Department of Business Administration
Thrust Area of the Department
Entrepreneurship Development :
Mission : "To develop entrepreneurial orientation and provide institutional support to budding , entrepreneurs amongst the students"
In the wake of economic liberalization during the 1990s, significant number of institutions of higher learning have also been promoted by the private sector. Today we have, in order to make optimal use of facilities, expertise and know-how available in these institutions for the benefit of the society, it is necessary that appropriate links are established between them and the industry. In addition, young technocrats are also looking out for opportunities to exploit their full potential by setting up their own ventures thus becoming "job generators" rather than "job seekers". This necessitates systematic interventions and new instruments which could facilitate the development and growth of new ventures by management and techno-educators.
In this context, some of the mechanisms which have become popular the world over include Science Parks, Technology Parks, Technology Business Incubators, Schools of Small Business Development, Innovation Centres, Entrepreneurship Development Cells (EDCs) etc.
Thus, it is necessary to develop mechanisms so that academic institutions could focus their attention on entrepreneurship & self-employment in addition to their present mandate of churning out trained manpower. Adequate infrastructure is available at most of the academic institutions for promoting Entrepreneurship. What is required is to fill the gaps in the form of trained faculty and focused programmes to inculcate entrepreneurial spirit amongst the Business Management graduates. Many MBA students choose Entrepreneurship as their final year elective and focus of pursuing entrepreneurship as a career option by choice, rather than merely assuming supervisory/managerial positions in various enterprises. Thus, they would be able to participate directly in the economic development of the country. Hence the need to promote Entrepreneurship among Science, Technology and Management students.
There is almost consensus that recent financial crisis triggered from the sub-prime market and spread to entire financial system. Among the cause of the crisis two factors: leverage and financial innovations are considered to be kingpin of the crisis. Kenneth Rogoff and Carmen Reinhart after analyzing data spanning over centuries state that " if there is one common theme to the vast range of crises., it is the excessive debt accumulation, whether by government, banks, corporations or consumers" The world still has not yet come out of the crisis. The Euro zone crisis is threatening to wreck the world financial system. Fixing the world financial system has assumed never before importance.
Islamic Finance based on the principles of justice and equity offer an alternative. Islamic finance disapproves debt financing and its trading and promotes equity finance. It rules out speculative and derivative instruments behind complex financial products. It promotes risk sharing not risk shifting. It disapproves making Money from money and casino economics. . It forges an inalienable link between financial sector and real sector. In short, it is a value- based financial system, having the potential to make the world a safer place to live in.
The Islamic financial industry commands significance presence. According to Information released by council for Islamic Banks and Financial Institutions (CIBAFI), the industry includes 284 Islamic Financial Institutions which operate in thirty eight countries and manage US$178.5 billion. This excludes conventional banks? Islamic window operations, which are estimated to be USD$ 200 billion. In order to meet the demand for human resources trained in Islamic Finance, institutions offering courses in Islamic Finance have proliferated.
India has the second largest Muslim population in the world. The religious sanction against interest prevents chunk of the Muslim population to stay out of ambit of financial system. That is why Raghuram Rajan committee had suggested introduction of Islamic Banking operations in India for financial inclusion of Muslims. RBI had set up a committee to look into the possibility of Islamic banking in India. The committee was of the view that it would require changes in the banking act. As of now no Islamic Bank is in operation but Islamic Finance has taken off. There are many Shariah Compliant financial products that are available in India (See appendix II).Realizing the need to have a barometer of performance of Shariah compliant investments, BSE, in collaboration with TASIS has launched TASIS Shariah 50 Index in 2010. These developments auger well for of Islamic Finance in India.