Grass Root Entrepreneurship:Fuelling Growth

&Role of Training Institutions in Promoting SRB

For:

International Workshop on

Entrepreneurship in Socially Responsible Business for Development in Asia and the Pacific Region

By:

Dr. Manoj Mishra

Entrepreneurship Development Institute of India

Ahmedabad

Spectrum & Connect of Grass Root Entrepreneurs with SRB

Grass Root Entrepreneur

Grass Root Enterprise

Socially Responsible

Business

Community Based

Community Based but

sourcing more widely, applying ethical principles to transactions

Multi Million Dollar

conglomerate with ethos and

principles in place

Grey Areas desiring Strategic Actions Grey Areas desiring Strategic Actions

Taxonomy of Grass Root Entrepreneurship

Charity with grant

Social Purpose/ Benefit Grass Root Enterprise

Business Generating Profits for Charitable Spend

Commercial Business

SRB

Grass Root Enterprises target environmental and social needs runs as businesses with profits being directly reinvested back into communities or business in contrast to shareholders.

Premise

• Engagement between the formal and informal sectors - Recognize, Respect and Reward creative entrepreneurs;

• Grassroots Entrepreneurs typically employ an enormous amount of social and ethical capital and their innovations often reinforce the renewability of natural capital;

• Exhibits primarily five social dimension indicators: - Founded by group with skills, innovative ideas, builds on traditional

knowledge;

- Capital ownership in not primarily constituent of power;

- Inclusive and participatory in nature;

- Incorporates relevant communities;

- Profits narrowly distributed and focus is to benefit the community

Fundamental

Technology

Breakthroughs

New Products, Features, or Processes

R & D

Resource

Investments

Increased

Sales and

Profits

Knowledge Economy Commercial Economy

Framework - innovation ecosystem

GRASS ROOT

ENTREPRENEURS

Industry, Investors and

Government Investment

Commercialization Development DemonstrationIdea Based on

Skill,

Knowledge

Re

sou

rces

CommercializingInnovation

Investors

Industry

Grass Root

Entrepreneurs

Academic

Level of Enterprise Development

Government

Innovation Spectrum Ecosystem – Actors, Entities & Intangibles

VALLEY OF

ECOSYSTEM

Role of Training Institutes for Sustainable SRB at Grass Roots

Operational Framework for Group Entrepreneurship

COMMON FACILITIES

INPUT PURCHASE

SAVING & CREDIT

Individual

Production Units

SUPPORT SERVICES

QUALITY CONTROL

OUTPUT DISPOSAL

(85%)To each member of a prorate basis according to their contribution in output

(5%)For Reinvestment in the common facilities

(5%)For Exigencies and Insurance

(5%)Community Welfare (health, education, etc)

DISTRIBUTION OF PROFITS

Gen. management

Technical Services

Design Services

Counseling Services

Marketing Management

NECESSARY CONDITIONS: WHAT NEEDS TO MAKE APPROACH WORK ?

• The Group: Democratic & Homogenous

• Members should have Stake

• Based on Lead Sector Approach

• Capitalize Existing Skills

• Market Driven Product

• Ensure Markets

• Scope for Design & Technology Up-gradation

M A R K E T S

P R OD U C T S

P ro d u c ts to M a rk e t

… .b y u p g ra d in g s u p p ly c a p a c it ie s a n d s ta n d a rd s in fra s tru c tu re s

C o n n e c t to th e

M a rk e t

D e v e lo pC o m p e tit iv e

M a n u fa c tu r in gC a p a b ility

P ro v e C o n fo rm ity w ith

M a rk e t R e q u ire m e n ts

C o m p e te C o n fo rm C o n n e c t

C o n n e c t to th e

M a rk e t

D e v e lo pC o m p e tit iv e

M a n u fa c tu r in gC a p a b ility

P ro v e C o n fo rm ity w ith

M a rk e t R e q u ire m e n ts

C o m p e te C o n fo rm C o n n e c t

Value Chain Integration

GRASS ROOT ENTREPRENEURSHIP

CLUSTER MODEL

INTERNATIONAL ENVIRONMENT

Backwardlinkages

Firm Firm

FirmFirm Firm

Firm

Production System comprising of Grass Root Entrepreneurs Forward

linkages

Selling Agents

Direct Consumers

Raw MaterialSuppliers

Machinery Suppliers

Commercial Service Providers(Designer, Testing Laboratory, Transporter, Financier, Import Agents etc.)

(Public & Private) Support and Service Institution

POLICY ENVIRONMENT

Firm

Efforts in making……

• Cambodia, Laos, Vietnam – India Entrepreneurship Development Centre: Entrepreneurship Appreciation workshop; EDP for New enterprise Creation; Performance Improvement and Growth Programme for existing entrepreneurs; Training of Entrepreneurship Development Trainers; Management Development programme for Industry Associations; Computer application in Small Business;

• Cluster Development Programmes culminating into Producer organizations built around informal sector and value chain integration with Markets: Several locations within India;

• Women Centric Value Chain Development;

Thanks

Your Comments / Suggestions Please