The evolutionary process of entrepreneurship activities may be divided into different stages.
Hunting stage
Pastoral stage
Agricultural stage
Handicraft stage
Present industrial stage.
Today machinery is being imported from other countries to run the industries. Other materials such as food grains, cloth, carpets, shawls, shoes, bangles, etc. are exported from India to different international markets, where goods are exchanged at reasonable and competitive prices.
Entrepreneurship is a process of economic development which involves the utilization of physical resources of a nation by its human resources so that the productive potential of that country is realized. Land, labour and capital are the three factors of production and these have no economic importance unless and until they are organized for production. The entrepreneur’s function is to
combine the productive factors
Bring them together carrying out new combination of productive factors.
This is called an ‘Enterprise’ which is the fundamental phenomenon of economic development. ‘Entrepreneur’ – is an individual who carries out the function of coordinating and controlling the factors. Entrepreneurship development process To set up an enterprise and run it successfully, an entrepreneur needs three types of assistance and these groups of assistance form an Entrepreneurship development cycle.
Stimulatory The stimulatory activities comprise entrepreneurial education, provision of entrepreneurial opportunities and guidance in selecting industries that are needed to help emergence of entrepreneurship in the society. This support ensures a good supply of entrepreneurs to start a new venture and develop potentiality to succeed in a venture.
Support The support activities refer to those which enable the entrepreneurs in setting up and running the enterprises successfully. They help in mobilizing resources and assistance.
Sustaining The sustaining activities include the efforts which help the entrepreneurs sustain themselves against the challenges of actual operation. Many enterprises start well but meet immature death because of some problems, especially small enterprises.
These groups of activities play complementary roles to each other. In the absence of one or in case of negligence, others may be rendered dysfunctional. If the stimulatory activities are overemphasized, there may be failure and frustration. This causes national wastage of resources in terms of men and materials. Similarly, if support activities are overemphasized and the other two are neglected, then there may be facilities available but few or none of the entrepreneurs avail such facilities. When sustaining activities are overemphasized, growth in the number of enterprises is bound to be stagnant.
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