The concept of entrepreneurship has assumed great importance in both research and action for accelerating economic growth in the developing countries during the past two or three decades.

Attempts are being made to inculcate the spirit of entrepreneurship among those who are likely to turn into manufacturers or are already so and to facilitate the activisation of entrepreneurship through support systems such as capital assistance, technical know-how, marketing of goods, management and many other infrastructural facilities.

This applies specially to small manufacturing units where it is hoped that it will increase employment opportunities, minimize inter–sectoral and inter-regional imbalance, leading to more equitable distribution of income among people of varied social strata.

The authors have chosen the Punjab and U.P. for their study and have explored inter-industry and inter-state patterns of entrepreneurial growth and have highlighted the major problems of small industries in regard to capital formation, technical know-how, raw materials, marketing, quality control vis-à-vis the role of government agencies and programmes.

Apart from its applied significance, the study makes significant contribution in theory and methodology as it critically evaluates the efficacy of various prominent theories in guiding action programmes for the development of entrepreneurship and suggests a contingent model for analyzing entrepreneurship.

The study is equally useful to scholars, entrepreneurs and administrators.