This Book Provides A Holistic View About The Small-Scale Entrepreneur And The Problem Of Bankruptcy.

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.

Entrepreneurship is the most important instrument of social and economic development. It is because of this reason it is remarked that developing countries are not underdeveloped but undermanaged. It is true of Japan. About a century ago Japan was considered as an underdeveloped country. Thanks to the rapid progress made by Management science, now Japan is regarded as one of the most advanced countries of the world. Increasing production and productivity is the need of the hour. These are dependent upon physical factors or natural resources of a country and its human resource. However, the resources capable of enlargement can only be human resource. All other resources stand under the laws of mechanics. They can be better utilised or worse utilised but they can never have an output greater than the sum of the inputs. Man alone of all the resources available to man, can grow and develop if properly directed and motivated. In line with this thinking, there has been a revolutionary change in management philosophy. He (man) is potentially creative, trustworthy and co-operative. He is also considered to possess the potential for growth, achievement and constructive action with others. It is the job of the management to nurture and tap employee’s productive drives. Entrepreneurship, therefore, hold the key to the economic development of a nation. It is because of this reason the U.G.C.’s Unified Syllabus has included the study of business management subject in almost every course in business and management disciplines, be it B. Com., M. Com., B.B.A. or M.B.A., C.A.C.S., C.W.A. and so on. The author has tried to explain the subject in the most simple language. Extensive use of charts, pictures and diagrams has been made to explain and illustrate the difficult concepts and Fundamentals of Entrepreneurship. Important questions asked in the examinations conducted by various universities and professional institutes have been given at the end of each chapter. The authors sincerely believe that the book will be of immense use and help the students preparing for these examinations.

Revised version of papers presented at the Workshop on Comparative Study on the Small and Medium Scale Industry in India and Japan, held at Tokyo during 8-9 March 1996.

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