Book Review

Dr. C. B. Gupta and Dr. N. P. Srinivasan (2010)
Entrepreneurial Development (Revised Edition 2010)
Sultan Chand & Sons, New Delhi
Price: Rs. 230/- Pages: 484

Henry Mintzberg's research brought out the fact that managers really fill in a series of ten roles, out of which one is the entrepreneurial role. Undoubtedly, entrepreneurs form a very important segment of the society; they provide jobs and are able to act as revenue earners for the nation thus helping in overall economic development. At this point of time our country also requires entrepreneurs and job providers. Entrepreneurial Development by Dr. C. B. Gupta and Dr. N. P. Srinivasan is indeed a handy book for would-be and budding entrepreneurs.

The book is effectively divided into five parts. Part I contains 5 chapters, Part II contains 5 chapters, Part III contains 4 chapters, Part IV contains 5 chapters and Part V contains twenty-five thought-provoking and interesting cases which may help in broadening the reader's thinking horizon. The book contains a wealth of information, which is linked in a coherent and logical manner and drawn from a number of sources.

The first chapter deals with the idea of entrepreneurial culture and entrepreneurial process. Some eye-opening inferences have been drawn after conducting a study in forty enterprises in two districts of Andhra Pradesh. For instance there are a certain religious communities which seem to have a deep-rooted affinity towards setting-up industries. Another study showed that nearly two-thirds of the entrepreneurs set up their own industries before attaining the age of 25 years. The chapter examines in great detail which religious communities are more interested in entrepreneurship. A perplexing question often haunting the reader could be “Are entrepreneurs different from others in their mental make-up or are they having certain specific characteristics or traits which others do not have?”. The second chapter answers this question. These traits have been examined again in the third chapter. In the second chapter entrepreneurial personality has been explored in great depth. The chapter also covers Joseph Schumpeter's, Walker, and Peter Drucker's views on entrepreneurship and brings out the differences between an innovator and an inventor. The chapter also brings out the differences between an intrapreneur and an entrepreneur.

McClelland (famous for his Needs Theory of Motivation) conducted an interesting experiment in Kakinada city of Andhra Pradesh. The Kakinada experiment is now regarded as an edifice for a number of experiments, studies and entrepreneurial activities being carried out in the developing cities of our nation. The fourth chapter explains the experiment and the findings.  One of the most important needs of an entrepreneur is a viable business idea.  The fifth chapter dwells on the sources of ideas and analysis of ideas.

The second part of the book takes up several important issues like meaning of Project, identifying and classifying projects, life-cycle of a project, elements of project formulation, preparation of a feasibility report, project appraisal format, the guidelines issued by the Planning Commission for industrial projects, Network Analysis techniques: Critical Path Method, Programme Evaluation and Review Technique, project appraisal methods, factory design and layout, steps for starting a small industry covering aspects such as obtaining statutory licenses, power connections, arranging finances, NEDA scheme, company registration besides explaining important concepts like Joint Stock Company, Partnership firms, Sole Proprietorship, Limited Liability Partnership Act 2008. Incorporation of a company can be a difficult proposition as it entails obtaining a unique Director;s Identification  Number (DIN), Digital Signature Certificates (DSC), getting a name approval, filling in various forms such as Form 1A, Form 18, Form 32, payment of incorporation fee, obtaining Permanent Account Number, Tax Deduction Account Number, approvals such as service tax registration, Importer Exporter Code, customs and excise registration. Justice has been done to all of these requirements in the second part.

In order to provide the much needed boost to the development of small-scale industries, the Government of India has taken laudable measures such as formulation small-scale industries policy and providing incentives and subsidies, tax holidays, seed capital assistance, Prime Minister's Employment Generation Scheme (PMEGP), Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Single Window Clearnace Concept. The knowledge of the aforementioned terms is imperative to survive in today's world. All these concepts have been covered in the thirteenth chapter.

The fourteenth chapter provides information pertaining to institutional set up for export assistance, liberalized exchange rate management system, special economic zones, foreign trade policy. Industrial Sickness may have several detrimental consequences such as financial loss, loss of employment, erosion of faith of the general public, industrial unrest, loss of public revenue, wastage of scarce resources. The seventeenth chapter explores the might-be causes of industrial sickness and the available remedies.

In order to provide the necessary information and impetus to individuals desirous of launching their own venture(s), the text also provides detailed information on District Industries Centres, the role of Science and Technology Entrepreneur Parks (STEP), Small Industries Development Organization (SIDO), National Small Industries Corporation Limited (NSIC), Small Industries Service Institutes (SISIs), National Alliance of Young Entrepreneurs (NAYE), Khadi and Village Industries Commission (KVIC), etc.

Nonetheless, entrepreneurship cannot be taught, it is innate. A person may be told how to play cricket but then does not imply that everyone who is told how to play cricket will certainly become a great cricket legend like Sachin Tendulkar. It goes without saying that the book covers entrepreneurship, but, then that is all. For becoming and entrepreneur there should be an inherent desire in a person.  The text can only serve as a guideline.

Ashutosh Kumar
Asia-Pacific Institute of Management, New Delhi