MODULE-6

Content: Emerging Trends in Entrepreneurship Development;

Digital Entrepreneurship: Meaning, Scope and Opportunities.
Social Entrepreneur: Meaning of Social Entrepreneur, Motivation for a Social
Entrepreneur; Supporting and Evaluating Social Entrepreneurship in India.
Rural Entrepreneur: Meaning of Rural Entrepreneur, Potential opportunities for Rural
entrepreneurship in India

EMERGING TRENDS IN ENTREPRENEURSHIP DEVELOPMENT

Entrepreneurship focuses on the individual who wishes to start or expand a
business. Small and medium enterprise development, on the other hand it also
focuses on developing the enterprise, whether it employs or is led by individuals who
can be considered entrepreneurial. Entrepreneurship is becoming a preferred career
path by many people.

Over the years, the market and technology has been a lot of changes. In the past 2
years of the pandemic, Indian economy and consumer demands have taken a great
spin.

With new challenges there will be advanced solutions and emerging trends that will
impact entrepreneurship greatly. Some of the trends include:

1. Going Digital: If there's one thing everyone has learnt from the pandemic its
working digitally, having meetings online and keeping all the processes digitalised. In
the coming months, you will see that digitisation and automation is going to become
an essential part of business operation. So, everyone who is planning to be an
entrepreneur with their creative skills should be ready to sell on digital platforms and
pertaining to websites.

2. Social Commerce: Most business owners have heard of e-commerce, which is a

shopping experience through a website or an app. So what's social commerce? Its
about a shopping and purchase experience within the social platforms, such as
Instagram, Pinterest or Facebook. Remember not to confuse this process with
"Social selling".
With social selling, we can't purchase on the platform itself, we look at a post created
by the brand and if we are interested, we visit their website or app. Social commerce
completely removes this barrier and also provides a social shopping experience.
This is something that will be seen trending soon and many businesses will be
selling on the platform itself.

3. Globalized Businesses: These are businesses with global teams or global reach.
There is a distinction between globalized businesses and international businesses.
International businesses sell worldwide by operating from a single facility. Globalized
businesses operate from different areas of the globe. Globalized businesses tap into
the knowledge and experience of experts around the world. The tech industry leads
the pack in globalizing business.

4. Freelance Business Services: Many companies are hiring freelancers for project
work. The freelancer can work from home, at the client's company or office, or a
combination. They are typically hired for a specific period or a specific project. Many
freelancers work for more than one client at a time.. Some freelancers go on to hire
employees or subcontractors of their own, taking a small percentage as a finder or
administrative fee.

5. Mission-Based Businesses: Green, sustainable, or community-based

businesses are other names for purpose-driven businesses. These are for social
entrepreneurs. Mission-based businesses give back in the form of product or cash
donations, volunteerism, or activism. TOMS is an example of a "one for one model
where one pair of shoes is donated for every pair sold. Patagonia is known for its
environmental activism. The Honest Company sources its products from safe and
sustainable sources. Mission- based businesses also include non-profits.

Just because a business is mission-based does not mean that it can't make money.
Millennials and Gen - Zers are more concerned about environmental and social
causes than their older generation counterparts. And soon, these generations will
make up most of the workforce and spend most of the money. Millennials and Gen -
Zers will have an impact on how companies conduct business.

6. Subscription-Based Business: A recent study showed that 49% of shoppers

use a subscription service, and Stitch Fix, Blue Apron, and Bark Box are just a few
examples of subscription-based services. Subscription- based business categories
include beer and wine, clothing, cosmetics, meal kits, pet food and pet toys, vitamins
and supplements, and even razors (Harry's). These businesses create a consistent
revenue stream, better engagement, and brand loyalty. They're based on the idea
that it's easier to sell to an existing customer than acquire a new customer.

7. Customer Service Focus: Again, driven by competition, modern entrepreneurs

and business today are waking up to the need of engaging with their customers and
building a loyal base. While products and services do matter, customer service
approach to business has become vital to flourish and expand a trend that is again
set to change the consumer buying patterns and drive growth

8. Focus on R&D/Innovation: With access to the latest know-how using digital

learning and global knowledge exchange platforms, increasing number of
businesses are waking up to the need of continuous learning and innovation. This
trend is set to rise, with more and more businesses investing time and resources to
study, implement and improve their product and service offerings, thereby their
growth potential and possibilities for international expansions.

DIGITAL ENTRPRENEURSHIP
Over the years, entrepreneurship has completely changed with the advent of online
technology. It is highlighted in the company's practice, education, theory, and
marketing techniques.

Definition

Digital entrepreneurship can be defined as a method business owners use to change

companies' working theory and practices by keeping technology in mind. It
showcases the new processes that entrepreneurs can use for making their business
digital. It includes a variety of things like cost- cutting, partnership opportunities,
product designs, and many more.

A digital entrepreneur is a new form of discipline that makes the business digital
exclusively. It gives the perfect opportunity for marketing in the digital world. Many
entrepreneurs pick an offline model and take it to the digital world using the
optimization process by minimizing costs and engaging in superior marketing
techniques.

It is a subcategory of entrepreneurship that works for revolutionizing the traditional

organization into the digital one. There is a solid increase in the usage of digital
technologies across various industries that make it important to use this kind of
entrepreneurship.

Characteristics of Digital Entrepreneurship

Some of the major characteristics of digital entrepreneurship are:

Planning
No matter what type of entrepreneur you are, it is always essential to perform
adequate planning. A digital entrepreneur needs to focus on their goals by creating a
strategy that makes sure they are moving to the right path. It is essential to
understand not even a single business can perform all the things at once. It means
everything needs careful planning and vision for creating an impactful foundation.

Effective Communication
A digital entrepreneur will always organize and articulate ideas and thoughts well.
Having a clear idea isn't enough unless they know how to convey it to others. It is a
very critical characteristic when talking with business partners and investors for the
organization. That's not all; it is v very helpful in dealing with team members for a
better experience.

Getting Motivation from Failures

With respect to failures, there are a great chance most normal individual. will have
negative thoughts in their minds. Over the time, failures have become a stigma in
normal society. However, things are different talking about digital entrepreneurs who
embrace failures. They take it as the lessons that bring success to their career. Few
of the top examples of entrepreneurs who attain success after multiple failures are
Jack Ma and Elon Musk. These people have the extraordinary motivation that lets
them turn failures into success.

Having Urgency
There is no way that digital entrepreneurs can succeed in their ventures without
having the urgency to succeed. They create deadlines according to their goals and
make sure everything gets completed on time. In fact, they will see their deadlines
shorter than normal as they believe it boosts effectiveness and productivity. Having a
sense of urgency allow them to complete important things first. Making shorter
deadlines make the entire process extra resourceful. That's why, digital
entrepreneurs perform things in a much smart manner.
Understanding the Numbers
We can't become a successful digital entrepreneur without having detailed numbers
regarding your venture. Many top entrepreneurs have said about the importance of
numbers in their business. It is essential to know about the retention & acquisition
cost so that overspending can be avoided. A company's financials provide a very
solid story for having profitability and success in the long run.

Thinking Globally
The biggest benefit of digital entrepreneurship is it allows individuals to reach a
global level. While we understand that the competition may be quite high, it also
produces huge opportunities for expansion. It is very important to think at a larger
level than keeping your business small. Every digital entrepreneur should take
advantage of taking their business on a different level.

Examples of Digital Entrepreneurship

Some notable examples of digital entrepreneurship are:

Neil Patel
Neil Patel is a very popular digital marketing entrepreneur who has made a net worth
of nearly US$ 10 million in a short span of time. Patel owns many platforms like Hello
Bar and Crazy Egg

Byron White
Byron White is the creator of Writer Access that is the perfect destination for fulfilling
content needs. Although many similar platforms were released after that, this one
has remained the premier choice of many.

Elon Musk
Musk is a true genius, and only a fool will deny this fact. He is a visionary genius who
first created online Payment Network "PayPal" that changed digital payments
landscape. This platform was sold to eBay for US$ 1.5 billion proving its worth to the
world. Elon Musk has also completed other ventures like SpaceX and Tesla that
make him one of the most completed entrepreneurs of all time.

Scope of Digital Entrepreneurship

1. Scalability
Most digital entrepreneurs start by fulfilling a niche market or inventing a product or
service, then scaling the business to a wider audience once it's achieved some
measure of success. Working with digital markets can allow an entrepreneur to scale
a company in a way that's both productive and cost-effective.

This potential for growth without having to expand a business physically or rent
additional space may encourage digital entrepreneurs to take more opportunities to
scale the business, since the level of risk may be lower than with a traditional
business.
2. Adaptability
Digital entrepreneurship also allows businesses to pivot their services, branding and
pricing without adding significant turnaround time. For example, a venture of this sort
may adjust its pricing by altering online marketing information rather than investing in
changing physical advertisements. It could also rebrand by focusing on changing
aspects of its website, marketing materials and products rather than adjusting the
layout or design of a physical location.

3. Accessibility
While location can be a primary factor in determining the success of a physical store,
online shops and businesses are typically accessible from customers' homes. This
means that the potential customer base for an entrepreneurial endeavour is initially
much larger, though it may rely more on advertising to get website traffic. This factor
can help smaller size operations compete with larger companies for customers
without the necessity of growing to the same size as their competition.

4. Profitability
Starting a business on the internet can allow a company to scale its earnings, such
as by earning revenue from advertisements online by receiving a percentage of profit
each time a user clicks, views of interacts with the advertisement. A digital company
can also market to potential customers by creating content, such as videos detailing
products or services. With a website, it may also be easier to implement subscription
payment methods for services or renewable products, which can help secure a
consistent customer base.

Opportunities of Digital Entrepreneurship

1. Set goals: To develop achievable goals, it's helpful to assess the current scale of
the entrepreneurial venture. Setting goals can help you create landmarks for
business growth, which may motivate you professionally. Developing a plan for
how you intend to achieve your goals can also help the business maintain
direction, which can assist it in targeting the ideal customer base.

2. Keep learning: Due to the online nature of digital entrepreneurship, the

technology the business interacts with is likely to change frequently. Keeping up to
date with the latest standards for web design, advertising and website functionality
can help businesses to grow and maintain an active customer base. Ex. You can
learn fundamental skills related to programming to help you write code that
enhances the company's online security and improves its efficiency.

3. Network actively: Networking with other entrepreneurs and creating relationships

can promote a business to higher degrees of success. These relationships can
become partnerships or collaborations and expose the company's goods or services
to other markets and consumer bases.

4. Monitor costs: Tracking the business expenses and profits, then compiling it all
in one place can help you keep perspective on a business' performance and its
needs. This practice can also help you monitor the company's progress in terms of
meeting its financial goals.
5. Build prototypes: After completing prep work, research and planning, its
beneficial to create a prototype to ensure a product operates properly. Businesses
can create prototypes by using 3D printing machines or collaborating with other
companies that create small- scale versions of large products or to-scale replicas of
planned idea.

SOCIAL ENTRPRENEURSHIP

With the aim to tackle social problems like poverty, illiteracy, ill-health, human rights
violations, disability, ecological damage, and corruption etc. citizens across the world
have engaged in various collaborative process with multiple stakeholders, such as,
governments, private institutions, community-based organisations, fund raisers etc.
One such process is social entrepreneurship.

Social entrepreneurship has been referred to, as a social movement, field/domain,

and profession. However, Social Entrepreneurship', as the name indicates, is
absolutely influenced by the entrepreneurial spirit of business enterprises that
exploits opportunities to enhance social wealth. In fact, social entrepreneurs are
people with relentless mission to tackle social problems. Social entrepreneurs, in
pursuit of realising the mission, will not give up till they are able to transform their
ideas into reality.

Definition
Social entrepreneurship is a process by which citizens build or transform institutions
to advance solutions to social problems, such as, poverty, illness, illiteracy,
environmental destruction, human rights abuses and corruption, in order to make life
better for many

Social Entrepreneurship entails identifying the pressing social problem(s) and finding
a solution through novel ways. In a way, social entrepreneurship intends to empower
the society (especially the underserved communities) in addressing its problems. Ex:
Educational institutions, Banking services in the underserved areas and helping
children orphaned by epidemic diseases.

Motivation for Social Entrepreneurship

Here are some principles that motivate social entrepreneurs with a focus on social
entrepreneurs in the market or "vertical" for solutions to poverty alleviation,
especially in developing countries and disadvantaged communities.

1. More Than Good Intentions: Good intentions are certainly enough for a
philanthropist, when the act of giving is the central act. Good intentions are not
enough for a social entrepreneur. To adapt a phrase, the path to a failed charity or
social enterprise is paved with good intentions. Oprah Winfrey has an almost
limitless supply of genuinely good intentions, and yet her school for young
disadvantaged girls in South Africa paid a high price with waste, mismanagement
and scandal. On the other hand, the founding team of TSIBA South Africa have
developed a little known but high impact free college for very poor blacks and
coloreds with great promise using Mandela rather than Oprah as their guide for
creating affordable world class education for all.

2. Look Outward, Not Inward, For Motivation: Some social entrepreneurs try to
solve their own problems, or set their own life on a better course, or fill a hole in their
life, by trying to solve the problems of others. If the motivation is to make your life
seem better or richer by intervening in the lives of others, it may not be the best for
the others. Real solutions require much more than self-centred altruism. Pick a high-
profile celebrity spending a few days in an African refugee camp, and you're likely to
see this condition. The alternative: Dr. Muhammad Yunus: formerly of Grameen
Bank, who worked with the poorest of the poor women in rural Bangladesh to build a
global banking powerhouse, owned and led by those very same women His many
followers have built thriving microfinance banks around the world that serve the poor
first, and other interests like shareholders or governments only with what may be left
over.

3. Efficient Compassion is the Best Kind: It's admirable to care about the suffering
of others, but it's only the first step in building a successful social enterprise. You
can't teach caring, but caring is a given in this market. A commitment to building a
sustainable enterprise that efficiently uses limited financial and other resources,
including those provided through the generosity of others, is at the core of a real
social entrepreneur, There are far too many luxury SUVS filled with well paid
consultants and Ivy League interns. Consider John Wood of Room to Read, a former
Microsoft executive, for an example of a highly efficient and passionately caring
social entrepreneur. The same for the late Dr. Venkataswamy of Aravind Eye Care
who built a "pay if you can" surgical hospital for the blind in India that remains a
global model for efficient compassion in state-of-the art health care.

4. Listening to Voices Other Than Your Own: So many self-proclaimed social

entrepreneurs start with their own solution to the problem as they see it from their
place in the world. The more effective approach is based on listening to those who
experience the problem
and know more about the solution from living the problem. Blake Mycoskie. has done
admirable work at TOMS Shoes, but his reformed business practices suggest he's
recognized that the answers came from those who you serve, not from your own
image of how they should be served. Warby Parker and its eyeglass business
(founded by Wharton MBAS) is a new and improved version of TOMS, empowering
micro-entrepreneurs in the developing world while selling affordable glasses here.

5. Beware of Branding at Someone Else's Expense: Within celebrity culture, we

often see stars try to build their brand by "doing good." When it's more about brand
than lasting solutions to real problems, then watch out. Again, consider where the
line is between charity and brand building at Oprah's (Harpo) enterprises, or Bono's
clothing business. On the other hand, we see Matt Damon's work with developing
affordable and accessible clean water resources in the developing world being done
in partnership with committed professionals and for the long haul.

6. Bottom-Up Solutions, Not Top-Down: Solutions are best designed and

implemented from the bottom up not the top-down, meaning from community-based
business plans and operations management. No one has done this better than
Partners in Health under the early leadership of its inspirational founder, Dr. Paul
Farmer. He built capacity in Haiti to treat HIV/AIDS and other diseases of the poor
among Haitians, to avoid the "fly in model used to bring rich world doctors to poor
communities.

7. Results Matter, Not Mission or Programs: We can only fix the things we
measure. Esther Duflo at MIT's Jameel Poverty Action Lab and Dean Karlan at
Yale's Innovations for Poverty Action have both committed their development
economics work to finding ways to actually measure what works and what doesn't
work to reduce poverty. There's little glamour in measuring and studying programs,
such as in developing randomized control trials for poverty work that mimic those for
drug testing. But, passion for finding the best ways to really help the poor help
themselves represents the next step in the development of social enterprises.

8. There's Plenty of Room for Genuinely New Ideas: There remains lot of room
for entirely new ideas in social enterprise, especially in the economic development
field. Willie Foote founded Root Capital to fill the "missing middle" of agricultural
finance to address rural poverty. Too big for microfinance but too small for
commercial banking, Root Capital fills the gap with large loans to cooperatives made
up of poor farmers that allow them to achieve the quality necessary to sell into global
commodity markets. Similarly, Andrew Youn created The One Acre Fund to help
poor rural farmers improve their productivity and access to markets, thus changing
the lives of poor farmers forever in East Africa.

9. Drawing the Line Between Good and Evil: With the great success of
microfinance came a few who would use the model created by Dr. Yunus to exploit
rather than empower the poor. The founders of Banco Compartamos of Mexico City
and SKS Microfinance of India can defend themselves, but with 100% interest rates
charged to the poor just because you can, and collection methods that led some
borrowers to commit suicide rather than suffer the shame of default, it's clear that a
line between compassionate capitalism and greed and exploitation can and must be
drawn.

10. Giving Back is the New Thing: Bill and Melinda Gates of The Gates
Foundation have "bet the house" on solving the biggest problems of the world, from
education to sustainable farming to affordable medicine. But perhaps even more
important, they have led others to do the same, through their "billionaire's giving
pledge" campaign. Some of the wealthiest people in the world like Warren Buffett
and Mark Zuckerberg of Facebook have promised to give away at least half of what
they have to efforts to solve the big problems. While we all can't be billionaires, we
all can follow their lead and be similarly generous in dollars, time, outlook and spirit.
So, cheers to the new generation of social entrepreneurs and social enterprise
leaders who are doing it right. They are role models for young people around the
world who are studying hard and hoping to find a clear path to a new more
compassionate and inclusive way of doing business.

Supporting and evaluating Social Entrepreneurship in India

Supporting Social Entrepreneurship in India:

1. Focus on social problems: Social entrepreneurs mainly focus on social

problems. They initiate innovation by mobilizing the resources available to build
social arrangements in response to social problems.

2. Change Agent in Social Sector: Social Entrepreneurs act as change makers in

society who in turn influence others to contribute to the development of mankind.

3. Bring changes: They adopt a mission to create and sustain social value,
recognizing and rigidly pursuing new opportunities, engaging in a process of
continuous innovation, adaptation and learning.

4. Increase Accountability: They act boldly without being limited by resources in

hand and exhibit heightened accountability to the constituencies.

5. Improve people's lives: People are attracted to social entrepreneurs like the
Nobel peace Prize laureate, Steve jobs so compelling- these extraordinary people
come with brilliant ideas and against all the odds succeed at creating new products
and services that dramatically improve people's lives.

6. Help in achieving inclusive society: They are also playing pivotal, role in the
inclusive recovery and rebuilding of communities at the grassroots level.

Evaluating Social Entrepreneurship in India

1. No more Not for profit: India's development sector has undergone a rapid
transformation including the creation of social enterprises that are purely for-profit
companies and no longer restricted to No-profitor low profit ventures. These for-profit
social enterprises can generate enough funds to run their operations without
donations or grants.

2. Social impact investing: The country's social entrepreneurs are being nurtured,
encouraged and hailed for being able to meet India's most challenging
developmental demands. According to the Impact Investors Council (IIC), around
600 impact enterprises in India now affect 500 million lives, attracting over USD 9
billion in capital. Extensive use of technology and rapid digitalisation initiatives by the
government have further facilitated their innovation streak.

3. Support of government: Government support for start-ups along with the

announcement and impending launch of the social stock exchange has paved the
way for a more positive atmosphere for social entrepreneurship in India. The SEBI
has recently released the framework for a Social Stock Exchange, making it possible
for social entrepreneurs to raise more funds and expand their impact and reach
exponentially

4. Sustainability and Multi-Dimensional Approach: Both businesses and

governments are becoming increasingly aware of the importance of sustainability
Social entrepreneurs and their business models have always been working on the
sustainability framework. Additionally, in order to bridge the socioeconomic gaps
prevalent in society one needs to adopt a multidimensional approach.

Rural Entrepreneurship
Meaning:
According to the Khadi and Village Industries Commission (KVIC), "Village Industry
or Rural Industry means any industry located in rural area, population of which does
not exceed 10,000 or such other figure which produces any goods or renders any
services with or without use of power and in which the fixed capital investment per
head of an artisan or a worker does not exceed a thousand Rupees".

The Government of India has recently modified the definition of Village Industry as
any industry located in rural area, village or town with a population of 20,000 and
below an investment of Rs. 3 crores in plant & machinery. With this wider definition
of village industries, a total of 41 new village industries have been added to the
category of village industries.

All village industries have been classified into the following six categories:

1. Mineral-based industries
2. Forest-based industries
3. Agro-based industries
4. Engineering and non-conventional industries
5. Textile industry (including Khadi), and
6. Service industry

Need for Rural Entrepreneurship

The need for developing rural entrepreneurship is to promote rural development in

the country. This is justified as follows:

• Rural industries being labour intensive serve as an antedate to the

widespread problems of rural disguised unemployment and underemployment
stalking the rural areas.

 The development of rural industries by providing jobs to rural unemployed

helps in reducing disparities in income between rural and urban areas.

 These industries promote balanced regional development by dispersing

industries to rural areas. Development of rural industries serves as an
effective means to build up village republics.

• Rural industries also help preserve the age-old rich heritage of the country by
protecting and promoting art and creativity.

 Rural industrialisation fosters economic development in rural areas. This

checks migration from rural to urban areas, on the one hand, and lessens the
disproportionate growth in the cities, reduces growth of slums, social tensions,
and atmospheric pollution, on the other.
• Rural industries also lead to development without destruction of the environment.

Opportunities of Rural Entrepreneurship in India:

The following are the various opportunities of rural entrepreneurship:

1. Supporting from locals: Rural entrepreneurs have a lot of support from the
locals in rural areas. The locals always encourage and give adequate support to the
entrepreneurs.

2. Low Establishment Cost: When compared to the urban areas, rural

entrepreneurs' business establishment cost is very low. There is no. need to
construct huge facilities in terms of infrastructure and buildings

3. Competitive advantages/Availability of labour: In India, seventy percent of the

people are living in the villages. Majority of the people are depending on agriculture
which is seasonal due to which rural entrepreneurs have the competitive advantage
in easily acquiring unskilled and semiskilled labour.

4. Government policies and subsidies: The government of India is continuously

monitoring and introducing new policies for encouraging, rural entrepreneurship.
These policies are very flexible, innovative, liberalized and giving continuous support
to rural entrepreneurs. At the same time, government announces huge subsidies for
promoting rural entrepreneurship.

5. Availability of Raw material: Most of the times, rural entrepreneurs are

depending upon the farm-based products as raw materials, which are available
throughout the year. These raw materials are easily available in rural areas due to
which transportation cost is reduced.

6. Cost of production: The cost of production is very low when compared to the
urban industries. The factors of production are available at low cost and
automatically the cost of production is also low. Because of this, rural entrepreneurs
can sell their goods and services at low prices to consumers.

7. Employment Generation for Rural Youth: Rural entrepreneurs provide jobs for
rural youth, by which, the migration of people to urban from rural regions will be
reduced to a maximum extent.

8. Promotional cost: There promotional expenses are less as compared to urban

entrepreneurship which provides an opportunity in terms of cost for rural
entrepreneurs.

9. Potential Customers: The population in our rural regions can be converted as

potential customers which is a huge opportunity as it is untapped.

10 Building goodwill: Rural entrepreneurs have a lot of scope in building goodwill

in the community and society. Most of the rural entrepreneurs have ethical values
and they are not purely commercial in their mindsets.