Entrepreneurship development

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EXT 692
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Doctoral Seminar II
On
EntrEprEnEurship for VillagEEntrEprEnEurship for VillagE
DEVElopmEntDEVElopmEnt
Presented by
Adsul Ganesh Balkrishna
Reg.No.13P/2013A
Presented to
Dr. J.V. Ekale
Associate Professor
Seminar In charge
Department of Extension Education
VASANTRAO NAIK MARATHWADA KRISHI VIDYAPEETH,
PARBAHNI - 431 402

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CONTENT
 Introduction of EntrepreneurshipEntrepreneurship
 Definitions of EntrepreneurEntrepreneur
 History of EntrepreneurshipEntrepreneurship
 Important qualities of an entrepreneur person
 Entrepreneurial Characteristics
 Cultivating New Entrepreneurs
 Steps in the Entrepreneurial Process
 Entrepreneurial Opportunities In Agriculture
 Benefits of Village Enterprises to Nation
 Government Strategies for new Entrepreneur
 Sources Of Finance for New Entrepreneurs
 Training / Skill Development for New Entrepreneurs
 Case studies / Success stories of Agricultural Entrepreneurs
 Research Studies on EntrepreneurshipEntrepreneurship
 Conclusion

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 Entrepreneurship is the capacity and willingness to develop,
organize and manage a business venture along with any of
its risks in order to make a profit. The most obvious example of
entrepreneurship is the starting of new businesses.
 Entrepreneurship is the act of being an entrepreneur, who
starts any economic activity for being self-employed.
 Entrepreneurship is the “process of the entrepreneur”. It is an
attempt to create value through recognition of business
opportunity.
 Entrepreneurship is the Process of creating something new and
assuming the risks and rewards.
INTRODUCTION

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 It is basically communicative and management functions to
mobilize financial and material resources.
 Entrepreneurship is the process of creating something new of
value by devoting (giving) the necessary time and effort.
 In Peter Drucker’s view (1985) – Entrepreneurship is neither a
science nor a art. It is a practice. It is not just about making
money. It is all about imagination, flexibility, creativity,
willingness to think conceptually, readiness to take risk.
 According to Robert K. Lamb - Entrepreneurship is the form of
social decision making which is performed by economic
innovators.
Cont..

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 According to H.N.Pathak- Entrepreneurship involves
1.Perceptoin of an opportunities.
2.Organizing an industrial unit.
3.Running the industrial unit as profitable, going & growing
concern.
 The entrepreneurial activity is governed by varying
combination of socio-economic, psychological, cultural and
other factors: Caste/religion, family background, level of
education, level of perception, occupational background,
migratory character, entry into entrepreneurship, nature of
enterprise, investment capacity and moderation.
Cont..
(http://www.khushimain/entrprenurial-attitude.h/)

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Definitions of EntrepreneurEntrepreneur
 The word ‘entrepreneur’ is derived from French word
‘Entreprendre’ which was used to designate an organizer of
musical or other entertainments.
EntrepreneurEntrepreneur
 “An entrepreneur is a person who buys factor services at
certain prices with a view to selling its product at uncertain
prices”
(According to Cantillon )
 “Entrepreneur is one who is endowed with more than average
capacities in the task of organizing and coordinating the factors
of production, i.e. land, labour, capital and enterprises”
(According to F.A.Walker)

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 “An entrepreneur as one who always searches for change,
responds to it and exploits it as an opportunity”
(According to Peter F. Drucker )
 “An entrepreneur is an economic man who tries to maximize
his profits by innovation, involve problem solving and gets
satisfaction from using his capabilities on attacking
problems”
(According to E.E.Hagen)
 “An entrepreneur is a person who specializes in taking
judgmental decision about the coordination of scarce of
resources”
(According to Mark Casson )
Cont..
(http://www.YAboukir1/entrprenurship-8060h/)

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History of Entrepreneurship In World
Earliest Period
 Marco polo , as a go-between was an Italian.
He wants to trade routes to the far East.
 As a go-between, He had to sign a contract
with a money person to sell his goods. In the
contract merchant-adventurer took a loan at
22.5% rate including insurance.
 When the merchant-adventurer successfully
sold the goods and completed the trip, the
profits were divided with the capitalist taking
most of them (up to 75%), while the
merchant-adventurer settled for the
remaining 25 %.

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 Entrepreneur used to describe both as an
actor and a person who managed large
production projects.
 Individuals did not take any risks because all
the resources used to provided by the
government of the country, all an
entrepreneur should do is to manage it.
 A typical entrepreneur in the middle age was
the priest.
 The person in charge of great architectural
works used to build castles and fortifications,
public buildings, abbeys, and cathedrals.
Middle Ages
Cont..

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 The connection of the risk with entrepreneurship
developed in the 17th
century.
 John law, a Frenchman was one of the entrepreneur in
that period. The founder of the royal bank of France
and the Mississippi Company, which had an exclusive
franchise to trade between France and the new world.
 Richard Cantillion, a well-known English economist at
the beginning of the 17th
century, understood Law’s
mistake.
 He viewed the entrepreneur as a risk taker, observing
that merchants, farmers, craftsmen, and others sole
proprietors “buy at a certain price and sell at an
uncertain price, therefore operating at a risk. ”
17th
Century
Cont..

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 In the 18th
century, the person with capital was
differentiated from the one who needed capital.
One reason for this differentiation was the
industrialization occurring throughout the world.
 Eli Whitney was an American inventor best known
for inventing the cotton gin. This was one of the
key inventions of the industrial Revolution.
 Thomas Edison, the inventor of many inventions.
He was developing new technologies and was
unable to finance his inventions himself.
 Edison was a capital user (an entrepreneur), not a
provider (a venture capitalist).
18th
Century
Cont..

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 In the late 19th
and early 20th
centuries,
entrepreneurs were frequently not distinguished
from managers and were viewed mostly from an
economic perspective.
 Andrew Carnegie who descended from a poor
Scottish family, made the American Steel Industry
one of the wonders of the industrial world.
 The function of the entrepreneurs is to recreate or
revolutionize the pattern of production by
introducing an invention.
 Edward Harriman, who reorganized the railroad in
the United States.
19th
& 20th
Centuries
In the middle of the 20th
Century
Cont..

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 John Morgan, who developed his large
banking house by reorganizing and
financing the nation’s industries.
 Traditional technologies innovations
(translators, computers, lasers) that are
usually associated with the world
invention.
 The Egyptian who designed and built
great pyramids out of stone blocks
weighing many tons each, to laser beams,
supersonic planes and space stations.
19th
& 20th
Centuries
(Source: Entrepreneurship in Theory and History by Youssef Cassis)
Cont..

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History of Entrepreneurship In India
1) Jamsetji Tata (1839 –1904)
 Jamshetji Tata is the founder of the Tata group
of companies. It is now the biggest Indian
conglomerate of India employing more than 4
lakh people and with revenue boasting of USD
83 billion.
 He started his adventurous life in business by
setting a cotton mill in Bombay and then one
another in Nagpur.
2) Ardeshir Godrej (1868 - 1936)
 The founder of the Godrej group of companies.
18th
Century

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3) Walchand Hirachand Doshi (1882 – 1953)
 Founder of the first Indian Aircraft company; the
Hindustan Aircraft, and a modern shipyard
known as Hindustan Shipyard Limited and lastly
the first car factory of India known as Premier
Automobiles.
4) Govindram Seksaria (1888 - 1946)
 Govindram to be known by the name of ‘cotton
king’ of the world.
 First he become a member of Bombay Cotton
Exchange and then of New York Cotton Exchange
and many others throughout the world. He
started his firm in 1937.
18th
Century
Cont..

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5) Kailash Chandra Mahindra (1894 - 1963)
 K. C. Mahindra was one of the founder of the
company which was first known as Mahindra and
Mahindra.
6) Ghanshyam Das Birla (1894 - 1983)
 G.D. Birla is the founder of the Aditya Birla group,
now a multinational conglomerate having its base
in Mumbai.
 He started a paper mill, a sugar factory, then a car
factory, and also expanded his business in to
cement, steel and also started a commercial bank
now known as United Commercial Bank which is
still operational by the name of UCO Bank.
18th
Century
Cont..

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1) Jehangir Ratanji Dadabhay Tata (1904 –1993)
 He set up India's first commercial airline company
known as Tata Airlines in 1932 which was
rechristened as Air India in 1946 and is now
India's national airline. For his achievement in
business he was awarded the highest civilian
award of India: Bharat Ratna.
2) Bhai Mohan Singh (1917 - 2006)
 He is the pioneer of pharmaceutical industry in
India. Ranbaxy was first a distributor of a
japanese firm, Bhai Mohan Singh bought the
company and joined hands with an Italian
pharma company.
19th
Century
Cont..

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3) Verghese Kurien (1921)
 Verghese Kurian is the founder of Amul which is
most famous dairy product company. Amul is the
largest producer of milk products in the world. He
is famous for his achievement in making the largest
dairy development program of the world known as
Operation Flood.
4) Dhirubhai Ambani (1932 - 2002)
 Dhirubhai Ambani is the most famous businessman
of India. Dhirubhai started his first an import-
export firm, then Reliance Industries and after
years of hard work his dream to make the world's
largest oil refinery of the world was completed in
1999 Jamnagar, Gujarat.
19th
Century
(Source: A History of Entrepreneurship by K.V. Nagarajan)
Cont..

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Important Qualities Of Entrepreneur
Person

21. Entrepreneurial Characteristics
Entrepreneur requires specific characteristics and skills
that are often achieved through education, hard work, and
planning.
 Risk Taker - Entrepreneurs minimize risk through research,
planning, and skill development.
 Curious - Like to know how things work. They take the time and
initiative to pursue the unknown.
 Imaginative - Entrepreneurs are creative. They imagine
solutions to problems that encourage them to create new
products and generate ideas.

22.  Goal-seeking - Entrepreneurs are motivated by the excitement
of staring a new business. Once achieved, they seek out new
goals or ventures to try.
 Hardworking - Entrepreneurs need a great deal of energy to
see a venture start and succeed.
 Self-confident - He believe in themselves. Their self-confidence
takes care of any doubts they may have.
 Flexible - It must be flexible in order to adapt to changing –
trends, markets, technologies, rules, and economic
environments.
 Independent - He desire for control and the ability to make
decisions often makes it difficult for them to work in a
controlled environment.
Cont..

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Cultivating New Entrepreneurs
Educational attainment
Immigration and diversity
Financial resources
Business resources

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Steps In Entrepreneurial Process
1. Discovery
2. Concept Development
3. ResouRcing
4. Actualization
5. Harvesting

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steps in entRepReneuRial pRocess
I. Discovery:
 Generates ideas, recognizes opportunities,
and studies the markets.
Cont..
Innovation
Opportunity

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DiscoveRy
Cont..
Consider your
hobbies or skills
Consider consumer needs and
wants
Conduct Surveys and
questionnaires –
test the market
stuDy
DemogRaphics

27. II. Concept Development:
 Develop a business plan:
A detailed proposal describing the business id
 Code of ethics
 Mission Statement
 Executive summary
Cont..

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concept Development
 Choose business location
 Will a patent or trademark be required?
Cont..

29. III. Resourcing:
 The entrepreneur identifies and acquires the financial,
human, and capital resources needed for the venture
start-up.
Start-up resourcesStart-up resources
Cont..

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ResouRcing
Cont..
IdentifyIdentify potentialpotential
investorsinvestors
Apply for loans,Apply for loans,
grants andgrants and
assistanceassistance
HireHire
EmployeesEmployees

31. IV. Actualization:
 The entrepreneur operates the business and
utilizes resources to achieve its goals/objectives.
 Grand pending
 Day-to-Day Operations
Cont..

32. V. Harvesting:
 Entrepreneur decides on venture’s future growth,
development, or demise of enterprise.
 What is your 5-year or 10-year plan?
 Consider adding locations or providing different
products/services
 Will you go public?
Cont..

33. Entrepreneurial Opportunities In Agriculture
i. DiveRsiFication  It involve- shift in cropping
pattern from traditionally
grown less to more
remunerative crops like
oilseeds, pulses, fodder crops,
horticulture, medicinal and
aromatic plants, floriculture
etc.
 Includes- livestock and fishery
enterprises and small scale
agro-based industries.
 Increases - employment
opportunities, optimum use of
resources and profitability.
(http://dfs.berkeley.edu/about.us/mission.goals/)

34. ii. oRganic FaRming
 Growing very fast
particularly in international
market.
 This sector provides great
business opportunities to
agro-based entrepreneur.
(http://www.organicagriculture.co/indian-scenario.php)
Cont..

35. • III. FLORICUTURE
 India's share in
world trade of
floriculture is just
0.18 per cent. This
is a huge market
to be tapped
considering the
rising demand for
fresh flowers.
Cont..

36. IV. PRODUCTION OF AGRO-INPUT
1) Farmers can start entrepreneurial activities in the
production of seed, organic fertilizers and pesticides.
Cont..

37. 2) MEDICINAL PLANTs –
 Demand for cultivated medicinal plants is increasing
due to reduced availability of medicinal plants from
forest.
 Ayurvedic drug manufacturers are also entering into
contracts with farmers for supply of medicinal plants.
Cont..

38.  AROMATIC PLANTs: Demand for natural perfumes is
increasing due to health issues related to chemical products.
 COMMERCIAL FOREsTRy: Waste lands not fit for
agriculture can be used for commercial forestry. Plants like
eucalyptus, bamboo etc. can be raised. Paper mills, matchstick
manufactures and furniture makers are buying these items.
 BIO FUELs: About 30 verities of plants have been
identified for production of bio fuels. Jatropha is one such
verity. Raw oil can be extracted in village areas for further
refining into bio diesel.
 sEED PRODUCTION: Good quality certified seeds are in
great demand and marketing is very easy.
Cont..

39. V. FOOD PROCEssING
Cont..

40. FOOD PROCESSING,PRESERVATION, AND
PACKAGING  There is a significant shift in
consumer food preference
towards processed food products.
Entrepreneurs can add value with
proper management and
marketing initiatives.
 The processed food market opens
a great potential for
entrepreneurs be it fast food,
packaged food or organic food.
Cont..
(http://www.food-preservation-can-jam-9-stone-fruits/)

41. VI. FARM NUTRITION / PEsTICIDE
PRODUCTs
 Presently our farmers are more dependent on
chemical fertilizers for farming operations.
 The farmers can produce several organic fertilizers
like compost, vermi-compost, neem based and other
herbal pesticides etc. on commercial scale for own
use and sale in urban/ village areas.
 The products are very low energy consuming and use
raw materials which are otherwise waste.
Cont..

42. VII. ANIMAL hUsBANDRy BAsED
ENTERPRIsE
• Dairy - Popular and organized
dairy farm start from 2-3
animals to hundreds of
animals
• Processing and distribution of
milk is related business.
• The next popular enterprise
is poultry in addition to sale
of eggs and the poultry birds.
Cont..

43. • In addition to the produce from
living animals, certain village
industries are based on the
residue of dead animals like
bones and hide etc.
• The commercial rearing of
various animals like pigs, sheep,
goats and rabbits for wool and
meat is also a popular enterprise
where grass is easily available.
• Misuse of hormones, chemicals
and unethical rearing practices
are major concerns for this
sector.
Cont..

44. VIII. sERICULTURE / APICULTURE
• Sericulture - very popular in certain
pockets of India and is an old
profession.
• Silk garments - very popular,
sericulture taken up on commercial
scale as there is no problem in sale
of raw as well as processed silk.
• Apiculture - commercial scale is
gaining popularity not only for direct
domestic sale but also for export .
• Honey bees also contribute towards
pollination thereby increasing
agriculture production.
Cont..

45. Ix. AqUACULTURE
• Aquaculture - practiced in
any part of country where
water is available.
• Waste lands, degraded
lands can be converted
into fish tanks.
• Aquaculture - also be
practiced with other allied
industries like poultry as
waste of one can be used
in other.
Cont..

46. x. TRADITIONAL hANDICRAFTs
 India is famous for traditional handicrafts based on
skills and local materials.
 There is huge export market for handicrafts and
traditional products.
 Those interested in trading can buy the products
from small manufactures and sell it in urban
markets.
 The cooperatives or self help groups of producers
can also take up trading activity.
Cont..

47. xI. hANDLOOM / POWER LOOM / khADI
 This sector is providing huge
employment.
 Co-operatives or self help
groups can take up this
activity, benefit will go to
village people.
 village entrepreneurs take up
this activity by value
addition like ready made
garments .
Cont..

48. Entrepreneurial Opportunities In Service Sector
 Growing at a high rate, has good potential in urban
and in village areas also.
 Repair shops, service centers, PCO, internet café,
hiring of agriculture implements & tractor, computer
and other skill training centers have good scope in
cluster of villages.
 Success of the e-chaupals has opened door for
replication of this model.
 Entertainment, cable TV, village tourism etc are the
potential areas in service sector.

49. e – Choupal : An opportunity in service
sector
Cont..
(http://www.egovernance.com)

50. Service sector and Small units creats
Employment
Cont..

51. Benefits of Village Enterprises to Nation
 Reduces the migration of peoples from rural areas to
urban areas.
 Increasing slums in urban areas will be reduced.
 The crumbling infrastructure of urban areas will get a
reprieve.
 Nation will save huge sum of money in form of fuel.
 Increase the GDP of nation.
 Use of non conventional sources of energy will be
encouraged.
 The large amount of waste will be gainfully utilized.
 It give higher returns and encourage private investment.

52. Government Strategies for Entrepreneur
 Mahatma Gandhi was one of the prime supporters of
khadi and village industries .
 One of the basic philosophy was to keep the three
basic needs of human beings out of preview of
mechanization to generate employment i.e. food,
shelter and clothing.
 After independence, the development strategies were
worked out in the form of five year plans.
 1st
Five Year Plan : Boards created for development of
six specific village sectors i.e. khadi, coir, silk,
handicrafts, handlooms, small industries.

53.  2nd five year plan: Role and activities of KVIC increased
and Items reserved for small scale industries.
 3rd five year plan: village Industries, training and skill
development projects were launched.
 4th five year plan: Provision of financial assistance to
KVIC for various programmes.
 5th five year plan: Agriculture was given less
importance as compared to industries.
 6th five year plan: IRDP and TRYSEM were launched to
promote village entrepreneurship. The programme
introduced the concept of subsidy and self employment
first time to village people.
Cont..

54.  7th five year plan: The strategy of the plan was to enhance
the level of earnings of small enterprises by providing
assistance in form of technology, skills and finance.
 8th five year plan: The focus was shifted from village &
cottage industries. Private investment welcomed in all
sectors.
 9th five year plan: Separate ministry was created for small
scale and agro industries.
 10th five year plan: Cluster based development was
proposed with financial assistance from KVIC, NABARD,
SIDBI.
 11th five year Plan: Focus on skill development, quality
improvement and employment generation.
Cont..
(http://www.economicbudgetindia.com

55. Source Of Finance for New Entrepreneur
 All entrepreneurs are not financially fulfilled and may
require assistance from financial institutions or banks
for the project.
 Various sources of finance are,
1. Commercial Banks
2. Cooperative Banks
3. NABARD
4. Regional rural Banks (RRBs)
5. SIDC of various states
6. Non Banking Finance Companies
 Subsidies are also available under various government
schemes.

56. Training / Skill Development For Entrepreneur
 Specific skills development or specific training
institutes are conducting training for youth, such as;
1. CIMAP for medicinal plants
2. NBRI for floriculture
3. CFTRI for food processing
4. NIRD for village technology related projects
 NABARD is sponsoring various skill training program's
through NGOs.

57. 57

58. Transforming Agriculture Into Agriprenuership:
Sitabai Mohite
Case-1
 Mrs. Sitabai Rambhau Mohite is an illiterate poor farm woman from
village Ghodegaon Tq. Dist. Jalna. She was working as farm labour for
wages and cultivating land with the help of family members. Her husband
Mr. Rambhau Mohite inspired her to establish Nursery and Vermicompost
Unit on one acre borrowed land at village Sindhi Kalegaon, 4 K.M. away
from Jalna, on Mantha Road. While working in nursery; she gained the
skills of nursery management. She learned about independent thinking
and decision making regarding nursery. Through nursery business the
earning was Rs.4000-5000/- per month.
While working in nursery her entrepreneurial mind was not allowing
her to keep quiet. She attended monthly seminars of Mahila Krishi Vigyan
Mandal organised at KVK, Jalna, during September 2004 to October 2005
on fruit processing.

59.  During this seminar she developed interest in fruit processing. She
specifically developed interest in Aonala and developed herself
technically from KVK, Jalna. In year 2004-05 she processed one quintal
Aonala in Aonala candy & juice earning net profit of Rs.10,000/- This
response encouraged her to process 3 quintal Aonala to Aonala Candy,
Supari, Murabba, Powder, Tooth Powder, and Remedial Cream on Toe
Cracks at her home during year 2005-06 and earned net profit 30,000/-.
For marketing she booked stalls at different Kissan Melas, Exhibitions,
fairs, and gatherings in whole Marathwada region.
 Mrs. Sitabai Mohite honored with Maharastra Udyogini Awards in
2009 (Rural area Winner). This award is given by MITCON Consultancy &
Engineering Services Ltd., For her contribution and success she was
identified by State Department of Agriculture & in December 2005 got
awarded as “Virangana Savitribai Fule fellowship award-2005” at New
Delhi in presence of Smt. Sheela Dixit, Chief, Delhi & Mr. Arjunsingh,
Resource Minister.
Cont..

60. Cont..

61. Case-2
Mr. D. B. Sangave : Generarting a Good source of income
through Turmeric processing
 Mr. D. B. Sangave One of the participants of
Training Programme on Developing Agro-
entrepreneurship was organized by Circle
agriculture Officer Mr. D. B. Sutar under MWSIP
during the year 2011-12 at Latur. Mr. D. B.
Sangave who has a land holding of 1.0 hectre and
primarily takes Turmeric, as a Spices crop has
shown interest in the Turmeric processing
activity. Accordingly he was guided on various
aspects such as
 Opportunities in Processing of Turmeric
 Marketing
 Project Report Preparation
 Bank Loan
 Resource Management

62.  Mr. D. B. Sangave Subsequently he
started the preparation for project and
procured suitable machineries and the
project get started by the installed
capacity of Polisher is 2.5 Quintal to
100 Qntl per day & 4 Quintl per polish
machine. This project was worked for
30 days. Sangave process around of
Turmeric per month cost is Rs 6.00
Lakhs and the Rate of Return is 1/3rd of
turmeric processing cost .
Cont..

63. Constraints faced by entrepreneur (farmers) in maintaining
their farm enterprise and suggestions
A.N. Sabale, D.D. Suradkar, B.M. Thombare
The result was focused that majority of the farmers
expressed financial problems, lack of exposure to mass media
and information, marketing problems then lack of knowledge,
lack of food grain storage facilities, labour problems and lack
of transportation facilities. Majority of farmers suggested easy
availability of finance be made followed by giving policy
support for entrepreneurs, organizing effective training
programmes, promoting co-operatives and improving
marketing system for taking up entrepreneurial activity.
Research studies on Entrepreneurship

64. Findings of the study
The paper is focusing on finding that great majority (76.25%) of
the poultry farmers had very high to high level of significance market
orientation. More than half (53.75%) of the poultry farmers had
medium level of achievement. The study also shows that
independent variables like age, education, caste, annual income,
extension participation and attitude pattern having close association
with entreprenurial behaviour of poultry farmers in Anand district.
Entrepreneurial behavior of Poultry Farmers
T.R. Patel, Krunal D. Gulkari and J.K. Patel
Cont..

65. 65
CONCLUSIONS
 Important entrepreneurship development opportunities in
agriculture are diversification in agriculture, income from venture
technologies, food preservation, processing and value addition,
production of agro-inputs.
 The entrepreneurial qualities and skills can be developed through
vocational training programmes and education.
 The opportunities are tremendous but takers are few reason is
lack of infrastructure and awareness about entrepreneurial
activities.
 The problem is that most of the rural youth do not think of
entrepreneurship as the career option.
 Coordinated efforts of various agencies are required to achieve
the goal of village industrialization.