Impact of Globalization on

Innovation and Entrepreneurship in India

Dr. Smita Singh

Assistant Professor,
Ambedkar Institute of Advanced
Communication Technologies and Research, Delhi

Abstract

India as a developing country and globalization has open the door to the new talent of
India. Globalization act globally for the beginning to reap the benefits of a wider audience
and the potential for the fast growth.It has challenges as well as it increase the competition
.So globalisation drives competition and competition drives entrepreneurship .India
became the largest job creator in Asia and Pacific region in 2016.As globalization has
given the Indian entrepreneurs more areas for innovation. With the rise of globalisation
entrepreneurial global start-up have emerged in developing country with associated with
job creation, wealth creation and new invention.
Key words: Globalization, International Expansion, Cross culture, Entrepreneurship

Introduction
Globalization is a key trend in the business world today. It is the act or process of
globalizing. Globalisation in business management is interconnection of international
markets and managing business in a global industry. Globalisation may simply be defined
as the free movement of capital, Labour and good and services across various countries
of the world. The global market is open for the all the entrepreneurs across the world
.Theentrepreneurs is commonly seen as a innovator and a source of new ideas ,good,
services and business procedures. Entrepreneurship is the act of being an entrepreneur
which can be defined as one who undertakes innovation finance and business accumet
in an effort to transform innovations and economic goods. Globalization has open the
door to the new talent at the international market . Globalization drives competition and
competition drives entrepreneurship so there is direct relationship between globalization

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and entrepreneurship .India is one of the emerging country is promoting entrepreneurship
and framing many policies and facilitate different faculties to encourage entrepreneurship.

Globalization
Globalization is the growing integration of the world economy.Itcan be defined as the
process of increasing social and cultural, inter connectedness , political inter dependence and
economic, financial market integration. Globalization is a key trend in the business world
today. According to online encylopedia globalization refers to a process of increasing global
connectivity and integration between nation states, households/ individuals , corporation
and other organisations. It is an umbrella term referring to increase interdependence in the
economic, social, technological, cultural, political and ecological spheres.
Globalization has made business management easier and efficient for the company and
the entrepreneurs. It has simplifies the area of business in the world .Entrepreneurs and
there companies is now having vast market for their products and services .Globalization
includes foreign investment where by a company expands its business and invest in foreign
country.

Importance of Globalization
1. Foreign exchange : Globalization means the market is open for the other countries
and as the countries are in the same market so there will be exchange of the foreign
currencies. So there will be expansion of business and investment of foreign countries
2. Create employment : Globalization has remove the boundaries for the entrepreneurs
and has created more area for the opportunities as the market is vast and there is more
scope for job.
3. Benefits to the consumer : Globalization has also open the market for both the consumer
and the company . Now consumers can have more products and services lines and its
going to be beneficial for the consumers.
4. Technology :Globalization has increased interdependence in the economic, social and
technology. Globalization has also exposed the global technology .
5. International competition :Globalization leads to increase competition . Globalization
can be turned into a great opportunity for the business and it provides opportunity for
the ventures at international level. Globalization give business vast area for competition.
6. International expansion :Globalization works as the international expansion as with the
increased global interaction comes the growth of international trade, idea and culture.
7. Overall growth prospects : While globalization is generally good for the economy
growth it also include greater cross boarder mobility of goods , Labour and capital
each of which promises significant overall benefits for economic. Free trade enables

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 countries to capitalize on their comparative advantages, boosting all participants
economic performance and prospects.
8. Ability to access appropriate skill and talent : Globalization has open the field for all the
entrepreneurs from the world so entrepreneurs has platform to use their skill and talents
globally.
9. International cultural exchange :Globalization represents the exchange of ideas,
values , and artistic expression among culture. Globalization also represents a trend
development of the world culture.
10. Development of worldwide commerce: Globalization compels business to adapt
to different strategies based on new ideological trends that try to balance rights and
interest of both the individual and the community as a whole.

Entrepreneurship and its Importance

Entrepreneur is someone who has an idea and who works to create a product or service that
people will buy by building an organisation to support those sales and the process of making
these idea in an implementation is called entrepreneurship. Entrepreneurship is the act of
being an entrepreneur which can be defined as one who undertakes innovation finance and
businessin an effort to transform innovation and ecological goods. Entrepreneurship is the
literature all entail different focuses such as risk taking , innovation and responsiveness to
opportunities.

Entrepreneurship often associated with four aspects

1. Job creation : An entrepreneur can create employment opportunities by growing a
business .Entrepreneurs are business starters , small , medium or large they all need
employees so creating a business is hiring employees Market disruption can cause
new job fields to open .So entrepreneurship is the key to job creation and works as the
employment creation as a new venture need employees so entrepreneurs works as the
job providers or job creators.
2. Wealth creation :Entrepreneurship works as a wealth creation and value adding process
as entrepreneurship is the process of doing something different and new to develop
wealth for individual and adding value of the society. Entrepreneurial venture generates
new wealth .Existing businesses may remain confined to the scope of existing markets
and may not the glass ceiling in terms of income .New and improved products , services
or technology from entrepreneurs enable new markets to ‘ve developer a new wealth to
be created.
3. Innovation :Entrepreneurship is coming up with new ideas With create innovations.
The application of innovation to a problem is one eat in which a entrepreneur would

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 drive a better outcome than that which already exists. Entrepreneurs by their nature are
innovative .In terms of innovation a common defination from OECD's Oslo manual is
the following:
An ‘innovation ‘ is the implementation of a new or significantly improved product(goods
or services) , or process, a new marketing method , or a new organisational method in
business prac6, workplace organisation or external relations.
Hence it involves a change that create new conditions for economic activity, either for
individual companies on a market or globally .So entrepreneurship and innovation are
somehow the same concept.
4. Welfare effect :Entrepreneurship is associated with the economic returns and job
creation. As entrepreneurship helps in the development of the society by providing
wealth , job , products and services . It helps in overall growth of the society and has its
own welfare effect.

Impact of Globalization on Entrepreneurship

Globalizationhas made the world smaller for all the business and entrepreneurs are the one
those who works in the market so globalization and the entrepreneurship is directly related
globalization. Globalization act globally for the beginning to reap the benefits of a wider
audience and the potential for the fast growth. It has challenges as well as it increase the
competition. So the globalization drives competition and competition drives entrepreneurship
Entrepreneurship Globalization works hand in hand with entrepreneurship in three
important way. Firstly globalization facilitates technology entrepreneurship by fostering the
rise of innovation ecosystem. This might include engagement between new ventures and
large multinational enterprises. Nowadays many multinational have manager with job titles
that include terms like “start up engagement “.The success of entrepreneurship is driven by
technological change. These changes have democratized entrepreneurship and entrepreneur
can come from anywhere in the world and can reach customers anywhere from the day
they open their door. Secondly Globalization facilitates transnational entrepreneurship
diaspora network to various countries take what they have learnt in corporations and use it
to create their own business in the same or similar sector. Thirdly Globalization facilitates
social entrepreneurship that involves creating wealth simultaneously addressing vexing
societal problems such as environmental degradation, poverty and poor health. So when
globalization meets entrepreneurship it can be a force for good.

Advantages of Globalization on Entrepreneurship

1. Increase in Economic of scale and scope : The globalization of economics has
heightened the importance of entrepreneurship for creating wealth. Globalization refers

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 to A process of increasing global connectivity and integration which open the market
for the entrepreneurs and entrepreneurship is associated with the wealth creation.
2. Exposure to the global competition: As the globalization has made market open for all
countries there is increased in the foreign investment as well as foreign exchange and
the entrepreneurs now have more competition and perceived opportunities. The key
interest of any entrepreneur is the wealth creation and globalization has given a vast
scope for the wealth creation by providing the field of international competitiveness .
3. Accelerate economic growth: Globalization makes business management easier and
efficient for the entrepreneurs. It has simplifies business management in the world
as it includes foreign investment where by a company expands its business and
invest in foreign country. Secondly globalization becomes the job creator and give
the entrepreneurs more area for innovation as the market is big there will be more
opportunities for the new ventures or innovations. Entrepreneurship is facilitates by
globalization as it provides opportunities and directly helps in wealth creation. Because
of globalisation the economics of the world are being increasing integrated and the
world is becoming a small place.
4. Multiple choices for Entrepreneurs : Globalization provide a vast platform for the
entrepreneurs and they have multiple choice to launch their products or to start their new
ventures. As there is diversity of culture or cross culture they have more opportunities
or choice to implement their idea on big platform.
5. Cross culture exposure :Globalization has created a demand for new mire diversified
products through cross cultural exposure and for higher end goods and services through
increase prosperity. Globalization is increasing international cultural exchange and so the
entrepreneurs has more market and opportunities as there is multiculturalism and there
is diversity that increase the market area for them. Globalization and entrepreneurship
both affect the social aspects in the same way as both helps in overall growth of the
country . Entrepreneurship is associated with the welfare effect. Globalization has
increased awareness of foreign cultures so for the entrepreneurs there is more scope for
their innovation and get more ideas to make new ventures and innovation .And make
the countries.

Disadvantages of Globalization on Entrepreneurship

Globalization create opportunities through market integration and low trade barriers .It
also spurs increases competition on an international level which negatively affect the
survival of small firms on the other hand small firms are more flexible and able to adopt to
change brought by international competition. So with the globalization the entrepreneurs
with in the global face a lot of challenges due to high competition in the industry, good
decisions must be made in order to satisfy and maintain their customers and attract more

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customers for the product. Globalization act globally for the beginning to reap the benefits
of a wider audience and the potential for the fast growth.It has challenges as well as it
increase the competition. So it's globalization drives competition and competition drives
entrepreneurship. So due to this expansion in market it has increased the competition
among the nation.
The wide array of defination of entrepreneurship in the literature all entail different
focuses such as risk taking , innovation and responsiveness to opportunities .Globalization
and entrepreneurship both has created the employment but it can be uncertain as the
entrepreneurs carries risk with their innovation and in case the innovation does not goes
well there can be uncertain employment.

Indian Government Support for Entrepreneurs

The Government of India has undertaken several initiatives and instituted policy measure
to foster a culture of innovation and entrepreneurship in the country. Indian government
is framing many policies and facilitate different faculties to encourage entrepreneurship
.A wide spectrum of new programme and opportunities to nurture innovation have been
created by the Government of India across the country. India has emerged as top creator of
job in Asia and Pacific region in 2016 due to the policies made to promote entrepreneurship.
Government of India has framed policies in order to stimulate entrepreneurship and
improve business environment for new ventures. Some of the recent innovation of the
Indian Government are:
1. Start up India
2. Make in India
3. Atal Innovation Mission
4. Support for training and employment programme for women
5. Jan -Thanks Adhar Mobile
6. Digital India
These are some of the endeavour by the Government of India to promote a culture
of innovation and entrepreneurship. As India is emerging as the one of the most
developing country and promoting entrepreneurship by framing many policies to stimulate
entrepreneurship.

Conclusion
The empirical analysis on the impact of globalisation on Entrepreneurship is based on
the three parameters that are economical, social and political .Globalization benefits the
entrepreneurs through advance technology and international expansion. Globalization led

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to major increases in worldwide trade and exchange in an increasingly open , integrate
and borderless international economy. Globalization provides entrepreneurs exposure to
the global competition and give opportunities for the new ventures of the entrepreneurs.
Globalization is directly related to entrepreneurship as globalization drives competition and
competition drives entrepreneurship but the effect of globalization is not clear cut while
it create opportunities through market integration and low trade barriers .The competition
among the developing country to attract foreign investment lead to a race to the bottom in
which countries dangerous lower environmental standard. But with the rise of globalization
entrepreneurship global start-up have emerged in developing countries which associated
with the job creation, wealth creation, innovation and its related welfare effect.

References
• Etemad, H., Wright, R.W.(2003);”Globalization and Entrepreneurship: Policy and
Strategy Perspectives “.Edward Elgar Publishing,U.K.
• Schumpeter, J.A.(1934),” The Theory of Economic Development ” , Harward University
Press, Cambridge.
• ACS, Z.J., &Audretsch, D.B. (Eds) (1993) . Small firms & entrepreneurship: An east
west perspective. Cambridge, MA: Cambridge University Press.
• Audretsch,D.B.(2002) Entrepreneurship:Asurvey of the literature. EuropeanCommission
, Brussels: Enterprise Directorate General.
• Global Entrepreneurship Research Associate ( 2013),”Global Entrepreneurship
Monitor” London Business School. U.K.
• Kirzner, I.M.(1973), “ Competition and Entrepreneurship “. University of Chicago
Press U.S.A.
• ACS, Z. Virgill, N.(2009).” Entrepreneurship in Developing Country “, Jena Economic
Research Papers, 023.

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