This document discusses entrepreneurship in India. It begins by defining entrepreneurship and outlining its objectives, which include analyzing challenges Indian entrepreneurs face and the potential for entrepreneurship in India. It then describes the research methodology and provides an overview of the history and development of entrepreneurship in India. Challenges faced by Indian entrepreneurs are explored, as well as the potential opportunities due to India's large population and market. The roles of incubators, sources of financing like venture capital and angel investors, and government intervention schemes are also summarized.

1. Entrepreneurship : an
art explored
Shubhi Verma

2. Introduction
The word „entrepreneur‟ is derived from the French
verb „enterprendre‟. It means “to undertake”.
Entrepreneur is the artist who innovates, thinks and
creates layman goods into commercial phenomenon.
The underlying spirit of entrepreneurship is
innovation(Schumpeter,1950).
He is a artist who imagines and creates products for
his ‘target audience’.

3. Objectives
Through this case study, an attempt has
been made to focus on the following :
Evolution of Entrepreneurship in India.
Analysis of the challenges that Indian
entrepreneurs face.
Throw light upon the potential of
entrepreneurship in India.
Observing the role of the incubators and the
government .

4. Research methodology
Information in the case study is based on primary
and secondary resource drawn from various :
Books
Newspaper
Website
Interview
Reports

5. Story
of
Entrepreneurship
in
India

6. Socialistic India :
Nehruvian era
Quota raj
Capitalistic India :
Liberalization
Privatization
Globalization

7. faced
Challenges
By India

10. Cultural
Reasons
Challenges
Faced By an
Indian
Entrepreneur
Brain-
Drain
Theory
Socialistic
Reasons
Historical
Reasons

11. Maslow’s theory of human motivation

12. Discovery Of potential In India
The 1.15
billion huge
population
creates great
opportunities
400 million
people
below the
age of 35 by
2020
Unsaturated
market
India-democratic
and
capitalistic
Government
schemes
and
programes

13. Role Of Incubators

14. Financial Foothold

15. Sources of Finance
Debts Equity
Bank
s
Other
Financial
Institutions
Venture
Capitals
Private
Equity
Funds
Angel
Investors
Other
Government’
s
Intervention
Self-finance

16. VENTURE CAPITAL
In a Venture Capital,
the investors give
money to young
business and startup
firms that have long-term
growth
potential.
This source of
funding is very
crucial for those
young entrepreneurs
who do not have
access to capital
markets.
There is high risk for
the venture
capitalists but they
can earn above
average returns and
a substantial amount
of equity in the firm.
Majority of the
venture capitalists
are investment
banks, wealthy
individuals and other
financial institution.

18. IPO

19. Advantages and Disadvantages of VC
ADVANTAGES
•Venture capital funding minimizes the
amount of risk. When a loan is taken from the
banks there is a need to pay it back with
interest added.
•No need of collateral. When taking loan,
possessions such as home etc. is listed as
collateral, which is not required in Venture
capital.
•Expertise accompanies the VC funding.
Most of these VCs consist of experienced and
talented businessmen, which often bring in their
advice, and invest their knowledge in the
startup. This leads to the birth of innovative new
ideas that maximizes their chances of success.
•Other value added services such as:
•Mentoring
•Alliances
•Facilitate exit
DISADVANTAGES
• Loss of autonomy. Start-ups must
give a substantial amount of share or
equity to the VC, this means VCs
acquire a say in the company’s
decision making. This result in the loss
of autonomy.
• There are certain restrictions on the
part of the start up firm when a VC
deal is signed. This includes employee
salary and start up’s management
team amongst others.
• This could be a lengthy and complex
process. One needs to draw a
complete business plan, and put
forward company’s financial projection
etc.
• Accounting fees and Legal
expenses. At the deal negotiation
stage one needs to handle these
external costs, which would add on to
the financial pressure.

20. Angel Investors
Also known as Business Angels or Investment
angels
An investor who provides financial backing for small
startups or entrepreneurs.
Angel investors are usually found among an
entrepreneur's family and friends.
The capital they provide can be a one-time injection
of seed money or ongoing support to carry the
company through difficult times.
Angel investors give more favorable terms than
other lenders, as they are usually investing in the
person rather than the viability of the business.

21. Advantages and Disadvantages of IAs
IAs are free to make
investment decisions quickly
No need for collateral – i.e.
personal assets
Access to your investor's
sector knowledge and
contacts
Better discipline due to
outside scrutiny
Access to BA mentoring or
management skills
No repayments or interest
Not suitable for
investments
below £10,000 or
more than
£250,000
Takes longer to
find a suitable IA
investor
Giving up a share
of your business
Less structural
support available
from an IA than
from an investing
company.

22. Others- Government Intervention
Government also plays an
important role in an
entrepreneur’s life. There
are various schemes
launched by the government
to help young entrepreneurs
to stand on their feet.
Various legislations have
been enacted to serve these
entrepreneur’s needs and
help them to construct their
ideas. One such legislation
is the Micro Small and
Medium Enterprise Act
(MSME) 2006.
Another brilliant examples is
Mukhya Mantri Yuva
Swarozgar Yojna (MYSY
Scheme) being
implemented in the State of
Madhya Pradesh which
aims at promoting
entrepreneurship in the
state without the need for
collateral security.

23. Micro Small and Medium Enterprises Development Act
2006
Section 10 of the MSME Act
states that ‘the policies and
practices in respect of credit
to the micro, small and
medium enterprises shall be
progressive’…and that the
RBI would issue guidelines
from time to time, ‘ to ensure
timely and smooth flow of
credit to such enterprise,
minimize the incidence of
sickness and enhance the
competitiveness of such
enterprises’.
Section 12 of the MSME Act
also calls for the constitution
of one or more funds for the
sector, to which the
government would provide
grants.

24. Mukhya Mantri Yuva Swarozgar Yojna (MYSY)
Objective: For promoting entrepreneurship in the Madhya
Pradesh without the need for collateral security.
Nodal Office for implementation and monitoring of the
scheme: Department of Commerce, Industries and
Employment
•Implementing Agencies: Panchayat and Rural
Development Department for Rural Areas
and Department of Commerce, Industries and
Employment for Urban Areas.
•Project Cost: Ultra Small: Project Cost Up to Rs.50000 ,
Small : Project Cost from Rs.50000 to Rs.25 lac
•Classification of Advance: Micro and Small Enterprises
•Repayment: Not exceeding 84 months excluding the
moratorium period.
•Quantum of Finance: Rs. 25 lac
•Margin: State Government will provide 20% of the project
cost as Margin Money or Maximum Rs.10000 one shot
basis for project cost up to Rs.50000
•Rate of Interest: For Loan up to Rs.10 lac : BR+0.50%,
For Loan above Rs.10 lac and up to Rs.25 lac: BR+1.00%
•Security: No collateral security if the account is covered
under CGTMSE. In other case security of 100% of amount
of loan sanctioned to be taken.
•Guarantee Fee:
•Interest Subsidy by government: 5% for initial 5 years
subject to certain limit.

25. Question
Is education a
necessity for one to
be an entrepreneur ?

26. Conclusion
Through this
case study we
discovered ,that
it is
entrepreneurs
that fuel our
economic
growth.
They not only
ensure the
reduction of
poverty but also
the socio-economic
growth.
Entrepreneurship
paves the way
for a layman to
turn into a
phenomenon.
There is no age
bar for one to be
an entrepreneur ,
you think today
and tomorrow
will be your day.

27. Bibliography
Report:
Entrepreneurship Challenges and Opportunities in India : Dr.N.
Santhi and S. Rajesh Kumar
UNDP report on Entrepreneurship 2010
National knowledge commission report 2009.