AN OVERVIEW OF ENTREPRENEURSHIP

IN INDIA AND KERALA.

INTRODUCTION

The term “Entrepreneurship” is derived from the French verb

‘entrepreneure’ which means to undertake a business venture’ Basically
Entrepreneur can be regendn as a person who has the initiative skill and
motivation to set up and business or on Enterprise of his own and who
always looks for high achievement He looks for opportunities recent lies
them and seizes them mainly for economic gain.
The concept of Entrepreneurship involves motivation of resources and
utilization of them with a view to initiate change in production. It is very
often by adventures, risk bearing innovation, of new production
identification of new usage for mineral materials etc. A resolventure to take
calculation calculated risk with a view to attain certain specific objectives, is
discernable in an entrepreneur.
DEFINITION

1. “ An Entrepreneur is a a person who only provides capital without

taking active part in the leading role in Enterprise” Adam Smith.
2. “An Entrepreneur is a person who make decision under ulternative
courses of action” Clarence H. .Dun trot.
3. “Entrepreneur is a person or a group of persons who bears risk and
uncertinity” F.H Knight.
4. “An Entrepreneur is a rich former who manager and makes his
business profitable by his intelligence and wealth” Queseny.
5. “An Entrepreneur is a social parasite” Karal Marx.

There is no doubt that Entrepreneurship is a complex phenomenon.

But a systematic approach can help Entrepreneurship to growth and
development.

CONCEPT OF ENTREPRENEURSHIP

The concept of Entrepreneurship involves mobilization of resources

and utilization of them with a view to initiate change in production. It is the
intentional activity of a person or a group of persons undertaken to initiative,
maintain an enhance profit by the production on supply of good an services.
Entrepreneurship is the practical ability to create and build up
something new, from nothingness. It is fundamentally and art of human
creativity. In the process of Entrepreneurship, one finds out its personal by
to realize a much longer for objective.
The act of merely observing analyzing or interpreting a process is not
entrepreneurship. The ability to take risk and to minimize to impact is in
essential ingredient of entrepreneurship.
Further entrepreneurship scan be regarded as the ability to organize a team,
which has the dexterity to materialize the skill and the innovate usage of the
entrepreneur.

CHATACTERICS OF ENTREPRENEURSHIP
Entrepreneurship posses include certain characteristic They are listed below:
1. Adventurism
2. Risk Bearing
3. Innovation of new Ideas
4. Identification of new usage
5. Resolveness.

IMPORTANCE OF ENTREPRENEURSHIP

Among the inspects that go to into industrial development such as capital

natural resources scientific resources and human customers items produces
the country. This phenomenon is to be seen against the fact that Kerala has
less than 4% of the population of India and its percapital income is well
below the national averages.

Many industries develops cold feel mainly because of their perception of the
industries climate in Kerala. Entrepreneur who have some to this state have
pointed out the following factors which are poisoning the
industries…………………………

Firstly the bureaucracy and the trade union polluted the industrial
lonospheres. The red tape cum in Government and thus raising his social
status rather entering the field of the industry.

Political awareness is very high in Kerala. The result is no single party has
been able to form a single Govt in the state. The political character of the
state is much that its administration has been under different untis tents
consisting of a conglomeration of political parties.This has creates a lot it
uncertainity of and has contribute to the relatively…………pure of
industrialization in the state.

Kerala presents the suspectable of a vibrant people running statant economy.

In term of activating a high physical quality of life, Kerala is compared with
China, Srilanka and so as infect its built union a lower per capital income
when comered with China and Srilanka recent study revealed that keral
consumer 20% of bath societies in India. During this period they used their
political influences to create business opportunities for themselves and then
relatives. This today east on religion hindrance on absents in the path of
those person who went to proper through commenced and industrial activity.

NATURE OF ENTREPRENEURSHIP IN KERALA

Kerala has no traditional entrepreneur class. The trade and commerce

of this state were originally in the heads of outsides like the Gujarat’s ane
Thamilians who migrated to Kerala for this purpose. Althose the Christians
and Muslims entered the field later either of them have developed
themselves fully into a entrepreneurial class.

The eldest Hindu’s who originally almost entire land in the state, were
looked upon by them as interior occupation. Hence no entrepreneurial class
could develop from among them. Kerala’s Societies the the landlord a place
of prominence. Hence even the trading classes were more interested in
acquires loaded property.
“Well began is half done “will hold well in the case of India’s
entrepreneurship.

It is this which prompt them to travel distinct place in search of

business accumes have become characterite feactures of Gujarati speaking
community thought Gujarati consists of people of different religion, the
preference for business as a vocation is all prevensive and cats through all
social and religion narriers among them. Even traditional anti business caste
of Brahmins and Kshartriya has imbined the business culture and desire to
start their own units.

NATURE OF ENTREPRENEURSHIP IN INDIA

India does not posses of good record of entreprenurship. However its image
is definitely improviding concerted effort of liberalization has amade the
countries of the world sit back and look at India develop its own branch of
entrepreneurship. In the recent part India’s status is the industrial world has
grown from humble surroundings in now the truth industrialized nation of
the world.
However India has essentially been an adoptive entrepreneur. It has
now to prepare itself which an entrepreneurship of a different order that of
the innovate type. This will require the harnessing of India true potential
through tremendous advances of science and technology. It is essential that
the Government and the people must have a more nature and fine approach
toward the concept of entrepreneurs. Then only would it be possible for
nation to match the level reached by advanced countries. A good beginning
in this direction has been and one hope the adage countries become
economic goods usual to maintain because of the efforts of entrepreneurs. In
this ebsensence may scientific discoveries would have remained as they
were it should be remember that innovation is key to entrepreneurship.
Entrepreneurs have contributed many innovations is developed new product
and in the existing product and services. All these have result in economic
development by producing more employment more income, export of
product and service and making available better product and serve is to the
people.

It is very often said “much is a country inhabited by the poor”. India is

enclosed within plenty of nature resources and good climate but they
country has not made much economic progress as it should have been
national resources themselves will not produce economic produce.
Entrepreneurs perform vital function in economic development. They
have been reffered to as the human agent needs to mobilize capital to exploit
natural resources to create markets and to carry on India. It might be said
that the entrepreneuraial imports sells the the difference between prosperity
and poorly among nations. Japan is a place where is have accounting may be
reach in national resources but if it taken entrepreneurship it may not be able
to centraliesed the reouces and it may lay behind in economic development.
This is true may developing countries. Many developing countries realized
the importance of entrepreneurs and earlier attempt are now being made to
motive industrial entrepreneurs.
Entrepreneur are action oriented, highly motivated individual who
take risk to achieve goals an entrepreneur is one who looks for opportunities
identifies opportunities and series opportunities mainly for economic gain.
Economic development of a country depends primarly on its entrepreneur.
 IMPORTANCE OF ENTREPRENEURSHIP IN
SMALL-SCALE INDUSTRY

INTRODUCTION

A significant features of the India Economy since independence is the

rapid growth of the small scale industrial sectors. In the Industrial policy
resolutions of 1984 and 1956, the small sector was given special role for
creating additional employment with low capital investment. Anew thrust
was given in favour of small unit by the industrial policy statement of 1977.
The industrial policy Resolution of 1956. While emphassig the role of small
scale industries, state, they provide immediate large scale employment they
offer a method of ensuring a more equitable distribution of the national
income and they facilitate an effectives mobilization of resources of capital
and skill which might other wise remain untilised some of the reate will be
avoided by the establishment of small center industrial production all over
the country.

DEFINITION

As per the industrial policy statement of May 1990, a small scale

industrial unit is one engaged in manufacturing processing or preservation of
goods, rendering certain services and having an original investment in plant,
and machinery anot exceeding Rs. 60 lakhs. It was Rs. 1 Laks in 1995.
During 1997 on the recommendation Abid Hussain committee the
Government has raised the investment limit on plant machinery for small
unit from Rs.60 lakhs to Rs. 3 crore.

CHARACTERISTICS OF SMALL SCALE INDUSTRIES

To quote Jawaharalal Nehru, Sky is the limit for small industry .

There is enough evidence to show that the interest evinced in the potential of
small industry is not confined to one country or continent. There is a feeling
everywhere that is today world, it is the small industry that the key to growth
with equity.
Small scale industry is beautiful because of its following important
characteristics.
1) A small scale unit is generally a one man show. Even small unit
which run by a partnership firm or company, the activities are mainly
carried out by one of the partners or director. In practice, the other are
simply sleeping partners who mainly assist in providing funds.
2) In case of small scale industries, the owner himself is the manager
also. Thus these units are managed in a personalized fashion. He taken
effectives participation in all matters of business decision making.
3) A small scale unit has a low gestation period as compared to large
units.
4) The area of operation of a small scale industrial units is generally
localized catering to the local demands.
5) It uses indigenous resources and therefore can be located any where
subject to the availability of raw materials, labour etc..
6) It is fairly labour intensive with comparatively smaller capital
investment
7) Using local resources, small units are decentralized and dispersed to
rural areas. Thus, it promotes more balanced regional development.
8) Small scale units are mare flexible to adapt changes like introduction
of new products, new methods of production, new markets, new frms
of organization etc..

OBJECTIVES OF SMALL SCALE INDUSTRIES

The various objectives of development small scale industries are;

1) To generate immediate and large scale employment opportunities
with relatively low investment.
2) To eradicate unemployment problem of the country.
3) To bring backward areas too in the mainstream of national
development.
4) To promote balanced regional development in the whole country.
5) To ensure more equitable distribution of national income.
6) To encourage dispersal of industries to all over country covering
villages, small towns and economically lagging regions.
7) To encourage effective mobilization of people in the country.

SETTING UP OF SMALL SCALE UNIT

The procedure for setting up of small scale industrial unit is givn below.
1) Selection of product and preparation of project profiles.
2) Direct purchase of land or obtaining land the industrial estates.
3) Regiatration in case of formation of company or partnership concern.
4) Agreement with foreign collaboration if required.
5) Obtaining letter of indent or provisional SSI registration
6) Obtaining foreign collaboration approval from the Govt. of India.
7) Preparation of detailed project report.
8) Obtaining import license.
9) Applying for power connection to Kerala state electricity Board.
10) Obtaining Municipal license ( License from local authority)
11) Opening letter of credit for imported machinery and equipment, if any.
12) Selectoion of administratives and technical personal for running the
industrial unit.
13) Placement of orders for supply of local machinery.
14) Completion of civil works.
15) Delivery of importedand local machinery and equipment
16) Erection of machinery and equipments.
17) Obtaining clearance from pollution control board.
18) Trial run and commissioning of plant.
19) Start of commercial production.
20) Arrangement for sale of products.
21) Obtain industrial license or permanent SSI registration.

PROJECT FOR A
SMALL SCALE INDUSTRY

INTRODUCTION

Usually a project report is prepare by an after subjecting the efficient

aspects of the project to delates study and elaborate analysis complete
analysis of the project input and product is contained in a project report.
The import enably an entrepreneur is convincing himself that the project
is sound in matters regarding its technical commercial finaliear aspets
and the economical parameters related to the project are also perfectly
sound.
A project report shall be prepared only after evaluating the project
idea correctly. A project report which contents reliable data regarding. a
project report which contains the project idea correctly. A project service
as a best guide to the management and also explains the merits and
demerits of utilizing specific goods and services for the production
process. This report is prepared to analyse one chance in the project
envisaged.

DEFINITION

Project report may be defined as “it is a synchronization and synthesis

of data in respect of a project which service as a guide to management
and record merits and demerits in allocating resources to production of
specific goods and services.
 SCOPE OF THE PROJECT REPORT

The complete details regarding the following aspects are contained in a

report.

1.ECONOMIC ASPECTS

A project report should clarify the justification of the investment proposal

It should be able to present a market analysis of the product to be
produced. The market analysis should be based on the following issues.
(a) How big is the current market?
(b) How far the market may grow?
(c) after allowing a margin to the prospective market entrants how far the
given projects may be able to capture the future market?

2. TECHNICAL ASPECTS.

Project report should given a clear picture of the techniques required the
machinery and equipment and the sources from which they can be obtained.

3. FINANCIAL ASPECTS.

The project report should reveal the complete information regarding the
sources of financial availability the contribution of the entrepreneur etc.

4. PRODUCTION ASPECTS

The projects report should clarify details the products selected for
production and the reason for making such a selection the reports should
also be given in the reports

5. MANAGERIAL ASPECTS

The qualification and experience of the person instructed with the

project implementation should be detailed in the report. In case entrepreneur
is carrying out the management himself, his qualification that enable him to
under take such a responsibility should be clarified in the report.

CONTENTS OF A PROJECT REPORT

A good project report should contain the following DETAILS

1. General information
Information regarding production profile and product details.
2. Promoter
His/her name, educational qualifications, work experience, project related
experience.

3. Location

Exact location of the project, lease or freehold, locational advantages.

4. Land and Building

Lnad area, construction area, type of construction, detailed plan and

estimated along with plant layout.

5. Plant and Machinery

Detali of machinery, capacity, suppliers, cost, various alternatives available,
cost of miscellaneous assets.

6. Production Process

Description of production process, process chart; technical know-how,

technology alternatives available, production programme.

7. Utilities
Water, power, steem, compressed air requirement, cost estimates,
source of utilities.
8. Transport and communication

Mode, possibility of getting costs.

9. Raw materials

List of raw materials requires; quality and quantity of raw materials, tie up
arrangements, alternative raw materials, if any.

10.Man power

Man power requirement, skilled and semiskilled workere, sources of man

power supply, cost of procurement, requirement for training, cost of training.

11.Products
Product mix, estimated sales, distribution channels, competitors and their
capacities, product standard, input – output ratio, product substitute.

13. Market

End users of product, distribution of market as local, national and

international, practices sales promotion devices, proposed market research,
demand and supply position, expextected price, after sale service, etc.

14. Requirements of working capital

Working capital required sources bear for collateral security nature and
extece of credit facilities offered and available.

15. Research and development activities to be undertaken.

Break an of product cost in terms of costland, building, machinery,

miscellaneous assets, priminary expenses contingencies and margin money
for working capital, arrangements of meeting the cost of setting up of the
project.

16. Requirement of funds

Break an of product cost in terms of costland, building, machinery,

miscellaneous assets, priminary expenses contingencies and margin money
for working capital, arrangements of meeting the cost of setting up of the
project.

17. Pollution control system in operation.

18. Break-even analysis.

19. Technology selected.

20. Schedule of implementation.

PROJECT LIFE CYCLE AND ITS PHASES

Project life cycle is generally composed of three stages. They are,

1. Pre-investment Phase
2. Construction Phase
3. Normalization Phase.

In the first phase i.e., pre-investment phase comprises of three distinct phase
i.e., consumption phase, definition phase, planning and organizing phase. In
the next or second phase (construction phase) is known as implementation
phase and in the third and last phase i.e., normalization phase is also known
as clean up phase.

1. PRE INVESTMET PHASE

(1) CONCEPTION PHASE

This is the first stage or phase where the project idea germinates. The
idea come to the mind when one seriously attending to over come certain of
either the available funds , plant capacity, expertire one is after the problems
like an ant he looks around possible that an idea suddenly flash to his mind
wishes might provide him with idea or ideas. From what ever source he gets
the ideas there are they are comared to completing ideas. Taken care of any
factory or plant which is operating at lower capacity than it has and is having
hight power consumption resulting into higher cost of production per unit.
This situation is not at all acceptable and there for it pays to go in for new
technology, replace some critical item selectively or scrap the plant
altogether and go in for lates technology when within the resource
constraints especially finance, keeping up the man power already working
and raw materials. Hence these ideas need to be examined in the spot light
of one side objectives and the constraints. Finally the business house has to
work between these extremes comprises that given the best result. This is the
fasion in which business ideas are usually conceived . A well conceived
project is sure to go a long way for brilliant success thought implementation.

(ii) DEFINITION PHASE

This definition stage of the project to support the ida or idea generated at
conceptual stage by documentation or by defining it in concrete form. In this
phase it include quantity and quality of raw material, size or capacity of
plant, location and the site of the plant, the technology tobe employed, lay
out of projects, electrical and instrumentation works, civil engineering work,
plant utilities, man power needs and organization design, financial analysis,
schedule of implementation etc. should be considered.

(iii) PLANNING AND ORGANISING PHASE

Thought this phase starts after definition phase in practice starts with the
idea generation or consumption of project idea. This is the phase which is all
pervasive where it is bound over lapped again and again. This is to give
green signal for go ahead with implementation plan. Many firm prepare a
document called project execution plan. During this phase the firm deal with
the action steps to convert dream into reality. The vital aspect:-

a) Project infrastructure and supporting services.

b) System design and basic engineering packages.
c) Organization and the man power.
d) Schedules and budgets
e) Licensing and government clearances.
f) Finance
g) System and procedures
h) Identification of project manager
i) Basic of design, general condition regarding purchase and other contracts
j) Site preparation and investigation
k) Construction resources and material
l) Work package

2. IMPLEMENTATION OR CONSTRUCTION PHASE

This phase give an idea about what company is during because the
configuration on paper is seen that hectic activities are going on plan site.
This is project people are on work site for the first time, starting work as per
plan. Nearly 80 to 85% of total work is completed during this phase. It
include preparation, specification for equipment and machinery, placing
order for plant parts and machinery and other equipments, lining up
construction contractors, giving of construction drawing, civil construction
of equipment foundation arection of plant, machineries, electicals, piping,
plumping, instrumention, testing, trial run commissioning of plant.

This phase is very crucial and complex, need for greater co-ordination
and control.

3. NORMALISATION PHASE

In this phase transfer of project to the owner is occurred. To satisfy the client
the contractor and specialized experts are to be run several test runs. In case
the client needs to change at this stage that as to be met by the project
experts and contractors. Finally project completion accounts are closed,
material reconciliation is carried out, outstanding payments are made, if any
and all the dues are collected during this phase