PROJECT REPORT ON REASONS FOR UPSURGE IN THE NUMBER OF ENTREPRENEURS IN INDIA IN RECENT YEARS

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A) GENERAL

BBA VI SEMESTER (B) (M) BATCH 2010-2013

SUBMITTED TO: MS. NEHA GUPTA ASSISTANT PROFESSOR

SUBMITTED BY: SRISHTI MEHRA 12714101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI
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TABLE OF CONTENTS

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ACKNOWLEDGEMENT

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CERTIFICATE OF COMPLETION STUDENT’S DECLARATION

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EXECUTIVE SUMMARY

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CHAPTER-1 INTRODUCTION HISTORICAL BACKGROUND RECENT TRENDS IN THE INDUSTRY

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CHAPTER-2 OBJECTIVES

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CHAPTER-3 RESEARCH METHODOLOGY

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CHAPTER-4 ANALYSIS

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CHAPTER-5 RECOMMENDATIONS AND LIMITATIONS

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CHAPTER-6 CONCLUSION

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CHAPTER-7 REFERENCES

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ACKNOWLEDGMENT

I take this opportunity to express my profound gratitude and deep regards to my guide Ms. Neha Gupta for her exemplary guidance, monitoring and constant encouragement throughout the course of this thesis. The blessing, help and guidance given by her time to time shall carry me a long way in the journey of life on which I am about to embark. I also take this opportunity to express a deep sense of gratitude to my college, HOD (Ms. Rashmi Bhatia), my class coordinator (Dr. Ruchi Singhal), and all other faculties for their cordial support, valuable information and guidance, which helped me in completing this task through various stages. Lastly, I thank almighty, my parents, brother, sisters and friends and atlas but not the least for the constant encouragement and blessings without which this project would not be possible.

SRISHTI MEHRA

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has completed her project on the topic “REASONS FOR UPSURGE IN THE NUMBER OF ENTREPRENEURS IN INDIA IN RECENT YEARS” under my guidance. Neha Gupta Assistant Professor 4 . Her work is appreciable.CERTIFICATE OF COMPLETION This is to certify that Srishti Mehra. pursuing BBA 6thsem (B) (M) from JIMS KALKAJI. Project Guide: Ms.

STUDENT’S DECLARATION I hereby declare that the project report titled – “REASONS FOR UPSURGE IN THE NUMBER OF ENTREPRENEURS IN INDIA IN RECENT YEARS“ is my own work and has been carried out under the table guidance of Ms. Neha Gupta (Assistant Professor at JIMS Kalkaji).com) Date:-13/03/2013 Place-Delhi 5 . Thank You (Srishti Mehra) BBA 6thSem (B)(M) Jagannath International Management School (KALKAJI) (srishti19mehra@gmail. All care has been taken to keep this project error free and I sincerely regret for any unintended discrepancies that might have crept into this report.

Participating in a new business creation is a common activity among U. The most obvious form of entrepreneurship is that of starting new businesses (referred as startup company). "by the time they reach their retirement years. one in four may have engaged in self-employment for six or more years. however. half of all working men in the United States probably have a period of self-employment of one or more years.EXECUTIVE SUMMARY ENTREPRENEURSHIP 'Entrepreneurship' is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things. in recent years. finance and business acumen in an effort to transform innovations into economic goods. when large entities spin-off organizations According to Paul Reynolds.1983)" 6 . This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity." And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. workers over the course of their careers. the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing.S. entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson. entrepreneurship scholar and creator of the Global Entrepreneurship Monitor. "As well.

Ten years back. Take Sunil Mittal. Reddy. Nagesh. whose phone company now has the sixth-highest value. Kishore. In almost every new industry that has attained stature in the last decade. What about the country‘s leading airports? The carpetbaggers here are again first generation names like G. Naresh Goyal‘s Jet Aiways. But. 7 . In the sunrise retailing sector the big boys.V.K. has emerged as the largest airline in the country. barely in fifteen years. Sahara. Today. Having interesting histories in banking. are creating a furore. a man-on-the-go.M. power and hoteliering. Mittal would not have figured even in the B list of Indian businessmen. Kishore Biyani and B. this is merely a factoid.ENTREPRENEURS IN INDIA: There is a galore of Indian entrepreneurs in the Forbes‘ list of the world‘s wealthiest every year. Pantaloon and Shoppers‘ Stop are the Indian challengers -inwaiting for Wal-Mart as they have already swept the likes of Tata (Trent) and RPG off the floor in the retail business. the rising star is not from the established business houses but an upstart. a totally unknown name a decade ago is now a media darling. he is ahead not only of patricians like Tatas but also of a global major like HutchisonWhampoa. upstaging the State-owned Indian Airlines.S. and buying up a private sector rival. both are now into the big league after outdoing airport bids against celebrities with household surnames. more significant is the rise of new entrepreneurs in India. Rao and G.

UPSURGE IN THE NUMBER OF ENTREPRENEURS:
Entrepreneurs Now Numbering Near 400 Million In 54 Countries, According To GEM 2011 Global Report 19-Jan-2012 (San Francisco, CA) January 19, 2012 - The Global Entrepreneurship Monitor (GEM) 2011 Global Report finds an upsurge in entrepreneurship around the world – entrepreneurs are now numbering near 400 million in 54 countries -- with millions of new hires and job creation expectations in the coming years. The 13th annual survey of early-stage entrepreneurship worldwide, launched today at the Global Entrepreneurship Monitor 2012 Annual Meeting in San Francisco, is the largest single study of its kind. The GEM Global Report is authored by Professor Donna Kelley, Babson College, Professor Slavica Singer, J.J. Strossmayer University in Croatia, and Dr. Professor Mike Herrington, Executive Director of the Global Entrepreneurship Monitor and Director of the Centre for Innovation and

Entrepreneurship at the University of Cape Town, South Africa. ―Thanks to an uptick in entrepreneurship worldwide, we now have nearly 400 million entrepreneurs starting and running businesses in the 54 econ omies surveyed,‖ said the report‘s lead author, Donna Kelley, Associate Professor of Entrepreneurship at Babson. ―Even better news is that over 140 million of these entrepreneurs expect to add at least five new jobs over the next five years. These figures and growth projections affirm that entrepreneurial activity is flourishing across the globe and that entrepreneurship, as an economic engine, is the best hope for reviving a weakened world economy,‖ she said.

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Among the report‘s key findings: Entrepreneurial Phases: From Early-stage to Discontinuance • Total early-stage activity (TEA) increased significantly from 2010-2011 in many economies and across all levels of economic development -- emerging, developing, and mature. In fact, TEA rose 25 percent among 16 developing economies with China, Argentina and Chile boasting above-average rates in 2010 and even higher rates in 2011. • Twenty mature economies experienced, on average, a nearly 22 percent TEA increase over both years. United States and Australia showed substantial increases in 2011 from already high TEA rates in 2010. • Intent to start businesses is highest in emerging economies (those in early-stage development). People in these economies are most likely to see opportunities and believe in their ability to start a business. They also hold entrepreneurship in high regard. Expectations to start a business are also high in some middle-stage developing economies like China, Chile, and Brazil. These measures tend to fall, however, as countries rise in economic development. Russia and the United Arab Emirates have the lowest entrepreneurial intention rates across the sample.

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CHAPTER-1

INTRODUCTION

ENTREPRENEUR The term entrepreneur is a loanword from French, and is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so. The term was first defined by the Irish-French economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. The term first appeared in the French Dictionary "Dictionnaire Universel de Commerce" of Jacques des Bruslons published in 1723. Over time, scholars have defined the term in different ways. Here are some prominent definitions.

1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.

1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.

1961: David McClelland: An entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker.

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 1964: Peter Drucker: An entrepreneur searches for change. Gartner: Entrepreneur is a person who started a new business where there was none before.B. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say in his Treatise on Political Economy. management qualities of an entrepreneur.  1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others.  1975: Howard Stevenson: Entrepreneurship is "the pursuit of opportunity without regard to resources currently controlled. INFLUENCES AND CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOR Management skill and strong team building abilities are often perceived as essential leadership attributes for successful ability.  1975: Albert Shapero: Entrepreneurs take initiative. 11 . Are very important in developing economies.  1985: W. Robert and team-building as B. essential Reich considers leadership. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. Pinchot: Intrapreneur is an entrepreneur within an already established organization. responds to it and exploits opportunities."  1983: G. accept risk of failure and have an internal locus of control. entrepreneurs.

A growing body of work shows that entrepreneurial behavior is dependent on social and economic factors. it doesn‘t seem that crazy.‖ 12 . although the opportunity that is recognised depends on the type of entrepreneur. In researching the likelihood of becoming an entrepreneur based upon working with former entrepreneurs. ―When you meet others who have gone out on their own. why can‘t I?‖ attitude. Shane and Venkataraman (2000) argue that the entrepreneur is solely concerned with opportunity recognition and exploitation. Research studies that explore the characteristics and personality traits of. Empirical studies suggest that male entrepreneurs possess strong negotiating skills and consensus-forming abilities. As Sørensen stated. entrepreneurial behaviours are also dynamic and influenced by environmental factors. countries with healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity-driven rather than necessity-driven women entrepreneurs. For example. Most.Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. Sørensen discovered a correlation between working with former entrepreneurs and how often these individuals become entrepreneurs themselves. and influences on. while Ucbasaran et al. Although certain entrepreneurial traits are required. the entrepreneur have come to differing conclusions.[5] The social composition of the workplace can influence entrepreneurism in workplace peers by proving a possibility for success. however. (2001) argue there are many different types contingent upon environmental and personal circumstances. Jesper Sørensen has argued that some of the most significant influences on an individual's decision to become an entrepreneur are workplace peers and the social composition of the workplace. compared to those who did not work with entrepreneurs. agree on certain consistent entrepreneurial traits and environmental influences. causing a ―He can do it.

3. are characteristic qualities of entrepreneurs. Innovative entrepreneur: Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganize the enterprise. 13 . CLASSIFICATION OF ENTREPRENEURS A. introducing new technologies. 2. For example.PERCEPTION OF ENTREPRENEURS The ability of entrepreneurs to innovate is thought to relate to innate traits such as extroversion and a proclivity for risk-taking. increasing efficiency and productivity. they copy technology or technique of others. Imitative or adoptive entrepreneur: Such entrepreneurs don‘t innovate. 2009). or generating new products or services. the capabilities of innovating. it is widely maintained that entrepreneurs are unusual individuals. it has been argued that entrepreneurs are not that distinctive.[6] Largely due to the influence of Schumpeter's heroic conceptions of entrepreneurs. 2001). there are also critical perspectives that attribute these research attitudes to oversimplified methodological and/or philosophical assumptions (Gartner. Fabian entrepreneur: Such entrepreneur display grates situation and scepticism in experimenting with any change in their enterprise. Based on functional characteristics 1. Entrepreneurs are catalysts for economic change. According to Schumpeter. and researchers argue that entrepreneurs are highly creative individuals with a tendency to imagine new solutions by finding opportunities for profit or reward. In line with this view. They change only when there is a serious threat to the very existence of the enterprise. there is an emerging research tradition investigating the genetic factors that are perceived to make entrepreneurs so distinctive (Nicolaou and Shane. 2011). However. but that it is in essence unrealistic preconceptions about "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs" (Ramoglou.

5. BASED ON DEVELOPMENT ANGLE 1. 4. The improver: They have unwavering to run these businesses with high integrity and ethics. Drone entrepreneurs: Such entrepreneurs are characterised by a diehard conservatism and may even be prepared to suffer the losses. Minor innovator: This entrepreneur contributes to economic progress by finding better use for existing resources. Service BASED ON PERSONALITY TRAITS 1. Local trading: such entrepreneur limits his enterprise to the local market. The superstar: All depends upon the charisma and on the high energy of the superstar CEO. 2. Wholesaling 3. Retailing 4.4. C. Manager: such an entrepreneur doesn‘t initiate expansion and its content in just staying in business. Prime mover: This entrepreneur sets in motion a powerful sequence of development expansion and diversification of business. 3. BASED ON ENTREPRENEURS BUSINESS 1. 3. Manufacturing 2. Satellite: This entrepreneur assumes a suppliers role and slowly move towards a productive enterprise. B. 2. 14 . The advisor: ―Customer is right and we must do everything to please him‖ because company is built by advisors and advisors become customer focused.

8. but also engage fairly differently in new firm creation. If feedback is constructive i. THEORY-BASED TYPOLOGIES Recent advances in entrepreneur researcher indicate that the differences in entrepreneurs and the heterogeneity in their behaviors and actions can be traced back to their the founder's identity.e. positive than also lets go with negative self-image. 7. The artists: Are highly creative type. energy and optimism. 15 . 6. They have ―A get it done attitude in a playful manner‖. they have uncanny abilities to survive and persists inner calm.4. These types of founders not only diverge in fundamental ways in terms of their self-views and their social motivations in entrepreneurship. For instance. The visionary: Too focused on dreams with little focused on reality. Communitarians and Missionaries. The healer: They provide nurturing harmony to their business. The hero: Have an incredible will and ability to lead the world and your business through challenges. Fauchart and Gruber (2011) have recently utilized social identity theory to illustrate that entrepreneurs can be distinguished in three main types: Darwinians. 5. very conscious about business. The fireball: A business owned and operated by a fireball is full of life.

half of all working men in the United States probably have a period of self-employment of one or more years. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing.ENTREPRENEURSHIP 'Entrepreneurship' is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things.1983)" Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. 16 . "As well. entrepreneurship scholar and creator of the Global Entrepreneurship Monitor. however. the term has been extended to include social and political forms of entrepreneurial activity. when large entities spin-off organizations According to Paul Reynolds. "by the time they reach their retirement years. in recent years. workers over the course of their careers. The most obvious form of entrepreneurship is that of starting new businesses (referred as startup company). Angel investors generally seek annualized returns of 20-30% and more.S. Participating in a new business creation is a common activity among U. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. as well as extensive involvement in the business. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson. one in four may have engaged in self-employment for six or more years. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity." And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. finance and business acumen in an effort to transform innovations into economic goods.

that is. or knowledge entrepreneurship have CHARACTERISTICS OF AN ENTREPRENEUR Entrepreneurs have many of the same character traits as leaders.tough. & Dunkelberg . however trait-based theories of entrepreneurship are increasingly being called into question. These types are not related to the personality but to the type of opportunity the entrepreneur faces. in the form of social entrepreneurship.prone to overconfidence and over generalizations.mercurial. the calculating inventor. a vast literature studying the entrepreneurial personality argues that certain traits seem to be associated with entrepreneurs:  Bird . Woo. science parks. opportunistic. Such person-centric models of entrepreneurship have shown to be of questionable validity. creative. They seldom are willing to submit to authority. Cole .found there are four types of entrepreneur: the innovator. political emerged.  Cooper. pragmatic people driven by needs of independence and achievement. and the organization builder. brainstorms. In more recent times. prone to insights. the over-optimistic promoter.g. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. and some NGOs.  Collins and Moore .argue that entrepreneurs exhibit extreme optimism in their decision-making processes.   Busenitz and Barney . 17 . they are cunning.Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies. Still. and unsentimental. the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset(see also entrepreneurial mindset) resulting in entrepreneurial initiatives e. ingeniousness and resourcefulness. not least as many real-life entrepreneurs operate in teams rather than as single individuals. business incubators. deceptions. entrepreneurship. similar to the early great man theories of leadership.

It reduces unemployment and poverty and it is a pathway to prosper. a worldwide celebration and promotion of youth entrepreneurship. to be nomadic and to learn endlessly. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. it is the policy goal of many governments to develop a culture of entrepreneurial thinking. John Howkins . PROMOTION Given entrepreneurship's potential to support economic growth. organising. opportunities and assuming. Thus it is a risk of business enterprise. He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data. An example of the latter is the United Kingdom's Enterprise Week. It is hope and dreams of millions of individuals around the world. It is a creative and innovative skill and adapting response to environment. Entrepreneurship is the process of exploring the opportunities in the market place and arranging resources required to exploit these opportunities for long term gain. which started in 2008. legislating to encourage risk-taking. It is the process of planning. and national campaigns.focused specifically on creative entrepreneurship.  David McClelland . This can be done in a number of ways: by integrating entrepreneurship into education systems. Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week. It promotes capital formation and creates wealth in country. CONCEPT It has assumed super importance for accelerating economic growth both in developed and developing countries. 18 .primarily motivated by an overwhelming need for achievement and strong urge to build.

Bootstrapping can be defined as ―a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors‖.FINANCIAL BOOTSTRAPPING Financial bootstrapping is a term used to cover different methods for avoiding using the financial resources of external investors. There are different types of bootstrapping:         Owner financing Sweat equity Minimization of the accounts payable Joint utilization Delaying payment Minimizing inventory Subsidy finance Personal Debt 19 . but a wide variety of methods are available for entrepreneurs. While bootstrapping involves a risk for the founders. the absence of any other stakeholder gives the founders more freedom to develop the company. Many successful companies including Dell Computers and Facebook were founded this way.[12] The use of private credit card debt is the most known form of bootstrapping.

It is often a complicated enterprise so consequently numerous enterprises find loads of difficulties in survival. The process was like the franchise business. The funding of these firms is now easily done by government agencies. According to Hisrich. as neither did they own the enterprise nor did they finance. which heads his personality to a brighter side. Peter and Shepherd revealed that first entrepreneur definition took Marco Polo as an example of an upcoming entrepreneur who made the greatest attempt of establishing the trade routes.HISTORICAL BACKGROUND Entrepreneurship is the carrying out of a fresh organization or restructuring an organization.75% basis to get his ventures financed. provided by the government was known as an entrepreneur. etc. Entrepreneurship firms are now getting enough funds to establish themselves but earlier it was not so. Peter and Shepherd. Entrepreneurship has various forms such as sole trading. The strategy he followed was that he made a contract with a good and dependable venture capitalist on a 25% . These firms faced a number of difficulties in establishing themselves. and many more traits. 20 . foresightedness. patience. but with the aid of economic funds usually. which has already been into existence. In other words their work was clerical in nature. it was the well known author and economist Cantillon. who in his theory regarded entrepreneur as a risk taker. Now let us peep into the history of entrepreneurship and the scenario which was prevalent then to understand it better. and NGOs. any person running huge production projects without any kind of threat. In the 17th century itself. such as good communication skills. whether the firm goes in profit or loss the fixed percentage of the government was compulsory to pay. This is an entirely different field involving unique personality traits on the part of the entrepreneur. The risk factor was attached to the entrepreneurs in the 17th century as the government financed the activities and made it a fixed source of its revenue. This was it! From here entrepreneurship got its origin. partnership. science parks. Hirsch.

This was the period of Thomas Edison's financial crunch. and assumes the risk of a business or an enterprise". the people will not have to wait for double coincident of wants. This is what made producers realize that if they have surplus. In the year 2005 Hisrich. plans and administers the venture. arranges infrastructure. throw in his own inventiveness. systematize. which had geared up in the globe. he made clear cut distinctions amidst entrepreneur and capital provider. "An entrepreneur is one who organizes. There was not much difference in entrepreneurs and managers. Peter and Shepherd regarded entrepreneur as an organizer who controls. Now in the late 20th century according to Merriam-Webster's online dictionary. 21 . As we moved ahead to the late19th and 20th century the entire global scenario changed.) Nigerian history of entrepreneurship: Entrepreneurship originated in Nigeria when the production exceeded the consumption levels. 1. Now the exchange of products and services was done freely in the Nigerian market. both were often regarded as the same. manages. Hisrich. purchases raw materials. He did this distinction due to the outcome of industrialization. He wanted to add on to technological advancements but could not do so because of financial constraints. Now as we know all about the history of entrepreneurship as a whole let us switch over to the origin of the same in the various economies. Peter and Shepherd regarded him as an entrepreneur and not as finance provider (venture capitalist). which resulted in barter system or double coincidence of wants.By the 18th century three of them evolved an entirely new theory in which. expertise. Later he got a way out by generating capital from private sources to finance his experiments in the fields of chemistry and electricity as well. Lately. A venture capitalist was supposed to be a person who is the 'Manager' of capital and along with it he also needs to bear the risk factor of business and lately share a high rate of return. total commercialization of the act was done.

which would enhance liberty and strength of the city. A number of SSI sprouted up in late 1960s and 1970s. Finally.E. Now India is taking part in global entrepreneurship as well.Canada (A. the economic reforms were introduced in 1990.) in 1986 was Ian Aitken.U. in 1980 India was able to liberalize imports and began with small and medium scale entrepreneurs. Here an intensive movement was initialized for further promotion of entrepreneurship. whose main objective was development of student entrepreneurs.A.A.C. Soon after that the upcoming entrepreneurs got support from the government as well. It was a kind of disillusion for the budding Indian entrepreneurs and now in the 2000 the entrepreneurial scenario has undergone a vast change.E.E.U.E) Canadian association of student entrepreneurs in 1987. 22 .S.S.S. which also included the college campuses as well. The points are mentioned below: a) The positive aspect of entrepreneurial activities for autonomy was realized.) was changed to (C. Again the name was changed in 1988 and finally it was the association of collegiate entrepreneurs. as the entire economy was changing from an agro based economy to an industrialized economy.-Canada). social. b) The only bet before entering into entrepreneurial activities was that the people practicing it shall keep within the ethical.A. (C. A slow pace of development was reflected in the late 1950s and early 1960s. Further. 4) Entrepreneurship in Greece: The pillars of ancient Greece history of entrepreneurship are based on few points give by the great historian Peter Connolly." 3) History of entrepreneurship in India: Several entrepreneurial phases in India have passed since independence.2) Evolution of Canadian history of student entrepreneurs: The founder of Canadian association of university student entrepreneurs (C. Now twenty years from the origin the association is known as "advancing Canadian entrepreneurs Inc. as well as the moral margins.

Our list of the trends we've got our eyes on will help anchor your business.those that can weather the economy's fits and starts. a better financial climate and a surge of homegrown innovation mean the U. 1. manufacturing startup universe is experiencing a renaissance.) Data The Rise of Big Data Cutting-edge entrepreneurs are stepping up to crunch the vast (and ever-growing) stockpile of information too large for companies to store and analyze in-house.S.a sign of our shifting demographics -.RECENT TRENDS OF THE INDUSTRY We love a good story and a quick cash infusion.to helping workers who are locking the door on traditional office setups. 23 .) Manufacturing Domestic Production Makes a Comeback Factors like more affordable labor.and look at it as a heads-up on evolving ways to manage your current business. From cooking up goodies that satisfy America's growing taste for all things spicy -. 2. present or future. we're far bigger fans of businesses built on a solid foundation -. Now. Consider this a jumping-off point as you envision new products and services -. these trends are built to last (at least for a while). but when it comes down to it. to your future. that address the wants and needs of America's increasingly diverse population. in reality. higher shipping costs. that can embrace what's trendy but don't crash when kids move on to the next big thing.

or being phased out altogether. 4. 6.3.) Food Hot Sauce Goes Mainstream Move over ketchup. 24 .S.) Beauty Beauty Seekers Favor 'Cosmeceuticals' Consumers take a shine to advanced personal-care products. Hot sauce is now one of the 10 fastest-growing industries in the U. 5.) Management Managers Who Understand the Importance of Goofing Off CEOs get the message about the value of fun in the workplace and its contribution to the bottom line.) Office Space The Workspace of the Future The office is getting a new look -.

) Beverage Energy-Drink Market Gets a Boost From Young Consumers Energy-enhancing products have grown into a multibillion-dollar industry fueled by young consumers. wellness and medication management leading the charge.) Health Healthcare Goes Digital The digital health-technology market will be worth $5. 8. 25 . 9.7.) Customer Service Using Transparency to Build Consumer Trust Weary consumers have had enough of false promises and conflicting marketing claims and are simply seeking brands they can trust. with chronic care.7 billion by 2015.

) Lending Creative Financing Grows in Popularity Traditional business lending is still faltering.) Vending Unique Vending Machines Drive Stagnant Industry Forward Recent innovations like touchscreen technology. but more people are starting businesses. which means borrowers and lenders are getting creative. 26 .10. electronic-payment options and unique products could give the vending machines industry a boost. 11.

CHAPTER-2 OBJECTIVES - What we mean by the term UPSERG - What we mean by the term ENTREPRENEURS - What is the role the Entrepreneurs play in the country - What can be the reasons for Upsurge in the number of Entrepreneurs in India in recent years 27 .

1 RESEACH DESIGN: It is framework or blueprint for conducting the market research project. It specifies the details of procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. refine & evaluate marketing action. generate. 28 .CHAPTER-3 RESEARCH METHODOLOGY INTRODUCTION TO RM Marketing research is the function which likes the consumers. It has following steps: I: PROBLEM DEFINITION II: DEVELOPMENT OF AN APPROACH TO THE PROBLEM III: RESEARCH DESIGN FORMULATION IV: FIELDWORK OR DATA COLLECTION V: DATA PREPARATION AND ANALYSIS VI: REPORT PREPRATION AND PRESENTATION 2. customers & public to the marketer through information which is used to identify & define marketing opportunities & problems. monitor marketing performances & improve understanding of marketing as a process.

This study has done well while attempting to arrive at a more clear description of an apparent problem. Hypothesis is tentative answer to the question that serves as guide for most of the research projects It seeks to discover new relationships. The major emphasis is on the discovery of ideas & insight.  CONCLUSIVE RESEARCH: Conclusive research provides information that helps the executive so that he can make a rational decision. 29 . All marketing research projects start with it.  ELEMENT: Object that possess the information sought by the researcher and about which inferences are to be made. 2.2 TARGET POPULATION: The collection of elements or object that possess the information sought by the researcher and about which inference are to be made Target population should be defined in term of Element and Sampling unit. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory.Research design broadly classified into two parts : Exploratory Research Conclusive Research  EXPLORATORY RESEARCH: Exploratory research looks for hypothesis in well-established fields of study.

30 . Through this study we will find out the factors of awareness for upsurge in the number of entrepreneurs in India in recent years.  SCOPE OF STUDY: The scope of the study will be useful in future.random sampling techniques in which I have choose convenience sampling technique because it is least expensive and least time consuming of all sampling techniques.4 SAMPLING TECHNIQUES: Sampling Techniques are of two types: Non probability (non random) Probability sampling (random sampling) The sampling technique used in this research is Non . what are entrepreneurs and what are the roles of entrepreneurs in the recent India. Convenience sample: It is also known as "accidental" sample or "man-in-the-street" samples. Through this study we can know what is upserg.3 SAMPLE SIZE: Sample size refers to the number of elements to be used in a study. 2. Hence by implementing all the above we can analyze the reasons for upsurge in the number of entrepreneurs in India in recent years. 2. SAMPLING UNIT: The basic unit containing the elements of the population to be sampled .

2. The data collection tools need to be strong enough to support what the evaluations find during research. It involve: Postal mail Electronic mail Telephone Web-based surveys In-person observations when there is face to face contact with the participants. Secondary participation: Secondary participation require no direct contact to Data collection tools used in personal contact observations are used ather information.6 DATA COLLECTION METHOD: The data collection process can be relatively simple depending on the type of data collection tools required and used during the research. and external evaluations. self-evaluations. Here are a few examples of data collection tools used within three main categories. Some examples of this type of data collection tool would include: In-person surveys – used to gain general answers to basic questions Direct or participatory observations – where the researcher is directly involved with the study group Interviews – used to gain more in depth answers to complex questions Focus groups – where certain sample groups are asked their opinion about a certain subject or theory. Data collection tools are instruments used to collect information for performance assessments. 31 .

Some examples of this type of data collection tool would include: Expert opinions – leaders in the field of study Case studies – previous findings of other researchers Literature searches – research articles and papers I have used case studies. previous year reports and newspapers for preparing the project report. 32 . referred books and internet sites. Case Studies And Content Analysis: Case studies and content analysis are data collection tools which are based upon preexisting research or a search of recorded information which may be useful to the researcher in gaining the required information which fills in the blanks not found with the other two types during the data collection process.

S. Take Sunil Mittal. Naresh Goyal‘s Jet Aiways. the rising star is not from the established business houses but an upstart. are creating a furore. more significant is the rise of new entrepreneurs in India. Kishore. In the sunrise retailing sector the big boys. has emerged as the largest airline in the country. Nagesh. Pantaloon and Shoppers‘ Stop are the Indian challengers -inwaiting for Wal-Mart as they have already swept the likes of Tata (Trent) and RPG off the floor in the retail business. Mittal would not have figured even in the B list of Indian businessmen. and buying up a private sector rival. this is merely a factoid. a totally unknown name a decade ago is now a media darling. Kishore Biyani and B. Ten years back. he is ahead not only of patricians like Tatas but also of a global major like HutchisonWhampoa. a man-on-the-go. Today. barely in fifteen years.CHAPTER-4 ANALYSIS ENTREPRENEURSHIP IN INDIA: RISE OF ENTREPRENEURS IN INDIA: There is a galore of Indian entrepreneurs in the Forbes‘ list of the world‘s wealthiest every year. In almost every new industry that has attained stature in the last decade. whose phone company now has the sixth-highest value. upstaging the State-owned Indian Airlines. But. Sahara. 33 .

another pioneer. the challenger. Within a few years he has outperformed the oldest media house in the country. 34 . Capital can be organized and technology accessed. Laxmi Mittal had to flee his homeland to become the world‘s steel sultan. Indian entrepreneurs had to leave India in order to prove their spirit of enterprise. Reddy. belong to Narayana Murthy. Azim Premji and Shiv Nadar. Aditya Birla wandered all over South-East Asia setting up companies and factories. what with the bureaucracy‘s red tape and greasy palms. power and hoteliering. Returning from the US. we must mention Subhash Chandra.V. India is now a vast and vibrant market. The most extraordinary stories of meteoric rise in the annals of entrepreneurship. Kiran Mazumdar Shaw. How about Jignesh Shah. yet the Indian entrepreneur is proving his mettle. an engineer–turned-telecom tycoon is truly an adventurer. Uday Kotak has founded a bank that promises to be yet another ICICI. The list is getting longer daily. however. Doing business in India is no cakewalk. He is another first-generation business entrepreneur involved in a David-Goliath duel with country‘s biggest financial players for market leadership in commodity exchange.M. Rao and G. both are now into the big league after outdoing airport bids against celebrities with household surnames. Only a few decades back. he got into a telecom business.What about the country‘s leading airports? The carpetbaggers here are again first generation names like G. Rajeev Chandrashekhar. They have surpassed their counterparts in advanced countries in software development and helped India emerge as the leading Software power. Forbes list is no longer an Everest for Indian entrepreneurs. Having interesting histories in banking. Among the electronic media enterprisers Prannoy Roy and Raghav Behl are India‘s news kings. De-regulation is creating new opportunities. In the same breath. the amusement parks owner and a pioneer of satellite TV in India. has made impressive forays into biotech industry.K. sold it out and is now entering into freight transport —as the railways are privatising the container business.

Besides the exceptional first-timer Indira Nooyi. the Mukesh Ambani-owned Reliance Industries. A 2006 study by Mape. According to a Boston Consulting Group (BCG) report. Many head the human resource wings and are tough and tactful while dealing with the hard-core politicos and burly men dominating the restive trade unions. chief strategists. Arcelor. many banks. These deals hail the emergence of global Indian entrepreneurs on the world stage. may soon be among the top 10 in the world list. is no transient phenomenon but is becoming a normal face of Indian business. Biocon chief. Tata is now one of the world‘s lowest-cost steel producers. access to cash. not to be left behind. India is fast becoming a hub for metals. auto components and oil and gas‖. petro-products and auto components. Tata. America. Liberal policies. India‘s second largest private firm.Indian business is also fanning out and challenging the global multinationals. to become the fifth largest producer. L. Russia. or Anu Agha. other continents with their global mega-mergers and hostile takeovers. and the axis of corporate power was shifting towards the the BRIC (Brazil. ―a revolution in global business is under way‖. Kiran Shaw Majumdar. 35 . India and China) countries. gobbled up another major steel manufacturer. Indians are shaking Europe. observed: ―the Indian Multinational Company (MNC) has finally come of age‖ and ―Indian buyers have become a force to reckon with in many industries such as pharma. an investment bank. For instance. chief economists. Corus. and the rise of entrepreneurial ambitions are creating conditions for the emergence of global Indian enterprises. insurance companies and business enterprises now have women in key positions — chief executives. the Pepsico chief. Mittal—based in London but holding an Indian passport—grabbed the world‘s largest steel-maker.N. who took over Thermax after her husband‘s sudden death.

Higher education and new confidence are helping daughters and daughters-in-law of traditional families take up high-profile corporate roles. Priya and Priti Paul of Apeejay Surrendra Group.D. entrepreneurship is no more limited to family-managed businesses in India‖. quick to grasp the nitty-gritty of work and more willing to listen to elders. women entrepreneurs represent a group that has broken away from the beaten track and are exploring new avenues of economic participation. Women are better students. Dhamija in his book Women Entrepreneurs says: ―The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in society… Today. She is rated as one of the most successful Indian women CEOs. he said while addressing a Convocation of the Entrepreneurship Institute of India. and wife of Venu Srinivasan of the TVS Group. Sivasailam. Cremica is a popular biscuit and confectionery brand where Geeta Bector is both director and wife of Akshay Bector. Shashi Ruia describes his Essar Group as ―serial entrepreneurs‖ and predicts the rise of new entrepreneurs. chairman of the Rs 25 billion Amalgamations Group. Sulajja Firodia Motwani manages her Kinetic Group as well as family.. She joined the family enterprise on returning from Carnegie Mellon University. among the world‘s largest two-wheeler makers. met the challenge after their father got killed in a terrorist attack in India‘s turbulent northeast. Mallika Srinivasan of Chennai-based Tractor and Farm Equipment is the eldest daughter of A. S.K. M.. She thinks women have a special advantage when it comes to food. ―There has not been a better time in India to reach out and touch the horizon . where the family has a tea business. 36 .‖ It is estimated that women entrepreneurs currently comprise about 10 per cent of the total number of entrepreneurs in India. Shefali Munjal is a third generation member of the Munjal family who manages Hero Group.

2012 . launched today at the Global Entrepreneurship Monitor 2012 Annual Meeting in San Francisco. The GEM Global Report is authored by Professor Donna Kelley. According To GEM 2011 Global Report 19-Jan-2012 (San Francisco. is the best hope for reviving a weakened world economy. Strossmayer University in Croatia. South Africa. Babson College. ―Even better news is that over 140 million of these entrepreneurs expect to ad d at least five new jobs over the next five years.J.‖ she said. we now have nearly 400 mil lion entrepreneurs starting and running businesses in the 54 economies surveyed. and Dr. Professor Mike Herrington. Donna Kelley. CA) January 19. These figures and growth projections affirm that entrepreneurial activity is flourishing across the globe and that entrepreneurship. Executive Director of the Global Entrepreneurship Monitor and Director of the Centre for Innovation and Entrepreneurship at the University of Cape Town.The Global Entrepreneurship Monitor (GEM) 2011 Global Report finds an upsurge in entrepreneurship around the world – entrepreneurs are now numbering near 400 million in 54 countries -. ―Thanks to an uptick in entrepreneurship worldwide. is the largest single study of its kind. 37 . J. The 13th annual survey of early-stage entrepreneurship worldwide.with millions of new hires and job creation expectations in the coming years. as an economic engine. Professor Slavica Singer. NUMBER OF ENTREPRENEURS IN INDIA: Entrepreneurs Now Numbering Near 400 Million In 54 Countries.‖ said the report‘s lead author. Associate Professor of Entrepreneurship at Babson.

United States and Australia showed substantial increases in 2011 from already high TEA rates in 2010. Argentina and Chile boasting above-average rates in 2010 and even higher rates in 2011. Entrepreneurs in mature economies were more likely than those in the other stages to end their ventures on a positive note ? retirement. as countries rise in economic development. sale. • Intent to start businesses is highest in emerging economies (those in early-stage development). developing. • Twenty mature economies experienced. usually lack of profitability or funding. and mature. on average. They also hold entrepreneurship in high regard. TEA rose 25 percent among 16 developing economies with China. and Brazil. In fact. or the pursuit of new opportunities.Among the report‘s key findings: Entrepreneurial Phases: From Early-stage to Discontinuance • Total early-stage activity (TEA) increased significantly from 2010-2011 in many economies and across all levels of economic development -. Expectations to start a business are also high in some middle-stage developing economies like China. Chile. a nearly 2 2 percent TEA increase over both years. • More than 50 percent of entrepreneurs in emerging economie s who discontinued their businesses did so because of negative influences. 38 .emerging. People in these economies are most likely to see opportunities and believe in their ability to start a business. however. Russia and the United Arab Emirates have the lowest entrepreneurial intention rates across the sample. These measures tend to fall.

• Early-stage entrepreneurs are most often young to middle-age (25-44 years).Profile of Entrepreneurs and their Businesses GEM interviewed more than 140. • An evaluation of the job creation impact of entrepreneurs on their economies shows that although there are fewer entrepreneurs in mature economies. Switzerland. In Switzerland and Japan. GEM estimates that. Thailand. The remaining economies show lower female participation. older entrepreneurs (44-54 years) are the most frequent participants in entrepreneurship. 39 . though in many developing economies. A simple number count of entrepreneurs does not tell the whole story. on the other hand. some as low as a 1:10 ratio (Pakistan). Compared with entrepreneurs in the emerging economies. four times as many entrepreneurs from the mature economies are involved in more knowledge-intensive. Guatemala. they are more likely to have high growth projections. business services sector. Venezuela. and Singapore ? have equal participation by men and women in entrepreneurship. there is a tendency toward younger entrepreneurs. of the entrepreneurs engaged in starting and running new businesses in 2011: o 163 million early-stage entrepreneurs are women o 165 million early-stage entrepreneurs are young entrepreneurs (age 18 to 25) o 69 million early-stage entrepreneurs are offering innovative products and services o 18 million early-stage entrepreneurs are selling 25 percent of their products and services internationally • Only eight out of 54 economies ? Panama. Jamaica.000 adults in 54 economies across diverse geographies and a range of economic levels. Brazil. • Consumer-oriented businesses and manufacturing dominate entrepreneurship in the emerging and developing stages.

• Among the developing economies. and Poland have high percentages of entrepreneurs with innovative products and services. internal market dynamics.from education and national policy to internal markets and infrastructure systems that will contribute to a healthy environment for entrepreneurship. South Africa.‖ Entrepreneurial Employee Activity Entrepreneurial employees .‖ said coauthor Slavica Singer.those who create and develop new business ideas for their organizations . finance and national policy EFCs rank highly in innovation economies but low in emerging economies. Entrepreneurial Frameworks GEM interviewed country experts about the kinds of Entrepreneurship Framework Conditions (EFCs) . 40 . despite a low TEA rate. They develop or launch new goods or services. Chile. fewer entrepreneurs from emerging economies offer their products and services in the international marketplace. has high innovation rates. In the mature stages it is Denmark that. or set up new business units that constitute a new establishment or subsidiary for their main employer. Countries such as Brazil. the proportion of entrepreneurs with innovative products and services increases with economic development level. Government programs. ―Not surprising.are more likely found in mature economies. Argentina. we find discrepancies between EFCs in different economies. and Russia with large populations and large geographic areas have lower rates of internationalization. China. Peru. R&D transfer. ―Education. On average. • Internationalization also increases with economic development. and cultural and social norms about entrepreneurship received high marks in emerging economies.

will also encourage entrepreneurial development. Belgium.‖ adds Singer.Surprisingly. but the accomplishments of many people who pursue their ambitions in a supportive cultural and institutional environment. societies must consider that entrepreneurship is not the heroic act of a few individuals.as well as in those with high TEA rates .Denmark.‖ Policy Implications GEM researchers offer several guidelines for policy makers. Governments ensuring that political interests do not supersede economic concerns are also more likely to create conditions in which entrepreneurs can grow and prosper. and franchises.‖ ―To create energy for making positive changes. and the Netherlands. ―Policy recommendations that improve the flexibility of labor.. ―Cultures that reward hard work and creativity. Australia. 41 . and Sweden . ―Entrepreneurs are not just involved in start-ups. among others. and academics to help them build entrepreneurial eco-systems that enable entrepreneurship to thrive in every world economy. communications and market openness while eliminating bureaucracy and red-tape will contribute to a more entrepreneurially-focused business environment.U. rather than political connections. ―Entrepreneurs of all kinds are found throughout the economies of the world – in established companies and organizations.‖ said Kelley. non-profits.‖ said report coauthor Mike Herrington. entrepreneurial employees are found in mature economies with low TEA rates . family businesses. This is particularly important and relevant in many developing economies. entrepreneurs.S.

industry bodies. and offered mentoring sessions where groups of budding entrepreneurs interacted with IBMers and discussed and brainstormed possible business ideas. such as business thinking. and thecorporate world is coming together to smoothen the way for them. It is easy to point out the hindering factors that an entrepreneur faces in India. The willingness to take risks. The good news for entrepreneurs in India is that the government. There are also groups andforums geared towards providing the networking. and strategic assistance that an entrepreneur may need. the Indian planning commission has found that 10 to 15 million new jobs need to be created – per year – for the next 10 years to ensure that our population is gainfully employed. is not so common. UPSURGE IN THE NUMBER OF ENTREPRENEURS: Gallup recently announced that India lagged behind other Asian countries in terms of promoting entrepreneurship. both in terms of encouraging more to explore this option. as well as identifying ways to make the journey smoother for the entrepreneur. mentoring. it turns out that more than 60 per cent of the Indian population possesses the essential traits to be an entrepreneur. What we would like to focus on are ways to actually catalyse entrepreneurship in our country. optimism and persistence. but this risk-taking subset of the population would actually consider these as challenges and identify their own ways to overcome them. IBM‘s Smart Camp too is a platform for entrepreneurs to showcase their innovation and business ideas that are in line with IBM‘s Smarter Planet initiative. On the very interesting flip side and in the same study. IBM itself has worked closely with the National Entrepreneurship Network in the past. On the other hand. A viable option the commission highlights is to encourage entrepreneurship. however. 42 . which it also sees as a source of innovation and solutions for varied socio-economic issues facing the nation.

This is not an entrepreneur-led movement though – it calls for intense cooperation between the government. This is not an entrepreneur-led movement though – it calls for intense cooperation between the government. more competitive and organic business environment. silently sinks to the ocean bottom where it becomes the wellspring of a complex new microcosm of seabed flora and fauna that can thrive for well over half a century. and the entrepreneurs themselves. I am a big believer of the symbiotic necessity of large companies and entrepreneurial ventures living side by side: You simply cannot have a flourishing entrepreneurship ecosystem without large companies to cultivate it. corporates. the 30-100 ton body — or "whale fall" — slowly. 43 . and by extension. There are many ways that live "corporate whales" can cultivate entrepreneurship ecosystems — as investors with capital for ventures to grow. as customers who buy innovative products.All of this points towards a positive future for the budding entrepreneur. The first – and most important – order of business would be to create open lines of communication for guidance and mentoring for the entrepreneur. or as marketing partners to give the small dynamic firms global reach. and the entrepreneurs themselves. WHEN BIG COMPANIES FALL. corporates. for the nation itself – in terms of new jobs. groups. groups. These new ecosystems with their hundreds of species from flesh-eating sharks to sulphur-metabolizing worms also include "innovative start-ups" — previously undiscovered new sea animals that have naturally selected to flourish in the unique ecosystem. ENTREPRENEURSHIP RISES When a whale dies. socio-economic innovations. and a more competitive and organic business environment. intentionally or otherwise. so that the best ideas are incubated and nurtured for success.

In August 1987.000 high-quality jobs. under severe United States pressure. But it is no coincidence that Israel's entrepreneurship skyrocketed in the late 80s and early 90s just after the Lavi was grounded. KitchenerWaterloo's "Quantum Hub" is now being fed by its turbulent ups and downs. for example. We don't have far to look for current examples: Today Finland is witnessing an upsurge in entrepreneurship now in part because corporate giant Nokia is in the midst of shedding 10.500 to over twice that many. Colorado. Whereas superficial accounts of the rise of entrepreneurship in societies selectively glorify government interventions. and intentionally supporting the more talented. the Israel government abruptly and controversially cancelled the Lavi fighter development project that was to be Israel's answer to the F-16 and the societal equivalent of NASA's moon program. Estimates of jobs eventually lost from the closure of the multi-billion dollar project range from 1. the "Nokia Bridge Program" is a socially minded strategy for both easing the pain of layoffs. Less glitzy than start-up glam perhaps. and Denmark has been "corporate fall" — the death or shrinkage of large corporate incumbents whose detritus feeds the entrepreneurship culture. 44 . Initially fueled by RIM's success. dark secrets of the flourishing of entrepreneurship in parts of the world as diverse as Israel. As it happens. with thousands of highly trained people flooding the small region. few tell the story of death. A similar drama is taking place in aptly-named Waterloo Canada as RIM's BlackBerry smartphones have become overripe. India.But one of the deep. but the reality in this case is that it took the death of a once-promising project to generate the life of many new ventures. Many of the thousands of highly qualified engineers either started companies or joined growing start-ups — it did not take too many talented people with experience in developing advanced technology products to turbocharge Israel's entrepreneurial revolution.

and some started their own software companies. as did Necton Bylinnium. IBM — in those days the first-choice mainframe supplier to governments. that vibrant entrepreneurship ecosystem. enterprises." Another IBM story. service." Ditto for Boulder's Storage Technology (which went bankrupt). and armies — operated freely in India.000 alone at Lehman Brothers). Until 1977. different setting: Boulder. Colorado. "In the Boulder area. and engineering. primarily in and around New York City. turbulent past: Waves of downsizings of IBM in the past three decades (as recently as 2010) in the small Boulder community have been highly correlated with the burgeoning of this vaunted start-up community. "IBM May Not Stay but IBM Talent is Here to Stay. "Corporate fall" is an important component of "entrepreneurship rise" (one component of many. What happens to entrepreneurship ecosystems when corporations fall? The reality is. Lo and behold! New York City is undergoing an entrepreneurial revolution. As some have observed. New York's Bloomberg or Boston's Menino). IBM's management said. they almost always adapt and grow in creative and novel ways.In India in the late 1970s. there was a similar story. it has always been considered a premier training ground for computer sales. When the government passed a law requiring foreign companies to transfer 60% ownership to local shareholders. Whatever quips we might have heard about IBM's corporate bureaucracy. In 2008. The result? Thousands of IBM-trained Indian executives helped to feed the emergence of a number of young BPO services providers." and unceremoniously closed shop. financial services firms. As one local computer services start-up advertised. now the second or third biggest deployment of venture capital in the world (depending on which mayor you believe. "Not on my watch. 45 . dumped hundreds of thousands of people into the ranks of the unemployed (26. the early layoffs of talented IBM employees played a large role in supplying individuals to start ventures or to be hired by other startups. it should be noted). continues to remain true to its rocky.

the need to optimise economic benefits of the owners/shareholders rather than meeting the social objective of masses and the disadvantaged group. public and non-profit sectors. Ridley-Duff (2008). just as recognizing the ecosystem renewal after a the loss of a whale is obviously not a call to go out and kill whales. The practical implication here is obviously not to encourage or applaud corporate death. organisations choose to organise their social entrepreneurship ventures under non-profit activities while other may prefer for-profit activities. and sympathetic with. downsize. social business ventures encompassing for-profit activities and the hybrid non-profit ventures model where there is a combination of both the non-profit and for-profit activities. Elkington and Hartigan (2008) suggested three concepts of social entrepreneurship. Most organisations are concerned about these changes and hence are proposing alternative forms of organised economic activity. According to Townsend & Hart (2008). hence the development of the socially-driven approach. agency theory. or restructure. 46 . as so many people are when corporations fail.I make this observation fully cognizant of. For example. the pain of being tossed out into the street. But in an ever more complex and volatile world. the non-profit ventures which deal mainly with non-profit activities. traditional approach of entrepreneurial drives is based on economic reality. THERES BEEN AN UPSURGE OF INTEREST IN CONCEPT OF SOCIAL ENTREPRENEURSHIP Over the last decade. divorce of ownership from control. Schumpeter (1934) suggested that there is a gap that traditional economic model and framework cannot address and hence the need for the emergency of socially-driven framework. use the term more than profit to describe the way entrepreneurship aims to combine both the economic and social aspects of it. business leaders and policy makers would be well served in allowing nature a little more rein in playing out its course. there has been an upsurge of interest in the concept of social entrepreneurship driven by the changes occurring in the competitive environment faced by private.

a deep commitment to building a just and humane world The concept of social entrepreneurship means different things to different researchers (Dees. stated that a social entrepreneur is characterised by intiative. namely. focus on results. Warren Buffet. but it is still considered to be in a stage of infancy. hence little has been widely documented in this area. Boschee (1998) referred to social entrepreneurship as not-for-profit initiatives in search of alternative funding strategies. energy obsessive. This approach aims to analyse the factors leading to the emergence and development of social entrepreneurship and the essence of social entrepreneurship and explore the potential similarities and differences between sociallydriven and commercially-driven entrepreneurships.Florence Nightingale is a prominent UK history example of Social Entrepreneurship. philanthropists such as Bill Gates. capacity for self-correction. The literature review will examine the definition of the two terms of the concept. What is Social Entrepreneurship? Bornstein (2005). 2009). She established the first school for nursing students in 1860 and today she remains an icon for health care workers and professionals. ‗‗social‘‘ and ‗‗entrepreneurship‘‘. Although the term social entrepreneurship was originated in the 60‘s. 1998). The philosophy fuelling social entrepreneurship is not new development. one of the pioneers in modern nursing practices. Mair and Martí (2006) argued that social entrepreneurship refers to a process where resources are used and combined innovatively and opportunities are pursued in order to achieve social change and address social needs. creativity. Muhammad Yunnus (the founder of Grameen Bank of Bangladesh) just to mention but a few have been ―converted‖ from pursuing economic goals to bringing about social transformation into the life of many (Ahonsi. profound understanding of the market and above all. Literature Review Studies on social entrepreneurship have attracted many researches from different fields and disciplines. Richard Brandson. 47 . its definition still remains fuzzy. or management schemes to create social value. In recent times.

but suggested that human and technological interventions will be necessary in order to correct market failure. Alkire believes that the logical progression of approximating development with economic emancipation is that: Income was the metric that conveyed utility. environmental and ecological management. 2003). therefore. They argued that they expect the liberal economic systems to self check and correct itself (e. Some writers see marked distinctions between Economic Entrepreneurship and Socially Desirable Entrepreneurship. Other writers make further division between the economic and socially-driven entrepreneurship. researchers have moved forward the development of models and have attempted to infuse these various elements and facets with a view to enhancing and emancipating the socially disadvantaged group of the society. socially-driven entrepreneurship has cut beyond the boundaries of economic theory of profit optimisation as the driving force for the purpose of establishing an entity. Beckerman 1994. believe sustainable development is a function of economic growth. However.g. corporate behaviour with its attendant responsibility. with some correction for externalities and distribution. Some writers believe that these externalities and unequal distribution of wealth underpin the reasons why there are economically disadvantaged group of people in the society and hence the reason for the emerging subject of socially-driven enterprise.economics and business management. 48 . a respectable economic strategy was to maximize national income per capita. Emergence of Social Entrepreneurship In recent times.Thus. Pearce (1988) and Pearce et al (1989). Hajer (1995) referred to this as ―ecological modernisation theory‖. It explores the subject in interdisciplinary dimension. or value.

is called ‗development‘. like human relations school advocates. discursive strategies that promote quicker learning. shelter. Qualitative improvement of the use made of a given scale of throughput.Writers such as Daly suggested and pointed to the distinction between economic growth and development as follows: Growth is a quantitative increase in the physical scale of throughput. rest. 49 . 2002) Holling (2002) emphasised the need for more collaborative. flexibility and diversity. (Alkire. resulting either from improved technical knowledge or from a deeper understanding of purpose. Abraham Maslow emphasised economic growth and development must be consisted with meeting the fundamental needs of human for food. Researchers such as Alkire listed various basic human needs and asserted that human development should be viewed from a multi-dimensional standpoint. These views are based on the premises that suggested satisfying human needs will include meeting economics and social objectives. Thus. 2006:51). sleep. Lutz asserted that ―authentic development‖ is a function of ―meeting the basic material human needs of all‖ (1992:166). (Daly 1996: 31) On the other hand. He stated that from the most narrow economic to the list with the largest number of human needs included in the idea of improving the experience of human life on earth. social security and esteem needs of the majority and not the selection of few. Some authors. this forms the cornerstone and the emergence of socially-driven enterprise concept. Some writers and practitioners questioned the wisdom of the emergency of socially driven entrepreneurship and questioned the idea behind the growth and popularity of this concept whether it is a replacement or a complement to free market management (Cho. Rahman (1992:174) argued that the basic human need is to fulfil our creative potential in ever new ways.

The emphasis and emergent on social purpose. 2007. to increase the well being of disadvantaged majority. Hockerts (2006) criticised the broad nature and scope of the subject by asserting that contributions to knowledge may get lost in a ―quagmire of definitions‖ Arguments for and against Well. Thus.Other distinction suggested that socially-driven ventures look out for the welfare of others and uplift social justices whereas economically-driven entrepreneurship is driven by greed. Most of these writers explored the differences. 2002) and community ventures (Haugh. Even in the absence of these man-made and natural disasters. wasteful and lack of commercial competence. social entrepreneurship led to the field focusing primarily on entrepreneurial non-profit management (Thompson. Oxfam. Haugh and Pardy. 1999). 50 . His research showed that over 50% of socially-driven enterprises in the US formed in the late 70‘s are still functioning into many decades thereafter into the 2000‘s. earthquake in Heiti (2009). Other widely held views of the drawbacks of socially-driven ventures is that social ventures usually fail due to excessive risk taking. albeit less than what had been done in the commercially-driven fields. Some popular opinion holds that 80% of world‘s wealth is centred and enjoyed by 20% of the world‘s population (Barendsen et al. various proponents of socially-driven entrepreneur have done much work. Then who look after the victims? Various philanthropists (NGO‘s. the world‘s wealth are uneven distributed. the use of the free market of which traditional entrepreneurial drive is based on can not meet this objective. the divergence and convergence of these issues – the similarities and differences between the orthodox and contemporary subject of commercial and socially-driven entrepreneurship. Thus far. we live in a world filled with various natural and man-made disasters (war in Iraq and Afganistan (2003-2010). Kirchoff (1993) disagreed with this notion. flooding in Pakistan (2010). 2004:pp43-50). Tsunami in South East Asia (2006/2007) and the list goes on). Red Cross and the like of them).

certification. Innovation based entrepreneurship development could be one such area What do we need to do to promote entrepreneurship As I mentioned earlier. testing. [b] proof-of-concept to prototype. different political parties may not agree on a common agenda for most things but at least there could be a few areas on which consensus can be built. and [e] proof of market. and development of supply chain. five steps involving a very difficult and risky journey of an innovator/entrepreneur are: [a] idea to proof-of-concept. [c] prototype to product. taking a nation building as a common goal. WILL BUDGET PROMOTE ENTREPRENEURIAL UPSURGE? When economic indicators are not very promising. more than ninety percent ideas are aborted before the final stage for want of support. Surely.Sahlman‘s (1996). educational and technological fields. This suggests that social goals cannot and should not be pursued exclusively without taking into account the need for the organisation for profit and non-for-profit to survive now and into the strategic terms. one thing which can bring cheers to everybody‘s life is an entrepreneurial activity in social. spaces and social segments If this is the question I have to ask myself. then I expect a political consensus to emerge around certain key strategies. [d] product to utility. 51 . These mavericks will bring about new hope and generate new space for creativity to manifest. cultural. connection to be forged and empathy to pervade across sectors. branding. And that is possible only through bipartisan approach. The country badly needs a nurturant eco-system for each of these stages of innovations. Austin et al (2006) and Weerawardena and Mort (2006) emphasised the dangers of pursuing of goal ―displacement from organisational maintenance taking over the social mission‖. etc.

National Innovation Council has not spent ten minutes on this issue so far unfortunately. If Dhimaji district of Assam has high iron content in water which does not get completely removed even with the best local technology. parliament should really seriously discuss the health of eco-system for these stages. country will not get boost in the long term growth engine. 52 . Entire agro-biodiversity would have been lost by now if such was the case. Hope things will change some day - Should scale be made enemy of sustainability? Not every innovation can and should diffuse widely. Social diffusion of eye testing or haemoglobin or iron testing facility for villages may not diffuse only through market channels.I am not sure if Rs 200 crore fund announced by finance minister P Chidambaram will be used for such risky steps in value chain or only for scaling up the solutions which have survived in market place. leadership of ULFA. If we don‘t sustain the spirit of the creative people during these stages. Will this not lead to birth of more ULFAs? Incidentally. We can neglect such localised needs at our own peril. We should realise that not all innovations need to be diffused through market channels. But regardless of this. For different kind of ventures. we need different scaling up strategies. ‗insurgent‘ organisation came up from this region mainly. Every primary health centre and school should have this device. will we develop water filters for possible diffusion only in one or few such districts? What is the incentive given to private actors to invest in products which will have limited diffusion? Should such needs be neglected. One of the innovators awarded under Anjani Mashelkar award for the innovation for the elderly has developed Rs 5000 solution for testing iron deficiency among people in a few seconds. Some need to be diffused through social channels. Will public procurement policy ever encourage such innovations? Will market ever reach such facilities among the poorest people? When have we spent time to take annual roll call of all such technologies and institutional models of importance for common people and then audit all polices from the perspective of scaling these? Never.

future is bleak. In most cases. Occasional meetings are fine but sustained long term stay in incubators is not possible for many entrepreneurs. budding entrepreneurs cannot leave their families and location to stay in an incubator. - I hope that we will gather the courage to converge and make budding innovators and entrepreneurs feel wanted and nurtured in the country. If innovators and entrepreneurs are not happy.- The project of keeping the country together will not be fulfilled if we continued to neglect such needs. Let us turn the leaf and for once and show that India can indeed develop an inclusive and assimilative model of development. We need to de-emphasise ex situ model of incubating entrepreneurship and encourage in situ model that we evolved at GIAN and National Innovation Foundation. We need to nurture the start-ups where they are. I can list hundred other similar localised problems which are not getting attention of formal R and D system and we will not encourage local innovations either in those areas. 53 .

which results in low efficiency and high start-up costs in India. willingness to take the risk of running a business is not a common trait among a majority of Indians. optimism (66%).such as business thinking (69%). and persistence (65%) . optimism and persistence are common among Indians. Though India has seen many entrepreneurial ventures. lack of funding and poor technology and training. So what are the major factors that let down India in this poll? Let‘s take a sneak peak Willingness to take the risk of running a business is not a common trait among Indians Qualities required in entrepreneurs such as business thinking. But the most important part which is the willingness to take the risk of running a business is rare.INDIA RATED WORST ASIAN COUNTRY FOR ENTREPRENEURSHIP: 6 REASONS SAY WHY Bangalore: India known for its talent tank. ―More than 60% of the Indian population possesses personality traits that are crucial for success as an entrepreneur . However. government hurdles. according to a Gallup poll. it is still the worst for entrepreneurship in Asia. Microsoft and the tech bellwethers and manufacturing giants it has produced over the years.‖ 54 .which suggests a wealth of entrepreneurial capacity. The report said. The reasons behind this are pointed to be widespread corruption. most of them who work for big organizations like NASA.

localized funding at the initial stage The most helpful factor in becoming an entrepreneur in India is access to financial support. The study said. More than seventy percent believed corruption is widespread in the government. around 46 percent of Indians say the government is the biggest hindrance in starting a business. More than sixty percent agreed that corruption is widespread in business. Entrepreneurs need more diversified. ―The key problem for entrepreneurs seems to be less about the availability of funding and more about finding the right type of funding. This view was particularly high among current business owners (72 percent) and those planning to start a business in the next 12 months (80 percent). 55 .Reliable support from honest and efficient government institutions is essential According to the poll.

Additionally.‖ There are only very few venture capital funds facilitating startups that offer the high-demand products and services in the healthcare or energy sectors in India's massive domestic market. 56 . in Indian startups there is a lack of angel funding and investor participation in companies‘ management. Foreign investors need to understand India's business culture Another problem with funding is that the foreign investors pay no attention to India's unique market demands. talent supply and business culture.The majority of existing venture capital funds for start-ups are focused on exportoriented IT or mobile solutions. Venture capitalists in India prefer to only finance expansion of existing businesses. rather than funding a start-up from scratch. They often make wrong assumptions based on what has worked well in their home countries.

which is much lower than the Asia average of 44 percent.Indian entrepreneurs need more access to training and mentorship The report also said that only 22 percent of Indians who plan to start their business in the next 12 months have access to formal or informal training to start a business . Finding trusted partners is another big problem According to the survey. 57 . only 16 percent of Indians say that a non-relative can be a trusted business partner. Also there are not many entrepreneurs who offer their success stories for the young entrepreneurs to learn. Also there is a lack of judicial infrastructure to protect the trusting relationship between entrepreneurs and business partners or between entrepreneurs and customers.

58 .    The data maybe old and out of date. The company publishing the data may not be reputable. The project should be based on primary research and company visits rather than secondary data.  The information and data may not be accurate. The source of the data must always be checked. The sample used to generate the secondary data maybe small. RECOMMENDATIONS:    The time duration should be increased.CHAPTER-5 RECOMMENDATIONS & LIMITAIONS LIMITATIONS:  Secondary data can be general and vague and may not really help companies with decision making. The secondary data we use should be more accurate.

develop incentives and bolster human resources – ‗translate business strategy into talent strategy‘. NKC believes that Entrepreneurship has enormous scope in India‘s growth story. Advice to Entrepreneurs: During the interviews. As seen in previous chapters. and potential entrepreneurs themselves. academia. Based on the narrative in the previous chapters and interviews with stakeholders. lusive approaches (address the needs of talent at all levels). Promoting Entrepreneurship means encouraging people to be self-reliant in taking economic decisions and creating wealth and employment. industry. there are a few key action points that will encourage and enhance Entrepreneurship in the country. financial players. enhancing Entrepreneurship involves the community. entrepreneurs were asked what advice they would like to offer to upcoming entrepreneurs. family. Below is a list of illustrative responses: experiences.CHAPTER-6 CONCLUSION Comprehensive Campaign A comprehensive campaign to raise the tempo of Entrepreneurship in India will necessarily need the concerted efforts of a number of agencies. 59 . and to mentor upcoming entrepreneurs. government.

new businesses for company. create an environment that will reduce risk. 60 . if you are responsible. social security and tax registrations. improve corporate governance norms. ments and multiplicity of procedures. web portals and ‗one stop shops‘ and widen dissemination of all relevant information. – focus on core strength and excel. give autonomy and divest authority. improve the delivery time. – ‗Cost is forgotten.ally on marketing and financial aspects. Single Composite Application Form. – especially in up-scaling – hire individuals who are better than you. reduce corruption. What the Government Can Do Encourage a conducive business environment. In particular: -to-date information source for start-up entrepreneurs in the form of source books. quality never‘. collate informational needs of start-ups. ensure simplified startup pro cesses. and encourage more seed funds and corporate players to provide start-up funding.

networks. How can Chambers of Commerce/Industrial Associations/Other Networks Help? meetings. country. leverage networks with successful entrepreneurs. oper publicity and implementation of various promotional schemes and policies. platforms for discussing entrepreneurial best practices and experiences by holding nation wide workshop 61 . -size and large companies to reach out to young entrepreneurs.-class infrastructure. and beyond metropolitan cities and top educational institutions. discussions and networking.

ethics etc and not only technical feasibility) where the financial community can play a significant role. relevant aspects of scaling-up. understanding risk mitigation-measurementstrategy. -ups. incorporate case studies of real life situations in the curriculum so that students are able to get a ‗concrete feel‘ of the outside world. explore possibilities of establishing entrepreneurship schools at the undergraduate and post graduate levels such as the one envisaged at IIT Kharagpur. Indian corporate law and relevant international laws in curricula.). with possible alumni and NRI involvement. early enterprise management. Business Incubation Centres structures towards measurable performance outcomes and provide stake in the outcomes (through knowledge equity. explore ideas for flexibility of vocational education with mainstream education for greater linkages between theory and practice. etc. cash flows. feasibility of taking an idea to market. Role of the Financial Community a major business opportunity. 62 . to business ethics. analysis of business failures.Role of Educational Institutions/R&D Centres that encourage critical and lateral thinking. introduce manuals in school curricula on ‗How Things Work‘ on various practical aspects of everyday living.

RAM-risk assessment models etc) as ways to increase risk appetite. especially from marginalized groups. CIBIL-information disclosures. communities not traditionally associated with business. At the National Level – Reward and acknowledge its role in wealth creation and employment generation. cost of credit to ratings (where more holistic ideas of risk can be evolved).(SMERA-credit ratings. 63 . CART-credit appraisal tools.

sidbi.in/ and http://www.ediindia.dsir.indiatimes.in/women-entrepreneurship-in-india/ Guy Kawasaki.nic.CHAPTER-7 REFERENCES - http://msme.in/ . Growing a Business 64 .in/tpdup/tepp/tepp. Small and Medium Enterprises.numsum. - http://www.com/spreadsheet/show/48465 . Battle-Hardened Guide for Anyone Starting Anything Paul Hawken.laghu-udyog.economictimes. http://www.The Ministry of Micro. http://www.The Small Industrial Development Bank of India works towards empowering Micro.org/ http://articles. Small And Medium Enterprises lists various government schemes for entrepreneurs - http://www.This lists VCs based in India and/or making investments in Indian companies.com/notes/entrepreneurship_in_india/ http://thehatch.htm - The Technopreneur Promotion Programme is run by Department of Scientific & Industrial Research. The Art of the Start: The Time-Tested.gov.com/ .com/2013-0125/news/36548273_1_young-entrepreneurs-seedfund-job http://swaroopch.

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