoiders
• Chalk-out future goals
• Make planning to achieve them

12. Openness to feedback & learning from experience

• Like to have feedback of their performance
• Modify their plans
• Learn from their experience and never get discouraged

13. Confronting uncertainty

• Optimistic and take every odd as opportunity
• Manoeuver their environment for rational accomplishment
• Win by application of extraordinary insight & skill

14. Interpersonal skills

• Comfortable to deal people at all levels
• raw material suppliers, customers, bankers, etc
• Adapt to deal with everyone with their interpersonal

15. Need to influence others

• After goals set play the role of manager
• Influencing others (n Power)
• a low need to establish emotional relationship (low n Affiliation) and
• a high need to discipline one’s own self
• to inhibit over expression of their personality

16. Stress takers

• Capable of working for long hours & solve complexities
• Captain of an enterprise faces a number of problems
• right moment >> right decisions
• physical & mental stress
• Faces challenges & keeps cool under monotony.

17. Time orientation

• Anticipate future trends
• based on past experience & exposure
• Stick to the Time pragmatically

18. Innovators

• Successful entrepreneurs are innovators
• Constantly put efforts to
• Introducing new products
• New methods of production
• Opening new markets and
• Recognizing the enterprise

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19. Business Communication skill

• Motivate others
• Written & oral communication skills
• leads to enterprise efficiency

20. Telescopic faculty

• tend to think ahead for future
• Future orientation
• quite alert to the changing conditions of the time
• tend to produce goods & commodities as per the changing demands

21. Leadership

• “Ability to exert interpersonal influence by means of communication towards the achievement of goals”
• Provide the necessary spark to motivation
• by guiding, inspiring, assisting and directing the members of the group for achievement of unity of action, efforts and purpose.
• Own leadership styles and behaviour reduce the problems by proper handling of situations

22. Business planning

• Deciding in advance what, when and how to-do a thing
• equipped with skill & knowledge to prepare business plan
• follows the principles of management
• Business Planning
• act as a bridge between the present position and expected future shape
• provides a sense of vision to the entrepreneurs to cope with risky and uncertain situation.

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23. Decision making

• Choosing a particular course of action at every stage of creation of an enterprise out of several alternative courses for the purpose of achieving specified goals.
• necessary at all times
• mostly at conditions of uncertainty and risk

24. Ability to mobilize resources

• Ability to marshal all inputs to obtain end product
• Mobilize 6Ms
• Man, Money, Material, Machinery, Market and Method effectively
• gap filling & input completing function

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25. Self-confidence

• Must have self-confidence to accomplish the task effectively & efficiently
• Take own decisions on uncertainty & stick to it confidently
• even if there occurs initial setbacks

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Misconceptions / Myths

Misconceptions / Myths of Entrepreneurs

• Entrepreneurs are born
• Entrepreneurs are amoral
• Entrepreneurs are high risk takers
• Entrepreneurs are inventors
• Entrepreneurs are power hungry & empire builders
• Wealth is entrepreneurs’ primary motive.

Recap

• Functions of entrepreneurs
• General & important
• Seek Opportunity, organise/coordinate, execute, perceive, mobilise
• Idea, objectives, funds, raw material, machinery, research, form, manpower, implementation
• Difference between entrepreneurship and Management
• Focus, resource, approach, motivation, status, reward, innovation, risk, decision making, scale, skill requirement, specialization, goal, rewards
• Characteristics of entrepreneurs
• Misconceptions / Myths

Today

• Characteristics of an Enterprise
• Types of Enterprises
• Steps in setting up of an enterprise
• Steps in Managing of an enterprise
• Models
• Market driven, need based, uniqueness.
• SWOT
• Motivation
• Achievement Motivation – Entrepreneurial Motivation
• n-ach, n-Power, n-affiliation and n-autonomy

Characteristics of an Enterprise

Characteristics of an Enterprise

• Profit motive
• Return on investment
• Encasing opportunity
• Business sense
• Cost for everything
• Organized working
• Timing

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• Calculated risk
• Planning
• Hard/ smart working
• Cycling of cash
• Controlling
• Growth orientation
• Innovation

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Types of Enterprises

Steps in setting up and Managing

Steps in setting up an Enterprise

1. Deciding to go into business
2. Analyzing strengths and weaknesses
3. Product selection
4. Market survey
5. Form of ownership
6. Location
7. Technology
8. Machinery and equipment

9. Project report
10. Finance
11. Power connection
12. Machinery Installation
13. Manpower Recruitment
14. Raw material
15. Production
16. Marketing
17. Quality

Steps in Managing an Enterprise

1. Planning
2. Organising
3. Staffing
4. Leading
5. Controlling

6. Finance
7. Quality control
8. Market linkage
9. Alternate opportunity

Models of Entrepreneurship

• Market driven
• Demand estimation, forecast, gap
• Need based specific
• Felt & unfelt needs
• Uniqueness
• Features / advantages for specified segment of society

SWOT

• Liberalisation & Economic Reforms
• Opportunities Vs. Challenges
• Competitive
• Technology
• Quality
• Productivity
• Internal & External Analysis

Internal Analysis

• Organisational position
• Production
• Finance
• Marketing
• R&D
• Distribution

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• Sales Volume
• Market share
• Profitability

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External Analysis

• Scan threat and opportunities
• Industry performance
• Competitive activity
• Review of growth
• Decline of other industries

Strength & Weakness – Internal Analysis

• Periodically evaluate
• Management / consultant
• Review
• Marketing
• Finance
• Competencies
• Neither correct all nor rejoice
• Slowly convert weakness into Strength

External Analysis : Parts of environment to monitor

• Key Macro environmental forces
• Demographic
• Economic
• Technological
• Legal
• Social
• Cultural

• Significant Micro Environmental factors
• Customers
• Competitors
• Distribution Channels
• Suppliers

ADVANTAGES OF SWOT ANALYSIS

• Know the field in demand & venture
• Develop new technology
• Analyse to develop a product / improve
• Improve production process
• Decide the future goals
• Frame Short term & long term missions

ADVANTAGES OF SWOT ANALYSIS

• Select alternatives to exploit opportunities & face threats
• Give priorities to different goals and courses of action
• Formalize Effective communication & implementation Plan

ADVANTAGES OF SWOT ANALYSIS

• Determine Major functions & sub-functions
• Expand range of services & benefits
• Get insights of social, political, legal, economic, technological factors
• Work out policy for meeting competitor’s strategies

Recap

• SWOT
• Internal Analysis
• Strength
• Weakness
• External Analysis
• Opportunities
• Threats
• Examples for S-W-O-T
• Parts of Environment to monitor
• Macro - DETLSC
• Micro Factors - CCDS
• Advantages
• Technology, develop, improve, decide, Frame, Alternatives, Prioritise, Formalise, Functions, Insights, policy etc.

Phases of entrepreneurial venture

• Preparation
• Incubation
• Idea generation
• Identification of enterprise
• Initiation of enterprise
• Nurturing enterprise
• Concluding / transition phase

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Entrepreneurial project identification (Verma et. al.)

• Availability of market
• Availability of critical inputs
• Benefit cost ratio
• Availability of technology
• Availability of skills
• Government priority

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Benefits of ED

• Income & employment
• New product & Services
• New exploration of fields
• Optimal resource utilisation
• Value addition to product /services
• Developing capabilities

Entrepreneur & Motivation

• Socio Economic Development
• Change Agent & Nation Builders
• Employment – Avenues
• Poverty & Unemployment

Small Scale Sector

• 1960s
• Employment
• Tap Entrepreneurship Talent
• Promotional Packages
• Imbibe entrepreneurial culture
• 1990s
• Ample Opportunities

EDPs in Late 1960s

• Entrepreneurship Development Programmes (EDPs)
• Gujarat Industrial Investment Corporation (GIIC) and other agencies
• 3 Month entrepreneurship development programme
• EDPs’ Target
• Energetic and Potential Entrepreneurs
• Desire to achieve goals
• Objectives of EDPs
• SET UP – MANAGE - EARN - UNDERTAKE

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ACHIEVEMENT MOTIVATION & Entrepreneurial Motivation

�ENTREPRENEURIAL MOTIVATION�

• The entrepreneurial motivation is the process that activates and motivates the entrepreneur to exert higher level of efforts for the achievement of his/her entrepreneurial goals.
• In other words, the entrepreneurial motivation refers to the forces or drive within an entrepreneur that affect the direction, intensity, and persistence of his / her voluntary behaviour as entrepreneur. 
• Perception of self efficacy and yet to feel interested/motivated by the idea of being on their own comprise a potential, future source of entrepreneurship
• Entrepreneurial motivation is the process of transforming an ordinary individual to a powerful businessman, who can create opportunities and helps in maximizing wealth and economic development.

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Achievement motivation

• Degree to which a person excels Regardless of Social Rewards.
• It is the social value that emphasizes a desire for excellence in order to attain a sense of Personal Accomplishment.
• Features Accompany high level of achievement motivation
• Moderate risk propensity;
• Undertaking innovative and engaging tasks;
• Internal locus of control and responsibility for own decisions and behaviors;
• Need for precise goal setting.

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Achievement motivation

• Tendency to strive for success or to attain a desirable goal.
• The term Need for achievement (N-Ach) was first used by Henry Murray  
• important implications of N-Ach.
• involves an inclination on the part of the individual.
• involves a task-oriented behavior that can be evaluated.
• involves some standard of excellence that may be either internally or externally imposed.

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What motivates a person for Entrepreneurship?

• Internal Factors:
• Desire to do something new
• Become independent
• Achieve what one wants to have in life
• Be recognized for one’s contribution
• One’s Educational Background
• One’s occupational background and
• Experience in the relevant field

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• External Factors
• Government assistance and support
• Availability of labour and raw material
• Encouragement from big business houses
• Promising demand for the product

McClelland's Human Motivation Theory

• David McClelland 1960s
• Maslow's Need Hierarchy Theory
• Physiological, Safety, Social, Esteem & Self-Actualization
• Needs that are not innate

~ learned through culture, age and experience

• NEED FOR ACHIEVEMENT
• NEED FOR POWER
• NEED FOR AFFILIATION
• NEED FOR AUTONOMY / INDEPENDENCE

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Need for Achievement (n-Ach)

• Desire to accomplish something difficult
• Best opportunity for
• Making the Best Use of your talents
• Adhering to rules & regulations
• Use of Personal Creativity & Innovativeness
• Create a work environment that suits your abilities & interests.

Need for Power

• Concern for Influencing People or the Behaviour of Others for moving in the chosen direction and attaining the envisioned objectives
• Politicians, social religious leaders, Chief Executive Officers (CEOs), Government Bureaucrats/Civil Servants
• Desire to control or influence others. It is not necessarily associated with actually having power, but instead with the desire to have power.

Need for Affiliation (N-Aff.)

• person's need to feel a sense of involvement and "belonging" within a social group and characterized as generally friendly, outgoing, cooperative, and eager to join groups.
• Whatever parents do, they do it for their children
• tendency of the people to conform to the wishes and norms of those whom they value
• Social Activists, Environmentalists, Teachers, and Doctors and Nurses
• Innovative, Trendsetters and Tradition Breakers
• low on affiliation
• Family as Bedrocks
• Desire to carry on the tradition of business
• First generation of entrepreneurs in Independent India
• Patriotic fervour & Desire to rebuild the economy

Need for Autonomy (N-Aut.)

• Desire for
• independence, responsible & accountable to oneself
• Fullest Expression one’s abilities
• rather than some external authority for performance.
• Determination
• not to work for someone else
• Absence of little freedom / discretion
• decisions / course of action
• drives to start their own ventures
• Desire for preserving one’s ethos

KAKINADA EXPERIMENT(1964)

• David McClelland - role of ‘n Ach’ is the critical factor for entrepreneurial development.
• America, Mexico, Bombay & Kakinada in Andhra Pradesh
• Small Industries Extension and Training Institute SIETI - Kakinada
• Induced achievement motivation in adults 
• Young adults were selected & three month training
• encouraged to introspect
• their imagination stimulated
• could develop community goals & achieve personal motivation.

Recap

• Entrepreneurship Development
• 1960s : Small Scale Sector
• Tap talent
• Promotional packages
• 1990s: NEP - LPG
• Competitiveness
• Technology, quality & Productivity
• Motivation
• Achievement Motivation
• Achievement Motivation Training
• Entrepreneurial Motivation
• Which needs motivates for entrepreneurship
• Need for Achievement
• Need for Power
• Need for Affiliation
• Need for autonomy

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Govt. Policies and Programmes

• Industrial Policy Resolutions (IPRs) - 5
• 1948
• 1956
• 1977
• 1980
• 1990
• NIP – 1991
• NSEP
• Foreign Trade Policies - 4
• 2009 – 2014
• 2015 – 2020
• 2009 – 2014
• 2015 – 2020

Govt. Programmes for Development & Promotion of Enterprises

1. Prime Minister’s Employment Generation Programme (PMEGP)
2. Market Development Assistance Scheme for Micro/ Small manufacturing Enterprises/ Small & Micro Exporters
3. Scheme for Assistance to Training Institutions
4. Rajiv Gandhi Udyami Mitra Yojana
5. Credit Link Capital Subsidy Scheme for Technology Upgradation
6. Micro & Small Enterprises-Cluster Development Programme (MSE-CDP)
7. Credit Guarantee Fund Scheme for Micro And Small Enterprises
8. National Award Scheme
9. Scheme to Support 5 Selected Universities / Colleges to run 1200 Entrepreneurship Clubs.
10. Schemes for Women Entrepreneurs
• Mahila Udyami Yojana (MUY)
• Priyadarshini Yojana (PY)
11. Food Parks

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GOVERNMENT POLICY AND PROGRAMS AND INSTITUTIONS FOR ENTREPRENEURSHIP DEVELOPMENT

• Industrial Policy Resolutions (IPRs)
• IPR 1948
• IPR 1956
• IPR 1977
• IPR 1980
• IPR 1990
• 1991 – New Industrial Policy
• NEW SMALL ENTERPRISE POLICY (NSEP) 1991

Industrial Policy Resolutions (IPRs)

• socialist outlook with strong public sector
• IPR 1948
• Industries with Monopoly of state, Mixed Industries (Basic/ key industries), regulated industries, Private Enterprises
• Creation and utilization of local resources & skills
• Small Scale Sector Protection
• Priority Status to Cottage and small scale industries
• harmonious Industrial relations through fair wage rates, social security to workers, etc.
• no discrimination between the Indian owned and foreign industries
• India entered into a mixed economy 
• Industries (Development & Regulation) Act, 1951
• regulate the industrial development - advent of license Raj 
• First FYP 1951-56
• agriculture and improving food grain production 

Industrial Policy Resolutions (IPRs)

• IPR 1956
• development of heavy industries
• Schedule A, B and C industries (Sectors Union 17 : 12 State : Rest)
• Defence, atomic, steel, coal, etc.
• Fertilizer, drugs, plastics, chemicals, etc.
• clear emphatic policy & incentive support
• Protection + Development of small industrial sector
• Developing Industries in Backward areas
• Outcome
• Share of public sector entities
• Contribution to GDP from industry 11.8-24.6
• Protection of industries

Industrial Policy Resolutions (IPRs)

• IPR 1973
• Priority to power generation & transmission
• Expanded SSS industries 180-500
• No compulsory obligation to export
• Price control of agri/ industrial products regulated

Industrial Policy Resolutions (IPRs)

• IPR 1977
• Upgradation of technology of small units, inputs
• Investment limits increased
• (tiny 2L, SSU 20L & Ancillaries 25L)
• building the buffer stock of essential raw materials
• through SSID Corporations (States) & NSIC
• Utilization Resources & Skill
• DICs focusing on regional growth of industries
• IDBI & KVIB establishment
• Protection + Development + Promotion

Industrial Policy Resolutions (IPRs)

• IPR 1980
• Industrial infrastructure & Higher Productivity
• Promotion of Agro Based Industries (ABIs)
• Consumer Protection &
• Quality Control
• Wage employment
• Development of Entrepreneurial Spirit
• IPR 1990
• Economic Liberalization
• Introduce simple procedures, formalities, rules & regulations
• Promotion of Women & Youth entrepreneurship
• SIDBI

New Industrial Policy 24.6.1991

• Objectives focussed Entrepreneurship
• Scrapped the limits on assets for the MRTP companies
• abolished the licensing requirement
• except 18 specific group of Industries >> 5
• Reduce and remove the bureaucratic red-tapism

Development under NIP 1991

• Development of the Capital Market
• Spread industrialisation to backward areas
• through appropriate intensive institutions and infrastructure investments
• Dismantling of Regulatory System
• Encouragement of entrepreneurship

NEW SMALL ENTERPRISE POLICY (NSEP) 1991

• Main Thrust
• to provide adequate support to TINY AND MICRO enterprises
• through imparting more vitality and growth impetus
• to enable it to CONTRIBUTE ITS MIGHT fully to the economy
• in terms of growth of output, employment & exports.
• Small Scale Sector
• Substantially DE-LICENCED
• Concerted efforts to DEREGULATE AND DE-BUREAUCRATIZE
• REMOVE ALL BARRIERS on its growth potential
• Reposing GREATER FAITH in small & new entrepreneurs

12 Thrust Areas of NSEP

1. Inclusion of industry - Business & Service Related Enterprises irrespective their location as small scale industries
2. Widen scope of National Equity Fund, enlarge Single Window Scheme and associate Commercial Banks with provision of Composite Loan Scheme
3. Financial support to entrepreneurs by allowing Equity Participation Up To 24% of share
4. Technology Development Cell Setup in Small Industries Development Organization (SIDO)
5. Setting up of Export Development Centre in SIDO
6. Liberalization by Limited Partnership Act

12 Thrust Areas of NSEP

7. Integrated Infrastructure Development System
8. Technology Development & Equitable Distribution of Local & Imported Raw Material on a priority to small & tiny sector
9. Improvement in Incentive Delivery System
10. Marketing, Market Promotion and Export Support Modernization.
11. Quality Upgradation & Procedural Simplification
12. Increase in investment limit from 2 to 5 lakhs for plant & machineries and tiny industrial units

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NSEP: Financial Assistance for Entrepreneurs

• Financial institutions
• Key Role of providing Finance & Counseling
• start new ventures, modernize, diversify and even rehabilitate
• Technical scheme
• Technically Qualified / Experienced Professionals
• up to 7.5 Lakhs
• Special Capital Scheme
• Technically qualified / Experienced Persons
• Short Loan Assistance up to Rs. 4 Lakhs

NSEP: Financial Assistance for Entrepreneurs

• Seed Capital Scheme
• Assistance Towards Equity on short terms
• up to Rs. 15 Lakhs along with Term Loan for technically qualified /experienced.
• Composite Loan Scheme
• Equipment Finance and Capital for artisans and rural industries

NSEP: Financial Assistance for Entrepreneurs

• Disabled entrepreneurs : 100% finance up to Rs. 50,000
• Modernization – up to 90 Lakhs
• for replacement / renovation of equipment of Successful Units - 5 years existence

Foreign Trade Policies 2009-14, 2015-20

• Foreign Trade Policy 2009 - 2014
• To reduce transaction & handling costs
• Single window system to facilitate export of perishable agricultural produce
• Creation of Multi-functional Nodal Agencies to be accredited by APEDA

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Highlights FTP (2015-2020)

• FRAMEWORK for increasing exports of goods and services, Generation of employment and increasing value addition in line with the ‘MAKE IN INDIA’ programme
• Two New Schemes
• Merchandise Exports from India Scheme (MEIS)
• for export of specified goods to specified markets
• Services Exports from India Scheme (SEIS)’
• for increasing exports of notified services
• Duty Credit Scrips issued under MEIS and SEIS
• Goods imported against these scrips are fully transferable.

Highlights FTP (2015-2020)

• Grant of Rewards under MEIS, 3 Grouping of countries
• Rates of rewards 2-5%
• To nudge procurement of capital goods from indigenous manufacturers under the EPCG scheme
• Reducing Specific Export Obligation to 75%

Highlights FTP (2015-2020)

• To give a boost to exports of DEFENSE AND HI-TECH items.
• To get benefit of MEIS (for values up to INR 25000) E-Commerce exports
• Courier or Foreign Post Office
• handloom products, books/periodicals, leather footwear, toys & customized fashion garments

Highlights FTP (2015-2020)

• Manufacturers, who are also status holders - ‘Approved Exporter System’
• able to SELF-CERTIFY their manufactured goods in phases
• qualifying for preferential treatment
• Getting fast access to international markets

Highlights FTP (2015-2020)

• Encouraging manufacturing and exports
• fast track clearance facility
• permitting to share infrastructure facilities
• permitting inter unit transfer of goods & services
• permitting to set up warehouses near the port of export
• to use duty free equipment for training purposes

Highlights FTP (2015-2020)

• 108 MSME clusters identified for focused interventions
• ‘Niryat Bandhu Scheme’ has been galvanized and repositioned to achieve ‘Skill India’.
• Trade facilitation & enhancing the ease of doing business
• To move towards paperless working in 24x7 environment.

Govt. Programmes for Development & Promotion of Enterprises

1. Prime Minister’s Employment Generation Programme (PMEGP)
2. Credit Guarantee Fund Scheme for Micro And Small Enterprises
3. Interest Subsidy Eligibility Certificate (ISEC)
4. Market Development Assistance Scheme for Micro/ Small manufacturing Enterprises/ Small & Micro Exporters
5. Scheme for Assistance to Training Institutions
6. Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
7. Credit Link Capital Subsidy Scheme for Technology Up gradation

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Govt. Programmes for Development & Promotion of Enterprises

8. Micro & Small Enterprises-Cluster Development Programme (MSE-CDP)
9. ASPIRE - A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship
10. SFURTI- Scheme of Fund for Regeneration of Traditional Industries
11. National Award Scheme
12. Scheme to Support 5 Selected Universities / Colleges to run 1200 Entrepreneurship Clubs.
13. Schemes for Women Entrepreneurs:
• Mahila Udyami Yojana (MUY)
• Priyadarshini Yojana (PY)
14. Govt. Programmes for Agribusiness
• Food Parks

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1. PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP – 2008)

• New Credit Linked Subsidy Programme
• Merging Prime Minister’s Rojgar Yojana (PMRY) & Rural Employment Generation Programme (REGP)
• Central Sector Scheme
• Administered by MoMSME
• Implemented by KVIC under MSME – National Nodal Agency
• State level
• State KVIC Directorates
• State Khadi and Village Industries Boards (KVIBs) and
• District Industries Centers (DICs) and
• Banks
• Govt. subsidy routed by KVIC through the identified Banks to the beneficiaries / entrepreneurs

PMEGP - Objectives

• To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures / projects / microenterprises.
• To bring together widely dispersed traditional artisans/ rural & urban unemployed youth & give them self-employment opportunities to the extent possible, at their place.
• To provide continuous and sustainable employment to a large segment of traditional & prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
• To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural & urban employment.

Eligibility Conditions of PMEGP Beneficiaries

• > 18 years
• No Income Ceiling for assistance for setting up projects
• VIII standard Pass essential for big projects
• > Rs.10 lakh manufacturing sector & > Rs. 5 lakh business /service sector
• Assistance only for NEW PROJECTS.
• Eligible
• Self Help Groups
• Institutions under Societies Registration Act, 1860
• Production Co-operative Societies
• Charitable Trusts
• Not eligible
• Existing Units and the units already availed Government Subsidy

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Coverage

• 5.45 lakh micro enterprises assisted
• Margin money subsidy of Rs.12074.04cr
• 45.22 lakh Employment (Inception to Mar. 2019)
• Rs. 2247.10 cr for 2019-20

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2. CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTERPRISES (GOI)

• Ministry of MSME & SIDBI established a Trust Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
• Formal Launch August 30, 2000
• Operational from 1.1.2000
• To make available COLLATERAL-FREE CREDIT to the micro and small enterprise sector.
•  limit ₹ 100 lakh
• Existing and the new enterprises
• Corpus contribution Ratio – Govt.: SIDBI = 4:1
• 75% of the loan amount to bank is guaranteed by the Trust Fund
• 4,35,520 proposals approved | guaranteed Rs. 30,168 cr (2018-19)

3. Interest Subsidy Eligibility Certificate (ISEC)

• To mobilise funds from banking institutions for filling the gap between the actual fund requirements & availability of funds from budgetary sources.
• Concessional rate of 4% for working capital.
• Difference above 4% is paid by the GOI through KVIC
• Institutions registered with the KVIC/State & KVIB can avail.

4. Market Development Assistance Scheme 30.8.2000 �for MSME / Exporters

• Participation in International Trade Fairs/ Exhibitions
• by manufacturing Small & Micro Enterprises under MSME India stall.
• Sector Specific Market Studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation.
• Initiating/ contesting anti-dumping cases by SSI Associations
• Reimbursement of Registration / Annual Fees paid for first three years
• 75% of one time registration fee (w.e.f. 1^st January 2002)
• 75% of annual fees (recurring) (w.e.f. 1^st June 2007)

Market Development Assistance Scheme 30.8.2000�OBJECTIVES

• To encourage Small & Micro exporters in their efforts at tapping and Developing overseas markets.
• To increase participation of representatives of small/ micro manufacturing Enterprises under MSME India stall at International Trade Fairs/ Exhibitions.
• To enhance export from the small / micro manufacturing enterprises
• To popularize adoption of Bar Coding on large scale.

5. SCHEME FOR ASSISTANCE TO TRAINING INSTITUTIONS

• Envisages financial assistance for establishing new institutions
• Strengthening the infrastructure of the existing EDIs
• for supporting entrepreneurship & skill development activities
• Objectives
• Development of indigenous entrepreneurship from all walks of life for developing new micro & small enterprises
• Enlarging entrepreneurial base & encouraging self-employment in rural /urban areas
• by providing training to first generation entrepreneurs
• Assisting them in setting up of enterprises
• Assistance as capital grant for creation / strengthening of infra.

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6. RAJIV GANDHI UDYAMI MITRA YOJANA - 2008�A Scheme of “Promotion and Handholding of Micro and Small Enterprises”

• Wide spread Variations in Success Rate - EDIs
• Entrepreneurs generally face difficulties
• Govt. schemes
• Completing & Complying
• Tech. selection & Tie-up
• Aspiration Potential Vs Ground Realties - Gap
• Need to Support & Nurture the potential 1^st generation entrepreneurs by giving them handholding support during initial stages of setting up & managing.

RGUMY Objective

• Objective
• to provide handholding support & assistance to the potential first generation entrepreneurs, who have already successfully completed EDP/SDP/ESDP or vocational training from ITIs, through the selected lead agencies.
• Financial Assistance to Lead Agencies – Utyami Mitras
• Establishment & management
• Procedural & legal hurdles
• Formalities

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Roles & Responsibilities of Udyami Mitras

• (i) Networking, Coordinating & follow up
• with various Government agencies departments/ / organizations and regulatory agencies on the one hand and
• with Support Agencies like Banks/financial institutions, District Industries Centers (DICs), Technology Providers, Infrastructure Providers on the other hand
• Areas of Help
• Identification of suitable project / product / enterprise & preparation of bankable project report
• Creation of the proprietorship firm/ partnership firm/ Company / Society / SHG etc.
• Filing of Memorandum (as per MSMED Act 2006).
• Accessing credit by networking with respective agencies
• Loans, capital subsidy/ assistance under Central /State Government and other agencies/ organizations / financial institutions / Banks etc.
• Assistance & support in establishment of workshed / office

RGUMY: Role and Responsibilities of Udyami Mitras

• Sanction of POWER LOAD / CONNECTION
• Selection of appropriate TECHNOLOGY AND INSTALLATION of plant and machinery/office equipment etc;
• obtaining various registrations/ licenses/ clearances / No Objection Certificates (NOCs) etc.
• Allotment of Income Tax REGISTRATIONS - PAN and Service Tax/ Sales Tax/ VAT, GST etc.
• Sanction of WORKING CAPITAL loan from the banks
• Arranging TIE UP with raw material suppliers
• Preparation & implementation of MARKETING STRATEGY for the product/ service & market
• Establishing Linkage With a MENTOR for providing guidance in future
• Creation of Web Page and Email IDENTITY
• (ii) Monitor and follow up on the functioning
• Minimum 6 months
• Provide help in overcoming managerial, financial and operational problems

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RGUMY: Empanelled Utyami Mitras

• Category-I Udyami Mitras
• 3 National-Level EDIs
• NIESBUD Noida, Ind. Inst. Entr. (IIE) Guwahati and NIMSME Hyd
• MSMEDIs / Branch MSMEDIs
• KVIC and NSIC
• Category-II Udyami Mitras
• Central/State Government PSEs involved in promotion & development of MSEs as well as state level EDIs
• Category-II Udyami Mitras
• Other Agencies applied to & Approved by DIC
• Udyami Mitras enrol the potential entrepreneurs
• Completed Trainees of EDP/SDP/ESDP (two weeks) or
• Completed ITI vocational training

7. CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION 2000-01

• October, 2000 then Revised on 29.09.2005
• To facilitate TECHNOLOGY UPGRADATION of Micro & Small Enterprises
• Providing 15% capital subsidy (12% earlier) on institutional finance availed by them for induction of well established & improved technology in approved sub-sectors/products.
• Purchase price of PLANT & MACHINERY.
• Maximum limit of eligible loan raised from Rs. 40 L to 100 L
• Scheme Continued in 10^th and 11^th FYPs
• 62827 units availed subsidy of Rs. 3888.21 cr. (2019)

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8. MICRO & SMALL ENTERPRISES-CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP)

• Holistic Development for selected MSEs Clusters
• through Value Chain & Supply Chain Management on cooperative basis
• Major components
• Technology Upgradation
• Quality Up gradation & Certification
• Credit Facilitation
• Marketing Support, including exposure to global markets
• Collective Capacity Building to enable operating as collectives of their own.

Objectives of MSE-CDP

• Key Strategy for enhancing productivity/ Competitiveness of small enterprises
• To facilitate economies of scale
• for integrated and focused development of MSEs
• Interventions for large number of units with higher gains at lower cost

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MSE-CDP

• Establishment & operation of Common Facility Centres (CFCs)
• Deliverables
• Organized procurement & marketing
• Continuous Skill & Technology upgradation
• Support for infrastructural upgradation for resurgence
• 17 CFCs & 11 Infrastructure Development Projects established (2018-19)

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9. ASPIRE - A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (18.3.2015)

• Objectives
• to set up a network of technology centres
• to set up incubation centres to accelerate entrepreneurship
• to promote start-ups for innovation & entrepreneurship in agro-industry.
• LBI & TBI Centres
• 74 Livelihood Business Incubation centres and 11 Technology Business Incubators have been approved.

10. SFURTI- Scheme of Fund for Regeneration of Traditional Industries

• Cluster-based scheme for development of Khadi, Village Industries and Coir Clusters
• by providing them with improved equipments, common facilities centres, business development services, training, capacity building and design and marketing support, etc.
• SFURTI Revamped in 2015.
• 34,791 artisans assisted with Rs. 143.15 cr. (2018-19)

11. NATIONAL AWARD SCHEME

• MSME had vast development five decades
• Tremendous growth
• quality production, exports, innovation, product development and import substitution
• beyond the expected objectives
• Entrepreneurial efforts produced number of items which were earlier imported
• Some products having additional attributes
• capable of solving a multitude of user problems.
• Exhibition of ambitions and visionary spirit of entrepreneurs of MSMEs
• Ministry of MSME initiated National Award – Annual

National Award Scheme

• Objective
• To select entrepreneurs and enterprises in recognition of efforts and contribution of MSMEs
• Outstanding entrepreneurships, R & D & Service
• Categories of Awards
• 1^st National Award 1 L
• 2^nd National Award 75K
• 3^rd National Award 50K
• Spl. National Award for women 1 L
• Spl. National Award to SC/ST Entrepreneur 1 L
• Spl. National Award to NER Entrepreneur 1 L
• Spl. Recognition Award to MSMEs scoring > 80% 20K
• 50% in case of NER

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12. SCHEME TO SUPPORT 5 SELECTED UNIVERSITIES / COLLEGES TO RUN 1200 ENTREPRENEURSHIP CLUBS.

• One of the components of the promotional Package for MSE declared in parliaments in 2007
• Objectives
• To encourage entrepreneurs to run self-employment ventures of MSE
• To bring together the entrepreneurs, universities and MSME-Development Institutes
• To create a base to entrepreneurs for coming together to solve common problems

Implementation

• Approach
• Shift from Lobbying Mode to Facilitation Mode
• Give hard intervention in the form of technology
• Give soft intervention like arranging workshops, seminars, guidelines
• To obtain ISO certification, ISI Marks, participation in Fairs, implementing Quality Management Tools.
• To support 5 universities (NEWS-NE) to run ENTREPRENEURSHIP CLUBS
• to run 240 clubs per year / University @ 50 entrepreneurs / club.
• Target : 3 lakh entrepreneurs in 5 years.
• Five years 2007 – 12
• 5277 Clubs 263850 Members 12.5 Cr.

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13. SCHEMES FOR WOMEN ENTREPRENEURS: �A. Mahila Udyami Yojana (MUY)

• IDBI has set up special corpus fund (Rs.5 Cr.)
• to provide seed capital assistance to women entrepreneurs
• To start projects in SSI sector
• Implemented by SIDBI
• 51% equity should be managed by women
• Seed capital is provided as soft loan @ 15% of fixed cost
• without insisting security
• at least 10% Promoter contribution of fixed cost.

Mahila Udyami Yojana (MUY)

• Repayment is for 10 years
• Moratorium period of 5 yrs.
• Debt : Equity ratio should be 3:1
• EDPs are exclusively designed & conducted for women entrepreneurs
• Rs.25000/- is provided
• without collateral security.

13. B. Priyadarshini Yojana

• Implemented by Bank of India
• Financial assistance to women entrepreneurs
• who take up small business, retail traders, transport (auto rickshaws), professional and self employed, and who take up allied agricultural activities.
• Max. loan is up to
• 2 lakhs for term loan and
• 1 lakh for working capital
• Assets acquired with finance are hypothecated as security
• Repayment period is 3-5 years.
• Margin Money : 20% depending on type of activity

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14. GOVERNMENT PROGRAMMES FOR AGRIBUSINESS

• B/o Finance required, Central / State programmes fall under
• Small-scale industries
• Khadi and Village Industries
• Small and Medium Industries
• Large industries, based on the for investment
• To harness the Export Market
• Special Economic Zones &
• AGRI-EXPORT Zones
• Ministry of SSI & Agro & Rural industries designs & implements policies

Food Parks

• Food parks
• to play a facilitating role in integrating the food chain
• provide common facilities
• like cold storage, quality control labs, pilot plants, UPS, adequate water, effluent treatment plants, etc.
• Create backward & Forward linkages
• With farmers & processors
• Processors & markets
• Facilitating link between processors & RD Institutions & Financial Intuitions

Facilities provided by Govt.

• Development of industrial estate areas
• Transportation, bank, insurance, electricity, training, etc.
• Quick approval
• Development of training facilities
• SIDO & DIC, etc.
• Establishment of Science & Technology Entrepreneurial park
• Consultancy assistance and consultancy fee subsidy schemes
• Organization of seminars
• discuss problems of enterprise and economic development
• Subsidy to tribal and rural areas
• to encourage industries and exports

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GOVERNMENT INCENTIVES AVAILABLE TO ENTREPRENEURS

• Investment subsidy
• Capital investment subsidy
• Transport subsidy
• Power generator subsidy
• Social subsidy to women entrepreneurs, etc.

• Other subsidies
• Export / Import subsidy
• Tax subsidy
• Excise subsidy/ duty exemption
• Capital subsidy for technology up gradation

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Thank You

Recap

• Institutional Support
• ED – Programme
• Pre-training – Training - Followup
• ED – Process
• Stimulatory – Support – Sustaining
• Programme – Policies – Training – Infrastructure – Finance – Upgrade – Balancing, Etc.

Recap 10.04.20

• Govt. Programmes for Development & Promotion of Enterprises
• Objectives / Eligibility/ Clientele / Coverage / Focus / etc
• Prime Minister’s Employment Generation Programme (PMEGP)
• Credit Guarantee Fund Scheme for Micro And Small Enterprises
• Interest Subsidy Eligibility Certificate (ISEC)
• Market Development Assistance Scheme for Micro/ Small manufacturing Enterprises/ Small & Micro Exporters
• Scheme for Assistance to Training Institutions
• Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
• Credit Link Capital Subsidy Scheme for Technology Up gradation
• Micro & Small Enterprises-Cluster Development Programme (MSE-CDP)
• ASPIRE - A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship
• SFURTI- Scheme of Fund for Regeneration of Traditional Industries
• National Award Scheme
• Scheme to Support 5 Selected Universities / Colleges to run 1200 Entrepreneurship Clubs.
• Schemes for Women Entrepreneurs:
• Mahila Udyami Yojana (MUY)
• Priyadarshini Yojana (PY)
• Govt. Programmes for Agribusiness
• Food Parks

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BarrierS to Entrepreneurship -

• Lack of a viable concept. �Lack of market knowledge�Lack of technical skills �Lack of seed capital �Lack of business know-how

• Complacency – lack of motivation �Social stigma �Time presences & distractions �Legal constraints & regulations �Monopoly & protectionism �Inhibitions due to patents

• Barriers to entrepreneurship
• INSTITUTIONAL SUPPORT
• Training institutions
• Infrastructure
• Finance
• SAUs
• Focus
• Degree
• Training
• KVKs

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• ATMA
• ICAR
• NI
• EDC
• NIESBUD
• NISIET
• RUDSETI
• SEZ
• AEZ
• APEDA
• KINFRA
• CBs, NABARD, IDBI
• IFCI, ICICI, SFCs

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• EDPs
• Objectives
• EDP Model
• 4-6 W
• Uni. Curri
• Phases
• Pre-training
• Training
• Post Training
• Problems of EDPs
• Evaluation Criteria

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• NEP 1991
• Features
• Transition

INSTITUTIONAL SUPPORT TO BUSINESS ENTREPRENEURS

• Specialized Training Institutions
• SAUs, ATMA - SAMETI, NIs, EDCs, NIESBUD, NISIET, RUDSETI
• Infrastructure support
• AEZ / SEZ / APEDA
• Institutional Finance
• CBs/ NABARD / IFCI / ICICI/ IDBIs / SFCs

Specialized Training Institutions for Agricultural Human Resource Management

• SAUs
• Focus Agribusiness Education
• Fosters the agri-preneurship development
• New Degree courses (UG / PG)
• Directorate of Agribusiness
• Courses: M.Sc. ABM, MBA, MBM
• Training programmes
• B.Sc. (Ag.) - RAWE- EDP module

Specialized Training Institutions for Agricultural Human Resource Management

• KVKs
• Vocational Training programme - Agripreneurship
• Youth / women
• Production of organic products / inputs
• Special packaged foods for Sugar patient & Heart patient
• Packaged flour for special occasion and season

Specialized Training Institutions for Agricultural Human Resource Management

• ATMA – Agricultural Technology Management Agency
• Group specific agribusiness entrepreneurships
• Group Farming & Group Marketing – CIGs / FIGs / CBAs
• NATIONAL INSTITUTES (ICAR & GOI)
• To promote agribusiness entrepreneurship among farm graduates especially in the First Line and Second Line Managers
• NIAM, MANAGE – AC & ABC
• NAARM conducting PG Diploma in Agribusiness

Specialized Training Institutions for Agricultural Human Resource Management

• Entrepreneurship Development Cell (EDC)
• SAUs and Traditional Universities promote student entrepreneurship
• EDC of Universities
• NIESBUD - National Institute of Entrepreneurship and Small Business Development– New Delhi
• Offers specialized training
• Forum between various agencies in ED activities

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Specialized Training Institutions for Agricultural Human Resource Management

• NISIET - National Institute of Small Industries Extension Training - Hyderabad
• Supports entrepreneurs of SSI in
• Training / R&D / Consultancy
• RUDSETI - Rural Development & Self-Employment Training Institute
• Syndicate Bank - Mangalore & Kannur
• Residential EDPs for Rural Unemployed Youths

Infrastructure support to business entrepreneur

• SEZ - Special Economic Zone
• 421 approved & 354 Formally notified 240 in operation - 5258 units
• Over 22.34 Lakh employment 5.97 L. Crore export (2018-19)
• AEZ - Agri- Export Zone
• To cater the needs of agri- exporters
• Provisioning cold chains, supply chain & logistics
• 60 Notified – 40 Commodities - 20 states
• Focussed products : Gherkin, Rose onion, Flowers, Vanilla

Infrastructure support : APEDA - KINFRA

• APEDA - Agril. & Processed Food Products Export Development Authority
• Maximize Foreign Exchange through agro- products
• Create Employment through value added products
• Eg: Grapes, Mango-Maharashtra, Karnataka
• KINFRA - Kerala Infra Structure Authority
• Development of Industries
• Balancing social, cultural, regional and ecological
• Industrial Parks / Township / Zones

Institutional Finance to Business entrepreneurs

• CBs - Commercial Banks
• NABARD - National Bank for Agricultural and Rural Development
• IDBIs - Industrial Development Bank of India
• IFCI - Industrial Finance corporation of India
• ICICI - Industrial Credit and Investment Corporation of India
• SFCs - State Financial Corporations

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Entrepreneurship Development Programmes (EDPs)

Objectives of EDPs

• Accelerating industrial development by enlarging the supply of entrepreneurs
• Developing entrepreneurial qualities and motivating the prospective entrepreneurs to achieve the goal
• Enhancing the growth of small-and medium-scale enterprise sectors which offer better potential for employment generation and dispersal of industrial unit
• Providing productive self-employment avenues to a large number of educated and low educated young men and women coming out of schools and colleges

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Objectives of EDPs

• Improving performance of small-and medium-scale industries by the supply of carefully-selected and trained entrepreneurs and diversifying sources of entrepreneurship
• Enterprise development in rural and no-industry areas where local entrepreneurship is not really available and entrepreneurs from nearby towns are not easily lured

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INDIAN EDP MODEL

• “entrepreneurs are the products of nature, nurture and culture”
• Role of nurture in HRD
• “entrepreneurs are born and not made”
• Well-designed and integrated modular packages
• meet the needs of budding E.
• 4-6 Week duration
• Uniform curriculum

INDIAN EDP MODEL

• SDAs, KVKs & other Agencies
• Different Clientele
• Three important Phases of EDP
• Pre-training phase
• Training phase
• Post-training or Follow-up phase

Pre-Training Phase

PREPARATORY PHASE - ACTIVITIES AND PREPAREDNESS

• Identification of operationally-promising area - district
• Selection of a project leader/course coordinator
• Arrangement of infrastructural facilities
• Undertaking potential industrial survey/environmental scanning
• identify Good Business Opportunities
• Planning the programmes
• Contacting the Support Agencies
• DICs, SFCs, SISI, Banks, NSIC, District Magistrate, etc. to receive support in implementation
• Organizing Industrial Motivational Campaigns to mobilize maximum APPLICANTS.

Planning the programmes

• Promotional and publicity campaigns
• Print or electronic media, leaflets, posters, etc.
• Establishing contacts
• Business Personalities, NGOs and related Agencies
• Contribute Directly and Indirectly
• Printing and making available of applications
• Forming Selection Committee
• Preparing the Budget, Sanctions
• Preparing and finalizing the Need-Based Inputs
• Tie up with Guest Faculties to impart training as resource persons
• Arrangement for the Event Programme (Inauguration, etc).
• Finalizing the Training Syllabus
• Selection of necessary Tools, Techniques

II. TRAINING PHASE

Training & Guiding potential entrepreneurs to set up an enterprise

• Tuning attitude
• Career Motivation
• Checking perceptible change
• Behavioural monitoring
• Knowledge building
• Technical / Resource management
• Skill up gradation
• Viability, Fund mobilization
• 4-6 weeks

Programme Design

III. Post-Training Phase

“phase of follow-up support”

• How far the trainee utilized - Post Evaluation / Feedback
• Rendering Post-training support services
• Implementing Action Plan – Confronts Problems
• Counseling / committee
• Committee Members
• District Lead bank
• State Financial Corporation
• Training organization and
• District Industries Centre

Post-training Phase

• Objectives of Post Training Support
• To provide a meaningful direction to the trainees in grounding their enterprise
• To review the progress made by the trainees in implementation of the project
• To review the post-training approach
• To provide escort services to the trainees by involving financial institutions and promotional agencies
• Follow-up action meetings : Thrice a year
• Follow up Methods
• Postal questionnaire
• Telephonic follow-up
• Personal contact by the trainer
• Group meetings

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Problems of EDPs

LOW LEVEL OF PERFORMANCE

• Shortage of organizations
• specialized & committed
• Insufficient trainer motivators
• to motivate & impart training
• Identification & Selection
• Wrong project
• Lack of entrepreneurial culture
• Apathetic attitude of the support agencies
• Banks & Financial institutions

Problems of EDPs

• Lack of linkages
• forward & backward
• Selection of Wrong Person
• for training
• Inadequate counseling support
• after training
• Lack of continuous follow-up action or post-training support services for grounding the project

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Criteria for assessment /evaluation of EDPs

• New enterprise creation
• Employment generation
• directly and indirectly
• Increase in sales and profit
• Enterprise expansion
• Enterprise transformation
• Improvement in quality of product or services
• Repayment of loans

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IMPACT OF ECONOMIC REFORMS  ON  AGRI-BUSINESS / AGRIENTERPRISES

• Macro-Economic Adjustment Programme
• July 1991
• Measures to restructure
• New economic policy – 1991
• Areas of change
• Trade policies
• Monetary and financial policies
• Fiscal and budgetary policies
• Pricing and institutional reforms

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Salient Features of NEP 1991

• Liberalization (internal and external)
• Extending Privatization
• Redirect scarce Public Sector Resources to Areas where the private sector is unlikely to enter.
• Globalization of economy &
• Market-friendly State.

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Transition

• Painless transition
• Large Credit for absorption of shocks >> Agri.
• Steady increase in Agril. production
• No specific package for agriculture
• Presumption : Freeing markets & liberalizing >> price incentives >> enhanced investment & output

Impact of Reforms on Agricultural Sector

• Agriculture – Mainstay
• Socioeconomic privileges, deprivation
• Structure >> Social equality
• Sustainability of Reforms d/o Agriculture Dev.
• Raising Living Standards
• Alleviating Poverty
• Assuring Food security
• Generating Buoyant market for expansion of industry and services
• Making Substantial contribution to the national economic growth

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Salient impacts on Agricultural and Rural Sectors

• Diversification of Farming – Primary Sector
• Far reaching effects
• agricultural EXPORTS & IMPORTS
• INVESTMENT in new TECHNOLOGIES and on rural INFRASTRUCTURE
• PATTERNS of agricultural growth
• Agriculture INCOME & EMPLOYMENT
• Agricultural PRICES and
• FOOD SECURITY
• IT Penetrating & Clinical mapping of Land
• Physical, Chemical, Biological, Groundwater, Forecast, Etc.
• IT Facilitation in Dissemination of Information
• Education, extension, husbandry, marketing, production & research

Salient impacts on Agricultural and Rural Sectors

• Reduction in Commercial Bank credit to agriculture
• Khusrao Committee and Narasingham Committee
• Fall in farm investment
• Affected public funds for Infrastructural development
• Fiscal compression
• Competition for Resource Use & Marketing Agricultural Production
• Small Farmers : Distress sale & off farm employment
• Marginalization of Small Farmers
• 14.7%-21.75%
• Greater Casualization of workforce
• Erratic – low paid work

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Salient impacts on Agricultural and Rural Sectors

• Patterns of government spending and financial measures - adverse impact on cultivation
• Cuts in subsidies – fertilizers
• Decline in overall per capita govt. Expenditure
• Reduction in Public expenditure for Agriculture, Research and Extension
• Substantial Declines in public infrastructure and energy
• Rural energy & Irrigation
• Reduced spread and rising prices in PDS

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Salient impacts on Agricultural and Rural Sectors

• Reduced rural credit
• Expensive & difficult for small farmers
• Lowering import tariff
• Freeing Export - Rice & Wheat
• Decline in Tax/GDP Ratio
• Increased State Debt Servicing
• Reduced Rural Capital expenditure
• Banking shift
• Crop lending to term lending
• Reduction in rural branches & Man power
• Dependency on exploitive Money lenders, dealers, traders

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Salient impacts on Agricultural GDP

• Declined Agricultural GDP growth
• 2.9 % (1981-90) 2.1% (2010-14) 5% in (17-18) 2.75% (18-19)
• Declined Share of Agriculture Output in GDP
• 41.83 (50-51) 25.2 (89-90) 11.8 (13-14)
• Increased Private Investment in Agriculture
• Rs 16634 Cr. (1991-92) to 72446 Cr. (2013-14)
• Declined Public expenditure on Agri. / Res / Extn.to GDP
• from 0.15 to 0.05

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ED Process

Entrepreneurial Development Process

• ED Attempts - Highly successful & disappointing
• Analyzing the past experiences
• ED is a Process
• ED Process consist of Three Phases
• Stimulatory Phase
• Support Phase
• Sustaining Phase

Stimulatory Phase Focuses on

• Importance of Stimulatory activities
• Help in emergence of entrepreneurs in the society
• Prepare background for growth of entrepreneurship
• Generates Initial motivation
• Helps people to
• Perceive incentives
• Perceive opportunities to acquire relevant information & skills

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Stimulatory Activities

• Generating entrepreneurial awareness
• Well planned publicity
• Identifying and selecting potential entrepreneurs
• Helping them through training to raise their motivational level
• Improving their skills in modern management methods
• Developing Technical competencies relevant to the product
• Helping them to Develop Project Report

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Stimulatory Activities

• Making available techno-economic Info. & Project profiles
• Entrepreneurs to Select New Product
• Developing a Data Bank on new products and process available.
• Evolving new products and process available to local situation
• Public Recognition of entrepreneurial excellence

Support Phase Focuses on

• Provide infrastructure facilities, resources, abilities & skills
• for enterprise launching & management
• Provide nurturance & help to stimulated entrepreneur to move ahead to reach goal
• help in establishing and running enterprise
• Remove hurdles cause sickness or discourage new entrepreneurs

Activities in Support Phase

• Registration of the unit
• Arranging finance of any type : fixed capital / working capital
• Helping in purchase of plant and machineries
• Providing land, shed, power, water, etc. for establishing the unit.
• Guidance for selecting and obtaining plant and machinery and layout
• Issue of license for scarce raw material
• Providing common facilities
• Granting tax relief and subsidies
• Offering management consultancies
• Assisting in marketing of the product
• reservation or assigning government quota purchase, etc.
• Providing industrial information

Sustaining Phase Focus on

• New set of problems prop up
• Lack of raw materials, substitutes, skilled hands
• non profitable, non-viable due to unforeseen reasons / factors
• Efforts that facilitate Growth & Continuity
• On-going enterprises
• expansion, modernization, diversification & technology upgradation
• Sick Units
• Rehabilitation

Sustaining Activities

• Helping in modernization / diversification / expansion / product substitution
• Additional financing for full capacity utilization
• Deferring payment / interest depending on the situation
• Help & Guide in diagnosing cause of failure / low prodn. / profit
• Modification or change in legislation / policy affecting marketing
• Quality testing & improvement at low cost
• Creating common facilities in production & marketing
• which are not feasible for single unit

Three Phases of ED Process - Balance

• highly interactive, supplementary and crucial to each other
• needs balanced attention
• Support Phase more focused than others
• Stimulatory Phase lacuna results
• Non-availability of entrepreneurs
• Opportunity to outsiders avail developed facilities
• Result in sickness of enterprises

Three Phases of ED Process - Balance

• Overemphasized stimulatory phase
• bulk of entrepreneurs
• limited supply and support
• De-motivation & negative multiplier effect – Present & Future Entrepreneurs
• Overemphasized Sustaining Phase
• insufficient to new units to get benefitted & sustain further
• Credibility of all the agencies involved

Sequences of Entrepreneurship Development

• Entrepreneurial Quality / Motivation
• Capabilities for enterprise launching / resourcing
• Enterprise Management Ability
• Sense of Responsibility to the society that promotes / Supports them

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Process of Entrepreneurship Development

• Clear View of the Objective of the Program
• Selecting the Potential Targets
• Identifying Local Talents and Markets
• Choosing the Right Location
• Tying up with Institutions
• Develop the Entrepreneurship Program as Needed
• Analyze the Result for Future Development
• Discovery
• Developing a Business Plan
• Resourcing
• Managing the company
• Harvesting

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Entrepreneurial process stages

1. Idea generation
2. Decision making & business planning
3. Project creation
4. Management & Control

• New Economic Policy
• Transition
• Impacts
• ED Process & Stages
• Stimulatory
• Support
• Sustain

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24.4.20

• Skills & subsets
• Technical
• Business management
• Entrepreneurial skill
• Personal skill
• Behavioural / motivational
• Social / interpersonal

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• Organisational Skills
1. Controlling
2. Supervising
3. Problem solving
4. Monitoring
5. Evaluation

• Managerial Skills
1. Financial management
2. Marketing, Sales and customer service
3. Communication and negotiation
4. Project management and planning
5. Delegation and time management
6. Networking

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• Leadership skills
• Communication
• Directing
• Motivation

29.04.20

WELCOME

Skills

“Ability to do something”

• Performing key operations of the business
• Organising and managing operations Effectively
• Develop / innovate products and services
• Generate solutions to emerging needs
• Attain self awareness, emotional maturity, ability and willingness to accept responsibility
• Have desire to achieve further
• Interact / Liaise with others

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Technical Skills

Business Mgt. Skills

Entrepreneurial skills

Personal Skills

Behavioural / motivational Skills

Social / Interpersonal Skills

Technical Skill Subsets

• Managing operations
• Supplies
• Supply chains
• Production space skills
• Managing plant & Equipment
• Technology & Production Processes
• Management Styles
• Written and Oral Communication
• Knowledge of manufacturing technology

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Business Management Skills

• Planning
• Organizing
• Supervision
• Marketing
• Financial management
• Legal
• Administrative

• High order skill – learning & problem solving
• Marketing
• Human resource management
• Marketing
• Networking
• Operational
• Business planning
• Negotiation

Entrepreneurial Skill

• Ability to develop business concepts
• Develop business plan
• Environment scanning
• Opportunity recognition
• Advisory board & networking
• Innovation
• New resource skills

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• Calculated risk
• Risk propensity
• Change orientation
• Visionary leadership
• Inner control
• Creativity
• Persistence

Personal Skill

• Self awareness
• Accountability
• emotional coping
• Creativity
• Change orientation

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• Motivation
• Negotiating
• Learning
• Communication
• Self-efficacy

Behavioural and Motivational Skills

• Self discipline
• Intuition & Vision
• Creativity
• Perseverance
• Rigorousness
• Meticulousness

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• Commitment
• Stamina
• Energy
• Effort
• Motivation
• Achievement motivation
• Passion

Social and Interpersonal Skills

• Persuasiveness
• Social
• Self confidence
• Trust
• Overconfidence
• Leadership
• Networking

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• Self efficacy
• Impression management
• Social adaptability
• Social perception
• Self promotion
• Expressiveness
• Perception
• social influence

Skills

MANAGERIAL SKILL

1. Financial management
2. Marketing, Sales and customer service
3. Communication and negotiation
4. Project management and planning
5. Delegation and time management
6. Networking

ORGANISATIONAL SKILLS

1. Controlling
2. Supervising
3. Problem solving
4. Monitoring
5. Evaluation