7/21/2019 sazid.doc

1/10

LITERATURE REVIEW

Submitted to

Jiwaji University, wa!ior

"#$T#R #% &'IL#S#&'(

In

)A*AE)E*T

Under t+e %au!ty o- )ana.ement

Su/ervisor Submitted by

"r0 Swarna &armar Anura. $+ourasiya

Assistant Professor Research Scholar

SOS in Management, Jiwaji University

Gwalior (M.P.

7/21/2019 sazid.doc

2/10

&ur/ose o- t+e Study

!e always say that o"r co"ntry is #evelo$ing an# growing %"t it is tr"e or not, $rime

minister &aren#ra Mo#i Ji is saying 'mae in )n#ia* an# + $rime minister Shri Atal -ihari

-aj$ai sai# shining )n#ia. -"t one "estion arises how it is $ossi%le then one wor# comes in the

min# which is change# the co"ntries or worl# that is '+ntre$rene"rshi$* an# the wor#

entre$rene"r %ring to o"r min#s image of %"siness tycoons lie /ata or 0 & Mittal. 1ow are they

#ifferent from others2 /he only answer is their entre$rene"rshi$.

/he st"#y of entre$rene"rshi$ is essential not only to solve the $ro%lem of in#"strial

#evelo$ment %"t also to solve the $ro%lems of "nem$loyment, "n%alance# areas #evelo$ment,

concentration of economic $ower an# #iversion of $rofits from tra#itional aven"es of

investment. )n this %ac#ro$, the $resent st"#y attem$ts to get insights to review, in %rief, the

evol"tion of the conce$t of entre$rene"rshi$, the #efinition of small scale enter$rises an# also to

study t+e sma!! sa!e entre/reneurs+i/ and main /ur/ose o- t+e study is to identi-y t+e

/rob!ems -ain. by t+e entre/reneurs, investi.ate t+e +ow to so!ve it and justi-y t+e

statement o- ma1e in India0

7/21/2019 sazid.doc

3/10

Review o- Literature

7/21/2019 sazid.doc

4/10

2A$3R#U*" 'IST#R(

/he wor# 'entre$rene"r* is #erive# from the 3rench ver% 'entre$ren#re*, means 'to

"n#ertae*. /he wor# entre$rene"r has %een in "se since the siteenth cent"ry. 4il%y has line#

the entre$rene"r with a rather large an# very im$ortant animal calle# '1effal"m$* h"nte# %y

many in#ivi#"als an# have vario"sly #escri%e# him, %"t wi#e #isagreements still eist among

them on his $artic"larities (Peter 4il%ly, 5675. /he 3rench men who organi8e# an# le# military

e$e#itions were referre# to as 'entre$rene"rs* (Peterson, 569:.Aro"n# 57;; A.th cent"ries of Richar# Eantillon an# A#am Smith,

which was fo"n#ational to classical economics.

)n the :;th cent"ry, entre$rene"rshi$ was st"#ie# %y Jose$h Sch"m$eter in the 56B;s an#

other A"strian economists s"ch as Earl Menger, 0"#wig von Mises an# 3rie#rich von 1aye.

/he term Fentre$rene"rshi$F was coine# aro"n# the 56:;s, while the loan from 3rench of the

wor# entrepreneur#ates to the 5>;s.

)nitially, economists ma#e the first attem$t to st"#y the entre$rene"rshi$ conce$t in

#e$th Richar# Eantillon (59>;D57B consi#ere# the entre$rene"r to %e a ris taer who

7/21/2019 sazid.doc

5/10

#eli%erately allocates reso"rces to e$loit o$$ort"nities in or#er to maimi8e the financial

ret"rn. Eantillon em$hasi8e# the willingness of the entre$rene"r to ass"me ris an# to #eal with

"ncertainty. /h"s, he #raws attention to the f"nction of the entre$rene"r, an# #isting"ishes

clearly %etween the f"nction of the entre$rene"r an# the owner who $rovi#es the money. Alfre#

Marshall viewe# the entre$rene"r as a m"ltiDtasing ca$italist. 1e o%serve# that in the

e"ili%ri"m of a com$letely com$etitive maret, there was no s$ot for 'entre$rene"rs* as an

economic activity creator.

7/21/2019 sazid.doc

6/10

I*TR#"U$TI#*

+ntre$rene"rshi$ can %e viewe# as a creative an# innovative res$onse to the environment an# an

a%ility to recogni8e, initiate an# "tili8e an economic o$$ort"nity. An entre$rene"r is an innovator

who intro#"ces something new in an economy. +ntre$rene"rshi$ is #oing things that are

generally not #one in the or#inary co"rse of %"siness. )nnovation may %e inC intro#"cing a new

man"fact"ring $rocess that has not yet %een teste# an# commercially e$loite#, intro#"ction of a

new $ro#"ct with which the c"stomers are not familiar or intro#"cing a new "ality in an

eisting $ro#"ct, locating a new so"rce of raw material or semi finishe# $ro#"ct that was not

e$loite# earlier, o$ening a new maret, till now "ne$loite#, where the com$any $ro#"cts were

not sol# earlier, #evelo$ing a new com%ination of means of $ro#"ction. )nnovation involves

$ro%lem solving an# an entre$rene"r is a $ro%lem solver. An entre$rene"r #oes things in a newan# a %etter way. A tra#itional %"sinessman woring in a ro"tine manner is not entre$rene"rial.

)nnovation lea#s to the #ynamics that governs the interaction %etween science, in#"stry, an#

society. )nnovative organi8ation wants m"st have to $re$are for renewing the offerings an# its

#elivery $rocess to its staehol#ers to s"rvive in to#ay@s glo%alise# worl#. /he st"#y will also

incl"#e eam$les of innovative entre$rene"rs an# how the innovation in $ro#"ctsHservices hel$s

the %"siness in s"rvival an# growth in $resent glo%alise# maret $lace.

*eed -or Entre/reneurs+i/Entre/reneur Traits

Suess-u! Entre/reneur

T+e "i--erentia! Im/ats o- *eessity and #//ortunity Entre/reneurs+i/4

!e are now in a $osition to at least give a tentative answer to o"r "estion, '1ow is

entre$rene"rshi$ goo# for economic #evelo$ment2* /he answer #e$en#s clearly on what one

means %y entre$rene"rshi$. )f one means selfDem$loyment, either in agric"lt"re or very smallD

scale in#"stry, then in most cases entre$rene"rshi$ will not lea# to economic #evelo$ment

%eca"se there is no mechanism to lin the activity to #evelo$ment. )n fact, we now that selfD

em$loyment #eclines as economies %ecome more #evelo$e#. )t is only when economies are a%le

to remove $eo$le from selfDem$loyment that we start to see an increase in #evelo$ment. As more

an# more of the $o$"lation %ecomes involve# in o$$ort"nity entre$rene"rshi$ an# as more an#

7/21/2019 sazid.doc

7/10

more $eo$le leave necessity entre$rene"rshi$ (self em$loyment, the more we see rising levels of

economic #evelo$ment.

/ra#itional analyses of economic #evelo$ment ten# to foc"s on large cor$orations an#

neglect the innovations an# com$etition that small startD"$s contri%"te to the overall economy.

3or large cor$orations, the a%ility to affect national economic growth is infl"ence# %y general

%"siness con#itions, s$ecific to each co"ntry. /hese cor$orations infl"ence economic growth

$rimarily thro"gh the constr"ction of new $lants, which in t"rn creates jo% o$$ort"nities. )n

a##ition, when an ol# $lant is re$lace#, new technologies are a$$lie# in the new $lant, res"lting

in increase# $ro#"ctivity. /he new $lants that $ositively affect the national economy in this way

can %e %"ilt %y #omestic firms or %y m"ltinational enter$rises. 3or $otential entre$rene"rs, the

#ecision whether to start a %"siness is infl"ence# %y a##itional characteristics within the eisting

%"siness environment. /hese are referre# to as +ntre$rene"rial 3ramewor Eon#itions. /he

con#itions com$rise a co"ntry@s ca$acity to enco"rage startD"$s, com%ine# with the sills an#

motivations of those who wish to go into %"siness for themselves. /ogether, these two con#itions

affect the economics of the entre$rene"rial $rocess. !hen s"ccessf"lly com%ine#, these

con#itions will lea# to offshoot %"sinesses, which in t"rn will increase innovation an#

com$etition within the maret $lace. /he en# res"lt is a $ositive infl"ence on national economic

growth. /aing into acco"nt the #ifferent economic environments that affect these two gro"$s of

$layers in the %"siness worl#, we foc"s on the com$lementary nat"re of the mechanisms among

large an# small firms. -y #efining these mechanics, we lin the nation@s economic growth to the

inter$lay of entre$rene"rshi$ an# eisting %"sinesses. /his o$ens the #oor to a clearer

"n#erstan#ing of why entre$rene"rshi$ is vital to the larger economy.

/he relationshi$ %etween entre$rene"rshi$, cor$orations, an# economic #evelo$ment is

com$le. -y a$$lying this mo#el to a nation@s economy, im$ortant concl"sions can %e #rawn. A

nation@s economic #evelo$ment #e$en#s on s"ccessf"l entre$rene"rshi$ com%ine# with the force

of esta%lishe# cor$orations. 1owever, the %eneficial val"e of this mechanism varies with the

national income, as meas"re# %y G

7/21/2019 sazid.doc

8/10

esta%lishe# firms to satisfy the increasing #eman# of growing marets an# to increase their

relative role in the economy.

7/21/2019 sazid.doc

9/10

REVIEW #% LITERATURE

Iahar Pearce (566; state# that the choice of str"ct"re an# $rocess will infl"ence an#

constrain f"t"re strategic #ecisions.

Milten%"rg (566 e$an#e# "$on this a$$roach %y com$aring how layo"t, material flow,

$ro#"ct vol"me an# variety affecte# cost, "ality, an# flei%ility in #ifferent highDlevel system

#esigns (jo% sho$, e"i$ment $ace# line, etc.

Malga !eer (5667 fo"n# the lac of infrastr"ct"re as a general $ro%lem. /he in#"strial estate

alone cannot overcome the vocational #isa#vantages. /he infrastr"ct"re facilities are either very

wea or noneistent in r"ral areas. )n "r%an areas with necessary in#"strial climate an#

infrastr"ct"re facilities, the growth of in#"stries is relatively faster. /he scarcity of in#igeno"sraw materials has %een a serio"s %ottlenec. Scarce raw materials s"$$lie# thro"gh "otas are

not s"fficient to meet the #eman#s of the "nits. /here is a #elay in the #is%"rsement of the loans

#"e to the eistence of $roce#"ral #elays an# instances of tangi%le sec"rities.

-ehari -e$in (5667 eamine# the $ro%lems, $ossi%ilities an# $ers$ectives of r"ral

in#"striali8ation an# #isc"sse# the crises in )n#ian villages an# the nee# for the new strategy of

r"ral in#"striali8ation an# the $rovision of f"ller em$loyment in r"ral an# small scale in#"stries

an# technologies. 1e trace# o"t agric"lt"ral #evelo$ment enco"ragement to village an# small

scale in#"stries an# general awareness for incor$orating a$$ro$riate technologies as $rinci$al

so"rces of im$et"s to the $rogramme of technological transformation in r"ral )n#ia. 3"rther he

reviewe# vario"s meas"res "n#ertaen %y the Government towar#s r"ral in#"striali8ation, local

in#"strial growth, an# agroD%ase# in#"stries, an# miniDr"ral cement $lants, "tili8ation of ann"al

waste an# harnessing of nat"ral $ower.

Minocha%in A.E. (5667 s"ggeste# that the strategy of em$loyment oriente# in#"striali8ation

sho"l# aim at the #evelo$ment of SS) in r"ral areas.

7/21/2019 sazid.doc

10/10