Apparel Industry Case Study

OPPORTUNITIES AND CHALLENGES FOR ENTREPRENEURSHIP FOR MAKE IN INDIA: TEXTILES AND GARMENTS INDUSTRY

INTRODUCTION

The Indian textiles and garments industry has flourished from as early as the Indus Valley civilization. All the rulers and society used locally produced clothes and were contended. The arrival of British and their method of exporting the raw materials and bringing back the finished products, lack of organized structure in this industry, research and use of machinery pegged back the Indian garment industry. As a result the Indian Textile and apparel Industry was unorganized industry even till a few years back, however the scenario started changing after the economic liberalization of Indian economy in 1991. This initiative of opening

Definitions

b. Opportunities for entrepreneurship in Textiles and Apparel industry.

c. Challenges for entrepreneurship in Textiles and Apparel industry.

Definitions

Though there are many words as applicable to this industry that need to be understood, lets examine the meaning of entrepreneur and entrepreneurship

a. Entrepreneur.

i. An entrepreneur is defined as “person in effective control of commercial undertaking; one who undertakes a business or an enterprise” ii. Entrepreneur is an innovative person who maximizes his profits by following new strategies or venturing into new products or services.

b. Entrepreneurship. The term “entrepreneurship” comes from the French verb “entreprendre” and the German word “unternehmen”, both means to “undertake”. Bygrave and Hofer in1891 defined the entrepreneurial process as „involving all the functions, activities, and actions associated with perceiving of opportunities and creation of organizations to pursue them‟. In simple, entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". It is the “process of the entrepreneur” by which he creates value through recognition of business opportunity. It is also a communicative and management function to mobilize

It can either make a business or break it. Under-capitalization and Over-capitalization are very harmful to the business. Managing the finance of his business is a big challenge for an Indian Entrepreneur. He must manage both Fixed and Working capital properly. He must borrow money from the right source. He must manage his Cash Flow properly. He must invest his excess funds correctly. He must create sufficient Reserves and surpluses. He must provide enough depreciation for his fixed assets, so that he can replace them when they become old and outdated. He must provide for repairs and maintenance of machines. He must also take steps to provide for but avoid bad