Beg 302 Final Sept 17 PDF

BEG-302
BUSINESS
ENTREPRENEURSHIP - VI
M. Com. Part II
Semester III
YASHWANTRAO CHAVAN MAHARASHTRA OPEN UNIVERSITY

Dnyangangotri, Near Gangapur Dam, Nashik 422 222, Maharashtra
YASHWANTRAO CHAVAN MAHARASHTRA OPEN UNIVERSITY
Vice-Chancellor : Prof. E. Vayunandan
Director, School of Commerce & Management : Dr. Pandit Palande
State Level Advisory Committee
Dr. Pandit Palande Dr. Suhas Mahajan Dr. Ashutosh Raravikar
Former Vice Chancellor Former Professor & Director, EDMU,
Director, School of Commerce Research Guide Ministry of Finance
& Management, Ness Wadia College of Commerce New Delhi
Yashwantrao Chavan Maharashtra Pune
Open University, Nashik
Dr. Mahesh Kulkarni Dr. J. F. Patil Prof. V. V. Morajkar

Former Professor & Economist Former Professor
Research Guide Kolhapur B.Y.K. College,
B.Y.K. College, Nashik Nashik
Dr. A. G. Gosavi Dr. Madhuri Sunil Deshpande Dr. Parag Saraf

Professor Professor Director,
Modern College, Swami Ramanand Teerth Marathwada Institute of Management Science
Shivaji Nagar, Pune University, Nanded Pimpri, Pune
Dr. S. V. Kuvalekar Dr. Surendra Patole Dr. Latika Ajitkumar Ajbani

Associate Professor (Finance) and Assistant Professor Assistant Professor
Associate Dean (Training) School of Commerce & Management School of Commerce & Management
National Institute of Bank Management Y.C.M.O.U., Nashik Y.C.M.O.U., Nashik
Pune
Authors Editor Instructional Technology Editing &

Programme Co-ordinator
Dr. Madhuri Sunil Deshpande Dr. Parag Saraf Dr. Latika Ajitkumar Ajbani
Professor, Swami Ramanand Director, Assistant Professor
Teerth Marathwada University Institute of Management School of Commerce & Management
Nanded Science, Pimpri, Pune Y.C.M.Open University, Nashik
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School of Commerce & Management
Y.C.M.Open University, Nashik
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ISBN 978-81-8055-413-1 BEG 302

CONTENTS
M. Com. Part II (Business Entrepreneurship - VI)
Semester III
Contents Pages
Unit 1 : Intrapreneurship or Corprorate Entrepreneurship 8
Unit 2 : Women and Entrepreneurship 25
Unit 3 : Service Entrepreneurship 40
Unit 4 : Rural Entrepreneurship 56
Unit 5 : Social Entrepreneurship 71
Unit 6 : Entrepreneurship and International Business 89
Unit 7 : Youth Entrepreneurship 106
Unit 8 : Family Business and Entrepreneurship 121
Unit 9 : Technopreneurship 139
Unit 10 : Intellectual Property Rights 158
Unit 11 : Profiles of Successful Entrepreneurs - I 176
Unit 12 : Profiles of Successful Entrepreneurs - II 191
Copyright © Yashwantrao Chavan Maharashtra Open University, Nashik.

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INTRODUCTION
Business Entrepreneurship – VIis intended to familiarize students with

emerging trends in entrepreneurship such as intrapreneurship, youth
entrepreneurship, rural entrepreneurship, technopreneurship, social
entrepreneurship, service entrepreneurship. This book also delves into various
issues such as women and entrepreneurship, entrepreneurship and international
business, family business and entrepreneurship and also intellectual property
rights. The aim is to stimulate a curiosity in the students regarding possible
opportunities and prospects in these emerging areas. Then, profiles of
successful entrepreneurs are presented to make reading of the book interesting.
Further, care is taken to enable the students to apply and test the concepts,
thoughts that have been learnt until yet. The students, along with gaining insights
of the discipline, must seekout exposure to real-world practices and issues
which is typically characterized by dynamic and fast paced environment. I
think success of the book lies in exciting its readers to give consideration to
entrepreneurship as an attractive career option to be pursued.
I thank books, the authors for inspiring me to read, internalize,

contemplate, and write further.
I would be happy if feedback and comments/suggestions for

improvement of this book are shared.
With Best Wishes!
Dr. Madhuri Sunil Deshpande

Professor
School of Commerce & Management Sciences
Swami Ramanand Teerth Marathwada University
Nanded
Message from the Vice-Chancellor
Dear Students,
Greetings!!!
I offer cordial welcome to all of you for the Master’s degree programme of Yashwantrao
Chavan Maharashtra Open University.
As a post graduate student, you must have autonomy to learn, have information and knowl-
edge regarding different dimensions in the field of Commerce & Management and at the same
time intellectual development is necessary for application of knowledge wisely. The process of
learning includes appropriate thinking, understanding important points, describing these points
on the basis of experience and observation, explaining them to others by speaking or writing
about them. The science of Education today accepts the principle that it is possible to achieve
excellence and knowledge in this regard.
The syllabus of this course has been structured in this book in such a way, to give you
autonomy to study easily without stirring from home. During, the counseling sessions, scheduled
at your respective study centre, all your doubts will be clarified about the course and you will get
guidance from some experienced and expert professors. This guidance will not only be based on
lectures, but it will also include various techniques such as question-answers, doubt clarification.
We expect your active participation in the contact sessions at the study centre. Our emphasis is
on ‘self study’. If a student learns how to study, he will become independent in learning through-
out life. This course book has been written with the objective of helping in self-study and giving
you autonomy to learn at your convenience.
During this academic year, you have to give assignments and complete the Project work
wherever required. You have to opt for specialization as per programme structure. You will get
experience and joy in personally doing above activities. This will enable you to assess your own
progress and thereby achieve a larger educational objective.
We wish that you will enjoy the courses of Yashwantrao Chavan Maharashtra Open Uni-
versity, emerge successful and very soon become a knowledgeable and honorable Master’s
degree holder of this university.
Best Wishes!
Vice-Chancellor
BUSINESS ENTREPRENEURSHIP - V
M. Com. Part II
NOTES SYLLABUS
Unit 1 : Intrapreneurship or Corprorate Entrepreneurship
Nature of Intrapreneurship, Need for Intrapreneurship, Comparison with Entrepreneurship, Chal-
lenges to Corporate Entrepreneurship, Guidelines for Success of Intrapreneurship, Intrapreneurship
in Indian scenario
Unit 2 : Women and Entrepreneurship

Women Entrepreneurship, Empowerment through Enterprise, Challenges to Women Entrepreneurs,
Development of Women Entrepreneurs, Profiles of Successful Women Entrepreneurs
Unit 3 : Entrepreneurship and Service Sector
Entrepreneurship and Service Sector, Nature and Scope of Service Entrepreneurship, Profiles of
Service Entrepreneurs
Unit 4 : Rural Entrepreneurship

Rural Entrepreneurship, Need for Rural Entrepreneurship, Challenges faced in Rural Entrepreneurship,
Benefits of Rural Entrepreneurship, Role of Government, Profiles of Successful Entrepreneurs
Unit 5: Social Entrepreneurship

Social Entrepreneurship, Ecological Entrepreneurship, Profiles of Successful Entrepreneurs
Unit 6 : Entrepreneurship and International Business

Difference between International and Domestic Entrepreneurship, Importance of International
Entrepreneurship, Entrepreneurial Entry into New International Business, Barriers to International
Trade and Entrepreneurship, Profiles of Global Entrepreneurs
Unit 7 : Youth Entrepreneurship

Youth Unemployment, Youth Entrepreneurship, Profiles of Youth Entrepreneurs
Unit 8 : Family Business and Entrepreneurship
Family Business and Entrepreneurship, History and Evolution, Characteristics, Various Types of
Family Business, Advantages and Disadvantages of Family Business, Succession Planning, Pitfalls
of Succession Planning
Business
6 Entrepreneurship - VI
Unit 9 : Technopreneurship
Meaning, Challenges, Entrepreneurship versus Technopreneurship, Significance of Technopreneurship

and Risk involved, Implications of Technopreneurship and Technology Management, Profiles of
Technopreneurs NOTES
Unit10 : Intellectual Property Rights

Intellectual Property, Intellectual Property Rights (IPR), Copyright, Patents, Trademark, Geographical
Indications, Industrial Design
Unit 11 :Profiles of Successful Entrepreneurs - I

Profiles of Successful Entrepreneurs
Unit 12 : Profiles of Successful Entrepreneurs - II

Profiles of Successful Entrepreneurs
Business
Entrepreneurship - VI 7
Intrapreneurship or
Corporate Entrepreneurship UNIT 1 : INTRAPRENEURSHIP OR
CORPORATE
NOTES ENTREPRENEURSHIP
Structure
1.0 Introduction
1.1 Unit Objectives
1.2 Nature of Intrapreneurship
1.3 Need for Intrapreneurship
1.4 Comparison with Entrepreneurship
1.5 Challenges to Corporate Entrepreneurship
1.6 Guidelines for Success of Intrapreneurship
1.7 Intrapreneurship in Indian Scenario
1.8 Summary
1.9 Key Terms
1.10 Questions and Exercises
1.11 Further Reading
1.0 Introduction
To grow, even to survive in this age of cut-throat competition; businesses
need to be innovative, dynamic and enterprising. To prosper and flourish in competitive
environment, entrepreneurial attitude and mindset is required. Entrepreneurs are
required not only for initiating enterprises, not only in the startup phase of business
enterprises; they are required for established enterprises also for developing winning
strategies to outmaneuver competition and to ensure survival and sustained growth.
The corporate managers need to be entrepreneurial in their approach.
Always they are required to be in search of new opportunities for introduction of
new products/services, for growth, expansion, diversification etc for capturing of
new markets and for retaining their existing markets. They should develop their
risk taking ability. They may not afford to wait for getting up to date, perfect,
complete information for decision making; sometimes they are required to make
decisions even in the face of less than perfect information.
Large corporate houses have to nurture enterprising culture, innovativeness,
learnability, adaptive nature, flexibility and overcome resistance against change.
This spirit of entrepreneurship within an established organization is known as
corporate entrepreneurship or intrapreneurship with the prefix intra denoting ‘inside’
Business
8 Entrepreneurship - VI the organization.
Intrapreneurship or
1.1 Unit Objectives Corporate Entrepreneurship
After going through this unit, you will be able to

• Discuss the concept of intrapreneurship NOTES
• Know the difference between intrapreneurship and entrepreneurship

• Explain the need for and significance of corporate entrepreneuring
• Learn about the practice of intrapreneurship
• Understand the difficulties of corporate entrepreneurship
• Appreciate guidelines for success of corporate entrepreneurship
• Be aware about intrapreneurial practices in Indian industry
1.2 Understanding Strategy and Strategic

Management
“The Macintosh team was what is commonly known as
intrapreneurship; only a few years before the term was coined – a group of
people going, in essence back to the garage, but in a large company” –
Steve Jobs
Several senior executives of big corporations left their jobs to start their
own small businesses since their innovative ideas were not accepted in these
corporations. These new ventures got a big success and many of them provided a
competition to their previous corporations. These executives turned entrepreneurs
came to be known as intrapreneurs. Such corporate brain drain was found to be a
worldwide phenomenon. Industrialists all over the world were concerned about
the phenomenon of intrapreneurship.
Intrapreneurship or corporate entrepreneurship has been in practice in
different forms from several years. In 1982, in an article in the Economist, Norman
Macrae gives credit to Gifford Pinchot III as the inventor of the word ‘intrapreneur’.
Gifford Pinchot wrote his famous book ‘Intrapreneuring’ in 1985 and used the
term ‘intrapreneurs’ to describe the persons who resigned from their well-paid
executive positions to launch their own ventures. Pinchot spoke about a system
that gives the decision to those who get successful results as a result of freeing
them from excessive control and allowing them to work on their own initiative. He
suggested that well-established companies should learn to make use of
entrepreneurial talents within to avoid stagnation and decline. There is a need of
an organization culture which is conducive for entrepreneurship, which would allow
executives to operate like entrepreneurs. The focus is to develop entrepreneurial
spirit within the organization so as to encourage innovation. The executives of the
company should be motivated to be entrepreneurs within the company. They should
be given an environment which would be favourble for their creative and innovative
ideas. They should be given freedom and autonomy which is required for application
of their creative ideas. Pinchot suggested creation of a system which will provide
selected executives a status within the corporation similar to that of an entrepreneur
in society. Risk taking managers enjoy a strong and healthy risk taking culture
with an assurance of security and rewards. Business
Intrapreneurship or Intrapreneurship can be defined as entrepreneurship within an established
Corporate Entrepreneurship organization. It is essentially practiced within an existing enterprise and therefore
it is referred to as ‘intra’preneurship. It is an opportunity for corporate managers
to take initiative and try new ideas. It is characterized by a corporate culture
NOTES which promotes entrepreneurial spirit and a mindset that is free from stereotyped
and fixed patterned thinking. Intrapreneurship is concerned with innovation, initiative,
proactiveness, and new business venturing.
The term intrapreneurship speaks about entrepreneurial behaviour within
medium scale and large organizations. Other commonly used related terms are
corporate entrepreneurship, organizational entrepreneurship, and corporate
venturing.
In the words of Shaker A. Zahra, corporate entrepreneurship may be
formal or informal activities aimed at creating new businesses in established
companies through product and process innovations and market developments.
These activities may take place at the corporate, division (business), functional, or
project levels, with the unifying objective of improving a company’s competitive
position and financial performance”.
William D. Guth and Ari Ginsberg have stressed that corporate
entrepreneurship encompasses two major phenomena: new venture creation within
existing organizations and the transformation of organizations through strategic
renewal.
R. Duane Ireland, Jeffrey G Covin, David Kuratko define a corporate
entrepreneurial strategy as “a vision-directed, organization-wide reliance on
entrepreneurial behavior that purposefully and continuously rejuvenates the
organization and shapes the scope of its operations through the recognition and
exploitation of entrepreneurial opportunity”.
In the words of Marc J. Dollinger, intrapreneurship can be defined as:
• Entrepreneurship within an existing business
• The development within a corporation of internal markets or autonomous
or semi-autonomous business units that produce products, services, or
technologies in a unique way
• An opportunity for corporate managers to take initiative and try new
ideas
• An internal corporate venture
Pramodita Sharma and James J. Chrisman defined corporate
entrepreneurship as a process whereby an individual or a group of individuals, in
association with an existing organization, creates a new organization or instigates
renewal or innovation within the organization. Under this definition, strategic
renewal (which is concerned with organizational renewal involving major strategic
and/or structural changes), innovation (which is concerned with introducing
something new to the marketplace), and corporate venturing (corporate
entrepreneurial efforts that lead to the creation of new business organization within
the corporate organization) are all important and legitimate parts of the corporate
entrepreneurship process.
Intrapreneurial activities involve initiating new businesses for the
organization i.e. corporate venturing. Organizational innovation is based on
Business technological innovation which comprises of product improvement, new product
development, new techniques of production/operations and the like. Self-renewal Intrapreneurship or
is also one of the aspects of intrapreneurship which refines the business concept, Corporate Entrepreneurship
redefines the business definition through organizational change. It reorganizes,
restructures the organization. Pro-activeness is another feature of intrapreneurship
which involves exploitation of environmental opportunities. It may require NOTES
experimentation coupled with risk
Hans Schollhammer describes five types of corporate entrepreneurs –
administrative entrepreneurship, opportunistic entrepreneurship, acquisitive
entrepreneurship, imitative entrepreneurship and incubative entrepreneurship. Each
type of corporate entrepreneurship has a distinctive role as innovator and a strategy
for corporate sponsorship, requiring different supportive environment. Administrative
entrepreneurship is where research and development department acts as a base for
new products and ventures and researchers creating new ideas are charged with
the responsibility of commercializing the same. The corporate philosophy supports
the researchers and makes a provision of adequate resources for commercialization
of new ideas. Opportunistic entrepreneurs enjoy freedom to pursue opportunities
within and outside organizations. They work on ideas generated outside their
organizations and use their corporate strength in adapting and commercializing the Check Your
same. Acquisitive entrepreneurs seek external opportunities in other firms and Progress
entrepreneurial startups. Instead of depending on research and development for 1. — coined the term
growth and diversification; expansion is sought through joint ventures, licensing intrapreneurship.
arrangements, mergers and acquisitions. Instead of making efforts to develop the 2. In your own words,
ideas in the corporate, preference is given to collaborate with others who have good what is corporate
products. Imitative entrepreneurs apply ideas of others for commercial use. In entrepreneurship?
incubative entrepreneurship instead of developing new business venture internally, 3. How would you
the task of commercial development is assigned to a team outside the organization. classify corporate
entrepreneurship?
1.3 Need for Corporate Entrepreneuring

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers.
The round pegs in the square holes. The ones who see things differently….you
can praise them, disagree with them, quote them, disbelieve them, glorify or
vilify them. About the only thing you can’t do is ignore them. Because they
change things. They invent. They imagine. They heal. They explore. They
create. They inspire. They push the human race forward. While some see
them as the crazy ones we see genius. Because, the people who are crazy
enough to think they can change the world are the ones who do”- “Here’s to
the Crazy Ones” The Apple Creed, www.apple.com
There is an increasingly rapid growth in the degree and extent of new and
sophisticated competition. International competition is also increasing with a definite
pace. Traditional methods of management proved ineffective in several cases.
Obviously a move towards improvement of productivity, efficiency, quality,
innovation gained momentum.
Peter Drucker, the renowned management expert, described four major
developments that explain the emergence of this economy. First, the rapid evolution
of knowledge and technology promoted the use of high-tech entrepreneurial start-
ups. Second, demographic trends such as two-wage-earner families, continuing
education of adults, and the aging population added fuel to the proliferation of
newly developing ventures. Third, the venture capital market became an effective
funding mechanism for entrepreneurial ventures. Fourth, American industry began
Business
to learn how to manage entrepreneurship.
Intrapreneurship or More and more corporate strategies are focused heavily on innovation.
Corporate Entrepreneurship This new emphasis on entrepreneurial thinking developed during the entrepreneurial
economy of the 1980s and 1990s. Prior to that, business environment was quite
stable and the need for corporate entrepreneurship was relatively limited. The
NOTES rate of change in the market environment, the speed at which competition arises,
the speed at which markets form or disappear was quite low.
Now many organizations have started realizing the need for corporate
entrepreneuring. Young generation has started getting attracted towards
entrepreneurship as it slowly got social sanction, status in the society along with
the glamour of money making.
In recent years venture capital has grown into a large industry. With
availability of the opportunity of capital funding, many new entrepreneurs are
experimenting their new ideas; ambitious executives are leaving their organizations
and launching their new independent ventures. Bureaucratic large organizations
are worried about their talented, brightest, experienced and senior executives who
are leaving them to become small business owners.
In the light of increasing competition in market, changes in market needs,
consumer preferences, fashions etc; enterprises have to sense and exploit newer
opportunities for ensuring sustained growth. Intrapreneurship enables large
organizations to adapt quickly to the increasingly dynamic and heterogeneous
business environment. It enables the corporations to invest and profit from new
venture creation. It also enables the corporations to diversify from their core base
businesses through internal processes, to conduct market experiments, to establish
new channels of distribution. It is an opportunity to train new managers and leaders.
Check Your Like entrepreneurship, intrapreneurship helps to create entire new
Progress industries. The practice of intrapreneurship enables to bring in the entrepreneurs
who have sold their enterprises to large organizations. Corporate entrepreneurship
4. A strong desire to programs attract entrepreneurial talent by providing them opportunities for personal
develop corporate growth, freedom, autonomy.
entrepreneurs has
arisen in recent years.
What are the reasons? 1.4 Comparison with Entrepreneurship
An entrepreneur is an independent businessman who bears entire risks of
his/her business whereas an intrapreneur is semi-independent and does not fully
bear the risk of his/her business. He/she is dependent on owner of enterprise. An
entrepreneur is real owner of the business. Freedictionary.com defines an entrepreneur
as “a person who organizes, operates and assumes the risk for a business venture”
and an intrapreneur as “a person who while remaining within a larger organization
uses entrepreneurial skills to develop a new product or line of business as a subsidiary
of the organization”. An intrapreneur is from an organization and operates from
within an organization. He/she is inside an organization and facilitates the survival
and prosperity of the organization. An entrepreneur builds an organization to realize
his/her dreams and aspirations. An entrepreneur himself/herself raises funds required
for enterprise. Intrapreneur is not required to raise funds.
Entrepreneurs and intrapreneurs are not very different regarding their
skills, and abilities. However, they are uniquely different regarding their motivations.
Traditional managers are primarily motivated by promotion and other corporate
rewards concerned with office, staff and power. Entrepreneurs are motivated by
Business independence. They look forward to opportunities to create and make money.
12 Entrepreneurship - VI Intrapreneurs are motivated by independence. They are interested in corporate
rewards, advancement in corporate organization. An entrepreneur focuses on his/ Intrapreneurship or
her success, commercial success of a particular idea, product service and an Corporate Entrepreneurship
intrapreneur is focused on the success of an organization.
NOTES
Table 5.1: Comparison between Traditional Managers, Entrepreneurs
and Intrapreneurs
Traditional Managers Entrepreneurs Intrapreneurs
Primary motives Promotion and other Independence, Independence and

traditional corporate opportunity to create and ability to advance in
rewards such as office, make money the corporate
staff and power organization, rewards
Time orientation Short term – meeting Survival and achieving 5 Between

quotas and budgets, to 10 year growth of entrepreneurial and
weekly, monthly, business traditional managers,
quarterly, and annual depending on urgency
planning horizon to meet self-imposed
and corporate
timetables
Activity Delegates and Direct involvement Direct involvement

supervises more than more than delegation
direct involvement
Risk Careful Moderate risk taker Moderate risk taker
Status Concerned about status; Not concerned about Not concerned about
symbols status symbols traditional status
symbols, desires
independence
Failure and Tries to avoid mistakes Deals with mistakes and Attempts to hide risky
mistakes and surprises failures projects from view
until ready
Decisions Usually agrees with Follows dream with Able to get others to
those in upper decisions agree to help achieve
management positions dream
Who serves Others Self and customers Self, customers, and

sponsors
Family history Family members Entrepreneurial small Entrepreneurial small

worked for large business, professional, or business, professional
organizations farm background or farm background Check Your
Progress
Relationship Hierarchy as basic Transactions and deal Transactions within
with others relationship making as basic hierarchy 5.—is from an
relationship organization and
operates from within
Source: Robert D. Hisrich and Michael P. Peters, Entrepreneurship, Tata McGraw Hill, p.48
the organization
(entrepreneur/intra-
preneur)
1.5 Challenges to Corporate Entrepreneurship
Traditional management techniques and practices started losing their
effectiveness in the light of environmental changes. To avoid mistakes, standard
procedures are adopted which may block innovative solutions. Resource
management is generally guided by efficiency and ROI criteria which may result Business
Intrapreneurship or into low market penetration. Instead the focus has to be on critical issues like
Corporate Entrepreneurship market share, customer share etc. Typically management believes in long term
planning and maintaining strict control against plans. Consequently, there is a
possibility of nonviable goals and high failure costs. In the light of situational
NOTES changes, after a regular interval of time; interim milestones should be reassessed
and plans should be modified accordingly. There is a tendency to decision making
on the basis of past experience. Nowadays businesses are in a state of flux always,
so there is a possibility of wrong decisions about competition and markets.
Businesses normally avoid risks to the base businesses and protect them at all
costs. But this skeptical approach may miss opportunities. Instead it is desirable to
take affordable risks and make venturing mainstream. Traditional management
promotes compatible individuals and compensates uniformly which may lead to
loss of innovators, low motivation and inefficient operations. The need of the hour
is a right balance of risk and reward and employing special compensation. In this
way, traditional management techniques when rigidly enforced have adverse effects
and these obstacles should be removed.
The practice of intrapreneurship is not easy. There are several obstacles
to corporate entrepreneuring. Understanding these obstacles is important for
fostering the spirit of intrapreneurship.
Organizational environment may not be conducive for creative, ambitious
people. Respecting the work culture and coming out with a new business design,
model, process, venture is a challenging job for intrapreneurs. Traditional corporate
culture is not favouable for intrapreneurship. It is not encouraging for creativity,
independence, risk taking. On the other hand, it focuses on following set practices
and standards and continuing with the status quo. The employees do not take
initiative. They do not make mistakes. They wait for instructions and follow the
instructions. Fear of failure is another barrier to intrapreneurship.
Corporate bureaucracy is one of the major hurdles for intrapreneurs. Large
organizations have many levels of management. Intrapreneurs have to respect
rules, processes and procedures of the organizations. Rules, regulations and
standards become more important than entrepreneurial behaviour. Approvals and
sanctions needed for intrapreneurial venture route through all these levels on the
basis of rules, regulations, procedures which takes considerable period of time. In
large organizations decision making is through many levels of management hierarchy.
Decision making may get delayed due to this lengthy and tedious journey.
There is dependency on organizational resources for intrapreneurship
projects. There are demands for organizational resources from different divisions,
sections, individuals. Diverting the resources from existing and successful business
units and deploying them for new opportunities is a difficult and challenging task.
It requires risk taking and courage. There is accountability for the use of corporate
resources. The resources required for intrapreneurial venture may be grabbed by
other divisions for the existing, established products of the organization. There is a
possibility of threat of new products to the existing products of the organization
which may invite resistance from the concerned employees who apprehend threat
to their position and status.
Organization employees are more accustomed to working in the existing
business environment and a particular type of work culture. Existing business
priorities can sometimes become a hurdle since intrapreneurship is located within
the settings of established and successful institutions. They work in a formalized
set-up with the constraints of functioning within a hierarchy and a fixed structure.
Business
Entrepreneurship - VI
Need for organizational alignment may pose some problems for intrapreneurs.
14
Organizational employees may not be willing to change their goals, approaches, Intrapreneurship or
behaviours. Their thinking may come in the way to entrepreneurship. Resistance Corporate Entrepreneurship
to change is a normal, natural, obvious reaction to any kind of change. It has to be
managed with proper planning and care.
NOTES
1.6 Guidelines for Success of Intrapreneurship Check Your

Development of a corporate entrepreneurial philosophy leads to growth Progress
and expansion of the organization through creation of new products, services,
processes. It leads towards development of a learning organization which constitutes 6. List some chal-
knowledge workforce. An innovative corporate philosophy promotes a climate lenges that may come
conducive to entrepreneurs and helps the organization motivate and encourage in the way of success-
potential intrapreneurs. What is important is early identification of high achievers.
There is a need to develop an entrepreneurial environment which will help high
ful practice of intrapr-
achievers reach their full potential. Employee perception of an innovative eneurship.
environment is important.
Top management commitment and enduring support is instrumental for
promotion of intrapreneurship. Top managers should ensure that adequate support
is always available to intrapreneurs. They have a significant role in creating an
atmosphere wherein employees are encouraged to innovate, to initiate, to
experiment. Adequate and proper resources should be made available as per the
requirements at right time. The team required by intrapreneurs should consist of
individuals possessing relevant skills who may be from different areas and
disciplines. The organization has to invest money without expecting return on that
investment for a considerable time span. After achieving success, the intrapreneur
has to be rewarded appropriately.
Organizational employees should be made aware and fully convinced about
the benefits of intrapreneurship program. Top bosses should consistently
communicate in the organization about the purpose of intrapreneurship teams, the
kind of support to be provided to the teams by them. The role of management
support in encouraging employees is clearly visible through activities and actions
such as paying attention to promising, innovative ideas of employees, recognition
of entrepreneurial talent, popularizing innovative ideas in the organization, providing
challenges, giving responsibilities, linking rewards to performance etc.
To establish intrapreneuring, organizations need to provide freedom and
encouragement so that intrapreneurs can develop their own innovative ideas. While
providing them freedom; it is needed to set adequate controls and checks to ensure
the right direction, otherwise organization’s routine functioning as well as discipline
would get disturbed. There is a need to examine and revise its management values,
philosophy as well as corporate cultures. Many of the times, it is observed that
organizations are ignorant about their obsolete ideas about management practices,
techniques etc.
While establishing spirit of innovation and intrapreneurship, organizations
promote research and development. There is a significant role of technology which
requires large investment. For developing a new idea, experimentation is encouraged
through trial and errors. Such organizations are ready to tolerate failure also.
Managers need to adapt to the principles of successful innovative companies.
James Brian Quinn, an expert in the innovation field, found the following factors in
large corporations that are successful innovators: atmosphere and vision, orientation Business
to the market, small and flat organizations, multiple approaches, and interactive Entrepreneurship - VI 15
Intrapreneurship or learning. Innovative companies have a clear-cut vision of and the recognized support
Corporate Entrepreneurship for an innovative atmosphere. Innovative companies tie their vision to the realities of
the marketplace. Most innovative companies keep their organizations flat and project
teams small. Innovative managers encourage several projects to proceed in parallel
NOTES development. Within an innovative environment, learning and investigation of ideas
cut across traditional functional lines in the organization.
To stimulate intrapreneurial environment, there is a need of freedom.
Pinchot suggested ‘freedom factors’ as follows:
• The right to appoint oneself as an intrapreneur: Intrapreneurs must have
the right to take initiative themselves. They cannot wait for an offer by
the organization for an intrapreneurial position.
• The right to stay with the venture: Intrapreneurs need the right to continue
with the project and see it through.
• The right to make decisions: Intrapreneurs need the right to make
important and crucial decisions regarding their ventures.
• The right to appropriate corporate slack: Intrapreneurs need discretion
to use a percentage of their budgets, time, and physical resources to
develop new ideas.
• The right to start small: Intrapreneurs need permission to create small
ventures. In due course of time, large projects can be planned on
experimental basis.
• The right to fail: There is a possibility of failure, mistakes. Risk has to be
managed with trial and error. Intrapreneurs should not be punished for
failure.
• The right to take enough time to succeed: Intrapreneurs need sufficient
time to get results. Corporations must be patient with their investment.
• The right to cross borders: Intrapreneurs must cross organizational
boundaries for the sake of getting human and other resources.
• The right to recruit team members: Intrapreneurs need freedom to recruit
for the cross-functional teams needed for their projects.
• The right to choose: Intrapreneus need the freedom to choose their
suppliers, financial sources, customers and personnel.
BOX - 1.1
The Ten Commandments of an Intrapreneur
1. Come to work each day willing to be fired.
2. Circumvent any orders aimed at stopping your dreams.
3. Do any job needed to make your project work, regardless of your
job description.
4. Network with good people to assist you.
5. Build a spirited team: Choose and work with only the best.
Business
6. Work underground as long as you can – publicity triggers the
16 Entrepreneurship - VI corporate immune mechanism.
7. Be loyal and truthful to your sponsors. Intrapreneurship or
Corporate Entrepreneurship
8. Remember it is easier to ask forgiveness than for permission.
9. Be true to your goals, but be realistic about the ways to achieve
them. NOTES
10. Keep the vision strong.

Source: Pinchot Gifford, 1985, Intrapreneuring, Harper Collins Publishers Check Your
Progress
Satish Taneja explains two ways by which intrapreneurs emerge in an
7. Write down few
organization – intrapreneurship either appears as a spontaneous team or is created
principles of innovation
by a formal venture team.
adopted by large cor-
Pinchot has recognized four stages of developing such spontaneous teams: porations.
• Solo phase: In this phase, an individual conceives an innovative idea and

thinks over feasibility of that idea. When he/she is confident about the
potential of the idea, he/she strives for networking.
• Network phase: The innovator shares the innovative idea with others
and seeks advice of experts. He/she looks for sponsors to support the
ideas and provide resources.
• Bootleg phase: The innovator and his/her informal team begins to work
on the idea, seek relevant information and prepares project feasibility
report for getting approval from the corporate management and acquiring
required resources.
• Formal team phase: The team gets the formal corporate approval, a
formal authority to manage the project within the specified budget and
required resources.
Formal venture team is developed through three stages:
• Initiation: With due knowledge and permission of the corporate
management, an innovator works on a new idea. Then he/she forms a Check Your
small team to develop the idea with a formal mechanism and conducts Progress
pre-feasibility study.
8. Enlist the four
• Feasibility study: The intrapreneurial team conducts market research,
stages of developing
develops prototype, test it and prepares detailed project report. The
spontaneous teams for
intrapreneurship
1.7 Intrapreneurship in Indian Scenario

Traditional Indian economy was entrepreneurial in nature. It consisted of
economically self-sufficient villages. It was characterized by balutedary system
consisting of twelve different occupations. The artisans continued with the same
occupations from generation to generation. They used to develop expertise in the
profession by engaging in continuous innovation, and experimentation and strengthen
the knowledge base and improve the skills. In artisan families, the head of the
family used to play the role of mentor. Family head and senior elderly family
members used to counsel the others as and when needed. Some castes were
more enterprising than the others. In such enterprising castes, people used to get
training in the family profession right from the early childhood. Such communities
Business
provide strong support and back up to the other community members for their
Intrapreneurship or business ventures. The wide diversity, versatility and multi culturism, typical of
Corporate Entrepreneurship Indian society, supports entrepreneurship in a big way.
Indian corporate has realized the role of innovation and entrepreneurship.
They deal with research and development in a systematic manner. They also seek
NOTES
innovation from laboratories, through collaborations, joint ventures, franchise
arrangement, by encouraging and supporting their own employees. They appreciate
their employees regarding their creativity and innovation in several different ways.
They create organization culture and processes so as to facilitate innovation. They
strive to enable employees to change their mindset from being an employee to
being an entrepreneur.
Mr. Ratan Tata has committed a separate fund to support employees’
creativity and innovation efforts. He encourages everyone to keep up the spirit of
enterprise and innovation, to remain competitive. He urges everyone not to be
complacent about success and keep on setting high target and not overlook high
ideologies mission and vision of the group. He focuses on empowering the youth
to dream and harnessing the power of the dreams and ideas. He strongly believes
that the efforts will definitely fetch success in the future even though they may not
bring results immediately. Tata group of companies execute several initiatives for
nurturing innovation. The group celebrates ‘Tata Innovation Day’ to appreciate
and encourage innovations in three categories: leading edge innovations, dare to
try, and promising innovations. Leading edge innovations are the most innovative
business ideas for the future. Dare to try category is for attempting novel ideas
which may not succeed in execution. Promising innovations are those which are
successfully implemented. Through these awards, it is attempted to imbibe a concern
for quality, reliability and the urge to innovate. It helps key customers and TCS
researchers to collaborate on research toward specific solutions. Innovation Forums
are held annually to bring thought leaders and researchers from academia, start-
ups and customers together for creating value through shared experiences. F. C.
Kohli, ex-chairman Tata Consultancy Services (TCS) sensed the potential of
outsourcing and this led to the creation of the company years ahead of the others.
TCS is the pioneer in software R & D. It has an innovative environment and
culture. TCS has awards for young innovators, coding competitions, research
workshops, and conferences. TCS runs several innovation centres in which
innovations are developed, incubated and piloted with corporate support. Nano,
the low cost family car and an engineering masterpiece, is the Tata Motor’s
disruptive innovation strategy. Tata Business Excellence Model (TBEM) measures
excellence in Tata group companies. Leadership is allocated the highest scores.
Tatas are known for ‘healthy work environment’ which empower employees to
reach their full potential. Tata Management Training Centre imparts latest
knowledge and skills among practicing mangers, facilitates attitudinal and
behavioural changes, helps to derive solutions for organizational issues and institutes
learning organizations. In 2009, Tata Consultancy Services (TCS) was disaggregated
into 23 small units. Each unit was run as an independent company under the TCS
banner and had its own CEO, CFO and an HR head. TCS has shown its interest
in ‘Talent Pool Generation’. HCL Technologies’
Kalyani group emphasizes on market leadership through technology and
its strong human resources. The core values of the group are conviction, courage
and commitment to excellence. Mr. B. N. Kalyani says “Innovation has always
been a driving force at Kalyani. It is something that has always been inherent in
our corporate culture our processes and our values – a constant, unending
commitment to excellence and innovation”. The tagline ‘Driving Innovation’ signifies
Business the group’s conviction, courage and commitment to unending excellence and
innovation and belief in using mind power. The company’s HR philosophy says, Intrapreneurship or
“We are people oriented. Training empowerment and fostering team spirit are Corporate Entrepreneurship
means through which our talented employees can unleash their creativity for the
benefit of the organization and its customers”.
NOTES
Vineet Nayar has shown his concern to place employees before even the
customers.
Ramkrishna Bajaj National Quality Award motivates and enables
organizations to strive for excellence in terms of world-class standards.
Praj Industries Ltd. is a knowledge based company with expertise and
experience in bioprocesses and engineering which offers innovative solutions. It
believes that intrapreneurs support innovative contributions of the entrepreneurs in a
significant manner. The Maha-Intrapreneur Award 2015 is instituted by Praj Industries
Ltd. to promote intrapreneurship. In association with Symbiosis International University
(SIU), Pune. The Maha-Intrapreneur Award endeavours to recognize individuals
with intrapreneurial skills within companies. This award identifies and rewards to
professionals who display intrapreneurial qualities in their organizations through their
actions and decisions. Pramod Chaudhari, chairman of Praj Group says, “While
entrepreneurs create new businesses, we require professionals who display a high
level of entrepreneurial qualities while in service as well as the same passion and
leadership qualities as any entrepreneur. The term ‘intapreneurship’ has not received
as much recognition as it should. Entrepreneurship and intrapreneurship are
complimentary concepts that put innovative ideas to work thereby promoting growth
and transformation in any enterprise or society. The difference lies only in the degree
and form of risk-taking”.
Tech Mahindra pursues innovation as a business model with the help of
Capability Solution Units (CSUs). CSUs, comprised of experienced consultants
and architects from telecommunications industry and labs, are dedicated to certain
key technological areas as well as to map the technology to business/client needs.
Tech Mahindra believes in thought leadership and provides various forums to its
employees to keep them updated with the industry developments. It has also
partnered with Intel for its “Next Generation Telecom Solutions Lab”. Tech
Mahindra’s lab Idea Factory generates software and service. It organizes an annual
contest “Ignite Innovation” the winners of which present their ideas to top
management in a Management Summit. Mahindra group brings the employees
together to share their ideas and knowledge. The group allows the employees to
take out time from work and think about new ideas.
Kotak Mahindra is one of the fastest growing insurance companies in
India. Its mission is: “to focus on the needs of customers and create confidence,
trust and loyalty by offering a wide range of innovative insurance solutions.
Strengthened by commitment to professional management, they ensure the
continued growth and advancement of their employees”. The company believes
in long-term partnership with the employees and provides them stimulating work
environment; and space to grow, innovate and develop their career. The vision of
Kotak Life Insurance speaks about a deep rooted commitment to improve the
quality of life of customers, employees and stakeholders with an aim of improving
the long term value in their relationship by continuous innovation and improvements.
Kirloskar group has developed an image as a cost competitive producer
of high quality products with an impressive record of exports. The group strongly
believes in experience, expertise, quality, innovation and values in the business and
creating a new industrial order. The motto of the group is: “Invent before time, Business
Intrapreneurship or provide before it is needed and give life the cushion it needs”. All the Group
Corporate Entrepreneurship companies are ISO 9001 certified and some are ISO 14001 and QS 9000 certified.
Thermax India Ltd. considers that the biggest challenge is to survive and
innovate. The top provides support for creating innovation culture. For survival and
NOTES
innovation, it is needed to influence perception and behaviour of employees.
Employees are given freedom for idea generation. There is a focus on young managers
at lower levels since they deal directly with customers. The company believes in
idea generation and human resource skills. It is an inspiring task to make people
from different backgrounds to work together for a common purpose. The company
celebrates Technology day. The company deals with innovation not only in technology
or products but in all business activities at all levels. It nurtures promising ideas and
converts ideas into products/services. The needed support is provided by the company.
The company has invested in an ambitious Research, Technology, and Innovation
Centre (RTIC). Innovation council of experts guides the centre with a focus on
collaborative research, new technology. RTIC has five centres of excellence to
promote innovative work in diverse areas of energy and environment.
1.8 Summary
Intrapreneurship is the practice of entrepreneurship within an existing
enterprise. It refers to entrepreneurial activities that are supported by the
organizations with necessary resources, existing knowledge base and infrastructural
support. For retaining entrepreneurial talent, intrapreneurial culture allows
executives to operate like entrepreneurs within organizational boundaries. These
executives have a desire of personal achievement, independence, career
advancement, power etc. They are moderate risk takers. They enjoy their work.
They are ready to put extra efforts, time as well as energy, when required.
Large corporate houses have to nurture enterprising culture, innovativeness,
learnability, adaptive nature, flexibility and overcome resistance against change. This
spirit of entrepreneurship within an established organization is known as corporate
entrepreneurship, corporate venturing, organizational entrepreneurship, or
intrapreneurship with the prefix intra denoting ‘inside’ the organization. Intrapreneurship
denotes an internal corporate venture. It offers an opportunity for corporate managers
to take initiative and try new ideas. It is concerned with the development within a
corporation of internal markets or autonomous or semi-autonomous business units that
produce products, services or technologies in a unique way.
Hans Schollhammer describes five types of corporate entrepreneurs –
administrative entrepreneurship, opportunistic entrepreneurship, acquisitive
entrepreneurship, imitative entrepreneurship and incubative entrepreneurship. Each
type of corporate entrepreneurship has a distinctive role as innovator and a strategy
for corporate sponsorship, requiring different supportive environment. Administrative
entrepreneurship is where research and development department acts as a base for
new products and ventures and researchers creating new ideas are charged with
the responsibility of commercializing the same. The corporate philosophy supports
the researchers and makes a provision of adequate resources for commercialization
of new ideas. Opportunistic entrepreneurs enjoy freedom to pursue opportunities
within and outside organizations. They work on ideas generated outside their
organizations and use their corporate strength in adapting and commercializing the
same. Acquisitive entrepreneurs seek external opportunities in other firms and
entrepreneurial startups. Instead of depending on research and development for
Business
growth and diversification; expansion is sought through joint ventures, licensing
arrangements, mergers and acquisitions. Instead of making efforts to develop the Intrapreneurship or
ideas in the corporate, preference is given to collaborate with others who have good Corporate Entrepreneurship
products. Imitative entrepreneurs apply ideas of others for commercial use. In
incubative entrepreneurship instead of developing new business venture internally,
the task of commercial development is assigned to a team outside the organization. NOTES
An entrepreneur is an independent businessman who bears entire risks of
his/her business whereas an intrapreneur is semi-independent and does not fully
bear the risk of his/her business. He/she is dependent on owner of enterprise. An
entrepreneur is real owner of the business. Entrepreneurs and intrapreneurs are
not very different regarding their skills, and abilities. However, they are uniquely
different regarding their motivations.
Intrapreneurial culture is quite different from traditional corporate culture.
Intrapreneurial culture facilitates innovation. It encourages creativity and risk taking
behaviour. It allows organizations to tap innovative talents of their executives and
harness it for the betterment of organizations. Top management commitment and
enduring support is instrumental for promotion of intrapreneurship. Top bosses
should consistently communicate in the organization about the purpose of
intrapreneurship teams, the kind of support to be provided to the teams by them.
To establish intrapreneuring, organizations need to provide freedom and
encouragement so that intrapreneurs can develop their own innovative ideas. While
establishing spirit of innovation and intrapreneurship, organizations promote
research and development.
In the light of increasing competition in market, changes in market needs,
consumer preferences, fashions etc; enterprises have to sense and exploit newer
opportunities for ensuring sustained growth. Intrapreneurship enables large
organizations to adapt quickly to the increasingly dynamic and heterogeneous
business environment. It enables the corporations to invest and profit from new
venture creation. It also enables the corporations to diversify from their core base
businesses through internal processes, to conduct market experiments, to establish
new channels of distribution. It is an opportunity to train new managers and leaders.
Indian corporate has realized the role of innovation and entrepreneurship.
They deal with research and development in a systematic manner. They also seek
innovation from laboratories, through collaborations, joint ventures, franchise
arrangement, by encouraging and supporting their own employees. They appreciate
their employees regarding their creativity and innovation in several different ways.
They create organization culture and processes so as to facilitate innovation. They
strive to enable employees to change their mindset from being an employee to
being an entrepreneur.
1.9 Key Terms

• Bureaucracy: Management or administration marked by hierarchical
authority among numerous offices and by fixed procedures, an
administrative system in which the need or inclination to follow rigid or
complex procedures impedes effective action
• Intrapreneur: An individual who drives positive change within an existing
organization or business
Business
Intrapreneurship or
Corporate Entrepreneurship 1.10 Questions and Exercises
Questions
NOTES 1. How does intrapreneurial culture differ from traditional corporate culture?
2. What qualities should you possess to be a successful entrepreneur?
3. What is the difference between traditional and intrapreneurial managers?
What qualities should be possessed by a manager to be a successful
intrapreneur?
4. What is intrapreneurship and why is it required?
5. Discuss various obstacles that must be overcome to establish a corporate
entrepreneurial environment.
6. Describe the elements that are involved in sustaining corporate
entrepreneurship.
7. What are the advantages of developing an intrapreneurial philosophy?
8. Differentiate between the practice of entrepreneurship and
intrapreneurship highlighting their personality traits, motivators and
challenges.
9. How organizations promote intrapreneurial cultures? Discuss.
10. How would you classify corporate intrapreneurship?
Exercise
1. Choose any corporate of your choice and study the efforts of the company
for the practice of intrapreneurship.
Multiple Choice Questions
1. ———— used the term ‘intrapreneurs’ to describe the persons who
resigned from their well-paid executive positions to launch their own
ventures
i. Gifford Pinchot III
ii. Norman Macrae
iii. James Brian Quinn
iv. None of the above
2. Pinchot spoke about —————
i. A system that gives the decision to those who get successful results
as a result of freeing them from excessive control and allowing
them to work on their own initiative
ii. The need that well-established companies should learn to make
use of entrepreneurial talents within to avoid stagnation and decline
iii. Both i and ii
Business
3. Which one of the following is concerned with intrapreneurship? Intrapreneurship or
i. It is an opportunity for corporate managers to take initiative and try
new ideas
ii. It is characterized by a corporate culture which promotes NOTES
entrepreneurial spirit and a mindset that is free from stereotyped
and fixed patterned thinking.
iii. Intrapreneurship is concerned with innovation, initiative,
proactiveness, and new business venturing.
iv. All the above
4. Which one of the following is associated with intrapreneurship?
i. Entrepreneurship within an existing business
ii. An opportunity for corporate managers to take initiative and try
new ideas
iii. An internal corporate venture
iv. All the above
5. Which one of the following is an important and legitimate part of the
corporate entrepreneurship process?
i. Strategic renewal
ii. Innovation
iii. Corporate venturing
iv. All the above
6. Pick the odd one out:
i. Administrative entrepreneurs apply ideas of others for commercial
use
ii. In incubative entrepreneurship instead of developing new business
venture internally, the task of commercial development is assigned
to a team outside the organization
iii. Acquisitive entrepreneurs seek external opportunities in other firms
and entrepreneurial startups
iv. Opportunistic entrepreneurs enjoy freedom to pursue opportunities
within and outside organizations
7. Which one of the following is a successful innovator suggested by James
Brian Quinn?
i. Interactive learning
ii. The right to make decisions
iii. The right to stay with the venture
iv. The right to appoint oneself as an intrapreneur
Business
Intrapreneurship or 8. Which one of the following is the freedom factor suggested by Pinchot?
i. The right to fail
ii. The right to start small
NOTES
iii. The right to make decisions
iv. All the above
Answers
Check Your Progress
1. Gifford Pinchot III
5. intrapreneur
1. i
2. iii
3. iv
4. iv
5. iv
6. i
7. i
8. iv

Dollinger Mark J., Entrepreneurship Strategies and Resources, Pearson
Education, Delhi, 2004.
http://shodhganga.inflibnet.ac.in/bitstream/10603/85139/10/
10_chapter2.pdf
Kuratko Donald F., Hodgetts Richard M., Entrepreneurship in the new
Millennium, Cengage Learning, New Delhi, 2011.
Raj Shankar, Entrepreneurship Theory and Practice, Tata McGraw Hill
Education, Noida, 2012.
Taneja Satish, Entrepreneurship Development, Himalaya Publishing
House, Mumbai, 2010
www.mahaintrapreneur.com
Business
Women and
UNIT 2 : WOMEN AND Entrepreneurship
ENTREPRENEURSHIP
NOTES
Structure
2.0 Introduction
2.1 Unit Objectives
2.2 Women Entrepreneurship
2.3 Empowerment through Enterprise
2.4 Challenges to Women Entrepreneurs
2.5 Development of Women Entrepreneurs
2.6 Profiles of Successful Women Entrepreneurs
2.6.1 Kalyani Hurne
2.6.2 Vishakha Deshpande
2.6.3 Surekha Kate
2.7 Summary
2.8 Key Terms
2.0 Introduction
“When women move forward, the family moves, the village moves
and the nation moves” - Pandit Jawaharlal Nehru
Our country has been facing the problem of unemployment. In government
sector, new recruitment has been significantly on a decline. Liberalization,
privatization, globalization further aggravated the issue of unemployment. There is
a problem of surplus staff, casual workers, contractual services also related with
unemployment. In the face of such issues and problems, entrepreneurship is the
only viable strategy.
In our country, entrepreneurship is dominated by men. The participation
of women has been negligible. A study of entrepreneurship of small scale industries
of Marathwada region conducted in late 1970s by Manohar U. Deshpande is
based on a survey of 90 entrepreneurs. The study consisted of men only. There
was not a single woman. However, over a period of time, a change has been
taking place in the scenario. In last few decades, increasingly more and more
women are entering in entrepreneurship. They have been playing a crucial role in
economic development and growth.
Business
Women and Industrialization and urbanization caused a major change in the status of
Entrepreneurship women. Spread of education is one of the major factors for bringing about this
change. With education, women got exposure to the outside world. Social legislation
for protection and welfare of women, and government support in the form of
NOTES favourable policies and schemes motivated women to pursue entrepreneurship.
Further, globalization, liberalization, digitization brought about a drastic change in
the life style and status of people. Women increasingly felt the need to earn and
support the family. Due to inflationary pressures, it was not easy to maintain standard
of living. She started finding out the ways to earn. There were several barriers for
her to work beyond the boundaries of her home. It was difficult to find a suitable
job. In the face of the gravity of the unemployment problem, the suitable options
for women are entrepreneurship and self-employment.
The development of a country is possible only when women who constitute
half of the human resources participate in the process of national development.
Women’s participation in the economic progress and consequently in national
development is desirable from the view of human resource development. Also it
raises the status of women in family and also in society. To raise their status in
home and also in society, there is a need of empowerment. This can be achieved
through self-employment and through entrepreneurship.
Women entrepreneurship is an effective approach towards economic
empowerment of women. Being the owner and decision maker, a woman
entrepreneur becomes economically powerful which improves her social status.
She finds self-employment through entrepreneurship and creates employment for
others in the society in a gainful manner. It contributes to a balanced and accelerated
economic growth.
2.1 Unit Objectives

• Know the meaning of women entrepreneurship
• Explain the concept of women entrepreneurs
• Discuss the benefits of women entrepreneurship
• Be aware about challenges to women entrepreneurs
• Realize rise of women entrepreneurs in business
• Give an account of development of women entrepreneurs in India
• Learn about some case studies of successful women entrepreneu
2.2 Women Entrepreneurship

“There is no chance for the welfare of the world unless the condition of
women is improved, it is not possible for a bird to fly on only one wing” – Swami
Vivekanand
Entrepreneurship has been attracting attention of administrators, policy
makers, academicians as well as businessmen. The term is associated with self-
Business employment, creation of new enterprises. It is an economic activity which is
undertaken by an individual or a group of individuals. It is concerned with perception Women and
of new and attractive business opportunities, development of feasible business Entrepreneurship
ideas, assumption of business risks for initiation and development of a new business
venture for converting business ideas into products/services.
NOTES
Women entrepreneurship is the process where women dream of a business
enterprise, initiate it, organize factors of production, and manage the enterprise even
in the face of risk and uncertainty. Women entrepreneurs can be defined as a woman
or a group of women who initiate, organize, and operate a business enterprise.
According to Government of India, a woman enterprise is defined as an
enterprise owned and controlled by a woman and having a minimum financial
interest of 51 per cent of the capital and giving at least 51 per cent of the employment
generated in the enterprise to women.
According to Schumpeter, an entrepreneur is an innovating individual who
introduces something new into the economy. Any woman (or a group of women),
who innovates, initiates or adapts an economic activity may be called a women
entrepreneur.
Kamla Singh defines a woman entrepreneur as a confident, innovative
and creative woman capable of achieving self-economic independence individually
or in collaboration, generates employment opportunities for others through initiating,
establishing and running an enterprise by keeping pace with the personal, family
and social life.
According to Medha Dubhashi Vinze, a woman entrepreneur is a person
who is an enterprising individual with an eye for opportunities and an uncanny vision,
commercial acumen, with tremendous perseverance and above all a person who is Check Your
willing to take risk with the unknown, because of the adventurous spirit she possesses. Progress
1. Who is a woman
In the view of the author, woman entrepreneur is the one who deviates
entrepreneur?
from her traditional and sole role of Nurser, Carer and Rearer; one who goes
beyond this set role is a woman entrepreneur. Woman entrepreneur is self-employed
and creates employment opportunities for others. She is actively involved in initiating,
organizing and managing her enterprise and getting attractive returns out of these
activities.
In this manner, women entrepreneurs are the women who dream of a
business enterprise, initiate it, organize the factors of production, run it and undertake
risk and tackle uncertainty in managing it.
Check Your
Women entrepreneurs may be classified in different types. Some women
Progress
entrepreneurs are highly educated and professionally qualified. They are efficient
2. — women
and dynamic. They take initiative and they are interested in growth, expansion and
entrepreneurs are
diversification. There are some women entrepreneurs who may not be educated
those women
but they are equipped with some skills which are required for small enterprises.
entrepreneurs who
Some women entrepreneurs work specially for women from economically back-
hail from rich business
ward segment of the society. Affluent women entrepreneurs are those women
families
entrepreneurs who hail from rich business families. Innovative entrepreneurs deal
3. — are the women
with business to challenge conventional assumptions about social position of women.
who see their business
Radicals-proprietors are the women who are active in economic and political ven-
as secondary to their
tures that strongly promote female issues. Conventional are the women who do
role as mothers or
not necessarily present resentment about limited career opportunities in previous
wives etc
jobs. Domestics are the women who see their business as secondary to their role
as mothers or wives etc.
Business
Women and
Entrepreneurship 2.3 Empowerment through Enterprise
“In order to awaken the people it is the women who have to be
awakened. Once she is on move, the family moves, the village moves, and the
NOTES
nation moves” – Pandit Jawaharlal Nehru
The term empowerment is widely used in the context of ‘development’
particularly with reference to development of women. To empower means to
bestow power. It is a social process. It helps people to gain control over their own
lives in relationship with others. Empowerment of women implies creating conditions
to motivate and facilitate women to undertake a task and to unleash their talent
and potential to fulfill the objectives.
Women empowerment implies that women have the power or capacity to
regulate their day to day lives in the social, political and economic terms. It refers
to the ability of a person to interpret his/her situation and makes informed choices
and decisions affecting oneself, family and community.
Empowerment encompasses access to options, information, education and
resources decision making power and authority; and control over one’s life. Women
empowerment refers to empowering women to be independent by providing them
access to various opportunities and freedom which were denied to them until yet
due to their womanhood. It enhances their position and status in the power hierarchy
in the society.
Empowerment is a multi-faceted concept which comprises many
perspectives such as social, economic, psychological as well as political. Social
empowerment is a process of gender sensitization and inculcating a feeling of
equality without any discrimination of gender in day to day routine matters. Economic
empowerment is associated with freedom and capability in income generation and
access to assets and resources. Psychological empowerment refers to participation
in decision making, high self-esteem and improved self-confidence. Political
empowerment is about active participation in various decisions and actions in
meetings and familiarity with roles and duties.
Economic empowerment enables women to retain income and use it at
their discretion. It means freedom to financial resources. It provides equal access
and control over various resources at the household. In the opinion of D. Ramesh
the success of women development depends on their capacity enhancement which
in turn depends on better awareness of health, education environment, legal rights
improving financial literacy and numeracy, better communication skills and better
leadership capabilities. K. Prabhakar Rajkumar talks about indirect indicators of
empowerment as differences between spouses in education, occupation, age, and
earning whereas, involvement in decision making, freedom of movement and access
to money are direct indicators. Manpreet Kaur says, women’s empowerment status
is assessed by their economic, educational and health status, participation in
household decision making process, political awareness and psychological strength.
Empowerment of women is associated with personal rights, economic opportunity,
and social equality. An empowered woman has a positive self-image. She has
greater access to knowledge, assets and resources. She exhibits greater ability to
overcome the restrictions imposed on her by tradition, customs, beliefs etc.
There is a close relationship between women empowerment and
entrepreneurship. Women entrepreneurship enables women gain economic
Business independence. With economic independence, women are automatically empowered.
28 Entrepreneurship - VI Their social status is improved. The economic status of women is now accepted
as an indicator of stage and state of society development. As the saying goes, Women and
“where women are honoured and treated well, the Gods reside”. The prosperity Entrepreneurship
of a country depends upon equal opportunities it offers to its women population.
The government is framing policies for development of entrepreneurship
NOTES
among women. When women are given opportunities for economic independence
and income generation then their low status in the society will be raised. When
women are given opportunities, then their creativity, productivity and potential
could be utilized. They get some relaxation and deviation from monotony of routine
tasks. When women population receives equal opportunities, then the nation will
definitely prosper. From human resource point of view, participation of women in
Check Your
the economic activities is a must. Entrepreneurship gives women better status and
Progress
position in her family. It provides her an outlet for her energy, creativity. Her
4. State the meaning
family members treat her as an independent entity. They realize and appreciate
of empowerment.
her abilities and her contribution for betterment of family.
2.4 Challenges to Women Entrepreneurs

“Enjoy being a woman. Hardship does not observe gender
differences. Problems occur in every individual life cycle, regardless of what
sex you belong to. The trick is to smile your way through adversity. Women
often do this better than men”. –Jyoti Sabharwal
The Oxfam Gender Training Manual observes, “It is said that people are
born female or male, but learn to be girls and boys who grow into women and men.
They are taught what the appropriate behaviour, attitudes, roles and activities are for
them and how they should relate to other people. This learned behaviour makes up
gender identity and determines gender roles”. S. Chakravarty notes, “The biological
differences, particularly the reproductive functions of women, which probably reflect
the need for them to be cared, nurtured and protected by them so that they can
attend to the household and rear children and care for the elderly, has over generations
of patriarchy, degenerated into unfair sexual division of labour and has led to the
implications that women need to be protected because they are physically weak;
they need to be provided for because they are dependent; they are incapable of
taking decisions, because they are governed by emotions; they are not educated
because they are suited to performing routine, repetitive tasks; they cannot become
good leaders because they are submissive; their mobility is restricted because they
bear children; they are ruled by the heart and not the head, and not the head, and ,
therefore, should be confined to the non-managerial domain”.
Typically from time immemorial women remain dependent on men for
sustenance and security. Social practices based on religion and customs have
placed women as inferior and subordinate to men. Girls have been taught to depend
on others, to avoid exposure and risk. Being in the protected and isolated
atmosphere, women do not feel confident. They fear to accept risk, challenges,
new responsibilities which make them away from the spirit of entrepreneurship.
In the opinion of Pinakin R. Sheth, “Experts in the behavioural sciences
maintain that the greatest barrier to women’s success in the business world is their
perception of themselves. Their sense of self-worth is such that they do not recognize
their capabilities and potential, as a result, their efforts in the workplace are limited”.
Girls are often made conscious of gender differences, do’s and don’ts and
then they begin to believe it and it contributes to their low self-esteem. Low self- Business
esteem develops negative attitudes and it restricts such persons to venture into Entrepreneurship - VI 29
Women and entrepreneurial careers. In the words of Gulab Singh Azad, “Whole socialization
Entrepreneurship process for women make them fearful of failure, doubtful of success and reluctant
to take risk and makes her unfit for pursuing entrepreneurial career. This is how girls
are socialized in such a way that their values, personality get influenced to choose
NOTES non-entrepreneurial roles and the attitudes needed for taking entrepreneurial careers
do not get developed”. Socialization of girls do not encourage personality traits like
self-confidence need for achievement, independence, inclination towards risk taking
etc which enables a person to sense an opportunity, and convert it into actual reality.
Our society is still male-dominated and women are in a disadvantageous
position. Women are not treated as equal to men both in the house and outside the
house. They are treated as weak and dependent on men. Typically in a traditional
society like ours, men are considered to be the primary income earners. Women are
supposed to be supplementary earning members. Majority of the women
entrepreneurs enter into business primarily through force or they are driven by need.
Women face social as well as cultural constraints. Boys receive all the
care and attention and all the opportunities, resources whereas women are deprived
of such type of care and attention. They tend to have low level of formal education,
high rate of illiteracy. Being less educated and economically dependent, women
have low risk-bearing ability.
Majority of the problems of women entrepreneurs relate to their
womanhood. They prefer to work at home or near home. Working from home and
limited mobility put limitations in accessing markets. Their energy, time, attention
is divided between enterprise work and domestic work. There are limitations on
their mobility. They are not permitted to move freely outside their home, to visit
market. They have to depend on their family members for external work. They
have to depend on middlemen, agent which may lead to exploitation. Lack of
mobility, limited mobility affects the income of the women enterprises. They depend
on someone for work orders. Due to limited market, knowledge and inability to
interact independently with the customers, they are at a disadvantage.
Women often have limited access to formal credit. Typically they suffer
from the problem of finance. Their own savings are meager. They do not have
property on their names. In that case, they cannot borrow money on the basis of
collateral. Financing agencies do not consider them credit-worthy.
In addition to the specific problems relating to their womanhood, women
entrepreneurs face another set of problems which generally all entrepreneurs face
Check Your such as socio-economic constraints, social attitude, low need for achievement,
Progress shortage of power, demand and price fluctuations, high cost of production,
State whether the fol- inadequate infrastructural facilities.
lowing is true or false:
5. Majority of the
problems of women 2.5 Development of Women Entrepreneurs
entrepreneurs relate to
“You are our daughter, you would be a wife, a mother, a daughter-in-
their womanhood law. You will have to maintain these essential relationships, fulfill your
responsibilities as you grow. But a word of advice, keep a space for you as a
person. Think about what you are, what you want to be, what your personal
raison de etre for living is. What interests you, what pleases you, do that. Keep
a time and space for yourself in your life. For, you are an individual, a human
being and not just someone’s wife, mother and daughter. I would want you to
Business think about this”. – “Do Raha”, Javed Akhtar, the Urdu lyricist and writer
The phenomenon of women entrepreneurship started in the 1970s. Further, it Women and
gained momentum with the advent of women’s decade from 1975 to 1985. Thereafter, Entrepreneurship
women entrepreneurs were seen in metropolitan cities and state capitals and now in
this 21st century, the spirit of entrepreneurship is spreading all over the country.
NOTES
Initially women entrepreneurship was seen as an extension of their kitchen
activities mainly to 3 PS i.e. Pickles, Powder and Papad. Now with spread of
education, increasing awareness about entrepreneurship among girls, women and
society and government measures for promotion of entrepreneurship; there is a shift
of women in business from 3Ps to 3 Es i.e. Engineering, Electronics and Energy.
Government and financial institutions are playing a significant role in
creation of proper industrial environment. In the regulatory role, the government
may determine the conditions under which entrepreneur may enter certain lines of
business as in the granting of a charter, or permitting entrepreneurs to use any
public facilities or resources. Government controls the relationship between various
segments of the economy. It prevents undue concentration of economic power in
the hands of enterprises. Public control may be in the form of ceiling on dividend,
limitation of public utility profits etc. in the promotional role the state has to assume
direct responsibility to build up and strengthen necessary developmental
infrastructures such as power, transport, finance, marketing etc; and also making
the provision of various fiscal, monetary and other incentives. Planning role of
government is important so as to ensure optimum allocation of scarce resources
Check Your
Progress
2.6 Profiles of Successful Women Entrepreneurs 6. Initially women en-
trepreneurship was
Profiles of some successful women entrepreneurs are presented below: seen as an extension
of their kitchen activi-
2.6.1 Kalyani Koyate Hurne ties mainly to 3 Ps i.e.
—
Proprietor, Glitz Beauty Parlour, Nanded 7. There is a shift of
women in business
Kalyani was born to Mr. Omprakash Koyate and Mrs. Suhasini Koyate
from 3 Ps to 3 Es i.e. -
on 14th January 1977 at Kopargaon in Amhmednagar district. She was brought up
in a joint family and got a good nurture. “Kalyani’ means auspicious, beautiful.
Her grandmother and her aunt used to say that she would bring good fortune and
happiness wherever she would go.
Her family was not rich at that time. Her father, mother, and her
grandmother worked very hard and they achieved success. They were engaged
with different activities and businesses. At the same time, her father was actively
involved in social work. Later on, her mother also joined him for social work. This
had a deep impact on Kalyani.
Being from a cultured family, Kayani got a good rearing and was enriched
with good experiences and influences. Regarding her dreams, she had moderate
ambitions about future. Her ideas about future comprised of getting married, having
fun and enjoyment with husband and other family members. She never planned
about a job or thought of earning money. She was an average student. However,
she used to take interest in learning many skills and activities. She took pleasure in
rangoli, handicrafts. She had an inclination for driving. She used to drive various
vehicles including car, tractor etc. She is a person with persistence and persuasion.
While studying in the final year of B. Com., her father started looking for Business
a suitable life partner for her and she got married to Nishant Hurne. Her mother Entrepreneurship - VI 31
Women and unexpectedly became the mayor of Kopargaon one day before the marriage and
Entrepreneurship her marriage was enjoyed by entire Kopargaon. Hurne family had a good standing
in the society. Her parents were very glad since Kayani was happily married in a
big family with a respectable name and fame. Her early married years were
NOTES joyous. Being the eldest daughter in law, she used to shoulder various responsibilities,
and gave justice to family duties, rituals in an efficient manner selflessly without
any expectation. She never had any complaint or grudge of any kind. She used to
help her husband and all other family members wholeheartedly as and when
required. She wanted to follow the footsteps of her mother. However, in due
course of time, she had a realization that people were taking undue advantage of
her innocence and helping nature. She had to seek financial help of her father so
as to meet several exigencies. Anyhow, things were not moving properly and her
family was not happy. She talked about this to her mother as she did not have
courage to talk to his father in those days. Then her parents had a discussion
about her problems with each other. They were helping a number of persons in
the society and they decided to help their daughter and son in law also. With the
consent of Kalyani’s in laws; they established a supermarket at Shrirampur for
the sake of Kalyani and Nishant. However, due to some reasons, this venture
could not succeed. The couple went back to Nanded. In the meanwhile, they
were blessed with two beautiful girls – Mukta and Sakshi. Now Kalyani decided
to do something for her family in Nanded. It was difficult to take care of two
daughters in the struggling phase. She requested her parents to take care of her
elder daughter and Sakshi stayed with her grandparents at Kopargaon. It was
really a tough time for Kalyani. She could never find even Rs. 50 in her purse.
Everything used to be locked at her home. She could never get money even for
buying biscuits for her daughter, she could not think about other expenses. For
meeting her basic necessities, she started cooking classes, rangoli classes to earn
money. She had a stint with marketing of Oriflame, modicare products but she
could not make it due to lack of confidence. She desperately wanted to do something
big but she could not get permission to go out of home in search of opportunities.
Then she decided to go to her mother’s place and joined sewing class. She leant
cutting and tailoring in just 10 days with total devotion and commitment. She
practiced very hard and became perfect in the work with fine finishing skills.
After coming back to Nanded, she commenced the work. She got a very good
response in a short span of time. But her in laws created many issues. They didn’t
like the clothes, threads, scissors, tapes and other material lying in the house due
to their obsession with cleanliness. They objected outsiders coming to her for
stitching work. At last, due to such pressures she had to close down the activity. In
the meanwhile her mother helped her for getting good response for rangoli class.
She made money by making rangoli stencils. She invested this money in a course
on beauty parlour with the help of her mother. Her father used to say,”Kalyani,
develop yourself as an independent person. I am always with you. But don’t forget
that you have to prove yourself. You have to fight your own battle.” And then
Kalyani determined strongly about developing her own identity and shaping future
of her lovely daughters.
She was planning to set up her own beauty parlour but it was difficult for
her to build up courage to seek permission of her family members. Her mother
motivated her and then she declared her decision about starting of her own beauty
parlour in a rented space of 6"x 9".
Right from her childhood, she believed in giving her 100% in whatever she
did. She wanted to keep herself upadated and focused for getting success and for
that purpose she continued to join various beauty parlour related courses. In about a
Business
Entrepreneurship - VI year, she was able to shift to her own house along with her husband and daughters.
32
For building her confidence, she started making friends. Her business also Women and
expanded with the increase in number of her friends. She started attending good Entrepreneurship
programmes with her friends. Due to her active presence, she got an opportunity
to act as a Lokmat Sakhimanch committee member. She learnt to present herself
in an effective manner and developed stage courage. The stage fear was removed NOTES
and she gained confidence.
She then shifted her parlour with the help of her brother Sandeep in 1 BHK
flat which is well equipped with all the essential facilities. She believes in fulfilling
her social obligations and she took the opportunity to train girls and ladies and enable
them stand on their own feet. Every years she trains two needy girls free of cost.
She has been associated with Maharashtra VIrshaiv sabha and worked
as President as well as secretary of women cell of Nanded district for more than
six years. She has been an active member of Innerwheel club and working as a
president and indulged in various social initiatives like helping poor and needy
students, tree plantations, career guidance and counselling and the like. Presently
she is working in the capacity of local advisor for Nanded branch of Samata
Nagari Sahakari Credit Society which is founded by her father before 32 years.
She is actively engaged in organizing various events and activities, ganapati festival,
navratri festival, kojagiri celebration etc. While organizing all such kind of activities
enthusiastically and in a meticulous manner, she always tries to inspire women
and increase their confidence. She has the realization that she was also one amongst
them, just like a part of faceless crowd. However, she launched her independent
venture courageously with persistence, and overcame all the situational barriers.
Now she considers that it is her duty to help other women. She never blames
anyone for the hardships faced by her. Instead, she thanks the hurdles and those
who created the hurdles because she believes that she could learn and develop
herself only due to the hurdles and difficulties faced by her and thereby improve
her self-confidence by creating her own identity in the society.
She says, “Women should see the outside world. They should not restrict
themselves within the four walls of their home. The outside world is gigantic
comprising of good and also evil tendencies and things. Even if they meet with
bitter experiences, they should not be discouraged. In effect, it leads to great
learning which improves confidence level so they need not be afraid of anything”.
2.6.2 Vishakha Vinaykumar Deshpande

Proprietor, Balvihar Sanskar Kendra, Jalna
Mrs. Vishakha Vinaykumar Deshpande was born to Mr. S. G. Rajurkar and
Mrs. Vinodini Rajurakar as third daughter in 1957. She was brought up in a family of
five daughters and a son by her parents with thorough, conscious and upright value
system. She learnt house chores right at her age of 7 years. As she had two sisters
and a brother younger to her, she enjoyed grooming them in the footsteps of her
mother. She did her B.A. in Social Sciences which gave her a sense of social gratitude.
She got married to Vinaykumar D. Deshpande, who is a post graduate in
Business Administration and a Law Graduate, with a brush with Music in his
childhood. Both the families are highly educated and have decent culture and
social consciousness.
They have two sons the eldest being a practicing Chartered Accountant
and the younger a special child with Cerebral Paralysis.
Business
Women and Journey so far:
Entrepreneurship
As a workaholic and enthusiastic person she kept looking for social projects
to keep her time occupied. It was a period when pre-primary education was not
imparted. And at the age of five or six the children were admitted to primary
NOTES
schools where academic syllabus was imparted. The children never learnt the
values, knew about their traditions, historic personalities, their achievements. They
never explored various hidden talents they had in them.
It was purely self-motivation with which she planned a play group for the
children between ages of 3 to 5 years. She started her play group in 1992 with 25
children mostly from the surrounding area with a meager fee of Rs. 35 per month.
She employed one trained teacher and a female sub staff to take care of the
children. It was only one year engagement for children in play group. This grew
into a play group with two years engagement (LKG & UKG) with Marathi and
English medium with 200 students, 8 teachers and two female sub staff. It could
have grown further in strength of students but she is bent on imparting quality
education and personal attention to each student.
Details about the enterprise:
Bal Vihar Sanskar Kendra is a Pre-primary School where children between
the age of 3 and 5 are admitted. The play group is run in two shifts of 3 hours per
day for every class. The children are divided into groups as per their age; the first
is 3 to 4 years in LKG and second is UKG between 4 and 5 years of age. They
are further divided into English and Marathi medium for instructions.
The children learn to read and write alphabets and numbers, recite poems
and stories during their tenure in school. They also try their hand on handicrafts,
drawing and colouring. They enjoy various festivals such as Ganapati (daily prayer
and various competitions), Dassera, Janmastami (Dahi Handi and Gopalkala) etc.
The syllabus is planned as are the activities right at the beginning of the year.
Teacher Parent meets are regularly organized to give and take feedback from
parents and teachers about the learning and behavioural skills and progress of
students. Children are taught various values such as discipline, respecting elders,
subordination, team work, goodness, and respect for knowledge through activities.
Motivational factors :
It was self-motivation in the first place as she was concerned about the
young generation. Many of her friends complained about their children for having no
discipline and respect, no orientation for learning and for exploring their hidden talents.
This happened because the young parents either did not have the time or the skill to
rare kids. She thought she could feel this void with a play group where “value system”
would be a major syllabus followed by academics as a minor syllabus.
Her family and friends supported her always during her walk.
Her employees not only assisted her but also executed her ideas
enthusiastically and meticulously.
She feels contended for having followed her imagination, dream and plan
to set up play group and sustain it successfully for almost 25 years now.
Difficulties, Hurdles :
Vishakha says, “Mindset of parents is one of the biggest difficulties in
Business shaping the future of a child. They consider end of their duty once the child is
admitted to a school. In fact they fail to realize that the child is under their care for Women and
almost 75% of the time where they can be better groomed. However, they do not Entrepreneurship
instill value based knowledge, inquisitiveness or thrust for pursuing their talents by
either through their exemplary behaviour or by providing conducive atmosphere
and space at home. NOTES
The other difficulty is the teachers’ mindset. They do not oblige students
as their own children. They are usually not well informed about the environment
or child psychology.
It is painful to make parents or teachers to understand their role in bringing
the best in the student and allow him/ her to pursue their talent, ambition”.
Achievements:
In the words of Vishakha, “The best achievement is the satisfaction for
last twenty five years in being a part of imbibing value based education and
upbringing a child in his early formative years. Such over three thousand students
have had their basic learning of life values in Bal Vihar Sanskar Kendra, who
keep meeting and remembering that they had their first brush with learning. Many
students have been Doctors, Engineers and professionals in various avenues of
knowledge. It gives a lot of sense of accomplishment when the proud parent
mentions the achievement of his/her child in his/her given vocation and attributes
his/her success to the basic learning he/she did in the Bal Vihar”.
Philosophy and Message to aspirant entrepreneurs:
To quote Vishakha:
• “Dream with open eyes and pursue the dreams with open mind
unfettered.
• Nothing is end of universe. Keep trying.
• Follow satisfaction, not success. Success will follow automatically.
• No one has succeeded before he/she has failed at least once in his/her
venture.
• A small step in right direction can get you profound success”.
2.6.3 Surekha Vivek Kate

Proprietor, Pallavi Beauty Parlour and Pallavi Beauty Centre
Surekha is the proprietor of Pallavi Beauty Parlour and Pallavi Beauty
Centre. She is industrious in nature. She is a hard worker. She has been dealing
with varied types of businesses. She is enthusiastic and full of optimism and
enthusiasm. Never has she complained. Whatever happens to her, she accepts it
wholeheartedly and proceeds forward.
Surekha lost her father in her childhood at the age of three. Her mother
had hearing problem and speaking problem also. She could not hear, speak properly.
The family struggled a lot in making their living. Her elder brother completed
diploma engineering. Unfortunately, when Surekha was studying in 10th, cancer
was detected to her elder brother. Surekha and her mother tried their best for
providing proper medical treatment, their relatives also supported them but her
brother could not survive for long. Her mother wanted that Surekha’s brother Business
Women and should see her sister getting married and be assured about her future. For the sake
Entrepreneurship of her brother, Surekha got married to Mr. Vivek Kate at the age of eighteen only.
He was the best friend of her brother. Her brother passed away in about two
months after her marriage.
NOTES
Due to early marriage, and treatment of her brother, Surekha could not
complete her education. She became busy with family duties and household chores.
She had to shoulder the responsibility of her mother also. But she was never
discouraged. She started the business of spice powders for supporting her husband.
She ventured into K. M. Gruhaudyog in which she dealt with making and marketing
of spices, wafers, papad etc. Her husband was working in Nirlep nonstick cookware
then. Further she started the sale of nonstick kitchenware utensils also along with
her homemade spices. It was a good going.
Then she had a daughter and twin sons. She used to manage her home,
her children, and her business with a proper balance. In the meantime, along with
her husband, she went to Daman due to his transfer there. Then her husband
resigned and decided to commence manufacturing of nonstick kitchenware and
started his venture ‘Ajinkya Enterprises’ in Beed. She stood firm to support him in
every way in his venture wherever required. She travelled entire Maharashtra for
promoting the sale of their own nonstick kitchenware products.
Then she sought training required for starting a beauty parlour. She
completed various beauty treatment related courses, attended a number of seminars
and then started her own enterprise ‘Pallavi Beauty Parlour’ in the year 1996 at
Beed. She has an expertise in bridal makeup, party makeup. She develops a special
relationship with her clients. Her clients never go anywhere else other than her
parlour for beauty treatment. Her clients from Beed, Jalna, Pune visit her parlour
whenever it is possible for them.
Due to some problem with working capital, her husband decided to close
down the manufacturing unit of non-stick kitchenware and he entered into construction
business. He got an opportunity to build shri Ganjanan Maharaj temple at Beed. Both
of them managed entire work of the temple. Then for the sake of their children’s
education, the family decided to shift in Aurangabad in the year 2005.
She established her beauty parlour in Aurangabad also. She has trained
many girls, and women and enabled them to stand on their own with the help of their
own beauty parlours. She supported them actively for establishing their own beauty
parlours. Then she realized the need and demand of cosmetic products of her own
clients, her students and also clients of her students. And she launched Pallavi Beauty
Centre i. e. cosmetic shoppe where all the cosmetics and other articles required for
parlours are available. She offers quality products for the clients’ parlours at
reasonable rate with lavish discounts with a convenience of home delivery.
Her daughter completed her Masters in music and presently working as
head of the department of music in Bal Shikshan Sanstha (English medium) at Pune.
One of her sons is busy with his own workshop ‘Global Auto Works’ for four wheelers.
Her other son opted for tourism career and he is working in a renowned travel
agency in Pune. He is also planning to start his own travel agency in a near future.
She says,” Students must seek education, but instead of moving after
employment they should choose business of their own interest. Be firm and
determined to move ahead, to progress and take other also with you on the path of
Business
progress by offering them employment. Build up your own empire, your own Women and
business world. Hard work always pays”. Entrepreneurship
2.7 Summary
NOTES
Women possess an intrinsic potential for success. They aspire for success.
In spite of male domination in the society, the number of women entrepreneurs is on
an increase. However, they face a number of socio-economic barriers such as
discrimination in their upbringing, family socialization, education. Many of them are
not aware about their own strengths. They need a little pull and push to venture into
entrepreneurship. There is a need to make them aware about their potential, strength,
qualities and they should be supported for utilization of their skills, and potential.
Various government agencies and NGOs conduct specialized training
programmes exclusively for potential women entrepreneurs. Small Industries
Development Bank of India (SIDBI), State Bank of India (SBI) have special schemes
to provide financial assistance to women entrepreneurs on concessional terms.
Promotion of entrepreneurship plays a vital role in empowerment of women.
Entrepreneurship on its own may not bring in the anticipated power to women. No
single agency alone can empower women. There is a need of favourable
environment that nurtures women who aspire to become entrepreneurs, empowers
them and enhances their capacity.
2.8 Key Terms

• Empowerment: To empower is to give power or authority to, to enable
or permit; empowerment is viewed as a process, the mechanism by
which people, organizations and communities gain mastery over their
lives; in essence, empowerment is about having or taking more control
over all aspects of life
• Women empowerment: It refers to increasing and improving the social,
economic, political and legal strength of women, to ensure equal-right to
women, and to make them confident enough to claim their rights;

Questions
1. Define women entrepreneurship. Should women take entrepreneurship
as a career? Comment.
2. Draw a profile of a woman entrepreneur.
3. What are the motives of women entrepreneurs? Give an account of
growth of women entrepreneurs in India.
4. What problems are faced by women entrepreneurs in establishing and
developing their enterprises?
5. The greatest problem of women entrepreneurs is that they are women.
Discuss. Business
Women and 6. Discuss the measures taken by our government to promote women
Entrepreneurship entrepreneurship.
Exercise
NOTES Activity
1. Meet at least three women entrepreneurs and ask them about their
motivations and challenges faced by them.
1. ———— caused a major change in the status of women
i. Industrialization
ii. Urbanization
iii. Education
iv. All the above
2. The term entrepreneurship is associated with ———
i. Self-employment
ii. Creation of new enterprises
iii. Both i and ii
3 Which one of the following is true?
i. Women’s participation in the economic progress and consequently
in national development is desirable from the view of human resource
development
ii. Women’s participation in the economic progress raises the status
of women in family and also in society
iii. To raise women’s status in home and also in society, there is a need
of empowerment which can be achieved through self-employment
and through entrepreneurship
iv. All the above
4. Which of the following is false?
i. Social empowerment is a process of gender sensitization and inculc-
ating a feeling of equality without any discrimination of gender
in day to day routine matters
ii. Economic empowerment is associated with freedom and capability
in income generation and access to assets and resources
iii. Psychological empowerment refers to participation in decision mak-
ing, high self-esteem and improved self-confidence
iv. All the above
Business
Answers Women and
Entrepreneurship
Check Your Progress
2. Affluent
NOTES
3. Domestics
5. True
6. Pickles, Powder and Papad
7. Engineering, Electronics and Energy
1. iv
2. iii
3. iv
4. iv

De Uppal Kumar, Ghosh Bhola Nath, Issues on Empowerment of Women,
Mohit Publication, New Delhi, 2004
Deshpande Madhuri S., “Study of Women Entrepreneurship in Marathwada”,
Ph. D. thesis submitted to SRTM University, Nanded, Maharashtra, 2000
Deshpande Manohar U., “Entrepreneurship of Small Scale Industries –
Concept, Growth and Management”, Deep and Deep Publications, New Delhi, 1982
Singh Kamala, Women Entrepreneurs, Ashish Publishing House, New
Delhi, 1992
Vinze Medha Dubhashi, Women Entrepreneurs in India, Mittal Publications,
Delhi, 1987
Business
Entrepreneurship and
Service Sector UNIT 3 : ENTREPRENEURSHIP AND
SERVICE SECTOR
NOTES
Structure
3.0 Introduction
3.1 Unit Objectives
3.2 Entrepreneurship and Service Sector
3.3 Nature and Scope of Service Entrepreneurship
3.4 Profiles of Service Entrepreneurs
3.4.1Dadu Purohit
3.4.2 Dileep and Reeta Mahure
3.4.3K. Murli Mohan
3.5 Summary
3.6 Key Terms
3.8 Further Reading
3.0 Introduction
Anyone and everyone can become a service entrepreneur. Everyone
possesses some skills, knowledge of some area. These skills as well as knowledge
base open several opportunities for setting up business in a gainful manner. Creative
minds always work on new ideas. Creativity gives rise to new ideas, new products,
new services, new businesses and new enterprises. On the basis of expertise,
previous experience and association; several entrepreneurial opportunities are
available. The motive may be to earn money. The drive may come from need,
desire, interest, hobby, creative ideas, expertise or previous experience. Regardless
of age, education, gender, business experience, financial background; any one can
venture into service entrepreneurship. Service entrepreneur can work from home.
They may not invest substantial amount of money and other resources.
3.1 Unit Objectives

• Understand the meaning of service entrepreneurship
• Learn features/characteristics of services
Business • Appreciate the increasing importance of services

• Be aware about significance of service entrepreneurship Entrepreneurship and
Service Sector
• Visualize and explain various entrepreneurial opportunities in service sector
NOTES
3.2 Entrepreneurship and Service Sector
Let us take a review of various stages of economic activity in the society.
This comprises a journey from pre-industrial society, industrial society and then
post-industrial society which is primarily service based.
Preindustrial society is based on primary activities concerned with
agriculture, mining, fishing and forestry. This stage is characterized by dependence
on weather, availability of water, availability of cultivable land. Other features are
low productivity, lack of technology which leads to unemployment in a major way,
and also seasonal employment.
Industrial society is based on secondary activities such as manufacturing
and processing of goods. This society is characterized by dependence on machinery,
energy, and skilled workers to produce more with fewer inputs. With increasing
industrialization, there is a shift of labour force from agriculture sector to industrial
sector. Living standard of the society depends upon manufactured goods.
Increasing industrialization leads to development of services. In absence of
services such as communication, transportation, banking etc industrial development
cannot take place. Services such as education, entertainment, recreation, health etc
increase standard of living of society. The focus of the society is now community
and not individual as seen in case of industrial society. However, in this stage problems
related to pollution, environmental degradation increase.
Dorothy Riddle’s interactive model of an economy speaks about flow of
activity among three principal sectors of the economy – extractive (mining and
farming), manufacturing and service. Services are divided into five groups: business
services such as consulting, finance, banking; trade services such as retailing,
maintenance, repair; infrastructure services such as communications, transportation;
social/personal services such as restaurants, health care; and public administration
such as education, government. Infrastructure services are the links between all
sectors of the economy including the final consumer. Infrastructure services and
trade services function as intermediaries between extractive and manufacture sectors
and as channel of distribution to the final consumer. For industrialization, infrastructure
services is a necessary condition. Public administration is instrumental in development
of conducive environment for investment and economic development. Services are
essential for smooth functioning of an economy and for enhancing quality of life.
Service sector plays a vital role in an economy. It accounts for nearly two-
thirds of GDP and employment. It is becoming the primary basis of wealth and
growth in the developed world. They are the major employers in the advanced
economics. Most of the advanced economies of the world are now dominated by
services. They are termed as a service economy with more than half the workforce
employed in the service sector. The importance of services is increasing day by day.
With growth in the service economy and diminishing importance of primary industries
such as agriculture, forestry, fishing and secondary industries such as construction,
manufacturing; the overall economic scenario is undergoing a drastic change.
A number of key factors have contributed to the development of service
Business
enterprises. The study of population exhibits a general increase in the world
Entrepreneurship and population. High birth rate has given scope for childcare centres, educational
Service Sector institutions etc. Improvement in life expectancy led towards increased demand
for services such as health care, nursing homes, old age homes, health clubs,
leisure and tourism etc. There has been a movement of population from rural to
NOTES urban areas which lead to the need for development of infrastructure and support
services. Growth and development of large corporations brings about more and
more dependence on special service providers like market research and advertising
agencies, consultancy firms.
The economic reforms have ushered consumerism. Higher income levels,
increased purchasing power, and spending patterns, increased disposable income
and the increasing affluence boosted the demand for several services such as
travel, recreation, leisure services, laundry, interior decoration, maintenance of
household products like carpet, maintenance of garden, plumbing, electrical repairs.
The demand for education is increasing, especially in higher education, vocational
courses, part-time courses. With increase in leisure time, new demand was created
for recreation and entertainment facilities, resorts, adult education.
Globalization, consequent cultural exchange and communication networks
change life styles of the population which raise the demand for several services.
Changes in the lifestyle give rise to new services. With growing consumer
sophistication, the range of services will continue to grow. Labour saving devices at
home, increasing automation, mechanization, computerization in the work place and
consequent decline in manual labour generated demand for fitness and recreational
services. For hi-tech products like air conditioners, computers, laptops, cars etc,
increasingly need is felt for repair and maintenance. With busy and hectic life, there
is emergence of demand for several specialized services such as income tax, legal
affairs, marriage counseling, event management, wedding planning, employment
services. Consultancy services are in demand. Smaller families, working women
means more discretionary income, more time for travel, and entertainment. An
Increasing proportion of working women in the society creates demand for babysitting,
day care centres, creches, nurseries, household domestic help etc.
Technological developments, and breakthroughs, recent developments in
information technology as well as digitalization led to new services to meet new
Check Your needs and new demands. New services include software services, data processing
Progress services, maintenance and support services. So as to cope up with the new
1. What are the major technology, training services are in demand along with re-training for redundant
reasons for growth of craftsmen from traditional industries. Emergence of internet, World Wide Web
service sector? results in a paradigm shift in many service industries like travel, banking, financial
services, insurance, education etc.
3.3 Nature and Scope of Service Entrepreneurship

Let us discuss the meaning, nature and characteristics of services.
Kotler and Armstrong define service as “an activity or benefit that one
party can offer to another that is essentially intangible and does not result in the
ownership of anything. Its production may or may not be tied to a physical product”
In the words of Stanton, “services are those separately identifiable,
essentially intangible activities, which provide want satisfaction when marketed to
consumers and/or industrial uses and which are not necessarily tied to the sale of
Business a product or another service”.
In practice, it is not easy to distinguish services from goods. When a good Entrepreneurship and
is purchased it usually includes an element of service. A service is found to be Service Sector
frequently augmented by a tangible product attached to the service. Every prod-
uct is a combination of physical i.e. tangible and nonphysical i.e. intangible at-
tributes. The products that are primarily intangible are classified as services. NOTES
According to Philip Kotler, a company’s offer to the marketplace usually includes
some services. The service component can be a minor or a major part of the total
offer. The offer can range from a pure good on the one hand to a pure service on
the other. He identifies five categories of offer:
• A Pure Tangible Good: Here the offer consists primarily of a tangible
good. No services accompany the product
• A Tangible Good with Accompanying services: Here the offer consists of
a tangible good accompanied by one or more services to enhance its
consumer appeal
• A Hybrid: Here the offer consists of equal parts of goods and services Check Your
Progress
• A Major Service with Accompanying Minor Goods and Services: Here
the offer consists of a major service along with additional services and/or 2. Define services
supporting goods
• A Pure Service: Here the offer consists primarily of a service
Characteristics of Services
Let us discuss the characteristics of services which have significant
implications for service entrepreneurs.
• Intangibility: Services are intangible. It is not possible to see, taste, feel,
hear, smell or touch services before purchasing them. It is difficult to evaluate
a service before purchasing it. The intangible nature of services make
advertising and promotions more difficult than a physical object. The service
itself cannot be emphasized. While promoting a service, there is a need to
focus on the benefits or satisfactions a consumer can avail after buying the
service. To facilitate the communication of a service’s benefits, it is needed
to develop a tangible representation of the service and focus on the service
provider rather than on the service. To quote Kotler, “the service provider’s
task is to ‘manage the evidence’, ‘tangibilize the intangible’”. In this manner,
through the use of tangible cues; service provider indicate service quality
for an intangible offer. The tangible cues present an opportunity to customers
to judge quality of service before purchase.
• Variability/Heterogeneity: Services are highly variable. They depend on
who provides them, when and where they are provided. Due to labour
intensive nature of services, they are less standardized. High service
variability means uncertainty for the service customers regarding quality
and performance. Price paid for a service may be too high or too low. The
service provider must control quality and ensure adequate service. The
higher the service variability, the more the uncertainty about the service.
To achieve standardization, there are a number of ways: The service
provider has to increase control over service. Careful screening, selection
and training of service personnel contributes to good quality. Establishing
standardized procedures also improves quality. Switch to machines from
people is another way to standardize services and to reduce the variability. Business
Another approach is to reduce the consequent risk in the eyes of the Entrepreneurship - VI 43
Entrepreneurship and customer. For reducing perceived risk, the customer need to be convinced
Service Sector about service variability by encouraging positive word of mouth. Offering
money back guarantee is another way to reduce perceived risk. Kotler
suggests that customer satisfaction is to be monitored through suggestion
NOTES and complaint systems, customer surveys, and comparison shopping so
that poor service can be detected and corrected.
• Inseparability: Services are sold first, then produced and consumed at the
same time. Simultaneous production and consumption of services implies
that distribution of services must be simple with occasional use of
intermediaries such as real estate brokers, brokers, travel agents. Image
of the service provider is important. Services must be delivered close to
the customer. Services are consumed when they are produced and
therefore they cannot be stored, transported or inventoried. Services must
be offered in many locations. For some services consumers are ready to
travel and avail services but for many services it is required to locate
service establishment close to the customer. Image of the service provider
has to be paid attention to since service production and consumption occur
Check Your
simultaneously. Services are not separable. Services and their providers
Progress
are the same. If the service is rendered by a person, then provider is the
3. What do you mean part of the service. Provider-client interaction implies that both the provider
by intangibility of ser- and the client affect the service outcome.
vices?
• Perishability: If services are not consumed when offered they go waste.
4. Explain the meaning They cannot be inventoried. Unutilized or underutilized services are economic
of variability of ser- waste. Once lost, lost forever. When demand is steady, it is easy to stock
vice services in advance. It is difficult to regulate supply to meet fluctuating
demand. To overcome the problem of matching of demand and supply due
5. What is meant by to the issue of perishability, Sasser has suggested several strategies so as to
inseparability of ser- strike a right match between demand and supply in a service business.
vice? Supply can be regulated to match with demand. Service supply management
comprises performing only essential tasks during peak periods. Part-time
6. Explain the term employees can be hired to serve peak demand. Consumer can be encouraged
‘perishability of ser- to participate in the tasks and perform certain services such as self-services.
vice’. Equipment and staff can be shared with other services. Facilities for future
expansion can be developed. Service demand management constitutes
7. What are the char-
differential pricing, promotion of off-peak demand, preselling of services,
acteristics of services?
reservation systems, providing complementary services.
The growth in the service sector is reflected in the availability of wider
range of services. There are different types of service enterprises in operation.
Government offers services through hospitals, military services, police, fire
department, postal service, schools, buses, trains, employment exchanges etc.
Various service businesses include banks, hotels, tourism, hospitality, airlines, legal
consultants, advertising agencies, entertainment companies etc. Private non-profit
organizations offer services through hospitals, museums, charities, colleges etc.
Services are classified on the basis of end users as consumer services,
business to business services and industrial services. Consumer services com-
prise of food services, hotels and motels, personal care services, health and fit-
ness centres, beauty parlors, hairdressing, laundries, dry cleaners, garment repair
shops, shoe repair shops, two-wheeler and four wheeler servicing i.e. garages,
personal finance, transport, package holidays, insurance, entertainment services
such as movies, sports, amusement parks, circuses, car racing, dancing, music,
Business drama, billiards and the like. Business to business services include advertising
agencies, consultancy, accountancy, printing and the like. Industrial services in- Entrepreneurship and
clude installation, repair and maintenance, insurance, transport, warehousing engi- Service Sector
neering, advertising, promotion, typing, duplicating, stenography, office cleaning,
security, management consultancy etc.
NOTES
The degree of tangibility of a service categorizes services as highly tan-
gible, highly intangible, and services linked to tangible goods. Highly tangible ser-
vices include car rental, vending machines, telecommunications and the like. Highly
intangible services include psychotherapy, consultancy, legal services and the like.
People-based or labour intensive services like education, dental care, restaurants,
medical services etc are high-contact services. Equipment-based services are
low-contact services such as automatic car wash, vending machines, cinema etc.
Based on expertise and skills of service provider, there are two categories
– professional and non-professional services. Professional service providers serve
business market, private individual or may serve both market segments. Profes-
sional services comprise of medical service, legal service, accountancy, financial
advice, advertising, business consultancy, management consultancy, engineering,
architectural and interior design, tutoring, estate agents, stock brokers, insurance
brokers, market research agencies etc. Non-professional services may be con-
sumer oriented or may be in the business to business market. Consumer oriented
non-professional services comprise of babysitting, caretaking, casual labour, holi-
day tour companies, entertainment firms, fast food outlets etc.
Services can be categorized as traditional services, modern services and
new generation services. Traditional services comprise of utilities like electricity,
water supply etc, transport services such rail, road and air transport etc;
communication services such as post, phone, broadcasting, telecasting, education,
legal, accounting, medical services, hospitals, insurance, banking, finance, stock
brokerage, leasing, food, leisure, recreation, restaurants, hotels, catering, fast food
joints; entertainment services such as cinema theatres, clubs, casinos, video game
parlors, amusement parks, water parks, snow parks etc, maintenance and repair,
beauty parlors, distributive trade retailing etc. Modern services include travel agency,
real estate, advertising agencies, public relations agencies, market research
agencies, physical fitness/health clubs, car rental services, courier services, credit
cards etc. New generation services include wedding planners, adventure tourism,
medical tourism, business services, recruitment services, placement agencies,
computer software solutions, computer maintenance, consultancy, training and
development, cellular phones, fax, e-mail, internet, world wide web, e-commerce,
video conferencing etc.
On the basis of focus on profit orientation, services are classified as
commercial and not-for-profit services. Banks, hotels, airlines, catering service,
tours and travel are commercial services. Commercial services can be classified
as follows: Housing services: such as rentals of hotels, motels, apartments, houses,
farms. Household operations: which include utilities, house repairs, repairs of
household equipments, landscaping, household cleaning. Recreation: entertainment,
recreation and amusement events; rentals and equipments used in recreation and
entertainment activities. Personal care: beauty care, dry cleaning, laundry. Medical
and health care: dental care, nursing, hospitalization, optometry. Private education.
Business and other professional services: legal, accounting, management consulting,
industrial consulting. Insurance and financial services: personal and property
insurance, credit and loan service, investment counseling, tax service.
Transportation: freight, passenger service, automobile repairs and rentals.
Communications: telephone, telegraph, fax, internet. Business
Entrepreneurship and Some services are in the form of tangible actions directed at people’s
Service Sector bodies such as haircutting, restaurants, passenger transportation, beauty salons,
gym. Some services are intangible actions directed at people’s mind like educa-
tion, museums, theatres, information services, broadcasting. There are services
NOTES which are in the form of tangible actions directed at goods and other physical
possessions such as repair and maintenance, freight transportation, laundry and
dry cleaning, veterinary care, landscaping etc. Some services are intangible ac-
tions directed at intangible assets such as insurance, legal services, accounting,
securities etc.
For some services, there is membership relationship between service
provider and customers and delivery of service is continuous such as insurance,
banking, education, trade association. There are services with no formal relationship
between service organization and customers and which provide continuous delivery
of service to customers like radio station, lighthouse, police protection, public highway
and the like. Some services are provided with discrete transaction such as car
rental, mail service, toll highway, movie theatre, restaurant, public transportation.
For some services there are wide demand fluctuations over time and peak demand
can usually be met without a major delay such as electricity, telephone, police, fire
brigade etc. There are some services with wide demand fluctuations over time
and peak demand regularly exceeds capacity such as hotels, motels, restaurants,
theatres, passenger transportation, accounting and tax preparation, theatres and
the like. For some services with wide fluctuations over time, peak demand can
usually be met without a major delay such as police, fire, telephone, electricity.
There are some services with narrow demand fluctuations over time where peak
demand can usually be met without a major delay such as insurance, legal services,
banking, laundry and dry cleaning. However, if such services have insufficient
capacity then peak demand exceeds capacity.
Some services are quite standardized such as public transportation, fast-
food restaurant, movie theatre. However, the role of customer contact personnel, if
any, is not significant; wide choice of options and a broad array of services are
offered to customers. Some services are customized to a large extent such as surgery,
professional services, taxi services, beautician, plumber, education. Some highly
customized services require judgement of the contact personnel regarding developing
the service offer and delivering it to each customer. White collar ‘knowledge industries’
such as professional services like law, medicine, accounting, architecture belong to
this category. Depending upon the method of service delivery, services vary in their
nature and characteristics in a significant manner.
Depending upon the method of service delivery, services vary in their
nature and characteristics in a significant manner. For services such as restau-
rant, theatre, hair cutting, bus etc. customers go to service providers. Service
providers go to customers for services like taxi, pest control, mail delivery etc.
For some services, customers and service providers transact through mail or
electronic communication. Few examples of this include Credit Card Company,
cable TV, broadcast network. Some service outlets have only single site while
there are multiple sites for some services.
Some services are equipment based such as vending machines, ATMs etc
and some services are people based such as consultancy, accounting services etc.
People-based services are provided by skilled or unskilled workers or by profes-
sionals. Some services require client’s presence as in brain surgery, beauticians.
Some services fulfill a personal need and some services cater to a business need.
Business
On the basis of different classification schemes of services, entrepreneurs Entrepreneurship and
comprehend a framework of service businesses. They become aware about the Service Sector
nature and common features of those businesses.
You can choose to be a mobile pet groomer. There may be a need of a van,
NOTES
some grooming tools, counseling. With proper training and experience, there are good
chances to earn money as a mobile pet groomer. Anyone can deal with dry-cleaning
pickup and delivery business. Busy professionals are always interested in pickup and
drop off at convenient locations. For actual cleaning, an arrangement can be made
with any local dry cleaner. Nowadays there is a demand for self-defense instructors.
Everyone regardless of age and background needs to learn self-defense skills, basic
safety awareness skills such as judo, karate, taekwondo etc.
There are tremendous opportunities to choose from for being a successful
service provider. Services keep expanding in nature, range, sophistication, and
complexity. Innovation enables endless opportunities for new service launching.
3.4 Profiles of Service Entrepreneurs

Few profiles of successful service entrepreneurs are presented below:
3.4.1 Dadu Purohit

Sahyog Seva is a well-established name in Nanded for catering and
decoration. Mr. Kanhaiyalal Purohit ventured with a tent house in Nanded in the
year 1984 and his nephew Mr. Ramkishan Bankatlal Purohit, popularly known as
Dadu, transformed the business to Sahyog Seva Enterprise which deals with
catering and decoration in Maharashtra and several other states also. Sahyog
Seva Enterprise which was initially a small two person family has grown to be a
big family consisting of more than one thousand members.
Dadu belongs to a joint family which is native of Rajasthan. However, from
last three generations, the family had settled in Nanded. The family started business
with tent house and later on added the business of hiring of several related articles
like carpets, kitchen utensils etc. That was a great going since the facilities were
housed exactly in front of a Function Hall. Unfortunately, the business faced a severe
setback due to premature deaths of his two uncles in about a year. This has compelled
Dadu and his brother Ravi to leave their education and pay attention to the business
from the year 1990. Dadu could not complete his commerce graduation.
In those days catering business was not commonly accepted by the society.
However, Dadu started striving hard for the business. He arranged for a good cook
and ensured his wholehearted commitment and dedication. This made his business a
symbol of quality in catering business. He plans and arranges everything meticulously
right from erection of tent, decoration, cooking tasty food with quality norms, serving
it promptly and efficiently. There is no place for delay, complaint of any kind regarding
food quality, service quality, decoration arrangement. He considers service quality
being over and above the monetary considerations. Obviously there has been a
continuous increase in the business. He is getting contracts not only from Nanded
but from other cities and other states also. The secret of his business success lies in
the unity and integrity among his family members. All the family members love each
other and they are very affectionate about each other. Their decisions are always
accepted and respected by each other. Business
Entrepreneurship and Dadu proved himself in several challenging situations. In the beginning, he
Service Sector got a contract of catering for a hockey tournament in Nanded through a tender
which he sought with a rate of Rs 10 per plate in 1996 and then it became a matter
of discussion in the city. With such popularity, Nadedites noticed him and he was
NOTES given numerous contracts. With satisfactory performance and word of mouth
publicity, Dadu developed a good standing in the market.
In 2008, for the Guru-ta Gaddi celebrations, the then President of our
country Pratibha Patil visited Nanded. As per the protocols, it was expected
to make an arrangement of food from a five star hotel in Aurangabad. But the
then cultural minister Mr. Ashokrao Chavan, entrusted this responsibility to
Sahyog Seva and Purohit brothers accomplished this task successfully. They
followed all the protocols and security requirements in a proper manner through
checking by security officers as well as medical officers as per the stipulated
norms. Along with taste and food quality, the aspects of decoration and
beautification in serving the food got appreciation and compliments from the
dignitaries. He admits that it was really a tough task to give justice to the food
arrangements by following the stringent protocols. With the strong support of
Ashokrao Chavan, he could accomplish the task. Making food arrangements
for the Governor of Maharashtra at the time of convocation of Swami
Ramanand Teerth Marathwada University, Nanded was another enriching
experience for Dadu. There was a demand of some Keralite delicacies. Then
Dadu searched for Keralite families in Nanded and learnt the Keralite recipes
from them. The governor appreciated the dishes and everyone was surprised
at the skills of this caterer in providing the dishes from other state. In one
function, he arranged for a cook from Hyderabad and presented ten South
Indian dishes in an excellent manner. For a reception in Parbhani, he built up
a 8000 sq.ft. model of Taj Mahal with a height of 55 ft in 2007. He also built
up a set of Gurudwra, a set of fort. He served sadhus at Mancharial in Andhra
Pradesh and Kumbhmela at Nashik. In Loksabha and Vidhansabha elections
in 2009 and 2014, he arranged for tents, catering, lighting, furniture in a
successful manner. He participated in Nanded Ahead, Latur festival, Akhil
Bharatiya Natya Sammelan also. Sahyog Seva Enterprise is credited with
successful organization of a number of events such as Lions club conference
at Mahabaleshwar, Rotary club conference at Goa, Sant Sammlean at
Ahmedabad. He firmly believes that satisfied and happy customers are his
achievement.
3.4.2 Dileep and Reeta Mahore

Dileep Mahore, Director of City Max Digital Colour, hails from a farmer’s
family of Chandur from Akola district. To seek education, he had to work very
hard. He had to earn on his own. He used to go for brick work. His friends and
relatives were assured about his bright future since he exhibited several qualities
such as hard work, persistence, persuasion, honesty, human relations skills. He
was also confident about his own future.
This is an inspiring story of a non-matriculate person from a farmer’s family.
Dileep worked at J. K. Colour Lab with Anwar Ahemad Khan and Nilofar Anwar
Khan in Akola for about six years. Both of them helped him a lot. He used to snap
photos of customers and deliver ready photos to them. After gathering sufficient
experience, with a firm determination, he came to Nanded in 1996 to commence his
own enterprise. With the help of local labour, locally available raw material, Mahore
established his business with least investment and minimum expenditure.
Business
He had a realization that along with the present business, a processing Entrepreneurship and
enterprise also needs to be started. While working with J. K. Lab at Nanded, he Service Sector
started his own enterprise which included all articles of digital world. Along with
taking photographs, there is a specialty of City Max in preparing albums of 200
types. It deals with video shooting. Also it houses mixing facilities. Literally it NOTES
covers everything from photo capturing to album printing. Now people need not
go to Pune or Hyderabad since City Max offers all the products of the digital
world ranging from still photography cameras to video cameras along with all the
needed accessories in Nanded. He deals with karizma album printing, identity
card printing, cup printing, T-shirt printing, and also sublimation process on crockery.
With such type of exclusive products, he participated in GIFT EXPO-2012 in
Russia. For getting training, he has visited various countries such as Singapore,
Thailand. Mr. Mahore provides training facilities for photographers and
videographers also in a professional manner. He works with Manthan blood donor
group. He organizes blood donation camps frequently. Every year he arranges
free camps for guidance in digital business.
City Max, started as a tiny industry, has now turned to be a network for
five thousand villages in the state. A staff of 150 employees is on their toes for 20
hours a day under the able supervision of Mr. Dileep as their family head. His
nephew Kunal contributes in this endeavour. The business, started in Nanded, has
now spread to entire Marathwada including Western Maharashtra, Vidarbha and
Thane. So as to support the enhanced scale of operations of the enterprise, Mrs.
Reeta entered in the working. She puts her wholehearted commitment for the
activities. As Dileep says, “She has a major contribution in my success”. She was
awarded ‘District Industries Centre’s Best Entrepreneur award of the year 2014.
She also received Udyogshree award in 2015. She has represented India in Russia.
Reeta says, “Women are honoured after getting success. Otherwise when they
wish to venture into a challenging task, they are not taken seriously. There is a
need to encourage and support them right from the beginning of their career”.
Both Dileep and Reeta do not want to restrict their activities to only Nanded;
rather they are striving hard to set up their ventures in various districts of
Maharashtra on the basis of their image, goodwill and human relations established
all over Maharashtra.
However, it is not that the success story is without meeting any failure,
problem or hurdle. In 2008, Dileep purchased a printing machine costing more
than Rs. 30 lakhs and the planned production could not be streamlined due to lack
of skilled workers and the interest burden was rising. After successfully overcoming
this challenge, he met with another unfortunate incident. In June 2015, due to
short circuit, City Max was set on fire. All the photo albums, printing machines
were burnt to ashes. Fire brigade worked hard to extinguish fire. All the computers
were destroyed and the entire data received from various places of Maharashtra
which was stored for printing was completely lost. Nothing was left except burnt
albums, computers, and printing machines. In just an hour, there was a loss of Rs.
45 lakhs and all the 35 employees of City Max were shocked to see that. Whatever
was built up in the last 20 years was vanished leaving behind a loan of Rs. 60
lakhs. However, Dileep was not discouraged. He stood firm looking at his own
employees, his professional business network spread all over Maharashtra, the
strong human network built by him from all cross sections of society such as
social, political, administrative as well as business circle, their blessings, support,
financial assistance extended by them and his own goodwill in the society. His
City Max is poised to rise to a higher level like a phoenix …
Business
3.4.3 K. Murli Mohan Entrepreneurship - VI 49
Entrepreneurship and Mr. K. Murli Mohan, Proprietor, Mohan Electronics, Nanded is a senior
Service Sector entrepreneur in the world of electronics from Marathwada region. He is especially
keen abut designing new equipment with a novel attire and user friendly nature.
He is always motivated to work in new, unexplored and challenging areas which
NOTES he combines with his knowledge in Physics and Electronics to make it innovative.
His ultimate aim is to use Electronics to improve the living and working conditions
of mankind in this postmodern era.
His earlier activities include repair, design and development in entertainment
electronics. He has worked extensively in power electronics, transformers,
stabilizers, UPS, circuit designing. With vast experience in practical electronics,
he has been operating a service center for maintenance of entire range of electronic
instruments including industrial and medical equipment for past twenty five years.
His recent ventures are associated with software and hardware development of
e-learning for language lab. Simultaneously he is working on developing
unconventional energy machines.
Being the son of an eminent physics professor, late Dr. K. Rammohan
Rao, he inherits the teachings of fundamental electronics. He started his practical
electronics career with his father at a very early age of twelve. He completed his
schooling up to 12th in Nanded and then he sought his bachelor’s degree in
electronics from Saraswati Bhuvan College of Science, Marathwada University,
Aurangabad in 1981. Then he went to Kanpur for post-graduation, but he could
not complete it; since he had the feeling that the degree would not be of any help
to him in starting his business. So he dropped the idea of post-graduation and
came back to Nanded and started Mohan Electronics.
The areas of his professional experience comprise of:
• Design, development and manufacturing Digital Vision Testing
equipment (VARIANT) for ophthalmic-subjective vision testing
• Solar PV design and installations for domestic and agricultural
applications
• Software and hardware development of e-learning material for
language lab
• Developing unconventional energy machines
• Developing cost effective indigenous substitutes for industrial
components
Being the pioneer in introducing the concept of digital-computerized vision
testing charts for Indian context, he secured copyright of Digital Vision Testing
equipment (VARIANT). His expertise consists in power electronics, transformers,
circuit designing, fault finding in electronic equipment, providing out of the box
solutions in product development, solar systems integration.
Some of his remarkable technology developments can be listed as:
• Fabrication of switched reluctance motors - in 2010
• Development of Digital Vision Testing equipment (VARIANT) for
Ophthalmic-subjective vision testing in the Indian context, using Embedded
technology – 2006
• Design and fabrication of Foot switch for Operating Microscope (new
Business
50 Entrepreneurship - VI concept) – 2006
• Design of LED drivers (low loss) – 2005 Entrepreneurship and
Service Sector
• Design and fabrication of ignition system for industrial ovens – 2004
• Design and fabrication of Language Lab recorders – 2003
NOTES
• Design of electronic ballasts – 2002
• Fabrication of Steering engine model – 2000
• Development of Live-line sensor for overhead electrical wires – 1998
• Design and fabrication of e-bicycle - 1997
• Design of battery charger for sub-station batteries (new approach) –
1988
• Design and fabrication of Extra high tension transformers – 1987
• Transformers design and fabrication – 1985
• Design and fabrication of audio systems – 1984
• Design and fabrication of servo stabilizer - 1982
He has an unending passion of learning new concepts. He loves mentoring

young students. Ever ready to extend his help to the students, he has worked as
resource person / supervisor for hundreds of projects for BE and ME students.
Some of the projects executed by him over the past few years are:
1. Wireless transmitter;
2. Design of servo stabilizer;
3. Design of audio systems;
4. Design of electronic ballasts;
5. Designing UPS;
6. Live-line sensor (new concept);
7. Battery charger for sub-station batteries (new approach) (new
concept);
8. Transformers design and fabrication;
9. Extra high tension transformers;
10. Ignition system for Industrial Ovens (new concept);
11. Foot switch for Operating Microscope (new concept);
12. Remote controlled vision testing charts ( new concept);
13. Language Lab recorders;
14. e-Bicycle;
15. Sterling engine model;
Business
Entrepreneurship and 16. Free energy machine based on magnets and coils (Switched
Service Sector reluctance motors) and Vedic physics (new concept);
17. Vision testing charts (digital and computerized) (new concept).
NOTES He has been associated with Technology Innovation and Entrepreneurship
Center (TIEC) in collaboration with SGGS Institute of Engineering and Technology,
Nanded. Particularly he is passionate about development of new products with
“Make in India’ concept. With a vast professional experience of 34 years in
electronic product development, presently he is pursuing writing of a handbook on
‘Practical Electronics’.
He has tremendous liking for Music and is a very talented guitarist. He
inherited this fine art from his mother ‘Sangeet Alankar’ K. Seeta. He is a rare
combination of Electronics and Music.
3.5 Summary
Services are intangible, perishable, highly variable and inseparable from
the service provider. Services are basically intangible in nature. Customers need
to be conveyed tangible cues so as to enable them to judge quality of services.
They cannot be stored. They are perishable. It becomes challenging to manage
demand-supply mismatches in service enterprises. Services are variable depending
upon the people involved in service delivery process. Heterogeneity of services
has to be carefully monitored and controlled through proper selection and training
of service personnel, use of machinery and technology. For reducing degree of
variability, technology has to be deployed to provide best services efficiently at
low prices. Service entrepreneurs should introduce flexibility in services and try to
customize services to the needs of customers. Branding is an appropriate way to
create a unique position in the mind of customers and differentiate service offering
from competitors. Moreover, it is not easy to judge customer expectations in
services. Service entrepreneurs need to recognize the criteria for evaluation of
services and then provide appropriate tangible cues to customers so as to develop
superior quality appeal based on the criteria. They are required to respond quickly
to customer problems and complaints and provide suitable solutions. Employees
play a prominent role in the service delivery process. They are instrumental in
conveying quality and brand image in serves through their promptness, efficiency,
courtesy and manners. Recruitment, selection and training of employees need to
be a high priority task for ensuring right attitude and appropriate behavior.
Services cannot be transported. Service enterprises tend to be small.

Many service enterprises are labour intensive. It is difficult to achieve
standardization in level and quality of service. For some service legal and ethical
barriers exist. It is not easy to predict demand for services. Service enterprises
often encounter difficulties entering foreign markets. They encounter difficulties
in establishing large market shares. Sales, production and consumption of services
take place simultaneously. Services cannot be demonstrated. No sample of services
can be sent for approval or trial. For prospective customer, service does not exist.
The service industry has been growing during the recent past. There are
a number of reasons which contribute to the growth of the service sector such as
greater life expectancy, increasing income levels, increasing affluence, more leisure
Business time, wide availability of new products and gadgets, availability of credit facilities
and credit cards, greater concern for ecology and scarcity of resources, complexity Entrepreneurship and
of life, higher percentage of working women. Service Sector
The growth in the service sector is reflected in the availability of wider

range of services. There are different types of service enterprises in operation.
NOTES
Services are classified on the basis of end users as consumer services,
business to business services and industrial services. The degree of tangibility of a
service categorizes services as highly tangible, highly intangible, and services linked
to tangible goods. Based on expertise and skills of the service provider, there are
two categories – professional and non-professional services. Services can be
categorized as traditional services, modern services and new generation services.
On the basis of focus on profit orientation, services are classified as commercial
and not-for-profit services. Commercial services are classified as housing services,
recreation, personal care, business and other professional services, insurance and
financial services, transportation. Some services are in the form of tangible actions
directed at people’s bodies. Some services are intangible actions directed at people’s
mind. There are services which are in the form of tangible actions directed at
goods and other physical possessions. Some services are intangible actions directed
at intangible assets. For some services, there is membership relationship between
service provider and the customers and delivery of service is continuous. There
are services with no formal relationship between service organization and customers
and which provide continuous delivery of service to customers. Some services
are provided with discrete transactions. For some services there are wide demand
fluctuations over time and peak demand can usually be met without a major delay.
There are some services with wide demand fluctuations over time and peak demand
regularly exceeds capacity. For some services with wide fluctuations over time,
peak demand can usually be met without a major delay. There are some services
with narrow demand fluctuations over time where peak demand can usually be
met without a major delay. Some services are customized to a large extent. Some
highly customized services require judgement of the contact personnel regarding
developing the service offer and delivering it to each customer. Customers may
go to service providers or service providers may go to customers for certain services.
For some services, customers and service providers transact through mail or
electronic communication. Some service outlets have only single site while there
are multiple sites for some services. Some services are equipment based and
some services are people based. People-based services are provided by skilled or
unskilled workers or by professionals. Some services require client’s presence.
Some services fulfill a personal need and some services cater to a business need.
On the basis of different classification schemes of services, entrepreneurs
comprehend a framework of service businesses. They become aware about the
nature and common features of those businesses. There are tremendous
opportunities to choose from for being a successful service provider. Services
keep expanding in nature, range, sophistication, and complexity.
3.6 Key Terms

• Economic activities: These refer to human activities which generate
income
• Gross Domestic Product (GDP): It is one of the primary indicators to
assess the health of a country’s economy. It represents the monetary Business
Entrepreneurship and value of all goods and services produced within a nation’s borders in a
Service Sector specified time period.
• Quaternary sector: A knowledge and skill based portion of the economy
that usually involves services related with computing, information
NOTES
technology, media, research and development, consultancy, financial
planning etc.
• Quinary activities: Services that focus on the creation, re-arrangement
and interpretation of new and existing ideas, data interpretation and use and
evaluation of new technologies, often referred as ‘gold collar’ professions
which deal with special skills of senior business executives, government
officials, research scientists, financial and legal consultants etc.

Questions
1. Discuss the role of service sector in the Indian economy.

2. Explain the key factors which have contributed to the growth in service
sector.
3. Write a note on various types of services.
4. Briefly explain the characteristic features of services
5. Briefly describe the obstacles in service marketing.
6. How services are classified ?
Exercise
Activity 3.1
Meet at least three service entrepreneurs and ask them about the nature
of their work. Seek information about identification of business opportunities by
these entrepreneurs.
1. Which one of the following is the right alternative?

i. It is not possible to see, taste, feel, hear, smell or touch services
before purchasing them.
ii. Services are sold first, then produced and consumed at the same
time
iii. Services are highly variable
iv. All the above
2. Intangibility of services implies ———
i. The service itself cannot be emphasized
Business
ii. It is difficult to evaluate a service before purchasing it Entrepreneurship and
Service Sector
iii. There is a need to focus on the benefits or satisfactions a consumer
can avail after buying the service
iv. All the above NOTES
Answers
i. iv
ii. iv
3.8 Further Reading

https://www.entrepreneur.com/article/80684
Venugopal Vasanti, V.N. Raghu, Services Marketing, Himalaya
Publishing House, Mumbai, 2002
Wakalkar Chetan S., Fundamentals of Services Management, Everest
Publication House, Pune, 1996
Business
Rural Entrepreneurship
UNIT4 : RURAL ENTREPRENEURSHIP
NOTES
Structure
4.0 Introduction
4.1 Unit Objectives
4.2 Rural Entrepreneurship
4.3 Need for Rural Entrepreneurship
4.4 Challenges Faced in Rural Entrepreneurship
4.5 Benefits of Rural Entrepreneurship
4.6 Role of Government
4.7 Profiles of Successful Rural Entrepreneurs
4.8 Summary
4.9 Key Terms
4.0 Introduction
“India lives in its villages”-Mahatma Gandhi.
In India the majority of the population lives in villages. Our country largely
depends for itseconomic development on the growth of rural areas and the standard
of living of rural masses.In the national economy, primarily in the rural development,
village or rural industries play animportant role.
It is imperative to promote inspireand createrural entrepreneurship and local
entrepreneurial talent to enablesubsequent growth of rural enterprises. Either inside
or outside of agricultureit recognizes opportunity in the rural areas and accelerates a
unique blend of resources. By producing new means of production, new marketplaces,
and new products and creating employment chances thereby ensuring constant rural
growth, rural entrepreneurship brings an economic value to the rural sector.
In the economic development of a country and of regions inside the country
rural entrepreneur is one of the most significant inputs. By starting Industrial and
business enterprises for value added agricultural products and services in the rural
segment of the economycan grow rapidly and inclusively. Rural entrepreneurs are
those who carry out entrepreneurial activities in rural areas.
Beginning industrial and business units in the rural areas refers to rural
entrepreneurship. Rural entrepreneurship can be one of the measured solutions to
reduction of poverty, immigration, economic difference, joblessness and develop
Business
rural areas and backward regions.
More than ever before development of rural areas hasbeen interconnected Rural Entrepreneurship
to entrepreneurship. Entrepreneurship is now observed as a strategic development
interference that could quicken therural development process by organizations
and individuals encouraging rural development.
NOTES
Entrepreneurship stands as a vehicle to expand the quality of life for
individuals, families and societies and to sustain a healthy economy and
environment. Directly and indirectly, the majority of the rural population depends
on farming, fishery, animal husbandry, forestry or rural wage labour related with
plantations and farmsteads, along with subsidiary activities related to rural townships.
Rural entrepreneurship development strategies aim at expanding rural
economic activities, whichinclude the development of non-farm economic activities
and simplifying the evolution of informalactivities into the formal growth sector.
In this unit, we are going to discuss about rural entrepreneurship, the need
of rural entrepreneurship, the challenges faced in rural entrepreneurship, the benefits
of rural entrepreneurship and the role of government.
4.1 Unit Objectives

After going through this unit, you will be able to:
• Explain rural entrepreneurship
• Explain the need of rural entrepreneurship
• Describe the challenges faced in rural entrepreneurship
• Explain the benefits of rural entrepreneurship
• Describe the role of government.
4.2 Rural Entrepreneurship

Rural entrepreneurship has arisen as a dynamic concept. It is generally
defined asentrepreneurship emerging at village level which can take place in a
variety of fields of attempt such as commercial, manufacturing, agriculture and
acts as an effective factor for economic development.
“Entrepreneurship development at village level which can take place in a
variety of fields of enterprise such as business, industry, agriculture and acts as a
powerful factor for economic development can be defined as Rural
Entrepreneurship.”
Check Your
In simple words, rural entrepreneurship suggests entrepreneurship Progress
developing in rural areas. In other words founding industries in rural areas refers
to rural entrepreneurship. This means rural entrepreneurship is identical with rural 1. Define the term
industrialization. Rural Entrepreneur-
ship.
According to Khadi and Village Industries Commission (KVIC), “Any
industry located in rural areas, the population of which does not exceed 1,000 or
such other figure which produces any goods or reduces any services with or
without the use of power and in which the fixed capital investment per head of an Business
artisan or a worker does not exceed thousand rupees is known as village industry Entrepreneurship - VI 57
Rural Entrepreneurship or rural industry”. So as to increase its scope, the definition of village industry has
been recently modified by the Government of India. According to Government of
India, “Any industry located in rural areas, village or town with a population of
20,000 and below and an investment of 3 crore in plants and machinery is classified
NOTES as a village industry”.
4.3 Need for Rural Entrepreneurship

As Industrial units started by rural entrepreneurs are providing much
employment to men than machines there is a rising need for rural entrepreneurs.
Because of additional employment occasions, it has high potential for income
generation in rural areas.
It also envisages wide dispersal of economic activities in rural areas.There
has not been much progress and development of rural entrepreneurs in spite of
increasing need for rural entrepreneurs.
The following measures are to be applied for development of rural
entrepreneurs.
i. There should be free and continuous supply of raw materials as raw
materials generate the basic element of industry. Continuous supply of
raw materials guaranteesconstant and smooth production process.
ii. Rural entrepreneurs face inadequacy of capital which is observed as
the life blood of business unit. Establishment for sufficient capital will
comfort development of rural entrepreneurs.
iii. Establishing Industrial and business infrastructure in rural areas such as
Road, Power, Water, Telecommunication, Banking services, Hotels etc.etc.
Types of Rural entrepreneurship
Rural industry or village industries aregenerally classifiedinto the following
categories:
1. Agro Based Industries
This category of village industries involves direct sale or processing of
agrobased products such as dairy and dairy products, Vegetable processing, fruit
processing such as fruit juices or pulps, pickles, jiggery, processing ofoil from oil
seeds, sugar industries, spices, cleaning and grading of grains, cereals, Pulses Millsetc.
2. Forest Based Industries
Forest based industries include products manufactured from processing
raw material from forest such as wooden products, bamboo products,
beedimaking, coir industry, honey making, etc.
3. Mineral Based Industry
These include quarrying, rock crushing, cement industries, wall
coatingpowders etc.
4. Textile Industry
These include Cotton Ginning and Pressing, knitting, dyeing, spinning and
Business
58 Entrepreneurship - VI bleaching, sericulture etc.etc.
5. Handicrafts Rural Entrepreneurship
These include making of wooden or bamboo handicrafts thatare local to

that area, old-fashioned decorative products, toysand all other forms of handcrafts
typical to the region.
NOTES
6. Engineering and services
These include agricultural tools, tractors and pump sets, repairs etc. Check Your
Progress
2. Explain the need for

Rural Entrepreneur-
4.4 Challenges faced in Rural Entrepreneurship ship.
Developing entrepreneurship,predominantly rural entrepreneurship, is not
so easy. It is controlled by numerous problems. Following are some of the challenges
faced by rural entrepreneurs:
1. Finance
Of any business entity finance is the life force. Most of the rural
entrepreneurs are mostlyworried to raise the finance for their businesses. Non
availability of satisfactory collateral security often shells the chances of rural youth
in attaining adequate funds in time to set up their own project. Due to this, the
entrepreneurs are required to take credit from village money lenders who charge
excessive rates of interest.
2.Knowledge
Among the rural youth there is absence of sufficient knowledge of
entrepreneurial opportunities as well as skills. The educated and skilled youths
generally leave for urban destinations in search of jobs.
3. Technical know-how
On account of the imperfect education system rural youth lack managerial,
professional, mechanical know-how which is a weakness in developing the spirit
of enterprise, hence not many people come forward to create self-employment
units.
4. Enterprising skill
Most of the rural people in India lack risk bearing ability, financial rationale,
marketing knowledge and skills hence they arereluctant to engage themselves
with business.Inclination towards wage employment, and absence of creative
thinking are few more reasons which have controlled the development of self-
employment in rural area.
5. Infrastructural facilities
Rural areas are measured by poor infrastructural facilities viz, roads, water,
market, power, street lighting, road transport, storage and communication etc. which
hinder the smooth movement of various industrial activities not only for the rural
entrepreneurs but also for those from urban areas desiring to set up their unit in
rural areas as it works out better for their project viability.
6. Unfavourable social, cultural and industrial environments
Social evils, caste systems, negativity, religious misconceptions, particularly
Business
in the country side, do not allow growth of adventurous spirit. Lack of skill and Entrepreneurship - VI 59
Rural Entrepreneurship expertise in labourers, their tendency to wander to cities and consumer’s habit to
buy goods produced by big companies generate many problems for fresh
entrepreneurs.
7. Communication
NOTES
Communication plays a vital role in any business, the absence of access
to the right information and an effective communication createshardship for rural
entrepreneurs to recognize market trends and policies investigated by the government
on industrialization.
8. Skilled labour
Skilled labours cannot be found simply by the entrepreneurs in rural areas.
Due to high salary highly skilled personnel prefer to work in big cities than rural
areas.
9. Low quality products
Nowadays, the consumers are more thoughtfulof the quality of the product.
But, due to poor quality of raw materials and absence of consistent tools and
equipment rural entrepreneurs cannot produce competitive products.
10. Risk bearing ability
Due to absence of financial resources and outside support rural
entrepreneurs have low risk bearing ability. So, they tend to limit their capital
infusion in their enterprises which is much needed to make the venture successful.
11. Competition
From urban entrepreneurs and larger scale organizations rural
Check Your entrepreneurs are facing threatening competition. Due to lack of standardization
Progress and branding of the products they cannot contest with the city entrepreneurs.
3. Describe the chal- 12. Middlemen

lenges faced by rural
For marketing their products rural entrepreneurs primarily depend on
entrepreneurs.
middlemen. But they are cheated by offering low prices to their goods.
4.5 Benefits of Rural Entrepreneurship

Following are the benefits of rural entrepreneurship:
1. Creating employment opportunities
Rural entrepreneurship is manpowerintensive and offers a clear solution
to the rising problem of unemployment. Development of industrial units in rural
areas through rural entrepreneurship has high potential for employment generation
and income creation.
2. Check on migration
Rural entrepreneurship can fill the big hole and changes in income of rural
and urban people. Rural entrepreneurship will bring in or raise infrastructural
facilities like power, roads, bridges etc. It can help to contain the relocation of
people from rural to urban areas in search of jobs.
Business
3. Regional Growth Rural Entrepreneurship
Rural entrepreneurship can dismiss the attention of industrial units in urban

areas and endorseequitable regional development in a steady way.
4. Promotion of art and handicrafts NOTES
Through rural entrepreneurship the age-old rich inheritance of rural India

is preserved by protecting and endorsing art and handicrafts.
5. Check on social evils
The development of rural entrepreneurship can decrease the social evils
like poverty, growing of slums, contamination in cities etc.
6. Awaken the rural youth
To accept entrepreneurship and endorse it as an occupation rural
entrepreneurship can awaken the rural youth and expose them to various avenues
and prospects.
7. Improved standards of living
Rural entrepreneurship will also increase the literacy rate of rural
population. Their education and self-employment will flourish the community, hence
increasing their standard of living.
8. Utilisation of local resources
Rural industries help in the intenseuse of local resources like labour and
raw materials for productive purpose and which raises the overall productivity
and value addition of agricultural and allied products. An efficient, effective and
optimum use of limited resources by therural entrepreneursleads towards overall
economic development of that region.
9. Foreign exchange
Through export of their produce rural entrepreneurship plays significant
role in growing the foreign exchange earnings of the country.
10. Improvement in per capita income
By emerging new opportunitiesrural entrepreneurship produces more
output, employment and wealth, thus helping to increase the per capita income of
rural people.
Check Your
11. Produces goods of consumers’ choice
Progress
Rural industries which comprise of village and cottage industries produce
4. Explain the benefits
products which are more customised and are of individual consumers’ preferences
of rural entrepreneur-
and tastes such as Paithani sarees, jewellery, artistic products etc. These products
ship.
are produced to cater to the needs of different consumers according to their
individual preferences, taste, and design.
4.6 Role of Government

In order to develop the standard of living of the people belonging to the
countryFive-Year Planning is started by the Planning Commission of India. The Business
Rural Entrepreneurship resources of the country have to be utilized resourcefully to improve the quality of
life of the people.
For rural planning, a Rural Planning and Credit Department has been set up
which is under the Reserve bank of India. This department frames polices which
NOTES
benefit in rural development. It also spreads credit for employment programs and
agricultural activities in rural areas. Under India planning, local bodies have been set
up in all states in order to grow urban areas.These urban local bodies such as the
municipal corporation and thePanchayat see to it that the services and basic
organization are well preserved. India planninghas helped develop the quality of life
of the people. The Indian government must make efforts so that it continues to do.
Development Planning- Development Planning has enabled the use of the
resources of the country for the common good of the people and also to grow the
country. Planning in India dates back to the 1930s, even earlier independence, and
the colonial government had established a planning board that continued from
1944 to 1946.
Private industrialists and economists issued three development plans in
1944. To substitute growth and social justice, India’s leaders accepted the principle
of formal economic planning soon after independence as an operative way to
interfere in the economy. The Planning Commission has been assigned with the
accountability of the creation, development and execution of India’s five year
plans. India’s five year plans are also supervised by the Planning commission. The
Planning Commission was established in 1950.
The first five year plan (FY 1951-55) was presented by Jawaharlal Nehru
in 1951 and was introduced at the end of the chaos of partition of the country. It
gave importance to farming, irrigation and power projects to lessen the countries
reliance on food grain imports, resolve the food crisis and comfort the raw material
problem especially in jute and cotton. The First Five-Year Plan tried to provoke
balanced economic development while modifyingdifferences caused by World War
II and partition.
• The First five year plan dealt with seven kinds namely Farming as
well as communal development, Energy as well as Irrigation,
Infrastructures and transport, Land reintegration, Social services,
miscellaneous, Industrial sector.
• The Second five year plan (FY 1956-60) was introduced in a climate
of economic prosperity, industry increased in distinction. Agriculture
programs were framed to meet the raw material requirements of industry,
furthermore covering the food needs of the growing population. The
Industrial Policy of 1956 was socialistic in nature. The plan aimed at
25% rise in national income. By difference, the Second Five-Year Plan
highlighted industrialization, particularly basic, heavy industries in the
public sector, and expansion of the economic infrastructure. The plan
also stressed social goals, such as more equal supply of income and
extension of the benefits of economic development to the large number
of underprivileged people.
• The Third Five-Year Plan (FY 1961-65) targeted at a
substantialincrease in national and per capita income while growing the
industrial base and modifying the neglect of agriculture in the previous
plan. The third plan called for national income to grow at a rate of more
Business than 5 percent a year; independence in food grains was expected in the
62 Entrepreneurship - VI mid-1960s.
• Due to Failure of Third Five Plan because of thedeflation of rupee for Rural Entrepreneurship
increasing the exports and inflationary recession directed to the
postponement of Fourth Five Year Plan and Three Annual Plans were
introduced. The current food shortage anddisaster in agriculture required
the importance on agriculture during the Annual Plan. NOTES
• The Fourth Five-Year Plan (FY 1969-73) called for a 24 percent growth
over the third plan in real terms of public development expenses. The
public sector accounted for 60 percent of plan expenses, and foreign aid
contributed 13 percent of plan financing. Agriculture, including irrigation,
received 23 percent of public expenditures; the rest was mostly spent on
electric power, industry, and conveyance. Although the plan projected
national income growth at 5.7 percent a year, the realized rate was only
3.3 percent.
• The Fifth Five-Year Plan (FY 1974-78) was recruited in late 1973
when crude oil prices were growing rapidly; the increasing prices quickly
forced a series of amendments. The plan was subsequently approved in
late 1976 but was finished at the end of FY 1977 because a new
government wanted different meanings and programs. The fifth plan
was in effect only one year, though it provided some guidance to
investments throughout the five-year period. The economy operated under
annual plans in FY 1978 and FY 1979.
• The Sixth Five-Year Plan (FY 1980-84) was planned to be supple and
was based on the principle of annual “rolling” plans. It called for
development expenditures of nearly Rs1.9 trillion (in FY 1979 prices), of
which 90 percent would be supported from domestic sources, 57 percent
of which would come from the public sector.Public-sector development
expenditure would be concentrated in energy (29 percent); agriculture
and irrigation (24 percent); industry including mining (16 percent);
transportation (16 percent); and social services (14 percent). In practice,
to some extent more was spent on social services at the expense of
transportation and energy. The plan called for GDP growth to increase
by 5.1 percent a year, a target that was exceeded by 0.3 percent. A
chief objective of the plan was to increase employment, particularly in
rural areas, in order to diminish the level of poverty. Poor people were
given cows, bullock carts, and handlooms; though, subsequent studies
indicated that the income of only about 10 percent of the poor rose
above the poverty level
• The Seventh Five-Year Plan (FY 1985-89) envisioned a
bettersignificance on the distribution of resources to energy and social
spending at the spending of industry and agriculture. In practice, the
main increase was in transportation and communications, which took up
17 percent ofpublic-sector spending during this period. Total spending
was targeted at nearly Rs3.9 trillion, of which 94 percent would be
financed from domestic resources, including 48 percent from the public
sector. The planners supposed that public savings would increase and
benefit finance government spending. In practice that increase did not
occur; in its place, the government depends on foreign borrowing for a
greater share of resources than anticipated.
• The schedule for the Eighth Five-Year Plan (FY 1992-96) was affected
by changes of government and by growing doubt over what role planning
Business
could usefully perform in a more liberal economy. Two annual plans Entrepreneurship - VI 63
Rural Entrepreneurship were in effect in FY 1990 and FY 1991. The eighth plan was finally
launched in April 1992 and emphasized market-based policy reform rather
than measurable targets. Total spending was planned at Rs8.7 trillion, of
which 94 percent would be supported from national resources, 45 percent
NOTES of which would come from the public sector.
• The schedule for the Ninth Five-Year Plan (FY 1997-2002) was framed
to act as a tool for determining the economic and social problems
prevailing in the country. The plan in fact, was born out of the
government’s understanding that the hidden economic reserves of the
country which were still not discovered should be used for the
completegrowth and benefit of the Indian economy in the coming five
years. However, this could only be done when the Indian government
offers strong support and priority to the social spheres of the country,
focusing especially on the complete removal of poverty. Taking into
thought the past weaknesses, the 9thFive Year Plan tried to formulate
new actions to pledgedevelopment in the overall economic and social
sectors of the nation. To this effort, there was mutual involvement from
the general population of India as well as the governmental agencies.
This joint private and public efforteventually assured development of the
Indian economy.
• Tenth Five-Year Plan (FY 2002-07) -The objective of the tenth plan
was to make the Indian economy the fastest growing economy in the
world, with a growth target of 10%.It wanted to bring in investor friendly
market improvements and make a friendly environment for growth. It
required active participation by the private sector and increased FDIs in
the financial sector. Tenth Five-Year Plan in nutshell motivated on
increasing the mobility of all the available financial resources of India,
and increasing them as well, Setting up of a state-of-the-art infrastructure
for all the existing industries in India, Inspire the initiative of capacity
building within the Indian industrial sector,Making a friendly, sociable
and enjoyable investment environment in India, inspiringsufficient
transparency in the corporate sectors of India, and introduction of reforms
in the industrial sectors, which are more investor-friendly in nature.
• The schedule for the Eleventh Five-Year Plan (FY 2007-12) has the
objective to increase GDP growth to 10%, growing agricultural GDP
growth to 4% per year to guarantee a wider spread of benefits. Creating
70 million new work occasions, increasing minimum standards of
education in primary school, reduction infant mortality rate to 28 and
malnutrition among children of age group 0-3 to half of its current
level.Protecting electricity connection to all villages and rise forest and
tree cover by five percentage points.
• Four decades of planning show that India’s economy, a mix of publicand
private enterprise, is too large and varied to be solelyexpectable or
receptive to directions of the planning authorities. Actual results usually
differ in important respects from plan targets.Major insufficiencies include
inadequate improvement in income distribution and development of
poverty, postponed completions and cost overruns on many public-sector
projects, and far too small a return on many public-sector
investments.Even though the plans have turned out to be less active
than expected, they help guide investment significances, policy references,
Business and financial enrollment.
NITI Aayog Rural Entrepreneurship
The National Institution for Transforming India, also called NITI Aayog,
was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog
is the premier policy ‘Think Tank’ of the Government of India, providing both
NOTES
directional and policy inputs. While designing strategic and long term policies and
programmes for the Government of India, NITI Aayog also provides relevant
technical advice to the Centre and States.
The Government of India, in keeping with its reform agenda, constituted
the NITI Aayog to replace the Planning Commission instituted in 1950. This was
done in order to better serve the needs and aspirations of the people of India. An
important evolutionary change from the past, NITI Aayog acts as the quintessential
platform of the Government of India to bring States to act together in national
interest, and thereby fosters Cooperative Federalism.
At the core of NITI Aayog’s creation are two hubs – Team India Hub and
the Knowledge and Innovation Hub. The Team India Hub leads the engagement
of states with the Central government, while the Knowledge and Innovation Hub
builds NITI’s think-tank capabilities. These hubs reflect the two key tasks of the
Aayog.
NITI Aayog is also developing itself as a State of the Art Resource Centre,
with the necessary resources, knowledge and skills, that will enable it to act with
speed, promote research and innovation, provide strategic policy vision for the
government, and deal with contingent issues.
Functions of NITI Aayog

(i) To evolve a shared vision of national development priorities sectors and
strategies with the active involvement of States in the light of national
objectives
• To foster cooperative federalism through structured support initiatives
and mechanisms with the States on a continuous basis, recognizing that
strong States make a strong nation
• To develop mechanisms to formulate credible plans at the village level
and aggregate these progressively at higher levels of government
• To ensure, on areas that are specifically referred to it, that the interests
of national security are incorporated in economic strategy and policy
• To pay special attention to the sections of our society that may be at risk
of not benefiting adequately from economic progress
• To design strategic and long term policy and programme frameworks
and initiatives, and monitor their progress and their efficacy. The lessons
learnt through monitoring and feedback will be used for making innovative
improvements, including necessary mid-course corrections
• To provide advice and encourage partnerships between key stakeholders
and national and international like-minded Think tanks, as well as
educational and policy research institutions.
• To create a knowledge, innovation and entrepreneurial support system
through a collaborative community of national and international experts,
practitioners and other partners. Business
Rural Entrepreneurship • To offer a platform for resolution of inter-sectoral and inter- departmental
issues in order to accelerate the implementation of the development
agenda.
• To maintain a state-of-the-art Resource Centre, be a repository of
NOTES
research on good governance and best practices in sustainable and
equitable development as well as help their dissemination to stake-holders
• To actively monitor and evaluate the implementation of programmes
and initiatives, including the identification of the needed resources so as
to strengthen the probability of success and scope of delivery
• To focus on technology up gradation and capacity building for
implementation of programmes and initiatives
• To undertake other activities as may be necessary in order to further the
Check Your execution of the national development agenda, and the objectives
Progress mentioned above
5. Explain the role of (ii) National Institute of Labour Economics Research and Development
Government in Rural (NILERD)
Entrepreneurship.
The NITI Aayog is the successor in interest to the Planning Commission.
4.7 Profiles of Successful Rural Entrepreneurs

Mansukhbhai Jagani, Madanlal Kumawat, Mansukhbhai Patel, Chintakindi
Mallesham and Mansukhbhai Prajapati these rural entrepreneurs whose “inventions
are changing lives” of the people across the countryare among Forbes’s list of
seven most powerful rural Indian entrepreneurs.
1. Mansukhbhai Jagani:
Mansukhbhai Jagani hasdeveloped a motorcycle-based tractor for India’s
poor farmers, which is both cost effective - costing roughly Rs. 20,000/-, and fuel
efficient (it can cultivate an acre of land in 30 minutes with two litres of fuel).
After 4-5 years of experimentations, Mansukhbhai developed an attachment for a
motorbike — a multi-purpose tool bar — in 1994. This could be attached to any
325cc motorcycle by substituting the rear wheel with an assembly unit.
The ‘super plough’ named Bullet Santi (a cultivator that pulverizes or
smoothens the soil is locally called as santi), can carry out various farming activities
like furrow opening, sowing, inter-culturing and spraying operations.
2. Mansukhbhai Patel :
Mansukhbhai Patel , a farmer hasdesigned a cotton stripping machine
that has expressively cut the cost of cotton farming and revolutionized India’s
cotton industry. Patel, who studied up to Class X, developed a cotton-stripping
machine in 1991. Patel’s machine helps in removing cotton from semi opened and
unopened shells of various cotton varieties. The machine has won a U.S. patent.
3. Mansukhbhai Prajapati:
Mansukhbhai Prajapati, a potter, developed a clay non-stick pan that
costs 100 and a clay refrigerator that runs without electricity for those who cannot
Business have plentiful moneyto buy a fridge or their electricity and maintenance costs. Prajapati
told during the 2001 earthquake, all earthen pots were broken. “Some people told me Rural Entrepreneurship
the poor people’s refrigerators are broken. They referred to the ‘matkas’(pots) as
refrigerators. It struck me then that I must try to make a fridge for those who cannot
afford to buy a fridge,” says Prajapati.The patent winning Mitticool has been the
most challenging product for him. It needed a lot of examining. He started work on NOTES
it in 2001; the product was finally ready by 2004.
In 2005, he started the non-stick tava (pan) business. “My wife could not
buy a non-stick tava as it was costly. So I assumed many people would be facing
the same problem. That’s when I designed the non-stick tavas, priced between 50-
100,” he says.
4. Dadaji Ramaji Khobragade:
Dadaji Ramaji Khobragade, who has created the HMT rice, a highly
successful rice variety which produced 80 percent more rice than the conservative
variety.HMT is now grown all over India, on 100,000 acres in five states.
5. Madanlal Kumawat:
Madanlal Kumawat, a grassroots innovator with no more than a fourth-
grade education, developed a fuel-efficient, multi-crop thresher that yields cleaner
grains, which can be caughtstraight and removes the cost of cleaning.
The modified thresher reduces setup time by less than 15 minutes to switch
over from one crop to another. Its newest variant can also handle groundnuts
apart from winnowing other cereals and pulses.
6. Chintakindi Mallesham:
Chintakindi Mallesham, inventor of the Laxmi Asu Machine, “ignited a
revolution in India’s weaving community.” Mallesham’s machine can make six
saris worth of material in one day, and “no human effort is required outside placing Check Your
thread on the machine and removing the material after the process is complete.” Progress
Weavers making the traditional ‘Tie & Dye’ Poochampalli silk sarees used to
undergo a thorough process, moving their hands thousands of times in a day while 6. Explain the qualities
weaving sarees but not anymore. Thanks to Mallesham’s patented device to of successful rural en-
mechanize this process, hundreds of weavers in Andhra Pradesh now spend less trepreneurs with suit-
time on making a variety of designs.There are around 30,000 women weavers in able examples.
Andhra Pradesh who continue to do the weaving process manually as they cannot
afford to buy the Laxmi Asu machine. They are looking for help as the government
has been unsuccessful to extend any kind of support.
4.8 Summary
Ø The majority of the population in India lives in villages. The economic
development of our country largely depends on the development of rural
areas and the standard of living of rural masses.
Ø Village or rural industries play animportant role in the national economy,
mainly in the rural development.
Ø Rural entrepreneur is one of the most important inputs in the economic
development of a country and of regions within the country. Rural
entrepreneurs are those who carry out entrepreneurial activities by
starting Industrial and business units in the rural segment of the economy. Business
Rural Entrepreneurship Ø Challenges faced in rural entrepreneurship such as absence of finance,
absence of knowledge, lack of technical know-how, absence of
enterprising skill, lack of infrastructural facilities, Adverse social, cultural
and industrial environment, Lack of market information due to poor
NOTES communication facility,Non availability of skilled labors, Low quality
products, Fear to invest in the business, Competition, middlemen.
4.9 Key Terms

• Rural Entrepreneurship: Rural entrepreneurship is that
entrepreneurship which ensures valueaddition to rural resources in rural
areas engaging largely rural human resources.
• Role of government : India planning has helped develop the quality of
life of the people. The Indian government must make efforts so that it
continues to do.

1. Explain rural entrepreneurship.
2. State the need of rural entrepreneurship.
3. Explain the challenges faced in rural entrepreneurship.
4. Explain the benefits of rural entrepreneurship?
5. Describe the role of government in rural entrepreneurship?
6. Explain government’s first five year plan in detail.
7. Explain the objective of eleventh year plan?
8. Explain the qualities of a successful Rural Entrepreneur of India with
suitable example
9. Write a note on NITI Aayog
10. Describe the functions of NITI Aayog
1. Rural entrepreneurship implies entrepreneurship emerging in rural areas.
a) True b) False
2. Entrepreneur is the person who performs their operation……….
(a) Independently (b) Dependently
(c) Personal capital investment(d) Both a &c
3. Entrepreneur is a factor of ……….
(a) Microeconomics (b) Macroeconomics
Business (c) Economics (d) All of the above

4. Entrepreneur actually starts setting up of an enterprise by........ Rural Entrepreneurship
(a) Planning (b) Organizing (c) Staffing (d) Directing

5. The period of Eleventh Five-Year Plan was....?
NOTES
a) FY 2007-12b)FY 2008-13 c)FY 2006-11 d)FY 2005-09
6. The economy operated under annual plans in which years?
a) FY 1978 and FY 1979 b) FY 1977 and FY 1979
c) a)FY 1978 and FY 1990 d) FY 1981 and FY 1982
7. Whichplanned was based on the principle of annual “rolling” plans?
a) Fifth Five-Year Plan b) Seventh Five-Year Plan
c) Sixth Five-Year Plan d) None of the Above
8. The period of Tenth Five-Year Plan was...?
a) FY 2000-05 b)FY 2001-06 c) FY 2003-08 d)FY 2002-07
9. The period ofNinthFive-Year Plan was....?
a) FY 1995-2000 b) FY 1998-2003
c) FY 1996-2001 d) FY 1997-2002
10. Recently Planning commission is replaced by?
a) Niti Aayog b) Yojana Aayog
c) Planning Aayog d) None of the Above
11. Match the following
Group-A Group-B
a) First Five-Year Plan 1) FY 1974-1978
b) Second Five-Year Plan 2) FY 1969-1973
c) Third Five-Year Plan 3) FY 1961-1965
d) Fourth Five-Year Plan 4) FY 1956-1960
e) Fifth Five-Year Plan 5) FY 1951-1955
Answers:
1. a,
2. b,
3. a,
4. d,
5. a,
6. a
7. c, Business
Rural Entrepreneurship 8. d,
9. d,
10. a,
NOTES
11. Match the Pairs
a)- 5 b)- 4 c)-3 d)-2 e)-1

A Chinese Economic Revolution: Rural Entrepreneurship in the
Twentieth Centuryby Professor Linda Grove
http://nif.org.in/innovation/Bicycle-Mounted-Sprayer/224
http://niti.gov.in/content/overview
http://www.censusindia.gov.in/2011
http://www.ftfoundation.com/english/pdf/DadajiKhobragade.pdf
http://www.planningcommission.nic.in/plans/planrel/fiveyr/welcome.html
http://www.thebetterindia.com/2564/grassroots-innovation-laxmi-asu-
machine/https://en.wikipedia.org/wiki/Kishore_Biyani.
http://www.theweekendleader.com/Innovation/597/barefoot-inventor.html
https://yourstory.com/2015/11/madanlal-kumawat/
https://yourstory.com/2016/03/mansukhbhai-prajapati/
Management Dimensions of Rural Entrepreneurshipby Saharia Ridip
Ranjan
Rural Entrepreneurship by Issa Mohamed, Venkatakrishnan V
When the Harvest Is in: Developing Rural Entrepreurship
by ShailendraVyakarnam
Business
Social Entrepreneurship
UNIT 5 : SOCIAL ENTREPRENEURSHIP
NOTES
Structure
5.0 Introduction
5.1 Unit Objectives
5.2 Social Entrepreneurship
Ecological Entrepreneurship
Sustainable Entrepreneurship
5.3 Profiles of Social Entrepreneurs
5.3.1 Sri Sri Ravi Shankar

5.3.2 Mohd. Yunus
5.3.3 Sunil Raithatha
5.4 Summary
5.5 Key Terms
5.7 Further Reading
5.0 Introduction
“Only if business learns how to convert the major social challenges
facing developed societies today into novel and profitable business
opportunities, can we hope to surmount these challenges in the future” –
Peter Drucker
Generally entrepreneurship is associated with initiation of a business venture
and entrepreneurs are assumed to be creators of small businesses. There is a
common belief that entrepreneurship means something concerned with business
and money making. However, this is not the fact. The process of social
entrepreneurship brings about social change and addresses social needs. However,
the focus is not on generation of money and maximization of profit. Instead, it
promotes social values and not economic ones and strives for social development
on a priority basis. The concept is broad and vast in orientation.
Along with small business creation, there are other perspectives attached
with entrepreneurship such as innovation, risk bearing, achievement motivation, a
function of managerial skills and leadership, a function of group level pattern,
organization building ability, establishing and managing a business venture is one Business
Social Entrepreneurship of the aspects of entrepreneurship. To quote J. B. Say, “entrepreneurs are the
venturesome individuals who stimulate economic progress by finding new and
better ways of doing things”. In this manner, entrepreneurs stimulate economic
progress through innovation. They are instrumental in mobilization of resources of
NOTES the society. They sense profitable economic opportunities, allocate resources and
apply those for generation of products and services to generate revenue. However,
wealth generation is only a means to an end for social entrepreneurs. They utilize
the profit generated through the ventures for social programmes which benefit the
entire society. Social entrepreneurs are motivated to contribute for societal
betterment. They do social good. They are the builders of a better world.
5.1 Unit Objectives

• Learn the meaning of social entrepreneurship

• Know about the concepts of ecological entrepreneurship and sustainable
entrepreneurship
• Be aware about benefits of social entrepreneurship
• Know about some case studies of successful social entrepreneurs
5.2 Social Entrepreneurship

The term ‘social entrepreneur’ is comparatively new in usage, but the
practice of social entrepreneurship is far from new. Florence Nightingale deserves
the label as a social entrepreneur who brought about a social change. She is the
pioneer of modern nursing and health care reforms. She revolutionalized the theory
of hospital conditions in the late 18th Century. She is known as the ‘Lady with the
Lamp’. She used to take night rounds to take care of the wounded soldiers. She
devoted her life to ensure safe and compassionate treatment for the poor and the
suffering for the sake of preventing diseases. She organized a corps of nurses to
care for soldiers and improved the sanitary conditions at a British base hospital
which reduced that death count by two-thirds during the Crimean war. During the
Victorian era, hailed from affluent British family and elite social circle, it was a
brave move to take up a job which was viewed as lowly menial labour by the
upper social classes.
From her early youth, Florence Nightingale was very active in philanthropy
and was determined about pursuing nursing for divine purpose. She was very
keen on her mission to improve hygiene practices and significantly lowered death
rate at the hospital. She contributed to improvement of quality of the hospital stay
through various patient services. She introduced the concept of an ‘invalid’s kitchen’
for cooking appealing food for patients with special dietary requirements. She
established a laundry for providing clean linens to patients. She set up a classroom
and a library entertainment and intellectual stimulation of patients. She funded the
establishment of St. Thomas Hospital in 1860 and within it the Nightingale Training
School for Nurses.
Business
Florence Nightingale became a figure of public admiration. Poems, songs, Social Entrepreneurship
plays were dedicated to her. Women aspired to be like her. Affluent women for
upper social classes opted for nurse’s profession as an honorable vocation. At the
age of 38, she had contracted Crimean fever and was homebound and bedridden
for the rest of her life and would never fully recover. She continued her work from NOTES
her bed. In 1859, she published ‘Notes on Hospitals’ which was based on proper
administration of civilian hospitals.
The term ‘social entrepreneur’ was first introduced, according to Nicholls,
in 1972 by Banks, who noted that social problems could also be deployed by
managerial practices. Social entrepreneurship is focused on social mission. Social
entrepreneurs strive for opportunities and create social value. They deal with
unsatisfied social needs. In the light of social and environmental issues, the complex
nature of these problems and their serious repercussions; the concept is gaining
visibility and prominence. It is closely related with the concept of corporate social
responsibility and corporate social innovation.
In the words of Roger L. Martin and Sally Osberg, the social entrepreneur
targets its programmes at the “undeserved, neglected or highly disadvantaged
population that lacks the financial means or political clout to achieve the
transformative benefit on its own”.
Austin, Stevenson and Wei-Skillern define social entrepreneurship as

‘entrepreneurial activity with an embedded social purpose”.
According to J. Gregory Dees, social entrepreneurship “combines the

passion of a social mission with an image of business-like discipline, innovation
and determination”.
According to Roger L. Martin and Sally Osberg, “social entrepreneur

aims for value in the form of large-scale, transformational benefit that accrues
either to a significant segment of society or to society at large”.
According to J. Gregory Dees, social entrepreneurship is necessary to

mitigate the financial repercussions on the most vulnerable in society. To quote
him, “fewer people will receive adequate health care. Because of the financial
burden that formal education can place on parents, fewer children will attend
school. Tensions and violence may increase as the poor compete for jobs and
income opportunities.— Progress will be lost, as families that have been successful
in moving out of poverty fall back into it … As government, business and household
budgets tighten costly environmental protection and clean-up efforts are in
jeopardy…. Because many social and environmental issues are time sensitive,
failure to recognize the importance of social entrepreneurship and provide adequate
support for such efforts during this downturn would be a serious mistake”. He
explains the defining characteristics of social entrepreneurs as social catalysts,
socially aware, opportunity seeking, innovative, resourceful and accountable. Social
entrepreneurs are the visionaries. They are the change agents who reform social
systems and create sustainable developments in education, health, environment,
or any other social field. Usually social entrepreneurs deal with local problems.
These problems have global relevance. They start with small, local efforts. The
impact of these actions is far reaching. The social entrepreneurs are motivated by
social welfare and societal improvement. They are not interested in creation of
profits. Their performance is appraised by the social impact and on the basis of Business
Social Entrepreneurship extent of profitability. They are creative, and are always in search of a new
opportunity to bring about social change for betterment of the community. They
are resourceful. They are not discouraged by resource constraints. They are known
for optimum utilization of available resources. They are capable of seeking needed
NOTES resources through collaborations. They are ready to accept failure; rather they
view failure as a learning opportunity and modify their plans and ideas accordingly.
They are accountable to their beneficiaries and also their investors. They are
particular about their own actions, and the impact of those actions on the
beneficiaries. They also pay attention to the satisfaction of the investors in terms
of the social needs promised to them.
According to Dees, social entrepreneurs play the role of change agents in
the social sector by
• adopting a mission to create and sustain social value (not just private
value)
• recognizing and relentlessly pursuing new opportunities to serve that
mission
• engaging in the process of continuous innovation, adaptation and learning
• acting boldly without being limited by resources currently in hand
Check Your • exhibiting a heightened sense of accountability to the constituencies
Progress served and for the outcomes created
1. J. Gregory Dess, In the words of Alvord, Brown and Letts, social entrepreneurship creates
innovative solutions to immediate social problems and mobilizes the ideas, capacities,
explains the defining
resources and social arrangements required for sustainable social transformations.
characteristics of so-
cial entrepreneurs as Said Business School defines social entrepreneurship as a professional,
—- innovative and sustainable approach to systemic change that resolve social market
failures and grasps opportunities.
Social entrepreneurs, also termed as sociopreneurs, usually start at a local
level with small scale efforts. It leads to creation of new industries, new business
models. They target problems and issues of global relevance. They offer innovative
solutions to neglected social problems and issues which impact socio-economic
system in a profound manner. In the words of Haugh, “social entrepreneurship is
the simultaneous pursuit of economic, social and environmental goals by enterprising
ventures”.
Social entrepreneurs are entrepreneurs who focus on a social mission and
not on profit. They are interested in social value creation. However, it is not
appropriate to differentiate between these two sets of entrepreneurs on the basis
of their motivations assuming that entrepreneurs are interested in money and social
entrepreneurs are driven by social purpose. The reality is entrepreneurs are rarely
motivated by the possibility of money making. They take pleasure in sensing
opportunities, exploiting those opportunities for the betterment of the society through
creation of products/services. They may work for money or for charity; it is mostly
seen that the output or the end result may not be worth the time, risk, effort and
capital they invest in their ventures.
Entrepreneurs wish to serve markets with the need satisfying and value
added products and services to make money. Financial benefit is implied in all the
Business
entrepreneurial activities. In absence of adequate profits, the venture may not
74 Entrepreneurship - VI sustain its existence. However, social entrepreneur never anticipates substantial
profit for himself/herself or the investors. Instead, the target is enhancement of Social Entrepreneurship
value and need satisfaction to a significant part of the society. It integrates economic
and social value creation.
Social entrepreneurship has been recognized as a new type of
NOTES
entrepreneurship. It is oriented towards social wealth creation in comparison with
the approach of generation of economic wealth. These activities have far-reaching
economic consequences in terms of growth, poverty reduction, and social
development. It refers to a process or behaviour. It can be perceived as a fair and
ethical way of creating enterprises which generate surplus through their activities
where the focus is on reasonable profit or fair profit and not on profit maximization. Check Your
Social enterprise is the outcome of social entrepreneurship and social entrepreneur Progress
is the founder of the initiative. State whether the fol-
Social entrepreneurs possess the ability to sense and exploit environmental lowing is true or false:
opportunities and create value. They are characterized by the drive to innovate 2. Anyone can learn
and risk bearing attitude. the skills to be a social
European Commission defined the term ‘social enterprise’ as covering entrepreneur
the following types of businesses: those for which the social or societal objective 3. Social entrepre-
of the common good is the reason for the commercial activity, often in the form of neurship and business
a high level of social innovation; those where profits are mainly reinvested with a entrepreneurship re-
view to achieving this social objective, and where the method of organization or quire entirely different
ownership system reflects their mission, using democratic or participatory principles sets of skills and at-
of focusing on social justice. Basically, a social enterprise come up to deal with a tributes.
social cause and solve different societal problems. It strives to cater to the needs
of the society and maintain profitability. 4. The term
sociopreneur or social
Finance is one of the major challenges faced by social entrepreneurs. entrepreneur talks
Financing the growth of their organizations is more challenging than financing a about a person who
new idea. Government provides money for social ventures. But there are several practices entrepre-
hurdles in complying with the government reporting requirements and tedious neurship with a social
procedural formalities. There are various sources through which social bent
entrepreneurs finance their social enterprises such as family members, friends,
relatives and the like.
It is difficult for social entrepreneurs to attract talent and retain it. It is
problematic for them to compensate adequately to the human resources and provide
them opportunities for advancement of their career.
Assessment of performance of social entrepreneurs is not easy. It is
essential to measure the impact of such initiatives. Like ‘return on investment’,
there is a talk about ‘social return on investment’.
Ecological Entrepreneurship
According to Keogh and Polonsky, the traditional entrepreneur may see

opportunities beyond resource limitations and identify business prospects missed
by others; it is the econopreneur who assess the potential and availability of resources
through an environmental commitment and vision that pursues an eco-friendly
initiative.
In the opinion of Dixon and Clifford, ecopreneurship represents triple
drivers – environmental, social and economic.
Isaak defines ecopreneurship as a person who seeks to transform a sector
of the economy towards sustainability by starting up a business in that sector with a Business
Social Entrepreneurship green design, with green processes and with a life-long commitment to sustainability.
He speaks about the efforts of an entrepreneur who starts up a business with green
initiatives from day one, with strong commitment to transforming a sector of the
economy towards becoming more sustainable and environmentally responsible.
NOTES
Ecological entrepreneurs exhibit environmental and social concerns along
with the drive for money. They strive for improving the environment and enthuse
others also. They are creative and innovative. They work on various ideas like
green technology, green and social marketing, organic farming, socially responsible
business, environmental justice, sustainability etc.
There are four broad types of ‘environpreneurs’ viz. innovative
opportunists, visionary champions, ethical mavericks, and accidental
environpreneurs. There are different motives for being an environpreneur. The
visionary champion adopts a transformative, sustainability orientation. The ethical
maverick environpreneur is typically characterized by a sustainability orientation
and soft structural influences. Friends, networks and past experiences influence
business formation strongly in comparison with the vision of changing the world.
Ad hoc entrepreneur i.e. accidental green entrepreneur is motivated by money
and not by values. Family, friends, and personal networks influence such
entrepreneurs most.
According to Linnanen, ecopreneurs can be classified on the basis of two
criteria: i. their desire to change the world and improve the quality of environment
and life; and ii. their desire to make money and grow as a business venture.
Sustainable Entrepreneurship
Check Your
Progress Let us see what sustainability is, what is sustainable development and the
5. Name the four meaning of sustainable entrepreneurship. The term sustainability is broad and
broad types of complex in orientation. It is associated with ecology and protection of natural
environpreneurs resources. It also speaks about sustained economic progress. It refers to social
issues and also a focus on development and support of the mist disadvantaged. It
also comprises the potential of value creation. Sustainable development is the
balance between environmental, social and economic development.
The World Commission on Environment and Development of the United
Nations first described and defined sustainable development as a process in which
the exploitation of natural resources, the allocation of investment and the process
of technological development and organizational change are in harmony with each
other for both current and future generations. The concept of sustainability goes
beyond the classical theory of firm which is based on the objective of profit
maximization. Instead, it presents a long term orientation which is all-comprehensive
and focused on present and also future generations.
Sustainable entrepreneurs are those entrepreneurs who contribute to
sustainable development. They perform the business activities and orient business
in a sustainable manner. To quote Kofi Annan (United Nations Global Compact
Network): ‘….let’s choose to unite the powers of markets with the authority of
universal ideals. Let us choose to reconcile the creative force of private
entrepreneurship with the needs of the disadvantaged and the requirements of the
future generations….’.
Sustainopreneurship (a portmanteau of sustainability and entrepreneurship)

indicates finding solutions to the problems related to social and environmental
Business sustainability. It connotes ‘a business with a cause’ wherein with the help of
sustainable innovations problems are turned into business opportunities. It is similar Social Entrepreneurship
to social entrepreneurship. Social entrepreneurship basically speaks about not-
for-profit institutes and charities which focus on social problems and discovers
innovative resolutions.
NOTES
Sustainable entrepreneurship emphasizes economic efficiency and
effectiveness aspects of economic entrepreneurship. It also focuses issues like
social responsibility, socio-effectives and also future considerations. In the words
of Surinder Batra, ‘sustainable entrepreneurship is consistent with entrepreneurs
striving simultaneously for profit and for improving local and global environmental
and social conditions; and it takes into account both social aspects and environmental
effects while also considering the long-term economic and business consequences
of new venture opportunities’.
World Business Council for Sustainable Development defines sustainable
entrepreneurship as the continuing commitment by businesses to behave ethically
and contribute to economic development while improving the quality of life of the
workforce, their families, the local and global community as well as future generations.
This definition implies responsibilities of the enterprises towards the shareholders,
society, nature and also future generations. Sustainable entrepreneurship protects
the interests of all these stakeholders. The decisions and actions of sustainable
entrepreneurship are finalized in the light of all these interests.
It is said that sustainable development deals with 3Ps i.e. people, planet
and profit. ‘People’ refers to enterprise’s treatment of its human resources. People
component of the enterprise is treated with care and dignity. ‘Planet’ refers to the
impact of the enterprise on natural resources. ‘Profit’ refers to not just financial
returns of the enterprise but also to the allocation of financial returns between
investments and distribution of the gains. Human values are incorporated in business
decisions and actions with focus on various issues like fair practices, protection of
human rights, gender equality.
Janssen provided a list of ten ground rules for becoming a sustainable
entrepreneur:
1. The corporation should start reducing the environmental damage,

respecting human rights and treating its employees with great care;
2. Sustainable entrepreneurship has to be a self-initiated process and should

not simply be a response to external pressure;
3. If a corporation wants to practice sustainable entrepreneurship, it should

identify clear aims and targets
4. The aims should be closely related to the corporation’s practice and

should match the corporate values and its primary activities;
5. The aims have to be closely related to the consumer’s needs;

6. The corporation has to be capable of explaining the relationship between
sustainability and its activities and production process;
7. The corporation should adhere to these aims on a long-term basis;
Business
Social Entrepreneurship 8. Consumers and pressure groups should have a transparent overview of
investments made by the corporation related to sustainable
entrepreneurship;
NOTES 9. Sustainable entrepreneurship practiced by the corporation should not be

shifted to the consumers via a price increase; and
10. A corporation should not attempt to overemphasize its efforts.
Bos added an additional rule to the above list:
11. A corporation should make sure that its practices are shared by the
corporation as a whole, and that they are not solely efforts of the
management.
5.3 Profiles of Social Entrepreneurs

Profiles of some entrepreneurs are presented below:
5.3.1 Sri Sri Ravi Shankar

Sri Sri Ravi Shankar or famously known as Guruji is an envoy of peace,
spreading spirituality and inspiring people all over the world. Being a compassionate
leader, he founded Art of Living Foundation, an NGO in 1981 with an aim to free
people from stress, community issues, and violence by teaching them various stress
management techniques. The Art of Living is an international non-profit, educational
and humanitarian organization.
Sri Sri or Gurudev as people reverently call him was born in a place called
Paapnasam in the state of Tamilnadu, India in the year 1956 on 13th of May. To bring
smile on every face, relieve stress and eradicate violence in the society is his dream;
which has brought together people all over the world through various programs and
service projects facilitated under the Art of living. The organization relies hugely on
the strength that is its huge population of trusted and dedicated volunteers, who are
driving all of his projects forward in critical areas such as natural disasters, terror
attacks and war, communities in conflict and others around the globe.
Initial days
Sri Sri, in all through his childhood was frequently found in deep meditation.
Till he reached the age of 4, he was able to memorize and recite pieces of the holy
Sanskrit scripture Bhagvad Geeta. He did Bachelor’s degree from Banglore
University in Science. Pandit Sudhakar Chaturvedi, an associate of Gandhiji and
also a Vedic Scholar was his very first teacher. His next teacher was Maharishi
Mahesh Yogi, with whom Sri Sri travelled to many places for giving talks, establishing
Ayurveda and Transcendental meditation centers.
In the year 1980 he started chain of life transforming and practical courses
which brought transformation in the lives of people globally. In 1982, the most powerful
breathing technique, ‘Sudarshan Kriya’ came spontaneously to him just similar to a
poem. This was following the ten day span on bank of river Bhadra located in
Shimoga, Karnataka. The heart of the courses provided in Art of Living foundation
is Sudarshan Kriya which is powerful rhythmic breathing sequence. It is the foundation
stone of the organization’s pain relief and trauma releasing program.
Business
The very first course of Art of living was conducted in Switzerland in Social Entrepreneurship
1983 while North America saw its first course in Apple Valley situated in California.
He feels that there is no limit to Spirituality and should be practiced by every
person regardless of culture or religion. Also he feels that spiritual bonding is more
important than gender, religion, culture, profession, nationality or anything that NOTES
divides us. He has strong faith in “Violence-free society, disease-free body, quiver-
free breath, confusion-free mind, inhibition-free intellect, trauma-free memory,
and sorrow-free soul is the birthright of every human being”. He thinks Spirituality
and Science should work together. He highlights the significance of service to
people and spiritual/meditation practice and perceives that breath is a connection
between mind and body. It’s his opinion that, “Truth is spherical rather than linear;
so it has to be contradictory.”
There have been a large number of studies medically on its preliminary
practice and all these studies have been put in print into international journals.
Many benefits physical and mental ranging from reduced stress levels (reduced
stress hormone-cortisol), enhanced immunity, improved antioxidant fortification,
increased functioning of brain which in turn improves calmness, mental focus and
healing from traumatic stimuli, release from depression of varying degrees are
found in these medical studies. People have found inner sources of energy and
silence, peace in their day to day life. For reintegration and amalgamation of
prisoners in the society, Sri Sri initiated a prison program in 1992 which helped
them to rehabilitate.
Sri Sri’s contribution towards society

The programs of Art of living are at present offered in over 150 countries.
Sri Sri revived the old traditions of meditation and yoga and put forth in such a way
that they are applicable in today’s century. The International Association for Human
Values (IHAV), a Non-Governmental Organization was instituted in Geneva,
Switzerland in year 1997 by Sri Sri. This organization promotes human values and
engages in rural development and relief work. Many places of natural disasters
and conflict like Haiti, 2004 Tsunami and Hurricane Katrina received aid from his
volunteers, who helped the victims of the calamities. With endeavor of strengthening
and growth of human values, business ethics; he started Ethics in Business -
Corporate Culture &Spirituality dialogue. This later developed and formed into
World Forum for Ethics in Business which organizes conferences on ethics on
international level. On the purpose of spreading goodwill, he visited Pakistan in
2004. He also established centers of Art of living in Karachi and Islamabad. To
promote and encourage peace all over the world, he met many political and religious
leaders. He was also invited by Nouri al Maliki, the Prime Minister of Iraq, in the
year 2007. In September in year 2014, a one-day World summit was held on
Ethics in Sports in Zurich, FIFA headquarters. This Summit laid emphasis on
openness and morals in sports. For addressing the ominous situation of non-Muslims
and Yazidis, he went to the relief camps in city of Erbil situated in Iraq and hosted
conference for same. Presently he is on the Board of World Religious Leaders for
Elijah Interfaith Institute and also occupied in dialogues of interfaith. Sri sri engaged
leaders which are faith based for collective action against HIV through interfaith
summits in the year 2008 and 2010.He played an important role in significant
matters like prevention of HIV, violence based on discrimination in a meeting held
in headquarters of UNAIDS in Geneva. He negotiated a peace deal in between
mutineer/guerrilla movement Revolutionary Armed Forces of Colombia (FARC)
and Government of Colombia. The principles of Gandhi of non-violence was agreed
to be followed by FARC for attainment of its objectives of social justice.
Business
Social Entrepreneurship Sri Sri also resolved problems and conflicts in Ivory Coast, Iraq, Bihar and
Kashmir. He is well known for his agenda of spreading peace worldwide and also
famous as neutral figure. He lays importance on need of implementing human
values and believes that the whole world is one big family.
NOTES
‘Volunteer for a Better India’ initiative deals with many activities like free
health camps, protest against gang rape in Delhi in 2012, voter awareness and
their registrations etc.
“NONVIO” Movement was initiated all over the nation by Sri Sri’s
foundation in March 2013 for complete elimination of violence. It promotes every
person to take an oath of non-violence. This was done with the help of social
media and internet. People should implement nonviolent principles was its theme.
Being an initiator of “India against Corruption”, he was strong supporter of Jan
Lokpal bill. On its 35th anniversary, Art of living organized a grand event of three
days called as “World Cultural Festival”.
Sri Sri Ravi Shankar specializes in Prisoner Rehabilitation, Trauma Relief,
Conflict Resolution.
Sri Sri has revolutionized the ancient concept of spirituality, also ancient
traditions of yoga and meditation and presented it in a form that is more recognizable
to the 21st century thus creating new tools for the transformation of self and
society.
Publications
Sri Sri is the writer of books given below:
An Intimate Note to the Sincere Seeker
Buddha: manifestation of silence
Be a Witness: The Wisdom of the Upanishads, 1999
God Loves Fun, 2000
Celebrating Silence: Excerpts from Five Years of Weekly Knowledge
1995–2000, 2001
Celebrating Love
Narada Bhakti Sutra, 2005
Hinduism & Islam, the common thread, 2002
Secrets of Relationships, Arktos, 2014
Patanjali Yoga Sutras, Arktos, 2014
Management Mantras, Arktos, 2014
Know Your Child: The Art of Raising Children, Arktos, 2014
Awards & Recognition

For his services, he has received some of the highest awards of several
countries including India, Peru, Colombia, and Paraguay. In January 2016, he was
awarded the “Padma Vibhushan” by the Government of India. Following are among
Business the many awards he received:
• Padma Vibhushan, India’s Second Highest Civilian Award, January Social Entrepreneurship
2016
• Peru’s Highest Award, “Medalla de la Integracionen el Grado de Gran
Oficial (Grand Officer)”
NOTES
• Colombia’s highest civilian award, “Orden de la Democracia Simon
Bolivar”
• Gandhi, King, Ikeda Community Builders Prize
• Highest civilian award ‘National Order of Merito de Comuneros,
Paraguay, 13 September 2012
• Illustrious citizen by the Paraguayan Municipality, 12 September 2012
• Illustrious guest of the city of Asuncion, Paraguay, 12 September 2012
• Tiradentes Medal, the highest honour from Rio de Janeiro State,
Brazil, 3 September 2012
• The Sivananda World Peace award, Sivananda Foundation, South
Africa, 26 August 2012
• Crans Montana Forum Award, Brussels, 24 June 2011
• Culture in Balance Award, World Culture Forum, Dresden Germany,
10 October 2009
• Phoenix Award, Atlanta, USA, 2008
• Honorary Citizenship and Goodwill Ambassador, Houston, USA, 2008
• Proclamation of Commendation, New Jersey, USA 2008
• Sant Shri Dnyaneshwara World Peace Prize, Pune, India, 11 January
2007
• Order of the Pole Star, Mongolia, 2006
• Bharat Shiromani Award, New Delhi, India, 2005
• Doctorate – Universidad Autónoma de Asunción of Paraguay, Buenos
Aires University, Argentina; Siglo XXI University Campus, Cordoba,
Argentina; Nyenrode University, Netherlands; GyanVihar University,
Jaipur;[77] Kuvempu University, India
• In 2009, Shankar was named by Forbes Magazine as the fifth most
powerful leader in India.
5.3.2 Muhammad Yunus

“If you want to do something you have to imagine it. If you don’t
imagine it, it will never happen”. – Prof. Muhammad Yunus
Muhammad Yunus is a social entrepreneur, banker, economist who was
awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering
the concepts of microcredit and microfinance. Grameen founder. He was born on
28th June, 1940 in the village of Bathua, Chittagong. His father was a successful
goldsmith. His early childhood years were spent in the village. His family moved
to the city of Chittagong where his father had the jewelry business in 1947. Business
Social Entrepreneurship Yunus studied at Dhaka University in Bangladesh, then received a Fulbright
scholarship to study economics at Vanderbilt University. He received his Ph.D. in
economics from Vanderbilt in 1969 and became an assistant professor of economics
at Middle Tennessee State University. After coming back, he headed the economics
NOTES department at Chittagong University.
Professor Yunus established the Grameen Bank (GB) in 1983, based on
the belief that credit is a fundamental human right. The Bank has reversed
conventional banking practice by removing the need for collateral and created a
banking system based on accountability, mutual trust, creativity and participation.
It provides credit to the poorest in Bangladesh without any collateral. It serves as
a catalyst in the overall development of socio-economic conditions of the poor
who were not considered bankable due to their poverty. Muhammad Yunus proposed
that if financial resources can be made available to the poor people on reasonable
and appropriate terms and conditions suitable to them, “these millions of small
people with their millions of small pursuits can add up to create the biggest
development wonder” by teaching them a few sound financial principles. As on
October 2011, it has 8.349 million borrowers, 97% of whom are women and over
97% of the loans are paid back, a recovery rate higher than any other banking
system. With 2,565 branches and 19,800 staff, Grameen Bank provides services
in 81,379 villages covering more than 97% of the total villages in Bangladesh. On
any working day, the Bank collects an average of $1.5 million in weekly installments.
In 2006, Yunus and the Grameen Bank were jointly awarded the Nobel
Peace Prize “for their efforts through microcredit to create economic and social
development from below” for pioneering the concepts of microcredit and
microfinance. These loans are given to entrepreneurs too poor to qualify for
traditional bank loans. The Norwegian Nobel Committee said that “lasting peace
cannot be achieved unless large population groups find ways in which to break out
of poverty” and that “across cultures and civilizations Yunus and Grameen Bank
have shown that even the poorest of the poor can work to bring about their own
development”. Replicas of the Grameen Bank model operate in more than 100
countries worldwide.
5.3.3 Mr. Sunil Vinodrai Raithatha

Family background:
Mr. Sunil Raithatha comes from a middleclass family with commercial
culture. His lost his father when he was in school and mother was a housewife.
He has two brothers one elder and one younger. Both are independently engaged
in different vocations. He was average ranked in school with mathematics and
science which he found toughest and poorly faired in those. His uncle motivated
and supported him during his school and college days. His teacher in CTMK
School not only taught him Science and Maths taking extra periods for him and his
likes but also motivated him to pursue career in Science and Mathematics. A
nagging and constant quest for innovation in the field of Science and Technology
took him to Government Engineering College, Aurangabad. He is a gold Medalist
of 1977 batch of Engineering from Marathwada University. The spirit of
entrepreneurship was imbibed in him during this phase by the Principal of the
College Mr. Ganesh Rao which inspired him much. He was picked up by Larson
and Tubro Ltd., Mumbai as Trainee Engineer, where besides working he kept on
lookout for new friends who were entrepreneurs and new products which could
be developed, produced and marketed.
Business
Journey so far: Social Entrepreneurship
After his initial stint of four years with L & T, Mumbai which gave him
vast experience in Trade, industry and Commerce which keeps helping him even
right now he was restless as he longed for innovation and self-employment. During NOTES
this phase he came across an advertisement in Times of India of a machine that
could produce huge plastic tanks in one piece. He went to a dealer of Sintex tank
to check whether the claim was true. He also came across an article on Rotational
Moulding Plant and Process. But except arousing his curiosity for the process
nothing happened. He joined his friends in Aurangabad to start a small scale
manufacturing industry and after leaving it joined another group of friends in Jalna
to set up another small scale industry in Jalna which grew in to various department
where it produced from Cores, Coils to Air Coolers, washing machines and special
purpose machines. However, this also was an abortive attempt at being an
entrepreneur. In 1991, he was presented with an opportunity to manufacture a
Rotational Moulding Plant for a startup. With the past experience of making
machines and whatever little he had gathered about rotational moulding process
and plant he designed and installed first RM Plant in Jalna. He then went to set up
Vinodrai Incorporated a small scale Unit of manufacture of Rotational Moulding
Plants, Moulds and Pulverisers which was a sustainable and moderately profitable
attempt. Once he set up his stall in Plast India 2000 and with meagre data base
about his products bagged export and domestic orders. This gave him a lot of
confidence to expand his activities and set up state of art manufacturing set up. In
2005, Vinodrai Engineers Private Limited saw the light of the day with a huge
capacity of manufacturing RM Plants with latest equipment, shop floor and
committed work force.
Details about the enterprise:

Vinodrai Engineers Private Limited was established in 2005 in Jalna district
with an investment of about Rs. 250.00 Lacs and work force of 20. FY 2005-06
saw a turnover of Rs. 800 Lacs and profit of Rs. 90.00 Lacs approximately. The
Company is engaged in making machines for Rotational Moulded Tanks from 200
Litres to 20000 Litres capacity. The range includes RM Plant, Pulveriser and
Moulds for various capacity tanks or RM Components which are suggested or
demanded by the customers. The Company also makes Special purpose Machines
for customers on specific demands of customers. The Company had exported a
few machines to Gulf countries and focused more on domestic market. As on
date, the investment has gone beyond Rs. 600 Lacs, turnover Rs. 2000.00 Lacs
and work force 75. The company has exported its machines to over 50 countries
and keeps getting repeat orders from these countries.
Motivational factors:
Innovation was always at the back of mind right since schooling day. The
motivation mostly came from family as well as teachers like Mr. S. Vidyasagar
and Mr. Ganesh Rao and many other friends and partners during L & T days. The
entrepreneurship development programme during his engineering college days
played a major role in aspiring him for taking up entrepreneurial ventures in
subsequent life. Mistakes committed during this phase gave him the vision. He is
also driven by the desire to uplift the environment of the community and the people
around. He felt the obligation of being an engineer to make and deliver machines
to the market for comforts in life to the needy customers. Customers and employees
first is his philosophy while attending to the business. Business
Social Entrepreneurship Difficulties, Hurdles:
Because he was driven by mechanical engineering knowledge and skills,
his focus always remained on these which probably made him ignore the other
NOTES faculties of industry which was basically financial rationale. Since 1990 to 2005 he
faced many financial hurdles like having project cost not well tied up with Bank
financial assistance, liquidity crunch due to bad debts, raw material price variation
leading to cost escalation; however these problems were sorted out in time with
the help of family and friends. Many hurdles which otherwise would have cropped
did not because of strong R & D set up and vision of the promoter.
Achievements:
First RM Plant was the most fulfilling achievement at individual level as
an Engineer. However RM Plant Model EN-1000 developed through individual
research effort which is a flagship product of company liked by all the customers
due to its fuel efficiency and cost saving is one of the most satisfying achievement.
Establishing a company with productive and committed human resource
and satisfied customers for over 11 years is also an achievement. Most of the
employees have visited foreign countries for installation and commissioning of
machines despite language hurdle is a fulfilling achievement.
Mobilising people and funds for de-silting of Ghanewadi dam and
deepening and widening of many rivers in the district has been a gratifying
fulfilment.
Children of Shikalkar community were motivated for education and skill
development and provided with employment gave tremendous satisfaction.
He is founder member of Jalna Education Foundation which is engaged
in uplifting the standards of education in Jalna district. They have a pool of
trainers who takes workshop for enhancement of teaching skills in teachers of
primery and secondary schools. The Foundation also evaluates the students and
takes up projects to build sense of understanding, conducts competitions in
Mathematics, Science and English to bring in awareness in students.
He is also a mentor for Young Innovators a techno-social voluntary
organisation which is inspiring students and youth to explore innovative ideas.
They have organised a Solar Kumbh in Jalna where a few hundred primary and
secondary school students from Jalna assembled solar cookers with the help of
kits provided by the organisation and used it to understand the working of Solar
Cookers. The programme was interactive and students learnt about solar energy
and its use in our life.
He is recipient of many awards for his vocational and social services at

different forums.
Philosophy and Message to aspirant entrepreneurs:
In the words of Sunil, “Erase the following myths from your mind
• Export is not my cup of tea

• I am too small to export
Business • I do not have an exportable product or service
• I need to be highly qualified person with fluent English Social Entrepreneurship
• Export is too risky

• I am too busy serving domestic market
NOTES
• Exporting is too complicated
• Market development expenses are too high”
5.4 Summary
Sustainable entrepreneurship can be viewed as a continuous and consistent
commitment for ethical business practices. While contributing for economic
development, attention is paid to improvement of quality of life of the human
resources, their families, local communities, the society, the world at large as well
as future generations.
5.5 Key Terms

• Social entrepreneurship: A process by which individuals build or
transform institutions to address social problems
• Ecological entrepreneurship: An ecological entrepreneur is someone

who is driven not only by the possibility of making profit, but is also
driven by environmental and social concerns

Questions
1. Explain the concept of social entrepreneurship and the benefits of social
entrepreneurship
2. Who is a sociopreneur? Write profile of a sociopreneur
3. What is meant by sustainable entrepreneurship? Discuss
4. Write in detail about challenges faced by sociopreneurs.
5. Attempt a note on ecological entrepreneurship.
Exercise
1. Meet a social entrepreneur from your city/town and discuss the nature
of his/her work
1. Which of the following are the defining characteristics of social
entrepreneurs?
i. Social catalysts Business
Social Entrepreneurship ii. Profitability
iii. Resourceful
iv. Innovative
NOTES
2. —————— is the founder of the Grameen Bank and father of
microcredit
i. Mohd. Yunus
ii. Sri Sri Ravi Shankar
iii. Both
3. The Grameen Bank and Muhammad Yunus were successful because
they
i. Developed effective solutions for social needs through trial and error
ii. Received more donations than any other organization
iii. Hired the best human resources
4. Which of the following individuals can be considered a social
entrepreneur?
i. Muhammad Yunus
ii. Florence Nightingale
iii. Sri Sri Ravi Shankar
iv. All the above
5. Social entrepreneurs are entrepreneurs who ———
i. Focus on a social mission
ii. Do not focus on profit
iii. Are interested in social value creation
iv. All the above
1. Which of the following is the correct statement?
i. Entrepreneurs are interested in money
ii. Social entrepreneurs are driven by social purpose
iii. i and ii are wrong
iv. i and ii are true
2. Which of the following is wrong?
i. Entrepreneurs are rarely motivated by the possibility of money
making
Business
ii. Entrepreneurs take pleasure in sensing opportunities, exploiting these Social Entrepreneurship
opportunities for the betterment of the society through creation of
products/services
iii. i and ii are wrong
NOTES
iv. i and ii are true
Answers
Check Your Progress
1. social catalysts, socially aware, opportunity seeking, innovative,
resourceful and accountable
2. true
3. true
4. true
1. ii
2. i
3. i
4. iv
5. iv
6. iii
7. iii
5.7 Further Reading

Baporikar Neeta, Entrepreneurship Development and Project
Management, Himalaya Publishing House, Mumbai, 2011
Hisrich Robert D., Peters Michael P., Shepherd Dean A, Entrepreneurship,

Tata McGraw Hill Education, New Delhi, 2010
http://www.artofliving.org/us-en/biography-sri-sri-ravi-shankar
http://www.biography.com/people/florence-nightingale-9423539#later-life
http://www.grameen-info.org
https://en.wikipedia.org/wiki/Muhammad_Yunus
https://en.wikipedia.org/wiki/Ravi_Shankar_(spiritual_leader)
https://en.wikipedia.org/wiki/Sustainopreneurship
Kuratko Donald F., Entrepreneurship in the New Millennium, Cengage
Learning, 2007
Business
Social Entrepreneurship Mohanty Sangram Keshari, Fundamentals of Entrepreneurship, PHI
Learning, New Delhi, 2010
Reddy P. Narayana, Entrepreneurship Text and Cases, Cengage Learning,
Delhi, 2010
NOTES
Shankar Raj, Entrepreneurship Theory and Practice, Vijay Nicole Imprints,
Chennai, 2012
Business
UNIT 6 : ENTREPRENEURSHIP AND International Business
INTERNATIONAL BUSINESS
NOTES
Structure
6.0 Introduction
6.1 Unit Objectives
6.2 Difference between International and Domestic Entrepreneurship
6.3 Importance of International Entrepreneurship
6.4 Entrepreneurial Entry into New International Business
6.5 Barriers to International Trade and Entrepreneurship
6.6 Profiles of Global Entrepreneurs
6.7 Summary
6.8 Key Terms
6.0 Introduction
Any situation where the production or distribution of goods or services of
a country cross its borders it is known as international business. The transformation
toward a more co-dependent and incorporated global economy which
producesimproved opportunities for international business is known as Globalization.
In terms of market, where trade difficulties are dropping and buyer likings are
changeable such globalization can take place. From other nations where a company
can source goods and services effortlessly it can also be seen in terms of production.
Though, in a world that has moved outside simple industrial production, both
individually and professionally a broader meaning of international business may
serve you better.
Internationalbusinessbetweentwo or more nationsintegrates a full range
of cross-border exchanges of goods, amenities, or resources. For physical goods
to comprise international transfers of other resources, these exchanges can go
outside the exchange of money such as individuals, intellectual property (e.g.,
patents, copyrights, brand trademarks, and data), and prearranged assets or liabilities
(e.g., the right to use some foreign asset, provide some upcomingfacility to foreign
customers, or implement a difficult financial instrument). The objects involved in
international business range from hugeinternational firms with thousands of staffs
doing business in many countries around the world to a small one-person company
acting as an importer or exporter. This broadermeaning of international business
also involves for-profit border-crossing dealings as well as dealingsinspired by
nonfinancial gains (e.g., triple bottom line, corporate social responsibility, and political
favour) that affect a business’s future. Business
Entrepreneurship and The use or making of resources to implement inventive ideas for original,
International Business thoughtfully planned projects and the acknowledgment of opportunities (i.e.
requirements, wants, difficulties, and challenges) can be defined as entrepreneurship.
An entrepreneur is a person who involves in entrepreneurship. Alike
NOTES
strategic management, theprobabilities available when you connect new opinions
with new markets is what entrepreneurship will help you to think about. For
example:Google’s globalexistence. Larry Page and Sergey Brin are the creators
of Google, students at Stanford University. Firstly it was formed as a privately
Check your held company on September 4, 1998. Increasingly, as the Google case study
Progress demonstrates, international businesses have achance to create positive social,
environmental, and economic values across borders. An entrepreneurial perspective
1. Explain the term will serve you well in this regard.
globalisation with suit-
able examples. International business actions have antagonised entrepreneurs with host
business surroundings thatare primarily different from their home countries. For
2. Explain the term in- facilitating successful cross-border business operationstransnational
ternational business entrepreneurship is entrenched in transnationalactor networks.
with suitable ex-
amples. Anentrepreneur conducting business activity crossing through the national
boundaries is the process of International entrepreneurship. It may comprise of
3. What is meant by shipping, certifying, opening sales agency in another country etc. In this unit, we
international entrepre- are going to discuss about entrepreneurship and international Business, its nature,
neurship? challenges and some profiles of global entrepreneurs.
6.1 Unit Objectives

At the end of this unit, you should be able to
• Define Entrepreneurship and International Business
• Explain the nature of entrepreneurs
• Describe the motives in Entrepreneurship and International Business
• Explain the challenges in Entrepreneurship and International Business
• Explain the profiles of global entrepreneurs.
6.2 Difference between International and Domestic

Entrepreneurship
International Entrepreneurship: International business scholars Wright
and Ricks (1994) highlighted international entrepreneurship as a newly emerging
research direction, and it became clear the arena included:
• Comparisons of entrepreneurial behaviour in multiple countries and
cultures as well as
• Organizationbehaviour that extends across national borders and is
entrepreneurial.
According to McDougall & Oviatt(2000), International entrepreneurship
is a combination of innovative, proactive, and risk-seeking behaviour that crosses
Business national borders and is intended to create value in organizations.
International entrepreneurship is defined as expansion of international new Entrepreneurship and
undertakings or startups that from their commencement engage in international International Business
business, thus seeing their operation sphere as international from the initial stages
of international procedure. Example: Tech industry Microsoft, Apple, Google and
yahoo are enormous multinational companies now but they all were started with NOTES
limited funding from small startups.The demand for these technology- operating
systems, search engines, office software and smartphones is widespread and
universal in establishednations which are the cause why these companies have
rapid growth.
Domestic Entrepreneurship:Their importance on a production
development strategy and customer concentration strategy is how domestic
entrepreneur is differentiated. Concentrating on limited geographical markets is
involved in production development strategy. The customer concentration strategy
incorporates the production of a specialty product that is purchased uncommonly.
Thus, a reliable “closeness” between the producer and consumer is implied for
both of the domestic strategies. This may be asignificant basis highlighting the
new undertaking’s decision to compete in alimited domestic context.
Difference between International and Domestic Entrepreneurship
Few differences between domestic and international entrepreneurship are
described below:
1. Economic system:Economic conditions within country are required to
be understood when an entrepreneur is functioning in domestic level, but
he/she should be having information and thorough knowledge about
economic system of those countries where he/sheis operating business
at international level which includes currency rate, phase of business
cycle etc. at international level.
2. Stage of economic development: Development stage of domestic
country is what he/she should be concentrating on when entrepreneur is
operating at national level; on the divergent he/she has to look at the
nation from developed, developing and underdeveloped viewpoint and
therefore plan in business strategies in economy when he/she is operating
on international scale.
3. Balance of Payments: The valuation of its currency is affected because
of a country’s balance of payments. The valuation of a country’s currency
disturbs business dealings between countries.
4. Cultural sensitivity:Entrepreneur functioning at national level
mustcomprehend cultural issues prevailing in home country and at
international level he/she has to comprehend and manage cultural diversity
of customers as well as employees in business.
5. Technological environment:Until now, there are
technicalchangescontinuing in various nationsreliant on time of
implementation, up gradation of technology etc. Even though technology
is progressive at larger scale it has to be analyzed by the entrepreneur
and accordingly he/she shallimplement plan and strategy in business
processes.
6. Government policy :Entrepreneursare required to study and understand
national as well as international policy if going in for internationalization
of business, as constraint laid in home country for export of goods disturb Business
Entrepreneurship and trade of entrepreneur and constraint in host country on entering of new
International Business entrepreneurs in their company.
7. Political and legal environment:In international business as well as
national business, politics and rules play a crucial role. In the national as
NOTES
well as international market entrepreneur should be alert about political
and legal environment.
Check Your Conducting business activitiesacross national boundaries is a process of

Progress international entrepreneurship.It consists of exporting, certifying, or opening a sales
office in another country. To satisfy the needs and requirements of target
4. Define International consumers is the main motive.
Entrepreneurship
The difference between foreign and domestic markets is becoming less
5. Explain Interna- prominent as more countries become market focused and developed. International
tional Entrepreneur- entrepreneurship is the procedure of an entrepreneur directing business activities
ship over nationwide limitations. It is exporting, licensing, or opening a sales office in
another nation. International entrepreneurship occurs when an entrepreneur
6. Explain Domestic
performs his or her business model in more than one country.
Entrepreneurship
International business has become progressively vital to businesses of all
7. Differentiate be-
sizes. The successful entrepreneur will be someone who comprehends how
tween International
international business varies from national business and is able to perform
and Domestic Entre-
accordingly. Whether international or domestic, an entrepreneur is worried about
preneurship
the same elementary matters—sales, prices, and earnings. What differs is the
relative significance of the factors disturbing each decision. Due to uncontrollable
factors international entrepreneurial decisions are more difficult.
6.3 Importance of International Entrepreneurship:

If sale of a company isdecreasing in domestic market, international
entrepreneurship is beneficial because they can sell products in international market
bearing in mind demand for product in other country market
customers.Entrepreneur can earn profits by their sales by selling their products in
foreign market which have touched the maturity stage of their life cycle in domestic
markets. By selling their products in global market businesses which are
experiencing high level of fixed costs can lesser their manufacturing costs by
spreading these fixed costs over long number of units.
Entrepreneur can expand their entrepreneurial affordability and
improvestatus. Entrepreneurs will learn how to encourage habit of customer relation
management (CRM) through internationalization of business.
Presencein global market will make the entrepreneur profound towards
their customers in national market and they can adopt more respectful attitude
towards foreign habits and customers. Entrepreneurs can appointinterested, multi
lingual employees; learn continually about the foreign markets. They will think
internationally and start evolving an outlook from a global prospective.
Importance of international entrepreneurship tofirm:
1. Increased sales and profit: Entrepreneurs can sell their products in
foreign market where life cycle of product is in favorable condition when
they are not able to make profit or demand for their product decreases
Business
in local market. E.g. Apple earned added profits from international Entrepreneurship and
business. International Business
2. Lower manufacturing cost:Company can choose in for production

process in host country if the company manufacturing cost upsurges by
NOTES
manufacturing product in home country, on the divergent if the company
is in no profit or no loss situation than company can choose in any option.
e.g. McDonalds.
3. Advantage of cheap labour: The major challenge for every businessis
quantity and quality of labour, if the labour is inexpensive in foreign
countries then business can outsource essentiallabour if organization is
into foreign operations.
4. Utilization of talent and managerial competence:The performance
or activity can be outsourced or hired from the hostcountry ifbusinesses
are not able to get required talented work force in own country, which
has given birth to notion of expatriation.
5. Growth opportunity:International business is one of the primary
platforms to achieve objectives such as growth and expansion of business
which are very essential for an entrepreneur.
6. Expansion of domestic market: Beyond national boundaries
international business helps for domestic market to increase. Business
can go in for growth of business to advertise their products in international
market when the domestic market has been entirely selected. e.g. Sony
7. Globalization of customers:To preserve in pace with competition to
attract customers domestic businesses have to go in for
internationalization of business when customers in country desire buying
foreign brand products.
8. Globalization of competitors:International business not only upsurges
the opportunity for the existence and growth but also encourages Check Your
companies to face competition from global competitors in market, which Progress
in turn hints to growing of market, chasing global scale efficiencies etc.
8. Explain the impor-
9. Pay offs of international business:Owing to internationalization of tance of international
business international business progresses image of the company in entrepreneurship.
national market and appeals more consumers in domestic market. e.g.
Ranbaxy
6.4 Entrepreneurial Entry into New International

Business
On the goals of the entrepreneur and the company’s strengths and
weaknesses the choice of entry method depends.
1. Exporting: It means selling goods made in one nation to another nation.
Exporting typically involves the sale and shipment of products
manufactured in one nation to the customer positioned in another nation.
2. Direct exporting: It indicates where business takes complete
responsibility for making its goods available in the target market by selling
directly to end users generally through its own agents.
Business
Entrepreneurship and 3. Indirect exporting: Indirect exporting takes place when the exporting
International Business corporation does not have the necessary infrastructure to involve it in
direct exporting. It comes into existence when the export business sells
itsproducts to mediators who in turn sell the same products to the end
NOTES customers in foreign markets.
4. Licensing:It includes an entrepreneur who a manufacturer (license) is
giving a foreign manufacturer (licensor) the right to use patent, trade
mark, technology, production process, or product in against for the
payment of royalty.
5. Non-equity arrangements: Without direct equity investment in the
foreign market non-equity arrangements allow the entrepreneur to enter
a market. In return for a royalty payment licensing includes an
entrepreneur who a manufacturer is giving a foreign manufacturer the
power to use a patent, trademark, or knowledge. When the entrepreneur
has no chance of entering the market through exporting or direct
investment this arrangement is most appropriate. The procedure is
ordinarily low risk and an easy way to generate incremental revenue.
Licensing arrangements have several drawbacks without careful analysis.
6. Turn key projects:Something that is ready for instant use is referred
as turnkey, generally used in the trade or supply of goods or services. It
is anagreement under which a businessdecides to fully design, construct
and equip a manufacturing/ business/ service facility and turn the project
over to the purchaser when it is complete for operation for payment.
Through turn-key projects lesser developed countries are able to obtain
manufacturing technology without surrendering economic control. A
foreign entrepreneur builds a facility, trains the workers, and trains the
organization to run the installation. Once the operation is on-line, it is
turned over to local owners. Early profits can lead to follow-up sales.
By the local company or government financing is provided.
7. Management Contract: Against fee management contract is
apreparation under which operational control of an enterprise is vested
by contract in a separate enterprise which performs the necessary
managerial functions. Management contracts include not just selling a
method of doing things (as with franchising or certifying) but also doing
them. The management contract allows the purchasing country to gain
foreign know-how without turning ownership over to a foreigner.
8. Foreign Direct Investment (FDI): Either by buying a company in the
country or by increasing operations of an existing business in the country,
foreign direct investment (FDI) is straight investment into one country
by a company in production located in another country. For direct
investment the wholly-owned foreign subsidiary has been a preferred
mode of ownership.
9. Minority interest: Minority interest means a company having interest
or ownership of less than 50 percent in another company by either an
investor or another company a significant but non- controlling ownership
of less than 50% of a company’s voting shares. The minority interest
can provide the firm with either a source of raw materials or a captive
market for products. Before making a major investment entrepreneurs
have used minority positions to earn a position in the market.
Business
10. Majority interest:An ownership interest greater than fifty percent Entrepreneurship and
(50%) of the voting interest in a business enterprise is known as majority International Business
interest.
11. Joint Venture:A business contract in which parties approve to develop,
NOTES
for a limited time, a new object and new assets by contributing equity is
called joint venture (JV). Two firms get together and form a third company
in which they share the equity. In two situations Joint ventures have
been used by entrepreneurs: When the entrepreneur wants to obtain
local knowledge and a recognized facility. When speedy entry into a
market is needed, they exercise control over the enterprise and
accordingly share incomes, expenditures and properties. When two
parties come together to take on one project a joint venture takes place.
In a joint venture, to build on the original concept both parties equally
invest in the project in terms of money, time, and energy.
12. Mergers: The joining of two or more companies, usually by proposing
the stockholders of one company securities in the acquiring company in
exchange for the submission of their stock. Mergers and achievements
refers to the feature of corporate policy, corporate investment and
management dealing with the purchasing, selling, separating and conjoining
of different companies and similar objects that can help an enterprise
grow quickly in its sector.
13. Horizontal merger: When a firm is being taken over by, or merged
with, another firm which is in the similar industry and in the similar stage
of manufacture as the merged firm, horizontal merger takes place. e.g.
a car manufacturer merging with another car manufacturer / a horizontal
merger is when two companies opposing in the same market merge or
join together. e.g.merger of Daimler-Benz and Chrysler
14. Vertical merger:The grouping of two or more firms in consecutive
stages of production that often involve purchaser and supplier relationship
is known as vertical merger. This form of merger steadies supply and
production and offer more control of these serious areas. (Merger
between Mc Donald’s and Philips petroleum)
15. Product extension:Merger happens when obtaining and acquired
company have connected production or distribution activities but do not
have products that contend directly with each other. A grouping of two
firms producing the same product but selling them in different geographic
market is a combination of product extension merger. Most important Check Your
benefit of these mergers is that firms can economically combine its Progress
management skills, production and marketing with acquired firms. (Merger 9.Describe entrepre-
between western publishing (children’s books) and Mattel (Toy neurial entry into new
Company). international business
16. Market extension merger:Two companies that deal in the same
products but in separate markets is when a market extension merger
takes place. The main purpose of the market extension merger is to
make sure that the merging companies can get admission to a bigger
market and that guarantees a bigger client base. (Acquisition of Eagle
Bancshares Inc. by the RBC Centura)
17. Diversified activity merger:This is a multinational merger
relatingmerging of two dissimilar firms. (Philip Morris acquisition of Miller Business
Brewing) Entrepreneurship - VI 95
International Business 6.5 Barriers to International Trade and
Entrepreneurship
NOTES Starting near about around 1947 with the development of general trade
agreements and reduction of trade barriers there has been an optimistic attitude
toward free trade. General Agreement on Tariffs and Trade (GATT) is a multilateral
agreement with the objective of loosening trade by removing tariffs, grants, and
import quotas. In each round, mutual tariff reductions are negotiated between member
nations. Members can ask for examination of violations. While GATT has helped
out develop more clear trade, its voluntary membership gives it little authority.
1. Increasing protectionist attitudes: Due to the rise in protective
pressures in many countries, support of free trade increased meaningfully
in the 1980s.The persistent U.S. trade deficit has stressed the world
trading system. The economic success of a country (Japan) alleged as
not playing by the rules has also strained the trading system. In response
many countries have established two-sided voluntary export restrictions
to avoid GATT.
2. Trade blocs and free trade areas:Groups of nations are coming
together to upsurge investment between nations in the group and eliminate
others. Free trade areas have been recognized between the U.S. and
Israel and between the U.S. and Canada. The North American Free
Trade Agreement (NAFTA) between the U.S., Canada, and Mexico
reduces barriers and boosts investment. The Americas, Argentina, Brazil,
Paraguay, and Uruguay have created the Mercosul trade zone, a free
trade zone amongst the countries. The European Community (EC) is
originated on the principle of supra-nationality—member nations are not
able to enter into trade agreements on their own that are unpredictable
with EC regulations.
3. Entrepreneurial partnering: To partner with an entrepreneur in that
country is one of the best ways to enter an international market. A good
partner shares the entrepreneur’s dream and is unlikely to exploit the
partnership. Choose a good partner. Gather information about the industry
and possible partner. Check references for each possible partner. Meet
with the possible partner to get to know the individual and company
before any promise is made.
4. Attitude of entrepreneur: For international trade a major barrier will
be when an entrepreneur has negative mindset that foreign market is
unfamiliar to him/her and he/she might find it tough to set up his/her
business in new country.
5. Lack of information: Issues in terms of acceptance and locating product
in market, as entrepreneur is new entrant in international market he/she
is uninformed about the market conditions in host country and taste and
fondness of customers .
6. Lack of network influences:Network with recognized business
corporations makes it easy for the entrepreneur in new market but if the
entrepreneur has no acquaintances in foreign country then it will be
challenging for entrepreneur from early stage of receiving required
authorization to starting business in country.
Business
7. Financing problems:Financial institutions may be unwilling in terms of Entrepreneurship and
providing required finance to entrepreneurs as international business International Business
comprises of huge risk.
8. Tariff barriers:Duty imposed by the government on imports means tariff.
NOTES
Imposing tariff increases the price of imported goods making them less
attractive to consumers and guardsinterests of the manufacturers of
equivalent domestic products and services.
9. Non-tariffbarriers:The difficulties to imports other than tariffs such as
testing, authorization, or administrativeobstacles that have effect of
restricting imports are non-tariff barriers. These are administrative
measures that are imposed by a domestic government to distinguish against
foreign goods and in favor of home goods.
10. Technical barriers:Before a country’s goods enter into foreign market
it has to go through certain test for authentication which is what basically
referred as technical barriers.
11. Political barrier:In a small number ofnations therehappens to beplentiful
pportunities for business but political scenario in that nation may be
unbalanced such as kidnappings, bombings, violent against business and
employees which proves to be major question mark in terms of future
success of business.
12. Human resource:To establish business in foreign market existence of
labour unions, aggressive management union’s relations, strike, upsurge
cost of labour in foreign country may prove it problematic for
entrepreneur. Check Your
Progress
13. Cultural barriers:As entrepreneur is new player in host country he
may not be cognizant about language, teaching, custom, religion, values 10. Explain the
of citizens which will make it hard for the entrepreneur to appreciate barriersto international
mindset, taste and liking of customer in market. trade and entrepre-
neurship
6.6 Profiles of Global Entrepreneurs

Profiles of some global entrepreneurs are presented below:
1. William “Bill” Gates
Age : 54years
Birth Place : Seattle, Washington, USA
Industry : Information Technology, Computer Science
Influence : Changed the Personal Computer Forever
Net Worth : More than $53 billion
Website : www.gatesfoundation.org
Why they made the list…
Bill Gatesis the second richest man on the earth; one of the most recognized
names in the world, as copious a celebrity as the movie stars or pop stars due to his
Business
extremely public profile. Bill has continuously been in the lime-light since he initiated Entrepreneurship - VI 97
Entrepreneurship and his career way back when he was 13yearsof age and when the personal computer
International Business was far from near and Bill, Paul Allen and some others from high-school started
using the computers of the time, the DEC PDP-10 was one of them. Bill, Allen and
their friends calculated the inner workings and making notes of coding language and
NOTES tried to decode it to understand how a computer functioned. They were eventually
debarred from the DEC PDP-10 after they were trapped exploiting code “bugs”
which permitted them to prolong the extent of time they had been allocated on the
machine. In 1973 after completing high-school with a 1600 (top score) in his SAT’s,
he registered at the University of Harvard. While learning at Harvard. Bill made a
new friend in Steve Ballmer.They have continued to be friends to this day and
Ballmer took over as CEO of Microsoft upon Gate’s early retirement. After spending
much of his study time at the helm of the University’s computer systems in order to
start his own business Bill decided to leave Harvard, this was moderately due to the
launch of the Altair 8800 which used Intel’s new CPU 8080 which had made bill
excited by the prospects of what he could do with the technology.
Severalpersons call Bill Gates a college drop-out, or that he failed college,
this just is not true at all; it was a decision he made himself, he did not fail or
bounce in.He saw aprospect /opportunity the same as many entrepreneurs and he
took a massivedive of belief that ultimately paid off. Having extended interest
from MIT’s director Bill and Allen, generated an emulator that ran on a
microcomputer to simulate a computer they had no access to (but had said they
had) to show to Ed Roberts (MIT). They got a deal from MIT and
initiatedfunctioning on their new business in 1975 with the company name “Micro-
Soft” although in 1976 they changed it to Microsoft, dropping the hyphen. All the
way through the years Bill and Allen made some wonderfulprogression in computer
technology and partnered with some huge businesses in order to gain the capital
they wanted to start the manufacturing of their own products and software. IBM
contacted Microsoft in 1980 requesting for them to develop code for their BASIC
(computer language) computer the IBM PC, MS DOS was created and this made
Microsoft a very big player in the industry over night. In 1985 a decade after
commencing their business they launched the first ever copy of MS Windows. As
we know Microsoft became the standard in computer technology and has now
become the largest computer information and technology business across the globe.
2. Mark Zuckerberg
Age : 26years
Birth Place : White Plains, New York, USA
Industry : Social Media Mogul
Influence : Revolutionized Online Social Media and Networking
Net Worth : $6.9 billion
Website : www.Facebook.com
Mark Zuckerberg, is possibly one of the most pronounced about individuals,
not only is he one of the richest men on the globe, he’s just had a story depicted by
the Hollywood titans in a movie entitled the Social Network. Zuckerberg first
launched his website Facebook although attending Harvard University, the website
was launched from his dormitory room on 4thFebruary 2004. Mark Zuckerberg
was pooled by fellow Harvard university students Dustin Moskovitz and Chris
Hughes as he sought to evolve the Facebook website.
Business
To initiate with, Facebook wasn’t accessible to everybody and due to this Entrepreneurship and
competitors such as; MySpace and Bebo seemed to be the clear winners, in terms International Business
of social networking. Though that soon transformed when Zuckerberg and the co-
founders of Facebook dropped out of the Harvard University in anoffer to make
Facebook success, which they knew was promising, due to the amount of support NOTES
it had received at the University. By then the 2004 Facebook had established over
1 million users for the website. Then in 2005 capital venture firm Accel partners,
invested $12.7 million into the business to support them evolve it further. Shortly
Facebook was being loomed by huge brands and companies who dearth to buy out
Zuckerberg and co-tutor is evidentinfluentialcompetences and the possible revenue
to be made from it. ButZuckerberg didn’t actually sell Facebook and he still is
CEO of it even though his partners have left now, and today according to Forbes
magazine Zuckerberg is worth approximately $6.9 billion.
3. Jeff Bezos
Age : 46years
Birth Place : Albuquerque, New Mexico, USA
Industry : online retail
Influence : Revolutionized E-Commerce
Net Worth : $8.7 billion
Website : www.Amazon.com
Born in 1964,Jeff Bezos is the founder,the leader and the chief executive
officer as well as the Chairman of the board for one of the most prevalent and
renowned websites/e-commerce sites in the world, Amazon.com. Jeff Bezos was
born in Albuquerque New Mexico. His mother was just a teenage girl when he
was born, she married his father which lasted only one year in total, and She
remarried when Jeff was just five years old the man he reminiscences his father
Miguel Bezos. They relocated to Texas and Miguel became an engineer for Exxon.
Jeff Bezos was very fascinated in scientific projects at an early age and got into a
lot of suffering by reading up small electric alarms to keep his siblings out of his
bedroom. He managed to convince his parents to transform their garage into his
own personal laboratory, which matched him just fine.
He went on to be very extremely awarded through his school and college
years and he was awarded an honorary doctorate in science and technology from
Carnegie Mellon University in 2008. Later, finally graduating from Princeton
University, Jeff Bezos decided he desired to work in computer science field and
began working on Wall Street. In 1994 after anoptimistic idea whilst on a cross- Check Your
country trip from New York to Seattle Jeff Bezos came up with a business plan Progress
for what he called, is on. He managed to get some support and commenced Internet
business that very year and as we know it is now one of the most successful e- 11. Enlist the qualities
commerce sites in the world. Amazon.com currently has revenue of around $25 of successful global
billion for the idea he came up with in the back of a car on a road trip. entrepreneurs
6.7 Summary
Ø Any situation where the production or distribution of goods or services
of a country cross its borders it is known as international business. The Business
Entrepreneurship and transformation toward a more co-dependent and incorporated global
International Business economy which produces improved opportunities for international
business is known as Globalization.
Ø An entrepreneur conducting business activity crossing through the national
NOTES
boundaries is the process of International entrepreneurship. It may comprise
of shipping, certifying, opening sales agency in another country etc.
Ø International entrepreneurship: International entrepreneurship is defined
as expansion of international new undertakings or startups that from their
commencement engage in international business, thus seeing their operation
sphere as international from the initial stages of international procedure
Ø Domestic Entrepreneurship: Their importance on a production
development strategy and customer concentration strategy is how
domestic entrepreneur is differentiated. Concentrating on limited
geographical markets is involved in production development strategy
Ø The difference between foreign and domestic markets is becoming less
prominent as more countries become market focused and developed.
International entrepreneurship is the procedure of an entrepreneur
directing business activities over nationwide limitations. It is exporting,
licensing, or opening a sales office in another nation. International
entrepreneurship occurs when an entrepreneur performs his or her
business model in more than one country.
Ø International business has become progressively vital to businesses of
all sizes. The successful entrepreneur will be someone who comprehends
how international business varies from national business and is able to
perform accordingly. Whether international or domestic, an entrepreneur
is worried about the same elementary matters—sales, prices, and
earnings. What differs is the relative significance of the factors disturbing
each decision. Due to uncontrollable factors international entrepreneurial
decisions are more difficult.
Ø If a sale of company is decreasing in domestic market, international
entrepreneurship is beneficial because they can sell products in
international market bearing in mind demand for product in other country
market customers. Entrepreneur can earn profits by their sales by selling
their products in foreign market which have touched the maturity stage
of their life cycle in domestic markets. By selling their products in global
market businesses which are experiencing high level of fixed costs can
lesser their manufacturing costs by spreading these fixed costs over
long number of units.
Ø Importance of International Entrepreneurship :increased sales and profit,
lower manufacturing cost, advantage of cheap labour, utilization of talent
and managerial competence, growth opportunity, expansion of domestic
market, globalization of customers ,globalization of competitors, pay offs
of international business
Ø Entrepreneurial Entry into New Business: Exporting, Direct exporting,
Indirect exporting, Licensing, Non-equity arrangements, Turn key projects,
Management Contract, Foreign Direct Investment (FDI),Minority interest,
Majority interest, Joint Venture, Mergers, Horizontal merger, Vertical merger,
Product extension, Market extension merger, Diversified activity merger.
Business
Ø Barriers to International Trade: Increasing protectionist attitudes, Trade Entrepreneurship and
blocs and free trade areas, Entrepreneurial partnering, Attitude of International Business
entrepreneur, Lack of information, Lack of network influences, financing
problems, Tariff barriers, on-tariff barriers, Technical barriers, Political
barrier: Human resource, Cultural barriers, NOTES
6.8 Key Terms

• International entrepreneurship: International entrepreneurship is
defined as expansion of international new undertakings or start-ups that
from their commencement engage in international business, thus seeing
their operation sphere as international from the initial stages of
international procedure
• Domestic Entrepreneurship: Their importance on a production
development strategy and customer concentration strategy is how
domestic entrepreneur is differentiated. Concentrating on limited
geographical markets is involved in production development strategy
• Exporting: It means selling goods made in one nation to another nation.
• Balance of Payments: The valuation of its currency is affected because
of a country’s balance of payments. The valuation of a country’s currency
disturbs business dealings between countries.
• Direct exporting: It indicates where business takes complete
responsibility for making its goods available in the target market by
selling directly to end users generally through its own agents.
• Indirect exporting: Indirect exporting takes place when the exporting
corporation does not have the necessary infrastructure to involve it in
direct exporting
• Licensing: It includes an entrepreneur who a manufacturer (license) is
giving a foreign manufacturer (licensor) the right to use patent, trade
mark, technology, production process, or product in against for the
payment of loyalty.
• Non-equity arrangements: Without direct equity investment in the
foreign market non-equity arrangements allow the entrepreneur to enter
a market.
• Turn key projects: Something that is ready for instant use is referred
as turnkey, generally used in the trade or supply of goods or services.
• Management Contract: Against fee management contract is a
preparation under which operational control of an enterprise is vested
by contract in a separate enterprise which performs the necessary
managerial functions.
• Foreign Direct Investment (FDI): Either by buying a company in the
country or by increasing operations of an existing business in the country,
foreign direct investment (FDI) is straight investment into one country
by a company in production located in another country.
Business
Entrepreneurship and • Minority interest: Minority interest means a company having interest
International Business or ownership of less than 50 percent in another company.
• Majority interest: An ownership interest greater than fifty percent (50%)
of the voting interest in a business enterprise is known as majority interest.
NOTES
• Joint Venture: A business contract in which parties approve to develop,
for a limited time, a new object and new assets by contributing equity is
called joint venture (JV).
• Mergers: The joining of two or more companies, usually by proposing
the stockholders of one company securities in the acquiring company in
exchange for the submission of their stock.
• Horizontal merger: When a firm is being taken over by, or merged
with, another firm which is in the similar industry and in the similar stage
of manufacture as the merged firm, horizontal merger takes place.
• Vertical merger: The grouping of two or more firms in consecutive
stages of production that often involve purchaser and supplier relationship
is known as vertical merger.
• Product extension: Merger happens when obtaining and acquired
company have connected production or distribution activities but do not
have products that contend directly with each other.
• Market extension merger: Two companies that deal in the same
products but in separate markets is when a market extension merger
takes place.
• Diversified activity merger: This is a multinational merger relating
merging of two dissimilar firms.
• Tariff barriers: Duty imposed by the government on imports means
tariff. Imposing tariff increases the price of imported goods making them
less attractive to consumers and guards interests of the manufacturers
of equivalent domestic products and services.
• Non-tariff barriers: The difficulties to imports other than tariffs such
as testing, authorization, or administrative obstacles that have effect of
restricting imports are non-tariff barriers. These are administrative
measures that are imposed by a domestic government to distinguish against
foreign goods and in favor of home goods.

1. Explain the term globalisation with suitable examples.
2. Explain the term international business with suitable examples.
3. What is meant by international entrepreneurship?
4. Define International Entrepreneurship
5. Explain International Entrepreneurship
6. Explain Domestic Entrepreneurship
Business
7. Differentiate between International and Domestic Entrepreneurship Entrepreneurship and
International Business
8. Explain the importance of international entrepreneurship.
9. Enlist the qualities of successful global entrepreneurs
NOTES
Multiple Choice Questions:
1. ……………………….is defined as expansion of international new
undertakings or start-ups that from their commencement engage in
international business, thus seeing their operation sphere as international
from the initial stages of international procedure.
a. Entrepreneur b. Entrepreneurship
c. International entrepreneurship d. Domestic entrepreneurship
2. Whose importance on a production development strategy and customer
concentration strategy. Difference between International and Domestic
Entrepreneurship
a. Entrepreneur b. Entrepreneurship
c. International entrepreneurship d. Domestic entrepreneurship
3. The valuation of its currency is affected because of a country’s …....
a. Balance of Payments b. Culture
c. Economic Condition d. Development stage
4. If a sale of company is …………. in domestic market, international
entrepreneurship is beneficial because they can sell products in
international market bearing in mind demand for product in other country
market customers
a. stagnant b. increasing c. decreasing d. growing
5. Entrepreneur can earn profits by their sales by selling their products in
foreign market which have touched the maturity stage of their life cycle
in domestic markets.
a. The maturity stage b. the decline stage
c. the growth stage d. the introduction stage
6. Importance of international entrepreneurship to firm:
a. Increased sales and profit
b. Lower manufacturing cost
c. Advantage of cheap labour
d. All of the above
7. ……..means selling goods made in one nation to another nation.
a. Exporting b. Importing c Licensing d FDI
8. …….. indicates where business takes complete responsibility for making
its goods available in the target market by selling directly to end users
generally through its own agents. Business
Entrepreneurship and a. Direct Exporting b. Direct Importing c Licensing d FDI
International Business
9. …………takes place when the exporting corporation does not have the
necessary infrastructure to involve it in direct exporting.
NOTES a. Indirect exporting b. Direct Exporting
c. Direct Importing d. Licensing e. FDI
10. Without direct equity investment in the foreign market non-equity
arrangements allow the entrepreneur to enter a market.
a. Non-equity arrangements b. Direct Exporting
11. Something that is ready for instant use is referred as
a. Non-equity arrangements b. Turn key projects
Answers:
1. c
2. d
3. a
4. c
5. a
6. d
7. a
8. a
9. a
10. a
11. b

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of International Entrepreneurship: International Business Studies. Palgrave
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Baumol, W.J. (1990), Entrepreneurship, Productive, unproductive, and
destructive. Journal of Political Economy, 98. p. 893-921.
Douglas, E.J., Shepherd, D.A. (2002), Self-Employment as a Career
Choice, Attitudes, Entrepreneurial Intentions, and Utility Maximization.
Entrepreneurship Theory and Practice, 27. p. 81-90.
Frank, H., Korunka, C. und Lueger, M. (1999), Konfigurationsanalyse
Business
von Unternehmensgründungen. Betriebswirtschaftliche Forschung und Praxis, 51,
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unternehmerische Praxis. Verlag Vahlen. International Business
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Feature_2_Why%20Adopt.pdf
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tenji/amjas/Trautwein.pdfhttp://brainprick.com/patricia-narayan-from-earning-50-
paise-a-day-to-owning-the-chain-of-restaurants/
Parker, Simon, C. (2004), the Economics of Self-Employment and
Entrepreneurship, Cambridge, Cambridge University Press
Schumpeter, J. A. (1952), Theorie der wirtschaftlichen Entwicklung (5.
ed.), Berlin
Business
Youth Entrepreneurship
UNIT 7: YOUTH ENTREPRENEURSHIP
NOTES
Structure
7.0 Introduction
7.1 Unit Objectives
7.2 Youth Unemployment
7.3 Youth Entrepreneurship
7.4 Profiles of Youth Entrepreneurs
7.4.1Rohit Shindikumte
7.4.2 Ritesh Agarwal
7.4.3 Rahul Jaju
7.4.4 Rushikesh Kannawar
7.5 Summary
7.6 Key Terms
7.8 Further Reading
7.0 Introduction
“Youth has a natural disposition for innovation and change on which
we can capitalize, as long as we are clear that successfully launching a new
enterprise - however small - is a process of innovation.”- Carlos Borgomeo
Youth possess entrepreneurial characteristics such as initiative, ambition,
imagination, creative ability and the like. Their age, energy level, drive, enthusiasm,
resourcefulness is conducive for entrepreneurship. Youth entrepreneurship
generates diverse employment opportunities in traditional as well as non-
conventional businesses. Youth entrepreneurs introduce new products, services in
the society. They promote innovation. They actively contribute to the economy
through income generation and employment creation. They increase
competitiveness.
There is a need to enhance entrepreneurial mindset amongst youth. Youth
entrepreneurship is an effective solution to the problem of unemployment. It leads
to self-employment and also creation of job opportunities for others in the
community. However, there is a need of strong support and assistance so as to
improve the chances of success and eliminate the possibility of failure of
entrepreneurial ventures. They require favourable economic environment, support
for initiation and development of business,youth friendly administrative system, a
Business
vibrant local economy, training, skills, resources, business incubators, counseling, Youth Entrepreneurship
mentoring programmes.
Entrepreneurship educationcreates awareness about entrepreneurship as
a career option with clarity, builds up self-esteem, develops self-confidence and
NOTES
leadership skills. It can be considered as a source of skills and attitudes needed for
business. Entrepreneurship education incorporates entrepreneurial competencies
among students from an early age.
7.1 Unit Objectives

• Understand the meaning of youth entrepreneurship in the light of the
problem of unemployment
• Appreciate the role of entrepreneurship education for motivating and
inspiring youth towards entrepreneurial career path
• Identify the barriers to youth entrepreneurship
• Learn about some youth entrepreneurial personalities and be aware about
their journey towards success
7.2 Youth Unemployment

“Entrepreneurship and business creation are … a growing alternative
for young people whose age group often faces a labour market with double
digit unemployment rates. Traditional career paths and opportunities are
disappearing rapidly. A growing number of young people are taking up
challenge of starting their own business and much is being learned about
how the odds for success can be improved through various types of assistance
and through the creation of a supportive environment”.- Juan Somavia Check Your
Progress
One who is willing and able to workbut who do not possess a job is an
unemployed person. An unemployed person is actively seeking a job and searching 1. How do you define
for a position. According to the 13th International Conference of Labour Statisticians youth?
(ICLS), the standard definition of unemployed persons is those individual without
work, seeking work in a recent past period, and currently available for work.
Youth unemployment is the unemployment of young people. Youth is a
stage in life between adolescence and adulthood. It is the period between childhood
and adult age that shows a transition from dependent childhood to independent
adulthood and awareness of interdependence as member of a community. Youth
is often referred as persons between the age of leaving compulsory education and
finding their first job.
There is no fixed age-group for defining youth. Different agencies defined
the age range of youth in different ways. Different countries define youth differently.
Definition of youth may change with circumstances especially with the changes in
demographic, financial, economic, and socio-cultural settings. Age is the most
convenient way to define youth with reference to education and employment.
Youth is often referred as a person between the age where he/she may leave Business
compulsory education and the age at which he/she finds his/her first employment. Entrepreneurship - VI 107
Youth Entrepreneurship With higher levels of unemployment and greater living costs the upper age limit
has been increasing. UNESCO uses different definitions of youth depending on
the context for executing its Youth Strategy. According to the United Nations, for
statistical purposes, personsin the age group of 15 to 24 years are defined as
NOTES youth,for maintaining statistical consistency across regions. African Youth Charter
defines youth as ‘every person between the ages of 15 and 35 years’.
India has 50% of its population below 25 years, 65% below 35 years and
by 2020 it is predicted that an average Indian will be 29 years old, while for China
it will be 37 years and for Japan 48 years.
Creating jobs for young people is a difficult task. Most of the countries in
the world are facing the problem of youth unemployment. Youth constitute the
major percentage among the unemployed. According to Annual Employment and
Unemployment Survey Report, 2013-14 conducted by the Labour Bureau,
unemployment ratio for the age group of 18-29 years is 12.9% while for above 30
years it is 1.4%. It shows that there are very few opportunities for fresh graduates.
Unemployment among graduates is 14%, for postgraduates it is 12%, and for
illiterates it is 2%. The Labour Bureau’s report on Youth Employment and
Unemployment scenario 2012-13 displays that the unemployment rate among
illiterate youth is lower than educated youth. Unemployment rate for young male
graduates in urban areas are particularly high.
Youth unemployment has severe long-term socio-economic consequences.
It affects motivation level and ambitions of youth in an adverse manner leading
towards frustration. It may trigger violence and juvenile delinquency.
7.3 Youth Entrepreneurship

“We are the youngest country with 65 percent of our population below
35 years of age. We are the world’s largest democracy and we have a huge
domestic market to feed. No country has such an opportunity as India to
create jobs with human capital and abundant natural resources!” – Narendra
Modi
Generally we define entrepreneurship with reference to the objective of
income generation. Danish Foundation for Entrepreneurship – Young Enterprise
defines entrepreneurship as “acting upon opportunities and ideas to transform them
into new value for others. The value that is created can be economic, cultural or
social”. In the Australian scoping paper entrepreneurship is defined as “the
recognition of an opportunity to create value, and the process of acting on this
opportunity, whether or not it involves the formation of a new entity”. The Global
Entrepreneurship Monitor (GEM) defines entrepreneurship as “any attempt at
new business or new venture creation, such as self-employment, a new business
organization, or the expansion of an existing business, by an individual, a team of
individuals, or an established business”.We consider entrepreneurs as the individuals,
who are self-employed, who have started their new businesses in formal or informal
sector to earn money. We do not specify age range while defining entrepreneurship.
It is not desirable to define a specific age range for youth entrepreneurship.
It has to be kept broad. Various agencies, organizations, different countries define
youth in different ways – on an average in the age 15 to 35. It would be proper to
consider 35 years as the higher limit to consider youth entrepreneurs.
Business
Integral Assets Consulting defines youth entrepreneurship as “youth Youth Entrepreneurship
entrepreneurship involves the development of entrepreneurial attitudes, skills and
opportunities for young people, from middle school through young adulthood”.
Francis Chigunta, from the University of Oxford, defines youth
NOTES
entrepreneurship as “the practical application of enterprising qualities such as
initiative, innovation, creativity, and risk-taking into the work environment (either
in self-employment or employment in small start-up firms), using the appropriate
skills necessary for success in that environment and culture”.
It is observed that youth entrepreneurship varies according to age.
Chigunta proposes a broad categorization into three transitional phases of youth
entrepreneurship:
1. Pre-entrepreneurs (in the age of 15-19 years): This is the formative
stage.These are the youngest of the youth entrepreneurs. These younger
youth are often in transition from the security of the home or education
to the work place.They do not possess much experience. They are
curious about future career options. They seek information about
entrepreneurship career, business startups, service-based enterprises,
social enterprises, technology-driven enterprises.
2. Budding entrepreneurs (in the age of 20-25 years): This is the growth
stage. These youth are mostly experienced. They may have acquired
requisite skills, adequate capital, confidence and experience. They are
in a better position to run their own enterprises. At this stage, there is a
need to support the entrepreneurs for their survival with the help of
training, assistance to acquire finance and other resources, mentoring,
counseling, and interaction with successful and experienced
entrepreneurs.
3. Emergent entrepreneurs (in the age of 26-29 years): This is the prime
stage. These entrepreneurs are more mature and experienced than the
other entrepreneurs from the previous stages. They have access to
capital. They have exhibited the skills required for startups. Now they
require technical skills for growth of their enterprises. These
entrepreneurs require training for business development and growth,
access to working capital, operational assistance, business counseling,
mentoring.
Youth entrepreneurs are classified into three types on the basis of their
motivation for entering into entrepreneurial activity as:
• Necessity driven entrepreneurs: These entrepreneurs opt to venture into
entrepreneurship to maintain their living by necessity rather than their
own choice. They have no other source for earning money. May be
there are few employment opportunities.
• Opportunity driven entrepreneurship: These entrepreneurs pursue a
perceived market opportunity and decide to begin their new business.
They may have some other source of employment available for them at
the time of start of the business.
• Growth oriented entrepreneurs: These entrepreneurs have a relatively
higher job creation potential.
Young entrepreneurs are found in different types of entrepreneurial Business
activities. They are seen in economic entrepreneurship for fulfilling the objectives Entrepreneurship - VI 109
Youth Entrepreneurship of wealth generation and profitability. Economic entrepreneurship is commonly
adopted by young as well as old entrepreneurs for profit generation and wealth
creation. Youth entrepreneurs are also seen in social entrepreneurship as well as
intrapreneurship. For social entrepreneurship, outcome of the entrepreneurial
NOTES activity is creation of social value and wealth creation is a just a means to an
end.Social entrepreneurial ventures are different than traditional non-profit or
charitable institutions. They adopt innovative approaches to address social problems
and to pursue financial self-sustainability. The objectives and motivations of public
entrepreneurship are socially oriented. They are not purely financial.Young
generation may wish to seek entrepreneurial environment to work; in case, they
are not interested in creating their own ventures. Intrapreneurs imply entrepreneurial
activities within large corporates. They contribute to success of business.
Entrepreneurial activities are also carried out in co-operatives also where focus is
mutual benefit. Recently youth entrepreneurs are seen as web entrepreneurs/
ontrepreneurs/netpreneurs who deal with digital products, services, processes.
Young entrepreneurs are different from general or adult entrepreneurs in
many aspects. According to International Labour Office, the following factors
influence youth entrepreneurship: social/cultural attitude towards youth
entrepreneurship, entrepreneurship education, access to finance/start-up financing,
administrative and regulatory framework, business assistance and support.
Luc Lalande, director of Carleton University’s Innovation Transfer office,
stated an 80- 10 - 10 rule of entrepreneurship, which states that 80% of the
population is content with and currently holds a traditional job; 10% of the population
will be involved at a very early state with entrepreneurial activities; and the remaining
10% of the population have the potential of choosing entrepreneurship as a career
option; provided they receive the right encouragement, training and support from
their environment. Youth entrepreneurship development programmes are directed
towards the latter two segments consisting of 20% of the population. They require
the tools, techniques and opportunities to develop and equip themselves for
entrepreneurial career.
The ILO defined youth entrepreneurship policy as: “Policy measures taken
to foster entrepreneurial activity of young individuals
• Aimed at the pre-start-up (including entrepreneurship education), start-
Check Your up and post-start-up phase of the entrepreneurial process;
Progress
2. According to • Designed and delivered to address the areas of motivation, opportunity
Chigunta, the three and skills;
transitional phases of
youth entrepreneur- • With the main objective of encouraging more young people to start an
ship are — entrepreneurial undertaking or venture and at the same time to improve
3. What are the prob- young people’s general employability”.
lems of youth entre- Socio-cultural factors inhibit entrepreneurship. Weak and unstable economy
preneurs? fails to generate opportunities for youth entrepreneurs. Youth are expected to
seek education so as to get a good job with adequate salary. Some communities
and societies do not take risk. They are interested in safe and secure occupations
and careers.
Stability of the political situation in the country, strong political will and
focus on youth entrepreneurs provides momentum to youth entrepreneurship.
Government policy and framework create conducive environment and encourage
youth towards entrepreneurship.
Business
Large enterprises provide opportunities to youth for their development Youth Entrepreneurship
and growth and offer them necessary guidance and support wherever needed. In
absence of active and strong industries, there can be no motivation, no
encouragement to youth for entrepreneurship.
NOTES
Youth entrepreneurs face more challenges and difficulties than their adult
counterparts. They are not taken seriously by their colleagues or business
contacts.They may not receive support from family or friends. They face age
discrimination by suppliers, customers, institutions, government. They may lack
sufficient work exposure, entrepreneurship experience. Previous working
experience is considered to be instrumental for entrepreneurial success. They
may not have an extensive network of contacts. They must be well conversant
with business plan development, financial rationale, marketing techniques,
knowledge about operations management, human resources dynamics and the
like. Senior, older creditors, suppliers, customers may not believe them readily due
to their young age. There are several apprehensions and biases about young
entrepreneurs for developing trust. Particularly, youth entrepreneurs require
mentoring from experienced and successful entrepreneurs for solving various crises
and for making decisions in the face of uncertainty.
Youth entrepreneurs mainly face problems in acquiring initial capital for
the entrepreneurial venture. They may have meagre personal savings. Adequate
provision of funding required for raising entrepreneurial venture will go a long way
in giving momentum to youth entrepreneurship.
Entrepreneurship Education
“A country’s competitiveness starts not on the factory floor or in the
engineering lab. It starts in the classroom”. – Henry Ford Check Your
Formal education in most of the countries prepare students to prepare for Progress
seeking a job. The focus is on academic knowledge and on getting degree. There 4. Explain meaning of
is no adequate attention and focus on awareness about entrepreneurship, leadership, the term ‘entrepren-
creativity, lateral thinking. eurship education’
The Australian Ministerial Council on Education, Employment, Training
and Youth affairs (MCEETYA) has defined enterprise education as “learning
directed towards developing in young people those skills, competencies,
understanding, and attributes which equip them to be innovative, to identify, create,
initiate and successfully manage personal, community, business and work
opportunities, including working for themselves”.
Right from an early age, children and youth require motivation and
encouragement so as to consider entrepreneurship as an attractive career option.
Systematic efforts are required to understand, analyze and remove barriers to
entrepreneurship, if any. Creativity and innovation has to be imbibed among the
students in a systematic manner right from their early childhood. The parents,
teachers, policy makers, decision makers, administrators need to be particular
about ensuring the learning by the children and youth about the practical application
of techniques of creativity and innovation for the sake of entrepreneurial ventures.
The knowledge, skills and competencies required for entrepreneurship career need
to be provided through formal education beginning with pre-primary as well as
primary education and extended through advanced stages of the education cycle.
To boost up the phenomenon of youth entrepreneurship, there is a need of
supportive policy and favourable environment.
Business
Youth Entrepreneurship It is essential to promote an entrepreneurial culture among youth. It requires
an insight into attitude of youth, their awareness about entrepreneurship, their
exposure to business. There is a need to promote role models, convey their success
stories, deliver image of independence, and achievement and motivate the youth
NOTES to opt for entrepreneurship. The impact of entrepreneurial success stories upon
the impressionable young minds may trigger the interest in starting a business so
as to follow their role model. Media plays a crucial role in this regard for creating
a favourable environment in the society. With media influence, parents and relatives
may encourage their children for pursuing entrepreneurial career. Entrepreneurship
education creates a positive attitude towards entrepreneurship through
communicating the necessary knowledge, attributes, skills and behaviour in a
manner to influence the career decision. Government also plays a vital role in
fostering an entrepreneurial culture in the society.
7.4 Profiles of Youth Entrepreneurs

Profiles of few entrepreneurs are presented below:
7.4.1 Rohit Digamber Shindhikumte
Proprietor of Atharva Natural and Atharva Life Sciences
Gender: Male
Age: 26
Name of the Enterprise: Atharva Natural
Address: Ashirwad Apartment, Flat No. 07, Tilak Nagar, Nanded
Nature of Activity: Manufacturing and marketing of herbal and organic products;
arranging training programmes of spirulina cultivation technology for students
Year of Establishment: 2014
Initial Turnover: Rs. 25 lakhs
Present Turnover: Rs.75 lakhs
Initial employment: 2
Present employment: 12
Initial investment (asset based): Rs. 5 lakhs
Present investment (asset based): Rs. 25 lakhs
Initial capital: Rs. 10 lakhs
Present capital: Rs. 30 lakhs
Initial installed capacity: 1,000 pieces per month
Present installed capacity: 20,000 pieces per month
Growth/expansion/innovation etc.: Planning to expand to national level in
organic products segments with an addition of innovative products and methods to
give best possible benefit to consumers.
Business
Always Rohit used to wonder – “what to do after completion of 10th? Youth Entrepreneurship
What should be my aim in life? I am learning because of my own dream or only
for the sake of my parents?” He studied hard and got 84% in SSC. Due to his
interest, he opted science stream and secured 78% in HSC. His sister was doing
MBBS from D.Y. Patil’s Medical College, Pune and another sister was doing NOTES
engineering from SGGS Institute of Engineering & Technology, Nanded. His
younger brother is studying in polytechnic. He resolved the dilemma between
engineering and medical profession on the basis of his interest in mechanical
engineering and thinking that seeking engineering is quick action than the long
route of getting MBBS, MD, and then internship. So he sought admission at
Tatyasaheb Kore Institute of Engineering, Kolhapur. He was well known for his
extracurricular activities there. He used to study well. He got selected in three
companies in campus placement. But he did not want to join any company. Getting
placed in MNCs and doing a job for others never excited him. He was well aware
that having a job in a big MNC with attractive package creates reputation in the
society. But he was sure that this was not the path which he was looking for. He
had the feeling that “although money is important to live a successful life; but
there are some certain things which we need to feed our soul, which give us a real
pleasure to live a happy life and give a meaning to life”. Rohit says, “From my
childhood, I always like to do different things, to do things differently which really
excite me. Then it doesn’t matter for me, that those things may look odd for
others. If I like to do something, and I get pleasure to do that, then irrespective of
the views and opinions of others I pursue the same”.
However, he was blank and indecisive after completion of engineering.
He faced a big question: Now what next? Both of his sisters after completion of
their graduation joined jobs. After completion of engineering, he went back to his
native place Nanded with no job in his hand, no future plan in his mind. He thought
that for his parents, their friends, apartment mates he was simply a jobless engineer.
But he decided that he should do something so that he himself would feel proud,
his family would be satisfied and his parents, and friends would appreciate him.
He started net surfing, newspaper reading and then he realized that for proving
himself he should go for a business which would enable him to stand out in the
crowd. But again another question: which business?
In the light of high percentage of sickness, Rohit was somewhat
apprehensive about business career option. However, he was not discouraged.
He visited MIDC area of Nanded, DIC office in the hope to get information about
promising business ideas. However, he felt that industrialists, officers do not pay
adequate attention to him since he was inexperienced and hardly 21 years old. But
instead of being disheartened, he decided that on the basis of his business he
would create his own position, make his name and achieve fame in society. He
then decided that he would choose business related with his graduation that is
mechanical engineering. He started visiting mechanical part manufacturing units-
small scale, medium scale industries but felt that he was too small to establish this
big mechanical part manufacturing idea/business.
Rohit’s father is a teacher and his mother is a housewife. His mother is a
graduate of Hyderabad University. She compromised her career for her children.
They need to spend lot of money towards education of their children. Due to
inability to raise lakhs of rupees for business, Rohit gave up the idea of setting up
a new mechanical industry. But all the while he was trying to explore various
possibilities of initiating new business.
Business
Youth Entrepreneurship His father was suffering from blockages and mother from diabetes. He
used to observe them taking medicines and dream about manufacturing medicines
of all diseases and relieve them from pain and agony; but thought that it’s not his
field since he is an engineer, neither a doctor nor a pharmacist. However, seeing
NOTES two patients of different diseases in his own house, he realized enormity of the
problem of various diseases and suffering of large number of patients and their
family members. He had the feeling that as world is running too fast; people do
not have time to take care of their own health. He decided to do something for
fitness of people; search and promote products and/methods for ensuring healthy
and happy living. He was sure that finding solution to this problem of serving the
society would be the business opportunity he was searching for. He believes in the
saying ‘necessity is the mother of invention’
He started study of different types of medicines, their benefits, side effects,
warnings. He found that not a single medicine was available which would remove two
or more types of diseases. For every type of physical deficiency or disability we have
to take various types of medicines and each medicine has its own drawbacks and ill
effects. Some medicines directly affect on mental ability, on brain. But very few people
know about this. He tried to divert his mind from this business for some days but ideas
was still in mind to cure people, remove their disorders of medicine, stay away from
the side effects of medicines. He was in search of some natural solution for health
management. And then he remembered that his roommate, who was studying
Biotechnology engineering, told him about one product which is very beneficial for
human health. He had told him that this simple food algae, with so many health benefits,
is a complete food. Then he started web searching relentlessly, day and night, about
that product and collected huge data. And then he realized that this was the product he
was looking for. Then he collected contact details of many manufactures and started
calling them regarding plant visit and training. Many of them denied to give information
or training. He did this for more than one month. He collected hundreds of mail ids of
manufactures and sent mail enquiries for training. One day early morning one person
called and told him to come to Pondicherry and that he was ready to provide information
about the production process. Still he kept searching for big manufacturers to know
about the production process, but there was no response. Then he had only one choice
left -to believe that person who called him and go to meet him. In Pondicherry Rohit
met him, visited some plants and collected information of production process. Rohit
says, “That experience is very difficult to explain in words. I am an engineer, my
friends are doing jobs in good reputed companies and I’m wondering in south India
collecting information about one product. I had mixed feeling - little depressed after
seeing friends’ career in MNCs and little excited about my work, my passion. That
journey took me to the right track and within two years I started production plant of
that product successfully. While completing my MBA, I set up this plant and launched
the product in the market. During all this, I experienced so many positive negative
incidences about people, market and business. But this start up gave me so much
encouragement and confidence.
Now a days, I’m working on my new project, I want to create more and
more jobs. I believe that if your intentions are true and you help others to complete
their dreams and develop their life, they certainly help you to complete your dreams”.
Name of the enterprise: Atharva Natural
“About us:
Our root goes back almost four years as the pioneers in spirulina production
in Marathwada region. Today we offer a solid base of quality spirulina and spirulina
Business
based products with distribution in over 20 cities.
114
Our Mission: Youth Entrepreneurship
Our mission is to maintain health of our consumers by producing, developing,

manufacturing and marketing the highest quality spirulina and spirulina based
nutritional products in the country.
NOTES
Vision:
The vision of Atharva Natural is to focus on the business of human wellness
through Health Supplements and Functional foods, by offering high quality products
backed by science, addressing Indian market.
Last month, we renamed spirulina lifecare as Atharva Natural. Now, Atharva
Natural doing its business mostly in Vidharbha. We are focusing on herbal and organic
products segment. Within coming four months we are going to launch an official
website of Atharva Natural. Now, we are going to scale up the production capacity”.
Recently Rohit has started a training institute “Atharva Training Institute”
which constitutes a team of professionals with multi-disciplinary skills. He aims to
bridge the gap between industry and academics. Through this activity, he wishes
to create awareness and spread importance of organic products for improving
health and fitness level. Through the training students can learn the basics of this
business, production techniques and procedures and use that knowledge in setting
up their business.
7.4.2 Ritesh Agarwal
Ritesh Agarwal is the founder and CEO of OYO Rooms- the fastest
growing network of hotels offline and online. OYO Rooms are India’s largest
branded network of hotels spread across 196 cities with 5500+ hotels offering
standardized stay experiences at avery reasonable price.
The journey for Ritesh began rather early. He started coding at an early
age of 8. He used to love software and in his schooling days decided about
developing his career in coding. Later while attending classes at Kota for joining
IIT, he wrote a book named ‘Indian Engineering Colleges: A Complete Encyclopedia
of Top 100 Engineering Colleges’which was sold out in seconds on flipkart. At the
age of 16, he participated in the Asian Science Camp at the Tata Institute of
Fundamental Research (TIFR) Mumbai. His pastime included playing around with
computers and he would always look for opportunities to make mistakes as a
learning experience. He even sold sim cards to survive, afraid his well off family
would end his entrepreneurial dreams and summon him back home to Odisha if
they knew of his struggles.
Riteshis from a business family in Bissam Cuttack in Orissa. He started
his business career at age 17. He is the first resident Indian to win the Thiel
Fellowship, a global contest for the students under the age of 20. He always felt
that budget hotels in India failed to meet basic needs of a budget traveler. Keeping
this in mind and using this to his advantage, he dropped out of college and started
his entrepreneurial journey.He launched his first start up venture in the year 2012
– Oravel Stays after securing funding of Rs 30 lakhs from Venture Nursery, an
accelerator firm. Oravel Stays was a platform which provided listing and booking
of budget accommodation which included bed and breakfast joints, serviced
apartment and private rooms.
Oravel Stays could not live up to the expectations of the market and soon
it turned into one of his failed business ideas. He did not give up, but started Business
readingabout entrepreneurs and start-ups, the businesses and Entrepreneurship - VI 115
Youth Entrepreneurship meetingentrepreneurs. After some research Ritesh thought and realized that, the
most tiring task while travelling is to find a decent, affordable place to stay which
is “available” but most of us are ready to compromise in accommodation to avoid
thisrather tedious task. There are times when people get unworthy place for a
NOTES huge amount and many a times a nice place in a little amount.That is what motivated
him to push and create an online, social platform to provide information about all
good, affordable and diverse places in a fun and user understandable manner.He
made some changes to his present business model and in 2013 re-launched Oravel
as”OYO Rooms”.
OYO means “ON YOUR OWN”. OYO Rooms is India’s largest
technology driven chain of standardized branded budget hotels spread across 196
cities with 5500+ hotels offering standardized stay experiences at an unmatched
price. After the launch, they welcomed Bhawna Agarwal, former CEO at e-
commerce firm SeventyMM to the team and tied up with more dozens of hotels.In
2014; the company raised Rs. 4 Cr from Lightspeed Venture Partners (LSVP)
and DSG Consumer Partners. Going ahead, to satisfy the needs of the customers
to the fullest; OYO Rooms started visiting prospective hotels to examine the hotel
and suggest the changes that would make them recognize under OYO
standards.OYO Rooms has now become India’s first technology driven network
of standardized branded and budgeted hotels spreading across cities like Delhi,
Gurgaon, Noida, Bangalore, Mumbai, Pune, Goa, Jaipur, Hyderabad, etc.
Additionally, their OYO Rooms mobile app ranks amongst the best-rated apps on
Google Play Store and has also been listed as one of the top three apps in the
‘Travel & Local’ category.As a result, the company is continuously raising funds
like another $25 Million from Lightspeed, Sequoia and ……….
He was also named by Forbes in its “30 under 30” list in the consumer
tech sector. He was awarded the TiE-Lumis Entrepreneurial Excellence Award in
2014. He is the first resident Asian to win ’20 under 20’ Thiel Fellowship in 2013.
He is named one of the Top 50 Entrepreneurs by TATA First Dot Awards in 2013.
He is the finalist of Global Student Entrepreneurship Awards-India. He is named
one of the ‘8 Hottest Teenage Start up Founders in the World’ by Business Insider
in 2013. He is the World’s Youngest CEO at 17(recognized at 16) and received
Business World Young Entrepreneur Award in 2015.
7.4.3 Rahul Jaju
Rahul says, “It is a humble opportunity on my part that I can share my
journey towards entrepreneurship with others.
My name is Rahul Shankarlalji Jaju and I was born in Nanded district of
Maharashtra. My background is as such father being a Marwadi businessman
and mother a homemaker, I always aspired to become an entrepreneur. I had my
schooling done from Mahatma Phule High School, Vijay Nagar, Nanded and I
completed my B.Com from Yeshwant Mahavidyalaya, Nanded. Later on I
completed my MBA in 2009 from Swami Ramanand Teerth Marathwada
University, Nanded.
My earlier tendency was to pursue a job oriented career but it got changed
as I completed my MBA. MBA was a vital instrument in changing my approach
towards entrepreneurship as a career path. I am grateful to my professors of
Swami Ramanand Teerth Marathwada University who taught me the basic traits
of managing and doing business which inspired me to become an Entrepreneur.
Business As soon as I completed my MBA I got placed as Financial Advisor in

116 Entrepreneurship - VI Bajaj Allianz in a campus interview in 2009. But my aspiration was towards
entrepreneurship so this job was a short lived one for two months. Later I got Youth Entrepreneurship
placed in Kamdhenu TMT Bars Pvt. Ltd. as a sales manager which would help
me in understanding the gimmicks of marketing. My sole aim for doing this job
was to learn the manufacturing process. I was planning to start a manufacturing
unit but due to financial constraints I couldn’t execute this plan. My job tenure in NOTES
Kamdhenu TMT Bars Pvt. Ltd. was for six months.
In 2010 I got placed as Store Manager in NEXT India Pvt. Ltd. in Nanded.
NEXT India Pvt. Ltd. is India’s largest electronic chain situated throughout India. I
got a diversified experience of Electronic Consumer Durable goods Market in this
job. This job hit me with an idea to start my own venture of Electronics Retail Store.
But to start with that I still lacked experience and capability of managing my
own store. To attain more understanding of this business I did another job with
Samsung India and Godrej Interio for a span of ten months. This job helped in
developing a knack for convincing customers with detailed demonstrations of products.
This job helped me build confidence to start my own venture. This was
my first real step towards the journey of entrepreneurship. On 15th August, 2011,
I set up my own Multibrand Home Appliances Store which was first of its kind in
Nanded. I was amateur at accounts but starting my own I learned a lot about
accounts and finance in entrepreneurship.
Two years later I went for expansion by opening a crockery store by
renting an adjacent shop but this venture resulted into an utter failure. But this
failure gave me understanding to take success and failure in the same stride and
to plan better and work hard.
The next year I partnered in an existing organic products store named
Prakritik. Months later I started a unique undergarments store named JUST
JOCKEY for the vibrant youth of Nanded”.
7.4.4Rushikesh Deepak Kannawar
Qualification: B.Com, MBA (Finance), GDCA, DTL
Occupation: Business
Family Background
Deepak Kannawar, Rushikesh’s father was born and brought up at Balapur,
a village around 45 kms from Nanded. Kannawar family’s main occupation was
farming. He was the 3rd eldest amongst his 5 brothers and 5 sisters. After getting
married in 1979, Deepak shifted to Nanded and opened a cloth shop. None of his
siblings gave importance to education and so all of them did nt have any other
choice but to join the family business. Rushikesh’s elder brothers also didn’t want
to study after 10th and 12th, instead they joined the family business. But Deepak
didn’t want Rushikesh to be like his elder brothers, he wanted him to join the
business only after seeking higher education. He always wished that Rushikesh
would study all the new things and take the business to a different level.
Deepak was thinking of what can be done about his children and that time
one of his friends suggested him to send them in a boarding school in Panchgani
where he had sent his child and he was pretty happy with the school there. He
went there, checked that place and was decided to keep his children in the boarding
school in Panchgani. Rushikesh says, “While going to the boarding school, we felt
that our bad time had started. BAD TIME because no child likes to leave his/her
parents. That time we didn’t know that it was for our good, we only knew one Business
Youth Entrepreneurship thing that our parents don’t love us so they left us in a boarding school. But the
fact was that is when my good days started; I was more into studies and ambitions
and all the good stuff”.
But Rushikesh could not cope up with the ICSE pattern syllabus there and
NOTES
he kept losing interest in studies. Somehow he managed to pass 8th standard and
then told his father that he could not study anymore. But his father didn’t give up;
instead of getting him back home he sent Rushikesh to Aurangabad to his uncle
for further studies. His uncle was kind of strict when it came to studies and he
made sure that he slogged out until he became perfect in everything. That was
where Rushikesh got his basics strong.
After finishing his 12th in distinction, he moved to Pune to do his bachelor’s
in commerce. Rushikesh was very sure like his father about taking his business to
a different level. After completing graduation, he wanted to pursue Masters in
Business Management. He had taken admission in one of the best colleges in
Pune for MBA. But his family was going through the partition phase, and his
father wanted Rushikesh to be with him; he went back home to Nanded. But very
soon things were settled and his mother told him to pursue an MBA from Nanded
so as to learn management while being with family and family business.
In the words of Rushikesh, “And then started my MBA course, by now I was
pretty confident as a person. Management taught me many things that were very
useful for me in my business and my life. It made me more and more confident as days
passed. While working on a project “setting up a new small scale industry’ I got to
learn a very important thing in life as the owner of a small scale industry quoted
“DESTINY IS NOT TO BE WAITED FOR, IT IS TO BE CREATED” and I learnt
a very important lesson in life which has indeed helped to be what I am today.
After completing my MBA, I was happy to join the business. After a detailed
study of the processes of my business I found some loopholes which I thought I
should change and I did. And I was positively supported by my family for the same
and the good thing was it did have a positive impact on the family business and again
I was praised for the same. I made changes in the payment system of the creditors,
like making payments in advance by taking cash discounts. This made positive changes
in the balance sheet. I also took efforts to give training and grooming sessions to my
staff which turned out to be very fruitful because with the same staff and the same
resources my business grew at a rate which was far higher than previous years. I
also changed the billing system from the traditional handmade bills to computerised
billing. It changed the perception of people towards my business. It looked more
sophisticated, more standard and much more professional.
So now I thought it is the right time to expand, to grow bigger. After a
long thought process, analysing market conditions, and after exploring many
feasibility reports, financial calculations and I decided to set up a new business in
our own unused space which is near to our shop. I gave a presentation about the
new business proposal in front of my family members and as expected I got green
signal for the same. It was a small space so I had to work hard on it. We increased
the number of floors to make it bigger and after months of hard work our new
business was ready. To everyone’s surprise it did wonders. The parent company
whose franchisee we had taken gave us a target of a revenue of rupees one crore
for the first year which we actually completed within just 3 months. Today it has
been 4 years for the venture and we are only growing at a higher rate every year.
I follow the advice of my teachers and I did SMART WORK along with HARD
WORK. Just work smartly, you should always learn to analyse different situations
Business
in life and then act accordingly.
118
And now I think it is time to expand more and I am looking for opportunities Youth Entrepreneurship
and prospects. And I am definitely not stopping here.
This is my success story but this is not the end. I want to grow and I
certainly will.....”
NOTES
7.5 Summary
Youth is often referred as persons between the age of leaving compulsory
education and finding their first job. Youth unemployment is the unemployment of
young people. Youth unemployment has severe long-term socio-economic
consequences. It affects motivation level and ambitions of youth in an adverse
manner leading towards frustration. It may trigger violence and juvenile delinquency.
There is a need to enhance entrepreneurial mindset amongst youth. Youth
entrepreneurship is an effective solution to the problem of unemployment. It leads to
self-employment and also creation of job opportunities for others in the community.
Youth entrepreneurs are classified into three types on the basis of their
motivation for entering into entrepreneurial activity as necessity driven entrepreneurs,
opportunity driven entrepreneurs, and growth oriented entrepreneurs.
Young entrepreneurs are different from general or adult entrepreneurs in
many aspects. They are influenced by social/cultural attitude towards youth
entrepreneurship, entrepreneurship education, access to finance/start-up financing,
administrative and regulatory framework, business assistance and support. They
face more challenges and difficulties than their adult counterparts.
7.6 Key Term

• UNESCO: The United Nations Educational, Scientific and Cultural
Organization (UNESCO) is the ‘intellectual’ agency of the United Nations
which strives to establish peace on the basis of humanity’s moral and
intellectual solidarity

Questions
1. What is meant by youth entrepreneurship? Explain its significance
2. Highlight the role of entrepreneurship education for national development.
3. Discuss youth entrepreneurship as a strategy to solve the problem of
youth unemployment
4. Write in detail about barriers to youth entrepreneurship
5. Express your views regarding ‘developing favourable environment for
youth entrepreneurship’.
Business
Youth Entrepreneurship Exercise
1. Meet a few youth entrepreneurs and discuss their motivations, their
entrepreneurial journey, the difficulties faced by them due to their young
age.
NOTES
1. Which one of the following is true?
i. One who is willing and able to work but who do not possess a job is
an unemployed person.
ii. An unemployed person is actively seeking a job and searching for
a position
iii. Youth unemployment is the unemployment of young people
iv. all the above
Answers
Check Your Progress
2. Pre-entrepreneurs, Budding entrepreneurs, Emergent entrepreneurs
1. iv
7.8 Further reading

http://www.yosuccess.com/success-stories/ritesh-agarwal-oyo-rooms/
http://www.unesco.org/new/en/social-and-human-sciences/themes/youth/
youth-definition/
http://yas.nic.in/#
Business
Family Business and
UNIT 8 : FAMILY BUSINESS AND Entrepreneurship
ENTREPRENEURSHIP
NOTES
Structure
8.0 Introduction
8.1 Unit Objectives
8.2 Family Business and Entrepreneurship
8.3 History and Evolution
8.4 Characteristics
8.5 Various Types of Family Business
8.6 Advantages and disadvantages of Family Business
8.7 Succession Planning
8.8 Pitfalls in Succession Planning
8.9 Summary
8.10 Key Terms
8.0 Introduction
Family businesses are broadly considered and seen as backbone of the
economy; they are rooted locally, they generate wealth, they offer jobs,are linked
to their societies and they seem to be around for elongated period of time. However,
in spite of the many inspiring aspects of family businesses, there is also a darker
side. Disputes in family, not so experienced members of the next generation and
flamboyant and showy lifestyles are just some of the more recurringcriticisms
about family businesses. In this unit, we are going to discuss about family business
and entrepreneurship, its history and evolution, characteristics, various types of
family business, advantages and disadvantages of family business, succession
planning, pitfalls,improving family business performance.
8.1 Unit Objectives

After going through this unit, you will be able to:
• Explain characteristics of family firms
• Explain advantages of family firms
• Describe why succession planning is required in family firms Business
Family Business and • Explain different types of family firms
Entrepreneurship
• Explain the top five pitfalls of succession in a family Business
NOTES
8.2 Family Business and Entrepreneurship
Family business isa business actively owned and/or managed by more
than one member of the same family.
Family business is a relatively new arena, but the business research in this
field has gained increased attention recently.As there is not a single or sole,
comprehensive understandable definition of a family businessso associating various
research results is, however, challenging. This may be owing to the slight consensus
as this is a comparatively new and young research field, but also as of different
elements, which affect the changing definitions. Furthermore, the resemblance
and similarity of these firms/businesses can be cross-questioned, as every family
business has its own history, culture and characteristic that is diverse in various
ways.
However, afirm needs to meet the following conditions to be considered
as a family business, irrespective of the legal form, sector or age, firstly, a family
(i.e. an extended family formed e.g. by grandparents,siblings, and cousins, or at
most a small number of families) has possession and controls the ownership.
Secondly, individuals belonging to the family, or the extended family, are on the
company’s board or participate otherwise in the activities of the company. Distinctive
of all family businesses is the addition of a firm, ownership and business. Endurance
of the business is also the one chief element, i.e. there is a conscious intent to
handover the firms (leadership and control) to the following owner generation.
For instance, where the voting control is in the hands of a given family, in a
proprietorship, partnership, company, corporation or any other form of business
association it is considered as family business.
According to PWC 2014 Family Business Survey, which is their seventh
study of family businesses globally, ‘family business’ is a business where: the
most of the votes, one can say, majority are held by the person who has found/
established or acquired/ purchased the firm (or their family including their parents,
spouses, child, or direct hairs of the child’s); minimum one family representative
shall be involved in administration or management of the firm. In alisted company,
the person (or their families) who has acquired or found/ established the firm /
business must have 25% of the right to vote through their share capital and minimum
one family member should be on the board of the company.
As an entrepreneur, you may perhapsfear even more than the ordinary
entrepreneur about ensuring that your company not only survives, but also flourishes
to nurture the next generation if you own a family business. Quite a few years
ago, researchers David Sirmon and Michael Hitt examined the strategies behind
successful family business. They found that success is knotted directly to how
well a company manages the five unique resources every business possesses.
A family business is a profitable and commercial association in which
decision-making is prejudiced by multiple generations of a family-related by blood
or marriage- whichis closely recognized with the firm through its ownership or
leadership. Owner-manager entrepreneurial firm is not considered to be a family
Business business as there is nonexistenceof the multigenerational dimensionalelement and
family influence that form the exceptional dynamics and relationships of family Family Business and
businesses. Entrepreneurship
Family business is the oldest and the most common model of economic
institute. The massive majority of businesses across the globe from corner shops
NOTES
to international publicly listed establishments with thousands of employees can be
considered family businesses. Establishedfrom research of the Forbes 400 richest
Americans, 44% of the Forbes 400 member’s fortunes were derived by being a
member of or in association with a family business. Over 30% of companies with
sales over $1 billion are family owned businesses.
In a family business, at least two or more members within the managingand
administrative team are drawn from the owning family. Family business can also
have owners who are not the extended family members. However, family members
are often involved in the process and operations of their family business in some
or the other capacity / position and, in smaller companies, usually at least one or
more family members are having the positions of senior officers and managers.
Family participation usuallysupports the business because family members
are usually very faithful, honest, loyal, innovative, responsible and dedicated to the
family firm. Such faithfulness generally decreases struggling for power in the
business firm, providesupswing to cooperation and trust, great communication,
and creates good level of understanding. The soul of an enterprise and efficient
actions also considered and belong to the strengths of the family business. Decision
making is generally more centralized, effective and efficient because of
simultaneous roles in the family firm. Though, synchronized roles can also have
negative consequencesand concerns such as mixing up of family ownership and
business possibilities,grief from poor profit discipline and lack of objectivity of
marketplace. The family business may also have difficulties in special organization
structures, internationalization and growth, succession planningprocedure and
emotional charge (fightsthose are basically based on the ownership and the exercise
of power). However, existing studies have found some submission that small firms,
usually family-owned firms, have performed on average better than large ones
measured by profitability and growth. In addition to growth, because of the age
structure of the entrepreneurs, succession has lately been an especially important
issue in the arena of family business.
• Family businesses constitute about 80%–98% of all businesses in the
world’s free economies.
• Family businesses produce 49% of the gross domestic product (GDP) in
the United States.
• Family businesses produce more than 75% of the GDP in most other
countries.
• Family businesses hire 80% of the U.S. workforce.
• Family businesses hire more than 75% of the working population around
the world.
• Family businesses generate 86% of all new jobs in the United States.
• A total of 37% of Fortune 500 companies are family-controlled.
• A total of 60% of all publicly held U.S. companies are family controlled.
• Number of family-owned businesses in the United States: 17 million Business
Family Business and • Number of U.S. family-ownedbusinesses with annualrevenues greater
Entrepreneurship than$25 million:35,000
• Family business outperformanceof nonfamily businesses inthe United
States:6.65% annually inreturn on assets(ROA)10% in market value
NOTES
• Family business outperformanceof nonfamily businessin Europe:8%–16%
annually inreturn on equity(ROE), depending onthe study.
• Family business outperformanceof nonfamily business inLatin America
(Chile):8% annually in returnon assets and returnon equity.
According to PWC 2014 Family Business Survey; Indian family businesses
are focused on growth and most of them are expecting bullish growth (nearly
50%). For achieving significant growth, they are adopting latest technologies and
are keen on professionalising. Two-thirds of Indian family businesses have grown
in the last financial year (2012- 13) in line with the global average.
Differences between Family and Non-Family Firms
Firm-value maximization is not the only goal of the family companies.
There exists a number of other, family- centred goals, such as wealth creation,
maintaining socio-emotional wealth and family harmony, as well as providing
employment to family members.
Moreover having different goals, family firms have also been found to be
different in terms of long-term orientation the purpose of family business owners
to preserve the family inheritance for its transmission to following generations.
While a large number of past studies found larger financial performance
of family businesses compared to nonfamily ones, other authors, such as O’Boyle
found no significant main effects. According to a recent study, there exists an
Check your economically weak, although statistically significant, superior performance
Progress compared to non-family firms. Besides different goals, performance differences
are often explained by agency costs reduction. Since the interests of owners and
1.Explain the term hired managers are different, managers may act in order to maximize their own
Family Business. utilities instead of those of the shareholders. This vagueness can be mitigated in
the case of family firms. However, other authors suggest that with family
2.Differentiate be-
unselfishness and conflict between majority and minority shareholders, principal
tween Family and
conflict can exist, offsetting advantages.
Non-Family Firms.
8.3 History and Evolution

Since the 1980s, entrepreneurship has emerged as a topic of growing
interest among management scholars and social scientists. The subject has grown
in legality, particularly in business schools. This scholarly interest has been
encouraged by a set of recent developments in the United States: the energy of
start-up firms in high technology industries, the expansion of venture capital
financing, and the successes of regional groups, notably Silicon Valley. Interested
by the goal of understanding these developments, management scholars and social
scientists interested in entrepreneurship have tended to focus their attention on
studying new business formation, which provides a similar and easily surrounded
basis for quantitative empirical work. These studies commonly use large datasets
of founders or firms and employ hard social science methodologies, but give little
Business
logical attention to the chronological or geographical context for entrepreneurial Family Business and
behaviour. Entrepreneurship
In contrast, historical research on entrepreneurship started much prior,

and traces its roots to different motivations and theoretical concerns. The historical
NOTES
study of entrepreneurship has been particularly concerned with understanding the
process of structural change and development within economies. Business
historians have focused on understanding the fundamental character and causes
of the historical transformation of businesses, industries and economies. This
historical research has typically employed a Schumpeterian definition of
entrepreneurship. Unlike the recent management scholarship, it has not focused
primarily on new firm formation, but rather on the varying forms that innovative
activity has taken and on the role of innovative entrepreneurship in motivating
changes in the historical context of business, industry, and the economy.
Family Business in India: A Historical Perspective
Of course, with its varying nature and structure over the period family
business in India had been in practice since long. India relishes a rich and magnificent
history of family-owned business. The foundation of family business in India is
traced back to the bazaar system in the earliest times.
Originally, in the form of trading and money lending family business in
India commenced involving the hustle and bustle of the bazaar. It was also narrowed
to certain communities, particularly the Jains and the Marwaris especially in the
northern India.
Going back largely to the British rule and the First World War, its industry
form is comparatively of recent origin. Here is one such example to it. Cawasji
Davar in 1854 set up the first cotton mill, or say, the first manufacturing enterprise
in Bombay (now Mumbai).
Resultant upon this, during the last half of the 19thCentury some trading
communities started textile mills in Mumbai and Ahmedabad. The trading
communities emerged as the Gujarati Jains and Banias, Parsees, Muslim Khojas
and Memons in the West, Agarwals and Guptas in the North, the Chettiars in the
South, and Marwaris all over India. Today, Agarwals are mostly referred to as
Marwaris.
Jamshedji Tata started his wide-ranging business enterprises like cotton
mill in Nagpur, the Taj Hotel in Mumbai, his famous steel plant in Jamshedpur, and
numerous real-estate developments. These initiatives, in turn, encouraged other
people to join the business foray. A number of families, such as Birlas, Bangurs,
Goenkas and Khaitanscommenced their businesses in Kolkata and industrialized
the city as a centre for commerce.
Initially, family businessmen were involved in small-size businesses
necessitating small capital investments managed onlyby them. However, once they
came into manufacturing sector, they felt the need for more and
substantialfundswhich was not controllableand manageableby them.At the same
time, they also realised that once they permit someone else to join business, their
control over management of the business will decline which they, however, did not
want. In such a situation, family businesses invested and inducted their own extended
family members or relatives or friends in the business by assigningthose blocks of
shares however making sure that the majority control andopportunity,in the
managementand administration of the business remained with the endorsing family
Business
itself.
Family Business and Surrounded by a combination of joint stock principle and family control
Entrepreneurship over business is how corporate management was born and came into existence.
usiness families were holding control over their business empires built up through
he clever device, since stock markets were yet to gain satisfactory momentum, on
NOTES the one hand, and the joint family system was also whole, on the other, prevalently
known as the ‘managing agency system.’
Untilthe year 1970, the managing agency system continued as atool of
maintaining family control over business enterprise. By itself, all seriousand crucial
decisions about the business were taken by the promoting families, inoffensively
termed as managing agents.
Eventually, thissystem of corporate management got so entrenched that
barely any industrial firm remained out of its orbit. In other words, this specifies
that all businesses were organised and managed by a handful of families in the
country.
R. K. Hazari, a well-known industrial economist, had resolved after an
exclusive analysis that most of the prominent industrial firms on the outlines of
Indian business during the 1950s, were in the hands of just 18 Indian families and
two British houses. Nevertheless, the period of 1950s experienced convinced
changes with quite a few developments trembling and disturbing the business
environment, in general, and family business, in particular.Theresult was the
formerpeacefulstate that the family business was relishing in the country got
significantly disturbed particularly by four major developments as stated below:
1. Private sector was invited by Government to contribute to new
opportunities obtainable for business and industrial development with a
purpose to accelerate the speed of economic development during the
post-Independence period to solve the problem of unemployment and
poverty aggravation.The Government invited private sector, of course,
amongst a countless of restrictions imposed on the freedom of
innovativeness.
2. Many financial institutions were set up to provide finance to private
sector enterprises by the Government, both at Central and State levels
in the country.
3. Gradually losing its place in the social structure the joint family
systemstarted experiencing severe pressures and threats that was once
the foundation of the Indian social structure in India.
4. In India one of the major factors in boosting family business is the right
of possession of private property and its inheritance.
In totality, these fluctuations, in turn, caused variations in family business
in the country. With growth in the benevolent size of infrastructural projects in the
country, including finance from their own resources, business families were no
longer capable enough to organize the required resources.
As a result from promoting families to financial institutions, financial control
of business started shifting gradually. Likewise, the business families also started
splitting and cracking. To quote, after freedom the Dalmias were the first prominent
business house in the country to break up.
The pace of splitting family business has been increasingly growing and
Business
the splitting family businesses started quickening in the country beginning with the
year 1970. Business history is completely with growing number of families splitting Family Business and
in the country over the period for example the Ambanis, Birlas, Goenkas etc Entrepreneurship
However, it is worth saying that, the family control over management of

business still remains reduced in the hands of encouraging families in spite of
NOTES
various fluctuations like losing financial control over business and growing splits in
businesses.This is specified by the fact that the management of as many as around
461 out of 500 most valued companies is still under family control in our country.
To manage the affairs of business one of the important changes in family business
in India is introduction of professionals and employing them to look after
management issues in their business e.g. Reliance Group.
Check your
With increase in size of business, split in family businesses are also increased Progress
in the country over the period. Goenka family and Ambani family are such examples
3. Explain the evolu-
of split in family business in our times.
tion of entrepreneur-
India has the maximum percentage of family businesses in Asia, according ship
to a study done by a Swiss investment and banking firm Credit Suisse, with as
much as 67% in the 10 Asian countries that were surveyed. According to the
Family Business Survey, 2012, carried out by Price Water Coopers (PwC) 74% of
the family businesses have developed in sales as compared to a 65% worldwide
averageby family-owned enterprises the Indian industry is largely dominated.
Family businesses expansion in India has been led because of favourable
and encouraging licensing policy and a high degree of trade barriers against competition.
Industrialization in India was brought by the British Colonization. The
political variability and economic limitations saw the blossoming of several large
family based firms such as Tata, Birla. Post-independence, India accomplished
the sociologist form of economy, which exhilarated the development of public
sector enterprises. License raj was imposed between 1948 and 1956, which put
limitations on private sector enterprises and levied heavy duties on imports and
entry into certain industry sectors was restricted. By the eldest son of the family,
family business was headed. Daughters were rather to get married through
arranged marriage into a family of equivalent economic stature and left their family
of origin. Daughters-in-law were likely to take on charity work of the business.
Without affecting the businesses the differences in the family were largely
repressed, unsettled and remained under the carpet. Only in the absence of sons,
daughters would inherit the business, if they were the eldest and unmarried. The
non-family members working in the business were family-loyal.
In 1991, licensing was progressively restricted to a few areas that the
government considered strategic and which involved the security of the country
afternumerousactions were taken towards liberalization, globalization and
privatization. Tariff and non-tariff obstructions to imports were gradually reduced.
Long-term capital gains tax increased by 35%. Income tax rate fell by 11%. These
steps resulted in an increase in the level of competition. The family groups in India
faced a new environment that called for a change in their strategies. This enforced
Indian family firms to change their strategies as this created a highly competitive
environment. The liberalization also brought about cultural changes in the family
structure. In the next generation,family business responsibilities comprisedof
daughters. To decrease family tension and conflict was the objective. The siblings
have started managing different business units. Siblings handled the business units
contrarily, led dissimilar lifestyles, showedunlike leadership qualities and showed
changing degrees of business performance and wealth growth. Richer ones made
advanced stakes in the parent company and supported their own children to inherit Business
Family Business and the business. Reasons for conflict in the family business were:absence of
Entrepreneurship transparency in earnings and finances, suppressedfeelings, and each sibling wanting
to take care of their own male offspring.
That family business environment in India has changed significantly over
NOTES
the period - earlier business was considered as family, focus was onfamily wealthand
prosperity, growth strategies of time, expansion and diversification and due
consideration to family succession planning for next generation. At present family
as business is considered, focus is onshareholders’ value and prosperity,economic
value addition, growth through core and competitive competencies and due
consideration is given for planning for attraction and retention of professionals.
8.4 Characteristics
Family firms have been the importantconfiguration of the business
landscape for ages and have played animportant role in employment, income
generation and wealth creation. They represent a major engine of economic growth
and wealth creation. They need to plan a confident image and reserve a good
status with investors owing to a heightened need to protect the family status and
legacy. Scholars believe family firms contain limited characteristics derived from
the pattern of proprietorship, development and supremacy. These characteristics
have influence on the strategic process thereby disturbing the performance of
those firms. Following are the characteristics of family business:
• In the business high participation of family members: - This means
by family members the strategy and decision-making, strategic planning
and day-to-day activities in the company are operated.
• High learning and sharing environment within the organization: -
It means that even in family get-togethers sharing about the business
occurs many times. As they frequently get to hear about the business, all
family members generally understand about the business progress.
• High dependability and trust in each other: - For instance, it is
easier to trust one of the family members to handle the business if the
owner or the person who is in charge of the business gets ill or occasionally
cannot involve in the business.
• Family-hood management style: -The business will manage in the
sense of family-hood as the emotional binding within the business is very
high. Maximum of the family members respect the founder, as the founder
is the parent or grandparent.
• High sense of belongingness from family member to the business:
-As the business belongs to them or to their parent or grandparent the
family member has high sense of belonging to the business.
• Less formal management and twin leadership: - The management
of family business tends to be less formal and typicallytwin leadership
exists. When the owner delegates the business to the outsider
professional or the other family member the twin leadership comes into
existence. Though, the owner will still interfere in the decision making
process and will have strong control over the business. It is usualsince
the owner has high emotional connection towards the business and high
Business
expectations towards the prosperity and success of the business.
Family Business and
8.5 Various Types of Family Businesses Entrepreneurship
All family businesses are diverse. That is the reason it would be erroneous
to collide them all together in less than one caption.While most family businesses
are perhaps and probably started for like reasons, but their progress is all different, NOTES
depending much on the ownership style of every family. The various types of
family businesses are as follows:
Check your
• The Sole Practitioner Progress
As the name advocates, this is a one-man-army kind of business, where 4. Explain the charac-
the proprietor or owner wears many hats within the business. This is how maximum teristics of family busi-
family run businesses start out, with one entrepreneur, or twosome as the originator nesses.
and owner of the new business, and then it develops from there. In most of the
cases the development and expansion of family businesses from this sole practitioner
stage happens progressively and gradually, as the founder family develops and
more members take an active attention and participation in the company.
This can be considered as uncertain and problematicalphase to changeand
bring modification in management from, as the founder has a strong emotional
connectionwith the company, and might find it hard for submission or surrender or
part control of the business with another family member. The sole practitioner is
so familiar running every different feature of the business single handily, and often
feels extraordinary.
• Associated Partners
The union of the different entrepreneurs could be in various and numerous
different forms; this is not primarily a formal partnership in the legal form of the
term such as a Limited Liability Company (LLC), a corporation or other
enterprise. By at least two or more entrepreneurscoming together jointly, this type
of family business is created, in the case of family businesses, usually siblings or
cousins, who then takeup on ownership and management of different dimensions
and facets of the business.
• Family-controlled versus family-influenced businesses
This is also asignificant area in which family businesses can diverge greatly.
When business activity is referred or mentioned to as a family business it means
family-controlled businesses. This isa situation where a family member is not
theindividual owner of the business, but is actively participating in the management
and running of the business on a routine basis.
Conversely, in family-influenced businesses, family members do not actively
participate in management and running of the business. It is a situation where the
running of the business possibly isdelegated to key employees who could be better
suited for definite roles than any other family members. Family members may possibly
have variable degrees of control in this kind of business model, extending from seats
on the board, to the greater part of the company shares.
• The effect of internationalisation on family businesses
It takes up more interrogations than other business models have to retort, when a
family business decides to expand internationally. More frequently than not, mounting
internationally means that the family-controlled business will necessarily must have
to welcome outside parties into the supremacy or power of the company in one
shape or other. Business
Family Business and Family-controlled businesses would require to decide how to take in outside
Entrepreneurship parties in their controlled business with the options available like to give thecomplete
control of international subdivisions, or have them in more of a decision maker
role, or to a certain degree in-between., As the family is already used of controlling
NOTES and authorising external parties, have more control over the actual running and
operation of the business.Family-influenced businesses would find this change
easier to take on as compared with others.
Seldom, in order for a family business to positively expand by crossing its
borders, the family has to admit the fact that their control over the business may
have to be curtailed. This can be tougher for some, but in the long run each family
business must decide what possessing and holding their own business means in
Check your reality, and how much extent of control over it they actually need.
Progress
5. Describe the vari-
8.6 Advantages and Disadvantages of Family
ous types of family Business
businesses.
Following are some advantages and disadvantages of family business:
• Advantages of Family Business
Family firms are long term concerned with care and growth about the
future. This is supported by a research done earlier thateven in the bad times, this
is related with a possible greater dependability.Family bonds keep their firm running,
which can be seen as a support that non-family firms lack.Predominantly in terms
of profits and revenue stability loyalty of family firms is a more universallookout,
has been reported by multiple researches. Nevertheless, loyalty, devotion and
variation are sometimes considered to be in a trade-off relationship. Dislike to
change can possibly limit the opportunities of growth, which has been described
by some researchers.
Another aspect of faithfulnessis a lower variation of employees, lower
rotation of employees, encouraging employment environment and reluctance to
fire employees during the times of crisis.
Terms such as faith and relationship have been frequently and commonly
mentioned. While they contribute to a better working environment, they are also
related with another benefit of family firms; one of the realities is that family ties
and bondsminimize misbehaviour and criminality.
Another benefit of family firms mentioned by the offenders is the fact and
the reality that family owners are keener to share information and know-how with
their employees. Within family firms this can be seen as a better distribution of
knowledge - both formal and tacit knowledge.
Family businesses also enjoy a positive status in terms of dominance,
superiority and tradition, which may positively affect the demand for their products
and services.
• Disadvantages of Family Business
Conflicts and clashes seem to be one of the major disadvantages of family
businesses. Although all businessesought to deal with communicating dynamics,
family participationbrings togetherasupplementary source of complexity. Conflicts
can arise amongst spouses-husband and wife, as well as between parents and
Business children, between siblings, or between family and non-family employees.
Between parents and their ancestors the first kind of conflicts or a clash Family Business and
can arise, and possibly even repeatedly between fathers and sons. In specific, Entrepreneurship
parents and children can have different opinions about management and operational
tasks (they are supposed to have different views and attitudes in
general).Childrenmay possiblydeliberate their parents old-fashioned, whereas NOTES
parents must be set to acknowledgethat their children can perform better; have a
better cognizanceof contemporary trends in technology, fashion, society, etc.
parents could have too high expectations: children will probably not be as good as
their parents expect them to be. Certainly, control by successors has been
habituallyrelated by a lower profitability, development or growth in the past works.
Principallydue to unequal emotional and material handling conflicts may
also arise between siblings, where a likelycompetition may occur between siblings,
and between family and non-family members – in precise, non-family employees
may see harmfully parents who give special treatment to their children, or
favouritism granted to relatives (partiality).
Clashes and conflicts between spouses (husband and wife) but also
amongst generations can be due to the absence of parting or bifurcation of work
Check Your
and family: dearth of boundaries between work and family, bringing home work-
Progress
related snags, and working ‘24hours a day’. Anotherrecurrentlyrevealed source
of conflicts is having no hiding place at home and no possibility of being alone, too 6. Discuss the advan-
much attachment. Further, when dealing with their children or spouses family firm tages of family busi-
managers cannot afford to be too strict. Harsh things are not easy to tell when ness.
dealing with own family members. Gustaffson and Norgen stated that too strict
policies or policies that entirelyprevented family ties within the company could 7. Discuss the disad-
harm the company’s way to success in the long run. Such difficulties can emerge vantages of family
in the case of autocratic or despotic leadership style of the family firm founder. business.
Moreover conflicts or clashes between family members and possible

partiality, there are other disadvantages because of emotional ties; a distress of a
family firm can have a negative causal impression on the whole family.
8.7 Succession Planning

Family businesses are limited in the quantum to which succession planning
undertakes a key and very strategic role in the firm’s life. Competitive success
simultaneously within the firm family harmony, and ownership returns are all at
stake, cautiously arranging the multiyear process signified by succession across
generations of owner-managers is significant. There are hundreds of reasons why
organizations fail, but in family-owned and family-controlled corporations, the prime
reason relates to a failure in succession planning. Whether the underlying reason
is inexpert, inexperienced or unclear succession plans, unprepared successors, a
tired strategy that is unable to comprehend competitors, or family competitions
and offers for power. For a family business to survive in long run it has to efficiently
and effectively craft its succession process.
Succession can be defined as the procedure through which leadership of
a business is transferred from the outgoing generation to the successor generation,
which can either be a family member or a non-family member. Family business
owners need to conserve that they include the succession facets into their early
business model of the family business. Sustaining the family business over the
time early identification of succession is a significant and vital element. Interrelated
Business
to this is the serioustiming of decision. When should the next generation be Entrepreneurship - VI 131
Family Business and introduced into the business, and when should the founder family members retire,
Entrepreneurship are thoughtful, serious and key questions that need to be planned at the early stage
in the life-cycle of the family business. It is essential for successionto be considered
as a process and not an end point.
NOTES
Why plan?
Perils and risks are high when it comes to succession planning for a
business. Operational planning creates opportunities; it pronounces, describes and
discourses a company’s plannedgoals and challenges. It further identifies the
qualifications and abilities needed to meet contemporary and forthcoming leadership
needs and offers long-term business value.
Thoughtful planning can:
• Elude pressure and lessendoubt for business owners and families
• Strengtheninvestor confidence
• Progress employee morale
• Prevent essential business interruptions.
Assuring and guaranteeing a successful transition requires a focus on
four dimensions of the business succession plan: leadership, ownership, legacy
and values, and wealth transition.Succession planning is neither easy nor
straightforward. Those four dimensions sit at the core of any successful succession
plan and are key thoughts for all three primary shareholder groups – owners,
families, and the business and investments.
From a succession and family perspective
1) For all of the children to be entangled and involved in the management
of the business is not always possible. The pointthat they are siblings
does not automatically make them good future managers.Recognize the
children who will contribute in the future business early, and confirm
that they are correctlytrained and receive proper skills development.
2) In the occasion that appropriate qualified off-springs are not available
in time, family businesses could develop and implement a seat-warmer
succession strategy where the family appoints one of the family members
in a definite position with the view to grow the issuesfor the future in
that specific position.
3) Siblings who wish to enter the business athorough understanding of the
entire business environment facing the familybusiness is required by them.
Do not promote them into senior levels until such knowledge of the
business is improved.
4) In order to successfully deal with present global business issues
investment is needed in the continuous expansion of the people and skills
of the enterprise.
From a business perspective
1) Family businesses need to create and establish a reliable and authentic
market position initially, and should build effective trading and supply
channels right from the beginning of the business.
Business
2) By itselfdevelopment creates control and management problems, Family Business and
geographical deviation varieties should be managed with extreme Entrepreneurship
alertness.
3) Develop an adaptive attitude and a planning to react to unanticipated
NOTES
and surprising events.
4) With anoutlook to grow the business lookout against expanding too
quickly. Bigger size does not necessarily mean more success for family
businesses.
5) Stick to the business model that functioned and worked early in the life
of the business, but twist the model in the face of vital environmental
changes.
6) Map out the cause and effects of early decisions and learn how these
will affect future of the business.
Three patterns of ineffective succession were identified in one study as
follows:
1. Traditional: Though the parent has departed the business, the parental
shadow remains, and the firm and its strategies are impenetrable in the Check Your
past. Progress
2. Disobedient: In what is repeatedly an overreaction to the earlier 8. Explain the term
generations control of the firm, the next generation launches a clean- succession planning.
slate approach to the organization. As a product, cultures,ethnicities,
inheritances, and even the business model or its ‘secret to success’ are 9. Describe why plan-
destroyed or rejected. ning is necessary for
succession planning.
3. Indecisive: The next generation is hooked and paralysed by
indecisiveness, not skilful to adapt the business to contemporary
competitive conditions; it also fails to make its mark and adopt leadership
effectively.
8.8 Pitfalls in Succession Planning

Succession in a family business can be troubled with challenges. Eluding
these five pitfalls will upsurge the chances of successful family and business
continuity.
1) Unclear shareholder goals:There are many shareholders in family
business succession: current owners, future owners, staffs, family
members and governing boards to name a few. When in vision of
succession, shorten the goals of each key shareholder, chiefly since they
are often not related. Goal transparency is vitalfor successful business
continuity and survival as it consents for honest discussions and eventual
agreement on a strategy. Succession decisions made in void can result
in hopeless and unintended consequences.
2) Overlooking the emotions:Wouldn’t it be amusing if all our decisions
were balanced? Thriving, neuroscience is showing exactly the
contradictory: our decisions are emotional, and we use reason to defend
them. Since every shareholder views succession from a different lensand
perspective this pitfall is closely aligned with pitfall mentioned above
withdifferent needs and with different emotions. Opening and initialising Business
the dialogue about these needs can senseunsafe, vulnerable, yet it’s Entrepreneurship - VI 133
Family Business and perilous to successful transitions. Regarding speaking of emotions, owners
Entrepreneurship who fail to focus on their ‘third act’ or ‘extra career’often find them
paralyzed, incapable to implement on their continuity plans.
3) Postponing the conversation. Whether it’s planned or unplanned,
NOTES
succession will take place, and planned changes set up future owners
for betteraccomplishment than unplanned ones. The longer business
continuity discussions are deferred, the less the options to consider and
shareholders risk getting supported into a corner. Starting the discussion
doesn’t mean implementing the plan. Much work can go into preparing
for successful business transition, from evolving future leaders to estate
planning, before the leadership wand is officially passed on.
4) Hiding from difficult conversations:Leaders of family businesses have
contradictory jobs. On one hand, they are responsible for short and long-
term sustainability and viability of the business as leaders of a family
business. On the other hand, they are often parents, accountable for
raising new members of society. Within a leader sometimes these roles
create a fight. Succession planning decisions sometimes leads to disappoint
people we love. Finding the courage to have these conversations means
leadership.
5) Underinvesting in the change:Fortuitously, there are many
knowledgeable professionals to help because business continuity decisions
are often tough.Consider adding a transition advisor to coordinate your
advisory team in addition to your attorney(s), auditors and financial
advisors. Think about a philanthropy advisor. Bring in a coach.To help
leaders clear out the dusts, make simpler their goals and ease effective
decision making are done with the help of trained coaches.Cooperative
advisory teams cost high, but the results they deliver are far more
operative and should save you money and sorrow in the long run.
8.9 Summary
Ø Family businesses are broadly seen as the backbone of the economy,
they generate wealth, they offer jobs, they are locally rooted and linked
to their societies and they seem to be around for long periods of time.
Ø Family firms have been the vital composition of the business landscape
for eras and have played an important role in employment, income
generation and wealth growth.
Ø Family films also enjoy a positive reputation in terms of quality and
tradition, which can positively affect the demand for their products and
services.
Ø Succession must be considered a process, not an end point.
Ø Guaranteeing a successful transition requires a focus on four dimensions
of your succession plan: leadership, ownership, legacy and values, and
wealth transition.Succession planning is neither easy nor straightforward.
Ø Top five pitfalls of succession in a family business
Business • Unclear shareholder goals

• Overlooking the emotions Family Business and
Entrepreneurship
• Postponing the conversation
• Hiding from difficult conversations
NOTES
• Underinvesting in the change.
8.10 Key Terms

Check Your
• Family Business and Entrepreneurship:A commercial organization Progress
in which decision-making is influenced by multiple generations of a
family—related by blood or marriage—who are closely identified with 10. Describe the pit-
the firm through leadership or ownership falls of succession
planning in a family
• Entrepreneurship: The activity of setting up a business or businesses, business.
taking on financial risks in the hope of profit
• Succession Planning:A process for identifying and developing internal
people with the potential to fill key business leadership positions in
the company

Questions
1. Explain Family Business and Entrepreneurship.
2. Explain the term Family Business.
3. Differentiate between Family and Non-Family Firms.
4. Explain the evolution of entrepreneurship
5. Explain characteristics of Family Business.
6. Discuss advantages of family business.
7. Discuss disadvantages of family business.
8. Describevarious types of family business
9. Explain the term succession planning.
10. Describe why planning is necessary for succession planning.
11. Describe the pitfalls of succession planning in a family business.
Exercise
1. Visit a local family business and interact with the entrepreneurs to seek
information about the business
1. A business actively owned and/or managed by more than one member
of the same family is called
Business
Family Business and i. Family business
Entrepreneurship
ii. Private business
iii. Corporate business
NOTES
iv. None of above
2. Which is not the type of family business?
i. The Sole Practitioner
ii. Associated Partners
iii. Family controlled versus family-influenced businesses
3. Which is not the dimension of succession?
i. Succession in leadership
ii. Succession in ownership
iii. Define and preserve family legacy and values
iv. None of above
4. Which one of the following is not the pitfall of succession in a family
business
i. Unclear shareholder goals
ii. Under looking the emotions
iii. Postponing the conversation
iv. Under investing in the change
5. Family business and entrepreneurship are same?
a) Yes
b) No
6. Succession must be considered a process, not an end point.
i. True
ii. False
7. Thoughtful planning can
i. Avoid pressure and lessen doubt for business owners and families
ii. Toughen investor confidence
iii. Progress employee morale
iv. Prevent important business interruptions.
v. All of the above
8. The long forms of LLC is the?
Business
i. Limited Liability Company Family Business and
Entrepreneurship
ii. Lifetime Liability Company
iii. Limited Leverage Company
NOTES
9. Associated Partners is the type of family business.
i. Yes
ii. No
10. Who examined the strategies behind successful family business?
i. David Sirmon
ii. Michael Hitt
iii. i and ii
Answers
1. i
2. iv
3. iv
4. ii
5. i
6. i
7. v
8. i
9. i
10. iii

Charantimath, P. M. (2009),Entrepreneurship Development Small Business
Enterprises, Dorling Kindersley (India) Pvt, Ltd., Delhi, pp. 290
Chua, J., Chrisman, J., & Sharma, P., Entrepreneurship Theory andPractice,
23(4), 1999, pp. 19–37.
D. Wagner, J. H. Block, D. Miller, Ch. Schwens, G. Xi, “A meta-analysisof
the financial performance of family firms: Another attempt”, Journal of Family
Business Strategy, vol. 6, no. 1, pp. 3-13, March 2015.
Geoffrey Jones and R. Daniel Wadhwani , (2006).Entrepreneurship and
Business History: Renewing the Research Agenda, 2006.
Business
http://www.kpmgfamilybusiness.com/different-types-family-businesses/ Entrepreneurship - VI 137
Family Business and http://www.pwc.com/
Entreprenership
Entrepreneurship
http://www.yourarticlelibrary.com/essay/family-business-in-india-a-
historical-perspective-with-example/41128/
NOTES http://www2.gnb.ca/content/gnb/en/departments/human_resources/
career_development/content/succession_planning/five_step_process.html
https://www.business.gov.au/Info/Plan-and-Start/Develop-your-business-
plans/Succession-planning
https://www.coursera.org/specializations/wharton-entrepreneurship
https://www.entrepreneur.com/
Joachim Schwass and Colleen Lief, Perspective for
Managers,www.imd.ch, No.165,November 2008.
Miller, D., Steiner, L., Le-Breton-Miller, I., Lost in Time: Intergenerational
Succession, Change and Failure in Family Business. Journal of Business Venturing,
18, 2003, pp. 513–531.
Porras, J., & Collins, J., Built to Last. New York: HarperCollins, 1997
Business
Technopreneurship
UNIT 9 : TECHNOPRENEURSHIP
NOTES
Structure
9.0 Introduction
9.1 Unit Objectives
9.2 Technopreneurship
9.3 Challenges
9.4 Entrepreneurship versus Technopreneurship
9.5 Significance of Technopreneurshipand Risk Involved
9.6 Implications of Technopreneurship and Technology Management
9.7 Profiles of Technopreneurs
9.8 Summary
9.9 Key Terms
9.0 Introduction
In order to resolve a problem or perform a specific function,nowadays
technology is used throughcreatinginformation of tools, machineries, methods, systems
or methods of organization. Not only for entertainment has technology been utilizedbut
also for improving the business type and to preserve a business process.
Entrepreneurshipis the action of gatheringaspirations, efforts, invention
and imagination in terms of creating business to be profitable and useful for the
whole society and to preserve the economic condition of acountry.
These days economists, educational institutions, and entrepreneurs are
trying to associate both entrepreneur and technology as one idea of
Technopreneurship which means extension of entrepreneurial activity in line
with the usage of technology. It means that, both technology and entrepreneurship
cannot be detached in this era and supports each other for social welfare and
prosperity. Entrepreneurship activity has become easier by using technology and
entrepreneurs can utilize thetechnology wisely for success.
Technopreneurs are the entrepreneurs who are into the essential businesses
relatingto technology-based industries. They make use of technology to come out
with new or creative products through a process of commercialization. The
businesses are generally marked with high growth potential and high influence of
knowledge and intellectual property. Potential Technopreneur must be fortified
with both technical and business skills. Centre of Professional & Continuing Business
Technopreneurship Education (CPCE) is one of the centresaccountable for organizing, encouraging,
handling and supervising all activities pertaining to Technopreneur development
and innovation. In this unit we are going to discuss about concept and meaning of
technopreneurs, the challenges faced by technopreneurs, importance of
NOTES technopreneurs and technology management.
9.1 Unit Objectives

After reading this unit, you should be able to:
• Define technopreneurs.
• Explain the meaning of technopreneurs.
• Describe the challenges faced by technopreneurs.
• Explain the importance of technopreneurs.
• Describe technology management.
9.2 Technopreneurship
Technopreneurs associate the control of technology with the essence of
entrepreneurship. They create new products; new services and new business markets
using high-tech ways to keep us knowledgeable, amused and linked every day; for
example,smart phones and social media, streaming videos and cloud computing etc.
Technopreneurs are unlikeinventors. Inventors originate with ideas, but
technopreneurs put them into action. Their businesses offer new jobs, new challenges
and new opportunities for new workers for making life better.
Today’s technopreneurs are separating out in every direction and at
astonishing speed and they are generating avenues for individuals who have not
had the chance to become technopreneurs in the past.
Technopreneurs are both change-makers and futurists. Their inventions
have changed the way we live and work today; further their visionwill change life
even more in the future.
Meaning of Entrepreneurship
• According to Babson, entrepreneurship is a way of thinking and acting
that is opportunity obsessed, holistic in approach and leadership balanced
for the purpose of wealth creation.
• Schumpeter opines: Entrepreneurship is creative destruction. Dynamic
imbalance brought on by the innovating entrepreneur, rather than
equilibrium and optimization, is the norm of a healthy economy and the
central reality of economic theory and practice.
• To quote Drucker, “the entrepreneur searches for change, responds to it
and exploits it as an opportunity. Innovations are the specific tool of
entrepreneur, the means by which they exploit change as an opportunity
for a different business or a different service”.
Business
• Stevenson says, “Entrepreneurship is the pursuit of opportunity without Technopreneurship
regard to the resources currently under one’s control”.
What is technological entrepreneurship?
Technological entrepreneurship is an entrepreneurial activity with an NOTES
intensive use of technology. It is a process of amalgamating technology process
and entrepreneurial talent and skills.
Technology + Entrepreneurship =Technopreneurship
Technopreneurship is creating ‘new’ knowledge, products, services,
markets, business models, raw materialsand the like and destroying the ‘old’.
Who is technopreneur?
• Schumpeter defines technopreneur as “a person who destroys the existing
economic order (creative destruction) by introducing new products and services
by creating new forms of organizations and by exploiting new raw materials”.
• Technopreneur is someone who observes an opportunity and creates an
organization to pursue it.
• As per Kuemmerle, technopreneur isa person who undertakes risks (by
creating an enterprise or business) that has the chance of profit (or
success). Technopreneurs distinguish themselves through their ability to
accumulate and manage knowledge, as well as their ability to assemble
resources to achieve a specified business or social goal.
• According to Baumol, “the technopreneur is a bold, imaginative deviation
fromestablished business methods and practices who constantly seeks
the opportunity to commercialize new products, technologies, processes
and arrangements”.
• Manuel Cereijo says, “The technopreneur distinguish logic from tradition,
tradition from prejudice, prejudice from common sense and common
sense from nonsense while integrating a variety of ideas from diverse
groups and discipline”.
• In the words of Dorf and Byers, “Technopreneurs are skilled in applied
creativity, thrive in response to challenge, and look for unconventional
solutions. They experience challenges, create visions for solutions, build
stories that explain their visions, and then act to be part of the solution.
They forge new paths and risk failure, but persistently seek success”.
Successful traits of technopreneurs
Technopreneurs must:
• Be honest
• Have leadership qualities
• Be action oriented
• Be quick
• Have modest ego
• Be seeker and learner
Business
Technopreneurship • Be eager to be different, but knows it (not unaware)
• Be realistic and willing to compromise
• Celebrates in other’s victories
NOTES
• Be determined to solve a valuableproblem for clients
• Have strong entrepreneurial strength
• Be willing to incur the costs of growth
• Be willing to use wide range of sources of finance
• Believe in a team-based organizing structure
• Focus on inventiondedicated to commercialization of technology innovation
• Have outstanding communication skills
• Recognise the worth of business principles
• Be able to formulate and execute a sound business plan
• Beable to raise money
• Be able to build an organizational team leading to entrepreneurial victory
• Be capable to recruit and work a purposeful enterprise
• Be capable to operate within the framework and industrial environment
• Be capable to identify and screen timely opportunities
• Becapable to gather and manage knowledge and technology
• Be capable to organize resources – financial, physical, and human
• Be capable to measure and mitigate doubt and risk related with the
Check Your initiation of the enterprise
Progress • Be capable to deliver an advanced contribution that includesinnovation
1. Define technopre- and originality
neurs. • Be able to inspire a cooperative team of people who have the abilities
2. Explain the term and knowledge necessary for success
technopreneurship.
3. Explain successful
traits of technopre- 9.3 Challenges of Technopreneurs
neurs.
Following is a list of some of the challenges faced by technopreneurs:
• Start-up capital:The major challenge faced by any technopreneur is to
acquire capital to start the business.
• Good location:After start-up capital is obtained; finding a perfect,
appropriate and a good location is also very important.
• Work-life balance:Finding adequate time for business and family
activities and deciding the priorities is another challenge faced by
technopreneurs.Equivalent importance and time should be allotted by
Business
the technopreneur for running business and also for family activities.
• Peer Advice:At times when there is confusion in the mind of Technopreneurship
technopreneur, he/she cannot seek advice from family and friends as
they do not have sufficient business knowledge.
• Operating Capital:Access to operating capital after the business is
NOTES
launched, is one of the challenges faced by technopreneurs.
• Absence of a domestic/local market to sell product/
service:Technopreneurs find it challenging to sell product/ services as
there is absence of domestic or local market.
• Concerns about a risky in new business:If the technopreneur is
already employed and has a good job and he/ she is worried about
commencing a new business as it is completely risky.
• Government and business programs and assistance:There are very
fewer government and business programs and also absence of assistance
and help provided to the technopreneurs.
• Strong competition:In any business activity there is existence of strong
competition and it is one of the major challenges for technopreneurs.
• Technical expertise:There is nonexistence or absence of basis of
technical expertise and knowledge.
Check Your
• International knowledge:When commencing any business, technopreneurs Progress
may lack international knowledge of acquiring inputs or selling outputs.
4. Explain the chal-
lenges faced by techn-
opreneurs.
9.4 Entrepreneurs versus Technopreneurs
Entrepreneur is an individual who likes to participate, and compete.He/
she is a self-starter. He/shehas ability to do many things at once. He/she
isimaginative, and has clear vision and objectives. Entrepreneurs like to work for
themselves and be in control. Entrepreneurs areinspired by a strong desire to
attain and achieve financial success. They focus theirconsideration on the
probabilities of success rather than the opportunity of disappointment or failure.
Technopreneur isan individual who likes to inventand innovate and isa
part of a team. Technopreneursare able to do many things simultaneously, but
they choose to delegate. Technopreneurs are ground-breaking and have a
betterdream, like to be the one to control innovation and be part of development.
They areinterested by a strong dream and have passion to revolutionize. They
takefailure in pace and know that it will lead to victory if improvementare made.
Similarities between Entrepreneurs and Technopreneurs
Entrepreneurs and Technopreneurs are able to regulate risk and have the
bravery to take risks. Both are independent and self-independent andself-assured
yet know where to get help from. Both like an encounter are careful and eager to
stick with a project. Entrepreneur and Technopreneurs are not easily depressed,
theyuphold good health, have lots of energy and can handle stress, have a strong
sense of self-worth. Often they have a close friend or relative who owns a business.
Bothare painstaking and eager to stick with project, not easily disheartened, positive
thinkers who reside on delays.
Business
Technopreneurship Entrepreneurial Process and Technopreneurial Process
Entrepreneurial process starts with opportunity analysis leading towards
business planning then gathering resources, implementation then scaling and
harvesting the returns.
NOTES
Technopreneurial process starts with idea generation, once the idea is
generated next stage is idea screening, after idea screening concept testing is
done then business analysis is done. The next stage of prototyping i.e. sample
testing is followed by commercialization. Once it is commercialized, monitoring
and evaluation is done.
In entrepreneurial process everything starts with an opportunity whereas
in technopreneurial process everything starts with an idea.
Entrepreneurs and the Economy vs. Technopreneurs and the Economy
Check Your Entrepreneurs are considered as the agents of the progress. They use
Progress financial capital and sometimes there is undecided wastage which results in minimized
outputs.Technopreneurs are considered as the agents of the economic growth. They
5. Explain the differ-
use natural capital which results in maximized outputs. They are also considered as
ence between entre-
intellectual capital of the nation which increases safety of the nation.
preneurs and
technopreneurs.
6. Describe the simi-
larities between entre- 9.5 Significance of Technopreneurship and Risk
preneurs and
technopreneurs.
Involved
The existing small businesses are nowadays transformed by computer and
7. Explain the Entre-
internet from local places of business to national and global market competitors.In
preneurial Process.
developing small business there are some advantages which can be availed by applying
8. Explain the the technology-entrepreneurship (Technopreneurship) which are as follows:
Technopreneurial Pro-
1. Business process becomes easier and simple
cess
It is a knownfact that we are saving time and distance through cost of
marketing and shipping by utilizing Technopreneurship. Today, a business can be
started anytime, anywhere, by making purchases from different regionswith an
ease and more convenience. By using electronic devices and social media network
we are able to curtail the lead time businesses spend on delivering and receiving
the goods or services, which creates an immediate competitive advantage in the
small business, which means that to both suppliers and consumers the business
process becomes much simple and easier.
2. Promotion and popularization
It is considered as one of the fastest and simple ways for promotion and
popularization of the product or service by utilizing technology-entrepreneurship
like internet. From the website through Google Spreadsheet attachment one can
receive a purchase order. Moreover, for using the Google business platform to
market and promote the products and services today Google has the new innovation
to facilitate the small businesses.
3. Revenue and profitsmaximization
Technopreneurshipraises productivity which eventually gives rise to profits
Business that means better pay and less vigorous working conditions. By lessening raw material
cost,an entrepreneur can enhance the resources but gaining profits as much as Technopreneurship
possible is only through the utilization of technopreneurship towards their business.
4. Creation of more innovations and creativity
In developing small business, innovation and creativity is required. Through NOTES
utilization of technopreneurship, an entrepreneur will be more focused andruminate
more on how they can generate more creativity for thedevelopment of their small
business and making it better, profitable and popular.
5. Storage and sharing of business information
Electronic storages systems are created by technology for data protection
of the company as it is essential for business integrity and process. For developing
small business, we can get a lot of information from technology. For example, the
entrepreneur who runs the business of creative cakes can share various tips and
important tricks using website. They get countless information around the globe
from other entrepreneurs who are intothe same business.
Risks Involved
Entrepreneursmust not ignore the risk of technology-entrepreneurship
(technopreneurship) in developing their small business. Before application of the idea
of technopreneurship to their business,entrepreneurs must be alert and considerate
about these risks along with the advantages of technopreneurship.There are some
risks of technopreneurship in developing small businesses established as follows:
1. Increasein Expenses - This is one of the first disadvantages, since
technology is associated to business and technology. Entrepreneurs must
wisely and professionally utilize technology as technology is not cheap
enough.
2. Creating Error - Technology today at the place of work is very common.
This may lead to employees not identifying errors that might have been
identified had the task been done physically and manually. It means that
when we enter the wrong data some digital error may happen.
3. Declining Ethics - For instance, entrepreneurs while improving their
business may choose to surf internet for private reasons.There is a
possibility that the entrepreneur may becomemore inclined towards
personal interestsashe/she cannot discriminatebetween the time devoted
for personal priorities and for business benefits.Technology-
entrepreneurship has some risk influence on business which can be sorted
or solved by developing habit of discipline within the entrepreneur and Check Your
his/her employees. Progress
9. Explain the signifi-
cance of technopren-
9.6 Implications of Technopreneurship and eurship.
Technology Management 10. Explain the risk in-

volved in technopre-
Future Implication in this context means that how to flourish business in neurship
the future with the help of technology,in this era several young entrepreneurs have
performed well using the technology.Young entrepreneurs who have a different
mindsetand who are creative, imaginative, inventive, and who are capable to make
something “out of the box” arecapable to venture into technopreneurship. There
Business
Technopreneurship is a need to encourage and motivate the youth to apply innovation in developing
small business using technology and entrepreneurship.
Technopreneurship is an entrepreneurial term reserved for entrepreneurs
who are involved in the field of information technology. Technopreneurs such as
NOTES
Sergey Brin and Larry Page (Google), Mark Zuckerberg (Facebook), Bill Gates
(Microsoft), Steve Jobs (Apple), Jack Dorsey (Twitter), and Kevin Systorm
(Instagram) are a few illustrations of entrepreneurs who are involved in the world
of information technology.
Information is very substantial in discovering opportunities, which we want
to be familiar with, as a vehicle of our integrity to a miscellany of information in
our environment. Much of the information that is repeatedly ignored is caused by
our inability to classify and determine chances that occur.
There are many means, which can be used to gather information, ranging
from print media to electronic media. The more comprehensive the sources we
can get, the easier for us to get the information about business opportunities.
The impression to information technology and communication technology
is probable to make rapid changes in life. Through information technology, we can
invent, discover, find, scrutinize, and share information professionally and positively
successfully. Information technology includes all matters related to the process,
the use of tools, operation, and management of information.
While communication technologies are all those things that are associated
with the use of tools to process and transfer data from one device to
another,information technology and communications technology play as an
imperative equal containing a complete understanding of all activities related to
the processing, manipulation, organization, management and transfer of information
between media.
Fundamentally, there are two types of IT related businesses, viz. products
and services: 1. Products which includeHardware, and Software; 2. Services which
include Applications, and E-Commerce.
Infrastructure in the terms of information and computer software is the
income of the business that makes software. You as a seller will receive reservations
according to the needs of your customers.Infrastructure is a business that delivers
computer and information services, such as computer service, technology news,
internet service, etc.
E-Commerce: Internet is progressive and is used into a global distribution
of products and services, employment in managerial and professional fields.E-
commerce can be defined from numerous perspectives:
• Communications: Distribution of information, goods, facilities, or expenditures
over computer networks or other electronic means and medium.
• Trade: Distribution of means to purchase and sell products, services,
and information for the internet or other online facilities.
• Business processes: Running business procedures or processes
automatically through an electronic network, replacing business processes
with information transmitted quickly.
Business
• Service:A way or a method for governments, businesses, consumers, Technopreneurship
and management to cut and curtail costs while purifying quality of service
and speed of service of consumers.
An E-commerce site fundamentally gives and facilitates each and every
NOTES
business owner/ holder the ability to have unlimited store hours, give the customer
7 days a week and 24 hours a day, contact to the store and to buy items,products
and services. An example of the latest technology running and operating the process
is online shopping (Amazon, Flipcart) whereby customers/consumers can straightly
and directly buy goods and services from sellers in real time, without an intermediate
service, over the Internet.
E-business is beneficial for the company, customer, and society as itincreasesthe
market,crosses national markets and enters global markets, so companies can reach
more customers, choose the best suppliers, and inaugurate dealings with business
partners.Itlessens the cost in distributing, storing, developing, processing, andretrieving
paper based information and permits companies and business houses to realize a highly
specialized business.It benefits the customers by delivering quality products and services
at affordable prices and society by increasing living standard.
Technology Management
The Association of Technology, Management, and Applied Engineering
defines technology management as the field concerned with the supervision of
personnel across the technical spectrum and a wide variety of complex technological
systems. Technology management programs classically include training in production
and operations management, project management, computer applications, quality
control, safety and health issues, data, and general management principles.
Technology management can be defined as the integrated planning, design,
optimization, operation and control of technological products, processes and
services. It is management of the use of technology for human advantage,and to
create competitive advantage. Technology management is set of management a
discipline that allows organizations to manage their technological fundamentals.
In an organization, the role of the technology management function is to
understand the worth of certain technology for the organization. As long as there
is a value for the customer, continuous development of technology is valuable and
accordingly the technology management function in an organization should be
capable to reason when to invest on technology development and when to
withdraw. The Technopreneur must be able to manage the technology effectively
and efficiently for the success of the enterprise.
Following are characteristic concepts used in technology management:
• Technology strategyis a judgmentor role of technology in organization,
• Technology forecasting is identification and documentation of likely
relevant technologies for the organizations possibly through technology
investigation,
• Technology roadmap is mapping technologies to business and market
needs, and
• Technology project portfolio is a set of projects under development
and technology Portfolio a set of technologies in use.
The diffusion of innovations theory developed in the first half of the twentieth Business
century perhaps is the most authoritative input to our understanding of technology. It Entrepreneurship - VI 147
Technopreneurship recommends that all innovations follow a similar distribution pattern –known today
in the form of an “s” curve though originally based upon the concept of a standard
distribution of adopters. In wide-ranging terms the “s” curve recommends four phases
of a technology life cycle – emerging, growth, mature and aging.
NOTES
These four phases are joined to growing levels of acceptance of an innovation
or, in our case a new technology. In recent times, for many technologies an inverse
curve which agrees to a decreasing cost per unit has been suggested. For information
technology, where much of the cost is incurred in the early phase it has been a
reasonable expectation though this may not prove to be universally true.
Technopreneur must gather relevant information and take decisions accordingly.
Carnegie Mellon Capability Maturity Model is the second major contribution
to this area. A series of progressive capabilities can be quantified through a set of
threshold tests is proposed in this model. These tests determine repeatability,
definition, management and optimization.Any organization has to master one level
before being able to proceed to the next is suggested through this model.
The third significant contribution in this area comes from Gartner the
research service; it is the hype cycle, in the early stages of growth whichadvises
that our modern approach to marketing technology results in the technology
beingoverestimated. These fundamental concepts provide a foundation for
formalizing the approach to managing technology taken together.
Mobile Device Management
Nowadays everyone uses technology one of the examples is Smart Phones,so
Check Your it is an essential for technopreneurs to know about Mobile Device Management
Progress (MDM).MDM is the administrative area dealing with organizing, safeguarding,
checking, integrating and handling mobile devices, such as smartphones, tablets and
11. Explain implica- laptops, in the office and other areas. The intent of MDM is to enhance the functionality
tions of technopre- and safety of mobile devices within the enterprise, while instantaneouslycaring the
neurship. corporate network. MDM is usually applied with the use of a third party product that
12. Explain in detail has management types for particular sellers of mobile devices.
technology manage- Accreditation and Certification
ment.
Technopreneur can enhance their skills by getting accredited and certified
from a well known organization.In technology management,The Association of
Technology, Management, and Applied Engineering (ATMAE), recognizes selected
academic programs. By appearing for a rigorous exam administered by ATMAE
covering production planning and control, security, excellence, and management/
supervision, an instructor or graduate of a technology management program may
choose to become a Certified Technology Manager (CTM).For accrediting
technology management programs,ATMAE program accreditation is recognized
by the Council for Higher Education Accreditation (CHEA).
9.7 Profiles of Technopreneurs

Profiles of few technopreneurs are presented below:
9.7.1 Profile of Angela Benton - Creator and the Chief Executive Officer
of the company NewME.
Business Being a single, teenage mother didn’t stop Angela Benton from becoming
148 Entrepreneurship - VI anentrepreneur.Growing up in northern Virginia, she graduated from high school
and went on to get a college bachelor’s degree with honours before setting out on Technopreneurship
a business career.
She started out her career in coding, or processor programming, and would
later start her own website, Black Web 2.0. She was unsatisfied by the lack of
NOTES
information available for and about African Americans in technology so she started
the site. But she didn’t stop there and started the other company NewME
Accelerator in 2011.
She is both the creator and the Chief Executive Officer of the company.
New ME is a web-based business that helps entrepreneurs, primarily women and
minorities get their businesses off the ground.
New ME provides live, weekly information sessions that train entrepreneurs
about how to raise money and make the associations needed to get business
progressing. The best part is that people don’t have to go to Silicon Valley to get
the information they can in fact get it right all the way through their computer.
Benton’s company has facilitated more than 300 start-up companies to
raise more than $17 million to lift their businesses since it started.Benton bought
Black Web 2.0 and changed it to B20 after starting NewME. Information regarding
Profiles of businesses and entrepreneurs are now offered by B20.
Benton has been featured in media all over the country and named as one
of the top African-American entrepreneurs working today as she motivates others
to grow their businesses and follow their dreams.
9.7.2 Profile of William James Adams Jr. - The Developer of iPhone
accessories and a new smart watch
William James Adams Jr., commonly known by the performing name
will.i.am, in order to achieve has been a person who always thought outside the
box. Adams was raised by his mother after his father left the family in low-income
neighbourhoods of Los Angeles, California.
As William later described it the family fought to make ends meet and
lived on welfare “two minutes from homeless,”
Yet his mother pushed him to achieve. When he grew up his mother
encouraged him to follow creative activities that weren’t popular with other kids
in the neighbourhoods.
By high school, William was attending underground rave parties, starting
a music career that would result in 7 Grammy Awards and achieving an appreciation
for electronics that would open the door ultimatelyfor him to create his own
technology brands.
It was at those underground dance parties that he began to use the persona
of William and grow his interest in electronic music which hadtossed his group, the
Black Eyed Peas, to the top of the music charts.
As his career and inspiration grew,William also gained high gaze at as a
music producer, recordingartists ranging from Michael Jackson, Usher and Rihanna
to Justin Timberlake and U2.
He had devoted more and more energy into being a technopreneur in
current years. He has launched a line of i.am+ iPhone accessories, which allowed
the smart phone’s 8-megapixel camera to take images at 14-megapixel quality.
Business
Through the brand, Adams has now prepared the Pulse smart watch, whose voice Entrepreneurship - VI 149
Technopreneurship command technologies opposing that of the Apple Watch and will position the
product to compete with the Apple brand.
As a result of his achievement, William was asked to serve as Intel’s
director of creative innovation and was able to launch the i.am.angel foundation to
NOTES
help underprivileged youth connect with quality education in Science, Technology,
Engineering, Arts and Math (the so-called STEAM subjects). He’s also been a
follower of FIRST, an international robotics competition for high school students.
9.7.3 Profile of Kaya Thomas – Her app features books, authors and
characters of colour
Kaya Thomas alreadyhas found a way to use technology to bring change
to the world while she is still in college.
She has used her tech skills to give younger kids something she didn’t had when
she was growing upa self-described “bookworm” from an early age. She has developed
an app called We Read Toothat showcases books, authors and characters of colour.
Though she loved to read, she explained in an interview with innov8tiv.com
that “I was repeatedlydissatisfied with the books I found on show and in popular
book lists because I rarely related to the characters,” “…Both my parents worked
hard to find books I could relate to, but it shouldn’t be such a hard task.”
On The Root magazine’s 2015 Young Futurists list showcasingup-and-
coming technopreneurs Thomas’ app earned her a spot.And the app is not only
one of her achievements. Agraduate of the Black Girls Code program, she
wonadmission to Dartmouth College in the Ivy League,where she’s a computer
science major and a studentprogrammer for Tiltfactors, a game-design labfocused
on social change. She’s also launched aYouTube channel called Code with Kaya
to encouragegirls and minorities to get into tech.
“Being a creator of technology,” she says, “empowers me with the ability
to shape the future.”
9.7.4 Profile of Dr.Dre – An innovator in musicand technology
From hip-hop artist to headphone technopreneur, Andre Young did not
have an easy time as a youth growing up in Compton, California. After his parents
split, Young lived with his mother in several locations, including a housing project.
He also fought in school and to avoid gang violence even transferred junior high.
It would have been hard to estimate that this young man would rise to the
top of the hip hop world and found a company that would eventually be purchased
byApple. But that’s exactly what happened for Young, more commonly known by
his rap name, Dr.Dre.
Dr.Dre recently achieved amazing success in Silicon Valley although he
began his career in the Los Angeles hip hop scene. In 2013, Apple purchased
Dre’s BeatsElectronics — famous for its beats by Dr.Dreheadphones — for $3
billion. It was Apple’s largest acquisition ever and was projected to make Dr.Dre
the richestindividual in hip hop.
The headphones owed much of their commercial success to the network
Dr.Dre built as a rapper and producer, and highlighted the same audio qualities he
liked: Lots of bass. After Dr.Dre said he was unhappy with the bass level of
Apple’s white Ear bud headphones the idea for the brand actually developed.
Business Dr.Dre developed his ear foraudibility through decades of work in the music studio.
150 Entrepreneurship - VI He assisted to pioneer the heavily electronic “G-funk” sound on the West Coast,
which included synthesizers, electronic drum machines, and heavy beats. He Technopreneurship
became one of the industry’s most successful and sought-after producers because
of his understanding of computer software like Pro Tools and digital music editing
skills like mixing and equalizing to achieve great sound.
NOTES
Along with his technical abilities as a producer, Dr.Dre is known as a hard
worker and a perfectionist. He has been known to make rappers repeat bars
dozens, if not hundreds of times, in order to get the sound just right.
9.7.5 Profile of Malik Ducard 1973 – A pathfinder for usingtechnology
to connect
Malik Ducard always enjoyed telling stories. He recalls his classmates
gathering around him to listen to his stories even as a child. Ducard took that
desire for storytelling and uses it regularly in his job working for YouTube.
Ducard grew up in the Bronx neighbourhood of New York City and praises
his mom for generating his early interest in technology. She bought him a computer
before they were as common as they are now.
He got the chance to attend private school after he won a scholarship
from an organization called “A Better Chance” that helps African Americans get
animproved education.
He won admission to respected Columbia University in the Ivy League,
where he earned a degree in film and African American history. After
college,Ducard worked in advertising before he decided to head out to Los Angeles
to go to UCLA’s business school. After that, Ducard was an entertainment
executive for the Paramount, Lions gate and MGM movie companies.
He was appointed by Google to be the Director of Content Partnerships.
Digital content, which is basically anything you watch or stream on the Internet, is
big business. Understanding how to help companies shape their message and content
is what Ducard does every day.
These days, Ducard is the head of the Family/EDU department of YouTube,
which is owned by Google and is used by people of all ages to watch cute cat
videos, concerts of favourite stars or the latest hot videos that are going “viral.”
Ducard’s job is to help digital content providers understand how to use YouTube to
reach families and kids. He draws on his lifelong love of storytelling to help
businesses understand how to tell stories and reach viewers.
How busy is YouTube? Here are some statistics. More than 1 billion people
use YouTube, and every day people watch hundreds of millions of hours. Every
minute, people upload 300 hours of video. And, across the globe, YouTube is
available in 61 languages.
9.7.6 Profile of Mark Dean –Holder of three key patentsfor computer
giant IBM
Mark Dean grew up in Jefferson City, Tennessee, and when he was in
sixthgrade he recalls a white friend asked him if he was really black. The friend
had concluded he was too smart to be black.
“That was the problem the supposition about what blacks could do was
titled,” Dean said, looking back on his childhood in a city whose schools had just
been integrated with a mix of black and white students.
Business
Technopreneurship Now a nationally renowned computer scientist and engineer, Dean has never
let other’s doubts or views stop him from achieving. He has helped to invent a number
of ground-breaking computer technologies, including IBM personal computers, the
colour PC monitor, the gigahertz chip, and the Industry Standard Architecture systems
NOTES bus, which allows computers to connect with devices like printers and monitors.
As a long time engineer for IBM, he holds three of the company’s original
Check Your nine patents. In addition, he was named an IBM fellow in 1995, becoming one of
Progress only 50 employees in a company of 300,000 to receive the honour and the first
African American.
13. Write short notes
on the following: All of Dean’s successes have their roots in his persistence and promise to
education. Despite local doubts about the ability of African Americans to succeed,
a. Profile of Angela
he was a straight-A student in high school, and continued his success as an electrical
Benton.
engineering student at the University of Tennessee. While in college, he joined the
b. Profile of William- Minority Engineering Program and ultimately graduated at the top of his class.
Developer of iPhone
Even after graduating and landing his dream job at IBM, Dean still faced
accessories and a new
individuals who doubted his abilities because of his race. He has not only shown
smart watch.
them wrong professionally, but he continued to educate himself by earning a master’s
c. Profile of Kaya Tho- degree from Florida Atlantic University and a Ph.D. in Electrical Engineering
mas- – Her app from Stanford University.
featuresbooks, autho-
Today, Dean continues to teach others as a professor at the University of
rsand characters of
Tennessee. His message to young African Americans students today is: There are
colour.
no limits to what you can achieve.
d. Profile of Dr.Dre –
With technology, “If you can talk about it, that means it’s possible,” he has
An innovator in
said. “A lot of kids growing up today aren’t told that you can be whatever you
musicand technology.
want to be.”
e. Profile of Malik
Ducard –A pathfinder
for usingtechnology to
connect. 9.8 Summary
f. Profile of Mark • Technopreneur are entrepreneurs who are essentially into businesses
Dean1–Holder of relating to technology-based industries. They make use of technology to
three key patentsfor come out with new or inventive products through a process of
computer giant IBM. commercialization.
14. Explain qualities of • Technopreneurs combine the power of technology with the spirit of
successful technop- entrepreneurship. They generate new products and new business
reneurs. markets.
• Technopreneurs are unlike from inventors. Inventors come up with ideas,
but technopreneurs put them into action.
• Technology + Entrepreneurship =Technopreneurship
• According to Manuel Cereijo,technopreneur distinguish logic from
tradition, tradition from prejudice, prejudice from common sense and
common sense from nonsense while integrating a variety of ideas from
diverse groups and discipline.
• In the words of Babson, entrepreneurship means a way of thinking and
acting that is opportunity obsessed, holistic in approach and leadership
balanced for the purpose of wealth creation.
Business
• Besides, as technology is becoming a catchword, this Flagship Application Technopreneurship
tries to make full use of it by combining the term technology with
entrepreneur to become technopreneur.
• Technopreneurship is an entrepreneurial term earmarked for
NOTES
entrepreneurs who are involved in the field of information
technology.
• There are many means that we can use to gain information, ranging
from print media to electronic media. The more complete the sources
we can get, the easier for us to gain information about business
opportunities.
• Technology management can also be defined as the integrated planning,
design, optimization, operation and control of technological products,
processes and services, an improved definition of technology management
would be management of use of technology for human advantage.
9.9 Key Terms

• Technopreneur: An entrepreneur involved with high technology.
• Technopreneurship: It is entrepreneurship in a technology intensive
context. It is a process of merging technology process and entrepreneurial
talent and skills.
• Technology management: The integrated planning, design, optimization,
operation and control of technological products, processes and services;
management of use of technology for human advantage.
• Entrepreneurs: Someone who exercises initiative by organizing a
venture to take benefit of an opportunity and, as the decision maker
decides what, how, and how much of a good or service will be produced.

Questions
1. Define Technopreneurship. Differentiate between entrepreneurship
versus Technopreneurship.
2. What is technological entrepreneurship?Describe in detail about Techno-
preneurship.
3. Who is a technopreneur?Explain traits of successful technopreneurs.
Explain the challenges faced by technopreneurs.
4. Write a note on the significance of Technopreneurship.Explain qualities
of successful technopreneurs.
5. Explain implications of technopreneurship.Explain the risks involved in
technopreneurship.
6. Explain in detail about technology management.
7. Write short notes on the following:
Business
i. Angela Benton. Entrepreneurship - VI 153
Technopreneurship ii. William
iii. Kaya Thomas
iv. Dr.Dre
NOTES
v. Malik Ducard
vi. Mark Dean1
Exercise
1. Meet at least three technopreneurs and learn from them about technology
management
1. Technopreneurship is ‘Creating the New and destroying the Old’
i. True
ii. False
2. Technology + Entrepreneurship =Technopreneurship. Is it correct?
i. Yes
ii. No
3. What is Technopreneurship?
i. New knowledge
ii. New products
iii. New services
iv. All of the above
4. Characteristic concepts used in technology management are:
i. Technology roadmap
ii. Technology forecasting
iii. Technology strategy
5. Match the following
Entrepreneurs ( A-Group) IT Company (B-Group)
1) Bill Gates a) Instagram
2) Steve Jobs b) Twitter
3) Sergey Brin and Larry Page c) Facebook
4) Mark Zuckerberg d) Google
5) Jack Dorsey e) Apple
6) Kevin Systorm f) Microsoft
Business
154 Entrepreneurship - VI 6. Technology management can be defined as the —
i. Integrated planning of technological products Technopreneurship
ii. Design of technological products

iii Optimization of technological products
NOTES
iv. Operation of technological products
v. All of the above
7. Who is the creator of Twitter?
i. Jack Dorsey
ii. Sergey Brin
iii. Larry Page
8. Technopreneurship is an entrepreneurial term earmarked for
entrepreneurs who are involved in the field of....
i. Information Technology
ii. Politician
iii. Economist
iv. Banking
9. Which are the challenges of technopreneurs?
i. Obtaining money capital to start it
ii. Finding a good location
iii. Existence of strong competitors
Answers
Multiple Choice
Questions
1. i
2. i
3. iv
4. iv
5. Match the Pairs:
(1) Bill Gates –f. Microsoft,
(2) Steve Jobs – e. Apple
(3) Sergey Brin and Larry Page –d. Google
(4) Mark Zuckerberg –c. Facebook
Business
Technopreneurship (5) Jack Dorsey –b. Twitter
(6) Kevin Systorm –a. Instagram
6. v
NOTES
7. i
8. i
9. iv

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index.php?title=Technology_management&oldid=714426567”
Abetti, P.A., (1992). Planning and Building the Infrastructure for
Technological Entrepreneurship, International Journal of Technology Management,
7 (1-3), 129-139.
Amit, R., Brander J., Zott, C., (1988). Why Do Venture Capital Firms
Exist? Theory and Canadian Evidence, Journal of Business Venturing, 13, 441-
466.
Basic Culture of Technology-Entrepreneurship Articles
Burnett, D., (2000). The Supply of Entrepreneurship and Economic
Development.Retrieved on April 3 2003 from
Cumming, Douglas J., MacIntosh, Jeffrey G., (2001). Venture Capital
Investment Duration in Canada and US, Journal of Multinational Financial
Management, 11, 445-463.
Dahlstrand, Lindholm, A., (1999). Technology-Based SMEs in the Goteborg
Region: Their Origin and Interaction with Universities and Large Firms.
Technovation, 33 (4).
Fang, Z., (2002). E-Government in Digital Era: Concept, Practice and
Development. International Journal of the Computer, Internet and Management,
10 (2), 22.
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ff2015.pdfCS1 maint: Multiple names: authors list (link)
http://www.biography.com/people/dr-dre-507628
http://www.blackpast.org/aah/dean-mark-1957
http://www.newme.in/
http://www4.ibm.com/software/developer/library/su-sing.html
https://firmansyahshidiqwardhana.wordpress.com/2012/04/04/role-of
technopreneurship/
https://www.blackentrepreneurprofile.com/profile-full/article/malik-ducard/
Business JawaPosEdisi 18 Desember 2011 : WirausahawanMuda ITS 2011

Kevin WALKER,(2012). The Technopreneurship Process:Academic Technopreneurship
Entrepreneur University Spin-offs. RIThink, 2012, Vol2.
Kropsu-Vehkapera, H., Haapasalo, H. &Rusanen, J-P. (2009).
“Analysis of Technology Management Functions in Finnish High Tech Companies”.
NOTES
The Open Management Journal. 2: 1–10. doi:10.2174/1874948800902010001.
ISSN1874-9488.
Muhammad AzmiAyub, RoseleenaJaafar&Zulkifli Abdul Majid., (Number
3, 2011). Embedding technopreneurship with mechatronics engineering in outcome-
based curriculum development for postgraduate education in Malaysia, Global
Journal of Engineering Education Volume 13, Number 3, 2011.
WirausahaMudaMandiri 2011- 2012 ;RhenaldKasali
(GubesFakultasEkonomi UI): Sponsored by BankMandiri IndonesiaUnited
States – Small Business Administration Program Official Site
FirmansyahShidiqWardhana’s Site INDONESIA Ordinary Youth Who Wants To
Be Useful and Successful.
Y. Dutse1, S. I. Ningi2, and S. Abubakar3., Jul. - Aug. 2013).
Technopreneurship and Enterprise Growth in Nigeria: An Exploration into the
Latent Role of Microfinance Banks. IOSR Journal of Business and Management
(IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 12, Issue 2 (Jul. -
Aug. 2013), PP 25-32 www.iosrjournals.org
Business
Intellectual Property Rights
UNIT : 10 INTELLECTUAL PROPERTY
RIGHTS
NOTES
Structure
10.0 Introduction
10.1 Unit Objectives
10.2 Intellectual Property
10.3 Intellectual Property Rights (IPR)
10.4 Copyright
10.5 Patents
10.6 Trademark
10.7 Geographical Indications
10.8 Industrial Design
10.9 Summary
10.10 Key terms
10.0 Introduction
Intellectual property Right (IPR) is a term used for several legal rights
which are attached to certain types of information, ideas, or other intangibles in
their expressed form. In relation to the subject matter of the Intellectual Property
theowner of this legal right is generally authorized to exercise various exclusive
rights. In the same way as any other form of property the term intellectual property
discloses the idea that this subject material is the creation of the mind or the
intelligence, and that Intellectual Property rights may be protected at law.Intellectual
property laws differ from jurisdiction to jurisdiction, such that the attainment,
registration or enforcement of IP rights must be pursued or obtained separately in
each territory of interest.
Intellectual property rights (IPR) can be defined as the rights given to
people over the creation of their minds. For a certain period of time they usually
give the inventor an exclusive right over the use of his/her creations.
In this unit we are going to discuss about meaning and definition of
intellectual property, copyright and who can claim it, patents, the rights protected
under intellectual property, the layouts of patents, industrial design and geographical
indications.
Business
Aftergoing through this unit, you will be able to:
• Explain the meaning of Intellectual Property NOTES
• Define intellectual property rights
• Describe copyright and who can claim it
• Describe about patents
• Explain the rights protected under intellectual property
• Explain the layouts of patents
• Explain industrial design and geographical indications
Check Your
10.2 Intellectual Property Progress
Intellectual property is an indefinite creation of the human mind, usually 1. Explain Intellectual
conveyed or translated into a real form that is allocated certain rights of property. property with suitable
Examples of intellectual property include an author’s or publishers copyright on a examples.
book or article, a distinct logo design representing a soft drink company or garment
company and its products, unique design elements of a web site or Apps, or a
process to manufacture of any eatable like Cadbury or any product for that matter.
10.3 Intellectual Property Rights

The rights given to people over the creation of their minds can be defined
as Intellectual property rights (IPR). For a certain period of time they usually give
the inventor an exclusive right over the use of his/her creations.Intellectual property
(IP) refers to creations of the mind: inventions, literary and artistic works, names,
images and symbols, and designs used in commerce and engineering.
With the rapid pace of technological, scientific and medical innovation,
intellectual property has gradually expected a vital role that we are observing
today. Additionally, where intellectual property is a dominant and leading element
establishing potential growth and value, changes in the global economic environment
have influenced the development of business models. Under the WTO Agreement
on Trade-Related Aspects of Intellectual Property Rightsin India much new
legislation for the protection of intellectual property rights (IPRs) have been
permitted to meet the international obligations.Thus necessitating the demand for
IP professionals well versed in this area to deal with IPRs across the national and
international borders. Intellectual property has consequently grown into one of the
world’slargest and fastest-growing fields of law.
Categories of Intellectual Property
One can broadly classify of IPRs into two categories: 1. IPRs that
awakenimaginative and creative activities (patents, utility models, industrial designs,
copyright, plant breeders’ rights and layout designs for integrated circuits) and2.
IPRs that dealwith information to consumers (geographical indications and
Business
Intellectual Property Rights trademarks). IPRs in the above two categories pursue to address private market
certain failures to offer for an efficient distribution of resources.
IP is divided into two categories for simplicity of understanding: 1. Industrial
Property: This comprises of discoveries (patents), trademarks, industrial designs,
NOTES
and geographic indications of source. 2. Copyright: This comprises of fabricated
and creative works such as novels, poems and plays, artistic works such as sketches,
films, musical works, paintings, pictures and statuaries, and architectural
designs.Performing artists in their performances, creators of phonograms in their
recordings, and those of broadcasters in their radio and television programs are
the rights associated to copyright.
Intellectual property includes the right relating to:
i. Discoveries in all fields of human endeavour
ii. Scientific innovations
iii. Literary, artistic and scientific works
iv. Presentation of performing artists
v. Trademarks, service marks and etc.
vi. Industrial designs
vii. Protection against unfair competition.
What is a property?
Check Your Those things that are frequentlyknown as being the belongings of an
Progress individual or a group are described as property. A right of ownership is related
with property that createthe good as being ‘one’s own thing’ in relative to other
2. Define Intellectual individuals or groups, promising or assuring the owner, the right to dispense or
Property Rights. distribute with the property in a way he or she believes fit, whether to use or not
use, except others from using, or to transfer ownership.
3. Explain the term In-
tellectual Property Properties are of two types - tangible property and intangible propertyi.e.
Rights. one that is physically present and the other which is not in any physical form.
Building, plot, house, money, jewellery are few examples of tangible properties
4. Explainthe various
which can be seen and sensed physically. On the contrary, there is a kind of
categories of Intellec-
valuable property that cannot be sensed physically as it does not have a physical
tual Property.
form which is intangible property. Intellectual property which orders a material
5. Explain the rights value which can also be higher than the value of a tangible asset or property is one
relating to Intellectual of the forms of intangible property.
property.
Rights protected under Intellectual Property:
6. Explain the term
The following are different types of Intellectual Property Rights:
property and its types.
i. Copyright
7. Enlist the rights pro-
tected under Intellec- ii. Patent
tual Property.
iii. Trademarks
iv. Geographical indications of goods
v. Industrial design
Business
10.4 Copyright
Copyright is a branch of law that awards authors or novelist (artists,
musicians, writers, and other creators) protection over their works. Such
safetyinvolves in providing authors or novelistswith the proprietorship or ownership NOTES
or property rights (or exploitation rights), which takes into account their material
benefits. Writers are acceptable to protection against illegal use of their works as
well as to a possible share in any earnings from its use by the community under
copyright. On the other hand, copyright laws may also offeror provide protection
for another set of interests, of a more personal nature, which are normally called
the ‘moral rights’ of authors. These rights let the authors or novelists to claim
authorship in their works as well as esteem for their honesty.
Under the Universal Declaration of Human Rights (1948) and the
International Covenant on Economic, Social and Cultural Rights (1966), the safety
of moral and material interests resulting from any scientific, literary or artistic
invention is also recognized as a human right.
Designs, trademarks, patents, plant seed varieties, trade secrets, integrated
circuits, topographies and geographical indications of source are other subject
matters that are secured by Copyright which is a part of Intellectual property (IP).
All subject matters that come under the headline of intellectual property have in
common the fact that anassured amount of intelligence has been exhibited in
achieving the results for which protection is approved. Copyright laws also take
into consideration and account the requirements of users and of society at large
for access to knowledge and information while not only aiming at starting individual
rights only for the benefit of authors or novelist. Copyright protection is subject to
a number of exclusions and limitations in order to sustain a fair balance between
the opposing interests. The interaction between exclusive rights, on the one hand,
and exclusions and limitations to these rights, on the other, forms the legal outline
within which originality and communication can be developed.
Who Can Claim Copyright?
Copyright protection comes into existence from the time the work is created
in fixed form.The author or the novelist who has created the work instantly becomes
the owner of the copyright in the work of authorship.
The author/ novelist or those developing their rights through the author
can only rightfully claim its copyright. The employer and not the employee are
considered to be the author in the case of works made for hire. Section 101 of the
copyright law defines a “work made for hire” as:
i. Within the scope of his or her employmenta work arranged by an
employee; or
ii. A work specially ordered or commissioned for use as:
• Aninvolvement to a combined work
• A part of a motion picture or other audio visual work
• A conversion
• A supplementary work
• A compiling
Business
Intellectual Property Rights • An instructional text
• A test
• Reply material for a test
NOTES
• An atlas
The work shall be considered a workmade for hire if the parties expressly
agree in a written instrument signed by them. The authors of a joint work are co-
owners of the copyright in the work unless there is a contract to the contrary.
Copyright in each distinct contribution to a periodical or other collective work is
separate from copyright in the collective work as a whole and vests initially with
the author of the contribution.
Two General Principles
• It does not give the owner the copyright if mere ownership of a book,
document, painting, or any other copy or phone record is claimed but not
created by him / her. The law provides the provision that transfer of
ownership of any material object that represents a protected work does
not of itself convey any rights in the copyright.
• State laws may regulate the business dealings involving copyrights owned
by minors but minors may claim copyright.
Copyright protection is accessible for all unpublished works irrespectiveof
the nationality or domicile of the author or novelist.
What works are protected?
‘Original works of authorship’ that arefixed in a physical form of appearance
are also protected under Copyright. So long as it may be connectedwith the aid of
a machine or device the fixation needs not be directly noticeable. Copyrightable
workscomprises the following categories:
a. Fictional works
b. Musical works, including any related works
c. Dramatic works, including any connected music
d. Dramas and choreographic works
e. Symbolic, graphic, and sculptural works
f. Motion pictures and other audio visual works
g. Sound recordings
h. Architectural works
These categories should be observedlargely. For instance, computer programs
and most ‘compilations’ may be registered as ‘fictional works’; maps and architectural
plans may be registered as ‘picturesque, graphic, and sculptural works’.
What Is Not Protected by Copyright?
Several categories of material are usually not qualified for federal copyright
protection. These include among others:
Business
• In a tangible form of expression works that have not been fixed (for Intellectual Property Rights
instance, choreographic works that have not been composed or recorded,
or improvisational speeches or presentations that have not been written
or recorded).
NOTES
• Titles, names, short phrases, and proverbs; familiar symbols or designs;
mere differences of typographic ornamentation, inscription, or colouring;
mere listings of components or contents.
• Thoughts, procedures, methods, systems, proceedings, ideas, ideologies,
findings, or plans, as distinguished from a description, explanation, or
illustration.
• Works comprisingwholly of information that is common property and
containing no original authorship (for example: height and weight charts,
standard calendars, tape measures and rulers, and tables or lists taken
from public documents or other common sources).
Copyright Registration
In general, copyright registration is a legal formality intended to make a public
record of the basic evidences of a particular copyright. Though, registration is not a
condition of copyright protection. The copyright law offers several incentives or
compensations to encourage copyright owners to make registrationeven though registration
is not aresponsibility for protection. Amongst these are the following advantages:
• Registration creates a public record of the copyright entitlement.
• Registration is necessary for works before a violation suit may be filed
in court.
• Registration will establish prima facie proof in court of the power of the
copyright and of the facts stated in the certificate if made before or
within five years of publication.
• Legal damages and attorney’s fees will be available to the copyright
owner in court actions if registration is made within three months after
publication of the work or earlier to aviolation of the work. Else, only an
award of actual indemnities and profits is available to the copyright owner.
Copyright Board
Section 11 of the Act offers for the establishment of the Copyright Board
and authorizes the Central Government to establish the same consisting of a
Chairman and not less than two, but not more than fourteen members.
Chairman of the Board should be a sitting or retired judge of the High
Court or a person experienced to be appointed as judge of the High Court. The
Registrar of Copyright to act as Secretary of the Copyright Board.
Functions of the Copyright Board
The chief functions of the Copyright Board are as under:
1. Clearing of differences as to whether copies of any literary, dramatic or
artistic work or records are delivered to the public in satisfactory numbers
2. Clearing of differences as to whether the term of copyright for any
work is lesser in any other country than that provided for that work
Business
under the Act Entrepreneurship - VI 163
Intellectual Property Rights 3. Clearing of differences with respect to assignment of copyright as dealt
with in Section 19A
4. In respect of Indian works withheld from public authorizing of compulsory
licences
NOTES
5. To publish unpublished Indian works authorizing of compulsory licence
Check Your
6. To produce and issue conversion of literary and dramatic works
Progress
authorizing of compulsory licence
8. Explain the term
7. To replicate and issue literary, scientific or artistic works for certain
Copyright.
purposes authorizing of compulsory licence
9. Define the term
8. Determination of royalties allocated to the owner of copyright
copyright law.
9. Determination of opposition lodged by any person as to the fees charged
10. State the two Gen-
by Performing Rights Societies
eral Principles of copy-
right. 10. Reorganisation of Register on the application of the Registrar of Copyright
or of any person distressed
11. Enlist the works
that are protected by The Copyright Board has no powers to limit the user of copyrightto any
Copyright. particular territorial area. The appeal against orders passed by the Copyright Board
except under Section 6 lies to the High Court within whose Jurisdiction the appellant
12. Enlist the works
resides or carries on business.
that are not protected
by Copyright.
13. State the functions
of the Copyright 10.5 Patents
Board.
The creative and original work of the human mind is protected through
several measures and the keyinspiration for the same is that such protection is a
definite measure of inspiration for the creative activity. Numerous forms of
protection of the creative activity arebeing originated about including those which
are of precise interest in the industrial development, Patentis being one of them.
Patent means a monopoly grant and it permits the inventor to control the output
and within the bounds set by demand, the price of the patented products.
Fundamental economic and commercial justification for the patent system is that
it acts as a motivation to investment in the Industrial innovation. Innovative
technology leads to the conservation and maintenance of an increase in countries’
stock of valuable, tradable and industrial assets.
As far back as 500 B.C the grant of first patent can be traced. To promote
culinary art it was the city dominated by gourmands, and possibly the first, to grant
what we now-a-days call patent right.They first invented a delicious dishand
deliberated exclusive rights of sale to any confectionerfor it. It acquired a name
‘monopoly’, a Greek Portmanteau word from mono (alone) and pole in (sale) as
the practice was extended to other Greek cities and to other crafts and
merchandises.
From making, using or selling the invention without its approval a patent
for an invention is permitted by government to the inventorproviding the inventor
the right to stop others for a limited period. When a patent is granted the invention
becomes the property of the inventor, which like any other form of property or
business asset can be bought, sold, rented or hired. Patents are regional rights: a
UK patent will only provide the holder rights in the UK and rights to stop others
Business from presenting the patented products into the UK.
To be Patentable your invention must: Intellectual Property Rights
• Be New - Never been made public in any way, anywhere in the world,
earlier the date on which the application for a patent is filed.
• Involve an inventive step - If when associated with what is earlier known, NOTES
it would not be understandable to someone with good knowledge and
experience of the subject.
• Be capable of industrial application - An invention must be capable of
being made or used in some kind of industry. This means that the invention
must take the applied form of a gadget or device, a product such as
some new material or an industrial process or method of operation.
An invention is not patentable if it is:
• Aninnovation
• A scientific theory or calculated method
• An artistic creation, literary, dramatic or artistic work
• A scheme or method for performing a mental act, playing a game or
doing business
• The presentation of information or a computer program
It may be patentable if the innovation involves more than these intellectual
aspects so that it has physical features (such as special device to play a new game).
In addition for plant variety, a method of treatment of the human or animal
body by surgery or therapy or a method of analysis it is not possible to get a patent.
Layout of Patents
Based on characteristic layouts in patent specifications since the late 1970s,
before this they were likely to lack a front page and search report.
• Front page -A patent will have a front page, used in the same way as a
book will have a title page which gives useful bibliographical details. It
uses two letter country codes and INID codes to recognize pieces of
information.
• An Abstract - (collected nowadays by the applicant) and may be an
illustration. This layout is becoming graduallyreliable but the information
given can differ from nation to nation.
• Opening Statement - Usually states the problem.
• Background Information –Patents in US are likely to have a discussion
of the ‘state of the art’ with situations to key patents, books or journal articles.
• Problem - The nature of the problem is outlined.
• Description of the invention - Explains the creative step and how it works.
• Claims - The numbered claims cover the legal aspects of the domination,
with the first being the main claim and the later dependant claims
mentioning back to earlier claims in telling what is new about the invention.
In a published application the claims are simply an effort to get protection Business
while the granted patent has the claims that are recognised in law. Entrepreneurship - VI 165
Intellectual Property Rights What rights does a patent give?
• A patent gives the right to stop others from using your innovations and
discoveries. Howsoeverunder decided terms you can choose to let others
use it.
NOTES
• A patent also gives the right to take legal action against others who
might be intruding and to claim entitlement damages.
• In order to put an invention into practice an inventor is not obliged to get a
patent, but once the invention is made public, you would be unable to obtain a
patent and there will be no protection against others using the invention.
• Others do not copy a patented invention is not guaranteed by the
Intellectual Property Office. To ensure an idea is not infringed it is up to
the owner to take any necessary action. Any ideas may not be reregistered
once ‘Granted’ or in the public domain.
Application of Patent
Section 6 of the Act provides that an application for a patent for an invention
may be made by any of the following persons either alone or jointly with another:
(a) By any person pleading to be the true and first inventor of the invention;
(b) By any person being the assignee of the person appealing to be the true
and first inventor in respect of the right to make such an application;
(c) By the legal representative of any dead person who instantly before his
death was permittedto make such an application.
As per Section 2(1) (y), “true and first Inventor” does not include either
the first importer of an invention into India or a person to whom an invention is
first communicated from outside India. The applicant should reveal the name,
address and nationality of the true and first applicant.
A natural person or other than natural person like registered company,
research organization, educational institute or Government can be an Assignee
(S.2 (1)(s)). Assignee includes assignee of the assigneealso (S. 2(1) (ab). To apply
such as assignment deed ‘Proof of right’ should be submitted by the assignee.
A person who in law represents the estate of a deceased person means
Legal representative (S.2 (1) (k)). In such a case, as proof of right they should file
death certificate etc.
The legal representative or assignee of the applicant in the Convention
Country can also file a Patent Application in India in case of an agreement application.
Types of Patent Applications
1. Ordinary Application, i.e., an application which has been filed directly in
the Indian Patent Office.
2. Convention Application.
3. PCT Application.
4. Divisional Application, which can result from division of a Patent Application.
5. Patent of addition, which may be filed subsequent to the Filing of an Application
Business
for Patent, for an improvement or modification. [Section 7, 54,135].
166
10.6 Trademark
A sign capable of differentiating the goods or services created or provided
by one enterprise from those of other enterprises is known as Trademark. Any
distinctive words, letters, numbers,drawings, pictures, shapes, colours,logotypes, NOTES
labels or combinations used to distinguish goods or services may be considered a
trademark. In some nations, advertisingslogans are also considered trademarks Check Your
and this may be registered as such with national trademark offices. An increasing Progress
number of nations also allow for the registration of fewer traditional forms of
trademarks, such as audible signs (sounds) ,single colours, olfactory signs (smells), 15. Explain the term
or three-dimensional signs (shapes of products or packaging),. However, on what Patents.
can be registered as a trademark many nations have set limits, usually only allowing
16. State the layout of
for signs that are visually noticeable or that can be characterized graphically.
Patents.
What are trademarks for?
17. Enlist Patentable
The main purpose of a trademark is to permitits customers to identify a inventions
product (whether a good or a service) of a specific company so as to distinguish it
18. Enlist types of
from other identical orsimilar products provided by competitors.Consumers who
Patent applications
are satisfied with a specified product are probable to buy or use the product again
in the future. For this, they need to be able to distinguishmerely between identical,
matching or look alike products.
Trademarks play a vital role in the branding and marketing strategies of
companies,contributing to the meaning of the image,and reputation of the company’s
products inthe eyes of consumers by letting companies to distinguish themselves
and their products from those of the competition. The image and statusof
anenterprise creates trust which is the foundation forcreating a loyal customerand
enlighteninga company’s goodwill.Regular Consumers oftendevelop an emotional
attachment to definitetrademarks, built on a set of favoured qualitiesor features
exemplified in the products bearing such trademarks.
In order to safeguard that products bearing their trademark have a positive
reputation trademarks also provide aninspiration for companies to invest in
preserving or improving the quality of their products.
The Value of Trademarks
For most of the companies a carefully designated and encouraged
trademark is a valuable business asset. It may be the most valuable asset for
some that they possess. An approximated value of some of the world’s most
renowned trademarks such as IBM or Coca- Cola exceeds 50 billion dollars each.
This is because their position, their lookthe trademarks, and a set of preferred
qualities they subordinate with the mark, are valued by the customers and they are
willing to pay more for a product bearing a trademark that they identify and which
meets their capacities. Therefore, with a good image and status the very ownership
of a trademark provides a company with a competitive edge.
Selecting or Creating a Trademark
As it is animportantand essential element of the marketing strategy of any
business choosing or creating an appropriate trademark is a thoughtful and serious
step. So the question arises that, what is an appropriate trademark for your
product(s)? Undoubtedly, there are no specific hard and fast rules. But the
subsequent five-point checklist isvaluable and useful.
Business
Five Point Checklist for Selecting Your Trademark
Intellectual Property Rights • Check that all the legal necessitiesfor Registration are met by your
trademark of choice.
• To make sure that it is not alike or bewilderingly similar to existing
trademarks do a trademark examination.
NOTES
• Make sure the trademark is easy to read, write, spell and remember and
is appropriate to all types of advertising media.
• Make sure in your own language or in any of the languages of potential
Check Your export markets the mark does not have any undesired meanings.
Progress • Check that the consistentdomain name (i.e. Internet address) is available
19. Explain the term for registration.
Trademark. Registration
20. Explain the role After the publication of trade mark in the Trade Marks Journal, within three-
and purpose of trade- months if the trade mark is not opposed by a third party, it will progress for registration
marks. and the Trade Marks Registry will thereafter issue a certificate of registration.
21. Explain the value
of trademarks.
22. Enlist the Five 10.7 Geographical Indications
Point Checklist for Se-
lecting Trademark. A product’s superiority, status or other features can be determined by
where it comes from. Geographical indications (GIs) are place names (in some
countries also words associated with a place) used to distinguish/ identify products
that come from these places and have these characteristics (for example, “Khadi”,
“Tea” or “Roquefort”).
The basic concept underlying GIs is diffident, and familiar to any shopper or
consumer who picksDarjeeling over “black” tea or Roquefort over “blue” cheese.
“Cognac”, “Scotch”, and “Darjeeling” are some renownedillustrations of names
associated and linked around the globe with products of a certain nature and dominance,
known for their geographical origin and for having features linked to that origin.
A geographical indication is emblems used on products that have a definiteand
specific geographical origin and own qualities or a status that are due to that origin.
‘Geographical indication’ in relative to goods means an indication which
identifies and recognises such goods as natural goods, agricultural goods, or
manufactured goods as originating, or manufactured in the land or territory of a
nation, or a region or locality in that territory, where a specified quality, standing or
other features, characteristics of such goods is principally and essentially associated
and attributable to its geographical base or origin and in a circumstance where
such goods are manufactured goods one of the activities of either the processing
or production or preparation of the concerned goods takes place in such land
,territory, region or locality, as the situation may be.
It may be noted that, any name which is not the name of a country, region or
locality of that country shall also be reflected as the geographical indication if it relates
to a specific geographical area and is used upon or in relation to particular goods
originating from that country, region or locality, as the case may be. [Section 2(1) (e)]
Registrar
Business
The Registrar of Geographical Indications mentioned to in Section 3 means
168 Entrepreneurship - VI “Registrar”.
Under Section 3 of the Act Registrar of Geographical Indications is the Intellectual Property Rights
Controller General of Patents, Designs and Trade Marks appointed under sub-
section (1) of Section 3 of the Trade Marks Act, 1999.
Registration of Geographical Indications
NOTES
Section 8 of the Act provides that a geographical indication may be registered
in respect of any or all of the goods, comprised in such class of goods as may be
characterized by the Registrar and in respect of a definite territory of a country, or
a region or neighbourhood in that territory, as the case may be.
For the determinations of registration of geographical indications the
Registrar may also classify the goods under in agreement with the International
classification of goods and issue in the prescribed manner in an alphabetical index
of organization of goods.
Any question mounting shall be determined by the Registrar whose judgment
in the matter shall be finalsuch as to the class within which any goods fall or the
definite area in respect of which the geographical indication is to be registered or
where any goods are not specified in the alphabetical index of goods printed.
Duration of Registration
According to Section 18, a registered geographical indication shall be legal
for 10 years and on payment of renewal fee from time to time it can be renewed.
Within three months any person upset by an instruction or decision of the Registrar
may desire an appeal to the intellectual property appellate board (IPAB). [Section31]
Benefits of Registration
In Geographical Indications registration the legal right is given to the registered
proprietor and its authorised users, to the private use of the GI and also the right to
obtain relief in case of its desecration. Elimination of illegal persons from abusing GI
would ensure that genuine products of the rightful producers are marketed.
Offences by Companies
The Company as well as person accountable in the company for conducting
the business of the Company shall be answerable and punished accordingly as per
Check Your
Section 49 when a Crime is committed by a Company.
Progress
23. Explain geographi-
cal indication with suit-
10.8 Industrial Design able examples.
“Industrial design is an applied art whereby the aesthetics and usability of 24. Explain the term
mass-produced products may be developed for marketability and production. The Registrar.
part of an Industrial Designer is to make and implement design solutions towards
problems of form, usabily, user ergonomics, engineering, marketing, brand 25. Describe registra-
development and sales.” tion of Geographical
Indications
Industrial designs belong to the artistic field, but are at the same time
intended to serve as pattern for the manufacture of products of industry or
handicraft. An industrial design is the attractive, ornamental or aesthetic aspect of
a useful article, which must appeal to the sense of sight and may contain of the
shape and/or pattern and/or colour of article. To be protectable an industrial design
must be new and original. For a period which usually lasts for five, ten or 15 years Business
industrial designs are protected against illegal copying or imitation. Entrepreneurship - VI 169
Intellectual Property Rights Industrial Design is apprehensive with all the human aspects of machine-
made products and their relationship to people and the environment. The designer
is accountable for these products and their impact on society and nature. The
designer accounts for the product’s human factors engineering, security, method,
NOTES colour, maintenance and price. Industrial design deals with industrial products as
well as consumer products. Designers must be involved in four major design and
research activities in order to achieve these ends: the environment, the human-
machine interface, human behaviour,and the product itself. Appliances, furniture,
housewares, tools, medical/electronic instruments, farm equipment, transportation,
human interface, and recreational support equipment are the ranges of design
investigations.
The human facets of machine-made products and their relationship to
people and the environment are
• Product’s human factors engineering
• Security
• Method
• Colour
• Preservation
• Worth.
Industrial design deals with industrial products as well as consumer products.
• Human behaviour
• The human-machine boundary
• The site, and the
• Formation itself.
What is Not a Design?
Design does not include:
• Any trademark, as defined in Section 2(z b) of the Trademarks Act,
1999, or
• Any property mark, as defined in Section 479 of the Indian Penal Code,
1860, or
• Any artistic work, as defined in Section 2(c) of the Copyright Act, 1957.
Artistic Work means
• A image, statue, sketch (including a diagram, map, chart or plan), acarving
or a picture, whether or not any such work holds creative quality.
• Any work of architecture i.e. any construction or building having an
imaginative character or design or any mode for such building or structure.
• Any work of imaginative workmanship (Section 2(c)).
• illustrative list of non- registrable designs is as under:
Business • Calendars, certificates, book jackets, forms and other documents.
• Dress making patterns, greeting cards, leaflets, maps and plan cards. Intellectual Property Rights
• Post cards, imprints and awards.

• Stickers, signs, cards and comics.
NOTES
• Any principle or technique of construction of an article.
• Simple workshop modifications of components of an assembly.
• Mere change in size of article
• Flags, emblems or symbols of any country.
• Layout designs of integrated circuits.
Registrable Design
A design is capable of being registered only if it is innovative or original.
Novelty:A design shall be considered to be new when it has not been
exposed to the public, anywhere in India or in any other Country, by publication or
by use or in any other way, earlier to the filing date or priority date.
A design shall be considered new if it is meaningfully divergent from known
designs or combination of known designs.
Originality: Original in relation to a design, means
(a) Creating from the author of design, and Check Your
Progress
(b) Comprises the cases, which however old in themselves yet are new in
their submission. 26. Define the term In-
dustrial design.
For example, Taj Mahal Monument is centuries old. But if a
individualdeliberates for the first time, the impression of making a flower vase in 27. Explain the re-
the form of Taj Mahal monument , that may be treated as an original design and quirements for indus-
shall be eligible for registration. trial design.
10.9 Summary
• Intellectual property Right (IPR) is a word used for numerous legal rights
which attach to certain types of information, ideas, or other intangibles
in their expressed form.
• Intellectual property rights (IPR) can be defined as the rights given to
people over the creation of their minds.
• Properties are of two types - tangible property and intangible property
i.e. one that is physically present and the other which is not in any physical
form. Building, plot, house, money, jewellery are few examples of tangible
properties which can be seen and sensed physically.
• One can broadly classify of IPRs into two categories: IPRs that awaken
imaginative and creative activities (patents, utility models, industrial
designs, copyright, plant breeders’ rights and layout designs for integrated
circuits) and IPRs that deal with information to consumers (geographical
indications and trademarks).
Business
Intellectual Property Rights • Copyright is a branch of law that awards authors (writers, musicians,
artists and other creators) protection over their works.
• The author/ novelist or those developing their rights through the author
can only rightfully claim its copyright.
NOTES
• In general, copyright registration is a legal formality intended to make a
public record of the basic evidences of a particular copyright. Though,
registration is not a condition of copyright protection.
• Several categories of material are usually not qualified for federal
copyright protection.
• The creative and original work of the human mind is protected through
several measures and the key inspiration for the same is that such
protection is a definite measure of inspiration for the creative activity.
Numerous forms of protection of the creative activity have being originated
about including those which are of precise interest in the industrial
development, Patents is being one of them. Patent means a monopoly
grant and it permits the inventor to control the output and within the
bounds set by demand, the price of the patented products.
• From making, using or selling the invention without their approval a patent
for an invention is permitted by government to the inventor, providing the
inventor the right to stop others, for a limited period.
• A sign capable of differentiating the goods or services created or provided
by one enterprise from those of other enterprises is known as Trademark.
• “Industrial design is an applied art whereby the aesthetics and usability
of mass-produced products may be developed for marketability and
production.
• Industrial designs belong to the artistic field, but are at the same time
intended to serve as pattern for the manufacture of products of industry
or handicraft. An industrial design is the attractive, ornamental or aesthetic
aspect of a useful article, which must appeal to the sense of sight and
may contain of the shape and/or pattern and/or colour of article. To be
protectable an industrial design must be new and original. For a period
which usually lasts for five, ten or 15 years industrial designs are protected
against illegal copying or imitation.
10.10 Key Terms

• Intellectual Property Rights: Intellectual property rights refer to the
general term for the assignment of property rights through patents,
copyrights and trademarks.
• Copyright: Copyright is a legal right created by the law of a country
that grants the creator of an original work with the exclusive rights for
its use and distribution. This is usually only for a limited time.
• Patent: Is a set of exclusive rights granted by a sovereign state to an
inventor or assignee for a limited period of time in exchange for detailed
public disclosure of an invention.
Business
• Trademark: is a recognizable sign, design, or expression whichidentifies Intellectual Property Rights
products or services of a particular source from those of others, although
trademarks used to identify services are usually called service marks
• Industrial design: is an applied art whereby the aesthetics and usability
NOTES
of mass-produced products may be developed for marketability and
production. The part of an Industrial Designer is to make and implement
design solutions towards problems of form, usability, user ergonomics,
engineering, marketing, brand development and sales.
• Geographical indications (GIs): are place names (in some countries
also words associated with a place) used to distinguish / identify products
that come from these places and have these characteristics (for example,
“Khadi”, “Tea” or “Roquefort”).
10.11Questions and Exercises

1. Explain the meaning of Intellectual property with suitable examples.
2. Define Intellectual property rights.Explain Intellectual property rights.
3. Explain the categories of Intellectual Property.
4. Explain the rights relating to Intellectual property.
5. Explain the term property and its types.
6. Explain the term Copyright.Explain the functions of the Copyright Board.
7. Define the term copyright law.State the two General Principles of
copyright.
8. Enlist the works that are protected by Copyright.Enlist the works that
are not protected by Copyright.
9. Explain the advantages of copyright registration
10. Explain the term Patents.State the layout of Patents.
11. Enlist Patentable inventions
12. Enlist types of Patent applications
13. Explain the term Trademark.Explain the role and purpose of trademarks.
14. Explain the value of trademarks.
15. Enlist the Five Point Checklist for Selecting Trademark.What are the
main functions of trademark?
16. Explain geographical indication with suitable examples.
17. Explain the term Registrar.Describe registration of Geographical Indications
18. Define the term Industrial design.Explain the requirements for industrial design.
19. What is Patent?Explain the Layout of Patents. What are the Rights of Patents?
20. What are Geographical Indications?Explain the duration and benefits of
Business
Geographical Indications. Entrepreneurship - VI 173
Intellectual Property Rights 21. Explain Process of ID.
22. Explain registrable Design.
NOTES
1. Intellectual property rights (IPR) is the rights given to people over the
creation of their minds.
a) True b) False
2. Which is not the Types of Intellectual Property Rights?
a) Copy rights b) Goodwill c) Patents d) Trade marks
3. Intellectual property rights means..
a) Intellectual personal rights b) Intellectual private rights
c) Intellectual provisional rights d) Intellectual property rights
4. Which of the following are the Categories of Intellectual Property?
a) Industrial Property b) Copyright
c) Both of the aboved) None of the above
5. Intellectual property shall include the right relating to:
a) Literary, artistic and scientific works; b) Scientific innovations;
c) Industrial designs; d) All of above
6. Industrial design deals with
a) Consumer products b) Industrial products c) Both a & b
d) None of the above
7. The designer is accountable for these products and their influence on
society and nature.
a) True b) false
8. A geographical indication is a sign used on
a) Products b) Prices c) Populations d) All of the above
9. What is a recognizable sign, design, identifies or expression products
which orservices of a particular source?
a) Trademark b) Patents c) Copyrights d) Hallmarks
10. What is approved by government to the inventor, providing the inventor
the right to stop others, for a limited period, from making, using or
selling the invention without their authorization?
a) Hallmarks b) Trademark c) Patent d) Copyrights
11. A design is capable of being registered only if it is……….
a)Innovative or original. b) Trademark c) Patent d) Copyrights
Business Answers
1. a Intellectual Property Rights
2. b
3. d
NOTES
4. c
5. d
6. c
7. a
8. a
9. a
10. c
11. a

http://copyright.gov.in/
http://dcmsme.gov.in/emerge/website_material_on_IPR.pdf
http://repository.cmu.edu/sds
https://www.wto.org/english/tratop_e/trips_e/intel1_e.htm
Jean O. Lanjouw and Mark Schankerman, August 2003, “Protecting
Intellectual Property Rights: Are Small Firms Handicapped”? Journal of Law and
Economics
Michele Boldrin and David K. Levine, January 14, 2002,”The Case Against
Intellectual Property”,University of Minnesota and UCLA,2002.
Yongmin Chen and Thitima Puttitanun “Intellectual property rights and
innovation in developing countries”,Journal of Development Economics 78 (2005)
474– 493.
Business
Profiles of Successful
Entrepreneurs-I UNIT11 : PROFILES OF SUCCESSFUL
ENTREPRENEURS - I
NOTES
Structure
11.0 Introduction
11.2 Profiles of Successful Entrepreneurs
11.2.1 Hari Menon
11.2.2 OmprakashDadappa Alias Kaka Koyate
11.2.3 RadhakishanDamani
11.2.4 Alan Mamedi and NamiZarringhalam
11.2.5 Rahul Sharma
11.2.6 ChandrakantGavane
11.3 Summary
11.4 Key Terms
11.0 Introduction
Until yet, you have become well conversant with various aspects of the
discipline of business entrepreneurship. Various fundamentals of business
entrepreneurship right from the concept of entrepreneurship, theories of
entrepreneurship development, entrepreneurial personality, entrepreneurial
environment, role of creativity and innovation in entrepreneurship, entrepreneurial
motivation and the like. Now, read the following profiles and try to appreciate the
personal characteristics, the prominent personality traits and also environmental
influences on development of entrepreneurship.

• Be aware about some successful entrepreneurs and their enterprises
• Learn about the entrepreneurial journey
• Know about motivating factors of the entrepreneurs
Business • Be familiar with the philosophy of the entrepreneurs
• Appreciate the achievements of the entrepreneurs Profiles of Successful
Entrepreneurs-I
• Explore the traits of successful entrepreneurs
• Identify the winning strategies of successful entrepreneurs
NOTES

Profiles of some successful entrepreneurs are presented below:
11.2.1 Hari Menon
Hari Menon is the Cofounder, CEO and Head of Merchandising at
Bigbasket.com. BigBasket.com is owned and operated by ‘Supermarket Grocery
Supplies Pvt. Ltd.’. It is India’s largest online food and grocery store consisting of
18000 products and more than 1000 brands listed in catalogue on their portal with
wide varieties in fruits and vegetables, spices, dal and rice, beverages, personal
care and packaged products, meats etc. at the lowest prices and the best quality.
Hari was born in 1963, in a middle class family residing in Bandra, Mumbai
and was brought up with an eye for ‘stable job = settled life’ mantra. It was his
drive and passion which later tempted him to follow something new, something
different. He completed his education in BITS Pilani and later married to Shanti
Menon who is the principal of the Deen’s Academy, Bangalore and daughter of E.
Shreedharan- the person who is the primary force of Delhi metro.
Having starting his career as Business Head of Infotech Business in
‘Wipro’, he has played a core role in quite a few ventures. He was one of the
founding members of Fabmart which is an e-commerce site and its physical
implementation Fabmall. He also was the CEO of ‘Indiaskills’- a professionally
managed Human Resource Skill Assessment organization set up by a group of
entrepreneurs, an Educational Hub. Additionally, he was the Country Head of
‘PlanetAsia’, one of the first internet services businesses in India. A music enthusiast
by heart, he aspires to play in a band some fine day. Also cricket follower and fan,
he is a member of Karnataka cricket association.
The story of BigBasket goes long back when Hari and his friends –
AbhinayChaudhari, VipulParekh, V. S. Ramesh, V. S.Sudhakar launched their online
retail website called ‘Fabmart’. It failed to yield promised stir in the market being
ahead of its time and did not click to its consumer’s way of life. So, the group
decided to focus on its offline version ‘Fabmall’ and decided to merge it with
another grocery store ‘Trinethra’. They expanded their business to 200 stores in
the span of seven years spreading in Kerala, Karnataka, Andhra Pradesh and
Tamil Nadu and eventually sold it to Aditya Birla Group,which brought them back
to their original idea of an online groceries store in which they got support from the
serial entrepreneurs and angel investors Krishnan and Meena Ganesh.
In December 2011, they went ahead and launched Bigbasket.com with
first funding of $10Mn from ChrysCapital. They relied on word of mouth instead
of fashionable advertising and trusted on their customers for references. Soon
they acquired a local delivery startup ‘Delyver’ for its delivery service and in
2015, they got Bollywood superstar ShahRukh Khan as their brand ambassador. A
large number of similar ventures like Farm2Kitchen, Localbanya, Aaram-Shop
started to compete but in the end BigBasket came on top.
Business
Profiles of Successful Bigbasket started with ‘Just in Time (JIT) model’ in which all goods were
Entrepreneurs-I brought against an order, meaning after an order is received, the delivery boy
picks up the item from seller and directly delivers it to the consumer i.e.there is no
storage of goods/products. Over time, they moved to ‘inventory model’ but ‘JIT
NOTES model’ is still applicable for some products like bakery items, pet food, small
household appliances etc which are not feasible to store. Bigbasket now buys
products, stock them in their warehouses, then add their respective margins and
sells them. They store products locally by buying from local markets as well as
national markets purchased on a bigger scale. It all depends on various factors
like durability, price, availability, demand, perishability etc. It is a complete automated
process based on logistics. Recently they adopted a hyperlocal strategy in which
BigBasket partnered with more than 2400 local grocery stores across town and
thus deliver goods in less than an hour.If unable to deliver the order within the
stipulated time, the company credits 10% of the order value to the customer’s
BigBasket account. With a fleet of Omni vans, the company personally takes care
of all the deliveries. They have a ‘no questions asked’ return policy.
As of today, BigBasket processes more than 25,000 orders per day with a
team of 2500 members. It is spread over cities likeBangalore, Hyderabad, Mumbai,
Pune, Chennai, Delhi-Noida, Mysore, Madurai, Coimbatore, Vijayawada-Guntur,
Kolkata, Ahmedabad-Gandhinagar, Nashik, Lucknow-Kanpur, Gurgaon, Vadodara,
Visakhapatnam, Surat, Nagpur, Patna, Indore and Chandigarh Tricity.
Check Your
Progress BigBasketis now valued at around 2100 crore i. e. $320 Mn. It has received a
total equity funding of $85.8 Mn in 3 rounds from the investors – Ascent Capital Group,
1. Fabmart is — Bessemer Venture Partners, Hellon Venture Partners, ICICI Venture and Zodius Capital.
launched by —
11.2.2 Omprakash alias Kaka Dadappa Koyate
Omprakash alias Kaka was born on 23rd September 1952 in a simple,
ordinary family in Kopargaon. His father, DadapaKhandappaKoyate, was a kirana
merchant and was known as an honest businessman. He was totally devoted to
his shop and his family. He was never interested in social work. However, Kaka
had an inclination towards social work right from the childhood. His parents never
encouraged him for social work however, they never opposed him. He studied in
ShrimanGokulchandjiVidyalaya. During his college days, Kaka started taking
interest in social work.
In 1969, Kopargaon suffered a lot due to flood. His father’s shop was
also badly affected and his father was disheartened due to the loss. His father
could not pay attention to his shop due to illness. Omprakash and his mother Kashibai
managed the shop. He could not be regular in attending classes due to the
responsibility of shop.
1973-74, there was tremendous shortage of oil and ghee especially during
festive season. Political parties picked up the issue and they started troubling the
merchants. Omprakash stood firm against the injustice and with his initiative,
TalukaKirana Merchants Association was established with an intent to protect the
interests of kirana merchants.
Kaka started library in front of his house from his own resources. However,
with increase in the number of readers, providing adequate facilities was difficult
due to lack of funds but it was typical of Kaka to find out solution for every
problem in his own way. In a blood donation camp organized by Lions club, he
observed that every donor was getting Rs. 40 and Kaka decided something in his
Business mind. He convinced his friends for blood donation and he was able to raise Rs 400
178 Entrepreneurship - VI by donating blood and utilized that money for building platform and made
arrangements like lighting for the library. This was the beginning of his social work Profiles of Successful
which made a deep impact upon his future activities. Entrepreneurs-I
He used to participate in dahihandi celebration, Ganapatiutsav in an

enthusiastic manner. In those days, various castes used to have their own
NOTES
Ganapatimandals in Shivaji road area in Kopargaon. But it was typical of Kaka to
think about something new, and unique in his own way. He conducted meeting of
office bearers of all the Ganapatimandals in Shivaji road and convinced them
about having only one Ganapati for Shivaji road. His suggestion was well received
by all and that practice went on for several years thereafter. This incident boosted
him for further social work in future.
At the time of entry of Youth congress in Kopargaon, he got an offer to
join it with good position on the basis of recognition as a social worker and his
popularity. He rejected joining Youth congress since he was not interested in political
activities. Anyhow, later on, he had to join it as President of Youth congress for
Kopargaon in 1976.
In 1976, Kopargaon again suffered due to flood. For the sake of helping
the flood affected people, he organized a cultural programme and raised Rs. 6
lakhs for rehabilitation.
Kaka’s business career began in 1971-72. He came across an
advertisement of machinery for manufacturing of ball pens costing near about Rs.
1000 to Rs. 1200. He purchased the machinery from Thane and started
manufacturing of ball pens at his house. He always wanted to do something different
and unique from others. He sensed a business opportunity of selling Limletgolis at
theatres. He used to purchase 70 kg golis on wholesale basis, travel by bus and
carry the load on his shoulders so as to minimize the expenditure. And by offering
less margin, he was able to increase his turnover and earn money. He was attracted
towards sale of lottery tickets at 10% commission in weekly bazars. Then he
started manufacturing and sale of wax candles along with ball pen refills. Later on
he used to keep these products in his kirana shop for sale.
Due to his interest in social work, he came across several business
opportunities. Merchants of Fire crackers from Kopargaon faced some difficulty
and they approached Kaka for help since they didn’t possess the courage needed
for problem solving. The things took shape in such a manner that Kaka had to
enter into the business of sale of fire crackers and the required initial capital was
contributed by the merchants on their own and also the merchants voluntarily
offered him a stock of Rs. 600 on credit. He took only a day for sale of the entire
stock. Next year he wanted to enter into the business, purchased a stock of Rs.
1200 on credit from Nagar and sold it within 2 days. He was gainfully engaged in
seasonal businesses such as sale of rakhi, Ganapati statues and he could sustain
for the entire year and dedicate his time and energy for social work.
While dealing with the activities at Youth congress he had to protest against
one of their family friends. His parents first scolded him for protesting against the
family friend and for being arrested. However, second day his father praised him
for standing firmly for the social cause.
At the age of 22, he was elected with majority in People’s co-operative bank on
the basis of his hard work in canvassing his candidature and also good will of his father
and his honesty in business. However, he was extremely unhappy with the manner of
disbursement of loans and rejection of loans to small merchants and businessmen.
Business
Profiles of Successful He started BC (Best Co-operation) scheme for small businessmen through
Entrepreneurs-I Kirana Merchants Association. He launched money circulation scheme out of the fund
of Rs. 80,000 raised out of donations from businessmen in which he contributed Rs. 2000
from his own pocket. He raised an additional amount of Rs. 80,000 from the outside
NOTES merchants for putting their advertisements in the souvenir. Out of this total amount of Rs.
1, 60,000; small businessmen were given money as per their requirements without charging
any interest. Now this fund has been increased to Rs.45 lakhs and the scheme is still in
working. However, he wanted to do something legal and legitimate since he was worried
about legal aspects of BC and money circulation scheme. And then he became curious
about credit society and started to seek information about the registration formalities,
procedures, working, as well as functioning of credit society.
There were only forty five credit societies in Maharashtra in those days.
Then he visited SarvodayaPatsaunstha i.e. credit society from Sangamner. He
had a discussion with friends and decided to launch credit society in Kopargaon.
After coming back from Samgamner, immediately on the third day he called a
meeting of merchants in Kopargaon and told them about the concept of credit
society and appealed them to participate in it. With a view to bring samata i.e.
equality among all the businessmen – small and large, the credit society was named
as Samata Urban Co-operative Credit Society. He started vising the merchants,
explain them the concept of credit society in detail and this was how he collected
Rs 50 from each member in 15 days and collected Rs 15000.
Samata Nagari Sahakari Patsanstha Ltd i. e. Samata Urban Co-
operative Credit Society Ltd.
Samata Urban Co-operative Credit Society, Kopargaon was founded on
11th may 1986. The name Samata is synonymous with trust and transparency. The
organization has its own, well equipped building with state of the art technology,
complete computerization of entire operations and modern services along with
dedicated staff. The deposits have crossed Rs. 150 crores. It has won an ‘A’
rating on the annual audit. With expanding horizons, new branches are opened at
Rahata, Shrirampur, Yeola, Pune, Nashik, Ahmednagar, Rahuri and Nanded. Owing
to his deep knowledge, experience and dedication towards co-operative movement,
Mr. Kaka Koyate has been selected as the chairman of the federation that happens
to be the apex body of all the credit co-operative societies in Maharashtra.
Samata Urban Co-operative Credit Society is a socially responsible
organization which undertakes various activities such as finance for education to
the needy, play school, blood donation camps, loans to small businessmen, assistance
to victims of natural calamities etc.
Samata Charitable Trust was founded in 2009 with an objective to serve
the society with a focus on upliftment of the society through value based education.
Samata Charitable Trust’s Samata International School, as the very name suggests,
is a school without barriers of castes, religions and creeds which strongly believes
that all round development of learners is the first priority.
Kaka ventured into Niwara Housing Society in 1982. His first initiative of
Nirmitee Developers consisted of a huge undertaking of 300 bungalows in Kopargaon
over 14 acres of land. He completed several residential projects in Kopargaon,
Shrirampur, Loni, Belapur, Vaijapur, Rahata, Shirdi and also flats, bungalows, offices
as well as shops. Then he entered into the world class construction house - Surya
Developers. He has been bringing out new projects in Pune too.
Business He organized Make in Kopargaon expo in 2015 to provide a wide market

180 Entrepreneurship - VI for small entrepreneurs and other businessmen and in that expo more than 25,000
persons were offered jobs.
He was instrumental in establishing India’s first business women’s Profiles of Successful
organization in Kopargaon named as KopargaonMahilaVyapariSangh. Entrepreneurs-I
As the president of VirshaivaSamaj for Maharashtra state, he was very

successful. He did really commendable work and solved various issues in an
NOTES
effective manner. He roamed around the entire state and organized the biggest
conference of VirshaivaSamaj at Nanded. He is the founder chairman of Virshaiva
International Association (VIA). He visits several countries frequently for the
sake of uniting Virshaivasamaj together.
He has represented India for the first time in an International Conference
of Credit Societies at Philipines. There he got elected as a director for a credit
society of eleven nations.
In spite of being a diabetic patient from an early age of twenty three, he is
always enthusiastic and full of energy and zeal. When it comes to social work, he
never leaves a stone unturned. And even after a hectic schedule, when he reaches Check Your
home, he shares quality time with his family members. Progress
11.2.3 Radhakishan Damani 2. Samata Urban Co-

operative Credit Soci-
RadhakishanDamani, famously known as Mr. White and White, is the ety, Kopargaon was
founder andpromoter of D-Mart. He is basically a stock market investor, founded on — by —
stockbroker, a trader and also a mentor to biggies like Rakesh Jhunjhunwala etc.
Referred to as one of the finest value investors, he occupies 98th position in Forbes
listof wealthy people. He likes to maintain a low profile and let his work speak for
itself. Very few people know about him.
Radhakishan started his journey as a trader in Ball bearings. But after
tragic death of his father, he had to move on to joining his brother in their family
stock broking business. Having no knowledge of this completely new market, he
began as a spectator initially, and realized watching was not enough for him; so he
committed himself wholly in the field. In quite less time, he decided not to follow
general strategies. He started examining potential of products for long term rather
than assured profits in less time and in few years he became a strong power in the
Dalal Street. Continuing his rapid progress, he revolutionized himself into a value
Investor in the stock market with investments from giants like GE Capital
Transportation Industries ion, 3M India, Somany ceramics, VST Industries, etc.In
2001 he quit the market and announced his intentions of entering retail industry full
time with D-Mart.
D-Mart is a chain of hypermarket, supermarket started initially in Mumbai
in 2000 by R K Damani which is owned and operated by Avenue Supermarts Ltd
(ASL)., its parent company with its headquarters in Powai, Mumbai. D-Mart has
91 retail stores across India which is the third largest in India. It is a one stop
supermarket chain that aims to offer customers a wide range of home and personal
products under one roof. Each D-Mart store stocks home utility products - including
food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home
appliances and more at a great value. It offers value for money to its middle class
customers. D-mart operate in high traffic areas in three formats:Hypermarkets:
spread across 30,000-35,000 sqft,Express format: spread over 7,000-10,000 sqft
and lastly,Super Centers: set up in over 1 lakh sqft.
Adding to its sales is the lucrative discounts and promotions they provide
to their middle income masses. Their three major areas of focus are customers,
vendors and employees.
Business
Profiles of Successful • Customers: Almost all stores are owned by D-Mart itself, so the expenses
Entrepreneurs-I saved in rentals, relocation are thus offered to the customers as
discounts.All their stores are close to residential areas and not in malls.
• Vendors: D-Mart pays their vendors on the 11th day, industry standard
NOTES
being somewhere around 12-21 days, which puts them in good books of
vendors and avoid stockouts. Additionally D-Mart buys in bulk at low
price, stock high quantities of goods and sells it at a cheap price to its
customers.
• Employees:D-Mart employees are well paid, have flexibility and work in
a good environment. They hire raw talent, train them well and are given
freedom to operate without any pressure or targets.
D-Mart stores are located in relatively cheap areas which allow them to offer
products 6-7% lower than its competitors such as Spencer’s, Star Bazaar, More Store,
Hypercity. Also they deal with economic interiors and non-flashy layout which allow
them to be unbeatable such that no store can stand in a radius of 1km on prices by
offering low costs. Early days in their career in retail industry they believed in intense
learning and skimpy understanding mindset of the customer and on that basis they
planned the store layout, billing tactics, etc. They also believed in having good rapport
with their vendors and used to visit APMC market in Vashi, Crawford market in
Mumbai, just for the sake of interacting with them.In just a very small span of 13 years
they managed to make it a hit and certified model of business and in 2014, they had
reached a staggering 73 stores spread over Maharashtra, Gujarat,Hyderabad,
Bangalore, with a revenue of more than 4500 crores. Fast forward 2015 they have
now reached 6450 crores with a profit of 211 crores and counting…..
As of today D-Mart has 95 stores across 28 cities which
includes:Maharashtra: Amravati, Aurangabad, Ichalkaranji, Jaisingpur, Jalgaon,
Karad, Kolhapur, Mumbai, Nanded, Navi Mumbai, Pune, Satara, Sangli, Solapur,
Thane, Kalyan, Dombivali, Boisar, Karjat; Gujarat: Ahmedabad, Anand, Baroda,
Bhuj, Gandhinagar, MehsanaNadiad, Rajkot, Surat, Valsad; Telangana: Hyderabad,
Check Your
Warangal; Andhra Pradesh: Kakinada, Tirupati, Vijayawada; Karnataka: Bengaluru;
Progress
Madhya Pradesh: Bhopal, Indore, Ratlam; Chhattisgarh: Raipur
3. — is the founder
11.2.4 Alan Mamedi and Nami Zarringhalam
and promoter of
D-mart Today’s century is witness of tremendous revolution of Smartphone. Almost
everyone uses smartphone today which leads us to thinking of privacy and security
of the users today. We have to compromise for the usage like facing nuisances
and threat in many different forms. There are security breaches, and many sort of
problems like blank calls, missed calls, fake calls which trouble us daily.With
continuous innovation in science and technology, it is now possible to get information
about unknown numbers whichwas never possible earlier. As a result people now
feel safe, protected and more alert.
The man who brought us this comfort through his wonderful technological
advancement is Alan Mamedi, the founder of Truecaller along with
NamiZarringhalam who developed the software under the private company True
Software Scandinavia AB which is based in Stockholm, in the year 2009.
Truecaller is a global search engine which allows us to search for contact
details by querying through phone number or name. It consists of in-built caller ID
facility through which contact information is automatically searched in real time
as you receive a call along with add-on features like blocking the calls and has
Business
various functions which updates your phonebook and also integrates with social
media. The facility to show the caller’s true/real given name gives this app the Profiles of Successful
name ‘Truecaller’ and is used by over 100 million people all over the world. Entrepreneurs-I
Truecaller is available for phones with operating systems like Blackberry, Android,
Windows, iOS, Symbian etc.
NOTES
The Journey
Alan completed Bachelor’s degree in Science from KTH Royal Institute
of Technology with specialization in Computer Science.The career of Alan began
very early while he was still studying his Bachelor’s degree in the year 2004. He
set up ‘n’ of companies while he worked as a Salesperson at Phone House for 2
years. The very first establishment he set up was named as ‘Bidding.se’ in the
year 2006. It was a first website in Sweden for purpose of exclusive bid auction.
The policy of the product was associated to auctions in traditional way and that
was the fundamental basis of the product. The requirement was to have lowest
exclusive and unique bid for being the winner of any bid. They obtained the product
after three months of its beginning. In 2007, he started a new undertaking called
Möbeljakt.se. It was the biggest search engine in Sweden for home interior. He
joined as Chief Architect in two firms named Birdstep Technology and Corporate
Media Portal in year 2008 in Sweden for a brief period of two years. He then
moved to Babybjörn working as a Webmaster for around 5 months.
Later Alan created a web for staff reviews and employee assessment
named called Jobbigt.se which he asserted was biggest web or network. It was
founded in the year 2009.
How the Truecaller was born?
Being Smartphone nerds, Alan and NamiZarringhalam his ally always
used to talk about their mobile phone experiences and discussed it with thorough
interest, one of such discussions led to the initiation of Truecaller. They basically
observed that there was nothing which authentic or verified personal cell numbers
(White pages), though internet had discarded the phone directories that have
commercial numbers (Yellow pages). It was very easy to get information about
businesses and enterprises like their address, contact number but was very tough
to get trustworthy information about individuals. Also, Mobile companies do not
share the information about their customers, which worked well for their cause
and the fact that people today are mostly using cell phones. White pages which is
very important now a days never gave correct information on the internet or did
not have any. Even if it is available, there is no surety you get the right person. All
this led to brainstorming. Additionally intensifying were botherations (phone calls)
from some unfamiliar and unknown numbers. In 2009, this intensity of annoyance
was channeled into an amazing idea which was Truecaller, which identifies the
information of unknown caller.
Initially it was just an online forum with support for Symbian and Windows,
later Android & I-OS apps were also released. In the beginning truecaller was
released for testing purpose limiting it to a small private/closed group before making
it public. Shockingly there were around 10,000 downloads of the app in first week. It
motivated them greatly and inspired them to go further. They utilized their funds
very wisely and would mostly rely on word of mouth for the promotions and publicity.
Additionally they used simple techniques such as Virality Pack, five-point plan, etc.
Soon they could leave their respective jobs and decided to focus fully on Truecaller.
In 2012, more than 5 million people were using the apon different platforms like
Windows, Nokia Series, Blackberry, etc. India marked as the largest market in year
Business
Profiles of Successful 2014 and users increased to 100 million from 10 million in 2014. Now True caller has
Entrepreneurs-I 600,000 new users every week and total 300 million people are using it.
They also have partnered with tech biggies like twitter, India Nokia X,
Micromax, Karbonn which would instantly boost their business and extend their
NOTES
reach, resulting in investments of 80.1 Million Dollars from 11 companies like
Kleiner Perkins, Caufield& Buyers, etc.
Achievements!
True Software Scandinavia AB won ‘Company of the Year’ at Mobilgalan (2014)
Won the ‘Best Utility App’ at Gold Mobile at the annual Swedish mobile
Check Your awards (Mobilgalan) (2011)
Progress
11.2.5 Rahul Sharma
4. — is a global search
engine which allows Rahul Sharma, co-founder and CEO of Micromax Informatics. He brought
us to search for con- transformation to Micromax and is the reason behind company’s remarkable
tact details by query- development, resulting in Micromax being the 10th largest seller of Smartphone
ing through phone globally. He is the real motivating force behind Micromax in his 13 years of
number or name experience and has brought Micromax to creditable place in Indian mobiles handset
market. But Rahul believes that his true motivation and idol is his dad and the total
credit for his achievements is only because of his father. The quality of
perseverance, sincerity, hard work, humbleness was rooted in him by his father.
Rahul is a proud holder of two under-graduate degrees, Mechanical engineering
from RashtrasantTukadojiMaharaj Nagpur University and Commerce from University
of Saskatchewan in Canada. Apart from being an entrepreneur he plays badminton
and loves fast cars and has passion for Formula 1 racing. He is also globally famous
due to his marriage with famous actress Asin from Bollywood in 2015.
Early life
Rahul resides in lavish Mehrauli suburbs and for rides Rolls-Royce Ghost
car, but similar to most flourishing people in our country Rahul grew up in simple
surroundings. Being a child of a school teacher, he used to take local transport for
travelling like the rest of us. He has an incredible 13 years of work background
combined in marketing as well as sales. A mastermind in marketing, Rahul has
powerful background in technology, marketing and product goods and extensively
known for initiating latest brands and latest products. He has launched and directed
a series of profitable and successful promotions for brands famous worldwide like
– Microsoft Xbox, Procter & Gamble, Shaw Communication’s etc. For the On-
Demand Television Services of Shaw Communications Inc, Rahul worked as vice
president from February 2004.
He was in charge for Marketing and Corporate sales. He also supervised the
publicity and development of Shaw’s products On Demand such as On Demand Video,
PPV and Digital Pay TV. Before working for Shaw he also had worked in area of
Consumer Marketing, Brand Management and on Management level models and roles.
To bring a new significance and meaning to his life Rahul wanted to do
something incredible and unusual. This gave rise to the idea of Micromax.
The Birth
The thought arose when his father presented him a computer which made
an impact on Rahul, that it became the catalyst for Rahul to launch Micromax
Business
184 Entrepreneurship - VI software in 2000 with the help three keen friends of his.
The development… Profiles of Successful
Entrepreneurs-I
In the beginning Micromax was a software firm which offered enterprise
resources education on embedded platforms in form of training and gradually went
on to sell PCO’s (Public phones) for Nokia at first and later for Airtel. Accidently,
NOTES
an incident in year 2007, altered his perspective and gave him a thought. This idea
somehow changed his life totally. A PCO of Airtel in Behrampur village of West
Bengal was powered by a battery of truck. He was astounded and surprised to
see a PCO powered by truck battery. He observed that the PCO always had a big
queue of people for using the phone and the PCO owner made a huge quantity of
money. He was bewildered to perceive the profundity of innovation the man had
made to get together the unalterable circumstances, to run his business. This
inspired him and in turn made him grasp that – the successful are dreamers and
risk everything to pursue their dreams. So this changed the course of Rahul’s
company as he persuaded co-founders to alter their business model and working
of the company totally transformed. In the year of 2008, Micromax started
manufacturing mobile phones and selling them.
The Journey
The foreign companies like Nokia, Samsung and Motorola lacked the much
needed Indian essence and never satisfied Indian needs. To fulfill Indian
requirements Rahul gave what common Indian people desired with lesser costs
and ratifying the issues faced. So in 2008, Micromax launched ‘The Xtreme’,
their first mobile phone having battery life of one month. The first 10,000 phones
sold out only in 10 days and showed Rahul that what he was plucking the right
chords. The next idea Rahul got was from his cook, who would continuously swap
between three of his SIM cards. Rahul then came up with a phone which had
capacity for standby of two sim cards in parallel. By 2010, Micromax was one of
the largest domestic company of mobile handsets in India. Their very first
Smartphone was launched in 2012 named Canvas A100. In comparison with other
Smartphone this was about four times cheap without compromising quality. People
loved the Smartphone and this in turn led to their growth in the market.
Being simple and humble entrepreneur at heart Rahul casually walks in arbitrary
mobile store to pose as sales agent in crowded Indian market every month. For some
time he sells phones and asks the customers their requirements, usage habits.
Micromax went on to sign Akshaykumar& twinkle Khanna as their brand
ambassadors, which was followed by Hollywood superstar Hugh Jackan (The
Wolverine). Even ChitrangadaSingh endorsed their brand. Micromax is first company
in India to start their market in Russia in 2014. It has made remarkable progress in
2014-2015. It also launched tablets and LED TVs. Till end of 2015, Micromax defeated
Samsung and had become largest shipper of manufactured mobile phones in India.
In that year, Micromax had sold over 4.6 million phones, controlling the 22% market
of India. The company is growing tremendously by 39 % making it cross Rs 10,000
cro res revenue. Rahul is also planning to target Chinese customers, his motto being:
If they can come here and make sales, why can’t we?? Company has raised an
amount close to 88 million dollars from various investors.
Achievements…!
• Named in Fortune Magazine’s Global Power List of 2014
• Fortune Magazine’s ’40 under 40’ list of 2014
• GQ Man of the Year (Excellence in Business)’ in 2013 Business
Profiles of Successful • Micromax was listed as the ‘Emerging Company of the Year 2011’
Entrepreneurs-I according to India’s leading telecom magazine – Voice & Data.
• Awarded as Forbes Person of the Year 2010
NOTES 11.2.6 Chandrakant Gavane
Chandrakant Yadavrao Gavane belongs to a farmer’s family from Borgaon,
Kejtaluka, Beed district. He was born on 15th June 1956. His father was a police
Check Your patil and sarpanch and his mother was a housewife. He is the youngest amongst
Progress the four siblings. His father was very keen about education of his children. However,
two elder sons were not interested in studies. But Chandrakant and his immediate
5. — is first company
elder brother willingly completed their primary education and shifted to Ambajogai
in India to start their
for their secondary education in Yogeshwari Nutan Vidyalaya. Chandrakant’s elder
market in Russia in
brother got admitted to medical college and then Chandrakant decided that he
2014
would become an engineer.
After completing his SSC in 1973, Chandrakant went to Aurangabad for
further education and studied at SaraswatiBhuvanMahavidyalaya. He used to work
very hard to fulfill his dream of being an engineer. For the entire year, he never
went to his native place and his relentless efforts succeeded in fetching admission
to Government College of Engineering, Aurangabad. Unlike other rural students,
he opted for mechanical engineering and not the civil branch. He was very firm
and determined for being in business and he perceived mechanical engineering as
the suitable avenue to pursue business.
The principal, Government College of Engineering, Ganesh Rao always
used to motivate the students to opt for entrepreneurship career option. He used
to interact with the hostelites and talk about entrepreneurial opportunities. This
made a deep impact on Chandrakant and he developed strong-will towards setting
up a business. His entire expenses including fees were met through a money
order of Rs. 180 sent by his doctor brother every month. He declared his decision
about being an industrialist and his friends started teasing and making fun of him.
He used to neglect the comments, taunts of his friends and concentrate fully on
his study and factory visits at free time. Every Sunday and holiday, he used to visit
Chikalthana industrial area along with his friend Ajay Gandhi and both of them had
a discussion about the possibility of starting new businesses.
During the implant training at TAFE, Madras, Chadrakant along with his
friend decided to venture into the business of tractor trolley. However, the friend’s
family opposed the business proposition and due to lack of funds, Chandrakant
had to drop the idea and join Bajaj Auto Ltd. at Pune after completion of his
mechanical engineering in 1979. He started looking after automotive applications
at R & D department. He was also closely associated and fully involved in Design
and Development of two-stroke 80 cc motorcycle which was later launched under
commercial brand name bajaj M80 in Indian market. His team had also tapped the
possibility of installing single cylinder diesel engine on Three/Four and Two wheeler
base vehicles. Later on he resigned Bajaj Auto Limited and joined Greaves Cotton
Ltd. Lombardini division at Aurangabad in 1981. The Division of Greaves Cotton
Ltd. was engaged in manufacturing light weight diesel engine in collaboration with
Lombardini Italy. He worked on fitment of Diesel Engine on two wheeler and
three wheeler all over India. He also completed assignment of ‘In Board’ and
‘Out Board’ Motor Drives successfully with application of Lombardini engine.
However, he never dropped the wish and continued with the search of an
Business industry which could be established with least expenditure and his decision was in
186 Entrepreneurship - VI favour of cement products. He convinced his six friends including Parmar, Bhalekar,
Kaleetcto make the investment and assured them about success through his active Profiles of Successful
involvement in the industry. His own initial investment was his entire salary - Rs. Entrepreneurs-I
1800. In 1983, he resigned Lombardini division and started own SSI unit under
name and style of Deogiri Tiles at Chikhalthana, Aurangabad. In the meanwhile,
he got married to Ulka in 1982. NOTES
HirjibhaiBhanu had an attractive offer for Chandrakant for 25% partnership
in cement pipe industry with his own entire investment. Then Chandrakant prepared
project reports, analyzed the commercial viability of the business proposal. He
then told his partner to resign from his job, handed over Deogiri Tiles to him and
launched Trimurty Pipes in Nanded. He implemented Turnkey-consulting job for
starting of precast unit at Nanded. He had developed half round spun pipes for
field channel lining used in lieu of precise trapezoidal channels made on Minato
machine made in Italy due to which Government of Maharashtra had saved crores
of rupees and switched over to very good products for field channel in all over
Maharashtra for their irrigation projects.
He had started initial steps of new venture in Nanded under name and
style of Medhavi Cement Products. After office hours, he did feasibility study on
various products in SSI sector. He had also provided consultancy to SSI
entrepreneurs for preparation of project report. He had also provided consultancy
to start precast units and spun pipe unit in SSI sector. He has obtained ISI for the
products and running the same unit successfully till date. He had also undertaken
work of Guniting and Grouting and shot creating of old RCC water structures in
irrigation department.
He has been associated with:
• Medhavi Cement Products, MIDC, Nanded
• Medhavi Cement Products, Arjapur, Nanded
• MedhaviPrestressed Pipes (P) Ltd., MIDC, Nanded
• MedhaviPrestressed Pipes (P) Ltd. Krushnur, Nanded
• Abhijeet Engineers, MIDC, Nanded
• Shri SainathTyres, MIDC, Nanded
• Nath Spun Pipes (P) Ltd, MIDC, Latur
• Latur Concrete Products, MIDC, Latur
• Medhavi Constructions (Builders and Developers)
• Abhijeet Cement Products, Dautpur, Parli
• Jalna Hume Pipes Co., Jalna
• Bharat Spun Products, Jalna
• Medhavi Spun Concrete Products (P) Ltd., Waluj, Aurangabad
• Deogiri Tiles, MIDC, Aurangabad
• Sidhivinayak Precast Pipes (P) Ltd, Talegaon, MIDC, Pune (introduced
Dry cast Vibration technology for making precast pipes and allied products
first time in India in the year 2007)
Business
Profiles of Successful • AtharvaVibrocast Pipes Pvt. Ltd. Wardha (introduced Dry cast Vibration
Entrepreneurs-I technology for making precast pipes and allied products first time in
India in the year 2007)
• ManomayVibrocast Project Pvt. Ltd. Pichadgaon,Newasa, Ahmednagar
NOTES
(introduced Dry cast Vibration technology for making precast pipes and
allied products first time in India in the year 2007)
• Shri Sai Enterprises Martala, Loha, Nanded
• ParvatiVibrotach LLP, MIDC, Nanded
• Independent director on listed company SKY Line MillarsLltd. Mumbai
• Consultant of Millars Concrete Technology, Mumbai (introduced Dry
cast Vibration technology for making precast pipes and allied products
first time in India in the year 2007)
All the factories were working with conventional technology and in search
of advanced technology he travelled in East Asia, Europe and he got Pidisha
technology from Denmark. He attributes his success to his quest for innovation,
support of his wife and children. While there was criticism about his craze for
innovation, change, new technology; he acknowledges with gratitude that always his
family stood for him and showed their undivided faith and belief in him and his ideas.
R & D achievements
He has designed, developed and manufactured on commercial scale:
• Precast cut-throat Flumes
• Precast Parshal Flumes
• Precast drop
• Village bridges
• Precast outlet gate
• Precast Diversion box
• SFRC – Manhole Covers and Frames
• Precast Manholes for UGDof
• Precast doorframes and Precast Lintels
• Designed and developed road dividers/Safety Barriers
• Developed “BAMBOO” as reinforcement for Precast item but not
implemented commercially
• Designed and developed slotted pipes required for filtration Gallery
• Designed and developed testing equipment required for Precast Concrete
pipe in House like 3-edge load bearing test machine/hydrostatic pressure
testing machine
Awards/achievements
He received District Industry Award of Nanded district in 1987 and of Jalna
Business district in 1990. He had been a member of task Force and Steering Committee for
Science and Technology project under Ministry of Science and Technology, New Profiles of Successful
Delhi from 1988 to 1993. He has been working as a member of CED-53 for Entrepreneurs-I
specifications for Bureau of Indian Standards since 1998 till date. He has been working
as a president of Spun Pipes Manufacturers Association of Maharashtra since 1998
till date. He is ex-member of Prime Minister RojgarYojana (PMRY) Nanded district NOTES
Task force Committee. He travelled entire Europe for industrial study BAUMA-98
(Industrial Exhibition) and visited many precast manufacturing plants. He travelled
Thailand, China, Taiwan, Laos and Vietnam to study manufacturing of precast pipes.
He has been honoring various positions as the Chairperson in SantGadage Baba
AyurvedicPratisthan, Director of SGGS Institute of Engineering and Technology,
Secretary of Nanded Chamber of Commerce and Industries (2006-14), Special
Executive Officer appointed by Government of Maharashtra from 2001 to 2005,
Chairman, Reception committee for DIPEX, State level Exhibition in technical field, in
Feb. 2004, Senate Member, SRTM University from 2001 to 2005.
11.3 Summary
Check Your
Personality, social and cultural factors are related to entrepreneurial behavior. Progress
Self-confidence, need for achievement, risk bearing attitude, determination, creativity,
persistence, optimistic outlook, versatility characterize entrepreneurial personality. 6. Chandrakant
started his first SSI
unit — in —
11.4 Key Term

• Credit society: A co-operative society that lends money, collected
from its members, at low rates of interest

Questions
1. Identify the potentialities of Hari Menon.
2. Enumerate the qualities and strengths of kaka Koyate.
3. Identify the factors responsible for RadhkishanDamani to become an
entrepreneur and the contributing factors for her success in the his venture
4. Review the strengths, weaknesses and opportunities of the Rahul Sharma.
5. Examine the true qualities involved in Alan Mamedi and
NamiZarringhalam as an entrepreneur.
6. Identify the external and internal factors responsible for the prosperity
and growth of the businesses developed by Gavane
Exercise
1. Try to meet any one of the above entrepreneurs and discuss with them
about the entrepreneurial journey
Business
1. ————— is the co-founder and CEO of Micromax Informatics Entrepreneurship - VI 189
Profiles of Successful i. Rahul Sharma
Entrepreneurs-I
ii. Kaka Koyate
iii. RadhakishanDamani
NOTES
iv. Alan Mamedi
2. ——— hails from a middle class family
i. ChandrakantGavane
ii. Kaka Koyate
iii. Hari Menon
iv. All the above
Answers
Check Your Progress
1. online retail website, Hari Menon and his friends
2. 11th may 1986, Kaka Koyate
3. RadhakishanDamani
4. Truecaller
5. Micromax
6. Deoiri Tiles, Aurangabad
1. i
2. iv

http://www.yosuccess.com/success-stories/alan-mamedi-truecaller/
http://www.yosuccess.com/success-stories/hari-menon/
http://www.yosuccess.com/success-stories/radhakishan-damani-dmart/
http://www.yosuccess.com/success-stories/ritesh-agarwal-oyo-rooms/
www.samatapat.com/
Business
UNIT12 : PROFILES OF SUCCESSFUL Entrepreneurs-II
ENTREPRENEURS - II
NOTES
Structure
12.0 Introduction
12.2.1 Vikas Rajurkar
12.2.2 Mukund Kulkarni
12.2.3 Priya Joshi
12.2.4 Milind Kank
12.2.5 Priti Wadhwa
12.3 Summary
12.0 Introduction
You are cognizant about history of entrepreneurship in India, role of
entrepreneurship in economic development, role of government in entrepreneurship
development, institutional set up for MSMEs etc. You have studied in detail about
entrepreneurship education, ethics and social responsibilities of entrepreneurs,
recent trends in entrepreneurship including intrapreneurship, social entrepreneurship,
rural entrepreneurship, women and entrepreneurship, youth entrepreneurship,
service entrepreneurship, international entrepreneurship, family business and
entrepreneurship. You have also become familiar with the conceptual framework
of MSMEs with a special focus on initiation and procedural formalities, government
rules and regulations along with various details such as project identification and
selection, types and sources of finance, different forms of organization. Further,
you have become acquainted with the challenges and opportunities for MSME
sector, business plan preparation, causes of sickness, remedies as well as
rehabilitation measures along with business crises. Now, you read the following
profiles of some successful entrepreneurs so as to fulfill the following objectives.

• Be aware about some successful entrepreneurs and their enterprises
• Learn about the entrepreneurial journey Business
Profiles of Successful • Learn about the difficulties faced by them and how they overcome it
Entrepreneurs-II
• Know about motivating factors of the entrepreneurs
• Be familiar with the philosophy of the entrepreneurs
NOTES
• Appreciate the achievements of the entrepreneurs
• Explore the traits of successful entrepreneurs
• Identify the winning strategies of successful entrepreneurs

Profiles of some successful entrepreneurs are presented below:
12.2.1 Vikas N. Rajurkar
M/S Microbax (India) Ltd., Hyderabad
Family background
Mr. Vikas Rajurkar,Managing Director of Microbax (India) Ltd., is a first
generation entrepreneur, coming from a middle class family with academic culture.
He did B.Sc. from Hyderabad and MBA from Satara. His father is Professor
Emeritus in Political science serving Osmania University, Hyderabad. His mother
is M.A. English and a housewife.
Journey so far:
The initial journey started with a pharmaceutical distribution business,
development of residential apartments, and then venturing out to establish a 100%
Export Oriented Unit (EOU) for manufacturing garbage bags and shopping bags
for export. This unit, which had sophisticated imported machinery, failed to do
well due to various reasons which were beyond his control. He then entered
construction industry and did well. However, he always felt that his talents were
underutilised and he could do more.
He did not lose his focus and was patiently in search of a project with
innovative and expansion possibilities. He came across this idea of manufacturing
probiotics through his close friend who had experience but neither equity nor financial
and marketing background. Mr. Vikas conducted preliminary feasibility study and
market research. Then with the help of his friend who was a technocrat and a
senior Chartered Accountant, established a Private Limited Company and set up
Microbax Company which is now a Limited Company with the Capital Investment
of Rs. 1500.00 Lacs and turnover Rs.1800.00 Lacs. The Company expects to
double the turn over within a span of three years.
Details about the enterprise
Microbax (India) Ltd is a leading manufacturer of probiotics (“live micro-
organisms which, when administered in adequate amounts, confer a health beneût
on the host”) for Human health care, Animal health care, Bioremediation for waste
water treatment, Aqua culture and products based on beneficial micro-organisms
for Agriculture.
The sophisticated facility is located near Hyderabad, spread over in 8
Business
192 Entrepreneurship - VI acres. The probiotics are produced by submerged fermentation technology using
computer controlled fermenters. Microbax employs over 120 people and exports Profiles of Successful
its products to America, Europe, Australia and several other countries. The in- Entrepreneurs-II
house research and development facility is recognized by Department of Industrial
and Scientific Research (DSIR), Government of India and one of its projects to
produce innovative probiotics for women’s healthcare has been funded by the NOTES
Department of Bio-technology, Government of India. The product after successful
completion of clinical trials at All India Institute of Medical Sciences (AIIMS) is
ready to be launched. The use of this product will benefit a large number of women.
Motivational factors
It was always a passion for him to do something innovative and big for personal
growth. He used to dream about providing employment to several people and offering
products to people which would benefit them in several ways. Setting up a project for
manufacturing of probiotics was always in his mind since the college days as he learnt
from his friend that there was only one manufacturer in India and that the market was
growing. The friend was working as a microbiologist in the company and had fairly
good knowledge about the fermentation technology used in the manufacture of
probiotics. It was with the help of this friend -who quit his job - and two chartered
accountants with vast experience, it was decided to start Microbax. Being an innovative
project, IDBI not only lent term loan but also participated in the equity.
Vikas says, “The inspiration to start something on my own came when I
was in 10th class from a close relative Mr. Kumar Deshpande who had started a
unit to manufacture aromatic oils soon after completing his MBA”.
Difficulties, Hurdles
During the period between 2007 and 2009, the company faced a severe
problem of contamination and every batch had to be drained. There was no
production possible. The sales dwindled and the technical partner left which brought
about serious crises. Mr. Vikas sorted out the problem of contamination through
abstract sense and the production and sales was normalised.
This period saw liquidity crunch and the Bankers started pressing for
repayment. But since the production and sales were normal and with improved
quality the turnaround started and by 2010, the Company approached Bank for
One Time Settlement of Loans and the loans were fully repaid.
Achievements
A company which started with a single product has grown into company
having many products for various applications. Our products for agriculture help
farmers reduce their dependence on chemical fertilizers, pesticides and fungicides
and enhance the quality and the yields .The farmers are able to export products
with no pesticide residues.
Microbax India Ltd., was funded by DSIR for in-house research for
innovative probiotics after due scrutiny of technical, technological and domain
expertise of the Unit. The Company has completed the project successfully in the
given time frame and the products are being launched shortly by DSIR.
Philosophy and Message to aspirant entrepreneurs
In the words of Vikas, “It has been my experience that doing business with
integrity and striving for excellence always pays in the long run. Another lesson has
been that some tasks may look very difficult initially but eventually become easy to
accomplish as Gandhiji had said “Find purpose and the means will follow.” Business
Profiles of Successful 12.2.2 Mukund A. Kulkarni
Entrepreneurs-II
Founder Director Expert Global Solutions (EGS)
Brief about EGS
NOTES
Expert Global Solutions is a Pvt. Ltd. founded by four first generation
Check Your entrepreneurs at Aurangabad. The way company has four pillars of founders, it
Progress has four business verticals such as; Engineering Design, Embedded Electronics,
SAP Implementation and IT Infrastructure Solution. EGS has Head Office at
1. Microbax (India) Aurangabad and offices at Pune, Atlanta USA and Munich Germany. The Company
Ltd is a leading manu- has a strong and dedicated employee base of 450+ employees. The Company has
facturer of — India, Germany, Netherlands and USA as ‘Business Focus Territories’. EGS is
Maharashtra IT Award Winner in the year 2007 and ISO: 9001 certified organization.
Personal background
Mukund is born and bought up in a small village, approximately 60 kms
away from Aurangabad. After completing education till 10thStd in that village, he
moved to Aurangabad to pursue Science stream with an ambition to become an
Engineer. He completed his 12thStd in 1982 and completed degree in Mechanical
from Government College of Engineering, Aurangabad in 1986.
Mukund’s father retired from his services in 1986, hence instead of pursuing
further education, he joined Bajaj Auto Ltd. He worked with Bajaj Auto Ltd. for
almost seventeen years in different capacities on different challenging projects.
Bajaj Auto Ltd. gave him sound Technical, Managerial, Behavioral and Value
System Foundation. With this, he leant to manage various opportunities and
challenges in his business.
Family background
Mukund’s mother and father were teachers. Incidentally, no one from his
family and even from his cousin family pursued business. It was very natural
because normally middle class families look at stable service as a ‘Dream’ and a
means of survival. However, one thing was certain that irrespective of being in a
small village, his parents encouraged him for overall personality development; be
it Study, Sports, Debating, Social Work and even contesting school and college
elections. This helped him a lot in the process of developing the leadership quality
during his higher education, job and even his professional business and social work.
Motivating factors
Mukund says, “I was fairly successful, satisfied and progressive in my
job. During the job, I got appreciated for excellent ‘Professional Exposure’ as well
as ‘Career Growth’. On this background, it was very difficult for me and my
family to take the decision of leaving the job and starting the business.
However, Entrepreneurship was very strong desire at back of my mind.
My college classmate and now my partner Mr. Prashat Deshpande, who is the
first founder of Expert Global was after me for almost three years to leave the job
and join the business. Finally, my “Entrepreneurial will” won the battle and I ‘Quit’
the job and started the business with my other partner.
Why this business line
Business
While working with Bajaj Auto Ltd, I got an excellent exposure to Profiles of Successful
manufacturing, product development, project management and systems. As a Entrepreneurs-II
Group, EGS had an ambition to grow its Engineering Design Business and for this
activity, my experience was very relevant and useful. Further, we partners had an
ambition of doing business internationally with large corporates and my corporate NOTES
experience of Bajaj Auto Ltd was complementary for this ambition. With above
aspects in mind, I decided to work in the business line of ‘Engineering Design
Services’.
Achievements
“When I joined Expert Global with my college friend, this company was
executing ‘IT Business’ and Engineering business in a very small way. When I
joined the organization in the year 2004, we were 47 member company.
• Immediately, after my joining the organization in 2004 - we decided to
start company in USA.
• In 2006, we started business in Germany.
• In 2009, we started business in Netherlands.
• Then after managing tough challenges of recession in 2009-10, we
acquired a company in India in 2011.
• In 2015,we started a company in Germany
• In the whole process, we moved from 47 People Company to 450
Member Company in 12 years”.
We are proud to mention that, our 80% employees are from Marathwada
Region and with their participation, we could execute International Business. It is
imperative to mention that, local customers provided us opportunity and strongly
motivated and supported us to consolidate in the International Market.
Difficulties / hurdles
“2004 to 2008 was a very tough and challenging period. For a Start-up
Company and that too by first Generation entrepreneurs with a middle class family
background like ours, ‘Finance’ was the biggest challenge. This challenge was
very serious on the background of our ambition to establish company in USA.
However, our finance problem was addressed with the help of kind hearted friends
and an aggressive and extremely supportive bank officer. Thanks for the trust
shown by the bank officer on our ability.
Another challenge for start-up was ‘Attracting talent’; being small
company, less pay package, base at Aurangabad was disadvantage as against
strong attraction of Pune in young talents. However, we grew with the help of
available committed local talent and our ability to train and groom team members”.
Strategies to overcome various challenges
“As explained earlier, for start-ups, there are limited choices and hence,
our strategy was quite straight forward:
1. Self-Involvement, Commitment, and Hard work should be 100%
2. Team work, Trust and Faith on partners is key to success
Business
Profiles of Successful 3. Irrespective of Profit or Loss, strive hard to meet expectations of
Entrepreneurs-II customers
4. Train and Groom available talents”
NOTES Entrepreneurial Values
EGS believes in following values:
1. Customer is Prime
2. Trustworthy Work Environment
3. Continual Improvement
4. Equal Opportunity to All
5. Social Commitment
Contribution to the community
EGS focuses on ‘Education and Environment’ area for its social
commitment. Under this commitment, some of the executed projects are as follows:
1. Establishing Training Centre for Students in Slum Areas
2. Rain water harvesting projects in drought prone areas
3. Supporting NGOs for ‘Clean and Green’ Industrial Area
4. Supporting NGOs for ‘Clean and Green’ Schools
Message for students
To quote Mukund, “Everyone has a dream to be owner of his /her own
business but this is not possible and feasible for everyone. However, one should
not lose his/her heart. Whether it is your own business or whether you are an
employee, ‘Ownership Mindset’ is the most important. Ownership Mindset means
‘Owning the Responsibility of doing the Things and Owning the Failure if the
Check Your Activity is not satisfactorily completed’.
Progress
I would like to share one more thing with students. Apart from being an
2. Enlist the entrepre- ‘Owner or Employee’, everyone is citizen of India. We, as an Indian, are poor in
neurial values of EGS ‘Civic Disciplines’. Be it ‘traffic sense on the roads’ or ‘cleanliness’ or ‘taking
care of public properties’, we are poor in these aspects. I urge my student friends
to keep our country ‘Clean and Disciplined’ and surely you can contribute to it.”
12.2.3 Mrs. Priya Pramod Joshi
Ruchi Products, Jalna
Family background
Mrs. Priya Pramod Joshi was born as Miss Ranjana Prabhakar Kulkarni
at Khamgaon. Her father worked with Maharashtra State Transport Corporation
and nurtured his three daughters and two sons. It was a middleclass culture where
values carried more weight than the commerce. She graduated in Commerce and
worked to support the family.
She got married to Pramod B. Joshi in 1990 who is a Civil Contractor.
Since she was used to putting up productive work she got bored sitting at home
Business
without engagement. However, after giving birth to a son and a daughter; she
decided to either go for service job or have some business enterprise to keep her Profiles of Successful
busy and productive. Entrepreneurs-II
Three meaningful incidences occurred during 1996: one - she went to her
relatives in Pune where she came across properly packed and tasty ready to eat
NOTES
food products, which she instantly liked, two - she came across Mr. Datta Muley,
project Officer of Maharashtra Centre for Entrepreneurship Development (MCED)
at Jalna who inspired her for having her own set up for manufacturing of food
products, and the third incidence was her school friend who had similar inklings
and she had come to reside adjacent to her house in Jalna. Both the friends joined
together to start producing one item of food product without any machine or
assistance - human or otherwise.
As the magnitude of enterprise was too meagre and non-profitable in the
first year her friend decided to quit and thus was born “Ruchi Products” - a
Proprietary Concern of Mrs. Priya Pramod Joshi.
Journey so far
Ruchi Products was established in 1996. The initial journey was close to
hopeless due to many administrative hurdles and non-cooperation from various
governmental agencies as well as dealers and customers in the market. The first
year turnover was Rs. 5,000/- without any worthy profit.
She went door to door with her packets and received lukewarm response
from the households. Ready to use food as well as ready to eat products were not
so much in demand as now. She did not have bigger range of products as now.
She made and sold ready to use food products usually needed during fasting.
She realised this small range problem and with the assistance of Bank
increased the range of her products and went for good packaging. She also got a
good response from the dealers who started picking up and repacking up her produce.
She has also started “Ruchi Caterers”- a catering set up to boost her
sales which is doing very well independently beside increasing sale of Ruchi
Products.
She has inadequate premise as of now as she does all the production at
home where she cannot install state of art productive machinery. So she has decided
to expand her activity at Indewadi, a village near Jalna where she has purchased
adequate land for her project. She has in her permanent employment two female
workers and as per need she engages casual female workers as may be required
which goes up to seven many times.
She has attended many Exhibitions at Regional, State and National levels
to promote her products. ITF Exhibition at Delhi, Mahalaxmi Saras at Mumbai,
International Exhibition in Kashmir and Regional Exhibitions at Nagpur, Pune, Beed,
Parbhani, Nanded and Aurangabad.
Ruchi Products has reached a turnover of Rs. 20.00 Lacs and with the
new set up coming in existence she is looking at Rs. 50.00 Lac turn over in next
three years.
Details about the enterprise
Ruchi Products is engaged in manufacture of Food Products in the form
of ready to use and ready to eat packaged items. The range is very big and varied:
Business
Profiles of Successful From pickles to potato items, from modaks to fasting food products, masala to
Entrepreneurs-II chutney and from kurdaya to chikki.
As on date it is a micro enterprise with basic machines such as pulveriser, mixer,
and kneader. Most of the process is manual.
NOTES
As she wants to ensure quality she makes all the purchases and uses her
own recipe for making the products and get it done from her workers in clean and
dust free premise.
Motivational factors
It was her own restlessness for no engagement initially but she could not
visualise how she could engage herself in productive and profitable manner. MCED
gave her initial vision and motivation. Her friend also motivated her by offering
her to join. Her husband assisted where ever he could diluting her anxiety and
following up with the departments for licenses, approvals and bank assistance.
The entire family stood by her in the time of crises. A few customers suggested
changes in the taste and range and motivated her.
Difficulties, Hurdles
In the words of Priya, “It is very difficult to set up an enterprise, especially
a manufacturing enterprise as the government offices are least interested in
promoting entrepreneurs. There are red tapes, non-cooperative and ill-informed
officers and the time frame to get licenses, approvals and consents is unpredictable”.
This may frustrate the promoter.
It is more hectic for a woman entrepreneur to run from pillar to post and
post to pillar to get the work done in government office, which discourages her.
Achievements
Her best achievement is that she sustained the initial crises and put her
enterprise on sound footing. She is recipient of many successful entrepreneur
Check Your awards, from Roatary Club, Maharashtra Center for Entrepreneurship
Progress Development (MCED), Peshava Yuva Manch, World Women’s Day, Purohit Sangh
3. Ruchi Products is and Private banks.
engaged in manufac- Philosophy and Message to aspirant entrepreneurs
ture of —
• “No work is small if carried out sincerely and persistently it will grow.
4. Ruchi Products
was established in — • Develop core competency in given enterprise to sustain it.
• Help and guide others so that others help and guide you.
• Always keep in mind dignity of labour”.
12.2.4 Milind Kank
It is believed that what a person will become can be known from his or
her childhood characteristics but there are certain exceptions to this belief. Some
kids are born intelligent and their grasping capacity is very high. They are intelligent
and always top in their respective fields. Are these kids successful in their post
educational life? Mostly the answer is ‘No’. Generally these are the ones who
take up some kind of job and are satisfied with whatever meager progress they
make pertaining to their individual jobs. In contrast to this category some kids are
truant, vagabond, naughty and not so brilliant. They don’t give attention to their
Business
Entrepreneurship - VI studies and barely pass in their exams. They somehow manage to graduate - that
198
too in so called low profile courses from Arts and Commerce streams; and so they Profiles of Successful
won’t make much progress in life is an assumption in general. But is that a reality? Entrepreneurs-II
No, in fact they make tremendous advancement in their life afterwards by becoming
businessmen, sportsmen or artists. Milind Kank is from this category who is known
as a flourishing and successful entrepreneur today. He is the Founder and Managing NOTES
Director of Yeshshree Group which is situated at Aurangabad. This business group
has turnover of more than Rs. 300 crore. Today this truant boy has given
employment to more than two thousand people directly and indirectly. His life
journey from “a truant little boy” to “A Successful Entrepreneur” is really a very
exciting and inspiring story.
First phase: 1961-1980
Milind Kank was born on 30th January 1961 in Pune in a poor, middle
class Brahmin family. His father was an electrician in State Transport Corporation.
They were three brothers and he was the middle one. The salary of his father was
insufficient and meager. So his mother joined some small industry as helping hand
to his father in satisfying the needs of the family. Working persistently and taking
every task to completion relentlessly was something Milind has learnt from his
mother.
Milind was a student of Modern High school. He was a very dull student.
He was a vagabond and never concentrated on studies. He barely managed to
pass each grade and highest percentage he ever got was 52%. His mother filled
form for 10th class exam. His teacher was doubtful whether he would pass 10th
exam or not and told him to take back the application. But Milind passed exam
with an aggregate of 36% in year 1975. He passed 12th boards examination in
1977 and cleared Bachelors in Commerce in 1980.
With such a poor educational background who would give job to a ‘third
class B. Com.’ graduate. At that time he declared at his home that he would not
do a job. As a result everyone from his family was worried for him. Everyone
pondered about his future and mostly about his source of income. But he had very
strong backing of his mother. His mother believed in him and always encouraged
him. Milind’s wife also along with his mother has a huge share in Milind’s success
today. He acknowledges with gratitude the firm support and backing of both of
them for him and for his venture.
From childhood it was in his mind to support his family by doing some or
other business. Every year the palanquin of ‘paduka’ of the great saint Tukaram
while going to Pandharpur would take stop at Gholeroad. Milind would sell small
bunches of flowers. He would get Rs. 2 to Rs.5 through this sale. This small business
had no raw material cost because the flowers were collected from garden of
Fergusson College. He used to sell firecrackers, lanterns in Diwali to earn money.
He developed a habit to find ‘daily profit’ in his business. This habit turned out very
useful because it helped him in finding out the growth of his business on daily basis.
As Milind grew up, he observed that people don’t give much prestige to the
ones who are in business. Nobody thinks about marrying their daughters to businessmen.
Girls also mostly prefer salaried employees as their life partners and not businessmen.
Second phase: 1980- 1988
Milind’s uncle L.S Limaye had a workshop. Limaye uncle had a small
fabrication business in which he made trusses for factory shades and grills for
windows. At that time his uncle had biggest clientele in his area of work. Main
Business
work was of cutting and welding. His mother started sending him to work for his
Profiles of Successful uncle. He would do whatever work he was given there. His uncle and mother
Entrepreneurs-II encouraged and supported him. His uncle discerned Milind’s entrepreneurial abilities
and gave him an opportunity to work with him. In this period he got to know the
importance of labour incentives as they would get a free cup of tea if they earned
NOTES more than twenty rupees each day.
Fabrication needs understanding of engineering drawing. Milind learned this
drawing under supervision of his elder brother. And he also did a course in drawing
and blue print reading from St Joseph Technical institute in 1985. Additionally he did
a course of Secretariship and Public relations in 1986 from the Institute of Management
Development and Research (IMDR). It struck to him that these small courses turned
out more useful rather than his B.Com. and that training is very important. He did a
course in IIM Ahmedabad in 2002, a course in production management in 2003 in
Japan and a course in exports in Netherlands in 2009. Due to these courses his
knowledge remained updated. He opines that such types of skill based courses are
really helpful in life rather than traditional routine courses like B.Com. M.Com.
According to him, training is more important than formal education. He frequently
participates in various technical and other conferences and seminars.
He worked many years for his uncle. But funnily he is still puzzled whether
he was a worker or a partner or owner of the workshop. At first he got Rs. 150
per month but later his monthly income increased to Rs. 15,000. His elder bother
used to earn Rs. 250 per month. So it was expected of Milind to bring the same
amount to home. So to earn additional 100 rupees he used to be in search of
various other works. One such contract he got from his friend K. D. Joshi to
provide special type of papers by cutting them in a particular shape. He brought a
‘Photo cutting machine’ for Rs. 65 and this was his first capital investment.
Milind’s uncle had a specialty which made Milind an independent person.
His uncle would put responsibility on his shoulders and would say, “You decide how
to do this work but our company should not suffer any losses.” That is why Milind
got freedom to complete the work in his own way. He realized that he enjoyed doing
such work and in this manner he developed an ability of taking decisions and
implementing them. He learnt that wrong decisions can be corrected but if one
doesn’t implement a decision then there is no way of evaluating the correctness of
decision and of learning. He took advantage of his uncle’s management techniques
and that is why in thirty five years he never faced failure. His company never faced
any ill consequences of recession or labour strikes. He imbibed a quality of taking
responsibilities. He strongly believes that even if every responsibility brings a series
of obstacles after it; every obstacle brings an opportunity of learning something new.
While working with his uncle, the entire administration of fabrication shop
was delegated to Milind by his uncle. This responsibility included buying raw material,
delivering finished products, billing, typing - everything. He met with many leaning
experiences while discharging these responsibilities. Once the trusses made for a
factory shade measured 60 mm less than the specifications. This was found to be
due to faulty measuring tape. And once architect rejected the grills of window because
it had small bulge where it was welded. To correct this, they had to mount the
frames on the milling machine to remove the bumps. He also had a stint with a
business of steel hardware trading i. e. Trimurty Engineers and also ran ‘Yashwant
Udyog’ - the manufacturing unit of his uncle. This is how he was getting enriched as
an entrepreneur with varied experiences, versatile activities and businesses.
Phase 3: 1988-1996
Business
In 1988, there were two big changes in his life. He got married and that he Entrepreneurs-II
shifted to Aurangabad. Limaye uncle had one unit in Aurangabad which was under
uncle’s son. Suddenly he decided to back out and the entire responsibility of that
unit was given to Milind. When he came to Aurangabad, the unit was very small.
The unit had 1000 square feet area, 20 workers and annual turnover of Rs. 10 NOTES
lakh. Here he got an opportunity to use his skills freely. The unit grew to 3000
square feet and 6 crore rupees turn over annually. He brought Traub Automatic
machinery and learnt to get benefits from Government schemes. During this period
Government had started a scheme for women entrepreneurs. Taking advantage
of that scheme, Milind started another unit under the name of his wife. It was a
great going but still he was not happy. Something was missing.
Phase 4: 1996-2013
In 1996, Bajaj started manufacturing auto rickshaws. They decided to
manufacture its body part called as ‘bucket’ from another company. They started
searching for experienced vendors who made this part. Limaye uncle used to
make this part for Greaves Garuda Company. So they turned to his uncle for
making this part. Uncle at first readily accepted to do it but afterwards declined as
they offered only Rs 1850 which was very less than Rs 2250 which uncle had
asked for. Uncle had rejected because the production cost itself was Rs 1650. But
Milind took the challenge of providing these parts at Rs 1850.
But where would he create them? This manufacturing needed a different
platform. After creating a project report, it was found out that project cost was Rs 1.1
crore. After getting loan of Rs. 90 lakhs from bank and borrowing remaining amount
from friends and relatives, Milind established the manufacturing plan along with a tool
Check Your
room for making fixtures. The plant was a huge success. He repaid loan of bank and
Progress
his friends in less than two years. At first there was production of 1 tonne and today it
has grown to 100 tonnes. There was huge increase in the plant’s turnover. Milind with 5. Who supported
accompaniment of worthy people made it possible. They always tried to bring in new Milind in his initial
technology and increased the production of the parts. In 2006, Milind took over TEPL struggle?
unit. In past nine years, the turnover has increased by ten times.
6. Write in short about
Phase 5: After 2013 the social work of
Milind.
According to Milind, for sustaining business, growth is a must. He is always
busy with identifying new opportunities for further growth. Now Milind’s industry 7. — is the Founder
has started a software development business for the manufacturing unit. Also they and Managing Direc-
have taken up to make undercarriage parts for excavators of Larsen and Turbo tor of Yeshshree
Company. He has entered into social work also through an association with several Group which is situ-
institutions such as Arya Chanakya School, Aurangabad Management Association, ated at Aurangabad
Hedgewar Hospital Blood Bank, Navjeevan School for Special Children etc.
12.2.5 Priti Wadhwa
Born and bought up in Ulhasnagar, Mumbai this is a story about a woman
who from an ordinary housewife turned into a successful entrepreneur and nurtured
her three children as dynamic youth entrepreneurs.
Married in 1981, Priti Dilomal Valecha who then became Priti Udhawlal
Wadhwa came to Nanded, Marathwada and here she stepped into a totally different
lifestyle which was unexpected for her. Her husband had a job at State Bank of
India as a business executive. After marriage, Priti, with a degree of Bachelor in
Arts, was just a housewife. Adjusting in Nanded which was much more backward
in 1980s was not easy for her as she was a daughter of a businessmen from Business
Ulhasnagar and she was living life in king size. Her father faced downfall in business Entrepreneurship - VI 201
Profiles of Successful and was diagnosed with jaundice. She had to marry at the age of 21 as she was
Entrepreneurs-II the eldest of all siblings - three brothers and two sisters.
Nanded was a very small town. It was not well developed in those days.
There were no landlines, no auto-rickshaws, even no ‘pakka roads’. She started
NOTES
learning new things like baking, tailoring, painting. She did a fashion designing
course and that helped her to stitch clothes at home. She started tailoring. Whenever
she went to her father’s place she used to bring some readymade clothes which
were new in trend in those days and sell in Nanded and she got good response.
Due to her maternity she had to stop tailoring and she got involved into her children
– two girls and a boy.
With her husband’s salary they could hardly fulfill their daily needs. It was
difficult to cater to the needs like higher education of children and their marriages.
And Priti was always in search of profitable business opportunities. After the birth
of her third child in 1997, she noticed that new businesses were emerging in Nanded.
With her inner business instinct, Priti sensed the favourable business environment
and wanted to grab the opportunity at her earliest. She expressed her wish to her
husband and family about starting a business of selling readymade kids wear through
a store. However, no one liked the idea. Everyone from her husband to siblings
were apprehensive about the idea. They told her that, ‘this is Nanded not your
Mumbai where a lady of our community is allowed to sit in a shop’. However, this
didn’t stop her and she declared to her husband ‘whether you are with me or not
I am going to take this step and I know one day you will be proud of me.’ She
moved on and started the search for a shop.
In 2000, she started her first kids wear store named Hari Om Collection in
a rented space at vazirabad in the heart of the city. She could not get shop in front
lane; her shop was second last in the middle lane. As everybody was against her
decision she didn’t have her own money to invest. She arranged for bank loan of
Rs. 25,000 and bought stock from wholesalers of Ulhasnagar by herself. She
knew that things were not going to be easy. After two months, she incurred a loss
of Rs. 20000. Stock of only Rs. 5000 was sold. And she had to bear a lot of
criticism about her business skills and knowledge about the market. People who
didn’t even know about the basics of business would laugh at her.
But the movie had just begun and it was a long way to go. She knew that
the present place was not convenient for customers and she found another shop in
a new market and started JS Collections on 2nd August 2000. There was frequent
flow of customers to her shop and it was a good going. She observed hesitation of
ladies while purchasing lingerie and then she shifted her business from kids wear
to ladies garments and changed name of the store from JS Collections to JS Ladies
Garments which dealt with lingerie, gowns, night wear and fancy wear.
Being from Ulhasnagar she was well familiar with the wholesale market
and 90% of the wholesalers were from her own community i.e. Sindhi. She didn’t
find any difficulty in communicating with them and she bought a very good range
of ladies lingerie and cotton gowns. Due to hot summers in Marathwada she
bought cotton based garments only. She didn’t have any cash in hand. She could
manage just Rs.10, 000. She requested wholesalers to allow credit for at least a
month or two. Some of them agreed to her but some didn’t. Anyhow she could get
adequate stock. She believed in the saying ‘Where there is a will there is a way’.
Being the only female shopkeeper in the entire market other shopkeepers
would see her with weird eye. They would tease her and annoy her. But she kept
Business quiet and didn’t react. She was sure that that all the nuisances will be over by
seeing her efforts and will to do something. She wanted to grow her business. Her Profiles of Successful
husband then started helping her. He used to accompany her. He used to sit at the Entrepreneurs-II
shop for few hours. This stopped the teasing of people as now her husband became
her support system.
NOTES
To attract customers, she used to change outer display of the store everyday
by herself. She used to sit on a stool outside the shop by always wearing a Smile on
her face. The female customers would see her and come into the lingerie shop
without hesitating. Many teenage girls, newly married women would enter the shop
freely and happily purchased from the wide variety she offered them. Her customers
increased and also her turnover. She could pay back her bills promptly and she was
allowed to purchase more from the wholesalers in her next visit to them. Now it was
2003 and just in three years she made a very strong customer base. Her shop was
known as ‘aunty ki dukan’. Just by seeing her face people would enter the store.
The demand was increasing. She purchased a shop in Rs. Six lakhs exactly opposite
to her shop on the first floor of the market where she kept her stock.
Priti proved that to set career, age is not the barrier. At the age of 39 she
started her own business and offered a good life to her family.
In 2003, she was offered a shop by a builder in a new market at Srinagar
area which was a developing area in those days. She planned to start a new
branch of her shop. This was the first time her husband agreed immediately. He
said that soon he would resign from his job and would handle the Srinagar shop.
They purchased the shop for Rs. Eight lakhs by taking bank loan.
Priti used to spend more time in Srinagar shop. Her vazirabad shop was
looked after by her eldest daughter Bharati who was studying in HSC. Bharati
knew that it would not be easy for her parents to handle two shops. Her younger
siblings were studying in school in 4th and 8th standard.
Everything was going smooth till 2004. From 10th position their shop moved
forward to number 8 and they could attract more and more customers. At the
beginning of 2005, Priti’s husband was diagnosed with throat cancer which was at
third stage. Her husband came to know about it when it was in the second stage but
he didn’t took proper medication and also hided it from the family. When Priti came
to know about her husband’s disease she ran everywhere she could. She went with
her husband to Nasik to her family then to Mumbai at Hinduja hospital also to Gujarat
for advance diagnosis. Whatever she could do she did. But finally doctors said that
cancer can only be removed by operation but patient would lose his voice forever.
Listening to this her husband ran from the hospital and denied the operation. She
came back to Nanded with her husband. Meanwhile Srinagar shop was closed
from more than eleven months and vazirabad shop was handled by Bharati. She
also passed her HSC and was planning for her graduation but then the clouds of
sadness showered on them on 10th October 2005 when Udhawlal passed away. The
whole family was into grief and nobody believed what has happened. Everybody
advised them that they should close down both the shops and go back to their home
town. Even some people said her that she had broken the rules and because of that
her husband died prematurely. The people at her market place were happy thinking
that her shop would be closed down and that would end their competition.
But there is always a sunrise after the sunset. She became stronger. She
knew very well that now she had to play the role of mother as well as father. She
had experienced the consequences of loss of her father on her family. She didn’t
want that to happen with her children for whom she started her business. For her
family and her loyal customers, Priti again came back to her business. Again Business
Profiles of Successful people started talking at her back and this time she rose her voice and gave answers
Entrepreneurs-II to them as she had a realization that for her two daughters she would have to be
stronger. Seeing her courage and determination now nobody would ever tease
them. In fact now people respect them.
NOTES
Bharati had to stop her studies after HSC as she had to manage her shop
with her mother. Her younger siblings were still studying and she wanted that them
to continue with their education. She didn’t took admission for graduation and with
complete dedication handled the shop. She maintained all the books of accounts.
She would go and meet chartered accountants and tax consultants regarding shop
accountings and tax returns filings etc and maintain the inflows and outflow of cash.
She made business more organized and systematic. Though she didn’t have commerce
background, she learnt everything with the experience and support of her friends
who had commerce background. As she studied in English medium, she had good
command over English and Hindi and her Marathi was also quite good. She could
communicate very well with any sort of customer and her confidence was improving
day by day due to which she could easily convince the buyer. Now she would also
go with her mother to Mumbai for purchasing and her choice of goods was more
modern and fresh and went with the trend.
Slowly the market grew and also the taste and choice of customers. She started
some of the top leading brands in lingerie and nightwear and attracted the premium
customers who used to shop out of Nanded. After the death of her father she handled
both home as well as shop very well with her mother and now she got all those qualities
at a very early age which her mother had started gaining from her later 30s.
Priti’s younger daughter Mitali passed HSC in commerce and sought
admission to BBA (bachelors in business administration) course like her elder
sister. At the time of Bharti’s examinations Mitali would handle the shop with her
mother and vice versa. Both the sisters supported each other for education and
completed their BBA with flying colors. At the same time, their younger brother
Jeet also completed his SSC and took admission in commerce.
Now Mitali got trained in business tactics and tackled customers nicely
even in absence of her mother and sister. Mitali wanted to go for an MBA and in
2013 she took admission in SRTM University but as it was a full time course so
she put her total focus on her MBA and decreased her hours at shop due to which
her elder sister Bharti and her mother look over the business.
For Jeet, both his eldest sisters decided that he should not be just a degree
holder and that he would enter into a different career line where he would grow
and make a good future. Along with his regular college he took admission in ICSI
and he also cleared his 1st level of foundation along with his 12th and first year of
BBA where he was 2nd topper too.
Mitali successfully completed her MBA with very good marks in 2015 and
she was in a dilemma about her future whether to go for a job or stay into the business.
Priti expressed her wish to re-open Srinagar store which was her dream
few years back but due to death of her husband she could not continue with it. So
in no time again they renovated that store, the area of the store was quiet big and
with all latest furniture and it was re-opened with a small pooja on 6th December
2015 and named the store as JK ladies collection. Priti decided that she would
handle this new shop and her daughters would handle the vazirabad store. Jeet
started to be at the store whenever he had spare time.
Business
Though Mitali could have sought a good job she chose to stay at Nanded Profiles of Successful
and look after her business. She knew that now soon her elder sister would get Entrepreneurs-II
married and her younger brother being busy in his education, she had to be cater
to the loyal customers. When her classmates were struggling for job she was
getting more trained in her business. She was aware about electronic commerce. NOTES
She kept an employee for stock management and now Mitali was not just a self-
employed person but she was becoming an entrepreneur.
With the growing trend of online buying and selling, Bharti and Mitali had
created their own ‘whatsapp’ group where both the sisters would upload all those
pictures of new arrivals and place orders for their customers and make the goods
available for them. They also have an ‘Instagram’ account named JS ladies
garments where people from outside Nanded too can have a look on the new
variety and order them or visit the store. Both the stores are found on ‘Google
Maps’ along with pictures and address. Even on ‘Justdail’ if somebody searches
for a lingerie store in Nanded can find these shops. Technology helped them to
increase their customers. They have a plan to develop their own website and
slowly startup the online business which by the grace of god will happen soon.
Like this now it has been fifteen years when Priti had started the business
on her own and now along with her children she has been successful not only in
running her business but she also built a new home in the heart of the city. She has
a self-made status in society. Her children are well educated with good grades
and skills which they can use anywhere. She is confident that in future her children
would definitely have their own identity in market as well as in society. And the
most important thing is that all of them have self-satisfaction which is above all.
Their satisfied consumers add more happiness to this.
She proved that if a woman decides, she can do anything she wants. She Check Your
may face criticism, challenges but if the goal is clear and heart is pure nothing is Progress
impossible. Staying focused and having courage are the most important
requirements. She began in 2000, failed in initial three months but she again took 8. Name the entre-
herself up and without any delay understood all the lacunas of the previous market preneurs in the above
then shifted to another market not only shifted the market but also she changed profile
her products as per her perception of market needs. This shows how aware she
was and how she grabbed the opportunity promptly at the right time. But the story
is not over it is again a way to go as more development by her younger daughter
(an MBA) and son (pursuing ICSI) is yet to discover!
12.3 Summary
Exploring the profiles of successful entrepreneurs show several prominent
personality traits such as need for achievement, vision, leadership ability, undying
optimism, innovative ability, creativity and the like. These profiles illustrate how
the successful entrepreneurs deploy various entrepreneurial skills and fetch success.

Questions
1. Analyze the sequence of events that contributed for the success of Milind
Business
2. Account for the success of Priya as a woman entrepreneur Entrepreneurship - VI 205
Profiles of Successful 3. What is the key to success of Expert Global Solutions and what is the
Entrepreneurs-II role of Mukund in it?
4. Account for the success of Vikas as a first generation entrepreneur.
NOTES 5. Discuss the profile of Priti Wadhwa as a monpreneur.
Exercise
Activity 12.1
Try to meet any one of the above entrepreneurs and discuss with them
about the entrepreneurial journey
1. Which one of the following statements applies to Expert Global Solutions?
i. The enterprise is founded by four first generation entrepreneurs
ii. The company deals with engineering design, embedded electronics,
SAP implementation and IT infrastructure
iii. 80% employees are from Marathwada Region
iv. All the above
2. Mukund talked about which one of the following difficulties?
i. Finance
ii. Attracting Talent
iii. Both i and ii
3. Select the correct alternative with reference to motivating factors for Vikas
i. A passion do something innovative and big for personal growth
ii. A dream about providing employment to several people and offering
products to people which would benefit them in several ways
iii. Awareness about growing market of probiotics and presence of
only one manufacturer
iv. All the above
Answers
Check Your Progress
1. probiotics for Human health care, Animal health care, Bioremediation
for waste water treatment, Aqua culture and products based on beneficial
micro-organisms for Agriculture.
3. food Products in the form of ready to use and ready to eat packaged items
4. 1996
7. Milind Kank
Business
Multiple Choice Profiles of Successful
Entrepreneurs-II
Questions
1. iv
NOTES
2. iv
3. iv

Dash Manoj Kumar, Think New Think Better Select Cases on
Entrepreneurship, Serials Publications, 2011
Finkle Todd A., Lessons Learned from Leading Entrepreneurs: Case
Studies in Business and Entrepreneurship, 2011
Jham Vimi, Sharma Keerti, Footsteps of Successful Entrepreneurs: A
Collection of Case Studies, Excel Books, 2011
Kapoor, N.K., Patolia Jitendra, Rupakara Brijesh, Case Studies in
Management: First Generation Entrepreneurial Organizations, Excel Books, 2011
Business

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BEG-302

YASHWANTRAO CHAVAN MAHARASHTRA OPEN UNIVERSITY

Dr. Mahesh Kulkarni Dr. J. F. Patil Prof. V. V. Morajkar

Dr. A. G. Gosavi Dr. Madhuri Sunil Deshpande Dr. Parag Saraf

Dr. S. V. Kuvalekar Dr. Surendra Patole Dr. Latika Ajitkumar Ajbani

Authors Editor Instructional Technology Editing &

Dr. Latika Ajitkumar Ajbani

© 2017, Yashwantrao Chavan Maharashtra Open University, Nashik - 422 222

ISBN 978-81-8055-413-1 BEG 302

Unit 1 : Intrapreneurship or Corprorate Entrepreneurship 8

Unit 2 : Women and Entrepreneurship 25

Unit 3 : Service Entrepreneurship 40

Unit 4 : Rural Entrepreneurship 56

Unit 5 : Social Entrepreneurship 71

Unit 6 : Entrepreneurship and International Business 89

Unit 7 : Youth Entrepreneurship 106

Unit 8 : Family Business and Entrepreneurship 121

Unit 9 : Technopreneurship 139

Unit 10 : Intellectual Property Rights 158

Unit 11 : Profiles of Successful Entrepreneurs - I 176

Unit 12 : Profiles of Successful Entrepreneurs - II 191

Copyright © Yashwantrao Chavan Maharashtra Open University, Nashik.

Business Entrepreneurship – VIis intended to familiarize students with

I thank books, the authors for inspiring me to read, internalize,

I would be happy if feedback and comments/suggestions for

With Best Wishes!

Dr. Madhuri Sunil Deshpande

Unit 2 : Women and Entrepreneurship

Unit 3 : Entrepreneurship and Service Sector

Unit 4 : Rural Entrepreneurship

Unit 5: Social Entrepreneurship

Unit 6 : Entrepreneurship and International Business

Unit 7 : Youth Entrepreneurship

Unit 8 : Family Business and Entrepreneurship

Meaning, Challenges, Entrepreneurship versus Technopreneurship, Significance of Technopreneurship

Unit10 : Intellectual Property Rights

Unit 11 :Profiles of Successful Entrepreneurs - I

Unit 12 : Profiles of Successful Entrepreneurs - II

1.1 Unit Objectives

1.2 Nature of Intrapreneurship

1.3 Need for Intrapreneurship

1.4 Comparison with Entrepreneurship

1.5 Challenges to Corporate Entrepreneurship

1.6 Guidelines for Success of Intrapreneurship

1.7 Intrapreneurship in Indian Scenario

1.9 Key Terms

1.10 Questions and Exercises

1.11 Further Reading

After going through this unit, you will be able to

• Know the difference between intrapreneurship and entrepreneurship

1.2 Understanding Strategy and Strategic

1.3 Need for Corporate Entrepreneuring

Primary motives Promotion and other Independence, Independence and

Time orientation Short term – meeting Survival and achieving 5 Between

Activity Delegates and Direct involvement Direct involvement

Risk Careful Moderate risk taker Moderate risk taker

Who serves Others Self and customers Self, customers, and

Family history Family members Entrepreneurial small Entrepreneurial small

1.6 Guidelines for Success of Intrapreneurship Check Your

10. Keep the vision strong.

• Solo phase: In this phase, an individual conceives an innovative idea and

1.7 Intrapreneurship in Indian Scenario

1.9 Key Terms