Emergence of Entrepreneurial Class in India

Introduction
Entrepreneurial class in India have existed since times

immemorial.
Ancient literature like Manusmriti provided a clear

idea about entrepreneurial class of people during ancient period.

Society was divided into four Varnas or Castes and people

belonging to the Vaishya caste were regarded as entrepreneurs .

For centuries , India was the hub of spice trade.

Emergence of Entrepreneurial Class in India

The Emergence of Entrepreneurial Class in India can be studied under two main time periods: I.

Entrepreneurship in Pre-Independence Era

II. Entrepreneurship in Post-Independence Era

Entrepreneurship in PreIndependence Era

Before 1850 there were some stray attempts of setting up

factories in India mostly by Europeans and they got success because of political privilege and control over money market. Indians was confined to Cottage Industries.

Manufacturing related entrepreneurial activities by The first Indian to think on entrepreneurial lines was

Ranchhodlal Chhotalal who in 1847 envisaged textile manufacturing on modern factory lines but failed in his first attempt.

 Manufacturing Entrepreneurship in India did not

develop till the 1850s.

With the introduction of Rail Transport in 1853 and

development of other infrastructural facilitates ,the scope for industrial entrepreneurship in India increased.
In eastern part of India , the entrepreneurs were mainly

Europeans who engaged in export-oriented industries but entrepreneurship in Western part of India was mostly among the Indians led by the Parsis , Marwaris , Jains and Sindhis. In South India , the Chettiars ,Kumatis and Syrian Christians led entrepreneurial efforts.

 The foundation of the Tata Group as a trading company in 1868 by Jamshedji Tata was a watershed

moment in entrepreneurial development in India.

S.L. Kirloskar established the Kirloshkar Group in

1888which is even today Indias largest manufacturer of pumps and valves.

Bombay Spinning and Weaving Company was the first cotton mill to be established in Bombay ,India in 1854 by C.N. Davar.

 Entrepreneurship in pre-Independence India received the

greatest boost with the launch of the Swadeshi movement in 1905.

The Tata Iron and Steel Company was established on

August 25, 1907, as part of the Tata Group with entire Swadeshi Capital.
V.O. Chidambaram Pillai established the Swadeshi Steam

Navigation Company in October 1906 at Tuticorn ,Tamil Nadu.

P.C. Roy established Bengal Chemical Works in Calcutta.

 The outbreak of the First World War in 1914 and the Second World War in 1939 created enormous

demand for factory goods in India and around the world. Imports from England and other foreign countries fell substantially. Besides, the government demand for war-purposes increased considerably.
This period spawned many enterprising entrepreneurs like G.D. Birla ,Jamnalal Bajaj ,etc.

Entrepreneurship in PostIndependence India

By 1947 ,when India gained independence , Indian Entrepreneurs had already gained dominance over industry in India. Indian entrepreneurs had already made their mark against their British competitors in India. After Independence, Indian adopted the mixed economic system under which the private and public sector were to co-exist.

Post-Independence , various measures were taken to promote entrepreneurship in the country ,particularly in small-scale industries ,like:
Establishment of Small Scale Industries Development Organization

in 1954.
Establishment of IFCI in 1948 and ICICI in 1954 for industrial finance. The National Science & Technology Entrepreneurship Development

Board (NSTEDB), established in 1982 by the Government of India under the Department of Science & Technology to help promote knowledge driven and technology intensive enterprises.
Establishment of Entrepreneurial Development Institute of India in

1983.

 Entrepreneurial Development remained arrested

by the rigors of the License-Permit Raj.

Liberalization of the economy in 1991 acted as a catalyst to Entrepreneurial Growth. Figures from the Ministry of Corporate Affairs show that from 1980 to 1991, the average number of companies formed each year was 14,379, while

from 1992 to 2006, the average number of companies formed per year was 33,835 ,an increase of 135%.

 Entrepreneurship had been traditionally concentrated in the

hands of a few communities. The rigid caste-based nature of Indian society was inherently hostile to occupational mobility and, by extension, to business and entrepreneurship. independence India has cut across religious , caste and regional lines pointing to increased occupational mobility. Gujarat who have made the transition from farming to diamond business in a single generation.

However ,the emergence of entrepreneurial class in post-

A shinning example of this is the Kanbi Patel community of

Many women entrepreneurs too have made their mark.

Some popular post-independence era entrepreneurs include N.R.

Narayana Murthy , Sunil Bharti Mittal , Dhirubhai Ambani, etc.

Conclusion
Entrepreneurial class of people have emerged and thrived

in India in spite of numerous challenges and difficulties faced by them. According to the Doing Business Report 2013 published by the World Bank ,India ranks a lowly 132 out of 185 countries in overall ease of doing business. The same survey states ranks India at 173 out of 185 nations as far as ease of starting a business is concerned. Another challenge is to ensure that there is more occupational mobility towards entrepreneurship especially from socially and financially disadvantage groups.

References
Books: Development of Entrepreneurship by G.S. Batra Websites: shodhganga.inflibnet.ac.in/
books.google.co.in

scribd.com
doingbusiness.org

Thank You