Emerging Role of Entrepreneurship and Challenges for Entrepreneurs Towards Their Role in Economic Growth

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Entrepreneurship in today’s world means risk taking and bringing innovation. Many believes that entrepreneurship is an ongoing process and not static in nature. True entrepreneurs are resourceful, passionate comfortable fighting on the frontline.

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The great ones are ready to be laughed at and criticized in the beginning because they can see their path ahead and are too busy working towards their dream. This paper basically deals with the role of entrepreneur in economic growth and the challenges faced in order to achieve success and sustain in the market. ————————————————- KEYWORDS: Entrepreneurship, Challenges, Economic Growth LITERATURE REVIEW

A study on Entrepreneurship Challenges and Opportunities in India by Dr. N. Santhi and S. Rajesh Kumar showed that “The country’s economic policy environment must be favorable for organizations to achieve efficiencies in today’s global market. It should enable the entrepreneurs to provide a magical touch to an organization, whether in public or private or joint sector, in achieving speed, flexibility, innovativeness and a strong sense of self-determination. A study on Contribution on Entrepreneurship in Economic Growth by Muhammad Amjad Nazir showed that “ Entrepreneurship play an important role in countries in different stages of economic development if supported by government policies, proper Research and Development facilities, flexibility and knowledge intense production. ” A study on Entrepreneurs: A Balanced View of their Role in Innovation and Growth by Theodore D.

Weinshall proposed that “ Entrepreneurs are strong personalities that enable them to mobilise resources and people to achieve their aim but there are two negative aspects: firstly, that the entrepreneur’s aims may not be necessarily in the public interest; and secondly, that the entrepreneur may not remain “the right man for the job” as the business grows. Thus an appropriate career plan for an entrepreneur might be to start by learning the ropes in an entrepreneurial organization before launching successive ventures. ” INTRODUCTION TO ENTREPRENEURSHIP

The concept of entrepreneurship defines in different ways because it has wide range of meanings. Today entrepreneurship most seen as under taking innovation and brings risk. Most economics and sociological is says entrepreneurship is a process and not a static phenomenon. Entrepreneurship has to do change and is also commonly associated with choice related. We can also define entrepreneurship as “Creating or seizing an opportunity and pursuing it regardless of the resources currently controlled “or Entrepreneurship is more than just a mechanical economic factor (Pirich 2001).

Over the past few years there has been a great deal of attention paid to the subject of entrepreneurship, stemming primarily from the discovery by economic analysts that contribute considerably to economic growth and vitality. Many definitions of entrepreneurship can be written in the literature describing business processes. The earliest definition of entrepreneurship, dating from the eighteenth century, used it as an economic term describing the process of bearing the risk of buying at certain prices and selling at uncertain prices.

Later definitions described entrepreneurship as involving the creation of new enterprises and that the entrepreneur is the founder. (Peter Kilby, 1984) once entrepreneurship compare with the imaginary animal, the Heffa lump, It is a large and important animal which has been hunted by many individuals using various ingenious trapping devices. All who claim to have caught sight of him report that he is enormous, but they disagree on his particularities.

Not having explored his current habitat with sufficient care, some hunters have used as bait their own favorite dishes and have then tried to persuade people that what they caught was a Heffa lump. However, very few are convinced, and the search goes on (Kilby, Hunting the Heffalump, Entrepreneurship and Economic Development, 1971). In this paper main focus on the economic aspects of entrepreneurship. The economic definition of entrepreneurship by some researchers and authors, ( Cantillon 1755) claims that “Undertakers are a class of economic agents, making decisions on market transactions in the ace of uncertainty”. (Knight 1921) defines “entrepreneurship as dealing with uncertainty, making a distinction between risk, which can be calculated, and uncertainty”. (Schumpeter 1934) “describes the entrepreneur as the bearer of the mechanism for change and economic development, and entrepreneurship as the undertaking of new ideas and new combinations, innovations”. “Probably the most important pioneer in the area views innovation as the critical link between entrepreneurship and economic growth” (Schumpeter 1934). e said that “economic development is a process of new series new markets new sources and new organization which help to develop economic growth”. With sharp depletion in job opportunities in the government sector, entrepreneurship is the only alternative before the nation. This was the observation made by Suresh Yadavendra, Director, MSME Development Institute, who spoke at length addressing students of the University School of Management Studies (USMS), I. P. University, Delhi recently.

Others who participated in the one-day Intensive Entrepreneurial Motivation Programme (IEMP) jointly organized by USMS and the MSME Development Institute, included Prof. Anu Singh Lather, Dean, USMS, V. K. Jain, Registrar, K. K. Goel, Major Singh of MSME Development Institute, Balraj Nandwani, Director, The Skills Academy and Buisness Head, SME WORLD. Yadavendra exhorted the student to take their careers seriously and aim at becoming entrepreneurs. “Gone are the days when one looked up to government jobs”. He said that at the pace the economy is growing, the future lies with entrepreneurship.

He expressed his fears on the dwindling attention to skill development. “The skills we have so proudly inherited are withering as the modern technology and education takes over. This is a dangerous trend. On the contrary education should enhance our age-old skills which have come to us over centuries. ” Prof. Anu Singh Lather appealed to the students to take entrepreneurship with all seriousness. Being an entrepreneur is a great reconcilability and the process must start from zero. “It is not only about earning and living. ” V. K. Jain, Registrar, I. P.

University, was however of the view that entrepreneurship is not the only alternative. “All cannot become entrepreneurs. We need technocrats, engineers along with entrepreneurs. The government is still a desired destination as it needs creative minds and innovative brains. ” He said that the massive infrastructure of our educational institutions is greatly under-utilized and suggested that the infrastructure should be put to use during the time when institutions are closed. Balraj Nandwani appealed to the students to be hopeful as the future has a fund of opportunities for them. Do whatever you want, but do it with confidence. ” Indian economy is fast growing and it is set to lead the world economy within your lifetime only. “Be perfect, set your goals, be optimistic, acquire the best of skills in your respective areas and make yourselves infused with confidence. You will always win. ” ENTREPRENEURSHIP LINK WITH ECONOMIC GROWTH The main purpose of this paper is analyzing the contribution of entrepreneurship in economic growth. Many studies have examined the positive relationship between entrepreneurship and economic growth.

The aim of the study is to make a link between the above two irrespective of the size of the firm. The main difference between a small and a large firm is the roles of ownership and management. In small firms mostly one person or a small group of people controlling and which shapes the firm and its future. So in recent years renewed attention has been given to the role of entrepreneurship in economic growth. There are also some differences in organizations if the size less distribution has influence on growth.

This will be done by using elements of different fields like macro economic growth, historical views on entrepreneurship, industry economics etc. there is enough proof that economic activities moved away from large firms to small firms in linking entrepreneurship to economic growth. As statistics reveals, 18% of India’s growth rate is due to small and medium scale industries and is increasing rapidly due to establishment of new industries. Also, the contribution of SMEs in the growth of Gujarat is about 85% which shows that there is high result from entrepreneurship.

Thus, the main contribution of entrepreneurship in economic growth may be single out as “new one”. This is related to startup of new business and change of innovation into economically viable entities whether or not in the course of doing so, they operate or create a firm (Baumol, 1993). Also, a small firm serves as agents of change because of their entrepreneurial activity and playing an important role in the economy. They create an important share of new jobs and source of considerable innovative activity, stimulating industry evolution and are key references because of their innovative activity.

The empirical research of entrepreneurship role has a driving force of economic development. CHALLENGES OF ENTREPRENEURSHIP When a small number of people are involved, as is usually the case with start-ups, they all share the same vision, beliefs and goals. But once a company starts growing, a proper system needs to be worked out so that everyone working for it remains on the same page. Defining a clear vision and mission becomes very important, but this is often not done. There is also the pitfall of execution. In entrepreneurial companies, much work gets done without being formally recorded.

Inherently, a small group shares more information and has greater clarity about the company’s plans than the rest. But as the company grows, such informality has to be replaced by processes, technology and internal communication. Resources – both money and people – present their own challenges. Entrepreneurs often bootstrap their companies and use the same philosophy for scaling up. This needs to change. Execution plans must be adequately funded for people to execute and deliver as expected. The key to scaling up is to scale up the organization’s capabilities.

Once this is done, the scaling up in terms of performance, revenue and profitability will automatically follow. There are also family challenges as convincing to opt for business over job is not an easy task due to the mind set of Indians. The first thing compared is the money aspect. Thus it becomes almost impossible to convince the family. Social challenge is also one of the factor that act as a challenge. For instance, two individual who has passed out from the same year; one opt for business whereas other opts for job, then initially there is high revenue generated by the one who opts for job.

Technological challenge is also an important challenge to be looked at because availability of updated technology in India is difficult as well as skilled work force to work with that technology is difficult to find. There is also difficulty in borrowing fund if one takes up as an entrepreneur. Due to fluctuation of ruling Government parties the rules and regulations also act as a major challenge for entrepreneurship. CONCLUSION Entrepreneurship plays a major role in the development and economic growth of the developing countries like india, China, etc. nd under developed countries. But for sustainable achievement by entrepreneurship, there must be assistance and encouragement from Government in terms of policy generation and rules and regulations for the business. In India, Government believes that by giving the benefits to the micro, small and medium enterprises (MSMEs), Finance minister P. Chidambaram today proposed a number of measures including, non tax benefits for three years to MSMEs, more funds to SIDBI to support refinancing and factoring, extension of Technology Fund Scheme (TUFS) for textile industry, fund of Rs. 200 crore for tool-room and technology development and loan at 6 percent interest rate for hand-loom weavers. This encourages the skilled work force to undertake their own power looms and will generate more revenue which has a high contribution in the economic growth. Thus, though there are lot of challenges faced by an entrepreneur, but they are dominated by the benefits obtained through entrepreneurship and more individuals undertake small or micro enterprises.

REFERENCES Nazir, M.. (July, 2012). CONTRIBUTION ON ENTREPRENEURSHIP IN ECONOMIC GROWTH. Available: http://journal-archieves20. webs. com/273-294. pdf. Last accessed 12th March 2012. (2013). Budget 2013: Benefits to MSME sector. Available: http://www. smetimes. in/smetimes/news/top-stories/2013/Feb/28/budget-2013-benefits-to-msme-sector628838. html. Last accessed 13th March 2013. Santhi, N and Rajesh Kumar, S. (Dec-2011). Entrepreneurship Challenges and Opportunities

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