r:.

-Ptryo

LE&ffiruEFSS *ffiJffiflTawffiS

Af,ter studying this chapte t, You.should be able tc:

a Defiw* the term'entrepreneurship'.
:s Tyace out theevolution and development of entrepreneurship in India'
e Appreci*te lhe role of entrepreneurship in economic developn:ent o{
countrY.

;iJ1-1;';r;;;iir; #;ilh"; ;.;;id;

.n' ihr itti ekj tzg' .. Let us ::*.'*l .,.'.11,3 ""
e

some important iefinitions of ur,trepi"r',urrrf,ip that will frelp us understanl&*r#

,ra* ,o
$
i -'"trepreneurship is
PreneulshlP 15 the atterriPr to
tne attempt ru uredlE
create vatrue
,. ""1*:
through
Lrlrvubrl l"-"o-*".;- #' tQ assr
l::"ryt'i11ffi,, ,t" iirr'
; opportutlty, the manafement of risk-taking appropriate tY
"Tt-riisk:tal-
qy, ui.a through the commriricative and management skilis to mobilisq.
 " .... . ..
-- t - -.-.--:,,i-:
_it.a;;i;J ,r.,".,::-,::Ti;l r.=s.1"";r{:f:l 11c{:e$s?t"./ 'i.t) *'i'::}; ff i"rirf:!,.rci , .. -. ,-
I*'n,
ih*: o*lnlcli ci
,. , '. :. ii:j:19: 44'1 , "r;ntr*fi{'tiigllisl,i-p l:, ii'.': F-:..pttr:iLl:
,
in -i*
^-1,''ri'l.l .=i a;r fu:iiviclL;.a1
cr a ?;lup ci assccial$c1 ;irc,ir-..1i'li.ii;.js, U'firleiL;i',tij:.]
-;e i:":j;, ,rr;rruir Dr e1?:?-r'a.y:;iizr ;:r*fii b1, prod-r;cij.ui-r =. riisti:.,,1;it'l-il'* cj'rr.'l)-''ic'i:11i{
ffiE 1 -1 -"/J

o* -Oaa'rding
tO ,,-,,,,.,., , '- -.-,, -,'i,-:.:.'-:: {1939'i,-"'Frnitepr*-rte-Lilshi}l iS brtceC On
-,_rrrrr"f*r ;*a systematic innovation.
It inciudes 1i{lt G1rly the inrlependent
t.r{entr/ =*rhc actrrally carri,' *ut
-1 - t/ ;.;I;.r:;an but ixro .o*pany directors and manag{i1s
rr of the
innovative functicns'"
In all above definitions, entrepreneurship refers tc tl're functicrrs is regarded
perforrned
a'o rils.nagefiient
'1ifoi:nia
by an entrepreneur fui estairlishing an enterpitse.lusi
etencies may-be regarri:d as what entrepre*eurs
as lvhat managers clo, entrepreneurshi.p
tiit!v dii
al. l" other lvord-s, entrepreneurshi"u is the art a.f behg an entreprei:teur"
soi-lal to b'e unclertaken tc
;;;r;;r*"eurship is a prociss invclviiig vari*Lls trttions
t1
tsst$fi"
.rr,6ilrf., an enterprise.it is, thus, process of giving bi'th to a
new enterprrse'
rnvolved
Innovation and risk-bealing are i'egal<Iecl as the 'ev,,o basic elements
in entrepreneurship. Let us u-nderstand what tkese trruo terrns actually rr-rean.
i;j:i:jt:::;l.i:::;.;, InnorratiO,tt, i.e., dOing SOlrtething i-letv OI SOmething
di{ferent iS a
The entrepreneurs
necessary cond,itiorr to be calied a person as an entrepreneur.
or* .orlriuntly on the lcok out to do something different and unique to meet the
.hunglrlg reqriirements of customels. Ti"ley may or may not be inventors of neur
pru:diictJ *, *** rnetirods of prcrcluctitsm,lout they pcssess the abiliry' to foresee
ihe possibiliiy of riiaking use of the inventiorrs for their enterprises. Let some
fa<:ts spcak. .

lpr:enetir/
In orcler to satisfy the changing preference of custorr-lers, now-a-days fruit
concepts juice
is soJ,d in smaln lartons (],zfango Fruity) instead of bottles so that cltstomers
:: trVhat is
.^", .ur.y it and throw away the contaiirer after drinkir-rg the iuiea_T-et us take
in India? araother example. Liptorr ofiers its tea ii-r smaLl packs knorurn as 'PUD{YAS' to
eloprnent meet the reqgiru*ui.tu of its rural custorLers ({{}iaraka 1996: 2A'-24). You' rnay
-of
:ri..
have heard H"rrty Ford, the fcunder of the Fcr"d Motor Corerpany in the
UniteC States. Rerrrer:rber, I{enry Foril hirr-tself did rao'c inrrent the autornobile'
Foreseeing the people's desire to have passexrger cars at sornewhat lovt'er rates,
: of much he appliei new rnethods of mass production to of{er passenier cars to the
custorners at afforcLab,tre price. Since custorners' trrste anel preferellces aiv;ays keep
"if{erently
orr changing, krence the entrepreneur needs to apptry invention _atter irevention
;,', oihers on a continuous
corrsider basis to meei the custoiners' changing demands for products'
rderstand 2i:i;-Ec*i;-;,lp: Starti.ng a new enterprise always invctrves risk and trying for
dcing something ,-ru*, u",-d different is also risky. The reason is not difficult to
cf various factors
t'he term seek.-The enteririse may earn pro{its or incur losses because
like increasing cornpetiiion, changes ii-l cttsioine{ preferer-rces, and shortage of
ralv material ind ,o or,. An entrJprenellr, therefore, neeCs to be bold enough
rc*gnition
to assurne the risk involved in the enterprise. kl fact, he or she neeCs to be a
te tc the risk-taker,
l rriobilise
not risk avoiCer. FTis risk-bearing abiiity er,rabies him even if he faiis
 fntrepren*urriai D

in orie tii-ne or cne venfirre io persist cn ar:.rl cn i,vhich ritrtir-nateiy helps hiix
''ii:.;,:l .,;'.,,-.'; j...iir':. -it':i ii!; tig!;;'"
succeed. The Japanese plaverb applies tc hirn:
'Ehough the term entrepreneur is often used interchang"*1y
with.fi:...Furi
- tf'tit
entrepreneurship, yet they are conceptually di{ferent. The relationship between;i
the dvo is just tii." tt-te two si.des of ihe salne coin as depicted in the following i artil

Tabtre 2.'!: ffi.e!ati*n=$:rp fue*;,'een nfr*p{"*i?ciir *=treprer:*:.4:'sl'lir

a*d n ;'ffi1
.
;j; :

I nntuepreneur
Entrepreneut I Entreqreneurship I
Entrepreneurship i th. ,
Person Process ' + craft
Org-nisation F ilt*.
# Organiser
Innovator lr'novation * corai
I .J,-u

lRisk-bearer
Risk-bearer lRisk-bearing
Risk-bearing I E rrntn
iMotivator
Motivator |Motivation
Motivation I E *nio'
Creator
I . Creator Creation
I Creation -l t -ltary
ffiVisualiser lvi'io.,
Vision I $, basl(r
I Leader
Leader Leadership
I Leadership I lJ
IOr V ii
Imitator Imitation
Thus, it is clear frorn above Table that entrepreneurship is concerned with ;' : :
the perforrnance and coordination of the entrepieneurial functions. Then, thisiit ::t.. ' l
also rneans that entrepreneur Precedes entrepreneurship.
,-", , i
m'*&* ,i ?$ ,," tffi ,
I

*t*ru***
*sru.ffierffi$ffi#'iru.rc ' 1

That a proper understanding of the growth of entrepreneurship of any country I , , 15 [

would evolve within the context of the economic history of the particular country{j,,.,'1 ! |

becornes the subject matter of this section. The growth of entrepreneurship in,- (
I11di3 is, therefore, presented into two sections, viz. Entrepreneurship during .' -1. )
Pre-Endependence and Pc,st-I.dependence. ,EEl
''"i=::::':
ft.A.ft nrepn*r:#Lirstr3Ep **.*"$ng Fne-Indepe$t{geffi*e .$'.';,1,i ', =d' "

The evolution of the Indian entrepreneurship can be traced back to even a$;?. - -S
m nigrrudu, when metal handicrafts_existed in the society(Rao 1969: tO),$ emer
"urty
ThiJ wouldiring the point home that hand.icrafts entrepreneurship in India was,--'jn In
as old as the hriman^civilization itself, and was nurtured by the craftsmen as-p..'.r'expo
a part of their duty towards the society. Before India came into.contact w
the West, people were organized in a particular type of economic and
systern of the'village corimunity. Then, the village community featured
eiormmic scene in nrdia.
etormmic religious and aloof froq!#1,-:'1 il
kidia. The Indian towns were mostly religi
the gelreral
Irre life ul
general rrre of the r_rrelaborated caste-bised
country. The
urc uulrrlLry, diversion.of work:|l$;iffi#
;-:":*:.,.-.".^": ,.....:,{rugri
."rrfiiut"d of farmers, artisans and religious sections (the Brahmins). Thu majority$ ., Uirif,
of the artisans were treated as village servants. Such compact system of vil
corngnunity effectively protecting village artisans from the onslaughts of e
cornpetition was on6 if the important contributing-{Tl"lu^.to the absence o.|#.,, i,'U,
loca&sation of industry in ancient India (Deshpande 1984: 63). ,#, .
-- -
 i:ar'; r"si; : P
*rir*Pre
- Evic'te:':i'J' crrirr:"=-c- i 'i'-'"'-illj
l-i;r iil- ';..,s l5 -':-' L:L
,.- r'.--*,
^ iLiv {--- a .i t ir: the riiies
iecrrl4*r=a-bi= prci.ucis or Banalas, Aiiahaba-i.,Ce,ya,
altisans i'iL
rtisans
ri
Lfl' 11 ':-l^/ 1LL1r%4:=""'*-- Lt^^..-..:".^- a--i-^ ii^*,.."..".!{..i
-t
were esia'blishei cn their l"iver i-_asi:ts. Verlr j::cssrbi-1,
f.r"! ,"4 Mirzapur:,vhich
These
rhiq ,.-&,3S because ihe riv*rs serYeC as a meats cf irexs-il*riaii*n-faciiities'
-3_'
ll

inct-6*qrrres flc,rerisheC *-.rer the pericci because

the R*yal Faircitage lru:as
ait;sae . -. , ^-=a at-^* 'a'k^ -,-^-1,t*c-*- --"ilr..n ':; ntr'.-'tt';-r,=q fidl-.!r iul-'-
.,:--!l_. .:. . i

-wsrs
broiig:ri it:tu an a.sscclalis*'Prcnort.crd t1s'gr':!lJ
:J;;;.; 1-he ciaftsrne'n beyor:d" dcu-bt anri ;rppeai i*
Itr--*l On ihe whole," periec;ia;t in art, drerabiiit;1-quaXitics ini-rer*ntin the Indran
;#;;; of the individuaf ,"*o* the drsiingriishing
*"rt;**ship thai }:rought ffiany evel' lasiing iau.reie af name ar:d fame to the
il1ffii|.,u tr,*iu pist. Tc-clu*te, Bengal ernioyed world-wice celebrity tar
ir: the
for dupiias ancl dhotis, Nagpur fcr
:;;;t T-rickncw fcr chirttzes, Ait*,edqb.*d
sl-rawls, and Barearas {cr metatr wa{es. Th-us,
iitltr*-red- cleii-rs, idashinir for ef the eeghieenth a*r;tttry, is:,dia
[ar* ihe tln"o* imnae;noriatr tiil the eariier years
cf the internaticnal trade rarith the
u*wrv"a ihe prestigrous siatus cf the tr:een
help of its hanclicrafts'
--Unfortunately,
'. so rnu-ch prestigicus dndian hanCicra{t ii'rCustry, v-'rhich r'vas
eeiitriry
b,a*iially a cottage anC srna-ll ueetor, clectrineC at the enC of the eighteenth
f*r variouu ,uu*orru iGad-gil 1959:36) bui irot con{ined to the follolving o-*1y:
-who patronised the cra{ts earlier;
,:,,j,. , l.,Disappeara-nce of the {nd-ian Royal Corirts,
2. The lrrk"*'ur* attitrrde of the British colonlal Go'rerr,tlent towards the

3. trmposition of heavy duties cn ihe imporis of the tndj.an gcods in EnglanC;

' :: '', .. 4. Low-priced British-maCe goods produced on large-scale w'hjc]r recluced
.. ':::: :.thecompetingcapacityoftheproductsafiheIndianhandicraft
ry country '1..
'.S. Developrnent of kansport in India facilitating the easy access of British
r countrT; ..|.|.....produc1SeVentofar-flungremotepartsofthecottntry;
:urship in'-i.
''
lp cturmg
. :6. Changes in the tastes and.habits of the Indian customers, developing
t,' , craziness of foreign products; and
: t"'
.::. ,f . Unwiliingness of lhe Indian craftsrnen to adapt to the changing tastes and
,i' needs of the people.
to even as'.. Some scholars hold the view that rnarrufacturing entrepreneurship in nndia
1969: 10).:,: eneerged as the latent and manifest consequence of East India Company's advent
India was... in [ndia. The company ir-rjected various char-,ges in the Indian economy through
Lftstnen as.:.' export of raw maierials and import of finished goods in India. Particutrarly, the
ntact wit l parsis established good .rpporf with the Company and were much influenced
and social:l by the Company's" comrniicial operations. The Comp,u"y established its first
rtured th ship-buildmf inaustry in Surat whtre from L673 onwards the Parsis built vessels
atroof from-.' for" the Com[any. Th; most irnportant was shipwright Lowjeg-Nushirvan, who
lf workers:' migrated to Mumbai arormd t4gS. He belonged to a Wadia farnily which gave
.e majoriffi
birth to many leading ship-builders of Mumbai (Paviov 1964: 1.46-1,47). Xn 1677,
of villager,. Manjee Dhanjee *on a contract for building the first large gun-powder-rnill in
rf-t external-i lrfaambai for tire East India belonging to the cornpany established a steetr inclustry
lbsence ol
in Munrbai in 1852. On the basis of thes* facts, it can be stated that the East In'dia

<
,{s6j tnti"*pr*n*u ria I *evei*pm*i-it,
'i)*ntp;rrr,*,r iniacl-e sG=? ccniiibu-iic;:. icrora.-is 3:-,ii*ilrneuriai gr*-rv-ih in India" Eui,
d*
vvh-etiqer the cci::pa*3t rJ.td" ii delibera'e*i1.i*r thc erolvth of er-rtrepr*neurship ia LIT
lndia *r it -was iust a ccillcid-snce that pec';:i* cacle in cor"atact:a'itl"r ihc Ccmrany tr
i1
a;"ld entereC the ntanufachlri:lg, ...oihing calr be said -with certltride.
to the
Tnte actual einergence cf ntanufacturing enirepxenellrship can J:e *ctic*d .'
L{.j. sr-
:n the seccnd haXf of the ni:retee*.th cenirirv-. Fric,f to 185fi. soryre strav failure this -rr
:- l^^; -^^^ 1^-- LI--. il----^-- ------, ..- {- -t T 1' t .-
-!l^-*-^r^
a!'--lxr'rJ yV,*l--r ari'J-ti-i, ai(i;Li'-r-, !.y ir;.i-_.t."Lai'uva:-ii3 r-J 31-i ,Ji; ,f i:li."l-,.:.;f]J iii .1.i.L.r,r" a:L ,-rie . t.-*.
IU- 1U3,
}:egiirraing, the Parsis v*ere tlie fcundsr manufacturrng entrepreneurs in lnd-ia. :
in lvh
I{anchocltral Chctalal,'a Nagav Brairman, was the first Ineiian to ihrrrk of 'inCi';
settL:g up the texiile rnairufacturing cn the modern factcry lirres in 1847,1-:ut., Coclrp
failed. In his second atlempt, he succeeCed in settlng up a t;{tile miil in 1851 entere
atAlrtr-ledabad(Spcctek,1965:483)"Eutbefcrethis,,thefirsicottontexti1e easter
rtranufacturing unit was already set up b3r a Yarsi, Co-wasjee Nanabl-loy Da..,ar lvere i
in N{e&nbai in 1854 folio',vecl b1z Nawrosjee 1,'Vadia, who opened his texiile mill
{1e55:
in Munlbai in 1880. The credit for the expansion of textile rrdusir"ies upio 1915 limiia:
goes to the Parsis. C-rri *{ 96 textlle rnills existing txt 1915,43 per ceni (z}}) -r".* thoug.
set np i:y Ilarsis, 24 p*r cent i7-3) h). Hrndus, 10 per cent i10i hy h.4ursiims and
Be
23 per cent (22) by British citizerrs. (Spcdek 1965:253)" Later, the Farsis invaded
cther $ields, mainly iro* anC ste*l indr:stry. Also famshecijee T'ata r,'ras the first,i eta,lt
Parsi eritrepreneur who esiablisheC tire firsi steetr industry in jan-lshedpur il on In<
1911. =
tlclCK$l
on the
Iet the fir:st wave ot'i'ap-nufacturing entrepreneurship, except Farsis, all olhers .'
ha,iled fron=r rron:(effirs"1ercial c*m:nunities. lVhy ihe w,eitr-known commercid .:
c*inrnunities, rtarnely, ]ains ani I-/aishyas of Ahmeclabad arrctr Baroda, lagged -'
b.,ehind i:r entreprenereriel rnitiatrre thrr:righout the nineteenth centurSi can be .
explained by tr,vo rna;'or factors. Firstly, the Iinprol,e*1ent of business cXin-iate in:-,
the,countryside during this peri,r:r1- resulted ir-r an increase i:r the quantr-im of :-:
IIo*
tra-de whickr assured quick returi"rs an investments. This proved- the con'rrnercial t, ['';u*
activit-t' rrlore lucrative duri:,rg the period. Secci:di_lf, it ian aiso be attributed
to their conservative att.rt'*de io change frori:. commercial enirepreneurshrp to - I
i*dustrial entrepreneurship (Tripattri: 1971) .:
The 5;1,,s#esl':i campaigrr, i.r:., emphasis on inrligenous g*ocl-s, provided, indeed, " I

a proper seedbed for incuLcating antd deveioping riationalisisr in the country. it.'
"was *:e influence r:f Sr.u*deslel thal ]amshedj*e Taia even naneeC his firsi mill I **.
'9w$Ceshi Mill'. The spirit of kidiger-rousness stu:er.g;thened its roots so mnch il'. o"'"
the countrv thai the Krislma lvfills in its advertlsernent of Tri.bune of April 13.
iteade the folXorr,ring appeal,: "{}i!'i t*titr{ii i::.fiiisr,;ti.l *q t:.iitii,e cr;:ii!:s-! ar;i it ::;i:irrl' I
ll.*-ti-;.:l??itt-!?{!S?3i.i:xt"t!;r*l;2;iz*iii{!::*"i:ii,}75}",, [ *,.,
The seconC wave of entrepreneurial grcw'th in India began after the First
WorXd War. For various reasons, the Indian Govemntent agreed to'discrirrrinating' ,.:
protection to ceriain iadustries, even requiring tha't cornpanies receiving its,.. [ :,'*
benefits should be registered in Inriia rtrith rupee capitatr and have a propartion'l
o{ t}retr clirectors as Indian. TTre adr.antages of these ryreasures v\rere mostly:....
enjoyeC by the kldians. The Er-iropean failed to hariless tlie pr*tecticnist policies;:.
to their interests (Bagchi 197A:243). These measures hetrped in establishing and.
extending the factory manufacturing in trnclia during the first four decades of ',.
E For r
the twentieth cenfury. During these clecades, the relative irrnportance of Farsis -, Con'r1
 trndia.
reurship i
: Com::an
ro the Ildian entrepreneurship can be traced back to L936 wiren Cam, Tagore &
L]rir"*ed the managerneni of Calcutta Steam Tug Asscciation. The credit for
tJiis initiation goes to an h:rdian, Dwarkanath Tagore, who encolrraged others
io foro, joint-siock-c{-)rnFlrrrdes ar.rcl irrveiiit.l a iisliir;i ";etho.ju ;f ;la;:agimcit
in which management remained in the hands of the 'firm' rather than of an
:o think ,Iiridiridral'. Historical evidences also do confirm that after the East India
t 1.847, Company lost monopoly in 1813, the European- Ivlanaging -Agency _Houses
dil in 1 enteGd |usiness, trade and banking. And, these houses markedly influenced
;ton tex ieastem India's Industrial scene. It is stated that the Managing Agency Houses
hoy Da i**r* the real entrepreneur for that period particularly in Eastern India. Brirnrner
textiie
{tg15:555-550) holds the opinion that Agency Houses einerged to overcome the
upto 191Fs limitations imposed by a shprtage of venture capital and entrepreneurial acurnen
t (4i) weiili, ,though all rnay not agree squarely with this view.
uslirns andli
,,.,., Before we skip our revier,v of entrepreneuriai growth to the post-Ledependence
;is invad@
,eia, it witrl be in the fitness of the things to shed some light on effects of partition
as the fir*?
as to depict Independent India's indusirial
;hedpur ft$; ,r6n Lrdia's industriai economy so
background. Following are some major effects of partition on 15th August 1947
":"+ on the Indian industriai econorny.
r, all otheiiii
:ommerciaF:g TahEe 2.2: Fartition q:f, {",indiavlded lmdia

da, laggedli Pakistan

brdia
rry can bel.
climate in:1 "D. enograpffi6 flffqgfs :. 77% of area, 82'/" of 2lo/o of 'atea, LB%
poPulatlon population '' ',,'t',,
uanfum oi_:r ,
:ominercial,i- Activity gT'k of total industrial ,induskial
L0?'', ,of ',total
-Industrial
atkibute ,
t" estabiishqrents with 93% establishment s, .witb, 7o/o
,"l. li t:,'::: of industrial workers. of industrial workers
.eurship G .i,:i:i..r,:,:, ,-.,,1:'. ':r!,: ;.1: ,
i]rr*, lron & Steel and
,fs, ,;:.'.i:.;.:.;,::.:.:..;'.:...,'.i.r':...r. i ..:- ::r: r'r: Cotton textile, sugar,
, 5:l
ed, indeedint
'Paper industries i cement, glass , -and
chemicalindustries .,,'
.

,:,:i::,,:::i:r,r.:;: 1::,'::,, ;.'. :, ;.: ";,. 1,

country. Itij, l
:,,t .:

g% of total value of
s first mil[:; ':.MineralS r.and ,:,NatUral 97"/* of total ,value of
o much i4ii, UICCS minerals. Major deposits minerals-,',with :' major
of Coal, Mica, Manganese, deposits' . 6f '','Gypsqgr,
rf Aprii 13i Rock Satrt, etc.
wd is uwderii
Iron Ore, etc.
.,;a:l
.' andi -'.. Muslims possessed these
,r the Firstl;
.::14-
Managerial Skills skilis that migrated to
Paki@ -.i,'t., -. tti .
iminatingl; .,..:' ..:;.,,,r.'.:r 1 . : .., .t
",.,,
ceiving its,f
,;;.!i'ii'o'il:....,
",il;,,#.:r' ,,1;- ,.,, r,'
do{
,,Transport Facilities total route 4!|ea ge,
83-7o'of: ai,rQad rnilea$e
proportio$
,

Maior
. Ports .trndia,., lost ,major ,ports'
:re rnosffi iwhiih' adversely affected '
ist policies;
tsnmg an0:
lecades oi.;g For more details see C.N. Vakil: Eco*o,rnic Canseq',tenrcs of Diuided Indis, Vora &
: of Farsii,i, Company, Bombay,1950. I

:ail
:l:

'*.
3-:
 lac
ii::i ':;ri .{rg
'l\. -:

i".:::* i* Spcii *'-:i

e*ttt
SOIl1{
tlr.at
1- -.-r
tdi 3'
i;";;,;;=t-.;;'ui,o";;rlu1iij' i*i.ti,ir=,:-. rii ri,: ;:r;:.-;c'-;::t' -,:.:ttt' ii
;ri=* .' trnitl
:Cr:iC'';: r;:i. ll,'igi=1.;ii::15-:.,'",:,*:: ... beyr
t;.lp].ir'1t11, I..+Ei.iis<l th* viia.i r"*i* oi *.*'privaie sect:3;:' i.i1e '''
-was.reltrved i*r'ihe r;rl1ia!-e in tf
#ieir*i=Flir.:*r.t ur,j,l*r this: u,-.**g1' fir:id
c+.,-ern;iren1 'lcok t/tree =xti-,;t:rtant r'133-s-Lii*s
t* $s-:I i;rel'rlstiiai ;633ii1i1;r-::r: r ,j
the t
q'jiT*inaiatair:.a?t{}yerciistiibaitil:::roi'econ*ri'riepc''?eibe"-r"en";nva'iea::d-'','
sp;ea4-r*'g*-*L:e*reiiflii3illp
:
:' re
iiii T* er:ccr;-rage ihe teffipa *f iilriustriatrisaiicnb ,v
irc*:thee;,]istnng.u,.i,u.tc,rhercities,tc-,.,,,raga.r:'dvii1ages.' iso
ploc
{l;iiT*iisseln;r,aietl-i+entreprene*l.ship,?tt..1.'iTie{\cci.-"centraied.i*ai+.'ll.
cf r:.rdus.1;-,:ia11y p*terL.tiax pecpie " incrt
d*,,..lnant ccr*ir-"*niiies tc ;1;r;;r,**lu,
of varled sociaL stlala (Iv-taJerlbaurt 1962)' ATIS(
Co=;eriat.n-* -:.-:1f:d errLph,asis ""t'
To aehieve t},ese adurn?:raied objectiv' es, t}le
attet
cor-tr''try' Pariicuiari;v since the ::
o'i d-e,elopr.nent c{ s.r,aii-sca1e indistries in the prcvide varicus incerliiv.es
shal
t'.
Plan, the c*v=rr:n-ler:t sta'lied to ''Td pher
Thic.d Fiu,.e Year the --
i,, for*:, cf capital, ieehnical i<ncw-how", t,narkeis a'*el- traitc,to wha
c*ricessions areas
'he
ee-rtrepre:reurs to esiabllsl-* inetrusiries in ibie ir",cu-siriaiiy po.ential ":
add
poi,=ntiar -wa's' ind-eecl'.1Tuj?""
This top
to remove the regionai irr,bala:tces in devexc-paienL'
step taken by the Goverrut',ent to ir-rlti^tu
interlsted peoptre of varied soclal strata ;:
severai institutions like Direc'iorate ;:
tc enter the sr*a1i-scar,e manufacturing field.
s1#1
{ndustries Colpora'iicns I'j:' wor
of ?nd*stries, Financial C*rprrrtlonJ small-Scatre to
estabtrisheci t'y tt9 Goverrtnrent
smal1 Industries service Instittlte *"r* also "' in1
up their errterprises' Expected{ ofe
facrlitate the new entrepren*r.u ir-, settLng :T1l
a tremendous increas 1n ''' larg
scane units u**rg*d ;iry rapidtry in nrA"la-i'yltlessing
increase of '1
inffiao tu 190,727 tn 1g7"A registering an Acc
therr nurrrber from 12I,619
jt"ing to tl
17,800 uniis p*. yuu' the period under referea'ice'
regarCing entrepreneu-rial growth' regi
The recapitul,ation of review of triterattere toI
that prior t() LgSO; the manu{actr-rring:
ifi Indi.a, thus, leads us to conclude dormiet
'

mainly in artisans' The artisan:' 'inv

entreprerreurship was negligibtre lying Iais:
Cue to inadeqr'rate infrastrttcture.
entrepreneurship could ,tot auruiorp"*r,1'ti1'
structure to ihe entrepreneruial' l
and rukewarrn attitude of ti-r" .oio"iial political
Agency.Houses' and vadous""' fact
function. The East India Company, the Managing
soeio-political rnovements like iirl,-,ieeizi
.u*pui'go' F-t""ta."a' o1" way or the;: enti
tt"'e *i'o*{utturing entrepreneurship"' app
other, proper seedbed for the emergence of + leac
in Xndra from 1850 onwards' '5-i'

sufficient momentum after

The w-ave of entrepreneurial grovuth gainecl have increased rapid-lyr. roo
the second world war. since then the entrepler'reti-rs Five Year Flan' sn'ra11i and
in numbers in the countoy. r'urii.rirriy, since the Third ::.
 ?,a.".te e7-?r-tie:rlcee1 tremerrC<;us xrcrease ,n lhair nun:ri:ers. But, they
:' entn*prenetlrs
r-rrial a'*111ty, hcvrever. The fact ;:er:rrains tieat even ttre smali
.i ;.;; entreprene continu.ed to be dcrninatea in busin:.u.:o*Trinities though at
.pr.r",eu.rship
r:
,o*r" plures new groups cf entiepreneurs too em,erged. Atrso, there are examples
"r.rt

'iite ia'rniiy eixlieprenel,ilsr.l.y'

lar*e-scaie rnanuiacturilg unri-s clering tiie pericci.
*ri",, (family business) iike Tata, BirIa,Mafailal, Dalmia, Kirloskar and others gre'//
._ ber.ond the norrnatrly expected size and also established new frontiers in business
iniftis period. Notwithstanding, a1tr this happened wiihout the dirzersifi.cation.of
:. the entrepreneurial base so far as its socio-economic ramiiication is concernecl"
vaie and ,-.=..

::
ffi FdFi-F i]:-i";"i",i,:|,",i-. -=i"-ril"j i:t,1.'l '.'r r ,:, :.,1 : I fu{l:;;i-'-;;r i,';,';'r
-l

1: Ll
a
-i"3iiiD
1::i: &s#re
'l

baffling. Nevertheless, economic developrnent esseniialiy lt.teans a

I a iew- is oftenof upwarC change whereby the real per capita income of a country
.ta
-

II o,-l;-, !a
-r-:prscess
:.
increases over a long period o{ time. Then,.a sirnptre brit meanir"lgful question
. .j: arises: what causes econornic' development? This questicn has absorbed the
){i-i-i}ilASlS
attention of scholars of socio-econornic change for decades. In this section, we
'
.,

;ince ihe ,. shall atternpt to shed light on an irnportant aspect of that larger qtiestior-1, i.e. the
;ives and,, phenornenon of entrepreneurship. The one inajor issue we shatri address here is:
1.
1r:r t{i tne wleat is the significance of entrepreneurship for economic development? Does it
,' 1
r12i areas ad-d an i.rnportai"Lt independer-lt influence tc that of other factcrs widely agreed
a rnaior to pronlote econorrr-ic developrnent of a country trike India?
:ia1 si-i'aia .:.
Adam Smith (7776: 7), the forernost ciassical economist, assigned no
reciorate .'
significance to entrepreneurial rotre in econoneic develcprnent in his monurnental
rcns and work' Ar:{tui"t;i;'ii ;n!r: t}* j\ir;l;r.,-;:i:*.:!.Causesof the t'\";,.:ltl,':-i ;';:l;.,;it;',published
3i?1e{-rt to.,l
r - -- -r1 in tr775. Smith extolled the rate of capital forrnation as an important deterininant
TV, STILAII-
Jr
of economic developn'rent. The problem of economic developmemt was ergo
crease in.. largely the abitrity of the people to save more and invest rnore in ar-ry country.
crease of l According to hirn, abilif to save is governed by improverrrent in productivity
.:

to the increase in the dexterity of every worker Cue to divisicir of labour. Srniih
Ll growth , regarded every person as the best judge of his own interest who should be left
t.
tacturlng to pursue his own aCvantage" According to him, each inCiviCual is led by art
re artisan'' 'invisible hand' in pursuir"rg his/her interest. He always advocated the potricy of
rstructure ,r,
laissez-faire in economic affairs.
,fenellTlal
In his theory of economic development, David Ricardo identified only three
f, various '' factors of production, namely, machrnery, capital and labour, among whom the
ly or the, entire produce is distributed as rent, profit and wages respectively. tr{cardo
:neurship' appreciated the virtues of profit in capital accumulation. Accordirtg to him, profit
leads to saving of wealth which ultimately goes to capital formaiion.
:u111after :: Thus, in both the classicatr theories of economic developrnent, there is no
J rapiCtry " ro{}m for entrepreneurship. And, economic Cevelopnrent seenls to be automatic
an, siatall: and self-regutrated. Thus, the attitude of classical economists was very cold

---***--*<EW**_.--=-.-_.- __ __
E

j a.=.r.ln,' .1'..1t
;-:iB!-,ri i
=riil-.:i;f
i:*y,ra;:;ls ihe r,;tre ji *:r;';rr-p- ine '.-i:,- :; ii ei;i:a;L-,C rtLe,.l:iCoili':.i l-. -'.": y ir.Ct{,
ailiiuie : ":::, :
tob 17
IVOLlIG
,-.i:.: -.i..:j:.. :la: ..1. {tsc, ii {ti ;,g i''tt:l:)."
Uni
The economlc history of ihe presently developed countriss, fcr exar-nple, .,
Amerir:a, Rr:ssia and ]apan tends io su-opcrt the fact ttrrat the econosi,T is an ' market
ef-i.e:.i'Cti
t i!t'-t i,r;: ttiii:-ch eiiiri;pr'=i1c,-rrs'itip is :l-Le .-;L-is=. Tio.: t:,:i:ii;-i r-cl= pia,yej. ty
it is rea
.

theer.itrepreneurSinthedeveioprnerttofihe?VesternCou11tries1.lasmadeihe
people of underdeveloped co-!.1r,tries too much consciolls of the signiiicance , it is
ais'
massivr
cf entreprenerlrship for economic devetrcpn-lent. Fdo=.,v-, peoptre havs begun to
regions
realize that for achieving the goal of economic deveicpinent, it is necessary to
lesser a
increase entrepreneurship both quaiiiatively and quantitaii"rely in tl-re country. ,

"It int'(
it is only active and enthusiastic entrepreneurs r,vho futrtry explore the potenti- ' the abi
alities of the country's avaiiable resources - labour, technology and capital. industr:
Schurxpeter (1934) visualised the entrepi:eneur as the key figure in economic in the r
development because of his role i::r introducing innovatlons. Parson and Smelser main s1
(1956) clescribed entrepreneurship as one of the two necessary conditions for - 'Furl
econontic devetropment, the oiher being the fu:rcreased ouput of capitatr. Harbison ,.
industri
(1955) includes entrepreneurs arnong the prime movers of irutouatioms, and l,
develop
Sayigtrt {1962) simply descri}:es entreprenerlrshlp as a necessary dynamic force.
importa
trt is atrso opined that development does not GCCur spontaneoustry a-s a rratu-rai
It is turt
consequence r,vhen economic conCitions are in some sense 'righit' a catalyst or
scale en
agent is always neeCed, and this requires an entrepreneuriatr ability. It is this :

also fac,
ability tha-t he perceives opportuni.ties whjch either others do no see or care otherw.'i
about" Essentialiy, the erttrepreneur searches for change, sees need and then ' Develoi
brings together the manpowetr, material and capital required to respond tl're decades
oppcrtunity what he sees. Akio l\,4orita, the President of Sony .,vho adopted ihe ., role of
company's products to create Walkman Fersonal Stereo and India's Gulshan . importa
KuirLar of T-Series who skimmed the ar-rdio-cassette starved vast trndian market eCOnOlrr
are the clearesi examples of such able entrepreneurs.
1.r
The role of entrepreneurship in economic development varies from economy rl
to econonty depending
-
upon i.ts ntaterial resolu"ces, industrial clirnate and the 2. It
respor-tsivexless ot' the potritlcal system to the entreprei'leririai function. The
u
entrepreneurs contribute more in favourabie opportunity cor^lditlons than in the
econorrdes with relatively less favourable opportunity conCitions.
3. I1
Viewed frorn the opportunity conditions point of vier,r,, the underdeveloped :, 4'I
regions, due to the paucity of funds, lack of skilled labour ar-rd non-existence of :-
..' 5. Il
minimumsocia1andeconomicoverheads,are1essconducivetothee1ner8enCe ,'
particulartry of innovative entrepreneurs. In such regions, entrepreneurship does . .. p
not ernerge out of industrial background with well deveioped institutions to -' . ,,' 6. It
support and encourage it. Therefore, entrepreneurs in such regions rnay not be ', ': ....'. n
an "innovato{' but an "imitator" who would copy the irurovations introduced'.
'' ,7 :

It
'.:.
by the "innovative" entrepreneurs of the developed regions (Brozen 1954-55)....
In these areas, according to N,{cCetiand's (1967) concept.f p*o=oorality aspect of ,'.
- s. I o.

entrepreneurship, some people with high achievement rno'tirzation colt1e forward .' r1r
 , .^ :^ --r an:tf?pfei:C1,, ,ial ,,aay rO fhan+* iLe i,ta,iCna:'./ ;nt*":t ,, a3 l";'' '
i:l Ga:..'".--l-,r,r-
to bgha-rg *^ ---*.-"-^--.- ^j--*ttt +?oo+:,.-lrorr
tira-i ih,ey have in i?^rc
tr-atro i;r qnriF'l'r.r
ihe socieiy'
be sarisfied- uruth ihe^ presenl sial:-rs
frffi;i pa"ucii,v of {r-ands and Lhe prob'i"- ?f irnperfect
U*der the coniitions o{
3;ia=ji)1e,'., ougioou, ihe entrepreneurs are bo"'-rnd to la*nch' their
r:, i: ?n
,r";;;;,-*iu.c"r*p-*
cli n i. :,^ttt:,titl :":'ir:ires,hs::l l-:::ds !:har innc"rp-'ticr'
1;-t_r1;^c.it3i:s -..r:r=11-ic:1.:
A;rii,
a. !i- U\
,,'r- ioutreci ihat such regi*ns siir-;r-ild. irave mcre ifiijtalive ei:rtrepiener-us' cr-e a
nade ihe in derretroped regior"rs
li ,, ,irr-relt that ir*iiation of irulovaticns introduced
nificance'.
;;J" scale canbrrng aboui rapid economic develcprnent ir:r urLderCeveicped
legrln to ,. :;;", also. But, it does not mearr thdt sr:cir in-riiation requires irt ar.y way
3ssary t0,,., on the part of entrepreneurs. In this tegard, Berna (1960: 6) opines:
i.r"#;ttity
coufttry, -.. :i;;;;],*u *t ut has aptly been caiied 'subjective innovation', that is,
potenti-,l:,
,rr" do things which have not been done before by the pariicutrar
y to"ft"r-,
I capital.,r;
.::.
"urii
ili*ririrsts, even tholgh unknown to hirn, the problem rnay have been solved
ccllstitute the
]conornlc,.
in the same way by thJ others." These iiniiative entrepreneurs
regiorts"
I Sn-lelser..
muill spring of developitrent of uatderd,evetroped
ligng fg1:::.
f.r*trur, lr-rdia which itself is an underdeveioped courLtry airns at decentralized
levens of economic
irra"rrt iur structure to militate the regional imbalances in
F{arbison..:'
ons, and sr:ra1J.-scatre entreprelleursirip in sueh industriai structure ptrays
an
development,
nic force. ' role to achieve balanced regionil developneent (K.hanka 1994:86-100)'
a natural','
i*6r*"t
iii', believed that srnall-scale industries provide intrnediate large-
rtaXyst or ,' ""*qurivocaily ensure a rnore equitable distribution of national incorne and
:' scale
dt is this "*il*y*ent,
also facilitate an effective resource mobitrization of capital ancl ski1l which
m-ight
l or care' otherwise remain tinutilized. I-ast1y, tl-re estabiishrreent of Entrepreneurship
anrl then Development trnstitutes ancl alike by the Indiait Governrneni durirtg the last
:

rond the decadei is a good testimony to her strong realisation about the ,:','i:',;::i; ;::r'l'il"
rpted the - role of entrepreneurship plays in economic development of the- country' The
Gulshan , important roie that entrepieneurshrp plays in the economic development of an
n rnarket'l economy can now be pui in a n'lore rysternatic and orderly:*u*.ut as folLows:
',
.:
, l.,Entreprenegrship promotes capital formationLry mobilising the idle saving
economy l of the public.
r arad the'.
2. It provides immediate large-scale emptroyment' Thus,.it-helps reduce the
1{ln. lne unemployment problem in the country, i.e., thre root of ail socio-econoanic
an in the problems.
3. It promotes balanced regional development'
eveloped
:stence of
4. It helps reCuce'the concentration of economic power'
5. It stimulates the equitable redistribution of wealth, income and even
,

nelgence ,

thlp does political power in th; interest of the country.

utions to , 6. It encourages effective resource mobilisation of capital and skill which
ry not be
troduced :
7. It also induces backward ancl forward iinkages which stimulate the process
1954-55). of economic development in the courrtry.
aspect of 8. Last but no fileans ihe least, it also promotes country's export trade i"e., an
: forward' important ingredient to economlc dcvelopment.
 Entrepr,eneurial

Thus, it is ciear that entrepreneurship serves as a catalyst of

economic

development. on the whoie, the role of entrepreneurship in

economic

deveiopment of a country can best be put d3

,,;i?.1
t{i}?1'0}ni.l ts tit* est;t lor u'liiclt

t nt t'':ptrer't t t rsiiip' iv t i tc t (tttsi

ffi.s#*ffig*Y
This summary is organized per the learning objectives given on page number 36'
as

' i;r;A;;;;;r'+ rE u p-"*u, *hich involvJs various l1tiyiles to be undertaken

to stait an enterprise. It is,'thus, a. process.oj givqs birth to a new enterprise'
Enkepreneurshipinvolvesrrurovationandrisk-bearing
c The evolution oi entrepreneurship i1 India 1u Fr::d way back to even as early
the
uS nig""aa, when *dtui handicraft- existed ,T qr- country. 'O.ver ,years,
has passed throysh several upheavals. Tfe ilrorla:l onqs
"",ffiu"eurship
include decline f"alro handicraftindustry t"Yqqt-the end of the eighteenth
"f
century, advent ri ,frJi"rr India Company, Swadeshi Campaign,
the FirstWodd
w;r; ;;".gur,"" oi it" nautuging agency S3istems' -the the.seconi'Wo113; .W?"
developqent 11 the
' pui*itio., of,rndirrided India, iiu.ig"tition of planned'
country, etc.
o The wide range of significant contributions thlt eltrepreneurqli3 makes to
the economic d;";6;;i it.t ra" promotion o{ capitaiformation crgation of
;;#;;;lffir.al emptoyrnent, t'romotion of balanied regional development,
*.Ufi*"ti." of cupitut and skill, induction of backward and forw3rd
"ffAri""
fi*"g"r, The ;;era[ roG of entrepreneurship in economic development
of an
"tc.
economy is put as ,,ts,n'e{c?iaru-g is tke efsect f*r zu&cb entre ,rt*,ettrs7tiy is the c{it4;5" '

ffiEFEffi*ffi{ffi5
India-1900-1930' In: E'
Eagchi, A. K. (1970): European 1nd Indian Entrepreneurship in
University Press'
Leach & S. I{. Uukherlee (Eds'), Elites kz Satetis 7"ui* Cambridge
Cambricige
Publishing
Berna, ]ame"s |. (1960): L*tdustritel Entrepretcezwship in lvltzdrss Stste,Asia
House, BombaY.
Macmilian
Boulding, K. E. (1960), TTqe pwset{t p*sitiott ef tlie T\teory of tfue Firut'he
Co., New York.
Brimmer, A. F. (1955): The Setting of Entrepreneurship in India, Qwartxly lowrx*l *t
Ecanomics,L}A (4), November'
::i

ChangP, T'l* &rrtericant

Erozen, yale (1g54-55): Business Leadership and Technological
|autwalafEeonorwicsandSacio!ogll,o4),7954-55.U^-..^-lI- University
Cole, Arthur H. (1959): Bxsi.,tess Exterprise iw its S*cisl Setti,"zg'Harvard
Press, Cambridge.
 ;*1.

M. U: (1g84): Eatreyrerc<:aersit'iy
*! 5*eta!l-S*a!* {arttr*:;l;":a::, Deep & Deep

il, S. S. (L994):
lndustrisl Dea elopmewt of Backzoard Arear, Himalaya Publishing
New Delhi.
Prabandh, Yol, 17,No. 63,
S. S' (1996): Marketing of Small Industry Products,
,
f?rs,
rt'ones
iteenthl
I{orldr ',Allahabad'
':!:j

I War,, *i;eobur*, W. (L962): Praspects of Indian Deaelopw'ewt, The Free P-ress, Glancoe,

'in thq i=.iilllinois.

.
D. C. (1961,): Tl"'e Achieaixg Society,The Free Press, New York.
and Society, The Flqe Press, New York.
rkes.to' iF;;rO", T and I$. ]. Smelser(195_6): lcoxswy
l;F;gorr, V. L. (1964): Thb India* Cipit*tist
Class: Affiistisrical \tutdyt ,pgoples, Publishing
tion oi
prnent,: ,i.,.,tHouse, New Delhi.
rrr,t ard
rt of an
Llse ", ." ".t

Routtedge & Sons Ltd., London.

Economic Weekly,
Spodek, H-oward (1965): The Manchestrisation of Ahmedabad',The
17 (11).
Tripathi, Dwijendra (1971): Indlan Entrep*renqqrship in Historical Perspective: A
:t:..

30, In: E.,

ity Press; Reinterpretation,EcbnotiicandPoliticafWeekly,oizz1,May29.

rblishing SELF-ASSESSMENT QUESTI0ffi S

.icmillan 1. State whether each of the following statements is Tkue or False:

(l) Entrepreneur and entrepreneurship are the two sides of the same coin.
tw*sl (il) Entrepreneurship is the process of creating something and assuming the risks
and rewards out of it.
lraeric*n (iii) Entrepreneurship and coqporate entrepreneurship mean the same thing.
(ru) An economy is the effect for which entrepreneurship is the cause.
niversity (o) The partition of undivided India on L5ft August 1947 providgd a highly
favourable environment for entrepreneurship development in India.
:+.fi Ii'rtii:ri+r^ie -riai D*v*lup* l':nt i|i

i, r-,1? / -.''. -l---- .

,Lii-L= ^
r, i;\ i;-i,...
rL /-i-,J\-
{li') T{-te (r) Faise Ban5n
1.:t)
tn irLt.
1:)L;

\
entrePr
Orga*t''
1. i.r"ih:ilsentl'epreneurshio?Disii:rgr-rishbei-,Meenecti:erre:lerlrand entreprener-lrship such a
: '--:'::' 'rai'i1rr;
'2" u,;ii'-yi'c..':*;:ii; i. a pil.--,C;!r" 'lo -"t'' :; -'' ';-: ;- i' -'
has fulfiiled il the trai
J. in the Indlan contexi, explain the speciflc raie that entreprener-irship
a

the econornic development of ihe country'

the Pre
rhp r)O
4" Cive an accouni of the evoft:.ticn and grc-wih o{ ir,dusiriai enireorerler:rship in

I { lLtld.
nothinl
5' "Entrepieneur and enirepreneiirsirip are catai;rsts ia the process cf econonric Tht
clevelcpment .of a courrtry." Explain wiih e;<amples' job r'r'a
6. Write an essay on the growth of enirepreneurship in india. r,thich
7. "An ecoi'lom',r- is the effect for r,nzhich enirepreneurship is the ca'Ltse'" Exemplify' produc
circtrm
(EDP),',
1,. Meet two, preferably first generation entrepreneurs: c- '-
)fie- *sLlccessftii and other of Kart
' unsuccessftil one, and. delineate their entreprerueurial procesg',Tit5n compare a'nd
Pro*ra
le and clraw lessons ou ,*ao**endations:for the unstrccessful howev
cntrepreneur. of mar
2. Delineate the chaflging profile of entreprenr:urship devetropment tn 19y1siate Sin
to get
ventur
(KSFC,
was u:
The roie conftrict betr*reen a job and llome has been a universal problem' decide
face,.l by wonaen entrepreneurs in Inctria. Some wonlen entrepreneunq achieve'
exceptional success lrui oery often at ttre cost of farnily life On the other hand,
specifi,
named
sonxle %roffren give up at sorr're stage irt their erttrepreneuriai path for
the sake ol
able to keep aha-ppy baiance rnrith, s
the fainiiy. Cily a few worflen entrepren*.*ou
^r* < 85,0t
between their comrnitments to busineis ancl famiiy. h,4rs" jayalharati viswanath
closurt
is one sttch eretrepreneur.
increar
]ay'abharati ,uvas borru in L959 in Veelas;liva caste of Lingayat
ccrnmunity
Ja)
in Bal,tgalore, where her faiher was an advocate- Cne of the fotrr chiidren' perfcr.
iayabhlrati, a{ter con1pletion of pre-ur-liversiiy, was marlriecl to h,4r'
Viswanath,
of h-er.
an officer irr indu,stries Cepart*.rt of Karnataka. For the next eleven years,
the
her to
entrepreneur in ]ayabharati was dorrnant' Though she always had a yearning she w,
in
to' do something'o'f h*, own, there was no time to spare for such aspirations occasi,r
the midst of many family preoccupations. Even here leistire hours were spent coliect
in creative activities retated to clornesti.c neeCs such as painting ar-ld stitching husba:
dress rnaterials. Besicles, her husband's jcb being a transferable one, they
moved
availal
residence often all over Karnataka' He
-'-
. Ad^pt.d f-*Jr" S"b*tian and Sanjay Thakur (Eds.):_ir:i E::';: ""-":-'i:;: {-t';:':i::; ''-:'" 'ti'st r,vhich
Entreireneurship Development Institute of Indla, Airmeclabacl,1994, pp- 54-57.

lL----
 11.

\its!'t-wanath -14/as transi=rc=d lc Tun:lkur, 90 klic;*c-t=:E er\ta7 ircril

::.1,.i.]: InTggi, pit.
a-' +r-.:n cl:ilirn 14-r past il-leir infaney ani she felt er*i;*ldenei
Fa I q6, :.:i!.i.:r.'
-ifi*t l,'y'l-'r!aii i-ier
Bangabte' { 1{ 1 n
av1lue for self-derrelopntent" -r
{ She carure to
{ kncw
r -. th-e
cf ":
- -*<<,ii:
i" about.
ieveioprnent prograrnrules con<incLed b7'Tecirnicai Consutr.lai:ic"r
,,r.?reptetLeur3ntp-'.arnaiaka-
" r' (TECSCK) from her husband and w-as inciineet to joi*
Otganrsatlon or
;;i"p,".s:"TT?_T,Yf .-.--:::::i:Y:1],i:#:';::l_=:i::li':':"T.:=i'::
,^ :':::-J'-;--i::*1.- -'r--- ,-
1-:ii i:t= riirr-,rrr-.r-.i, -'..--i-rt1i;!.1-rr:.ii,.,.-i:::
iakj]1g
of TECSOK. There was no a"r{{ic*Lty in getiing selected" for
it ti*"r-motivators
"
the programme. During the qlyqranlrfte the trainer-motivator tried to expl*re
rerirship q:.- the possibilities of comrnerciaXizir-lg here creative abitrities. like painting, btit
:.: nothing concrete ernerged. Ultirnately Jayabharati decided on leather prcd,ucis.
"-.
i economir The consideration which pron-rpted this decision was that since her htisband's
iob was transferable to any part of the siate she needeC to choose an industry
'a,t .
'

which could be transplanted without much difficulty. h4anufacturing leather

"t'
. ,'.i:tj:.

ernpiify. = products diC nct krvol're rnuch r:nachinery and, therefore, suitecl her special
.,::.:
lircumstarices. After attenCing 'Enireprer-leurship Devetropment Frogra{nffi1e
(EDP),'she took tech-nical training irr Leather lndustries Devetropment Corpciration
of Karnataka" F{owever,Jayabharati attended only fifteen days of the six-month
pr*gtu**e, as she had to cornriru.te everyday from Tumkur to Barrgaioie. She,
however, made fu1l use of those fifteen days to pick up the important aspects
of manufacturing leather producLs.
Since her husband was working in industries Cepartment she v,ras required
to get clearance frorn his department befort she could actually launch the
verrture, which took almost one yeay. Karnataka State Finance Corporation
(KSFC) sarrctioned a loan of ( 50,000/- under the cornposite loan schenre, which
i problem:, was used to purchase two heavy duty sewing machines from Hyderabad. She
:s achieve',, decided against the purchase of a thlrd sewing machine, choosing to execute that
her hand,- specific job manually. A garage near her residence was rer-rted out and the unit
he sake of 'l narned "YASHASVI" was forn-raltry inaugurated on 18th August, 1988" To start
,y balance., with, she employed'only 3 workers. In the initial year the turnover was only
/iswanath., T 85,000, partly due to her husband's transfer to Barrgalore and the consequent
cl*sure of the r'llrit for relocation. Crrce established in Bangalore, she gradually
...
increased the scatre of operation with the nurnber of v'rorkers moving up to six.
rrr-lntunity,
children,: Jayabharaii provided a good exam'rple of how wonneri caxl successfully
iswanath,' perform their role as houser,vives and entreprerterrrs" Operating frorr' a portion
years, the'l of her-in-laws' house her overheaCs were consiCerably iow. This also helped
yearning. her to co-orCinate her famiiy affairs and business. Once pattern wexe decided
rations in sl-re would demonstrate to the workers how to execute them. After this, only
,ere spent. occasional supervision was required. She woutrd go out to collect orders or
stitching,i collect payments for the orders executed during the time her chitrdr:en and
ey moved, htasband were away from horne. Thus" while doing business she macle herself
available to the famiiy.
:

Her products were hand bags, gents' pouche,s, travel bags, watrlets, etc" for
!:rr.:;'i:si,t;t!s, ,

wlrich she purchased quality raw material frorn Bangatrore itsetf. ]ayabliarati had
 :=:1:
-t
Iniie':rene-:irai Ee,.re!op-e1t

i|:!.a escilfL 1,naodesl ii-ri,cvati,;a in prccluct deslgn. -lorne'of iter eiesigns 1verg ,

iveli s"ecei.reel by cllciorners aicng wilh repeat orcievs. {n the begtn*ing she had
difficuLties ir-r creaiing ai:':l retar::-irag skiltred Xabotnr. Workers would -,vcrk for...
'beiter
ot:re Gi two *:Lonths a:rc1 leaure vvhen on:poritinities can-Le L:p. Cver time
these problems r,vere cvercorne anC a cordiatr relatiorashlp establesheC with ihe i.l
worker"s. Workers were paid rno;ifhtry wases, with an incentive for meeting
t:': '
i;;:;,-iii;.3 t;-r==i,r;i1.i". a uL)y,,-rin;i.;:;J iiirit. E,.tii;"t vlris 31;+u crlar-ie iir {rril}-"Jy
unskilleC workers and subseqi;enily train tleer-n. Since qr-rality and finisit of .. r --.
the proCucts were irnportant factors cleterrnining the competitiveness o{ her' Ifl;:,:"wl
-,r

products, she did nct adcpt piece wage raie, which vroutrd have increased output -. ll',r::-. mov
..i:..
t''1A r
but at the cost of quanity :
t'
Siae sold her products maintrv to Leaiher Deveiopment Corporation of ilr,' acnrt
:
I emp
,

Karnataka. Hov,rever, she aLso catered to alternate sources sr-Lch ao solne Ii.,: ente:
firms in the corporate sector who ptraced orders for gift bags dr-rring seascns. I
. '

Custo*rers' suggestions y"rere eLiciied on a fevr n'iod-e1s of gifi iterrs and suitable. I

modificatiorts rnad,e accordingtry. Tteough this was a good source of demand,.

often a':r.,uch money was tied Llp as payments from public sectcr enierprises were
cletrayed. She atrso received orders through her friends and relatives. These.,
circles proviCecl Jayabharati v,rith a fair afl"Loi-rnt of word of moutXr publicity..,
Becau.se of her need to keep a- balance betr,veen honte and busil-less she never l
.

attemgried, arry aggressive marketing

Though imrnense potentiai existed for her tc expand her scaXe of operation,.
]ayabharat'i was not able to explort it as her first priority w-as always her farnily, ,

Increasiirg her scale of operation v,rould necessaritry involve stress and sirain on'
the faazeily frcnt which she would rather avoid. Though she could not have'
achieved what she had wittr.rorit her leusband's support, he was not activeLy in -
favoi-lr of her becoming a high profitre entrepreneur. At one stage she seriously 1/
cor-rsiCered increasing her involven"lerr-t" She condr-lcted an extensive rnarkei'. also.
surve}r and also explored the possibitrity of direct export. But preoccupations' societi
with cX"iiidren and farnitry prerzailed and any plans to expand were pnt on hold. activit
at least for another five years. This wotild ensllre that her children r,vould have. in all
grown up and her husband woelld have reached a stage iit his careel: when he, perfor
r,vould be pernaanently posted in Bax-Lgalore. .l politic
fayabharati Viswanath had, thus, conscior-lsiy kept her bnsiness within the. into ii
liil'uits set by her circumstances. As an entrepreneur she had encouraged many disctis
friends to be on their own. Banp;alore Doordarshan featured an intervie:,v with. to sfu
her and a trocal Caily had pubtrished her success story. She r,,ras a very private: The p
persoru confi:ring herself to her bttsiness and the family circle. ', wome
Be
first n
1, :Ivfention the quatrities of layabharati Viswanath as a woman entrepreneur. literat
2" IdentifSl ,the:specific proiriems faced by }ayabharati Viswanath as a'woman
. . enirepreneur and also suggest the solutions to solve the same. ' , ' ,,

.:

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