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In order to encourage entrepreneurship, the
theoretical framework of the article is
based on the Global Entrepreneurship Monitor (GEM) model, identifying education as one of
the important factors in promoting
entrepreneurship. It is increasingly being recognized
that entrepreneurship education is essential not
only for individuals but also for the success of
the entire nation. It has been said that India is the
land of entrepreneurs and business lies in the blood
of a majority of Indians, but still what have we,
as Indians, gained? Undoubtedly Rolls Royce for a lucky few, but no food and housing for
millions! That's where the true growth lies. Even after
60 years of independence we have not been able to eradicate poverty, illiteracy, unemployment
and various other social evils. A possible remedy to
all the above stated evils can be effective entrepreneurship.
The earliest definition of entrepreneurship, dating from the
18th century, makes it out as an economic term describing the process of bearing
the risk of buying goods at certain prices and
selling these at uncertain prices. Other, later
commentators, broadened the definition to include the concept
of bringing together the factors of production.
Richard Cantillon, a French Economist, was credited with giving the concept
of entrepreneurship a central role in economics.
In 1848, the British Economist, John Stuart Mill (1806-1873)
elaborated on the necessity of entrepreneurship in private enterprise.
Carl Menger (1840-1921) established the "Subjectivist Perspective of Economics" in
his 1871 Principles of Economics. The
entrepreneur, therefore, becomes the change agent
who transforms resources into useful goods and services, often creating the circumstances
that lead to industrial growth. However Menger saw the entrepreneur as an astute individual
who could envision this transformation and create the means to implement it. The
relationship between new business activity and
economic growth at the national level was through
the Global Entrepreneurship Model proposed by Reynolds et al (1999). The first economist to
put the entrepreneur at the central stage of
economic development was Schumpeter, who broke
free from the prevailing comparative static
approach and recognized economies as
self-transforming systems, with entrepreneurs as the agents
of transformation (Schumpeter 1934; Witt 2002). The process of `creative destruction'
contributes to greater productivity and, hence,
greater economic growth. Thus the economic growth
of a country is dependent on the level of entrepreneurial
activity. |
