AN INTRODUCTION ABOUT ENTREPRENEURSHIP

Entrepreneurs are people who do things, which are not generally done in the ordinary course of a business. It is not surprising that every fortune 500 Enterprise in existence is the result of an entrepreneur's enterprise and perseverance. Entrepreneurs, according to Karl Vasper, are pillars of industrial strength the movers and shakers who constructively disrupt the status quo.

Entrepreneurship is a social phenomenon and it is not inherent within a person, rather it exists in the interaction between people. To be a successful Entrepreneur it requires practicing as a manager by acquiring various skills and efforts in learning to understand a business. Entrepreneurship is the future of the modern society. It reflects a ray of hope for the unemployed to earn a living and maintain a dignified life and also for the economic development of the country.

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

ENTREPRENEURSHIP PERSPECTIVE

IN

INDIA

HISTORIC

In 1954, the government did set up the Small Scale Industry Organization to plan the growth of small businesses as supplements to the efforts of large industries. Industrialization has since spread, but as a result of economic planning, the state has remained a major player. Small firms have been perceived as weak, prompting a government program of "reservations" to protect existing small enterprise. Opponents of the reservation system complain that although the system gives politicians and bureaucrats a patronage network, it does little more than keep alive unviable units which have no incentives to improve quality, grow, or become world class. Similarly, when the Orissa government set up a program entitling every university graduate to receive a subsidy to set up a business, the results were massive bribery and almost no new ventures.

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

THE ENTREPRENUAL PROCESS

An Entrepreneur is the key figure in the process of economic growth. He is an economic person who tries to maximize his profits by innovation and thus aggressively contributing towards economic development. He is an organizer and speculator who is doing new things or doing things that are already being done in a new way. Entrepreneur is the individual who lies at the heart of Entrepreneurial process that is the Manager who drives the whole process forward

ENTREPRENEUR

OPPORTUNITY

RESOURCES

ORGANIZATION

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

OPPORTUNITY
It's the potential to serve customers better than they are being served at present. An entrepreneur is held responsible for scanning the business landscape for unexploited opportunities. The improved way of doing is the innovation that the entrepreneur presents to the market.

RESOURCES
Resources include the money invested in the venture, the people include their efforts, Knowledge and skills to it etc.It also includes the intangible assets such as brand name, reputation of the company and the goodwill of the company.

ORGANISATION
Every organization consists of number of factors such as their size, their rate of growth, the industry they operate in and the type of products the organisation delivers.

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

THREATS THAT INDIAN ENTREPRENEURS SORT OUT

There are two threats or rather called a mistake not committed by

Indian entrepreneur are;

They dont close all the doors behind them. They keep on

looking for alternative options.

They perfectly deal with the only way to survive. They dig

their heels and give their business time enough time to stand.

These two aspects make most of the Indians to lead as an entrepreneur which plays a vital role in Indian economy.

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WOMEN OWNED BUSINESS HELPS KEEP THE ECONOMY GROWING

According to the non profit, Washington D.C. based centre for women's business Research, women's entrepreneurship is growing dramatically and has been one of the defining trends of the past decade." The significance of women owned business is documented in four reports issued by the CWBR:

* Seizing the opportunities by wells Fargo provides a detailed overview of women owned entrepreneurship.

* Location, Location, Location by Wells Fargo identifies the regions and states in which women owned business are flourishing. * Access to Market by fleet Boston explores the opportunities and obstacles women encounter in entering corporate markets.

* Methods that work by PepsiCo foundation identify the strategies women can use to launch and successfully launch business.

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NEED 1. MONEY

FOR

WOMEN

ENTREPRENEURS

The desire and need to generate income in households where incomes have been reduced or where wage Earners have been laid off.

2. DEMOGRAPHICS
Divorce and family dislocation have been incentives for start up's fewer than 1/3rd of all women entrepreneurs who are married and living with their spouses.

3. TECHNOLOGY
Technology makes it possible for women to work productively from home and to stay actively involved in the lives of their children. 27% of women with home based businesses have children under the age of 18, 25% have children as young as 6 years old and 30% have children less than 6 years old. To a much greater extent than men (56 to 48%), women starts businesses to supplement income and to manage family responsibilities.

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

Women-owned businesses are no passing fad. They are crucial to a healthy economy. They typically require little or no investment, they can be headquartered in the home, and they give women flexibility in balancing their work and family lives. Technology allows the cultivation of clients nationwide and even worldwide and there are lots of resources to help women get started. The greatest advantage of owning a business, According to Ashley:" Working for yourself makes all the difference because you can do thing's the way you know are right so that your work speaks your values, beliefs, and ethics at the same time you are providing a necessary service.

4. ECONOMIC LEADERSHIP
Women economic empowerment is the policy level priority to bring the previously neglected half of Indian population in to the mainstream of economy. The Financial Express was face to face with a few women who are empowered and work for the development of other women entrepreneurs. The evident fact is that women are half of the total; their contribution to the economy is unrecognized in most cases. They are

ROLE OF ENTREPRENEURS IN INDIAN ECONOMY

underrepresented in many economic sectors. These discouraging figures turn momentarily pale when it is seen that, among women a good number are successful and have scaled to the peak where many men find it hard to reach. They are mentors for hundreds of thousands of women particularly in business having the qualities like hard work, devotion, sincerity, professionalism and significant managerial capacity

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DEVELOPING

WOMEN

ENTREPRENEURS

Right efforts on from all areas are required in the development in the development of women entrepreneurs and the participation in the entrepreneurial activities. Following efforts can be taken in to account for effective development of women Entrepreneurs and in turn resulting in the economic development of the country.

* Consider women as specific target group for all the developmental activities. * Better educational facilities and schemes should be extended to women folk from government.

* Adequate training programme on management skills to be provided to women * Encourage women participation in the community. decision making.

* Vocational training to be extended to women community that enables them to understand the production process and production

Management. * Skill development to be done in women polytechnics and ITI's. * Training on professional competence and leadership skills to be

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10

extended

to

women

Entrepreneurs.

* Training and counseling on a large scale of existing women Entrepreneurs to remove psychological causes like lack of self confidence and fear of success.

* Continuous monitoring and improvement of training programmes. * Industrial Estates could also provide marketing outlets for the display and sale of products made by women Entrepreneur.

* Repeated gender sensitization programmes should be held to train financiers to treat women dignity and respect as persons in their own Right. * Training in entrepreneurial attitudes should start at the high school level through well design courses, which build confidence through behavioural games.

* More governmental schemes to motivate women entrepreneurs to engage in small scale and small scale business ventures.

* District Industries Centres and single window agencies should make use of assisting women trade and business guidance.

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INDIAS STRATEGY OF ECONOMIC DEVELOPMENT Indias economic development strategy immediately after Independence was based primarily on the Mahalanobis model, which gave preference to the investment goods industries sector, with secondary importance accorded to the services and household goods sector. Any increase in planned investments in India required a higher level of savings than existed in the country. Because of the low average incomes in India, the needed higher levels of savings had to be generated mainly by restrictions on the growth of consumption expenditures. Therefore, the Indian government implemented a progressive tax system not only to generate the higher levels of savings but also to restrict increases in income and wealth inequalities. Among other things, this strategy involved canalization of resources into their most productive uses. Investments were carried out both by the government and the private sector, with the government investing in strategic sectors (such as national defense) and also those sectors in which private capital would not be forthcoming because of lags or the size of investment required (such as infrastructure). The private sector was required to contribute to Indias economic growth in ways envisaged by the government planners. Not only did the government determine where businesses could invest in terms of location, but it also identified what businesses could produce, what they could sell, and what prices they could

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charge. Thus the strategy of economic development in India meant (1) direct participation of the government in economic activities such as production and selling and (2) regulation of private sector economic activities through a complex system of controls. Over time, India created a large number of government institutions to meet the objective of growth with equity. The size of the government grew substantially as it played an increasingly larger role in the economy in such areas as investment, production, retailing, and regulation of the private sector. For example, in the late 1950s and 1960s, the government established public sector enterprises in such areas as production and distribution of electricity, petroleum products, steel, coal, and engineering goods. In the late 1960s, it nationalized the banking and insurance sectors. To alleviate the shortages of food and other agricultural outputs, it provided modern agricultural inputs (for example farm machinery, irrigation, high yielding varieties of seeds, chemical fertilizers) to farmers at highly subsidized prices (World Economic Indicators, 2001). In 1970, to increase foreign exchange earnings, it designated exports as a priority sector for active government help and established, among other things, a duty drawback system, programmes of assistance for market development, and 100 per cent export-oriented entities to help producers export

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(Government of India, 1984). Finally, from the late 1970s through the mid-1980s, India liberalized imports such that those not subject to licensing as a proportion to total imports grew from five per cent in 1980-1981 to about 30 per cent in 1987-1988 (Pursell, 1992). However, this partial removal of quantitative restrictions was accompanied by a steep rise in tariff rates. This active and dominant participation by the government in economic activities resulted in the creation of a protected, highlyregulated, public sector-dominated economic environment.

AGRICULTURE SECTOR OF INDIAN ECONOMY

Agriculture in India is the major sector of its economy. Almost twothirds of the total work-force earns their livelihood though farming and other allied sectors like forestry, logging and fishing which account 18% of the GDP. These sectors provide employment to 60% of the countrys total population. About 43% of the countrys total geographical area is used for agricultural purposes. After independence additional areas were brought under cultivation and new methods, practices and techniques of irrigation and farming were introduced by the government. The Green

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Revolution and Operation Flood in the country have made India self sufficient in producing food grains and milk. Among other things, the government also tried to decrease the dependence on monsoons. Better seeds, use of fertilizer, education of farmers and provision of agricultural credit and subsidies are reasons for increase in agricultural productivity.

Today, India is the major producer of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper in the whole world. It is the second largest producer of wheat, sugar, groundnut and inland fish. It is the third largest producer of tobacco and rice. India accounts for 10 per cent of the world fruit production with first rank in the production of banana and sapota (Sapodilla).

Agriculture in India is the responsibility of the states rather than the central government. The central government formulates policy and provides financial assistance to the states. States like Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka and West Bengal are major producers of food grains in India. Himachal Pradesh and Jammu and Kashmir are famous for fruit production. Tea is

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produced in the high altitudes of Assam, Darjeeling in West Bengal, Tripura, Ooty in Tamil Nadu, Himachal Pradesh and Kerala. Kerala is also the largest producer of natural rubber and spices in India. Rajasthan is among the major producers of edible oils in India and second largest producer of oil seeds. Production of non-conventional items like moong (a type of lentil), soyabeans and peanuts are gradually gaining importance. Even though there has been a steady decline in its share in the GDP, agriculture still remains the largest economic sector and plays a crucial role in the socio-ecomic development of the country.

INDUSTRIAL

SECTOR

OF

INDIAN

ECONOMY

Indias industrial sector accounts for 27.6% of the GDP and gives employment to 17% of the total workforce. Though agriculture is the foremost occupation of the majority of the people, the government had always laid stress on the industrial development of the country. Thus policies and strategies were framed to give a boost to Indias industry. The government aims at achieving self-sufficiency in production and protection from foreign competition. Since independence, India is marching ahead to become a diverse industrial base. Today India holds

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16

some key industries in the sectors like steel, engineering and machine tools, electronics, petrochemicals, textiles and software. Importance has also been give to improve the infrastructure of the country. The government has liberalized its industrial policy thereby attracting huge foreign direct investment. If on one hand several multinational companies opened their offices in India, on the other hand many Indian companies started their operations in foreign countries.

SERVICE

SECTOR

OF

INDIAN

ECONOMY

India is the fifteenth largest country in the world in terms of services' output. This sector provides employment to 23% of the workforce and is the fastest growing sector, with a growth rate of 7.5% in 19912000 up from 4.5% in 195180. It has the largest share in the GDP, accounting for 53.8% in 2005 up from 15% in 1950. Business services like information technology, information technology enabled services, business process outsourcing contribute to one third of the total output of services in 2000.

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17

The growth in the IT sector is due to the availability of a large pool of low cost and highly skilled, educated and fluent English-speaking people. Foreign clients have also expressed their interest in outsourcing much of their operations to India Excellent infrastructure in the service sector and the lowest communication cost has helped India to be a dominant player in these sectors.

INDIAN ENTREPRENEURSHIP COMPARED TO CHINA

The spirit of entrepreneurship is much more alive and kicking in China, than it is in India. People in china understand that a job is only a temporary phase to get some food and shelter. Many run small businesses on the side. Some alternate between business and jobs (failure in a business lands them in a job, where they again lick their wounds and start thinking about how to start a new business). But this is not the case with India. Many Indians dream of the following sequence (good college degree in engineering, an MBA, then a job with an MNC, foreign postings, some nest egg, switch some more jobs and so on). Hardly one comes across anybody who would like to start a venture AFTER having the degree/MBA & the first job. The venture may be started by people

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who failed to get into an MBA course or an Engineering college. Regarding infrastructure, the Chinese infrastructure is far better than in Indias commercial capital. Even in a C grade city in China, the roads, airport, train, buses and taxis will be much better than in Mumbai any day. However what the Chinese are lacking is the soft infrastructure like Banking laws, IP rights, attorneys and attorney firms, doctors houses, etc,. They are now concentrating on building this up in cities like Shanghai. Hong Kong already has this soft infrastructure in place.

Now what is admirable about Indian entrepreneurs is that they still continue to build good companies and products in spite of the pitiful physical Infrastructure.

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IT AND BPO INDUSTRY IN INDIA

In China the government has actively worked to seemingly remove obstacles to these opportunities. There seems to be no real cost of money in China at the moment. In terms of pure money play Chinese entrepreneurs have a tremendous advantage at this time. The IT and BPO industry in India enjoy the same kind of patronage as manufacturers do in China. If infrastructure and industry are lacking in India it is because the government did precious little to encourage it. This is changing but still the cost of money and high taxation give China the advantage right now. Indians have the better abilities to identify opportunities. The Chinese however have a better chance of succeeding at creating money

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out of it. In terms of creating successful organizations the advantages would swing back to India.

INDIAN ENTREPRENEURS IN OTHER FIELDS

Indian entrepreneurship is second to none and activity levels are at an all time high. According to the Global Entrepreneurship Monitor 2006, one in every ten Indians is engaged in some entrepreneurial activity or the other. Of this, opportunity based entrepreneurship (70 percent) is significantly higher than necessity based.

A lot of entrepreneurship activity is centred on the IT and BPO industry; but, there are a few outstanding examples in other fields. These companies have successfully exploited a product, service, or business model to create a step change in the market structure. This new breed of entrepreneurs made their own rules and revolutionized the way business was done. They used a winning combination of customer
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insight, industry knowledge, and out of the box thinking to create winning innovations. While Ambanis Reliance Communications made mobile telephony affordable to the common man, Captain Gopinaths Air Deccan made air travel as commonplace as travel by train and Biyanis Big Bazaar changed the face of retail in India. Tata Motors with their $2,000 car promise to do the same to the auto sector. Steve Ballmer once said,I worry more about disruptive business models than competitors.

Entrepreneurs are driving the growth of the Indian economy. For the first time in 200 years, India is getting back its position as an economic power. With GDP growing at 8+ percent, experts are expecting the Indian economy to overtake developed countries in the decades to come.

The Indian entrepreneur is thinking big and aiming high. The recent spate of global acquisitions by Indian industry leaders has forced the business community the world over to sit up and take notice of Indian economic power. The Tata-Corus deal set the tone for the year and was

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followed by Birlas acquisition of Novelis. With the Indian rupee up against the dollar and the global economy as playing field, we can expect to see more such deals in the future.

EDUCATION SYSTEM AND ENTREPRENEURSHIP

There is enough reason to be optimistic about Indias

entrepreneurial energy. However, we need to create an ecosystem that will foster and support early stage entrepreneurs. This will enable a scalable and sustainable model for creating a new breed of entrepreneurs in the years to come.

Access to seed capital is one of the key areas of potential investment. Venture Funds have entered the Indian market, but these funds are more focused on growth capital rather than seed capital. While associations such as TiE are seeking to bridge the gap, there is an urgent need to build a network of angels willing to support a young business.
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Our educational system rewards remembering as opposed to learning with limited scope for creativity. Engineering schools focus on imparting fantastic technical skills while business schools focus on pure management techniques. This ensures a strong ability to replicate ideas and reverse engineering and reinforces our dependence on a cost based competitive advantage. Schools in the West have a greater focus on leadership and entrepreneurship. Our educational system needs a revamp to be able to create more leaders and entrepreneurs. The focus of entrepreneurship needs to move to innovation, including process innovation, product innovation, management innovation, and business model innovation to win in the global market.

The rapid pace of globalization and growth of the Indian economy offer tremendous opportunities for entrepreneurs. We have heard stories of people who succeeded in spite of the system. It is now time to build an ecosystem which will enable Indians to succeed because of the system.

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GROSS DOMESTIC PRODUCT

India Gross Domestic Product (GDP) expanded 6.10% over the last 4 quarters. The India Gross Domestic Product is worth 1217 billion dollars or 1.96% of the world economy, according to the World Bank. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labour force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points.

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GRAPH SHOWING THE GROOS DOMESTIC PRODUCT RATE OF INDIA FOR PAST 9 YEARS

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TABLE DEPICTING THE GDP OF INDIA FOR PASS NINE YEARS

YEAR MARCH JUNE SEPT DEC 2007 2006 2005 2004 2003 2002 2001 2000 1999 9.70 10.40 9.00 8.30 3.60 6.40 1.80 6.30 -9.20 9.80 9.10 8.10 5.40 5.00 4.60 5.10 -9.00 --

AVERAGE 9.30 10.03 9.18 7.25

10.60 9.30 9.10 7.10 9.00 5.40 5.30 6.70 -9.50 5.50

11.30 7.33 1.50 6.80 4.40 6.20 4.58 4.63 5.63 6.20

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EFFORTS TO FOSTER ENTREPRENEURSHIP IN INDIA

Many of India's leaders have perceived the need to shift some of these barriers to the development of entrepreneurship in their country, and a number of programs have emerged to meet this need.Various agencies participate in entrepreneurial development across India.To coordinate and oversee their activities, the Ministry of Industry established the National Institute for Entrepreneurship and Small Business Development (NIESBUD). The institute organizes

entrepreneurship development programs, prepares manuals, and produces educational videos; its training activities are restricted to stimulating, supporting, and sustaining entrepreneurship.A sample program is entitled "Training Trainers for Barefoot Managers."

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Among

the

non-governmental

organizations

promoting

entrepreneurship in India is the Progress Harmony Development (PHD) Chamber of Commerce and Industry. The concept was conceived by the Englishman James Currie, and the Chamber was established in 1905 to promote the interests of the Delhi mercantile community. The organization has since grown to include over 1,600 direct members and 80 associates serving over 22,000 small enterprises. Since 1988, the Konrad Adenauer Foundation of Germany has cooperated with the PHD Chamber of Commerce and Industry, with the common belief that only the development of enterprising spirit and initiative among individuals can help a society achieve self-reliance and optimal development. The logic is that a small firm is not only important because it expresses the entrepreneurship of an individual, but, more importantly, because small business can contribute to other economic and social objectives of development, namely: employment; the balancing! of inequalities; distributive justice; and deepening the feeling of dignity among individuals. Functions of the PHD Chamber of Commerce and Industry include:

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 Providing support to the economic and social growth process by developing entrepreneurial skills and attributes; Promoting not only new ventures, but also improving the productivity of existing self- employment; Including rural and less developed areas in PHD activities; Fostering a spirit of self-reliance and self-confidence to make entrepreneurship self- generating; and Providing specific services such as training, consulting, and a computerized data bank. Lectures, seminars, case discussions, field visits, and role playing are among the methodological tools used to achieve these objectives. In its quest to enhance international collaboration, the PHD Chamber of Commerce and Industry has signed memoranda of understanding with parties in Australia, Bangladesh, China, Dubai, Greece, Jordan, Pakistan, Qatar, Russia, the UK, and the US. Apart from its direct support of entrepreneurship development, the PHD Chamber of Commerce and Industry has expanded activities into a larger socioeconomic interest, with a special focus on rural development. In 1981, the PHD Rural Development Foundation was established as a

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non-governmental voluntary organization. According to the PHD Rural Development Foundation, nearly 70 percent of India's population lived in villages in 1997, and 70 percent of the villages lacked drinking water facilities and 34 percent had no electricity Furthermore, 70 percent of the villages lacked good road links. Also of concern is the fact that 300 million (60 percent) of India's rural citizens are illiterate, and almost onehalf live below the poverty line, The Rural Development Foundation has been organized to act with a holistic approach to these problems. Across India, there are countless advocates of holistic management. This is a philosophy which attempts to synergize basic elements in order to get optimal results. For instance, the holistic approach encourages an all encompassing integration of the intellectual with the physical and the spiritual. In this approach, all mental, material, and moral faculties are engaged. Although educational institutions teach facts, they are often lacking when it comes to personality development. It is the belief of many that an

entrepreneurship personality can be taught and that this should be done at a young age in order to nurture more effective members of society.

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ENTREPRENEURSHIP INDIA

DEVELOPMENT

INSTITUTE

OF

One institute that, among its many activities, focuses on creating entrepreneurial personalities among youth is the Entrepreneurship Development Institute of India (EDII). A pioneer of the entrepreneurship movement in India, the EDII is a wholly autonomous body. Sponsored by several financial institutions, namely the Industrial Credit and Investment Corporation of India (ICICI), the Industrial Development Bank of India (IDBI), the Industrial Finance Corporation of India (IFCI), and the State Bank of India, the institute was established in 1983, when twenty-three acres of land were donated by the Government of Gujarat. The EDII campus is situated in a rural setting, outside Ahmadabad. Its campus, with buildings and courtyards that reflect European, Hindu, and Islamic architecture, was awarded the 1992 Aga Khan Award for Architecture. S2001ince the liberalization of the Indian economy, both the environment for enterprise and government policy offers opportunities for sustainable self-employment in India. However, as observed at the EDII, the lacunae in India's educational system do not promote
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independent thinking, creativity, or a spirit of innovation. Thus, with the conviction that entrepreneurs are not necessarily born as such but can be developed, the EDII launched a variety of programs to do just that. The Rural Entrepreneurship Development (RED) division, for instance, concentrates on rural development, employment generation, and poverty alleviation through the promotion of micro-enterprises. This division also has an informal micro-credit delivery system. The EDII's short-term training programs are held across India and elsewhere in Asia and in Africa. Today, the institute's network includes organizations in Australia, Botswana, China, Fiji, Jamaica, Kenya, Malaysia, the Netherlands, New Zealand, Papua-New Guinea, Pakistan, the Philippines, the Seychelles, the Solomon Islands, Sri Lanka, St. Lucia, Sudan, Switzerland, the United Kingdom, the United States, and Vietnam. Out of its extensive experience and network, the institute produces a variety of publications, including The Journal of

Entrepreneurship. The EDII also has its own educational video series. Perhaps the most unique contribution of the EDII is its summer camp, an entrepreneurial adventure for youth, first launched in 1992. Acknowledging that achievement-oriented societies have always been

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characterized by innovative, creative, and enterprising individuals and that India's conventional educational system does not focus on creating such individuals, EDII has taken upon itself the task of indoctrinating youth with such entrepreneurial values. EDII's entrepreneurship camp involves teenagers from across India coming to the EDII campus for a ten-day period, during which they are encouraged to develop the values and skills of achievement, excellence, creativity, innovation, leadership, problem solving, and systemic planning. The program is designed to increase the self-confidence of potential achievers and thereby to develop their concern for enterprise and for achievement. Methodology includes role playing and simulation exercises, with the following objectives in mind: Enabling participants to realize their latent potential; Developing capabilities by sharpening skills; Motivating individuals to seek independent, innovative, and

challenging careers; Fostering entrepreneurial traits including creativity, concern

for excellence, leadership, and problem-solving; Establishing a forum for fruitful networking; and,

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Providing an opportunity to interact with achievers.

Since the conventional educational system does not address these objectives, the EDII's annual entrepreneurship camp has been very popular and apparently successful as well. The EDH also has a separate program exclusively for sons and daughters of industrialists.

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NETWORK OF ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT (NEED)

The Network of Entrepreneurship and Economic Development (NEED) brings together underprivileged communities with teams of Social Entrepreneurs in order to maximize human resource potential and create positive change in their socio-economic and political environment.

This is achieved through:

Mainstreaming Gender Issues Micro-Enterprise and Entrepreneurial Skills Development Career driven focused Vocational Skill Training and upgradation. Pro-poor driven advocacy for Intellectual Property Right (IPR) towards registering the indigenous products through Geographical Indicators (GI) and economics governance.

Womens and Childrens Health, including Water and Sanitation Rural Asset Management, including Natural Resources

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Capacity Building Development in Locally Specific Resource Groups

Networking Towards Grassroots Activism and Global Change Service driven Micro-Finance supports to groups

ENTREPRENEURS WHO BROUGHT A RAISE IN INDIAN ECONOMY

1) Dhirubhai Ambani A proud son of this glorious state of Gujarat, and a man with long ties with this wonderful city of Ahmedabad, was the greatest example of this spirit of entrepreneurship! In a short span of less than 25 years, and without even the benefit of a formal education, Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the worlds 200 most profitable companies! He started out in life, working as a mere petrol pump attendant in Aden, Yemen. He had no technical knowledge, of any of the businesses he wished to create in India. He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsic faith in the latent demand potential of the Indian markets, a belief in the capabilities of Indian people, and a burning desire to succeed! The end result? He created Reliance, a Rs. 75,000 crore enterprise, in a single lifetime! 2) Azim H. Premji In a world where integrity purportedly counts for naught, Azim Hasham Premji symbolizes just that. The 55-year-old Wipro chairman made international waves in 2000 ever since his group became a Rs 3,500-crore empire with a market capitalization exceeding Rs 500,000 million! If any stargazer had been foolish enough to predict in 1966 that a 21-year-old Indian at Stanford University would one day achieve all this, he'd have been laughed out of business. At that juncture, Premji was forced to discontinue his engineering studies in the States due to the untimely death of his father. Returning to India to take charge of a cooking oil company, the youth infused new life into the family's traditional mindset and trade. Despite all the success, the media-shy Premji maintained a low profile, letting his work do all the talking. Until early last year the media broke the story that Azim Premji had become the second-richest man in the world In spite of his

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billions, however, he still travels economy class and stays in budget hotels. 3) N.R.Narayana Murthy An Indian IT chief who's really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys. Born in 1946, Murthy's father was a schoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire a degree in Electrical Engineering from Mysore University and later studied Computer Science at the IIT, Kanpur, India. The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, along with six friends. There was a minor hitch, though-he didn't have any seed money. Luckily, like many Indian women who save secretly without their husband's knowledge, his wife Sudha-then an engineer with Tatashad saved Rs 10,000. This was Murthy's first big break. The decade until 1991 was a tough period when the couple lived in a one-room house. The second break came in 1991 when Indian doors to liberalization were flung open Murthy grabbed the opportunity with both hands and has never looked back ever since. Today, Infosys is the first Indian company to be listed on the US NASDAQ. While working in France in the 1970s, Murthy was strongly influenced by socialism. The bubble was pricked, however, when he was arrested in Bulgaria on espionage charges. Today, he says: "I'm a capitalist in mind, a socialist at heart." It was this belief in the distribution of wealth that made Infosys one of the first Indian companies to offer employees stock-option plans. Infosys now has 400 employees who are dollar millionaires. Heading a company with the largest market capitalization hasn't changed Murthy's life-style much. The man still doesn't know how to drive a car! On Saturdays-his driver's weekly off-the Infosys chief is driven to the bus stop by his wife, from where he boards a company bus to work! Incidentally, Sudha Murthy is now chief of the Infosys Foundation, which channels Rs 50 million into charity every year. Simplicity, humility and maintaining a low profile are the hallmarks of this superrich Bangalorean. And the man is principled to a fault. Murthy's unprecedented wealth has catapulted him into the public glare. After the kidnapping of Dr Rajkumar by forest brigand Veerappan, the Home Ministry has sounded out the local government about providing Z-category security to Murthy and Premji. Both characteristically turned down the offer. In a letter to the police top brass last month, Murthy said he was a simple man who had no intentions of annoying his neighbors and disturbing traffic with an intrusive entourage of security vehicles and personnel.

THE ROLE OF ENTREPRENEURSHIP IN INDIAS

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FUTURE ECONOMIC DEVELOPMENT 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. Indias economy grew at an average of 6.3 per cent from 1992-1993 to 2000-2001. Further, its rate of inflation and fiscal deficit both decreased substantially. 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. Given Indias economic progress in recent years, the country may now be ready for the implementation of microeconomic policies that will foster entrepreneurial activities. Fortunately, in addition to the macroeconomic reforms, India has taken other steps to lay the foundation for the type of economic growth that can be fostered only by entrepreneurial activities and appropriate economic policies that reflect individual rights and responsibilities. For

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example, in recent years India has made several important structural changes, including the construction of telecommunications networks and the implementation of a nationwide road-construction programme Further, several thousand new economy businesses the types of businesses especially suited for entrepreneurship efforts-were started in 2000 alone. However, more than just opportunities should lead India to consider entrepreneurial activities as a way to economic growth. At least one major threat, a growing population, also should motivate it to consider entrepreneurial effort as an economic policy. Specifically, the countrys population is expected to increase by 110 to 130 million people over the next 10 years, with approximately 80 to 100 million of those new citizens seeking jobs that do not currently exist . Entrepreneurial efforts can help to provide those jobs. Recent research on entrepreneurship around the world indicates that the cultural characteristics that can foster successful entrepreneurial activities and its related economic benefits are a strong education base, the necessary financial support, opportunities for networking among entrepreneurs, and a well-defined, minimal role for the government. In the case of India specifically, an emphasis upon entrepreneurial activities in the information technology sector also seems relevant.

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CONCLUSION The Indian economy provides a revealing contrast between how individuals react under a government-controlled environment and how they respond to a market-based environment. The recent market reforms encouraging individual enterprise have led to higher economic growth
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in that country. The reasoning here is not new, although it is refreshing to discover that this tried-and-true reasoning applies to developing as well as to developed nations. Specifically, reliance upon a free market, with its emphasis upon individual self-interest in survival and wealth accumulation, can yield a wide range of economic benefits. In India those benefits have included, among other things, increased economic growth, reduced inflation, a smaller fiscal deficit, and higher inflows of the foreign capital needed for investment. We further conclude that India can generate additional economic growth by fostering entrepreneurial activities within its borders, particularly within its burgeoning middle class. Not only has entrepreneurship been found to yield significant economic benefits in a wide variety of nations, but India specifically has reached a point in its development where it can achieve similar results through entrepreneurial efforts. Among other things, India is poised to generate new business startups in the high technology area that can help it become a major competitor in the world economy. For example, it has a strong education base suited to entrepreneurial activities, increased inflows of foreign capital aimed at its growing information technology services sector, and a host of successful new business startups. To pursue further the entrepreneurial approach to economic

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growth, India must now provide opportunities for (1) education directed specifically at developing entrepreneurial skills, (2) financing of entrepreneurial efforts, and (3) networking among potential entrepreneurs and their experienced counterparts. Obviously, the government can play a substantial role in helping to provide these types of opportunities. It can also provide the appropriate tax and regulatory policies and help the citizens of India to understand the link between entrepreneurial efforts and economic prosperity. However, its role overall must be minimized so that the influence of the free market and individual self-interest can be fully realized. Only time will tell if increased entrepreneurial activities in India will actually yield the economic benefits found in so many other nations of the world. Should India decide to pursue that avenue of economic development, then future research needs to examine the results of Indias entrepreneurial programme. Perhaps more important, that research also needs to determine how Indias success in entrepreneurial efforts might differ from those pursued in developed nations.

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