WRITE AN ESSAY ON THE GROWTH OF ENTREPRENEURSHIP IN INDIA

INTRODUCTION:ENTERPRENEUR An entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an opportunity for different business of service. To put it very simply an entrepreneur is someone who perceives opportunity, organizes resources needed for exploiting that opportunity and exploits it. Laptops, mobile phone, Motor Bikes, Credit Cards, Courier Service, and Ready to eat Foods are all examples of entrepreneurial ideas that got converted into products or services. ENTREPRENEURSHIP: A systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation. Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is a creative human act involving the mobilization of resources from one level of productive use to a higher level of use. "It is the process by which the individual pursue opportunities without regard to resources currently controlled."Entrepreneurship involves a willingness to take responsibility and ability to put mind to a task and see it through from inception to completion. Another ingredient of entrepreneurship is sensing opportunities, while others see chaos, contradiction, and confusion. Essence of Entrepreneurship is going against time with maturity and servings a change agent. Entrepreneurship is considered to be a significant dtmin a n t o f e c o n o m i c development. New entrepreneurial activities play a vital part in the process of Creative destruction fosters innovation, employment, and growth. While India has traditionally been an entrepreneurial country, it fares poorly in numerous global studies exploring the entrepreneurial and business potential of countries but, on the other hand on the most conservative basis, our domestic consumption, in virtually any s ector, has the potential to at least double, or treble, from current levels perhaps, just to catch up with a country like China. Then, there is the entire global opportunity, across diverse sectors internationally; the "Made in India" tag is now an increasingly respected brand, valued for quality, reliability, and competitiveness. Truly, with economic reforms in the country, and with the virtual removal of all trade barriers, the world is now our market and our opportunity. The pursuit of these opportunities requires an indomitable spirit of entrepreneurship. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail.

GROWTH OF ENTREPRENEURSHIP IN INDIA The proper understanding of the growth of entrepreneurship of any country w o u l d evolve within the context of the economic history of the particular country becomes thesubject matter of this section. The growth of entrepreneurship in India is, therefore, presented into two sections viz. Entrepreneurship during Pre-Independence Entrepreneurship during Post-Independence ENTREPRENEURSHIP DURING PRE-INDEPENDENCE The evolution of the Indian entrepreneurship can be traced back to even as early asRigveda, when metal handicrafts existed in the society. This would bring the point homethat handicrafts entrepreneurship in India was as old as the human civilization itself, andwas nurtured by the craftsman as a part of their duty towards the society. Before Indiacame into contact with west, people were organized in a particular type of economic ands o c i a l s ys t e m o f t h e v i l l a g e c o m m u n i t y. T h e n , t h e v i l l a g e c o m m u n i t y f e a t u r e d t h e economic scene in India. The Indian towns were mostly religious and aloof from thegeneral life of country. The elaborated cast based diversion of workers consisted of f a r m e r s , a r t i s a n s a n d r e l i g i o u s p r i e s t s . T h e m a j o r i t y o f t h e a r t i s a n s w e r e t r e a t e d a s village servants. Such compact system of village community effectively protectingvillage artisans from the onslaughts of external competition was one of the important contributing factors to the absence of localization of industry in ancient [Link], organized industrial activity was observable among the India artisans in a fewrecognizable products in the cities of Banaras, Allahabad, Gaya, Puri & Mirzapur whichwere established on their river basins. Very possibly this was because the rivers servedas a means of transportation facilities. These artisan industries flourished over the period b e c a u s e t h e R o ya l p a t r o n a g e w a s to them to support them. The workshops calledkharkhanas came into existence. The craftsmen were br o u g h t i n t o a n a s s o c i a t i o n pronounced as guild system. On the whole, perfection in art, durability beyond doubtand appeal to the eye of the individual were the distinguishing qualities inherent in theIndian craftsmanship that brought much everlasting laurels of name and fame of theillustrious India in the past. To quote, Bengal enjoyed worldwide celebrity for Corah,Lucknow for chintzes, Ahmadabad for dupttas, and dhotis, Nagpur for silk boardedcloth, Kashmir for shawls and Banaras for metal wares. Thus, form the immemorial tillthe earlier years of the 18th century, India enjoyed the prestigious status of the queen of the international trade with the help of its [Link], so much prestigious Indian handicraft industry, which was basically a c o t t a g e a n d s m a l l s e c t o r , d e c l i n e d a t t h e e n d o f t h e 1 8 th century for various [Link] may be listed [Link] of the Indian royal courts who patronized the crafts [Link] lukewarm attitude of the British colonial govt. towards the Indian [Link] of heavy duties on the imports of the Indian goods in [Link] priced British made goods produce on large scale which reduced the competing capacity of the product of the Indian [Link] of transport in

Indian facilitating the easy access of British producteven to far-flung remote part of the country [Link] in the tastes and habits of the Indian, developing craziness of foreign [Link] of the Indian craftsmen to adapt to the changing tastes and needsof the [Link] scholars hold the view that manufacturing entrepreneurship in India emerged ast h e l a t e n t a n d m a n i f e s t c o n s e q u e n c e o f e a s t I n d i a c o m p a n y a d v e n t i n I n d i a . T h e company injected various changes in the Indian economy th r o u g h e x p o r t o f r a w materials and import of finished goods in India. Particularly, the parsis established goodrapport with the company and were much influenced by the companys commercialoperations. The company established its first ship building industry in Surat where from1 6 7 3 o n w a r d s t h e p a r s i s b u i l t v a s s a l s f o r t h e c o m p a n y. T h e m o s t i m p o r t a n t w a s shipwright Lowjee Nushirvan, who migrated to Bombay around 1935. He belonged to aW a d i a f a m i l y w h i c h g a v e b i r t h t o m a n y l e a d i n g s h i p - b u i l d e r s o f B o m b a y. I n 1 6 7 7 , Manjee Dhanjee was given a contact for building the first large gun powder mill inB o m b a y f o r t h e e a s t I n d i a c o m p a n y . B e s i d e s , a P a r s i f o r e m a n o f a g u n f a c t o r y belonging to the company established a steel industry in Bombay in 1852. On the basiso f t h e s e f a c t s , i t c a n b e s t a t e d t h a t t h e e a s t I n d i a c o m p a n y m a d e s o m e c o n t r i b u t i o n towards entrepreneurial growth in India. But whether the company did it deliberately for the growth of entrepreneurship in India or it was just a coincident that people came in c o n t a c t with the company and entered the manufacturing, nothing can be said w i t h [Link] actual emergenced of manufacturing entrepreneurship can be noticed in the secondhalf of the 19th century. Prior to 1850, some stay failure attempts were, indeed , made bythe Europeans to setup factories in India. In the beginning, the Parsis were the founder manufacturing entrepreneurs in [Link] chotalal, a Nagar Brahman, was the first Indian to think of setting up thetextile manufacturing on the modern factory lines in 1847, but failed. In his secondattempt, he succeeded in setting up a textile mill in 1861 at Ahmadabad. But beforethis, the first cotton textile manufacturing unit was already setup by a Parsi, Cowasjee Nanabhoy Dabar in Bombay in 1854 fallowed by Nawrosjee wadia who open his textilemill in Bombay in 1880. The credit for the expansion of textile industries upto 1915goes to the Parsis. Out of 96 textile mills existing in 1915, 43% (41) were set up by parsis, 24% (23) by Hindus, 10% (10) By Muslims and 23% (22) by British [Link], the Parsis invaded other fields, mainly iron and steel industry, also JamshedjeeT a t a w a s t h e f i r s t P a r s i e n t r e p r e n e u r w h o e s t a b l i s h e d t h e f i r s t s t e e l i n d u s t r y i n Jamshedpur in [Link] the first wave of manufacturing entrepreneurship, except parsis, all others hailed fromnon-commercial communities. Why the well-known commercial communities, namely,J a i n s a n d V a i s h ya s o f A h m a d a b a d a n d B a r o d a , l a g g e d b e h i n d i n e n t r e p r e n e u r i a l initiative throughout the nineteenth century can be explained by two factors. Firstly, theimprovement of business climate in the countryside during this period results in anincrease in the quantum of trade which assumed quick returns on investments. This proves the commercial activity more lucrative during the period, Secondly; it can also beattribute to their conservative attitude to change from commercial entrepreneurship toindustrial [Link] Swadeshi

campaign, i.e., emphasis on indigenous goods, provided, indeed, a proper seedbed for inculcating and developing nationalism in the country. It was the influenceof Swadeshi that Jamshedji Tata even named his first mill 'Swadeshi Mill'. The spirit of indigenousness strengthened its roots so much in the country that the Krishna Mills in itsa d v e r t i s e m e n t o f T r i b u n e o f A p r i l 1 3 m a d e t h e f o l l o w i n g a p p e a l : " O u r c o n c e r n i s financed by native capital and is under native management throughout"."The second wave of entrepreneurial growth in India began after the First World [Link] various reasons, the Indian Government agreed to 'discriminating' protection toc e r t a i n i n d u s t r i e s , e v e n r e q u i r i n g t h a t c o m p a n i e s r e c e i v i n g i t s b e n e f i t s s h o u l d b e registered in India with rupee capital and have a proportion of their directors as [Link] advantages of these measures were mostly enjoyed by the Indians. The Europeansfailed to harness the protectionist policies to their interests." These measures helped ine s t a b l i s h i n g a n d e x t e n d i n g t h e f a c t o r y m a n u f a c t u r i n g i n I n d i a d u r i n g t h e f i r s t f o u r decades of the twentieth century. During these decades, the relative importance of Parsisd e c l i n e d a n d G u j a r a t i s a n d M a r w a r i V a i s h y a s g a i n e d t h a t p e n d u l u m i n I n d i a ' s entrepreneurial [Link] emergence of Managing Agency System which made its own contribution to the Indian entrepreneurship can be traced back to 1936 when Carr, Tagore & Co. assumedthe management of Calcutta Steam Tug Association. The credit for this initiation goesto an Indian, Dwarkanath Tagore, who encouraged others to form joint-stock companiesand invented a distinct method of management in which management remained in thehands of the 'firm' rather than of an 'individual' . Historical evidences also do confirmt h a t a f t e r t h e E a s t I n d i a C o m p a n y l o s t m o n o p o l y i n 1 8 1 3 , t h e European ManagingAgency Houses entered business, trade and banking. And, these h o u s e s m a r k e d l y influenced eastern India's Industrial scene. Iti s s t a t e d t h a t t h e M a n a g i n g A g e n c y H o u s e s w e r e t h e r e a l e n t r e p r e n e u r f o r t h a t p e r i o d p a r t i c u l a r l y i n E a s t e r n I n d i a . Brimmer" holds the opinion that Agency Houses emerged to overcome the limitationsimposed by a shortage of venture capital and entrepreneurial acumen though all may notagree squarely with this view. Reasons for slow growth of entrepreneurship in During British period in India. 1. Not given proper protection: The enterprises were not given proper protection by British Government. [Link] by British Government : O n l y t h o s e i n d u s t r i e s i n w h i c h t h e British Government put their own capital were given encouragement. 3. High railway freight charges:

T h e r a i l w a y f r e i g h t c h a r g e s w e r e h i g h e r f o r locations not nearer to the ports. This proved that the transportation of the goodsmanufactured for the Indian markets were more expensive than goods meant for exports. [Link] tariffs: The British imposed exorbitant tariffs on India made goods. 5.C o n s t a n t l y h a r a s s e d f o r g e t t i n g l i c e n s e s : E n t r e p r e n e u r s w e r e c o n s t a n t l y harassed for getting licenses and finance to established and run industries. 6. No facilities for technical education: t h e r e w e r e a l m o s t a n y f a c i l i t i e s f o r technical education which alone could strength In d i a n i n d u s t r i a l entrepreneurship.

7. Entrepreneurs faced fierce competition from abroad : The Indian indigenousentrepreneurs faced fairs competition from machine made goods exported toIndia from abroad. 8. L ack of transportation and communication facilities : Lack of transportationand communication facilities acted as the stumbling blot in the way of industrialgrowth. 9. Not encouraged the establishment of heavy industries: The British Governmentdid not encourage the establishment of heavy industries like heavy machinery,iron and steel which are necessary for rapid industrialization. 10. Political turmoil : Political turmoil and abolition of princely courts discouragedthe growth of entrepreneurship. 11. Multi-currency system : P r e v a l e n c e o f m u l t i c u r r e n c y s y s t e m a f f e c t e d t h e business environment and blocked the growth.I n s p i t e o f t h e a b o v e p r o b l e m s , t h e e x p o r t t r a d e o f t e x t i l e i n 17th century was onascending trend. During this period, grouping of Indian merchants into j o i n t s t o c k associations for the purpose of managing the supply of textiles to European companieswas very significant. This helped in exporting huge volume of textiles to the Europeanmarkets leading to favorable terms of trade.