eChapters

Introduction

Entrepreneurship is crucial for economic development, especially during crises when job losses push people to find alternative livelihoods, often turning to entrepreneurship as a means of survival. Its impact is highly beneficial, promoting growth, wealth creation, and better living standards. In developing countries like India, entrepreneurship offers a path to holistic development, particularly for disadvantaged groups traditionally dependent on agriculture. Uplaonkar and Biradar (2015) noted that entrepreneurship development effectively generates employment, increases income, reduces poverty, improves health, and ensures food and nutritional security. Recognizing the importance of entrepreneurship, stakeholders in the agricultural sector now see its positive impact on business sustainability. Verhees et al. (2011) argued that promoting entrepreneurship in agriculture can significantly reduce poverty and boost rural prosperity, directly addressing socio-economic challenges in rural areas (Bhooshan and Ranjith, 2022). Therefore, supporting the entrepreneurial ecosystem in rural sectors through programs and schemes is essential.

Introduction

Entrepreneurship, known for its ability to drive innovation, economic development, and societal change, is a dynamic force that plays a crucial role in global advancement. However, the path of an entrepreneur is not a straightforward journey from concept to achievement. Instead, it is a complex process influenced by numerous factors, which together form the entrepreneurship development cycle. Gaining a deep understanding of this cycle, along with the entrepreneurial environment and the challenges entrepreneurs face, is essential for cultivating a thriving entrepreneurial ecosystem.

The entrepreneurship development cycle refers to the various stages that entrepreneurs go through as they turn ideas into successful ventures. The cycle starts with ideation, where entrepreneurs identify opportunities and develop innovative solutions to address unmet market needs or problems. This is followed by a feasibility assessment, during which entrepreneurs assess the potential of their ideas, considering market demand, competition, and the resources needed. After confirming the viability of their concepts, entrepreneurs move on to resource acquisition, gathering the capital, talent, and infrastructure necessary to bring their ideas to life. The subsequent phases include launching the venture, establishing a market presence, and pursuing growth through strategic decision-making and adaptability to shifting market conditions.

Introduction

Meaning of Entrepreneur

The term “entrepreneur” is derived from the French verb entreprendre, which means “to undertake.” Historically, its meaning has evolved. In the early 16th century, it referred to individuals involved in engineering tasks like construction. By the 18th century, the term came to describe those engaged in economic activities. Over time, the concept of an entrepreneur shifted from someone participating in military ventures to someone actively involved in business and economic pursuits. Today, an entrepreneur is defined as an individual who innovates, organizes resources, and takes on risks to create new ventures or products with the goal of generating profits.

Richard Cantillon was the first who proposed the term “entrepreneur is an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future.”

Introduction

Entrepreneurship has become a major driver of economic development in recent years. It involves starting new businesses or revitalizing existing ones, often through recognizing and seizing new opportunities. Entrepreneurs are individuals who organize, manage, and take on the risks of a business venture with the aim of making a profit. They identify market opportunities and introduce new technologies and organizational improvements. Entrepreneurs constantly innovate and create value from these opportunities. According to Hisrich (1990), entrepreneurs are proactive and creative individuals who can organize resources and manage risks and failures to succeed.

To grow as an entrepreneur, it is essential to develop and refine key entrepreneurial traits. These traits shape an entrepreneur’s skills and abilities, aligning with their motivations and guiding them to drive their business forward. Entrepreneurial characteristics are a mix of personal, social, and environmental factors that influence a business ecosystem. These traits play a key role in shaping a company’s goals and strategies, ultimately affecting its performance.

Concept of Entrepreneurship

Entrepreneurship can be defined as the propensity of mind to take calculated risks with confidence to achieve a pre-determined business or industrial objectives. That points out the risk-taking ability coupled with decision making. The word ‘entrepreneurship’ typically means to undertake. It owes its origin to the western societies. But even in the west, it has undergone changes from time to time. In the early 16th century, the term was used to denote army leaders. In the 18th century, it was used to denote a dealer who buys and sells goods at uncertain prices. Towards 1961, Schumpeter, used the term innovator, for an entrepreneur. Two centuries before, the concept of entrepreneurship was shady. It is only in the recent years that entrepreneurship has been recognized widely all over the world like in USA, Germany, Japan and in the developing countries like ours. Gunnar Myrdal rightly pointed out that Asian societies lack entrepreneurship not because they lack money or raw materials but because of their attitudes. Till recently, in the west, the entrepreneurship is mainly an attribute of an efficient manager. But the success achieved by entrepreneurs in developing countries demolishes the contention that entrepreneur is a rare animal and an elusive character. In India the definition of an entrepreneur being the one who undertakes to organize, own and run a business has been accepted in a National Seminar on entrepreneurship organized in Delhi in 1975. Still there has been no consensus on the definition of entrepreneurship and qualities of entrepreneurship.

Introduction

Globalization, as defined by the International Monetary Fund (IMF), refers to the increasing economic interdependence among nations, characterized by rising volumes and diversity of cross-border transactions in goods and services, international capital flows, and the more rapid dissemination of technology worldwide.

Key Characteristics of Globalization

1. Expansion opportunities for businesses globally.

2. Elimination of distinctions between domestic and international markets.

3. Freedom to buy and sell products and services across any country.

4. Production and distribution facilities are established based on economic feasibility at optimal locations worldwide, rather than national priorities.

5. Product planning and development are influenced by global market conditions.

6. Sourcing raw materials from across the globe to maximize efficiency.

7. Global strategies, organizational structures, cultures, and management practices.

8. Viewing the world as a unified market.

Introduction

In simple terms, business refers to buying and selling of products. Business would define itself as an organized effort through companies aimed at supplying consumers with products and services in a return for monetary compensation. However, this simplistic definition is insufficient to assess the impact of the environment on modern international business operations. For easy understanding, modern business can be explained as a complex field of industry and commerce involving activities associated with both production and distribution. These activities cater to the wants and desires of society at one extreme and provide profit for business firms at the other.

Indian leaders, particularly the first Prime Minister Dr. Jawaharlal Nehru, who had conceived the theory of five year plans, had regarded high economic growth and higher income among poor population as the foremost objectives before the newly independent nation. To achieve these objectives, government was made to play a very important role, and since 1951, a series of five year plans have been the driving forces behind the economic prosperity of the country. Despite of experiencing growth in 1950s, it was still lower than that of many Asian countries. Between 1951-79, the Indian economy had grown at an average rate of 3.1 percent a year at constant prices. Growth in the industrial sector had been about 4.5 percent a year, while for the agriculture sector, growth was 3.0 percent over that period. Many of the political leaders associated with the movement were also in support of a socialistic development pattern. They favored state interference in the economy. They encouraged state ownership of core industries.

What is book keeping?
Book keeping    is defined as;
1. The art of recording business transactions (pecuniary transactions) in a regulator and systematic manner.
2. Book keeping is the science and art of correctly recording in books of  accounts all those business transactions that result in the transfer of  money or money’s worth.
3. Book keeping is an art of recording day to day business transactions in a  set of books in a most systematic manner.
4. It is the process of analysing, classifying and recording transaction in accordance with pre-conceived plan.

Popularly the term management is used to refer to the group of managerial personnel of an enterprise. But the use of the term management in this sense is not correct, because the managerial personnel of an enterprise are usually designated as ‘managers’, ‘executives’ or administrators. Strictly speaking the term management refers to functional concept of management. Management refers to the sum total of all those functions or activities, which relate to the laying down of policies, plans and purposes, securing men, money, machinery needed for the achievement of the organisational objectives, putting all of them into operation and supervising and checking their performances in order to ensure the productive use of human and material resources for the maximum benefit or profit of the organisation, its employees and society in general.

Management is the sum total of five principal functions namely planning, organising, staffing, directing and controlling. The functional areas of management include: a) Financial management, b) Personnel management, c) material management, d) Production management, e) marketing management and f) Office management.

A Eco/green job, also called a green-collar job is, according to the United Nations Environment Program “work in agricultural, manufacturing, research and development (R&D), administrative, and service activities that contribute(s) substantially to preserving or restoring environmental quality. Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity; reduce energy, materials, and water consumption through high efficiency strategies; de-carbonize the economy; and minimize or altogether avoid generation of all forms of waste and pollution.

• Livestock play a vital role in rural economy. The combination of livestock and crop farming enables complementarity through productive utilisation of farm by-products and conservation of soil fertility, thus increasing rural farm income. Apart from providing food products like milk, egg and meat, livestock sector generates productive employment and valuable supplementary income to the vast majority of rural households, majority of whom are small and marginal farmers and landless labourers. Growing human population, increasing urbanisation, rising domestic incomes and changing lifestyles in the country have led to increasing demand for livestock products. Livestock like cattle (bulls and cows), buffaloes, sheep and goat are an integral part of India’s socio economic life. Animal husbandry is a part of agricultural economy. It directly supports about five per cent (20 million) of our population. India has two per cent of the geographical area and accounts for 15 per cent of livestock population (400 million). Cows and buffaloes comprise 56.5 per cent of world population.India ranks first, second, third and f ifth in buffalo, cattle and goat, sheep and poultry population in the world, respectively. (Economic Survey, 2008-09). The total livestock population of Tamil Nadu stood at 249.42 lakhs which comprises 4.94, 1.69, 9.10, 6.58 and17.7 per cent of the cattle, buffalos, sheep, goat and poultry population of the country (17th livestock census All India Summary Report, 2004).

Veterinary practice has gone through different phases with different components
• Phase I - Patient and Veterinarian: objective was only to treat illness of  the patient by veterinarian.
• Phase II – Patient - Veterinarian – Owner: Veterinarian was to take  recognition of owner and his/her needs.
• Phase III - Patient - Veterinarian – Owner – Law: Additional  responsibility on veterinarians to work as per the law (e.g. Registration  at VCI, Veterinary jurisprudence, Giving evidence at court of law, Health  certificates,    Death    certificate,    Cruelty    to    animals,    export   and    import    law,     euthanasia rules, etc.)
• Phase IV - Patient - Veterinarian – Owner – Law – Environment: Further  added responsibility to protect environment.  E.g. Biomedical waste  management. 

Retailing
Retailingincludes all activities involved in selling and providing goods and  services to ultimate consumers for personal or household use.
Classification of retail establishments
Based on ownership
• Independent retailer- one store ownership
• Chain retailer- many stores but owner is one
• Franchise – many owners of many stores

Procurement is acquisition of goods and services.
Procurement includes:
• Planning the acquisition
• Planning the contracting
• Requesting proposals 
• Selecting a vendor
• Administering the contract
• Closing the contract 

Planning the acquisition

It is based on goals of an enterprise acquisition varies – depends on what, when and where to produce. Based on these factors acquisition requirements are arrived.

• A project is a specific plan or design presented for consideration.

• It is a location specific activity with specific objectives, time and cost limitations and of non-repetitive nature.

• In banking, projects refers to an activity in which financial resources are expended to create capital assets that produce benefits over an extended period of time and which logically lends itself to planning, financing and implementing as a unit. Whereas, UNIDO defines a project as a proposal for an investment to create and or develop certain facilities in order to increase the production of goods/services in a community over a certain period of time.

• Projects are common term used by many to denote specific action plans.

• Project can be long term or short term, limited or comprehensive, single sector concentrated or multi sector concentrated.

Scheme

The needy livestock farmer visits the banks in the local area and enquire with the bank manager about the livestock projects and after having discussion with him, he visits the technical expert. A scheme can be prepared by a beneficiary after consulting local technical persons of State animal husbandry department, DRDA, SLPP, etc. livestock co-operative society/union/federation/commercial livestock farmers. If possible, the beneficiaries should also visit progressive livestock farmers and government/military/agricultural university livestock farm in the vicinity and discuss the profitability of livestock farming. A good practical training and experience in livestock farming will be highly desirable. The livestock co-operative societies established in the villages as a result of efforts by the Livestock Development Department of State Government and National Livestock Development Board would provide all supporting facilities particularly marketing of fluid milk. Nearness of livestock farm to such a society, veterinary aid centre, artificial insemination centre should be ensured. There is a good demand for milk, if the livestock farm is located near urban centre. The scheme should include information on land, livestock markets, availability of water, feeds, fodders, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of assistance available from State Government, livestock society/union/federation.

Sources of agriculture/ Livestock finance
Finance for agriculture can be obtained from formal and informal sources Formal sources
Credit co-operatives
Commercial banks
Government
Regional Rural Banks
Informal sources
Money lender
Friends and relatives
Traders
Landlords
3 R’s OF CREDIT
To estimate the rationality of a loan, it is essential to know credit analysis.

Entrepreneurship theory has been evolving over the last 20 years and is ever growing. It is defined as a verifiable and logically coherent formulation of relationships, or underlying principles that either explain entrepreneurship, predict entrepreneurial activity or provide normative guidance (prescribing the right action in particular circumstance). Entreprenuership is interdisciplinary and contains various approaches that would increase one’s understanding of it. One way to examine these theories is with a ‘schools of thought’ approach that divides entrepreneurship into specific activities. These activities may be within a ‘macro view or a micro view’, but all address the conceptual nature of entrepreneurship.

Development of entrepreneurship

Creativity: Creativity and innovation are often used to mean the same thing, but each has a unique connotation. Creativity is the ability to bring something new into existence. Ideas usually evolve through a creative process whereby imaginative people bring them into existence, nurture them, and develop them successfully. The creative process for an idea contains five stages – germination, preparation, incubation, illumination, and verification.

National institute for entrepreneurship and small business

Development (NIESBUD)

The National Institute for Entrepreneurship and Small Business Development (NIESBUD) was established in 1983 by the Ministry of Industry (now Ministry of Small Scale Industries), Govt. of India, as an apex body for coordinating and overseeing the activities of various institutions/ agencies engaged in Entrepreneurship Development Particularly in the area of small industry and small business. The Institute which is registered as a society under Govt. of India Societies Act (XXI of 1860). The policy, direction and guidance to the Institute are provided by its Governing Council whose Chairman is the Minister of SSI.

Livestock farms

The veterinarians can start their own livestock farms with their vast technical knowledge; they can infuse scientific management techniques in their own farms. In the WTO (World Trade Organisation) era, GMP (Good Manufacturing Practices) and SPS (Sanitory and Phytosanitory) measures are of great importance for export of livestock commodities, as the emphasis in international trade is on quality and food safety. If veterinarians start their own scientifically managed livestock enterprise, they can exploit this opportunity. Further, practicing proven scientific management techniques will improve productivity of animals that would lead to overall quantitative and qualitative improvement of livestock sector.

Introduction

The process of setting up a business is preceded by the decision to choose entrepreneurship as a career and identification of promising business ideas upon a careful examination of the entrepreneurial opportunities. Generation of ideas is not enough; the business ideas must stand the scrutiny from techno economic, financial and legal perspectives. That is, after the initial screening of the ideas that do not seem promising prima facie, you should conduct an in-depth examination of the chosen three-four before settling for the one where you would like to exert your time, money and energies. You should prepare a business plan that will serve as the road map for effective venturing, whether you may require institutional funding (in which case it is necessary to do so) or not. Setting up of new business enterprises is a very challenging task; you are likely to encounter many problems en route. It’s advisable to be aware of these problems.