Here is a compilation of essays on ‘Entrepreneurship’ for class 11 and 12. Find paragraphs, long and short essays on ‘Entrepreneurship’ especially written for school and college students.
Essay on Entrepreneurship
Essay Contents:
- Essay on the Introduction to Entrepreneurship
- Essay on the Definition of Entrepreneurship
- Essay on the Growth and Success of Entrepreneurship
- Essay on Entrepreneurial v/s Managerial Styles
- Essay on Entrepreneurial Development
- Essay on the Beliefs Regarding Entrepreneurship
- Essay on Financing of Enterprise
- Essay on the Factors Essential for Successful Entrepreneurship
- Essay on the Benefits of Entrepreneurship
Essay # 1. Introduction to Entrepreneurship:
Entrepreneurship is the name given to the factor of production which performs the functions of Enterprise. In economics, Land, Labour, Capital, Organisation and Enterprise are the five factors which are thought to be the basis of all the production activities.
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Entrepreneurship in a broader sense can be considered as a process of action undertaken by an entrepreneur (Person) to establish his enterprise. It is a creative and innovative response to the environment.
Entrepreneurship can be described as a creative and innovative response to the environment. Such responses may take place in any field of social endeavour may be business, agriculture, social work and education etc.
For the entrepreneur it is important to have knowledge about the economic and political environment, more particularly about the economic policies of the government and the financial as well as commercial institutions.
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Thus a simple definition of entrepreneurship is doing new things or doing things which are already being done in a new way.
According to Dr. J.E. Stepenek, “Entrepreneurship” is the capacity to take risk; ability to organise and desire to diversify and make innovations in the enterprise.
According to Higgins, Entrepreneurship is meant for the function of seeing investment and production opportunity, organising in enterprise to undertake a new production process, raising capital, hiring labour, arranging the supply of raw materials, finding site, introducing new techniques and commodities, discovering new sources of raw materials and selecting top managers for day to day operation of the enterprise.
It may be concluded that entrepreneurship is a composite skill, the resultant of many qualities and traits. These include, imagination ready to take risk, ability to bring together and utilize other factors of production such as capital, land and labour along with intangible factors such as capability to mobilise scientific and technological developments.
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Entrepreneurship thus involves taking risk and making essential investments under conditions of uncertainty. At the same time it is connected with innovation, planning and taking decisions so as to increase productivity in industry, business and agriculture etc. It thus plays a key role in the process of economic development.
Essay # 2. Definition of Entrepreneurship:
Entrepreneurship is a process of action an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a resultant mix of many qualities and traits of an entrepreneur.
Entrepreneurship can be defined as a process undertaken by entrepreneur to augment his business interests. It is an exercise involving innovation and creativity that will go towards establishing his/her enterprise.
Entrepreneurship is the inclination of mind to take calculated risks with confidence to achieve a predetermined business or industrial objectives.
Essay # 3. Growth and Success of Entrepreneurship:
Entrepreneurship has opened avenues of great scope in the Indian economy. Our national economy is most suited to the growth of small business enterprise. Small business units offer a more convenient means of nurturing and developing entrepreneurship by providing the means of entry into business for new entrepreneurship talents. Small-scale industries are labour-intensive and can play an important role in solving the problem of unemployment.
Success of Entrepreneurship:
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Following aspects are necessary for the successful entrepreneurship:
1. Regular inflow of information related to buyers, consumers, distributors, dealers, retailers, transporters etc., about raw material, quality aspects, government organisations, employees and competitors.
2. Satisfying the needs of customers.
3. Generation of adequate cash flow.
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4. Regular objective assessment of the enterprise.
5. Improving productivity.
6. Maintenance of quality.
7. Use of technology of the time.
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8. Be innovative.
9. Keep employees motivated.
10. Scrap or waste material be utilised properly.
11. Time management.
Essay # 4. Entrepreneurial v/s Managerial Styles:
An entrepreneur is a person who is motivated to satisfy a high need for achievement in innovative and creative activities. This creative behaviour and innovative spirit forms a process of an endless chain and is termed as entrepreneurship. An entrepreneur is also required to manage his business. He has to perform both entrepreneurial and managerial functions. After the start of the business he becomes more as manager.
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Manager is one who specialises in the work of planning, organising, leading and controlling the efforts of others. He does it through systematic use of his classified knowledge and principles. He should have an insight of job requirement, which he should continuously update.
An entrepreneur must adopt the style of professional management. He must organise managerial functions by setting long term objectives, formulating strategic policies, developing management information system, monitoring and evaluation systems. He is required to possess management knowledge related to technical, economical, financial, human and administrative aspects.
There is a vast difference between owner-manager and professional-manager. The owner- manager is identified with individuality, flair, strong motivation to achieve success and prosper, while the professional-manager is concerned with the planning, organising, motivating and controlling. Owner-manager builds the organisation, assumes all business risks, and also loses his reputation and prestige in the event of failure of business, whereas professional-manager is not exposed to such risks.
Thus entrepreneurship is a process of combining resources to produce new goods or services and reappears to initiate another change. Entrepreneurs are also required to play other roles, especially those of capitalist and manager. Managerial function of an entrepreneur is a continuous process of combining the factors related to production.
Essay # 5. Entrepreneurial Development:
For the economic development, entrepreneurial development is necessary. For the purpose of entrepreneurial development, rapid growth of small scale sector is necessary. Entrepreneurial development programmes are designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his role effectively.
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Main objective of the entrepreneurial development programme is to motivate and assist prospective and potential entrepreneurs to set up small scale units of their own and thus become self-employed and contribute significantly to production and employment in the country.
Entrepreneurial development programme must be designed properly and should incorporate the following:
(i) Developing, achievement, motivation and sharpening entrepreneurial traits and behaviour.
(ii) Project planning and development, and guidance on industrial opportunities, incentives and facilities, rules and regulations.
(iii) Developing managerial and operational capabilities.
Keeping the target group and target area in view various strategies and approaches are adopted. The process of entrepreneurial development is designed very carefully and starts from identifying the potential and right candidates, linking suitable project with each one, and then training and developing the managerial and entrepreneurial capabilities, counseling and motivating them, and then providing the required follow-up support to help them in establishing their venture.
Objectives:
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Objectives of entrepreneurial development programme are to help to:
(i) Develop and strengthen their entrepreneurial quality.
(ii) Analyse environment related to small business and small industry.
(iii) Select product and its project.
(iv) Formulate projects.
(v) Understand the procedure for setting up of small enterprise.
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(vi) Support needed for launching the enterprise.
(vii) Acquire basic management skills.
(viii) Appreciate the social responsibilities.
(ix) Let him set the objectives of his business.
(x) Prepare him to accept risks.
(xi) Take strategic decisions.
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(xii) Develop communicating skills.
Training for Entrepreneur:
Proper training is essential for the success of any industry in production techniques, management, marketing and other aspects.
Small Industries Service Institutes and their Extension Centres are organising trainings:
(i) To improve technical skills of workers,
(ii) For acquainting the entrepreneurs with advanced production and management techniques.
The courses for workers are organised in the following areas:
(a) Shop practice courses such as machine shop practice, tool room practice, foundry, blacksmithy, electrical shop practice etc.
(b) Trade oriented courses, such as tool making, fitter, sheet metal, pattern making, carpentry etc.
(c) Process oriented courses, such as welding, heat treatment, electroplating, leather works etc.
(d) Product oriented courses, sport goods, foot wear, paint, varnish making etc.
Training programmes for entrepreneurs are of two types namely:
(i) For graduate and diploma holder engineers, physics and chemistry graduates and
(ii) For rural artisans, educated unemployed, ex-servicemen, weaker sections of the society, women entrepreneurs etc. with special courses for each of the categories of persons.
For providing training and upgradation of technology and managerial skills, specialised institutions have been set up.
For conducting entrepreneurship development programmes, the lead was given by Small Industries Development Organisation through its small industries service centres. Entrepreneurship Development Institute of India (EDII) was established in 1983 at Ahmedabad as a resource organisation at the national level for the purpose of creating the institutional infrastructure for entrepreneurship development.
National Institute for Entrepreneurship and Small Business Development (NIES BHD) was established by the central Government at New Delhi, with the objective of coordinating activities related to entrepreneurship and small business development.
In addition, institutions established by the Government are:
(i) Rural Entrepreneurship Development Institute (RED) at Ranchi.
(ii) Rural Management and Management Centres (RMEDC) at Maharashtra.
Other organisational actively conducting entrepreneurship development programmes are:
(i) State Bank of India
(ii) IDBI.
(iii) Centre for Entrepreneurship Development at Ahmedabad and Hubli.
(iv) State financial corporations.
(v) Industrial consultancy organisations in various states.
(vi) Small Industries Extension Training Institute, Hyderabad.
(vii) Institute of Entrepreneurship Development (IEDs) in Uttar Pradesh, Bihar and Orissa.
(viii) Management Development Institute (MDI) at Gurgaon (Haryana) near Delhi.
Some of the other institutions for entrepreneurial development are:
1. Central Institute of Tool Design, Hyderabad.
2. Central Tool Room and Training Centre, Calcutta.
3. NI SIET, Guwahati.
4. Institute for Design of Electrical Measuring Instruments, Bombay.
5. Electronic Service and Training Centre, Ramnagar.
6. Process-cum-Product Development Centre for Glass and Ceramic Industry, Ranchi.
7. Process and Product Development Centre, Agra.
8. Process and Product Development Centre, Meerut.
9. Central Institute of Hand Tools, Jalandhar.
10. Hand Tool Design Development and Training Centre, Nagpur.
11. New Indo-Danish Tool Rooms, Jamshedpur and Bhubaneswar.
12. Ino-German Tool Rooms-Indore, Ahmedabad and Aurangabad.
13. National Institute for Entrepreneurship & Small Business Development, New Delhi.
14. National Institute of Design, Ahmedabad.
15. Centre for the Improvement of Glass Industry, Firozabad.
16. National Council for Cement and Building Materials, Delhi, Ballabgarh, Hyderabad, Patna and Madras.
17. Indian Plywood Industries Research Institute, Bangalore.
18. Central Pulp and Paper Research Institute, Saharanpur.
19. National Federation of Industrial Cooperatives Limited, New Delhi.
20. Central Machine Tool Institute, Bangalore.
Essay # 6. Beliefs Regarding Entrepreneurship:
According to literature there are many myths about entrepreneurship:
But myths and realities about its are different as follows:
1. Myth about entrepreneurs is that they are born not made but “reality” is that entrepreneur characteristics and traits may be acquired through properly structured learning.
2. Myth regarding entrepreneurs is that all required is money but generally it is observed that excessive and surplus money reduces the risk taking opportunities, scarce for care resources and grasp for opportunities.
3. Myth regarding entrepreneurship is that it is profile of traits and characteristics but practically it is a combination of situational issues.
4. Myth about entrepreneurs is doer not thinkers whereas the reality is that frequent thinking in planning, creativity, innovation and risk taking is required.
5. As per myth “Business schools have no place in entrepreneurship” but in actual practice most of the successful entrepreneurs have come from engineering courses and business schools.
Essay # 7. Financing of Enterprise:
Finance is the main input of any enterprise. The entrepreneur needs capital to start with, and he also needs financial assistance at every stage of the project. Project finance is required for both short term and long term.
(a) Short-term Finance:
These usually refer to the funds required for a period of less than one year. These are usually required to meet variable, seasonal or temporary working capital requirements. Main sources for short term finance are borrowing from banks, trade credit, installment credit and customer advances.
(b) Medium-term Finance:
Period of one year to five years are regarded as a medium- term. These are generally required for permanent working capital, small expansions, replacements, modifications etc. These can be raised by issue of shares and debentures, borrowing from banks and other financial institutions, ploughing back of profits.
(c) Long-term Finance:
Periods more than 5 years are regarded as long-terms. These are required for procuring fixed assets, for substantial expansion, modernisation etc. Important sources of long-term finance are issue of shares and debentures, loans from financial institutions and ploughing back of profits.
Sources of Finance:
The sources from which the entrepreneurs can meet their financial needs for their projects are grouped as:
(a) Internal source, and
(b) External source.
In addition, the entrepreneur raises his finance by availing of available subsidies, state aid to industries etc. A judicious mix of funds from these sources should be given priority.
(a) Internal Sources of Finance:
(i) Personal and family savings.
(ii) Loans from L.I.C. and Provident Fund Account.
(iii) Loans against assets like land and property.
(iv) Loans against shares and debentures.
(v) Loans from relatives and friends.
(b) External Sources:
Substantial amount is required by an enterprise to buy machinery and equipment and to purchase land and buildings.
These finances are generally arranged from following sources:
(i) Borrowing from Banks.
(ii) Term-lending from institutions like IDBI; IFCI, Industrial Development Corporations etc.
(iii) From Government and Semi-Government agencies.
(iv) Other sources.
Institutional Finance:
Institutional finance is available for large, medium, small and tiny industries by commercial banks. Commercial banks include the State Bank of India group, nationalised banks, private sector banks and development corporations which have been especially established to provide industrial finance.
In addition, the Reserve Bank of India gives credit guarantees and the ECGC gives export guarantees to the small-scale sector. Industrial Development Bank of India (IDBI), by its refinance operations, plays a significant role in the promotion of the small scale- sector. The National Small Industries Corporation (NSIC) offers financial assistance in the form of its hire-purchase schemes.
Besides, new institutions like mutual funds, lease companies, financial service institutions, investment companies, merchant banks etc. provide financial assistance and financial services to industries.
Essay # 8. Factors Essential for Successful Entrepreneurship:
The following aspects/factors are essential for successful entrepreneurship:
1. Regular inflow of information concerning consumers or buyers, distributors and dealers/retailers, transporters, etc., about raw materials, quality aspects, competitors, government organization and employees.
2. Aspects regarding satisfaction of consumer requirements.
3. Generation of adequate cash flow.
4. Regular objective assessment of the enterprise.
5. Aspects concerning productivity improvement.
6. Quality maintenance.
7. Utilization of upto date technology.
8. To be innovative in view of competition.
9. Keep employees motivated.
10. Proper utilization of scrap or waste material.
11. Proper time management.
Essay # 9. Benefits of Entrepreneurship:
Entrepreneurship has following three benefits for society:
1. Economic Growth:
These provide economic upliftment of society and generate labour employment.
2. Productivity Improvement:
It helped in improving the productivity, which means the ability to produce more goods and services with less labour and other inputs.
3. New technologies, products and services:
It helps in promoting innovative technologies, products and services.