Small Scale Industries in developing countries plays a vital role in its economic development. These small scale industries directs towards a stage of economic transition representing a shift to modern technology from traditional methods just after globalisation. The diversities in these industries reflects towards the variations in process of its transitional nature. As we all are aware that these small scale industries mostly use simple skills and machinery because of lack of knowledge, lack of finance etc and to transform them into large scale industries entrepreneurs play an important role (Bolton, 2000).
These small scale industries beside being a part of economic generation for the country, such industries have unique characteristics of economic generation and organisational phenomenon because of which they play a social and political role in employing the local population, utilising the resources in balanced form, generating income and bringing change in a peaceful and gradual manner within a society.
In the development of these industries entrepreneurs are very important as not only solve the problem of industry development but also the others problems of unemployment, problem related to unbalanced development of areas, problem of economic power concentration and diverting the path of profits from traditional methods to new latest technologies and investing money in the right direction. The present study will attempt to cover the significant issues faced by the entrepreneurs in small scale industries, entrepreneurial activity in this sector and the factors influencing the probability of new venture success.
Small Scale Industries are said to play an important role in stimulating the economic activity as they bring more employment, needs less investment, have lots of government support and have reduced regional imbalance. But in today’s scenario small scale industries are not able to play their role as efficiently because of few constraints which these entrepreneurs face.
Towards the road of success, an entrepreneur has to face various challenges. The very first challenge is the (Kanchana, 2013)
Entrepreneurs who are motivated for attaining higher achievements rather than profits or financial gains will come forward for changing the stagnant inertia and will of course create the preconditions for development. In any type of economy like capitalistic economy or state capitalism growth cannot be imagined without the Entrepreneurial activities (K. Lavanya et al. 2008). The very famous entrepreneurial activity in small scale industry was shown by Jamshedjee TATA, a Parsi who started a small steel enterprise in Jamshedpur, India. Today TATA is a world known name of Steel which was started as an entrepreneurial activity. The other successful entrepreneurial activities are entrepreneurs getting government support especially in cotton and cement industry in Indian economy. The famous entrepreneurs who got success from small scale industries are Birla, TATA, DhirubhaiAmbani who started their enterprises on a small scale and today they are ruling the world and have made the country one of the most preferred country for investment world wide.
India is an agricultural economy which depends mostly on its agricultural and industrial performance for its economic development. India’s agricultural sector has huge capacity to provide employment but is unable to do so, therefore the government has accelerated the growth of this sector by assigning high priority to small scale entrepreneurship for development of the small sector industries like agriculture.
The various factors which will lead to success for entrepreneurs in entering to small scale industries are: a huge support from the government like in terms of concessions and incentives for buying lands and machineries. Entrepreneurs show more interest in those economies which has free economy and provide security and prestige to them. India can be a good venture for entrepreneurs as the Indian government in its Five Year Plan programme provide land and incentives to entrepreneurs for establishing their industries. There are few institutions and programmes like National Small Industries Corporation, Financial Corporations, Small Scale Industries Board, are established by the State Government to promote new entrepreneurs in setting up their enterprises.
Factors leading to success in new ventures are formation of new policies and programmes which are backed by strong support from institutions with an aim to identify and motivate the new pool of entrepreneurs (Padmanand, 2004). These new entrepreneurs who are coming from the non-traditional groups are getting full support so that they can break the monopoly of dominating business caste and communities and bring more opportunities and employment to the Nation. Another factor for success in entering into new venture for entrepreneurs is the removal of regional disparities in the various businesses (I. Malyadari ,2014).
Thus, government is trying hard and giving full hand support to these small scale entrepreneurs by developing an effective mechanism which will help these small scale entrepreneurs to defy the various challenges and risks which they face while starting a new venture. If we talk about American government there have been great opportunities available for small scale industries like by giving special plans for women, disabled veterans, minorities to motivate them to come up with their business plan and support the economy (Rose, 2007).
Conclusion
The process of development of an economy is also dependent on its entrepreneurial activity. Without local support and government policies and programmes such entrepreneurial activities cannot gain momentum (Sameer, 2007). Thus it is very urgent to come out from the vicious circle and start the process of development- to start with the small scale industries are the best and most desirable dent. Thus the above study shows that the probability of success for entrepreneurs while entering small scale industries with new ventures is more and have good future indeed.
References
Bolton B, and Thomson J. (2000). Entrepreneurs talent temperament, technique. Butterworth – Heinemann, Boston.
Curran J. and Blackburn R.A, (2001) Researching the small enterprise, Sage Publications : 1. London.
Lavanya Latha, C. Madhavaiah and B.E.V.V.N. Murthya (2008). Small Scale Entrepreneurship in India. Serbian Journal of Management 3 (2) (2008) 171 – 187
Malyadri. (2014). An economic appraisal of entrepreneurship in small scale industry: a study on Nellore district. International journal of emerging research in technology & Management.ISSN:2278:9359 (Volume-3, Issue-2)
Padmanand, V., and Patel, V.G. (2004). Managing India s Small Industrial Economy. New Delhi: Sage publications
R.S.Kanchana, J.V.Divya and A.AnsalnaBeegom. (2013). Challenges faced by new entrepreneurs. International journal of current research and academic review. ISSN: 2347-3215 Volume 1 Number 3 (2013) pp. 71-78
Rose. (2007). Challenges faced by the Small scale entrepreneurs. Retrieved from https://www.thoughtclusters.com/2007/01/challenges-faced-by-small-scale-entrepreneurs/
Ruddar D. and Sundharam, K.P.M., (2006) Indian Economy, S.Chand& Company Publications, New Delhi, p.683.
Ruddar D. and Sundharam K.P.M., (2006) Indian Economy, S. Chand and Company Ltd., New Delhi, p.646-650
Saini, J.S., and Gurjar, B.R.(2001). Entrepreneurship and Education, Challenges and strategies
Sameer. (2013). What are the problems faced by the Small scale Entrepreneurs. Retrieved from https://www.publishyourarticles.net/eng/articles2/what-are-the-problems-faced-by-small-scale-entrepreneurs/2716/
Smriti Chand. (2012). 10 major problems faced by small scale industries. Retrieved from https://www.yourarticlelibrary.com/industries/10-major-problems-faced-by-the-small-scale-industries-of-india/23457/
Vasant D., (2004). Dynamics of Entrepreneurial Development and Management. Himalaya Publishing House, New Delhi, p.17
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