RABINDRANATH TAGORE UNIVERSITY UGC Approved Journals Anusandhan (AUJ-AN) - Technology & Management Indexing and Impact Factor : INDEX COPERNICUS : 48609 (2018) Read / Download More Articles - AISECT University Journal Vol. II/Issue IV Sep 2013 ISSN: 2278-4187 Role of Government in Developing Entrepreneurs Dr. Atul Mishra JNCT, Bhopal, (M.P), India ABSTRACT It's a known fact that India, today, is an emerging economy that is destined to achieve milestones, on various fronts, in the near future. However, for India, to acquire the status of a "developed" nation, it needs to create 100 million jobs, statistics point out! Experts confirm, in an endeavour to achieve this mark, tapping the potential of the unemployed and exploring opportunities in the employment market, so that each and every person plays a crucial role in contributing towards the growth of the Indian economy is necessary. However, how can one create 100 million jobs? And the million- dollar question is which industry will absorb people and bridge the employment gap? While experts are busy contemplating the possibilities of the army, the railways, the government and the private sector to recruit, speculations about the difficulty in employing in such huge numbers continue to persist. I. INTRODUCTION agencies, business incubators, science parks, and some NGOs. An Entrepreneur is an individual who efficiently and II. CHARACTERISTICS OF AN effectively combines the four factors of production. Those ENTREPRENEUR factors are land (natural resources), labor (human input into production using available resources), capital (any Entrepreneurs have many of the same character traits as type of equipment used in production i.e. machinery) and leaders, similar to the early great man theories of Enterprise (intelligence, knowledge, and creativity.) leadership; Entrepreneurs are often contrasted with Entrepreneurship is often difficult and tricky, as many new managers and administrators who are said to be more ventures fail. is often . Most commonly, the term methodical and less prone to risk-taking. Such person- entrepreneur applies to someone who creates value by centric models of entrepreneurship have shown to be of offering a product or service. Entrepreneurs often have questionable validity, not least as many real-life strong beliefs about a market opportunity and organize entrepreneurs operate in teams rather than as single their resources effectively to accomplish an outcome that individuals changes existing interactions. Business entrepreneurs are (a) The Entrepreneur has an enthusiastic vision. viewed as fundamentally important in the capitalistic (b) The Entrepreneur's vision is an interlocked society. Some distinguish business entrepreneurs as either collection of specific ideas. "political entrepreneurs" or "market entrepreneurs," while (c) The overall blueprint to realize the vision is clear. Social entrepreneurs' principal objectives include the (d) The Entrepreneur promotes the vision with creation of a social and/or environmental benefit. The enthusiastic passion. Enterprise can be set-up in a designated industrial area, (e) The Entrepreneur develops strategies to change where infrastructure facilities are available and are near to the vision into reality. the market identified. It can also be set up in any other (f) The Entrepreneur takes the initial responsibility area depending upon nature of activity and local municipal to cause a vision to become a success. rules. Entrepreneurship is the practice of starting new (g) Entrepreneurs take prudent risks. organizations or revitalizing mature organizations, (h) An Entrepreneur is usually a positive thinker and particularly new businesses generally in response to a decision maker. identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses III. ADVANTAGE OF fail. Entrepreneurial activities are substantially different ENTREPRENEURSHIP depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major Every successful entrepreneur brings about benefits not undertakings creating many job opportunities. Many only for himself/ herself but for the municipality, region or "high-profile" entrepreneurial ventures seek venture country as a whole. The benefits that can be derived from capital or angel funding in order to raise capital to build entrepreneurial activities are as follows: the business. Angel investors generally seek returns of 20- (a) Enormous personal financial gain. 30% and more extensive involvement in the business. (b) Self-employment, offering more job satisfaction Many kinds of organizations now exist to support would- and flexibility of the work force. be entrepreneurs, including specialized government - AISECT University Journal Vol. II/Issue IV Sep 2013 ISSN: 2278-4187 (c) Development of more industries, especially in (d) Introduce new technologies. rural areas or regions disadvantaged by economic Aside from being innovators and reasonable risk-takers, changes, for example due to globalization effects. entrepreneurs take advantage of business opportunities, (d) Encouragement of the processing of local and transform these into profits. So, they introduce materials into finished goods for domestic something new or something different. Such consumption as well as for export. entrepreneurial spirit has greatly contributed to the (e) Income generation and increased economic modernization of economies. Every year, there are new growth. technologies and new products. All of these are intended (f) Promotion of the use of modern technology in to satisfy human needs in a more convenient and pleasant small-scale manufacturing to enhance higher way. productivity. (g) Encouragement of more researches/ studies and (e) Create Employment. development of modern machines and equipment The biggest employer is the private business sector. for domestic consumption. Millions of jobs are provided by the factories, service (h) Development of entrepreneurial qualities and industries, agricultural enterprises, and the numerous attitudes among potential entrepreneurs to bring small-scale businesses. about significant changes in the rural areas. (i) Freedom from the dependency on the jobs offered V. PROMOTION OF by others. ENTREPRENEURSHIP (j) The ability to have great accomplishments. Entrepreneurship was potential to support economic IV. CONTRIBUTIONS OF growth and social cohesion; it is the policy goal of many ENTREPRENEURS governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by (a) Develop new markets. integrating entrepreneurship into education systems, Under the modern concept of marketing, markets are legislating to encourage risk-taking, and national people who are willing and able to satisfy their needs. In campaigns Economics, this is called effective demand. Entrepreneurs Many of these initiatives have been brought together under are resourceful and creative. They can create customers or the umbrella of Global Entrepreneurship Week, a buyers. This makes entrepreneurs different from ordinary worldwide celebration and promotion of youth businessmen who only perform traditional functions of entrepreneurship, which started in 2008. management like planning, organization, and coordination. (a) Financial Assistance (b) Discover New Sources Of Materials. Financial assistance is available from institutions such Entrepreneurs are never satisfied with traditional or as Nationalized Banks, Small Industries Development existing sources of materials. Due to their innovative Bank of India, Regional Rural Banks, National Small nature, they persist on discovering new sources of Industries Corporation, State Financial Corporations etc. materials to improve their enterprises. In business, those depending upon the project requirement and promoters who can develop new sources of materials enjoy a background. Financial assistance has two components. comparative advantage in terms of supply, cost and Loan for fixed capital is used to acquire Plant and quality. Machinery, land and building. Working capital loan is used to meet day to day operational cost of the (c) Mobilize Capital Resources. production. State Financial Corporation and National Entrepreneurs are the organizers and coordinators of the Small Industries Corporation generally provide working major factors of production, such as land labor and capital. capital. However under package assistance, State They properly mix these factors of production to create Financial Corporations also provide a composite loan goods and service. Capital resources, from a layman's covering plant and machinery and working capital. The view, refer to money. However, in economics, capital general conditions for getting financial assistance are: resources represent machines, buildings, and other (i) Eligibility criteria physical productive resources. Entrepreneurs have (ii) Technical /Economic viability initiative and self-confidence in accumulating and (iii) Promoters contribution mobilizing capital resources for new business or business (iv) Capacity to repay loan expansion. (v) Collateral securities/guarantee - AISECT University Journal Vol. II/Issue IV Sep 2013 ISSN: 2278-4187 (d) To help in looking for partners, in order to stimulate entrepreneurship and improve the business environment VI. THE ROLE OF GOVERNMENT IN for small enterprise. SUPPORTING ENTREPRENEURSHIP (a) Training Small and Medium-sized