1.1 Introduction: The entrepreneurs of the small industry have a prominent role in a developing economy, as the success of these industrial enterprises depends largely upon the capabilities and the talents of the entrepreneurs and there by promotes the industrialization process. To make the small scale industry more dynamic in accelerating industrial development for facilitating larger employment generation and output expansion, there is an imperative need to promote the entrepreneurial talents as inadequate supply of entrepreneurs, constrains the process of rapid industrialization and that of sustaining the economic development. Industrialization has been considered as one of the strategies for accelerating the process of economic development particularly in the developing countries, and this in turn depends on the availability of a large number of innovative and dynamic entrepreneurs and it is necessary to promote the entrepreneurial base in the economy through expansion and diversification of the entrepreneurial talents since they generate employment opportunities and thereby reduce the regional imbalances and the concentration of economic power.

Study conducted at fifty small scale enterprises in Hyderabad and Secunderabad, two cities of Andhra Pradesh, India.

Economic development is the main priority for any country. Economic development means a process of upward change that is whereby the real per capita income of a country increases over a period of time. To accelerate the economic development we have to use the entrepreneurship as a tool. The most industrially developed countries like USA, Germany, and Japan are the evidence that an economy is an effect for which entrepreneurship is the cause. In fact, the entrepreneurs play an important role in contributing for the development of an economy of a nation. It is all the more in a developing world where there are ample opportunities for innovations to exploit the available resources and initiate entrepreneurial ventures. A country might remain backward not because of lack of resources or dearth of capital (as it is many times believed) but because of lack of entrepreneurial talents or talent existing in that society.

Dr.Malik has been actively associated with various academic bodies in the discipline of Public Administration. Dr. Malik has specialized in Rural Development and Personnel Administration.