Entrepreneurship : A driver for Economic Development

TEAM: Naresh.N , Naveen Kumar , Rakesh , Nikhil Sancheti

 Entrepreneur is one who begins resources , labor, material and other assets in to combinations that make their value greater than before and also one who introduces changes , innovations and a new order.

Entrepreneurship: It is the attempt to create value through recognition of business opportunity , the management of risk taking appropriate to the opportunity ,and through the communicative and management skills to mobilize human , financial and material resources necessary to bring a project

Economic development

Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area.

Economic development

Entrepreneurship in nexus with Economic Development

Porter Model
Factor driven Stage Specific Stages Efficiency Driven Stage

Innovation Driven Stage

Global Entrepreneurship Monitor

Necessity Entrepreneurship

Opportunity Entrepreneurship

While it is easy to see that starting a new business to exploit a perceived business opportunity would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development

. .

The Global Entrepreneurship Monitor (GEM) is a global study conducted by a consortium of universities

Entrepreneurship Framework

Financial Support

Seed capital

Government Policies and Programmes

Research & Development

Education & Training

Market Openeness

Accessible to all economic factors

Education & Training

Organizations supporting entrepreneurship in economic development

Khadi & village industries commission COIR Board National skills development corporation FICCI CII ASSOCHAM

(KVIC) is a statutory body formed by the Government of India under the Act of Parliament, 'Khadi and Village Industries Commission Act of 1956'. It is an apex organization under the Ministry of Micro, Small and Medium Enterprises with regard to khadi and village industries within India, which seeks to - "plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.

Role of FICCI , CII , ASSOCHAM supporting entrepreneurship in economic development

Vibrant Gujurat Summit
Functions towards economic development CII claims to usher change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry identify and execute corporate entrepreneurship programmes.

The organisation represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives. The goal of this organization is to promote both domestic and international trade , and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India.

Established in 1988, NASSCOMs membership has grown over the years and currently stands at 1,400. These companies represent 95 percent of industry revenues and have enabled the association to spearhead initiatives and programs to build the sector in the country and globally. Nasscom launches 10,000 startups program Will Incubate, fund and support

10,000 technology startups over the next 10 years.

NASSCOM intends to incubate, fund and support 10,000 technology startups in India over a period of the next 10 years. The association hopes this will increase the employment rate at startups by 5 folds and bring India among the Top 10 Entrepreneurial & Innovation countries.

Entrepreneurship in developing countries

With reference to China , India , Brazil 1) Opportunity

Allowing firms to pursue a portfolio approach to strategy that can efficiently manage the higher levels of business and market risk. allowing firms to pursue a portfolio approach to strategy that can efficiently manage the higher levels of business and market risk. Consequently, the opportunity for entrepreneurship in emerging markets is pervasive. While Western entrepreneurs operate at the fringes of the economy, emerging market entrepreneurs operate closer to the core the needs and opportunities are more widespread .

2)

Financial Resources
Risk capital finance is particularly important for growth-oriented entrepreneurs in the developing world, because it aligns the incentives of entrepreneurs and outside investors. Each is properly motivated to maximize economic value of the enterprise.

Entrepreneurship in developed countries

USA , UK , Netherlands( source: GEDI) Level of entrepreneurship has been evaluated by some quantitative measure, for instance the selfemployment rate, business ownership rate, or business startups. Global Entrepreneurship Monitors Total Early-stage Entrepreneurial Activity (TEA) ratio has become a widel.y used measure of entrepreneurship The determinants of entrepreneurship (regulation, R&D, entrepreneurial capabilities, culture, access to finance and market conditions); entrepreneurial performance (firms, employment, and wealth); and the impact of entrepreneurship in the economic development.

The factor-driven stage is marked by high rates of agricultural self-employment. Countries in this stage compete through low-cost efficiencies in the production of commodities or low value-added products. Sole proprietorshipsi.e., the self-employedprobably account for most small manufacturing firms and service firms.

Efficiency-driven stage, countries must have efficient productive practices in large markets, which allow companies to exploit economies of scale. The innovation-driven stage is biased towards high value added industries in which entrepreneurial activity is important.