Entrepreneurial development is a complex process of change. It has been recognized as an important ingredient of economic development. The development of entrepreneurial activity depends upon the closely interlinked economic, social, cultural, religious and psychological variables. Developing countries of late have adopted a deliberate policy of promoting and encouraging small enterprises as a strategy, for the overall development of their countries.
The larger scope and potential to achieve these goals lie in the development of the industrial sector of the national economy, and the only alternative to raise the level of living is development of industries. Here, we are not merely concerned with certain quantum of growth and development in the industrial field. Theoretically, the desired quantum of industrial development could be supported by a few large investments and capital intensive units run by a small number of big entrepreneurs. But what is envisaged is to have the same quantum of industrial development with a wider spread consisting of large number of small entrepreneurs all over the country. This would result in development of small scale and tiny sector industries all over the country and would generate employment opportunities to the educated unemployed, skilled people and other potential entrepreneurs from various segments of the society.
Scenario of Asian Countries
Most of the Asian countries like India and China are encouraging and promoting entrepreneurial development leading to industrial and economic development. India is now a hot spot for automobiles and its accessories. Being a cost-effective core market for auto components sourcing for global auto makers, the automotive sector is a potential sector for entrepreneurs.
Entrepreneurs are risk bearers, find resources and fill market gaps that would be missed by larger, more bureaucratic organizations. Entrepreneurs improve the social welfare of a country by harnessing dormant, previously overlooked talent. Surplus manpower which is considered a great liability can be converted into assets once those with potential are selectively groomed for self-employment and enterprise formation, leading to further job opportunities.