DEVLOPMENT OF HUMAN CAPITAL
A CRYING NEED OF THE HOUR
By S R Pal
It is, in fact, needless to emphasize on the role of small-scale sector,
in as much as this sector had been playing a vital role in many ways in
fulfilling our socio-economic object. There is, perhaps, no denial of the
fact that this sector has emerged as a powerful tool for not only even
dispersal of economic wealth and power ensuring more balanced growth, but
also for providing more employment opportunities per unit of capital investment.
This phenomenon would be clear if we go through some relevant statistics.
It is really encouraging to note that
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about 5000 products are being manufactured in the small scale sector meeting
directly the day-to-day needs of millions of our countrymen and also indirectly
by supplying goods and services to a large number of medium and large scale
industries.
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about 12 million persons are estimated to have been provided employment
by SIDO-units apart from about 6 lakhs of unregistered units.
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more than 30% of the country’s total export comes from small scale
sector and
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with only 6 to 7% of the fixed capital investment of all factories, small
scale sector provides about 40% of the total employment in the factory
sector.
And this is in brief, why the Governments, both at the Centre and the
State, have been attaching great emphasis for growth and development of
small-scale industries.
Now, so far as setting up and successful running of an industrial unit
is concerned, we find through our experience that there are two factors
acting on this account, one external factor what we may describe as the
worldly situation, i.e. the required infrastructure for growth of a particular
industry including availability of raw materials, appropriate technology,
finance, market etc. which may again be termed as physical and financial
capital and the other one is the internal factor i.e. the human-resource
factor. In fact, this human capital factor appears to be the most strategic
requirement, in absence of which, even in abundance of natural and physical
resources, machinery and capital may go grossly underutilised or misused.
There is a growing realisation that a rapid rate of human-capital formation
is as important a pre-condition of economic growth as is the rapid rate
of physical and financial capital formation. Thus, particularly in the
developing countries like ours, one of the major tasks is to develop the
human capital, since when the external resources are limited more stress
has to be laid for developing the human capital for ensuring proper and
successful utilisation of the existing resources. This process of development
of human capital can be achieved through what we call EDP or Entrepreneurship
Development Programme. This programme also aims at development of the entrepreneurial
traits or characteristics through imparting proper training called Entrepreneurial
Motivation Training (EMT) apart from its curriculum for enriching the knowledge
level of the prospective entrepreneurs. It is, however, conceded that EMT
reinforced EDP is likely to yield better results, in as much as, the EMT
enhances the receptivity of the trainees concerned for internalisation
of whatever knowledge inputs are provided to them through class lectures/field
visits/video film-shows etc. Thus we see that the EDP has two mutually
dependent and mutually rewarding components in it-the motivation part and
knowledge input part.
Now, the psychological aspect of the entire programme aiming at development
of the mental traits appears to be no less important, particularly, when
we take a retrospect of this phenomenon. When we talk of growth of SSI
in this region we often hear the popular remark that the Bengalee youths,
particularly, belonging to middle class are more inclined to get a job
than to take the challenging task of setting up an industry. If we analyse
the situation we may find several reasons for this. One of the major factors
may be social recognition of the small-scale entrepreneurs. It is really
unfortunate that their social recognition is not to that extent what it
should be. In fact, recognition comes from correct appreciation, which
again comes from proper awareness. Perhaps due to lack of proper awareness,
the actual role of the entrepreneurs in the total nation-building process
is not being correctly appreciated, since we seldom think in terms of the
socio-economic services rendered by the small-scale entrepreneurs towards
the society. The social recognition will in turn create a social demand
for attracting our youths to opt for this challenging task. If we go on
further scanning of the existing situation leading to a general apathy
amongst our youths towards opting for this entrepreneurial career, we will
see that the entire system or process through which we grow-up in our homes
and schools etc., is by and large, not congenial for manifestation of the
entrepreneurial traits. The social environment, in general, be it of family
or educational institution to which we are subjected leaves little scope
of manifestation of the traits like innovativeness and creativity, leadership
or initiative taking capacity, risk-tasking ability and in fine self-confidence.
In fact, most of us from our very childhood have been allowed to do exactly
whatever we were asked to do. By this way we may become a good worker but
seldom a good entrepreneur.
Apart from the above, another factor, which stands in the way of choosing
this career, is that there are still some myths or misconcepts or confusion
prevailing in our society. For example, there is a common belief that entrepreneurs
are born and people belonging to some communities having business background
are generally believed to have in-born entrepreneurial qualities. Yes,
it is not denied that those who take birth in such communities are definitely
in advantageous position as they get the opportunity to be aware of the
business environment more than others, but empirical studies suggest that
emergence of entrepreneurs is independent of caste/religion. What is required
is to generate certain entrepreneurial characteristics, most of which are
psychological in nature and can be improved or influenced and thus manifested
through proper thinking process and by the way of life, in general. It
is generally conceded that the mental make up of a person can be changed
through proper practise to confirm to specific requirement. And EDP, in
particular, EMT, aims at giving this orientation which gradually enables
a person, if he starts and practises thinking and doing in a specified
direction, to gather the positive traits after gradual eradication of the
weaknesses and barriers like fear, idleness, lack of confidence, shyness
etc.
Some persons think that primary motivation of an entrepreneur is desire
for wealth. But, here also the empirical studies suggest that ‘money’ is
very rarely the primary driving force for the successful entrepreneurs.
In fact, it is the high need for achievement or the urge of doing something
of excellence, which acts as the primary driving force, money is not the
incentive but a measure of its success. Rather, it is people with low need
for achievement that requires money incentive to make them work harder.
However, in the primary stages an entrepreneur may be interested in money
rewards because of the feed back they give as to how well he is doing,
but in the long run it is anything but money which ultimately drives him
to rise to the top, in the event of which money automatically starts coming
in. Another popular belief is that a very high order of risk is involved
in establishing an enterprise, where fortune and chance also play a vital
role. The usual meaning of the term ‘risk’ does not seem to be applicable
in the context of entrepreneurial behaviour. Risk taking ability in case
of an entrepreneur indicates a ‘challenge’ in his activity where there
is reasonable chance of success. In fact, an entrepreneur’s strategy is
to reduce the risk by anticipating the barriers, trying to foresee the
problems and remaining open to the feedback, both positive and negative,
in other words an entrepreneur is willing to take calculated risk for a
venture that has reasonable chance of success. However, studies show that
successful entrepreneurs avoid high-risk situation, rather they seek and
take moderate risk.Some persons think that entrepreneurs are necessarily
amoral, as if they sacrifice morals for profit. Analysis of the characters
of the successful entrepreneurs suggests that entrepreneurs are generally
deeply committed to what they consider to be worthwhile purposes and their
need to achieve sometimes require flexibility with the rules, but not a
loss of integrity. In fact, the ‘ethics’ issue is delicate and controversial.
The entrepreneurs have their own standard of ethics. They tend to process
what we may refer to as ‘situational ethics’. The glaring example of this
concept of situational ethics is perhaps the teachings of Lord Sri Krishna
when we hear him to convince Arjuna as to why he should hold arms even
against Bhisma or Dronacharya. This concept of situational ethics is further
elucidaied when we go through the valued comments of Swami Vivekananda
while explaining the concept of ‘work without motive', at the 42nd meeting
of the Ramkrishna Mission held at Calcutta on 20.3.1898 and also his comments
on ‘Karma Yoga’. As he told, there cannot be any action, which is perfectly
pure, or any, which is perfectly impure taking purity or impurity in the
sense of injury or non-injury. The result of every work is mixed with good
and evil and thus we should engage in such work, which bring the highest
amount of good and smallest measure of evil. In the entrepreneurial world,
not to be confused with situational ethics, integrity and reliability are
no doubt a must for an aspiring entrepreneur not only for raising his capital
and debt financing but also his personal values has a profound effect on
development of the team and the business itself.If we sum-up, the fact
remains that without development of the human capital, the desired success
can not be achieved, for which, however, the social recognition of the
small scale entrepreneurs to the desired extent based on entrepreneurial
awareness of the society is also deemed essential. It would also help us
reaching the target if suitable orientation course is introduced at a certain
stage in the educational institutions. The course should be so designed
that it is conducive to manifestation/development of the entrepreneurial
traits from the very student hood. In this connection it would, perhaps,
not be irrelevant to mention that acquiring these so called entrepreneurial
traits will not only create successful entrepreneurs, but also future citizens
of our motherland having acquired all these qualities will surely prove
themselves worthy in whatever career of field they may be working in future.
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