Abhishek Khamitkar Project

1.
INRODUCATION OF THE COMPANY
1.1 Definition of Start-up:
A Start-up company or start-up or start-

up is a young company that is just beginningto develop. Start-ups are usually small and initia
lly financed and operated by ahandful of founders or one individual. These companies offer a
product or service that is not currently being offered elsewhere in the market, or that the
founders believe is being offered inan inferior manner. In the early stages, start-
up companies' expenses tend to exceed theirrevenues as they work on developing, testing an
d marketing their idea. As such, they oftenrequire financing. Start-ups may be funded by
traditional small business loans from banks or credit unions, by government sponsored Small
Business Administration loans from local banks, or by grants from non-profit organizations
and state governments. Paul Graham says that "A start-up is a company designed to grow
fast. Being newly founded does not in itself make a company a start-up.
Nor is it necessary for a start-up to work on technology, or take venture funding, or have
some sort of "exit". The only essential thing is growth. Everything else we associate with
start-ups follows from growth."
1.2 START UP INDIA
Is an initiative of the Government of India.

The campaign was first announced by Indian Prime
Minister, Narendra Modi during his 15August 2015 address from the Red Fort, in New
Delhi. The action plan of this initiative, is based on the following three pillars:1.
Simplification and Handholding.2. Funding Support and Incentives.3. Industry-Academia
Partnership and Incubation. An additional area of focused relating to this initiative, is to
discard restrictive
StatesGovernment policies within this domain, such as License Raj, Land Permissions
Foreign Investment Proposals, and Environmental Clearances. It was organized by TheDepar
tment for promotion of industry and internal trade (DPI&IT). A startup defined as an entity
that is headquartered in India, which was opened less than seven years ago, and has an
annual turnover less than 25crore (US$3.5 million). Under this initiative, the
government has already launched the I-MADE program, to help Indian entrepreneurs build
1 million mobile appstart-
ups, and the MUDRA Banks scheme (Pradhan Mantri Mudra Yojana), an initiativewhich ai
ms to provide microfinance, lowinterest rate loans to entrepreneurs fromlow socioeconomic
kgrounds. Initial capital of200 billion (US$2.8 billion) has been allocated for this scheme.
The start-up scenario in India has gone a huge makeover, now people are not alien with the
concept of start-ups. Earlier people had no idea what this concept
is all about, thanks tothe rise in media’s encouraging coverage towards start-ups recently. Th
e concept ofstart-up is somehow different
for Indians and not so different for people of developedeconomies. Start-ups are something
to do with new product/process for the entire
marketorfraction of the market. Startups must not be confused with small business, as the big
gest difference being is INNOVATION. Recently government of India haslaunched “Start-
up India” initiative to foster/support and encourage start up efforts in India. The results are
very satisfactory with initiative being accepted with open arms in country, various state
governments have also started the similar efforts. India stands at Avery important cross road,
India stood at number three in overall technology driven stat ups in the world (Top two
positions are held by USA and UK respectively). The very nature of
startupsin India is technology based which is fuelled by young II’s graduates as the patterns s
tart-ups India further suggests, they are undertaken in very unconventional terrain like
medical etc. The important question remains is, how start-ups are shaping the very structure
of economy in India or elsewhere (In similar economies). The overall impact of start-ups is
very visible initially then, only those ideas persist which are smartly implemented. In India
government is constantly trying to create an environment which is both conducive and
optimum for startups. The reason is very simple, start-ups are necessary for the
entrepreneurial and innovative growth of any nation. There are nations which are
smaller than ours and less naturally equipped than ours, but made tremendous growth
and advancements in the field of economy and overall development. The secret of their
success is nothing but an appetite for innovation. If India wants to be in the front lines with
developed nations in the world,
innovationis the key to become so. Fortunately, India is endowed with youngest populationw
hich is primarily required for setting up start-ups. With the growing inclination towards
“Having something of my own” attitude is also helping in bringing new ideas into successful
implementation. India has produced some of the leading start-ups in the world, which
medical etc. The important question remains is, how start-ups are shaping the very structure
of economy in India or elsewhere (In similar economies). The overall impact of start-ups is
very visible initially then, only those ideas persist which are smartly implemented. In India
government is constantly trying to create an environment which is both conducive and
optimum for startups. The reason is very simple, start-ups are necessary for the
entrepreneurial and innovative growth of any nation. There are nations which are
smaller than ours and less naturally equipped than ours, but made tremendous growth
and advancements in the field of economy and overall development. The secret of their
success is nothing but an appetite for innovation. If India wants to be in the front lines with
developed nations in the world,
innovationis the key to become so. Fortunately, India is endowed with youngest populationw
hich is primarily required for setting up start-ups. With the growing inclination towards
“Having something of my own” attitude is also helping in bringing new ideas into successful
implementation. India has produced some of the leading start-ups in the world which are
working as the lighthouse for the rest. The prominent example being OYO Rooms and
Zomato (both catering to a very different market segment and objectives). In short, the start-
up scenario is looking very convincing and bright as the investments is growing in India
start-up from worldwide investing bodies both organized and individuals. The recent
example of such investment being the huge multibillion-dollar investments in various start-
ups functioning in India like Ola and Flipkart. In a way start up era has started in India and it
is the time to give its due push. As it is a known fact that when someone starts a new
enterprise or tries to get into entrepreneurship, they face many problems like finance, land
permissions, environmental clearance, foreign investment proposals, family support etc. It is
one of the much-needed initiative plans of Govt of India. This initiative focuses on filling the
gap in the
economyand its development and has the objective to fire the entrepreneurial blood at the bot
tomlevel. It has brought lot of positivity and confidence among the entrepreneurs of India.
According to PM Narender Modi the start-ups, its technology and innovation is exciting and
effective instruments for India’s transformation. An idea can be converted into a start-up.
Even some times the crisis becomes the opportunity and it gives birth to the start-ups. Many
times, find it worthy. On the other hand, other people take that idea as an opportunity and
mobilize into reality. The main objective of the govt is to reduce the load on the start-ups
hence allowing them to concentrate fully on their business and keeping the low cost of
adherence The
Ministry of Human Resource Development
and the
Department of Science andTechnology
have agreed to partner in an initiative to set up over 75 such startup supporthubs in the
National Institutes of Technology
(NITs), the
Indian Institutes of Information Technology
(IIITs), the
Indian Institutes of Science Education and Research
(IISERs)and
National Institutes of Pharmaceutical Education and Research
(NIPERs). The Reserve Bank of India said it will take steps to help improve the ‘ease of
doing business’ in the country and contribute to an ecosystem that is conducive for the
growth of start-up businesses. Soft Bank, which is headquartered in Japan, has invested US$2
billion into Indian startups. The Japanese firm has pledged to investment US$10 billion.
Google declared to launch startup, based on the highest votes in which the top three startups
will be allowed to join the next Google Launchpad Week, and the final winner could win an
amount of US$100,000inGoogle cloud credits.
Oracle on 12 February 2016 announced that it will establish nine incubation centers.
Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pun, Trivandrum and Vijayawada. The
result of first ever startup state ranking was announced in December 2018 by the Department
of Industrial Policy and Promotion (DIPP) based on the criteria of policy, incubation hubs,
seeding innovation, scaling innovation, regulatory change, procurement,
communication, North-Eastern states, and hill states.
2018 Start-up State Ranking
are as follows:
Best performer: Gujarat
Top performers: Karnataka, Kerala, Odisha, and Rajasthan.
Leader: Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, and Telangana.
o
Aspiring leader: Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, and West Bengal.
Emerging States: Assam, Delhi, Goa, Jammu, & Kashmir, Maharashtra, Punjab, Tamil
Nadu, and Uttarakhand.
Beginners: Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Skim, and Tripura.
Kerala
has initiated a government start-up policy called "Kerala IT Mission" which focuses on
fetching 50 billion (US$700 million) in investments for the state's start-
up ecosystem. It
also founded India's first telecom incubator Start-up village in 2012. The state also matches
the funding raised by its incubator from Central government with 1:1.
Telangana
has launched the largest incubation center in India as "
T-Hub
“. Andhra Pradesh has allocated a 17,000-sq.ft. Technological Research and Innovation Park
as a Research and Development laboratory. It has also created a fund called "
Initial
Innovation
Fund
" Of 100 crore (US$14 million)
for entrepreneurs. The government of
Madhya
Pradesh
has collaborated with the
Small
Industries
Development
Bank
of
India
(SIDBI) to create a fund of 200crore (US$28
million).
Rajasthan
has also launched a
"Start
up
Oasis
" Scheme. In order to promote start-opsin
Odisha
, the state government organized a two-day Start-up Conclave in

Bhubaneswar
on November 28, 2016.
1.3 Startup Company:
A start-up
or start-up is started by individual
founders
or
entrepreneurs
to search for a repeatable and scalable business model. More specifically, a start-up is a
newly emerged
business
venture that aims to develop a viable
business
model
to meet a marketplace, need or problem. Founders design start-ups to
effectively
develop
and
validate
scalable
business
model
. Hence, the concepts of start-ups and entrepreneurship are similar. However, entrepreneurshi
p refers all new businesses, including self-employment and businesses that never intend to
grow big or become registered, while start-ups refer to new businesses that intend to grow
beyond the solo founder, have employees, and intend to grow large. Start-ups face high
uncertainty and do have high rates of failure, but the minority that goon to be successful
companies have the potential to become large and influential. Some start-ups become
unicorns
, i.e. privately held start-up companies
valued
at over$1 billion. According to
TechCrunch
, there were 279unicorns as of March 2018, with most

ofthe unicorns located in China, followed by the United States. The largest unicornsfounded
as of October 2018included
Ant
Financial
Byte
Dance
Uber
Xiaomi
, and
Airbnb
1.4 Here are the 19 plans Modi has for start-ups:1. Self-certification.
The start-ups will adopt self-certification to reduce the regulatory liabilities. The self-
certification will apply to laws including payment of gratuity, labor contract, provident fund
management, water and air pollution acts.
2. Start-up India hub:
An all-India hub will be created as a single contact point for start-up foundations in India,
which will help the entrepreneurs to exchange knowledge and access financial aid.
3. Register through app:
An online portal, in the shape of a mobile application, will be launched to help start-up
founders to easily register. The app is scheduled to be launched on April 1.
4. Patent protection:
A fast-track system for patent examination at lower costs is being concept dualized by the
central government. The system will promote awareness and adoption of the Intellectual
Property Rights (IPRs) by the start-up foundations
5. RS, 10000 CRORE FUND
: The government will develop a fund with an initial corpus of Rs 2,500 crore and a total
corpusof Rs 10,000 crore over four years, to support upcoming start-up enterprises. The Life
Insurance Corporation of India will play a major role in developing this corpus. A committee
of private professionals selected from the start-up industry will manage the fund.
6. National Credit Guarantee Trust Company:
A National Credit Guarantee Trust Company (NCGTC) is being concept dualized with a
budget of Rs 500 crore per year for the next four years to support the flow of funds to start-
ups.
7 NO CAPITAL GAIN TAX
. At present, investments by venture capital funds are exempt from the Capital Gains Tax.
The same policy is being implemented on primary-level investments in start-ups.
8. No Income Tax for three years:
Start -ups would not pay Income Tax for three years. This policy would revolutionize the
pace with which start-ups would grow in the future.
9. Tax exemption for investments of higher value:
In case of an investment of higher value than the market price, it will be exempt from paying
tax
10. Building entrepreneurs:
Innovation-related study plans for students in over 5 lakh schools. Besides, there will also be
an annual incubator grand challenge to develop world class incubators.
11. Atal Innovation Mission:
The Atal Innovation Mission will be launched to boost innovation and encourage talented
youths.
12. Setting Up Incubators:
A Private-public partnership modal is being considered for 35 new incubators and 31

innovation centers at national institutes.
13. Research parks:
The government plans to set up seven new research parks, including six in the Indian
Institute of Technology campuses and one in the Indian Institute of Science campus, with an
investment of Rs 100 crore each.
14. Entrepreneurship in biotechnology:
The government will further establish five new biotech clusters, 50 new bio incubators, 150
technology transfer offices and 20 bio-connect offices in the country.
15. Dedicated program in schools:
The government will introduce innovation-related program for students in over 5 lakh
schools.
16. Legal support:
A panel of facilitators will provide legal support and assistance in submitting patent
applications and other official documents.
17
Rebate
A rebate amount of 80 percent of the total value will be provided to the entrepreneurs on
filing patent applications.
18. Easy rules:
Norms of public procurement and rules of trading have been simplified for the start-ups.
19. Faster exit:
If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions
for their problems. If they fail again, the government will provide an easy way out.
1.5 Entrepreneurship: Entrepreneurship
is the process of designing, launching and running a new

business, which is often initially a
small
business
. The people who create these businesses are called
entrepreneurs
. Entrepreneurship has been described as the "capacity and willingness to develop, organize
and m a n a g e a b u s i n e s s v e n t u r e a l o n g w i t h a n y o f i t s r i s k s i n o r d e r t o
make a
profit
".
Whiledefinitions of entrepreneurship typically focus on the launching and running
of businesses, due to the high risks involved in launching a
start
up
, a significant proportion of start-up businesses have to close due to "lack of

funding, bad business decisions, an economic crisis, lack of market demand—or a
combination of all of these.
A broader definition of the term is sometimes used, especially in the field of econo
mics. In this usage, an Entrepreneur is an entity which has the ability to find and act upon
opportunities to translate inventions or technology into new products: "The entrepreneur is
ableto recognize the commercial potential of the invention and organize the capital
, talent,
and other resources that turn an invention into a commercially viable innovation." Inthis sen
se, the term "Entrepreneurship" also captures innovative activities on the part of
established firms, in addition to similar activities on the part of new businesses.
Entrepreneurship is the act of being an entrepreneur, or "the owner or manager of

a
businessenterprise who, by risk and initiative, attempts to make profits". Entrepreneurs act a
smanagers and oversee the launch and growth of an enterprise. Entrepreneurship is the
process by which either an individual or a team identifies a business opportunity and
acquires and deploys the necessary resource required for its exploitation. Early-19th-century
French economist
Jean
Baptiste
Say provided a broad definition of entrepreneurship, saying that it "shifts

economicresources out of an area of lower and into an area of higher productivity and great
er yield”. Entrepreneurs create something new, something different—
they change or transmute values.
Regardless of the firm size, big or small, they can partake in entrepreneurship opportunities.
The opportunity to become an entrepreneur requires four criteria. First, there must
beopportunities or situations to recombine resources to generate profit. Second,
entrepreneurship requires differences between people, such as preferential access
to
certainindividuals or the ability to recognize information about opportunities. Third, taking
on risk isa n e c e s s a r y . F o u r t h , t h e e n t r e p r e n e u r i a l p r o c e s s r e q u i r e s t h e o r g a n
i z a t i o n o f p e o p l e a n d resources. The entrepreneur is a factor in and the study of
entrepreneurship reaches back to the work of Richard Centillion
and Adam Smith in the late 1 7 t h a n d e a r l y 1 8 t h c e n t u r i e s . However,
entrepreneurship was largely ignored theoretically until the late 19th and early
20thcenturies and empirically until a profound resurgence in business and economics since t
helate 1970s. In the 20th century, the understanding of entrepreneurship owes much to thewo
rk of economist Joseph Schumpeter in the 1930s and other Austrian economists sucha s
Clemenger, Ludwig von Mises and Friedrich von Hayek. According to
Schumpeter, an entrepreneur
is a person who is willing and able to convert a new idea or invention into asucces
sful innovation. Entrepreneurship employs what Schumpeter called "the gale of c r
eative destruction" to replace in whole or in part inferior innovations
a c r o s s m a r k e t s a n d industries, simultaneously creating new products including
new business models. In this way, creative destruction is largely responsible for the
dynamism of industries and long-run economic growth. The supposition that
entrepreneurship leads to economic growth is an interpretation of the residual in
endogenous growth theory and as such is hotly debated in academic economics.
An alternative description posited by Israel Kerzner suggests that the majority of
innovations may be much more incremental improvements such as their placement
of paper with plastic in the making of drinking straws.
Research
method
2.1 Objectives:(A) Meaning:
A research objective is a clear, concise, declarative statement, which providesdirection to

investigate the variables under the study.
The objectives of a research project summarize what is to be achieved by the study.

(B) Characteristics:
Research objective is a concrete statement describing what the research is trying to achieve.
A well-known objective will be SMARTS
– SPECIFIC • M – MEASURABLE. • A – ATTAINABLE. • R – REALISTIC. • T – TIME

BOUND
Research objective should be RELEVANT, FEASIBLE, LOGICAL, OBSERVABLE,

UNEQUIVOCAL & MEASURABLE.
Objective is a purpose that can be reasonably achieved within the expected timeframe and
with the available resources.
The objective of research project summarizes what is to be achieved by the study.
The research objectives are the specific accomplishments the researcher hopes to achieve by
the study
The objectives include obtaining answers to research questions or testing the research
hypotheses.
(C) Objectives of the study are as follows:
1. To study the financial problems faced by the start-ups in India.2. To study the
Women entrepreneurs in India.3. To find out the reasons behind few or limited start-ups in
India.4. To highlight the importance of financing agencies for start-ups in India.5. To
understand the Entrepreneurial Development plan
2.2 Data Collection Method:
The data collected in this research project is totally based on secondary data. The facts and
figures are taken by the different resources.
(A) Meaning:
Secondary data means data that are already available i.e., they refer to the data which
have already been collected and analyses by someone else. When the researcher utilizes
secondary data, then he has to look into various sources from where he can obtain them. In
this case he is certainly not confronted with the problems that are usually associated with the
collection of original data. Secondary data may either be published data or unpublished data.
Usually published data are available in: (a) various publications of the central, state are local
governments; (b)various publications of foreign governments or of international bodies and
their subsidiary organization’s; (c) technical and trade journals; (d) books, magazines and
newspapers; (e) reports and publications of
various associations connected with business and industry, banks, stock exchanges,etc.; (f) re
ports prepared by research scholars, universities, economists, etc. indifferent fields; and (g) p
ublic records and statistics, historical documents, andother sources of published information.
The sources of unpublished data are many;
they may be found in diaries letters, unpublished biographies and autobiographiesand also m
ay be available with scholars and research workers, trade associations, labour bureaus and
other public/ private individuals and organizations.
(B) Advantages and Disadvantages of Secondary Data:
Secondary data is available from other sources and may already have been used in previous
research, making it easier to carry out further research. It is time-saving and cost-efficient:
the data was collected by someone other than the researcher. Administrative data and census
data may cover both larger and much smaller samples of the population in detail.
Information collected by the government will also cover parts of the population that may be
less likely to respond to the census (in countries where this is
optional). A clear benefit of using secondary data is that much of the background work neede
dhas already been carried out, such as literature reviews or case studies. The data may have
been used in published texts and statistics elsewhere, and the
data could already be promoted in the media or bring in useful personal contacts.
Secondary datagenerally have a pre-established degree of validity and reliability which need
not bere-examined by the researcher who is re-using such data. Secondary data can providea
baseline for primary research to compare the collected primary data results toand it can also
be helpful in research design. However, secondary data can present problems, too. The data
may be out of date or in accurate. If using data collected for different research purposes, it
may not cover those samples of the population researchers want to examine, or not in
sufficient detail. Administrative data, which is not originally collected for research, may not
be available in the usual research formats or may be difficult to get access to.
2.3 Women Entrepreneurs in India: Women Entrepreneurs may be defined as the women or a
group of women who initiate, organize and operate a business enterprise. The Government of
India has defined women entrepreneurs as an enterprise owned and controlled by women
having a minimum financial interest of 51 percent of the capital and giving at least51 per
cent of the employment generated in the enterprise to women. Women ‖entrepreneurs
engaged in business due to push and pull factors which encourage women to have an
independent occupation and stands on their own legs. A sense towards independent decision-
making on their life and career is the motivational factor
behindthis urge. With the change of time there is tremendous upliftment in the status of India
nwomen entrepreneur. Women entrepreneurs are gaining a strong hold in most of the
developing countries including India, Brazil etc. Another recent trend is women are
increasingly coming on the fore front in private and government business organizations and
occupying the top positions everywhere-like Indra Nooyi, Chanda Kochhar, Shikha Sharma,
Kiran Mazumdar Shaw, Naina Lal Kidwai, etc. Again, there is increased awareness and
women entrepreneurs are increasingly finding easy to finance their business. Women
entrepreneurs are also taking up issues of environmental changes too.
(A)Status of women entrepreneurs in India:
Entrepreneurship is considered as one of the most important factors contributing to the

development of society. India has been ranked among the worst performing countries in
thearea of women entrepreneurship in gender-focused global entrepreneurship survey,
released in July 2013 by PC maker Dell and Washing ton-based consulting firm Global
Entrepreneurship and Development Institute (GEDI). Of the 17 countries surveyed India
ranks16th, just above Uganda. Countries like Turkey, Morocco and Egypt has outperformed
India. Status of higher education in women in India came out to be lower than most countries
in the world. At present, women entrepreneurial role is limited in the large-scale industries
and technology-based businesses. But even in small scale industries, the
women’s participation is very low. As per the third all-India census of Small-Scale
Industries, only 10.11%of the micro and small enterprises were owned by women,
and only 9.46%
of them were managed bywomen. While the number of women operating their own business
is increasingglobally, women continue to face huge obstacles that stunt the growth of their
businesses, such as lack of capital, strict social constraints, and limited time and skill.
recent trend is women are increasingly coming on the fore front in private and government
business organizations and occupying the top positions everywhere-like Indra Nooyi,
Chanda Kochhar, Shikha Sharma, Kiran Mazumdar Shaw, Naina Lal Kidwai, etc. Again, there
is increased awareness and women entrepreneurs are increasingly finding easy to finance
their business. Women entrepreneurs resoaking up issues of environmental changes too.
Recent trend is women are increasingly coming on the fore front in private and government
Reasons for becoming Women Entrepreneurs: The glass ceilings are shattered and women
are found indulged in every line of business. The entry of women into business in India is
traced out as an extension of their kitchen activities, mainly 3P ‘s, Pickle, Powder and
Pappas. But with The spread of education and passage of time women started shifting from
3P Reasons for becoming Women Entrepreneurs: The glass ceilings are shattered and
women are found indulged in every line of business. The entry of women into business in
India is traced out as anextensionof their kitchen activities, mainly 3P ‘s, Pickle, Powder and
Pappas. But with the spread of education and passage of time women started shifting from
3P recent trend is women are increasingly coming on the fore front in private and
government business organizations and occupying the top positions everywhere-like Indra
Nooyi, Chanda Kochhar, Shikha Sharma, Kiran Mazumdar Shaw, Naina Lal Kidwai, etc.
Again, there is increased awareness and women entrepreneurs are increasingly finding easy to
finance their business. Women entrepreneurs resoaking up issues of environmental changes
too. Recent trend is women are increasingly coming on the fore front in private and
Nooyi, Chanda Kochhar, Shikha Sharma Kiran Mazumdar Shaw, Naina Lal Kidwai, etc. Again,
there is increased awareness and women entrepreneurs are increasingly finding easy to
finance their business. Women entrepreneurs resoaking up issues of environmental changes
too. (A
recent trend is women are increasingly coming on the fore front in private and government
(Aricent trend is women are increasingly coming on the fore front in private and recent trend
is women are increasingly coming on the fore front in private and
Nooyi, Chanda Kochhar, Shikha Sharma, Kiran Mazumdar Shaw, Naina Lal Kidwai, etc.
Again, there is increased awareness and women entrepreneurs are increasingly finding easy to
finance their business. Women entrepreneurs are also taking up issues of environmental
changes too.
(B)Reasons for becoming Women Entrepreneurs:
The glass ceilings are shattered and women are found indulged in every line of business. The
entry of women into business in India is traced out as an extension of their kitchen activities,
mainly 3P ‘s, Pickle, Powder and Pappas. But with the spread of education and passage of
time women started shifting from 3P ‘s to
modern 3E ‘s i.e., Energy, Electronics and Engineering. Skill, knowledge and adaptability in
business are the main reasons for women to emerge into business ventures. Women
Entrepreneur is a person who accepts challenging role to meet her personal needs and
become economically independent. A strong desire to do something positive is an inbuilt
quality of entrepreneurial women, who is capable of contributing values in both family and
social life. With the advent of media, women are aware of their own traits, rights and also the
work situations. The challenges and opportunities provided to the women of digital era
are growing rapidly that the job seekers are turning into job creators. Many women
starta business due to some traumatic event, such as divorce, discrimination dueto pregnancy
or the corporate glass ceiling, the health of a family member, or economic reasons such as
a layoff. But a new talent pool of women entrepreneurs is forming today, as more women opt
to leave corporate world to chart their own destinies.
They are flourishing as designers, interior decorators, exporters, publishers, garment
manufacturers and still exploring new avenues of economic participation.
(C)Role of Government to develop Women Entrepreneurs in India:
Development of women has been a policy objective of the government sincein dependence.
Until the 70s the concept of women development was mainly welfare oriented. In 1970s,
there was a shift from welfare approach to development approach that recognized the
mutually reinforcing nature of the process of development. The 80s adopted a multi-
disciplinary approach with an emphasis on three
core areas of health, education and employment. Women were given priorities in all the
sectors including SSI sector. Government and non- government bodies have paid increasing
attention to women economic contribution through self- employment and industrial
ventures. The
First
Five
Year
Plan
(1951
56)
envisaged a number of welfare measures for women. Establishment of the Central Social
Welfare Board, organization of Mahala Mandal’s and the Community Development
Programmed were a few steps in this direction.
In
the
second
Five-Year
Plan
(1956
61),
the empowerment of women was closely linked with the overall approach of intensive
agricultural development programmers.
The
Third
and
Fourth
Five
Year
Plans
(1961
66
and
1969
74
) Supported female education as a major welfare measure.
The
Fifth
Five
Year
Plan
(1974
79)
emphasized training of women, who were in need of income and protection. This plan
coincided with International Women ‘s Decade and the submission of Report of the
Committee on the Status of Women in India. In1976, Women ‘s welfare and Development
Bureau was set up under the Ministry of Social Welfare.
The
Sixth
Five
Year
Plan
(1980
-
85)
saw a definite shift from welfare to development. It recognized women ‘s lack of access to
resources as a critical factor impending their growth. Steps taken in Seventh Five-Year Plan:
In
the
seventh
five-year
plan
, a special chapter on the “Integration of women in development” was introduced by

Government with following suggestion. (I) Specific target group: It was suggested to treat
women as a specific target group in all major development programs of the country. (ii)
Arranging training facilities:
It is also suggested in the chapter to devise and diversify vocational trainingfacilities for
women to suit their changing needs and skills. (iii) Developing new equipment’s:
Efforts should be made to increase their efficiency and productivity through appropriate
technologies, equipment’s and practices. (iv) Marketing assistance: It was suggested
to provide the required assistance for marketing the products produced by women
entrepreneurs. (v) Decision-making process: It was also suggested to involve the women in
decision-making process.
Steps taken by Government during Eight Five-Year Plan:
The Government of India devised special programs to increases employment and income-
generating activities for women in rural areas. The following plans are lunched during the
Eight-Five Year Plan:(I) Prime Minister Rojgar Yojana and EDPs were introduced to
develop entrepreneurial qualities among rural women. ii) ‘Women in agriculture’ scheme
was introduced to train women farmers having small and marginal holdings in agriculture
and allied activities. (iii) To generate more employment opportunities for women KVIC took
special measures
in remote areas.(iv) Women co-operatives schemes were formed to help women in agro-
basedindustries like dairy farming, poultry, animal husbandry, horticulture etc. with full
financial support from the Government.(v) Several other schemes like integrated Rural
Development Programs (IRDP),Training of Rural youth for Self-employment (TRYSEM)
etc. were started to alleviated poverty.30-40% reservation is provided to women under these
schemes.
Steps taken by Government during Ninth Five-Year Plan:
Economic development and growth are0 not achieved fully without the development of
women entrepreneurs. The Government of India has introduced the following schemes for
promoting women entrepreneurship because the future of small-scale industries depends
upon the women-entrepreneurs.
Trade Related Entrepreneurship Assistance and Development(TREAD)scheme was lunched

by Ministry of Small Industries to develop women entrepreneurs in rural, semi-urban and
urban areas by developing entrepreneurial qualities.(b) Women Comkp0onent Plant, a
special strategy adop0ted by Government to provide assistance to women entrepreneurs.(c)
Swarna Jayanti Gram Swarga Yojana and Swarna Jayanti Sekhar RozgarYojanawere
introduced by government to provide reservations for women and encouraging the To start
their ventures.(d) New schemes named Women Development Corporations were introduced
to help women entrepreneurs in arranging credit and marketing facilities.(e) State
Industrial and Development Bank of India (SIDBI) has introduced following schemes to
assist the women entrepreneurs.
Mahila Udyam Nidhi(ii) Micro Cordite Scheme for Women(iii) Mahila Vikas
Nidhi(iv)Women Entrepreneurial Development Programmed(v)Marketing Development
Fund for Women4. Consortium of Women entrepreneurs of India provides a platform to
assist the Women entrepreneurs to develop new, creative and innovative techniques of
production, finance and marketing. There are different bodies such as NGOs, voluntary
organizations, Self-help groups, institutions and individual enterprises from rural and urban
areas which collectively help the women entrepreneurs in their activities. 5. Training
Programmers’ following training schemes specially for the self-employment of women
are introduced by government:(I) Support for Training and Employment Programmed of
Women (STEP). (ii) Development of Women and Children in Rural Areas (DWCRA).
(iii)Small Industry Service Institutes (SISIs)(iv) State Financial Corporations(v) National
Small Industries Corporations(vi) District Industrial Centre’s (DICs)6. Mahila Vikas Nidhi:
SIDBI has developed this fund for the entrepreneurial development of women especially inru
ral areas. Under Mahila Vikas Nidhi grants loan to women are given to start their venture in
the field like spinning, weaving, knitting, embroidery products, block printing, handlooms
handicrafts, bamboo products etc.7. Rastriya Mahila Koshkin 1993, Rastriya Mahila Kosh
was set up to grant micro credit to pore women at reasonable rates of interest with very low
transaction costs and simple.
P u n j a b
4 7 9 1 1 6
1 8 3 3 . 7
7 M a h a r a s
h t r a 4 3 3 9
1 3 9 4 3 2 . 1
2 G u j r a t
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a k a 3 8 2 2 1
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Promotional Organizations to help Women Entrepreneur: Federation of Indian Women

Entrepreneur
–The FIWE was started in 1993 at the

fourthinternational conference of women entrepreneurs held in December at Hyderabad. Its
mainfunction was to establish networking and to provide a package of service to womenentre
preneurs’ association in India. Association of women entrepreneurs in different states are
affiliated to FIWE, so that they can have networking.
Federation
of
Ladies
Organization
- FLO was formed in 1983 as a national level forum

forwomen with the objective of women empowerment. FLO has spectrum of activities in ord
erto promote women entrepreneurship and professional excellence. World Association of
Women Entrepreneurs - The world association of Women entrepreneurs Isan international
women organization. It aims is to bring together all women who are qualified to take up an
active and leading part in employers’ organization along with their male
colleagues. National Women Development Corporation - NWDC serves all women
especially in rural and urban poor areas through promotion of women development in rural
and urban areas. Association of Women Entrepreneurs of Karnataka - AWAKE was
established in 1983 and has
been recognized worldwide. It is an affiliation of Women World Bank in New York. It is one
of India ‘s institution for women totally devoted to entrepreneurship
development. Women’sIndia trust (WIT) - The trust was established in 1968 by KamilaTyab
ji. WIT center atPanvel, 40kms, from Mumbai. The Kamila trust UK was setup in the early
1990‘s with an aim of selling in England items produced by WIT family of women in India.
Encourage by its London, WIT expanded the export activities to Australia, Europe, Germany
from 1995 onwards. WIT had plans to launch computer training for women
Consortium
of
women
entrepreneur
of
India
(CWEI)
- In the context of the opening up ofthe economy and the need for up-gradation of technolog
y, the consortium of womenentrepreneur of India started in year 2001 provides a common pl
atform to help womenentrepreneurs in finding innovative techniques of production
marketing and finance.
Self
help
groups
(SHGs)
- A SHGs’ is a small, economical homogeneous and significant group of

ruraland urban poor, voluntarily formed to save and mutually agreed to contribute to commo
n fundto be lent to its members as per group decision.
2.4 Reasons behind limited start-ups in India:
The failing-start-up problem in India has become a big issue in the start-up
ecosystem. As per statistics, majority of entrepreneurs fail while trying to establish
their business. After studying failed start-
ups in India, I have compiled a list of several major reasons behindtheir failure. From the
lack of talent to changing market dynamics, these top reasons can become a night mare for
any entrepreneur who wants to start a new venture in the ever-changing Indian-market.
Not Understanding the Needs of the Society:
Most successful business ideas arise from needs of the society. Since high school, teenagers
become a part of the competition to get the best college and eventually, the best job.
Due to competition, most people spend countless hours in studies and disconnect themselves
from society. The divide between the tech-driven lifestyle of millennia’s and lack ofundersta
nding for society’s demands contribute towards failing business models. Theeducational
pressure is one of the many reasons that experts believe to be the source for lack of
understanding between people and society.
Lack of fresh and Innovative ideas:
Almost every niche market in India is suffocated with multiple startups trying to
providesolutions to the same problem. This calls for entrepreneurs to be inventive and push t
he boundaries using innovation to stand out. Due to competition, the urge to grab market
share makes an entrepreneur vulnerable to mistakes by producing the wrong product.
Lack of People with Hands-on Experience:

The startup ecosystem in India has a dearth of talent due to issues like brain drain. Due to the
competition among startups, the idea of training a new employee goes right out ofthe windo
w as time is a critical factor. Nobody wants to spend resources training the newcrop when yo
u can get experienced personnel. This has created a void of experienced professionals, who c
an contribute from the first day itself. By hiring amateurs, which most Indian startups do,
they fail to provide a better product, which eventually leads toa startup’s demise.
Limited Access to Funding:

Entrepreneurs have to fight hard to get funding for their startups nowadays. To get started,
theyuse their savings or take money from friends and family. Very few are lucky to get angel
funding. Moreover, venture capitalists tend to finance only those business ideas that can prov
ide a good return on investment.
This results in majority of young entrepreneursmissing VC funding. As a result, most Indian
entrepreneurs are not able to continue theirventure due to lack of funding.
Lack of Understanding between Technical and Management Teams
There is a big difference between a technical graduate and a management graduate. For a
startup to succeed, complete understanding is need between the two. The lack of technical
know-how among management graduates and the lack of managerial knowledge among
technical graduates is one of the common reasons behind the failure of startups in India.
Offering very High salaries
Startups in India face a serious shortage of talent pool. To bring experienced

professionals on board, they offer high salaries to keep the startup in safe hands. However,
offeringhigh salaries to employees makes the startup eat in to its resources. The shortage of f
undsleads to instability within the startup, which leads to bad decisions.
Lack of Interpersonal and Soft Skill
Most entrepreneurs in India are found to lack interpersonal and soft skills. Due
to poorcommunication skills, an entrepreneur increases the failure rate of his/her startup. The
lack of such essential skills makes a startup not able to compete in international market.
Also,
entrepreneurs face a lot of difficulty in pitching their business ideas to a venture capitalist
with poor communication.
Not Able to Address the Issue of Scalability
Over one-third of Indian population is on the internet. Startups that have successfully built a
product based on the needs of the society and are running profitably, will face the issue of
scalability. In such cases, lack of awareness or no mentor-ship becomes
thedeciding factors behind a startup’s failure. Due to in experience, entrepreneurs fail tounde
rstand the changing needs of their product’s growing consumer base.
Unaware of Changing Market Dynamics:
Market dynamics keep changing with new trends becoming outdated in no time. Before a
startup knows what hit them, it is often too late to react and change the strategy.
Suchscenarios arise when a startup’s core team is unable to make timely decisions due to lac
kof industry insight, not conducting thorough research about the niche market, targeting aide
market segment, and more.
Every founder cannot be the CEO:
There can be only one CEO, even if there are many founders. Only one person sets the
vision, and the others execute after there is broad agreement over what needs to be done. Too
many people trying to display the big picture is a waste of time and shows role ambiguity.
“Too many cooks spoil the broth” comes in when everybody is the boss. Direction comes
from a single person and that position must be stable, secure, and given space to experiment,
with a reasonable error margin.
Meritocracy:
This should be ruthlessly executed from the top down. The agenda is to build a business and
not protect anyone. Right people doing the right task is the only way to build a business.
With a well-laid appraisal mechanism, talent must be timely rewarded and given a greater
platform so that they feel as much as a part of the venture as the founders. It takes 8-10 years
to build a good/great business, and without a performing team which sticks around, it is
simply not possible.
2.5 To highlight the importance of financing agencies in India:
A start-up is a reflection of an out of the box idea which is put into execution for the
generation of revenues through the sale of products and services that are unique and fills the
gap of the consumer needs that are in the market. India is fifth in the world in the aspect of
the startups with 3100 startups functioning since the last 3-4years. India has been seeing a
trend of risk-taking entrepreneurs who are willing to sacrifice huge opportunity costs for
startups. But, according to a study, more than94% of the business leads to the falling
scenario due to the
lackof sufficient funds. Lack of funding is a common barrier seen in the startup world.
The known example of the Saurav Karaka’s startup SASLAB technologies in 2014 was
due tithe lack of funding. The generation of revenue is not a piece of cake without the
constant fuel offending to the business. So, most of the times this inquisitive question hits the
mind of every other entrepreneur: How my startup should be funded? The funding of the
business also depends on the nature of the business and the type of the business. Some
startups that are unique but the idea holds a lot of risk for the business the funding becomes
tough. The business can be funded through various means and ways in India. Here, is a guide
that can make you startup grow by leaps and bounds through the proper source of funding.
(A) Venture Capital:

Venture Capital is money provided by professionals who invest and manage
young rapidlygrowing companies that have the potential to develop into significant economi
ccontributors. According to SEBI regulations, venture capital fund means a fund established
in
theform of a company or trust, which raises money through loans, donations, issue of securiti
esor units and makes or proposes, to make investments in accordance with theseregulations.
The funds so collected are available for investment in potentially highly profitable
enterprises at a high risk of loss. A Venture Capitalist is an individual or a company who
provides. Investment Capital, Management Expertise, Networking & marketing support
while funding and running highly innovative & prospective areas of products as well as
services. In India, the Venture Capital Funds can be categorized into the following groups:
Promoted by Public Banks: These type of Venture Capitalist funds is promoted by Public
Banks’s Capital Markets Ltd and Can bank Venture Capital Fund are some examples of
these kinds of VC funds. Promoted by the Central Government controlled development
finance institutions: This group contains Venture Capital Funds that are promoted by
development finance institutions that are controlled by the Central Government of
the country. The examples are IFCI
VentureCapital Funds Ltd. (IFCI Venture) and SIDBI Venture Capital Limited (SVCL).
Promoted by State Government Controlled development finance Institutions: This group
includes Venture Capital Funds which are promoted by development finance institutions
controlled bistate government. Some of the famous examples are: Hyderabad Information
Technology Venture Enterprises Limited (HITVEL), Kerala Venture Capital Fund Private
Limited, Gujarat Venture Finance Limited (GVFL), Punjab InfoTech Venture Fund.
Overseas Venture Capital Funds: This group comprises of Venture Capital funds
from outsideIndia. Like: BTS India Private Equity Fund Ltd., Walden International Investme
ntGroup, SEAF India Investment and Growth Fund. Promoted by Private Sector Companies:
This category consists of Venture Capital funds promoted by private Sector Companies.
Like: Infinity Venture India Fund, IL&FS Trust Company Limited (ITCL). Your pitch
is crucial to obtaining funding. Sequoia, one of the most successful VC
firms onthe planet, stresses, “you need to convey the main reasons why an investor shouldlo
ve your business in the first 5 minutes.” Sequoia partners state you can do this in three
simple steps, which are:Explain what’s changed. Detail the innovation, industry shift, or
problem that presents substantial opportunity for your company.
Explain what you do. In one sentence, show how your company can capitalize onthis
opportunity. Explain the facts. Get to your company’s story and financials quickly.
Layout theopportunity with numbers. Discuss the team and their abilities and experience.
(B)Bootstrapping:
Bootstrapping or in layman terms is the self-funding of your startup financing when you are
an immature entrepreneur and don’t get any support from any bank or any other financial
source unless you hold a strong plan to execute the business along with a sure guarantee of
growth of the business. Also, one of the ways to start funding the business is that the source
of the funding is flexible as your borrowing from your friends and family. You can borrow
the money at low-interest rates and also can avail the benefit of not being answerable to
anyone. At the maturity stage of the business, this is considered as an edge in front of
the investors
asthey consider it as a good point for the startups that have low requirements. But, not
advisable to startups who are in need have vigorous funding since day 1 for their operations.
(C)Crowd Funding:
One of the developing sources of finance for your start-up is to avail the finance from the
public. The process works in an interactive way wherein an entrepreneur pitches his business
idea Infront of the layman on a platform where he orients them about his business,
the process and how revenues would be generated along with the seed capital amount and
where would the amount be invested into. The crowd then reverts the pitch in the form of
donation or form of pre-
buyingorders for the entrepreneur. This type of sourcing not only full-fills the need of the
entrepreneur but also generates an audience for him who are willing to fund his idea as well
as support it giving a boost for the business in the initial years. This also grabs the attention
of the venture capitalists few years down the timeline and would be interested in funding
your business by looking at the success of your campaign and your risk.
(D)Angel Investors:
Angels are generally wealthy individuals or retired company executives who invest directly
in small firms owned by others. They are often leaders in their own field who not
only contribute
their experience and network of contacts but also their technical and/or management
knowledge. Angels tend to finance the early stages of the business with investments in the
order of $25,000to $100,000. Institutional venture capitalists prefer larger investments, in the
order of$1,000,000.
In exchange for risking their money, they reserve the right to supervise the company’s
management practices. In concrete terms, this often involves a seat on the board of directors
and an assurance of transparency. Angels tend to keep a low profile. To meet them,
youhave to contact specialized associations or search websites on angels. The NationalAngel
Capital Organization (NACO) is an umbrella organization that helps build capacity for
Canadian angel investors. You can check out their member’s directory for ideas about who
to contact in your region.
(E)Incubators & Accelerators:
Incubators and accelerators are one of the other options when you’re looking for an initial
start-up investment. They are basically the programs for a short span of time that help
the business to grow and nurture also with to provide them with other mentors and
connections for the benefit. Incubators are basically the programs where they provide you
with an in-house space and equipment with their funding to run your start-up against stakes
going as high as up to 20%. On the other hand, accelerators are the programs with a short
span of time where you are assigned a small seed capital along with a return of a large
mentor network against the stakes of 2-10% of your business. Thus, incubators are like your
parents who nurture you and the accelerators are the programs which give you huge
opportunities. India holds some popular names of Amity Innovation Incubator & Angel
Prime.
(F)Government Programs:
The government is also providing incentives for the startups and to promote them. The
government of India passed the startup fund in the union budget of 2014-15which is valued
at10,000 crores for Indian startups. There are more programs launched by the government to
take the benefit such as the Bank of Ideas and Innovations by the program that will support
the new product ideas. There are also government programs wherein you need no collateral
security against the loan you borrow for your startup under the name of Credit
Guarantee Fund Trust for Micro and Small Enterprises. The government also started with
MUDRA with an amount of20,000 crores to sanction loans to startup once you clear the
criteria. There are also institutions who take lower interest rates as compared to the market.
The awareness is a parameter if you are applying for loan through the government programs.
(G) High Net-Individuals:
Lastly, our final source of funding is the High Net-worth individuals who are individualswit
h ample number of financial resources for your startup. These individuals arehaving their
existing business and are looking for opportunities to invest into your business with their
resources for the time span of 1-3. After this time span, they expect the amount of the
investment to be twice or thrice during this period. They mainly invest in those businesses
which are having the highest caliber level to sustain in the market and generate good revenue
streams in short span of time. The first advantage of this type of funding that you can design
a custom investment based on the funds you need which give you an edge. Lastly, the high
net-worth individuals charge you lower fees.
(H)Bank Loans:
This might probably be the first option when you have an idea of your own start-up. Banks
offer loans to the entrepreneurs who are eligible and capable of carrying out a sustainable
and stable business project. For the sanction of the loan, the bank takes into consideration the
business model, the valuation of various inventories and the project report along with other
documentation. But now the process is hassle free and without any collateral. Under all the
banks there are 7-8 different types of loans for the SME Business. But the only thing that
needs to be taken care of is the timely repayment of the amount. The funding done by the
bank has
got benefits such as the profit or loss remains with you along with the proper procedure and
framework of the banks. Also, they are available every and charge less as compared to
venture capitals i.e. 13-17%.
(I) Friends and Family:
One of the best places to raise funds is from your own house. As your family is well aware
of your talents, they will be willing to support you regardless of what you want to do. Family
and friends are the only ones who know your potential and will be willing to give you money
to start your business. This may seem like a great way of gaining investment partners, but
everything has its drawbacks. Acquiring loans or investment form family or friends may be
advantageous to some businesses as they have faith in your talents and your success. But for
others that require expert assistance or guidelines, angel investors are the Bestway as your
family might not have those experiences which are needed. This may be a good way for you
to raise money as they love and care for you but it is not fun when you lose it as it may affect
your relationship with that person forever. A good way of raising funds from your family
may be if you choose those who have the knowledge of business and its risks while
investing. Regardless of this fact, it is important to behave like a professional with them, and
while they are considering to invest, you should lay out all the risks involved in the
investments they can decide at first.
2.6 Entrepreneurship Development Plan:
Entrepreneurship is the process of setting up one’s own business as distinct

from pursuing anyother economic activity, be it employment or practicing some profession.
The personwho set-up his business is called an entrepreneur. The output of the process, that i
s, the business unit is called an enterprise. It is interesting to note that entrepreneurship
besides providing self-employment to
theentrepreneur is responsible to a great extent for creation and expansion of opportunities fo
rthe other two economic activities, that is, employment and profession. (Can you thinkwhy
and how?) Further, each business gives rise to other businesses– the suppliers of raw
materials and components, service providers (be
it transport, courier, telecom, distributormiddlemen and advertising
firms, accounting firms and advocates etc. And, in the process, entrepreneurship
becomes crucial for overall economic development of a nation.
Given its important role in the overall scheme of economic development, it isinteresting
to note that not many persons opt for a career in entrepreneurship. Traditionally, it was
believed that entrepreneurs are born. No society can wait for the chance of ‘birth’ of
entrepreneurs to pursue its developmental plans. In fact, plans for economic development
would bear little fruit unless entrepreneurship development is regarded as a deliberate
process of making people aware of entrepreneurship as a career at an early age and creating
situations where they may actually make a choice to become entrepreneurs. When you make
this choice, you become a job-provider rather than a job-
seeker, besides enjoying a host of otherfinancial and psychological rewards. Taking to entrep
reneurship is surely more a matter ofaspiring to become an entrepreneur rather as being born
as one.
Concept of Entrepreneurship:
You are aware that entrepreneurship is regarded as one of the four major factors of
production, the other three being land, lab our and capital. However,
it should surprise you that as regards its French origin, the term ‘entrepreneurship’ (derived
from the verb
‘entreprende’meaning ‘to undertake’) pertained not to economics but to undertaking of milita
ryexpeditions. So is true of many terms in management such as strategy (a course ofaction to
beat the competition, the ‘enemy’) and logistics (movement of men and machinesfor timely
availability), etc. Historically, as wars are followed by economic reconstruction, it should be
no surprise that military concepts are used in economics and management. It may be pointed
out that whereas the wars are rare and far between, in today’s competitive world,
entrepreneurs wage wars every day. There is a tremendous pressure to continually develop
new products, explore new markets, update technology and devise innovative ways of
marketingand so on. The term ‘entrepreneur’ was first introduced in economics by the early
18thcentury French economist Richard Cantillon. In his writings, he formally defined theentr
epreneur as the “agent who buys means of production at certain prices in order to sell
the produce at uncertain prices in the future”. Since then, a perusal of the usage of the term
in economics shows that entrepreneurship implies risk/uncertainty bearing; coordination of
productive resources; introduction of innovations; and the provision of capital. We would
like to define entrepreneurship as a systematic, purposeful and creative activity of identifying
a need,mobilising resources and organizing production with a view to delivering value to the
customers, returns for the investors and profits for the self in accordance with the risks and
uncertainties associated with business. This definition points to certain characteristics of
entrepreneurship that we turn our attention to.
Characteristics of Entrepreneurship
:n the SVO formulation of the concepts of
entrepreneur, entrepreneurship and enterprise,we saw that entrepreneurship is about the proc
ess of setting up a business. One cannothelp but marvel at the beauty of the process: how
does one first of all decide to choose own
business as a career; how does one sense a market opportunity; how does one muster up
courageto embark upon it, and mobilise there quisite resources, etc.; so much so that
recourse toentrepreneurship, in common parlance, is considered as an exclusive preserve of a
few giftedindividuals. In the following paragraphs, our effort would be to establish
entrepreneurship as acareer that you should aspire for. Remember, resources may be limited,
aspiration need not be.So, you can aspire for something greater, bigger than your present
status and resources. And starttoday. Remember, aspiration means desire multiplied by
action.
1.Systematic Activity:
Entrepreneurship is not a mysterious gift or charm and something that happens by chance! It
isa systematic, step-by step and purposeful activity. It has certain temperamental, skill
and otherknowledge and competency requirements that can be acquired, learnt and develope
d, both by formal educational and vocational training as well as by observation and
workexperience. Such an understanding of the process of entrepreneurship is crucial for
dispelling themyth that entrepreneurs are born rather than made.
2. Lawful and Purposeful Activity:
The object of entrepreneurship is lawful business. It is important to take note of this as onem
ay try to legitimise unlawful actions as entrepreneurship on the grounds that just
asentrepreneurship entails risk, so does illicit businesses. Purpose of entrepreneurship is
creation of value for personal profit and social gain.
3. Innovation:
From the point of view of the firm, innovation may be cost saving or revenue-enhancing. If
itdoes both it is more than welcome. Even if it does none, it is still welcome as innovation
must become a habit! Entrepreneurship is creative in the sense that it involves creation of
value.
Youmust appreciate that in the absence of entrepreneurship ‘matter’ does not become a“reso
urce.” By combining the various factors of production, entrepreneurs produce goodsand
services that meet the needs and wants of the society. Every entrepreneurial act
result inincome and wealth generation. Even when innovations destroy the existing industrie
s,for example, zerox machines destroyed carbon paper industry, mobile telephony threatens
landline/ basic telephony, net gains accruing to the economy lend
such entrepreneurial actionsas commendable as the acts of creative
destruction. Entrepreneurship is creative also inthe sense that it involves innovation- introduc
tion of new products, discovery of newmarkets and sources of supply of inputs,
technological breakthroughs as well as introduction ofnewer organisational forms for doing
things better, cheaper, faster and, in the present context, ina manner that causes the
least harm to the ecology/environment. It
is possible thatentrepreneurs in developing countries may not be pioneering/innovative in int
roducing path breaking, radical innovations. They may be the first or second adopters of
technologiesdeveloped elsewhere. That does not make their achievement small. For imitating
technologies from developed world to the indigenous setting is quite challenging. A ladyentr
epreneur wanting to introduce thermal pads for industrial heating faced
tremendousreluctance form the owners of chemical and sugar mills despite the established
superiority of her products over the conventional heating of the vessels by burning of
wood/coke or using LPG.Moreover, there is no need to suffer from “it was not invented
here” complex–there is no need toreinvent the wheel. The global electronics major, Sony did
not invent the transistor! It used thetransistor to build entertainment products that are world
leaders.
4. Organisation of Production:
Production, implying creation of form,

place ,time personal utility, requires thecombined utilisation of diverse factors of production,
land, labour, capital and technology.Entrepreneur, in response to a perceived business opport
unity mobilises these resourcesinto a productive enterprise or firm. It may be pointed out that
the entrepreneurmay not be possessing any of these resources; he may just have the ‘idea’
that he promotesamong the resource providers. In an economy with a well-
developed financial system, he hasto convince just the funding institutions and with
the capital so arranged he may enter intocontracts of supply of equipment, materials,
utilities(such as water and electricity) andtechnology. What lies at the core of organization of
production is the knowledge aboutavailability and location of the resources as well as the
optimum way to combine
them. Anentrepreneur needs negotiation skills to raise these in the best interests of theenterpr
ise. Organisation of production also involves product development and development ofthe
market for the product. Besides, entrepreneur may be required to develop even the sources of
supply of requisite inputs. For example, whether it is a matter of putting together

an automobilemanufacturing unit or manufacture of burger/pizza, besides cultivating a mark
et anddeveloping products to suit its tastes and preferences, there would be a need to develop
a pool ofsuppliers of the diverse components or elements that go into their manufacture.
5. Risk-taking:
As the entrepreneur contracts for an assured supply of the various inputs for his project,
heincurs the risk of paying them off whether or not the venture succeeds. Thus, landowner
gets thecontracted rent, capital providers gets the contracted interest, and the workforce gets
thecontracted wages and salaries. However, there is no assurance of profit to the
entrepreneur.
Itmay be pointed out that the possibility of absolute ruin may be rare as theentrepreneur does
everything within his control to de-risk the business. For example, he mayenter into prior
contract with the customers of his production. So much so that he may just
becontract manufacturer or marketer of someone else’s products! What is generally implied
byrisk taking is that realised profit may be less than the expected profit. It is generally believ
ed that entrepreneurs take high risks. Yes, individuals opting for a career inentrepreneurship
take a bigger risk that involved in a career in employment or practice of a profession as there
is no “assured” payoff. (See Box above) In practice, for example, when a person quits a job
to start on his own, he tries to calculate whether he or she would be able toearn the same
level of income or not. To an observer, the risk of quitting a well-entrenched and promising
career seems a “high” risk, but what the person has taken is a calculated risk. Thesituation is
similarly to a motorcyclist in the ‘ring of death’ or a trapeze artist in circus. While
thespectators are in the awe of the high-risk, the artists have taken a calculated risk
given theirtraining, skills, and of course, confidence and daring. It is said that the entrepreneu
rsthrive on circumstances where odds favouring and against success area even, that is 50:50s
ituations. They are so sure of their capabilities that they convert 50% chances into
100%success. They avoid situations with higher risks as they hate failure as anyone would
do; theydislike lower risk situations as business ceases to be a game/fun! Risk as such more
than afinancial stake, becomes a matter of personal stake, where less than
expected performance causes displeasure and distress. The characteristics of
entrepreneurshipdiscussed as above
apply in diverse contexts, so does the usage of the term, viz.,
Agricultural/Rural Entrepreneurship, Industrial entrepreneurship, Techno-preneurship,

Net preneurship, Green/Environmental or Eco-preneurship,
Intra-corporate/firm or Intra- preneusrhip and Social entrepreneurship. In fact,
entrepreneurship has come to be regardedas a ‘type of behaviours’, whereby one,(i) rather
than becoming a part of the problem, proactively tries to solve it; (ii) uses personal creativity
and intellect to develop
innovativesolutions; (iii) thinks beyond resources presently controlled in exploiting the emer
gingopportunities or attending to the impending problems; (iv) has the conviction to
convince othersof one’s ideas and seek their commitment towards the project; and (v) has
the courage of heartto withstand adversities, persist despite
setbacks and be generally optimistic.
Relations between Entrepreneurship and Management:
Entrepreneurship is about business start-ups and renewals. That is, it appears at the
time ofstarting a new business, disappears for some time in the course of starting theventure
as an on-going business and reappears in case there is a need for introducing changes
in product, market, technology, structure and so on. In fact, it is said that everyone is
anentrepreneur when he actually ‘carries out new combinations,’ and loses that character as
soon ashe has built up his business, when he settles down to running it as other people runthe
ir businesses. In developed countries, the distinction between the entrepreneurial focus onstar
t-up sand managerial focus on routine is so sharp that it is argued that once the
project hasreached a level of maturity, the entrepreneurs must move out and the managers
must come in.In developing countries, however, the concept of owner-manager seems more
apt forentrepreneurship as the entrepreneur remains attached even to the day-to-
day operations of theventure. In fact, their lacking in managerial skills is often forwarded as t
he cause of business failures. Just as managers are expected to play entrepreneurial roles in
the times ofneed, likewise the entrepreneurs must also demonstrate managerial abilities for
the success oftheir ventures. Irrespective of whether the entrepreneurs pave way for the
managers or theythemselves assume the managerial responsibilities, it is possible to
distinguish between theterm’s entrepreneurship and management.
Need for Entrepreneurship: Every country, whether developed or developing, needs

entrepreneurs. Whereas, a developingcountry needs entrepreneurs to initiate the process of
development, the developed one needsentrepreneurship to sustain it. In the present Indian
context, where on the one hand, employmentopportunities in public sector and large-scale
sector are shrinking, and on the other, vastopportunities arising from globalization are
waiting to be exploited; entrepreneurship can reallytake India to the heights of becoming a
super economic power. Studies by
GlobalEntrepreneurship Monitor, are search programmed involving annual assessment of the
national level of entrepreneurial activity across a number of countries show that differencesin
the levels of entrepreneurial activity account for the differences in the level ofeconomic
growth to the extent of as much as 33%. What is that the entrepreneurs do to affecteconomic
development? This leads us to a discussion of the functions of the entrepreneurs inrelation to
economic development. As the enterprise is the object of their endeavour, it is alsonecessary
that we examine their functions in relation to the enterprise as well. Thus, the
need forentrepreneurship arises from the functions the entrepreneurs perform in relation to
the process of economic development and in relation to the business enterprise.
Functions of Entrepreneurs in Relation to Economic development:
You are aware that entrepreneurs “organize” the production process. In the absence this
function,all other resources, namely land, labour and capital would remain idle. They may
not beinventing/discovering the products, their role in commercial exploitation of the
advancements inscience and technology via Organisation of the productive apparatus makes
the other resources productive and useful. So much so that it is said that in the absence of
entrepreneurialintervention, every plant would remain a weed and every mineral would
remain a rock.
Contribution to GDP:
Increase in the Gross Domestic Product or GDP is the most common definition of
economicdevelopment. You are aware that income is generated in the process of production.
So,entrepreneurs generate income via Organisation of production be it agriculture, manufact
uringor services. You are also aware that income generated is distributed among the factors
of production where land gets rent, labour gets wages and salaries, capital gets interest and
theresidual income accrues to the entrepreneur in the form of profits. As rent and interest
accrue
tothose few who have land and capital respectively whereas larger masses are destined to ear
n
their incomes via wage employment, the biggest contribution of the entrepreneurship lies inc
apital formation and generation of employment. This is what we turn our attention to.
2. Capital Formation:
The entrepreneurial decision, in effect, is an investment decision that augments the

productivecapacity of the economy and hence results in capital formation. In fact, GDP and
capitalformation are related to each other via Capital Output Ratio (COR); more precisely
IncrementalCapital Output Ratio(ICOR) that measures the percentage increase in capital for
mationrequired obtaining a percentage increase in GDP. So, if a country desires to grow @
10.0 %p.a.and its ICOR is 2.6, then it must ensure capital formation
@ 26.0% p.a. Entrepreneurs, byinvesting their own savings and informally mobilising the sa
vings of their friends andrelatives contribute to the process of capital formation. These infor
mal funding supplementsthe funds made available by the formal means of raising resources f
rom banks, financialinstitutions and capital markets.
3. Generation of Employment:
Every new business is a source of employment to people with different abilities, skills
andqualifications. As such entrepreneurship becomes a source of livelihood to those who do
neitherhave capital to earn interest on nor have the land to earn rent. In fact, what they earn is
not only alivelihood or means of sustenance but also a lifestyle for themselves and their
families as well as personal job satisfaction. As such entrepreneurs touch the lives of many,
directly as well asindirectly.
4. Generation of Business Opportunities for Others:
Every new business creates opportunities for the suppliers of inputs (this is referred to
as backward linkages)and the marketers of the output (what is referred to as forward
linkages). As a pen manufacturer you would create opportunities for refill manufacturers as
well as wholesalersand retailers of stationery products. These immediate linkages induce
further linkages. Forexample, greater opportunities for refill manufacturers would mean
expansion of business for ink manufacturers. In general, there are greater opportunities
for transporters, advertisers, and, soon. So, via a chain-reaction, entrepreneurship provides
a spur to the level of economic activity.
. Improvement in Economic Efficiency:
You are aware that efficiency means to have greater output from the same input.Entrepreneur
s improve economic efficiency by, a. Improving processes, reducing wastes,increasing yield,
and, b. Bringing about technical progress, that is, by altering labour-capitalratios. You
are aware that if labour is provided with good implements (capital), its productivityincreases.
6. Increasing the Spectrum and Scope of Economic Activities:
Development does not merely mean ‘more’ and ‘better’ of the existing, it also and
more cruciallymeans diversification of economic activities– across the geographic, sector
al and technologicalscope. You are aware that underdeveloped countries are caught in the
vicious cycles on
thedemand as well as supply side. Entrepreneurs penetrate into and break these cycles, forex
ample, by organising and orienting domestic production for exports. Thus, production(and
thereby generation of income) is not constrained by the inadequacy of domestic demand.
(Demand-side Vicious Cycle).In today’s context, you are aware that India is poised to
become amanufacturing hub for the global markets for diverse products. Economic
development is alsoconstrained by the supply-side pressures resulting into absence of
capacity to meet the
demandwhether domestic or overseas. Entrepreneurs mobilise local and even over seas resou
rces toaugment the productive capacity of a country. Indian Multinational Giatts is fast beco
ming a reality. Entrepreneurs lead the process of economic development via bringing
aboutsector al change. You must be aware that as the economies grow, percentage of GDP
originatingfrom agriculture decreases and that originating in industry and services sectors go
esup. Entrepreneurs through their decisions to divest from the stale sectors and invest in
green-field sectors bring about a virtual transformation of the economy from
‘underdeveloped’ to an‘emerging’ and ‘developed’ status.
7. Impact on Local Communities:
Entrepreneurship, in its natural habitat, that is, small business is at a great level. You may
seefrom table on marginalized groups. That small-scale entrepreneurship enables such
marginalisedgroups as women, SC, ST and OBC to pursue their economic dreams. As there
are no entry barriers in terms of educational qualifications, entrepreneurship is an even more
attractive career
option for such marginalised groups. Agro based rural industries and craft-based
cottageindustries can really catapult local communities to socio-economic success stories. Lo
calgovernments do their bit in developing these entrepreneurship clusters with a view toenco
uraging inter-firm collaboration and development of common facilities.
entitled,‘Entrepreneurship Clusters in India. ’In regard to the development of
entrepreneurship forimpacting local communities, some corporate-sector initiatives also
deserve a mention. ITCthrough their ‘e-Chau pal’ and HLL through their ‘Shakti’ initiatives
have sought to mobilisenative entrepreneurs for improving the lot of those lying at the
bottom of the economic pyramid.
8. Fostering the Spirit of Exploration, Experimentation and Daring:
Economic development, among other things, requires breaking away from

the shackles of traditions and beliefs that restrict growth. For example, if ‘crossing the seas’
were a taboo, therewould not have been international trade and the result ant economic
growth. The establishedways of life need to be challenged and change must be seen as an
opportunity to improve
ratherthan something to be scared of. Entrepreneurs, through their urge to do something new,
seeing change as an opportunity, experimenting with the novel ideas and showing thecourage
to try them prepare a fertile ground for persistent economic development. Have you seenthe
Hindi movie ‘Lagan,’ where the protagonist Bhuvan raises a cricket team from the
villagerswho had not even seen the game? Don’t the feats of Karasn Bhai of ‘Nirma’ who
challenged‘Surf’ from the mighty Hindustan Lever Limited make you proud of the daring of
theentrepreneurs? Thus, whether one looks at economic development narrowly in terms of
theincrease in GDP or in the wider context of economic, institutional and social
change,entrepreneurship plays a crucial role. Global Entrepreneurship Monitor studies report
alag of 1-2 years between entrepreneurial activity and economic development, suggestingthat
it takes time for the impact of entrepreneurship on economic development. Animportant obse
rvation needs be made here. While entrepreneurship leads to
economicdevelopment, the vice-versa is also true. That is, economic development also foster
sentrepreneurship development. Growing economies provide a fertile soil for the flourishing
of entrepreneurship, an aspect that we will take up while discussing entrepreneurshipdevelop
ment.
Role of Entrepreneur in relation to their Enterprise: Drawing an analogy from musicology

in explaining the role of the entrepreneurs in
relation totheir enterprise, one may say that an entrepreneur is not only the composer of them
usical score and the conductor of orchestra but also a one-man band. His roles and
functionsget much broader in scope in a developing country context like ours. entitled ‘Role
andFunctions of the Entrepreneur in Relation to his/her enterprise.’ These elements are no
sequentialas the figure may convey, the entrepreneur may have to address to all these elemen
tssimultaneously. Yet, depending upon their backgrounds, the individual entrepreneur may p
refer one over the other. For example, technicians tend to be over obsessed withthe
production aspect; those with marketing background may over emphasise creation of
market.Investor type entrepreneurs may be over concerned with the returns from the project.
One shouldresist the temptation of looking at the business only from one’s own narrow
perspective. Havingsaid this, it is apt that we provide a brief description of the various issues
that may be relevant ateach stage.
Opportunity Scouting:
Entrepreneurial opportunities have to be actively searched for. One may rely on personalobs
ervation, discovery or invention. Personal/professional contacts/networks andexperience or
may also help in identifying business opportunities.
Alternatively, onemay rely on published reports, surveys and the like. Narayan Reddy of Vir
chow Laboratoriesrelied on the personal discovery of the molecule during his employment
with a pharmaceuticalcompany. As observation means seeing/hearing/smelling
with a purpose, opportunityspotting presupposes tendency to look at the things and
phenomenon from an entrepreneurialmindset. Most of us have a consumer’s mindset. If we
see any object of desire, may be a pen,laptop, latest model of the mobile phone or somebody
eating pizza or burger, we crave to havethe same thing for our selves.The entrepreneurial
mind, on the other hand starts working out,what would be the market size, where to procure
it from and at what price, will I able to woo thecustomers from the existing players and how–
by selling it cheaper, by providing more value or by better service and so on. Entrepreneurial
opportunities may also be identified through a process of research of international, domestic,
sectoral/industrial analysis. For example, postWTO, international trade and investment have
become freer of restrictions. Textile quotas are being phased out, and, there
are greater opportunities for textile and textile made-ups
From India. Global outsourcing is on the rise and India offers a huge and varied pool
oftechnical manpower that makes it a cost-effective destination for in-
bound globaloutsourcing in manufacturing as well as Information Technology Enabled
Services(ITES).
Identification of Specific Product Offering:
While the environment scan leads to the discovery of more generalised business
opportunities,there is a need to zero in on to a specific product or service idea. For example,
trade liberalisationsince WTOs has resulted in export opportunities, but the question is what
to export and where?You may be required to compile a country-product matrix to be able to
decide. This way you may arrive at the product-market combination showing the fastest
growing importand from your point of view export potential. Deciding on the product
offering makes thehighest demand on the entrepreneur’s creativity and innovativeness. Yet,
in a competitiveenvironment, it is possible to differentiate your product offering even if
the generic product is thesame and serves the same need. Clearly decision on specific
product offering necessitatesdecisions on who is buying, why, and what are the value
expectations. You will be able tosucceed when the value delivered not only meets but also
exceeds customers’ expectations andcreate a ‘Vow!’ impact.
Feasibility
Analysis
: The product offering idea must be technically feasible, that is

it should be possible with the available technology to convert the idea into are ality. And
thisshould be possible at a cost that can be covered by the price it will fetch; in other words,
the ideamust be economically feasible too. The project cost should be within the resources
availableand the resource providers should be reasonably sure of an appropriate
return on (profit)and return of (safety and liquidity) of their investments. That is, the idea mu
st be financiallyviable as well. There should be enough sales in the immediate and the
prospect of growth in theforeseeable future; there should be adequate assurance on the
commercial viability of the chosen product offering. Now a day, it is also important to be
sure that the rearen’t any environmentaland other legal restrictions/necessity of prior
approvals for setting up the business. It is also to bedecided as to whether the business willbe
organised as a proprietary concern/partnership firm/company or cooperative entity. Clearly
the chosen product offering must be feasiblefrom the diverse perspectives. You
must compile these findings in the form of a business plan
that would have to be submitted to the funding authorities, in the Indian context, the
StateFinance Corporation of your area. They may be having a prescribed proformain which
the detailsof the business plan are required to be furnished and, as such there may a need to
adapt thecontents accordingly. An idea about the generic contents of a business plan may be
had from.The business plan may be appraised by the funding institution, and
upon satisfying itselfabout the desirability of assisting your project and upon the furnishing
of some marginmoney it may sanction the loan amount. Recall, Narayan Reddy and his two
other as sociates provided Rs. 8 lakhs and the APSFC contributed Rs. 20 lakhs toward the
overall
project cost ofRs. 28 lakhs. Upon the project approval, the entrepreneur can proceed for proj
ectcommissioning, that is putting up the factory premises, installing the equipment,obtaining
the supplies of the input materials with a view to starting the manufacture andmarketing the
product. As noted earlier too, entrepreneurial functions do not come to anend with the
business start-up. He often looks after its day-to-day operations and strives for
itsstability and growth. Entrepreneurial roles and functions clearly seem onerous. Perhaps tha
tis why many shy away to simpler, softer and safer options of employment and practice
of profession. Entrepreneurial going may be tough; but then that is where the tough
get going!Do not worry if presently you may find yourself short on
those competencies,values and attitudes. It is just a matter of making up your mind for a
career in entrepreneurshipand grooming yourselves for it. This takes us to the discussion of
the process of entrepreneurshipdevelopment.
The process of Entrepreneurship Development:
Entrepreneurship does not emerge spontaneously. Rather it is the outcome of a

dynamic processof interaction between the person and the environment. Ultimately the choic
e ofentrepreneurship as a career lies with the individual, yet he must see it as a desirable
as well as afeasible option. In this regard, it becomes imperative to look at both the factors in
theenvironment as well as the factors in the individual as having a nearing on the perception
ofdesirability and feasibility and thereby entrepreneurship development. One may,
therefore,model the process of entrepreneurship development in terms. In general, capitalist
economy withits emphasis on individual achievement is more suitable for entrepreneurship.
Lower rates oftaxation on personal income, lower rates of interest and moderate inflation
stimulate entrepreneurial activity. (Can you think why it is so?) Moderately low external
value of domesticcurrency or in other words, moderately lower exchange rates, stimulate
import substituting
andexport promoting entrepreneurship. (Can you rational is e why?). Well-developed financi
alsystem, good infrastructure, helpful bureaucracy all these have a favourable
impacton entrepreneurship. Specially designed and dedicated institutions such as
NationalInstitute for Entrepreneurship and Small Business Development (visit,niesbud.nic.in
),Entrepreneurship Development Institute of India (visit,
www.ediindia.org)that conduct entrepreneurship awareness and entrepreneurship developme
nt programmes(EAPs and EDPs) a further fillip to this activity .An important enabler or
disabler of entrepreneurship is the prevailing socio-culturalmilieu. Those societies that
respect individual freedom to choose among occupations, thatencourage the spirit of enquiry,
exploration and experimentation, celebrate individualaccomplishment and in general accord
important status to the entrepreneurs are likely to haveself-sustaining supply of able and
willing men and women for taking to entrepreneurship as acareer.
The role of the individual in Entrepreneurship Development:
Mr. Narayan Reddy was desirous of starting a small-scale industry and also had a sense
ofefficacy or readiness to pursue it given his qualifications, experience and the necessary
values,attitudes and motivation (the opening case does not elaborate this. We will discuss
these
atsuitable places). Even you may like to see as to where do you find yourself on thedesirabili
ty (willingness)-efficacy (ability) matrix, won’t you? As you may see from thematrix figure
able and willing men and women are a “ready” source of entrepreneurship. Such persons
leap up the first opportunity comes their way to be on their own. Recall, Narayan Reddyleapt
up the opportunity as he met the two medicos who had returned from the Gulf. At any
pointof time, there are many men and women who “want” to set up a business of their
own butexperience self-perceived barriers to entrepreneurship. They could behaving a low
perception ofself-
efficacy either on account of lack of resources (or to be more correct, resourcefulness),knowl
edge or know-how, and the skills. Collectively, these are referred
to ascompetencies, which now we turn our attention to.
Entrepreneurial Competencies:
Every opportunity and successful performance of every role and function has a
competencerequirement. It’s true of entrepreneurship as well. entitled ‘Cash ORKASH?’
The term‘competence’ refers to a composite of knowledge, skills and a host of psychosocial
attributes(including Attitudes and Motivation that we will be discussing separately) in
a person that
markhis/her effectiveness for a task. The phrase ‘composite’ is crucial. For example, thecom
petence “ability to communicate vision” is much more than proficiency in writing/speaking s
kills. It would involve, just to illustrate, vision clarity, understanding theaudience
background, interest and readiness, knowledge about the media and choosing the
mostappropriate one, attracting attention, delivery, leaving not merely an impression
butalso an impact and, assessing effectiveness. So, when the entrepreneur in the televisionint
erview pointed out KASH as the determinants of successful entrepreneurship, he wasindeed r
eferring to the competencies. Competency approach to
human resourcedevelopment in general and entrepreneurship development in particular was
pioneered byDavid McClelland, a Harvard University psychologist in the late 1960’s and
early 1970’s. (Youwill be learning more on McClelland’s work when we discuss
entrepreneurialmotivation.)McClelland set out to define competency variables that could be
used in predicting job performance and that were not biased by race, gender, or socio-
economic factors. Asa result, it becomes more important to learn what a person does rather
than who he/she is. That iswhy management and also entrepreneurship is better defined as
what a manager or anentrepreneur does. Because competencies can be built via a process of
education anddevelopment, we may say that entrepreneurs are made. What are the distinct
competencies forentrepreneurship? In this regard one may refer to the efforts of
Entrepreneurship DevelopmentInstitute of India(EDI), a national resource institution
in the area of entrepreneurship educationresearch and development EDI has identified a set
of 15 competencies thatcontribute toward entrepreneurial
performance and success. These are briefly statedhereunder.
Initiative
: Acting out of choice rather than compulsion, taking the lead rather than waiting
forothers to start. Sees and Acts on Opportunities: A mindset where one is trained to look for
business opportunities from everyday experiences. Recall‘ oranges’ example. Efficiency
Orientation
: Concern for conservation of time, money and effort.
Systematic
Planning
: Breaking up the complex whole into parts, close examinationof the parts and inferring
about the whole; e.g. simultaneously.
Persistence
: A ‘never say die’ attitude, not giving up easily, striving continuously until successis
achieved. Information seeking: Knowing and knowing who knows, consulting experts,
readingrelevant material and an overall openness to ideas and information.Concern for High
Quality of Work: Attention to details and observance ofestablished standards and norms.
Commitment to Work Contract: Taking personal pains
tocomplete a task as scheduled. attending to production, marketing and financial aspects (par
ts)of the overall business strategy (the whole).
Problem-solving
: Observing the symptoms, diagnosing and curing. Self-confidence: Not being afraid of the
risks associated with business and relying on one’s capabilities tosuccessfully manage these.
Assertiveness
: Conveying emphatically one’s vision and convincing others of its value.
Persuasion:
Eliciting support of others in the venture. Use of Influence Strategies: Providing leadership.
Monitoring
: Ensuring the progress of the venture as planned.
Concern
for
Employee
Welfare:
Believing in employee wellbeing as the key tocompetitiveness and success and initiating
programmes of employee welfare. You would, now, be interested in knowing as
to how to build these competencies.
Knowledge competencies(what you know regarding facts, technologies, a profession,
procedures, a job, anorganisation, etc.) can be developed by, for example by reading and inte
racting with peoplewho know. Skill competencies(what you say or do that results in good or
poor performance) can be acquired by
practice, haven’t you heard “practice makes a man perfect”? Forexample, ‘persuasion,’ and
‘use of influence strategies’ require presentation skills. You may dodouble the homework
on what you want to say, how you want to say, who is
your audienceand what are their backgrounds, what could be the possible questions that may
be asked, what would be their answers and so on. Practice it allover a number of times, may
be before mirror or your friends, so that when you are actually in that situation, you perform
well.
Entrepreneurial
Motivation:
Men and women who have a perception of self-efficacy and are yet to feelinterested in or
motivated by the idea of being on their own comprise a potential, future source
of entrepreneurship. What motivates a person is a question easier asked than answered.
Mr. Narayan Reddy was driven by the desire to utilise his discovery of the molecule as a
businessopportunity. In terms of Maslow’s need hierarchy theory, one may say that Mr.
Narayan Reddywas driven by the need for self-
actualisation. Since entrepreneurial situation ischaracterised by personal accomplishment in
competitive situations and involvinghigher standards of excellence, one often come
across reference to ‘need for achievement’ or N-ach for short as the primary driver of
entrepreneurial behaviour. See Box entitled ‘How NAch.Drives Entrepreneurship and
Economic Development’. Need for Achievement (N-Ach.): Need for achievement implies
a desire toaccomplish something difficult. To master,
manipulate, or organise physical objects,human beings or ideas. To do this as rapidly and
as independently as possible. To overcomeobstacles and attain a high standard. To excel
one’s self. To rival and surpass others. To increaseself–regard by successful exercise of
talent. Yes, entrepreneurship provides you with the bestopportunity for making the be stuse
of your talents as in employment the 9-5 routine, pressure toadhere to rules and regulations,
preference for compliance of boss’s instructions over the use of personal creativity and
innovativeness stifles your progress and self-development. You cancreate a work
environment that suits your abilities and interests. Need for Power (N-Pow):
Needfor Power is the concern for influencing people or the behaviour of others for moving in
the chosen direction and attaining the envisioned objectives. In common perception, politicia
ns, social religious leaders Chief Executive Officers (CEOs), GovernmentBureaucrats/Civil
Servants typify the need for power. Such a perception seems more based onthe belief that the
source of power lies in the “position” a person occupies in organisational/societal context. In
the same vein, business ownership too may imply a need for power.Moreover, you would
appreciate that the process of founding a business, one has to win thecommitment of capital
providers, suppliers of equipment and materials, the employees and that of the customers.
Power may not be used to further one’s self-interests alone, it may be also beused to touch
the lives of others, to make a difference. Entrepreneurs driven by this socialisedface of the
need for power. They found organisations that are a source of sustenance and self-respect for
many. needs. Entrepreneurs are believed to be low on affiliation, as they are andexpected to
be, innovative, trendsetters and tradition breakers. However, it is not necessary thataffiliation
should only interfere with achievement. In certain cultures, family comprises the bedrock on
which the successful careers are built. One works, as if, not for personal gratification but for
family. Desire to Need for Affiliation (N-Aff.): Often you must have heard your parents
saying thatwhatever they do they do it for their children. If a man thinks about interpersonal
relationships,he has a concern for affiliation. It implies, among other things a tendency of
the people toconform to the wishes and norms of those whom they value. Apparently, social
activists,environmentalists, teachers, and doctors and nurses may seem as predominantly
driven
bythese carries on the tradition of business in the family and the community to whichone bel
ongs, may be interpreted as reflecting need for affiliation as well. In thecountries with the
colonial past, such as ours, the first generation of entrepreneurs inIndependent India was
driven by patriotic fervour and the desire to rebuild the economy leftstagnated by the alien
rulers. One can certainly trace some elements of affiliation motivation insuch
instances. Need for Autonomy (N-Aut.): The need for autonomy is a desire for independence
and beingresponsible and accountable to oneself rather than some external authority
for performance. It is the desire for an opportunity for the fullest expression of one’sabilities.
In the context of entrepreneurship, it is usually interpreted
as thedetermination not to work for someone else. In most job situations, employees aregiven
little freedom to exercise their discretion in taking decisions and choosing a course ofaction
so much so that absence of it drives them into starting their own ventures. As such n-
pow. becomes more a desire for preserving one’s ethos rather than the freedom from the
boss.
Takethe example of another Hyderabad based entrepreneur entitled Entrepreneurship for Pre
servingPersonal Work Ethos). What does the above discussion mean for entrepreneurship
development?It means that for promoting entrepreneurship it is important
to kindle and arouse the
right motivation. In the absence of motivation, even able men and women may not take toent
repreneurship. Hence. In every Entrepreneurship Awareness Programme (EAP) orEntreprene
urship Development Programme (EDP), there are special sessions onentrepreneurial motivati
on, besides sessions on entrepreneurial competencies. You may notethat motivation and
ability can positively reinforce each other. Persons having abilities search for the avenues for
their expression and hence are drawn to entrepreneurship. Persons eager to be ontheir own
may strive hard to acquire the necessary competencies torealise their dreams. Howtruly one
has said that entrepreneurs are the dreamers who do! In explaining and
developingentrepreneurial motivation, it is important tolearn that different individuals are mo
tivateddifferently, and that one may betrying to satisfy more than one need through one’s pur
suit.This is an important observation as economic theory very simply says that the objective
of thefirm or that of the entrepreneur is profit maximisation.
Entrepreneurial Values and Attitudes:
While explaining human behaviour, one often comes across the terms’ values and
attitudes.Rather than attempting to distinguish between these two terms, it would be
sufficient to say herethat taken together, entrepreneurial values and attitudes refer to the
behavioural choices’individuals make for success in entrepreneurship. The word ‘choice’ is
important, as there
arealternative ways of behaving too. In entrepreneurship, a host of behavioural tendencies or
orientations have been reported as having a bearing on success. The entrepreneur in
‘Cash orKASH’ labelled these as ‘Habits’, some researches have called these as
policies orstrategies. Be it the decision to make a choice about entrepreneurship as a
career, be it thedecision to choose the product line, growth strategy, profit making and social
responsibility youwould be required to make choices. The choice that you make may have a
tremendous impact onyour performance. What we do here is to profile some of the
dimensions relating to starting andmanaging a business and the associated behavioural
alternatives, we have considered here two tokeep the things simple. We have
highlighted those alternatives that have been generallyobserved to be associated with
superior performance.
Entrepreneurship for Preserving Personal Work Ethos:
In industries having captive power plants, a day’s downtime can cause a loss of crores
of rupees.While working for a public sector electrical major, an engineer found it really diffi
cult to copewith the bureaucratic attitude in servicing the customers. It clashed with his perso
nal value,‘client’s problems be attended first, paperwork can wait’. He quit the job and
started a turbinerepairing and furbishing company. Incidentally, it takes more money to
travel or to transport thanto repair or refurbish the turbine. But the downtime is reduced and
the clients are
happy. Laterthe company also diversified into the manufacture of the parts and commissioni
ng of the captive power plants on a turnkey basis.
How N-Ach. Drives Economic and Entrepreneurship Development:
Credit for investigating and bringing to the fore the role of need for achievement
goes toMcClelland, the Harvard professor whom we referred to also in the discussion ofcom
petency-based approach to human resource and entrepreneurship development. He set out
toinvestigate why some countries are more developed than others He sought to find answer
to thisquestion by examining the proposition that ‘differences in the level of achievementmot
ivation are responsible for ‘differences in the level of economic
development’. Forthis he examined the popular stories and folklore and readers up to
primary classes of 39countries for finding out whether they focused on personal
accomplishment, triumph of humancourage and effort over the circumstances and so on.
McClelland’s research up held the proposition that differences in the levels of achievement
motivation as revealed by the analysisof the stories and the readers accounted for the
differences in the level of
economic development.How? What would be the process? McClelland observed that entrepr
eneurship becomes themedium through which the achievement motivation manifests the best
and through which thedevelopment takes off.
The Role of Environment in Entrepreneurship Development:
Entrepreneurs bring about economic growth and development, and the latter in turn provides
afertile soil for the flourishing of entrepreneurship. There certainly is a mutuallyfacilitatingre
ciprocity between economic growth and entrepreneurship devlopment.
Process of Setting up aBusinessProcess of Setting up aBusinessProcess of Setting up

aBusiness
Process of Setting up a BusinessBusiness Roles and Functions of the Entrepreneur in relation the
Enterprise:Developing Exchange Relationships:
1. Perceiving market opportunities2. Gaining command over scarce resources3. Purchasing

inputs4. Marketing of Products and responding to competition
Political Administration:
5. Dealing with public bureaucracy (approvals, concessions, taxes)6. Managing human

relations within the firm7. Managing customer and supplier relations.
Management Control:
8. Managing finance9. Managing production
Technology:
10. Acquiring and overseeing assembly of the factory11. Industrial engineering (minimizing
inputs with a given production process)12. Upgrading the production process and product
quality13. Introducing new production techniques and products
3. LITERATURE REVIEW
3.1 The Imperfect Education System and Conservative Lifestyle :
The education system is one of hindrance for start-ups. In college, students are
usuallytrained with advanced techniques but lack of marketing, sales and operational abilitya
nd leadership skills needed to advance their own enterprises. In addition, conservative
lifestylealso contributes as one of obstacles. As a culture of family remains, family remains
sceptical tochange and prefer options that are able to provide a steady income rather than
engaging risk.This places pressure on the budding entrepreneur who fall victim to the
dichotomy of providingfor the family instead of following some “whimsical” dream (Au &
Kwan, 2009).
3.2 Lack of Support Networks and Entrepreneurship Ecosystem:
One of the major challenges is that there is severe shortage of start-up support networksand
entrepreneurship ecosystems. In many western countries, there are special institutions
serveas incubators, start-up accelerators, start-up competitions for entrepreneurs to put their
ideas totest and obtain necessary guidance. In India, incubators, start-up accelerators, and
start-upcompetitions are slowly making their way into the first-tier cities, but there truly are
not enoughto go around. As a result of this shortage, many start-
ups fail at the “idea” stage of their business. The ecosystem usually does not directly provide
funding to start-ups; they just serve as platforms that link investors and entrepreneurs so that
entrepreneurs can obtain necessaryfunding to test out their ideas. The lack of these facilities
makes it more difficult forentrepreneurs to find investors. In return, investors are more
difficult to find entrepreneurs aswell. Even if entrepreneurs are able to find investors, they
will face an entirely different set ofchallenges. Indian culture inherently does not promote
entrepreneurship. Conversely, itencourages stability, employment at largest ate-
owned or private organizations and, aboveall, teaches people to be risk averse. Even if young
Indian individuals have intention to starttheir own business, their family usually places a
considerable amount of negative pressure onthem to forget entrepreneurship and look for a
“stable job” instead.
3.3 India lacks enough angel investors to fund start-ups :
Unlike the West, India does not have an adequate number of angel investors who canfuel the
growth of the country’s thriving start-up ecosystem, industry body
NASSCOM has said.“For a successful start-up ecosystem there is a need for enough angel in
vestors who can
support budding entrepreneurs from an early stage. But this is not happening inIndia and ther
e is a serious lack of it, ”NASS COM Vice-President Rajat Tan don toldPTI. “High net-
worth individuals and corporate executives, among others, should come forwardand
participate in this growth story,” he said. A recent report by NASSCOM had said India
ranksthird among global start-up ecosystems, with more than 4,200 new-age companies.
Tandon said,“The case is very different in countries like the US. People are just waiting to
invest in goodcompanies. We should also have something like that. ”“Mainly, investors (in
India) are afraid because there is a high risk of failure in these investments
and also there is a lack of policyon such investments,” he added. “Why will investors
put money in such companies? They needtax benefit sand a number of other things to put in
their money. We have already written aboutthese things to the Government and I am sure we
can expect something by the year-end,” hesaid. In his Independence Day speech,
Prime Minister Narendra Modi had announced a newcampaign „Start-up India; Stand up
India to promote ‟bank financing for start-ups and offerincentives to boost entrepreneurship
and job creation in the country. “At NASSCOM, we are notonly encouraging investors but
also asking people to mentor start-ups. Like someone has adesign business, they can help
start-ups develop UIs and guide them in the process. In return theytake some equity,” he
said. “And there are people like Ratan Tata and Azim Premji,who
aremaking a slew of investments and helping these young entrepreneurs. They are theinspirat
ion,” he said. Ratan Tata has invested in a number of companies includingOla, Snapdeal, Pay
tm, Urban Ladder, and Bluestone. Wipro boss Azim Premji has fundedcompanies
such as Myntra and Amagi, among others, through his investment arm PremjiInvest.
3.4 Human Talent:
Compared to large mature enterprises, small start-ups are in an exponentially moredifficult

dilemma and encountering much severe challenging in recruiting due to the
reason thatit cannot pay high salary to its employees or offer any career
development opportunities asidefrom building their business from the ground up. What is
worse is that working for a start-up inChina is far less glamorous than working for a start-up
in the west due to culture differences. It isa disaster for a company who needs to execute
on their business plan with minimal errors to justsurvive the month
2.5 Women Entrepreneur:
Melanne Verveerin, Women entrepreneurs are a vital source of growth that can powerour
economies for decades, yet they face tremendous challenges to their full
economic participation. The GEM Women ‘s Report provides important data which is
critical toour understanding of women-run SMEs. V Krishnamurthy and R
Balasubramaniam, identifiedthe important women entrepreneurial motivation factors and its
impact on
entrepreneurialsuccess. The study identified ambition, skills and knowledge, family support,
marketopportunities, independence ,government subsidy and satisfaction are
the importantentrepreneurial motivational factors. The study also concluded that
ambition knowledge and skillindependence dimensions of entrepreneurial motivational
has significant impact onentrepreneurial success. Jalbert, (2000) performed a study to
explore the role of
womenentrepreneurs in a global economy. It also examined how women ‘s businessassociati
ons can strengthen women ‘s position in business and international trade. The analysisis
performed on the basis of facts and data collected through field work (surveys,
focus groupsand interviews) and through examining the existing published research.
The studyhas shown that the women business owners are making significant contributions to
global economic health, national competitiveness and community commerce by bringing
manyassets to the global market. Bowen &Hirsch, (1986), compared & evaluated variousres
earch studies done on entrepreneurship including women entrepreneurship. Its summariesvar
ious studies in this way that female entrepreneurs are relatively well educated in general
but perhaps not in management skills, high in internal locus of control, moremasculine, or
instrumental than other women in their values likely to have had entrepreneurialfathers,
relatively likely to have first born or only children, unlikely to start business
intraditionally male dominated industries & experiencing a need of additional managerialtrai
ning. Singh, (2008), identifies the reasons &influencing factors behind entry ofwomen in ent
repreneurship. He explained the characteristics of their businesses in Indiancontext and also
obstacles &challenges. He mentioned the obstacles in the growth ofwomen entrepreneurship
are mainly lack of interaction with successful entrepreneurs, social un-acceptances women
entrepreneurs, family responsibility, gender discrimination, missingnetwork, low priority
given by bankers to provide loan to women entrepreneurs. He suggestedthe remedial
measures like promoting micro enterprises, unlocking institutional frame work, projecting &
pulling to grow & support the winners etc.
The study advocates for ensuringsynergy among women related ministry, economic ministry
& social & welfaredevelopment ministry of the Government of India.
4.GENERALANALYSIS
4.3 Challenges faced by Women Entrepreneur :
Conflicts between Work and Domestic Commitment’s: Women's family obligations

also barthem from becoming successful entrepreneurs in both
developed and developingnations. "Having primary responsibility for children, home and old
er dependent familymembers, few women can devote all their time and energies to their
business" (Starcher, 1996).Married women entrepreneurs have to make fine balance between
the business and their home.
Problems access to finance:
Women entrepreneurs are lacking access to finance because women generally do not have p
roperty in their names to use them as a collateral security for obtaining funds from
externalsource. The bank also considers the women as less credit worthy and discourages
the womenentrepreneurs. The family members of her have little confidence in the capability
of thewomen to run the business.
Lack of family support:
This is common issue for every woman in India. Sometimes the family may make
the womenfeel guilty of neglecting household duties in her pursuit
of business obligations. Culturaltraditions may hold back a woman from venturing into her o
wn business.
Limited mobility:
Unlike men, women modality for travelling from place to place in India is limited due to
thevarious reasons. Women on their own find it difficult to accommodate in smaller towns
even thedual responsibility that the women have to cope with making business success as
well as lookingafter the home, restrict in their mobility.
Male Dominated Society:
Important barrier to the empowerment of women through enterprise is the main chauvinist p
redominant social factor and believes are not conducive to the blossoming of
womenentrepreneur. This consideration act as a stumbling block in their strife for equal
status withmen in the economic activity.
Indian women give more emphasis to family ties and relationships:
Married women have to make a fine balance between business and family. The business
successalso depends on the support the family members extended to women in the business
process andmanagement.
Role Conflict:
Entrepreneurship needs a high level of commitment, devotion and dedication. Women taking
onmantle of entrepreneurship suffer from stress and strain caused by role overload and
roleconflicts.
Lack of proper Education:
The greatest barrier of the entrepreneurial career among women is the lack of education. InIn
dia 60% of women are illiterate and illiteracy is the major problem of socio-economic backw
ardness. Lack of information and experience creates further problems in setting up
of business.
Discrimination in childhood:
Right from early childhood, girl child is taught not to be aggressive. They are discouraged
tomove out of the family and take up the business. This attitude of the family members
makeswomen week and passive in approach.
Low need for Success:
Need for achievement independence autonomy are the prerequisites for the success of
theentrepreneurship. But women are proud to the glory of their parents, husband, children
etc. Their preconceived notions about the role in the life inhibit achievement and
independence.
Low Risk Bearing Ability:
Women in India need a protected life and they are confined to the four walls of house. They
areless educated and economically not self-dependent and lack the entrepreneurial initiativeo
r training, inferiority complex, unplanned growth etc.
all this reduces the ability of women to bear a risk. Lack of Self Confidence: Women lack of
self confidence in their own abilitieswhich is partly due to socio cultural environment.
Having accepted a subordinate status for long
even at home members of their family do not appear to have total confidence in their
abilitiesand on their decision making
5. FINDINGS, SUGGESTIONS &CONCLUSIONS
5.1 Findings:
Many businesses start with a dream, but it takes more than just a dream for them to grow
intosuccessful businesses—including the tenacity to overcome the many challenges facing
start-upstoday. Start-ups take time, effort, and energy. Funding is a major concern for start-
ups and small businesses. When the economy tanked, it made it harder to convince investors
and banks alike to part with the cash that’s essential for growth in the early days of a
business. Credit today is tight,and it’s not clear precisely when it will become more
readily available. Plus, there’s agrowingtrend of smaller initial investments in early stage
start-ups. Intensifying the challenge of raisingfunds, major leaps in technology have led
investors to raise the bar in terms of how muchlegwork entrepreneurs are expected to do
before even pitching their companies.
5.2 Suggestions:
Solutions for reason of failures:
Entrepreneurs should conduct in-depth market researches to understand the need of

thesociety and then proceed to the product design phase.

Entrepreneurs need to analyse their business idea and think out of the box. An
idealexample can be the number of start-ups in the ecommerce industry, but rarely anyonefo
cuses on logistics-based start-up ideas, where the need is.
Start-ups should aim to hire those people who share the same zeal to make the start-
upsuccessful.
Entrepreneurs should reach out to multiple venture capitalists and know who is betteraligned
towards the goals of start-ups.
Business process should involve meetings of the management team and technical teamson
weekly basis to ensure a smooth workflow.
Start-ups should be policy driven and offer same salaries to team members. Itshould offer
incentives for performance-based work. Doing so will help manage thefunding in an
appropriate way.
Entrepreneurs can themselves at personality development classes to improve their softskills

or hire an experienced person for business communication.
Entrepreneurs should keep a close watch on the growing demand for their productand focus
on response time and capacity planning.
An entrepreneur should keep up with changing market dynamics to see a decline in

thedemand for their product and take necessary steps to run the start-up profitably.
To remove the obstacles for Women Entrepreneur:
The basic requirement in development of women entrepreneurship is

to make aware thewomen regarding her existence, her unique identity and her contribution
towards the economicgrowth and development of
country. The elimination of obstacles for womenentrepreneurship requires a major change in
traditional attitudes and mindsets of people in society rather than being limited to only
creation of opportunities for women.Hence, it is imperative to design programmes that will
address to attitudinal changes, training,supportive services. The basic instinct of
entrepreneurship should be tried to be reaped into theminds of the women from their
childhood. This could be achieved by carefully designing thecurriculum that will impart the
basic knowledge along with its practical implication
regarding management (financial, legal etc.) of an enterprise. Adoptinga structured skill

training package can pave the way for development of women entrepreneurship. Such
programmes cantrain, motivate and assist the up coming women entrepreneurship in
achieving their ultimategoals. Various schemes like the World Bank sponsored programmes
can be undertaken for such purposes. The course design should focus on imparting input on
profitability, marketability and practical management lessons. Besides, there should be
consideration in helping the womenentrepreneurs in balancing their family life and work life.
As a special concern, computerilliterate women can be trained on Information Technology to
take the advantage of newtechnology and automation.The initiatives taken from these well-
established
entrepreneurs for having interactionwith such upcoming women entrepreneurs can be proved
to be beneficial in terms of boosting their morale and confidence. The established and
successful women entrepreneurs canact as advisors for the upcoming women entrepreneurs. I
t may result in more activeinvolvement of women entrepreneurs in their enterprises. Infrastru
cture set up plays avital role for any enterprise .Government can set some priorities
for women
entrepreneursfor allocation of industrial plots, sheds and other amenities. However, precautio
narymeasures should be undertaken to avoid the misuse of such facility by the men in the
name of thewomen. Even in todays’ era of modernization the women entrepreneurs depend
on males
oftheir family for marketing activities. This is simply because they lack the skill andconfiden
ce for undertaking such activities. Women development corporations should comeforward to
help the women entrepreneurs in arranging frequent exhibitions and setting upmarketing
outlets to provide space for the display of products or advertisement about servicesmade by
women
5.3 Conclusion:
Start-ups are the future growth engines of our country and government should doall it can to
foster the growth of entrepreneurship culture in India.

Already Facebook, Google and Yahoo have acquired start-ups based in India andthe likes of
Flipkart, Inmobi, MuSigma show us that world class companies can haveorigins in India
also. It just needs a little push in right direction.
Government initiatives like the $1.68bn funds for the ‘Make in India’ and the newcompany
law are a step-in right direction.

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1.

INRODUCATION OF THE COMPANY

1.1 Definition of Start-up:

A Start-up company or start-up or start-

1.2 START UP INDIA

Is an initiative of the Government of India.

Ministry of Human Resource Development

Department of Science andTechnology

Indian Institutes of Information Technology

Indian Institutes of Science Education and Research

National Institutes of Pharmaceutical Education and Research

2018 Start-up State Ranking

Best performer: Gujarat

Top performers: Karnataka, Kerala, Odisha, and Rajasthan.

Leader: Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, and Telangana.

Beginners: Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Skim, and Tripura.

has launched the largest incubation center in India as "

" Of 100 crore (US$14 million)

for entrepreneurs. The government of

has collaborated with the

(SIDBI) to create a fund of 200crore (US$28

has also launched a

" Scheme. In order to promote start-opsin

, the state government organized a two-day Start-up Conclave in

on November 28, 2016.

1.3 Startup Company:

or start-up is started by individual

venture that aims to develop a viable

to meet a marketplace, need or problem. Founders design start-ups to

, i.e. privately held start-up companies

at over$1 billion. According to

, there were 279unicorns as of March 2018, with most

2. Start-up India hub:

3. Register through app:

5. RS, 10000 CRORE FUND

6. National Credit Guarantee Trust Company:

8. No Income Tax for three years:

9. Tax exemption for investments of higher value:

10. Building entrepreneurs:

11. Atal Innovation Mission:

12. Setting Up Incubators:

A Private-public partnership modal is being considered for 35 new incubators and 31

13. Research parks:

14. Entrepreneurship in biotechnology:

16. Legal support:

18. Easy rules:

19. Faster exit:

1.5 Entrepreneurship: Entrepreneurship

is the process of designing, launching and running a new

. The people who create these businesses are called

, a significant proportion of start-up businesses have to close due to "lack of

Entrepreneurship is the act of being an entrepreneur, or "the owner or manager of

Say provided a broad definition of entrepreneurship, saying that it "shifts

2.1 Objectives:(A) Meaning:

A research objective is a clear, concise, declarative statement, which providesdirection to

The objectives of a research project summarize what is to be achieved by the study.

A well-known objective will be SMARTS

– SPECIFIC • M – MEASURABLE. • A – ATTAINABLE. • R – REALISTIC. • T – TIME

Research objective should be RELEVANT, FEASIBLE, LOGICAL, OBSERVABLE,

The objective of research project summarizes what is to be achieved by the study.