Ajayshashikiran 21

ENTREPRENEURSHIP
Entrepreneurship: Concepts &

Definitions
“Entrepreneurship is the process of creating
something new with value by devoting the
necessary time and effort, assuming the
accompanying financial, psychic, and social
risks, and receiving the resulting rewards of
monetary and personal satisfaction of
independence.”… Robert Hisrich
Definitions
“Entrepreneurship is an act of initiative, drive,

commitment, diligence, perseverance,
organized effort, and achievement outlook, to
undertake some specific functions of performing
productive activities and the capacity to bear
and associated with the investment”.
Economic Policy Paper on Entrepreneurship Development
through Educational Reform.
Definitions (The Revised GEM Model)
Basic Requirements:
Institutions Infrastructure
Economic Stability
Health & Primary Education Entrepreneurship
Efficiency Enhancer: Attitudes:
Perceived Opportunity
Higher Education & Training Activity:
Goods & Labour Market Early Stage
Efficiency Aspiration:
Financial Market Growth
Innovation & Entrepreneurship:
Entrepreneurial Finance
National Economic Growth
Entrepreneurship Education (Jobs &Technical Innovations)
R& D Transfer etc
Entrepreneurship: The Importance
 Central to the development of economy
 The micro and small enterprises (MSEs)
constitute over 90% of total enterprises in most
of the economies.
 Employment generation
 MSE sector accounts for about 39% of the
manufacturing output and around 33% of the
total export of the India (in term of value).
Ministry of MSME-GOI
Entrepreneurship: The Importance
 ‘The nation that fosters an infrastructure of
linkages among and between firms, universities
and government gains competitive advantage
through quicker information diffusion and
product deployment’..US Council on Competitiveness 1998
 ‘Leading knowledge based economy in the
World’ (Lisbon Council) and key issue for the EU
is to build a ‘climate in which entrepreneurial
initiative and business activity can thrive’.. green
paper on entrepreneurship- EC Commission-2003
Concept of entrepreneurship
Entrepreneur => Entrepreneurship => Enterprise
 (person) (process) (object)
 E-ship is a propensity of mind to take calculated risks with
confidence to achieve a pre-determined business objective.
 E-ship is the risk taking ability of an individual coupled with
correct decision making.
Prerequisites of Entrepreneurship
 Creative mind, Risk taking capacity and

Need to achieve (Most important factors)
 Support of infrastructural facilities and

cultural acceptance & recognition
Entrepreneurial Initiatives in India
 Institutes of national importance that have been setup
through an act of parliament (IITs, IIMs, NITs, AIIMS,
IISc etc.) are the main leaders in the field of knowledge
transfer.
Examples:
o Organizing Competitions like “Great Idea”, helping
and incubating ideas.
o IIT Kharagpur: Nina Saxena Excellence in Technical
award (Yearly).
Entrepreneurial Initiatives in India-
“Top Incubation Center”
1. Centre for Innovation, Incubation&
Entrepreneurship (CIIE) - IIM Ahmedabad
 Set up in 2001
 Since inception CIIE has 15-odd innovations grow out of the
incubation centre in varied technologies
2. Society for Innovation and Entrepreneurship
(SINE)- IIT Bombay
 Set up in 2004
 It currently has 16 companies under its incubation programme
3. Cell for Tech Innovation, Development &
entrepreneurship support- IIT Chennai
 Set up in 2000
 Organises national level competitions, ‘Breakthrough’ (general
business plan competition) and ‘Genesis’ (social
entrepreneurship plan competition)
4. Society for Innovation and Development (SID) -
IISc, Bangalore
 Set up in 2006
 The investigator is given a seed capital for Rs 20 lakh a year
for two years as soft loan for the approved plan
5. The SP Jain Centre for Entrepreneurship
Development- SPJIMR
 16-week 'Start Your Own Business' programme-a public
programme held every six months.
6. Technology Business Incubator (TBI) - BITS
Pilani
 In association with DST, BITS has established Technology
Business Incubator in the area of embedded systems and VLSI
design back in 2004
 So far, TBI has helped spawn ten companies.
7. Technology Incubation and Entrepreneurial
Training Society (TIETS) – IIT Kharagpur
 Set up in 2005, So far, the institute has been able to incubate
two companies through ‘Concipio’ over the last three years.
Besides, an in house panel has helped 11-12 ventures take
wing
8. Nirma Labs, Nirma University, Ahmedabad
 Established in 2004, Nirma Labs used to pride itself in a three-
step model for students who were interested to start their own
businesses-training, incubation and funding.
“Industry-Academia Interface”
 Biocon Ltd and Indian School of Business (ISB)
have launched a cell for innovation
management.
 Hewlett-Packard (HP) India recently announced
the winners of the second annual edition of ‘HP
innovate 2009’. The award has been instituted
to recognise and reward outstanding creative
ideas of young engineering graduates in India
 Month long ‘Igniting Minds and Ideas’-IEEE
certification programme by the Delhi based ISO
certified strategy consulting firm ‘Total Solutions
Incorporation’ (TSI) and ‘Total Resource
Academy of India (TRAIN)’ a knowledge
management , training and development
organisation held for students of Delhi Public
School (DPS), R K Puram.
 The National Geographic Channel recently
announced a Nationwide contest ‘shaping the
future’ with the collaboration of the Foundation
for Information & Technology Transfer at IIT-
Delhi; Society for Innovation & Entrepreneur at
IIT-B, Nedathur S Raghvan Centre for
entrepreneurial Learning (NSR-CEL) at IIM-B and
the Technopreneur Promotion Programme at the
Department of Scientific and Industrial Research
DSIR
“Government and Non Government Support”
 Delhi Technical University announced the setting up of
water technology and management centre with the
support of UNESCO.
 The Entrepreneurship Development Cell (EDC) of
University School of management Studies, Guru Gobind
Singh Indraprastha University (GGSIPU) has launched a
one month business skill development programme in
association with the Ministry of Micro, Small and
Medium Enterprises. Representatives from KVIC,
NABARD will share their knowledge.
“Government and Non Government Support”
 NASSCOM has signed a Memorandum of
Understanding (MoU) with University Grants
Commission (UGC), for
 Faculty Development Programme (FDP)
 Re-skilling the faculty in IT
 Framework for co-operation to catalyze industry-
academia interface
“The National Entrepreneurship Network (NEN)”
The National Entrepreneurship Network (NEN)
is a network of academic institutions across
India performing research & developing and
delivering world-class education, skill-building
programs, networking activities and company-
starting assistance to new, high-growth
entrepreneurs.
“The National Entrepreneurship Network (NEN)”
 NEN was launched in 2003 through an India-wide
selection process to select the Founding Partner
Institutions to anchor this network. The five NEN
Partners are:
 Birla Institute of Technology and Science- Pilani
 Indian Institute of Technology- Bombay
 Indian Institute of Management- Ahmedabad
 Institute of Bioinformatics andApplied Biotechnology- Banglore
 S P Jain Institute of Management andResearch- Mumbai
 Goal:
 NEN’s goal is to launch 2,500 entrepreneurs who will create a
minimum of 500,000 jobs by 2014.
Knowledge Transfer : Problems Faced
(Status of Entrepreneurship & Higher Education)
 India is ninth in the Global Entrepreneurship
Monitor (GEM) survey of entrepreneurial countries
 It is highest among 28 countries in Necessity
based entrepreneurship, while 5th from the lowest
in opportunity based entrepreneurship.
 Entrepreneurship in India is basically necessity
based. Number of individuals taking
entrepreneurship as a career choice is much lower
as compared to forced entrepreneurs
 Universities and Colleges: (in 2007)
 Universities: 378 NAAC Accredited: 140
 Colleges: 18064 NAAC Accredited: 3492
UGC-NAAC (Panning Commission Vol. 2 p-22)
Despite such growth, India’s Gross Enrolment Ratio

(GER) of around 11% is very low compared to the
World average of 23.2%, 36.5% for countries in
transition, 54.6% for the developed countries, and
22% for Asian countries.
 38.8% of the Indian labour force is illiterate,
24.9% of the labour force has had schooling up
to the primary level and the balance 36.3% has
had schooling up to the middle and higher
level.
 About 80% of the workforce in rural and urban
areas does not possess any identifiable
marketable skills.
 Times Higher - QS World University Rankings 2008
(on the dimensions: Research Quality, Teaching quality,
Graduate Employability, International Outlook):
 No Indian University in the top100 universities of the world.
 US- 37, UK-17 and China-5 Universities in top 100 universities
of the world
 IIT- Delhi: 154th position. IIT-B: 174th, IIT-K: 242nd, Delhi
University: 274
Training & Research
 Global Entrepreneurship Monitoring report (GEM-08):
Positive relationship between training in starting a
business and entrepreneurial attitudes, aspirations and
activity.
 The proportion of individuals who had received any
training in starting a business, either in school or after
school, varied from
 40% in Colombia to 8% in Egypt (among factor driven countries)
 43% in Chile to 6% in Turkey (among efficiency driven countries)
 48% in Finland to 13% in Israel (among innovation driven countries)
Training & Research
 Our education system lacks encouragement for short
term and useful vocational training courses and research.
 We take 7.5 lakh engineers on an average every year but
only a handful approx 4000 opt for research.
 India spent 6% of GDP on education while China 10%
and Malaysia 10%.
 India accounts for less than 2% of the world publications
in the areas of science and technology research.
Training & Research
 Proportion of trained youth in India is one of the lowest
in the world. The corresponding figures for
industrialized countries are much higher, varying
between 60% and 96% of the youth in the age group
of 20–24 years.
 One reason for this poor performance is the near
exclusive reliance upon a few training courses with long
duration (2 to 3 years) covering around 100 skills. In
China, for example, there exist about 4000 short
duration modular courses which provide skills
Course Curriculum
 NCERT has introduced new subjects like
heritage crafts, creative writing and translation,
computer and communication technology,
human ecology and family studies, but there
are few takers of these courses.
 The admission procedure for the first year at
colleges have remained as rigid as they were,
reinforcing the rigidity of the class XII
examination.
Course Curriculum
 Average Indian students are generally hard-working but
they lack research orientation. Average American
University relies heavily on self-discovery, reflection,
open ended questions and analysis.
 These concerns have also been raised by National
Curriculum Framework (NCF-2005). It poses three
key challenges: Linking the child’s life at home with
learning at school, Discouraging rote learning and
moving beyond the textbook.
Faculty, Infrastructure & Society
 There is shortage of quality teachers in India.

Faculty are generally not available in the
universities and they lack research orientation.
The student teacher ratio is too high which
hinders the personal monitoring and guidance
from faculty.
 Even today 9-5 jobs people are treated with
added respect than a starter of a business.
Faculty, Infrastructure & Society
 Procedural simplicity to start a business is a great

motivation factor for Easiest Rank Most Difficult Rank
Australia 1 Syria 169

entrepreneurs
Canada 2 Haiti 170
New 171
3
Zealand Guinea
United 172
4
States Equatorial
Ireland 5 Angola 173
United 174
6
Kingdom Eritrea
Puerto 7 Yemen 175
Mauritius 8 Togo 176
Singapore 9 Chad 177
Guinea- 178
10
Georgia Bissau
Approach to Higher Education &
Knowledge Transfer
 The functioning of Indian universities has to be
reformed (Yash Pal committee report and the
Knowledge Commission recommendations)
“Since a vast majority of our graduates are
getting taught in colleges that are affiliated to
some university, it should be clear that if the
quality of higher education is to be improved,
this system of affiliating university has to be
reformed.”
Knowledge Transfer
 Entrepreneurship needs to be taught in schools and
colleges. They should be encouraged to consider
entrepreneurship as one of the career option
 India National Knowledge Commission (NKC) was
constituted on June 13, 2005 by Prime Minister
Manmohan Singh to advise the PM to encourage
innovation led growth and improve the state of
research in India.
Knowledge Transfer
 Indian government initiatives to make Indian higher
education innovation oriented:
 The government plans to set up 14 innovation
universities over the next few years.
 For this the ministry for human resource
development is keen to tie up with the world’s
leading universities (Like Yale, Standford and MIT)
to ensure that its “innovation universities” are a
class apart from the pack.
Knowledge Transfer
 Societal sentiment towards entrepreneurship can be
changed by increasing literacy rate among the population
of India. Government has put emphasis on these aspects
in twelfth plan paper “We should aim to increase the GER
to 21% by the end of the Twelfth Plan.”
 Evolve suitable eco-system for the promotion of
entrepreneurship: Easing of financing the project, suitable
changes in labour laws, company law and taxation.
 Government should also help open various
entrepreneurship cells in schools and colleges.
Knowledge Transfer
 Educational institutions can be setup near the
research facilities.
 Greater industry-academia interface in the
education system.
 Universities should have separate research and
innovation wing. Universities should provide the
necessary resources required for spin off and
incubation.
Knowledge Transfer
 The idea of creating National Higher Education
Finance Corporation by HRD ministry can be
said a step taken in right direction. It will also
provide venture capital to a university to
incubate any scientific or technological idea or
product that has emerged as an outcome of
any research undertaken by the university.
Knowledge Transfer
 University should encourage flexibility in their
course curriculum. It should be adaptive and
relevant. Problem solving, project based academic
curriculum right from elementary school all the way
through college and university education.
 People from business and industry can be engaged
on course programme advisory committee.
Companies can also work as an advisory capacity
with universities to provide appropriate inputs.
Knowledge Transfer
 Education system must also be corruption free.
 Patent regime can also encourage the
innovation in universities. After 2005, since the
time India has agreed to recognised product
patents as per WTO-TRIPS agreement, the
research activities has increased.
 A good qualified research oriented Mentor is
must for the Knowledge transfer process.
Knowledge Transfer: Importance of a Mentor
 Mentors are the linking pin between the idea germination
& business conception and one of the very important
constituents of the entrepreneurship process. A mentor
can ease the process of building up a business from
scratch.
 Faculty acting as mentor must have research orientation
and experienced enough to judge the soundness and
feasibility of the idea.
 He should not only be capable of giving a vague idea into
a concrete concept, but also terminating an idea if he or
she happens to be unclear about the business’ objective
and the method of execution.
Knowledge Transfer
Importance of a Mentor
One thing is quite clear. A mentor can ease the process
of building up a business from scratch. When 20-year
old Kolkata-based Karan Walia attended a one-month
management and entrepreneurship course at the
London School of Economics in August last year, he
was heavily influenced by Ian Richardson, a faculty
member at LSE. Even before his plane had landed in
Kolkata, he was determined to start a brokerage on his
own.
Menon, N., “Class room CEOs” Economic Times, 13 June 2008, p11
Conclusions
 Universities must act as the center of research and
knowledge development.
 Universities have to accept greater responsibilities and
challenges.
 Able mentors.
 Creating synergy with greater industry- academia
interface.
 Building entrepreneurial culture in the education system
right from secondary to higher education.
 Infrastructural support.
Thank You

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ENTREPRENEURSHIP

Entrepreneurship: Concepts &

“Entrepreneurship is an act of initiative, drive,

 Creative mind, Risk taking capacity and

 Support of infrastructural facilities and

Despite such growth, India’s Gross Enrolment Ratio

 There is shortage of quality teachers in India.

 Procedural simplicity to start a business is a great

Australia 1 Syria 169

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