MASTERS OF BUSINESS ADMINISTRATION 2010-2012

Semester II Section A Submitted To: Prof. Vinod Sharma Vijayvargiya Submitted By: Akash Akshay Waze Ankita Agarwal Khushboo Jaggi Manali Kala Mitang Panchal

Medicaps Institute of Technology and Management Indore (M.P.) CONTENTS

1. Introduction.
2.

Role of entrepreneurship in economic development.

3. Effect of entrepreneurship on Indian Economy. 4. Top 25 companies that made the cut. 5. References.

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Introduction
Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". An entrepreneur can be regarded as a person who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. He is the catalyst for social change and works for the common good. They look for opportunities, identify them and seize them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals.

Role of Entrepreneurship in the Economic Development

Entrepreneurship helps in the process of economic development in the following ways:

1)

Employment Generation:

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Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment. 2) National Income: National Income consists of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurs are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income. 3) Balanced Regional Development: The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development. When the new entrepreneurs grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions. 4) Dispersal of economic power: Industrial development normally may lead to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly. 5) Better standards of living: Entrepreneurs play a vital role in achieving a higher rate of economic growth. Entrepreneurs are able to produce goods at lower cost and supply quality goods at lower price to the community
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according to their requirements. When the price of the commodities decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people. 6) Creating innovation: An entrepreneur is a person who always looks for changes. Apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always try to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation. Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short, the development of the entrepreneurship is inevitable in the economic development of the country.

Effect of Entrepreneurship on the Indian Economy

The progress of Indian economic development from 1947 to the present provides further evidence that individuals do respond to incentives in their pursuit of self-survival and accumulation of wealth. Further, the nature of this response depends on the economic climate, particularly the role of the government. Indias economy struggled as long as it was based in a system of government regulation with little interaction with economic forces outside the country. The economic reforms of the early 1990s set the stage for substantial improvements in the Indian Economy. As was stated earlier, Indias economy grew at an average of 6.3 percent from 19921993 to 2000-2001 (Acharya, 2001). Further, its rate of inflation and fiscal deficit both decreased substantially (Bhalla, 2000). Improved exchange rate management led to improved financing of the current account deficit and higher foreign exchange reserves. Finally, Indias GDP and per capita income both increased substantially from 1990-1991 to 1998-1999. India can do more, however, to further advance its economic development. Indeed, one of the more recent microeconomic approaches to economic growth is the promotion of entrepreneurial activities. Entrepreneurial efforts have been found to generate a wide range of economic benefits,

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including new businesses, new jobs, innovative products and services, and increased wealth for future community investment (Kayne, 1999).

The GEM Conceptual Model suggests that the social-cultural-political context within a country must foster certain General National Framework Conditions, which can generate not only the opportunities for entrepreneurship but also the capacity for entrepreneurship in particular, the skills and motivation necessary to succeed. Together, the entrepreneurship opportunities, on the one hand, and the skills and motivation, on the other, lead to business dynamics that yield creative destruction, a process in which new firms are created and older, less efficient firms are destroyed. The overall result for a country is economic growth.

The 25 companies that made the cut

The top 25 companies that made the cut, have created over 2,312 jobs in two years, starting in 2007, and are expected to grow strongly in 2010. The India Fast Growth 25 companies are: 1. redBus 2. Bang Bang Films 3. Suminter India Organics 4. Eka Software Solutions 5. Vaatsalya 6. Appnomic Systems
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7. Micromax Informatics 8. Anlage Infotech 9. The Loot 10. Travelspice.com 11. InfoSoft Global 12. Jagtap Nursery 13. Knowcross Solutions 14. Indus Net Technologies 15. A1 Future Technologies 16. Transasia Bio-Medicals 17. Applabs 18. Future Focus Infotech 19. Cross-Tab Marketing Services Companies to watch out for: 20. Apalya Technologies 21. Desicrew Solutions Pvt. Ltd. 22. Druva Software 23. iCreate Software 24. LatentView Analytics 25. Vedam Design and Technical Consultancy

The India 25 companies, led by dynamic men and women, represent the leading edge of a new approach to Indias competitiveness. Michael Porter, Professor, Harvard Business School and management guru.

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References
Wikipidea. India study channel. Asia-Pacific Development Journal.

/entrepreneurindia.in

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