The process of identifying and explaining factors that support and enable the development of innovative solutions is called Entrepreneurship Stimulation. It is considered as a holistic approach that integrates various functions of business for the purpose of achieving organisational goals and improving the economic wealth of the country.
System of Stimulation
The stimulation refers to the process of encouraging stimulation entrepreneurial activities. It relating to potential entrepreneurship and entrepreneurial activities. It means the development of a positive environment or conditions required for effective entrepreneurial activities generally it is divided into two types such as:
i.Public system stimulation.
ii.private system of Stimulation.
Public system of Stimulation
The stimulation that includes govt policies concerned with stimulating economic growth encouragement entrepreneurship is called public system of Stimulation. Generally it includes all type of direct and indirect support provided by the govt for the development of an entrepreneurship of India. Normally it works through:
i. Incentives– Financial & non financial given for the encouraging business.
ii. Subsidy– Single lump-sum allowed from national interest by Government.
iii. Assistance – Supporting elements provided by various sectors for development of Entrepreneurshi
As shows in the above diagram the public system of Stimulation is further divided into 2 types such as:
1.Direct support provided by the Govt,That includes incentives, Subsidy & assistance etc provided by the govt to various entrepreneurs.
2.Indirect support provided by the Govt, This includes institute support provided by Govt to entrepreneurs through financial institutions.
Private system of Stimulation
The stimulation that includes all private agencies on industrial associations formed to support & protect the right and particular industry is called private Stimulation. Generally such agencies are playing a crucial role in encouraging the Govt to take stronger action that affects the interest of industry.
As shows in the above diagram of private system of stimulation again in divided into in two types such as:
Industrial and entrepreneurship association
The association formed by an industrial group with the purpose of supporting and protecting the rights of industry and people associated with it.
Self help group
The voluntary association group formed by poor people with the purpose of mutual help is called a self help group.
Other Important Factors
There are some other factors those are also considered as stimulation of both of private and public enterprise some of the most important stimulation are:
The price policy is considered as a direct stimulation of entrepreneurship development through the frequent fluctuation price causes. In the instability of private investment where as effective price policy ensures growth development of both private & public entrepreneurship.
Stability wage levels
Another stimulation of private and public enterprise is stability of wage level.It means the stability of wage encourages better performance and also reduces the labour turnover by proper wages policy to satisfy both employers and workers.
Reduction of rate of interest
The reduction of rate of interest is also considered as another important stimulation of public and private entrepreneurs. Generally it has become that low rates of interest encourage private investment and encouragement to make investment activity.
The level of investment the private and public sector is also stimulation by Govt investment.There are so many useful investment social useful investment made the govt for various activities like:-
a. Construction dam
b. Low cost housing
c. Recreational housing
Generally this type of government spending assumes the nature of public spending incurred on the assumption that private investment is know longer capable of maintaining full employment.
The last but not the least stimulation of private and public entrepreneurs is tax concessions. Generally it is allowed on company profit in order to stimulate investment period of depriciation.It also considered as less of Govt revenues which may be made by indirect taxation on commodities use in the nation.
Actor Of Entrepreneurship
For the sake of clarification some of the most important actor of Entrepreneurship are discussed below:
What is Self Help Group?
The small voluntary association of weaker section people for the purpose of solving their common problems through self health and mutual health is called self help group.Generally it is denoted as SHG that promotes small saving among members.
What is Sustainability?
The property of the biological system to remain diverse and productive is definitely called sustainability.Generally it includes long life and healthy wheat ,land and forest.
Requirement Of Sustainability
The primary importance of sustainability of entrepreneurship is social sustainability. Generally it is concerned with contributing equal importance to the society and sharing profit equality.It also aims at changing the financial resources of a group and ensuring the movement of organisation towards formal organisation structure.
Business life cycle theory
The other most important requirement of sustainability entrepreneurship is the study of business life cycle theory.It means clear ideas in different stages of development requiring different forms of organisation and competency.It also provides different growth models under different situations that helps in smooth running of business.
The sustainability of entrepreneurship also requires financial sustainability which is based on yearly assessment, average income and expenditure.Such calculation enables an enterprise to arrange funds for the replacement of standardised equipment. It is also required to develop the relationship of entrepreneurs with financial institutions.
Corporate social responsibility
The last but not the least requirement of sustainability of entrepreneurship is to know about corporate social responsibility. It aims at encouraging positive impact through its activities on the environment and ensures its activities are in compliance with law and ethical standards.
What is Marketing assistance?
The supporting element that helps in organising campaigns and developing marketing startergy is called marketing assistance.It enables marketing managers to execute various projects directed towards maximisation of company profit.
What is Angel Investors?
An investor who provides capital for a business start-up usually in exchange of convertible debt or ownership equity is called angel investors.
Function of angel investor
i. Invest in small start-up or entrepreneur.
ii. Provide one type investment for the development of business.
iii. Support to the companies for post investment.
iv. Take effective investment decisions during fund management.
v. Evaluating investment proposals and providing support to companies.
vi. Invest in high potential companies and ensure business growth.
vii.Develop the investment concept and rich certain milestones.
What is Private equity fund?
The collective investment scheme used for making investments in various equity and debt securities according to the investment strategy associated with private equity is called a private equity fund.
What is Business Incubators?
The unique and highly flexible combination of business development process, infrastructure helpful in service and growth of a business is called business incubators.
What is Venture capital?
The special type of private equity capital provided by firms to small or emerging firms is called venture capital.
What is Industrial accomodation?
The facilities provided by industries sector for travellers,vacationers and others under short term basis is called industrial accomodation. Generally it includes meals, recreational facilities etc.
What is Subsidy?
The single lump-sum of money which is given by the Government to various industries for national interest is called Subsidy. Generally it is indirectly provided to the general public of a nation.some examples of subsidy are transport Subsidy, Subsidy for power generation and Subsidy for quality standard etc.
What is District industrial sector?
The centre which is organised in order to administrative framework of various industries at the district level is called district industrial centre. It is denoted as DIC and stated in 1978 inorder to control the activities of various industries operating with the industries.