Entrepreneurial Mobility-

ENTREPRENEUAL

MOBILITY

Satya Prakash Rao(29) Narendra Kumar Mishra(20)

FLOW OF PRESENTATION

FACTORS INFLUENCING

MOBILITY

1.EDUCATION

Education enlarges one’s thinking and understanding horizons. It

enables one to comprehend conditions more easily and clearly and in a better manner. An educated person can also easily adjust with the changed

environment.

2. EXPERIENCE

An entrepreneur’s past experience in business and industry also increases his/her propensity to move. The reason is not difficult to seek. An

experienced entrepreneur better perceives the available opportunities, better analyses his/her strengths and weaknesses.

3. AVAILABILITY OF FACILITIES

Entrepreneurs tend to move from areas with no or less

facilities to the areas with more and better facilities.

Heavy concentration of industries in

okhla,ghaziabad and faridabad near Delhi represent such examples.

4. POLITICAL CONDITIONS

Entrepreneurial

mobility is influenced by the political factors as for example a well known enterprising Punjabi community lost almost everything during the partition and were compelled to move from Pakistan to India.

5. SIZE OF ENTERPRISE

Larger business houses are found more mobile than smaller ones.

Initially entrepreneurs try to consolidate

their business position at a place, scale the commanding heights in the area, attain the dominating position and thereafter try to successfully seize the business

OCCUPATIONAL

MOBILITY

Occupational mobility denotes movement or changes in occupation.

Occupational mobility takes place in two forms

:-1. Inter-generation occupational movement 2. Intra-generation occupational movement

Occupation of the

Entrepreneu rs Fathers.

Paternal Grandfathers’ Occupation Total Farming Profession Business and

Industry Farming 6 0 3 9 Profession 4 9 3 16 Business and Industry 5 4 16 25 Total 15 13 22 50

Intra Generation Occupational movement

Family Occupation of the Entrepreneurs

Total Landlord Profession Business and

Industry Landlord 0 0 1 1 Profession 4 1 14 19 Business and Industry 0 1 16 17 Entered Directly 1 2 10 13 Total 5 4 41 50

Location Mobility

Location Mobility

Movement and settlement have been an integral part of human history all over the world.

However it is observed that some

communities are more mobile than others.

For example, Marwaris, Punjabis, and Sindhis.

 The early theories of industrial

location carried out the analysis on a simple framework where the location and spatial diversification were simply determined by an adjustment between location and weight distance

characteristics of inputs and outputs.

 The reason is that the then industrial

structure was heavily dominated by the natural resource base and

consumer oriented industries.

 Consideration of the availability of natural

resources in the choice of industrial location has declined and the industries are likely to be established even in those areas with

poor natural endowment.

 This holds specially true in the case of

industries which are not heavily biased in favour of raw material source for their

location.

 It is not always possible to explain the

entrepreneurial mobility to a particular location independently with the help of any one factor. infact several

considerations influence an

entrepreneur to move to a particular area/location to establish his industry.

As a matter of fact, all entrepreneurs are not mobile. Only a handful of entrepreneurs are mobile.

The degree of the entrepreneurial mobility depends upon different factors :

 Availability of raw material  Infrastructure and labour  Nearness to market

 Experience

 knowledge and information

 socio-political situation

 Also with expansion in enterprise size

and increase in their resources,

experience, information flows, etc, the entrepreneurs are more mobile from local to metropolitan places.

 This trend goes on. When the

entrepreneurs become, in due course of time, highly resourceful, greater

degree of mobility occurs even cutting across the national boundaries.

Entrepreneurs most important

consideration for selecting the location of industries:

considerations Entrepreneurs (in%)

Home land 52 Government incentives 8 Availability of raw material 2 Availability of labour 4 Availability of Market 10 Availability of Infrastructural facilities 20 Others 4 Total 100 18

TATA Nano

TATA nano project

 Initial project: Rs 1,500 crore. Rose to over Rs 2,000 crore due to project delays.

Initial Nano production capacity: 2.5 lakh per annum. Expandable to 3.5 lakh per annum within 2 years.

 TATA has developed the Nano plant, based on

two crucial concepts in manufacturing — the Japanese “just-in-time” concept and the

internationally-accepted “milk-run” concept  Both these concepts underline that suppliers

should remain attached to the mother plant, to keep the price of the final product under control.

 “The location of the vendor park next to the

plant, therefore, is essential for ‘just-in-time’ inventory management, which in turn is one of the key factors why the Nano can be so

affordably priced.

 The ‘milk-run’ theory operates within the

‘just-in-time’ concept. According to this theory, carrier vehicles will come to the adjacent vendor park from the mother plant in the shortest possible time, pick up the required components for Nano and then scamper off to the mother plant.

 _{Incidentally, each Nano will require some}

3,000 components. “It has been decided that initially 40% of the Nano parts will be supplied from the vendor park. And from April 1, 2009, when the vendor park becomes fully

operational, 100% of Nano parts will be procured from there,”

 No of total vendor is 55 now and half of them is

set their plant and ready to work.

Few of them are

 Sona Koyo Steering Systems'

---CMD Surinder Kapur. Rico Auto

MD Arvind Kapur, whose company has

supplied engine head block to the People's Car.

Rane Group, setting up a dedicated facility to supply steering gears

chairman L Ganesh.

Cont…

 Lumax Group

CMD DK Jain

Nirmal Minda of NK Minda Group, which supplied electric switches for the car

Thank you