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

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

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

SUBMITTED TO: MS. NEHA GUPTA ASSISTANT PROFESSOR

SUBMITTED BY: SRISHTI MEHRA 12714101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI

1

TABLE OF CONTENTS

S.NO

DESCRIPTION

PAGE NO

ACKNOWLEDGEMENT

CERTIFICATE OF COMPLETION STUDENTS DECLARATION

EXECUTIVE SUMMARY

6-9

CHAPTER-1 INTRODUCTION HISTORICAL BACKGROUND RECENT TRENDS IN THE INDUSTRY

10-26

CHAPTER-2 OBJECTIVES

27

CHAPTER-3 RESEARCH METHODOLOGY

28-32

CHAPTER-4 ANALYSIS

33-57

CHAPTER-5 RECOMMENDATIONS AND LIMITATIONS

58

CHAPTER-6 CONCLUSION

59-63

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CHAPTER-7 REFERENCES

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ACKNOWLEDGMENT

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

SRISHTI MEHRA

CERTIFICATE OF COMPLETION

This is to certify that Srishti Mehra, pursuing BBA 6thsem (B) (M) from JIMS KALKAJI, has completed her project on the topic REASONS FOR UPSURGE IN THE NUMBER OF ENTREPRENEURS IN INDIA IN RECENT YEARS under my guidance.

Her work is appreciable.

Project Guide: Ms. Neha Gupta Assistant Professor

STUDENTS DECLARATION

I hereby declare that the project report titled REASONS FOR UPSURGE IN THE NUMBER OF ENTREPRENEURS IN INDIA IN RECENT YEARS is my own work

and has been carried out under the table guidance of Ms. Neha Gupta (Assistant

Professor at JIMS Kalkaji). All care has been taken to keep this project error free and I

sincerely regret for any unintended discrepancies that might have crept into this report.

Thank You (Srishti Mehra) BBA 6thSem (B)(M) Jagannath International Management School (KALKAJI) (srishti19mehra@gmail.com) Date:-13/03/2013 Place-Delhi

EXECUTIVE SUMMARY

ENTREPRENEURSHIP

'Entrepreneurship' is

the

act

and

art

of

being

an entrepreneur or

one

who

undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods. This may result in

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

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

UPSURGE IN THE NUMBER OF ENTREPRENEURS:

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

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

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

CHAPTER-1

INTRODUCTION

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

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

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

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

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1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies.

1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.

1975: Howard Stevenson: Entrepreneurship is "the pursuit of opportunity without regard to resources currently controlled."

1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established organization.

1985: W.B. Gartner: Entrepreneur is a person who started a new business where there was none before.

INFLUENCES AND CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOR

Management skill and strong team building abilities are often perceived as essential leadership attributes for successful ability, entrepreneurs. Robert and team-building as B. essential

Reich considers leadership,

management

qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say in his Treatise on Political Economy.

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Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. A growing body of work shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries with healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity-driven rather than necessity-driven women

entrepreneurs. Empirical studies suggest that male entrepreneurs possess strong negotiating skills and consensus-forming abilities. Research studies that explore the characteristics and personality traits of, and influences on, the entrepreneur have come to differing conclusions. Most, however, agree on certain consistent entrepreneurial traits and environmental influences. Although certain entrepreneurial traits are required, entrepreneurial behaviours are also dynamic and influenced by environmental factors. Shane and Venkataraman (2000) argue that the entrepreneur is solely concerned with opportunity recognition and exploitation, although the opportunity that is recognised depends on the type of entrepreneur; while Ucbasaran et al. (2001) argue there are many different types contingent upon environmental and personal circumstances. Jesper Srensen has argued that some of the most significant influences on an individual's decision to become an entrepreneur are workplace peers and the social composition of the workplace. In researching the likelihood of becoming an entrepreneur based upon working with former entrepreneurs, Srensen discovered a correlation between working with former entrepreneurs and how often these individuals become entrepreneurs themselves, compared to those who did not work with entrepreneurs.[5] The social composition of the workplace can influence entrepreneurism in workplace peers by proving a possibility for success, causing a He can do it, why cant I? attitude. As Srensen stated, When you meet others who have gone out on their own, it doesnt seem that crazy.

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PERCEPTION OF ENTREPRENEURS The ability of entrepreneurs to innovate is thought to relate to innate traits such as extroversion and a proclivity for risk-taking. According to Schumpeter, the capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristic qualities of entrepreneurs. Entrepreneurs are catalysts for economic change, and researchers argue that entrepreneurs are highly creative individuals with a tendency to imagine new solutions by finding opportunities for profit or reward.[6] Largely due to the influence of Schumpeter's heroic conceptions of entrepreneurs, it is widely maintained that entrepreneurs are unusual individuals. In line with this view, there is an emerging research tradition investigating the genetic factors that are perceived to make entrepreneurs so distinctive (Nicolaou and Shane, 2009). However, there are also critical perspectives that attribute these research attitudes to oversimplified methodological and/or philosophical assumptions (Gartner, 2001). For example, it has been argued that entrepreneurs are not that distinctive, but that it is in essence unrealistic preconceptions about "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs" (Ramoglou, 2011).

CLASSIFICATION OF ENTREPRENEURS A. Based on functional characteristics 1. Innovative entrepreneur: Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganize the enterprise. 2. Imitative or adoptive entrepreneur: Such entrepreneurs dont innovate, they copy technology or technique of others. 3. Fabian entrepreneur: Such entrepreneur display grates situation and scepticism in experimenting with any change in their enterprise. They change only when there is a serious threat to the very existence of the enterprise.

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4. Drone entrepreneurs: Such entrepreneurs are characterised by a diehard conservatism and may even be prepared to suffer the losses.

B. BASED ON DEVELOPMENT ANGLE 1. Prime mover: This entrepreneur sets in motion a powerful sequence of development expansion and diversification of business. 2. Manager: such an entrepreneur doesnt initiate expansion and its content in just staying in business. 3. Minor innovator: This entrepreneur contributes to economic progress by finding better use for existing resources. 4. Satellite: This entrepreneur assumes a suppliers role and slowly move towards a productive enterprise. 5. Local trading: such entrepreneur limits his enterprise to the local market.

C. BASED ON ENTREPRENEURS BUSINESS 1. Manufacturing 2. Wholesaling 3. Retailing 4. Service

BASED ON PERSONALITY TRAITS 1. The improver: They have unwavering to run these businesses with high integrity and ethics. 2. The advisor: Customer is right and we must do everything to please him because company is built by advisors and advisors become customer focused. 3. The superstar: All depends upon the charisma and on the high energy of the superstar CEO.

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4. The artists: Are highly creative type, very conscious about business. If feedback is constructive i.e. positive than also lets go with negative self-image. 5. The visionary: Too focused on dreams with little focused on reality. 6. The fireball: A business owned and operated by a fireball is full of life, energy and optimism. They have A get it done attitude in a playful manner. 7. The hero: Have an incredible will and ability to lead the world and your business through challenges. 8. The healer: They provide nurturing harmony to their business, they have uncanny abilities to survive and persists inner calm.

THEORY-BASED TYPOLOGIES Recent advances in entrepreneur researcher indicate that the differences in entrepreneurs and the heterogeneity in their behaviors and actions can be traced back to their the founder's identity. For instance, Fauchart and Gruber (2011) have recently utilized social identity theory to illustrate that entrepreneurs can be distinguished in three main types: Darwinians, Communitarians and Missionaries. These types of founders not only diverge in fundamental ways in terms of their self-views and their social motivations in entrepreneurship, but also engage fairly differently in new firm creation.

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ENTREPRENEURSHIP

'Entrepreneurship' is

the

act

and

art

of

being

an entrepreneur or

one

who

undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods. This may result in

new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as startup company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations According to Paul Reynolds, entrepreneurship scholar and creator of the Global Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers." And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. "As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)" Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture

capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business.

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Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and

some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset(see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social

entrepreneurship, political emerged.

entrepreneurship,

or knowledge

entrepreneurship have

CHARACTERISTICS OF AN ENTREPRENEUR Entrepreneurs have many of the same character traits as leaders, similar to the early great man theories of leadership; however trait-based theories of entrepreneurship are increasingly being called into question. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Such person-centric models of entrepreneurship have shown to be of questionable validity, not least as many real-life entrepreneurs operate in teams rather than as single individuals. Still, a vast literature studying the entrepreneurial personality argues that certain traits seem to be associated with entrepreneurs:

Bird - mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and resourcefulness. they are cunning, opportunistic, creative, and unsentimental.

Busenitz and Barney - prone to overconfidence and over generalizations. Cole - found there are four types of entrepreneur: the innovator, the calculating inventor, the over-optimistic promoter, and the organization builder. These types are not related to the personality but to the type of opportunity the entrepreneur faces.

Collins and Moore - tough, pragmatic people driven by needs of independence and achievement. They seldom are willing to submit to authority.

Cooper, Woo, & Dunkelberg - argue that entrepreneurs exhibit extreme optimism in their decision-making processes.

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John Howkins - focused specifically on creative entrepreneurship. He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data, to be nomadic and to learn endlessly.

David McClelland - primarily motivated by an overwhelming need for achievement and strong urge to build.

CONCEPT It has assumed super importance for accelerating economic growth both in developed and developing countries. It promotes capital formation and creates wealth in country. It is hope and dreams of millions of individuals around the world. It reduces unemployment and poverty and it is a pathway to prosper. Entrepreneurship is the process of exploring the opportunities in the market place and arranging resources required to exploit these opportunities for long term gain. It is the process of planning, organising, opportunities and assuming. Thus it is a risk of business enterprise. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. It is a creative and innovative skill and adapting response to environment.

PROMOTION Given entrepreneurship's potential to support economic growth, it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-taking, and national campaigns. An example of the latter is the United Kingdom's Enterprise Week. Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week, a worldwide celebration and promotion of youth

entrepreneurship, which started in 2008.

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FINANCIAL BOOTSTRAPPING Financial bootstrapping is a term used to cover different methods for avoiding using the financial resources of external investors. Bootstrapping can be defined as a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors.[12] The use of private credit card debt is the most known form of bootstrapping, but a wide variety of methods are available for entrepreneurs. While bootstrapping involves a risk for the founders, the absence of any

other stakeholder gives the founders more freedom to develop the company. Many successful companies including Dell Computers and Facebook were founded this way. There are different types of bootstrapping:

Owner financing Sweat equity Minimization of the accounts payable Joint utilization Delaying payment Minimizing inventory Subsidy finance Personal Debt

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HISTORICAL BACKGROUND

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

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By the 18th century three of them evolved an entirely new theory in which, he made clear cut distinctions amidst entrepreneur and capital provider. He did this distinction due to the outcome of industrialization, which had geared up in the globe. This was the period of Thomas Edison's financial crunch. He wanted to add on to technological advancements but could not do so because of financial constraints. Later he got a way out by generating capital from private sources to finance his experiments in the fields of chemistry and electricity as well. Hisrich, Peter and Shepherd regarded him as an entrepreneur and not as finance provider (venture capitalist). A venture capitalist was supposed to be a person who is the 'Manager' of capital and along with it he also needs to bear the risk factor of business and lately share a high rate of return. As we moved ahead to the late19th and 20th century the entire global scenario changed. There was not much difference in entrepreneurs and managers, both were often regarded as the same. Now in the late 20th century according to Merriam-Webster's online dictionary, "An entrepreneur is one who organizes, manages, and assumes the risk of a business or an enterprise".

In the year 2005 Hisrich, Peter and Shepherd regarded entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw in his own inventiveness, expertise, plans and administers the venture.

Now as we know all about the history of entrepreneurship as a whole let us switch over to the origin of the same in the various economies.

1.) Nigerian history of entrepreneurship: Entrepreneurship originated in Nigeria when the production exceeded the consumption levels, which resulted in barter system or double coincidence of wants. This is what made producers realize that if they have surplus, the people will not have to wait for double coincident of wants. Now the exchange of products and services was done freely in the Nigerian market. Lately, total commercialization of the act was done.

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2) Evolution of Canadian history of student entrepreneurs: The founder of Canadian association of university student entrepreneurs (C.A.U.S.E.) in 1986 was Ian Aitken, whose main objective was development of student entrepreneurs. (C.A.U.S.E.) was changed to (C.A.S.E) Canadian association of student entrepreneurs in 1987, which also included the college campuses as well. Again the name was changed in 1988 and finally it was the association of collegiate entrepreneurs- Canada (A.C.E.-Canada). Now twenty years from the origin the association is known as "advancing Canadian entrepreneurs Inc."

3) History of entrepreneurship in India: Several entrepreneurial phases in India have passed since independence. A slow pace of development was reflected in the late 1950s and early 1960s, as the entire economy was changing from an agro based economy to an industrialized economy. Soon after that the upcoming entrepreneurs got support from the government as well. A number of SSI sprouted up in late 1960s and 1970s. Here an intensive movement was initialized for further promotion of entrepreneurship. Finally, in 1980 India was able to liberalize imports and began with small and medium scale entrepreneurs. Further, the economic reforms were introduced in 1990. It was a kind of disillusion for the budding Indian entrepreneurs and now in the 2000 the entrepreneurial scenario has undergone a vast change. Now India is taking part in global entrepreneurship as well.

4) Entrepreneurship in

Greece: The pillars of

ancient Greece history of

entrepreneurship are based on few points give by the great historian Peter Connolly. The points are mentioned below: a) The positive aspect of entrepreneurial activities for autonomy was realized, which would enhance liberty and strength of the city. b) The only bet before entering into entrepreneurial activities was that the people practicing it shall keep within the ethical, social, as well as the moral margins.

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RECENT TRENDS OF THE INDUSTRY

We love a good story and a quick cash infusion, but when it comes down to it, we're far bigger fans of businesses built on a solid foundation -- those that can weather the economy's fits and starts; that can embrace what's trendy but don't crash when kids move on to the next big thing; that address the wants and needs of America's increasingly diverse population. Our list of the trends we've got our eyes on will help anchor your business, present or future, in reality. From cooking up goodies that satisfy America's growing taste for all things spicy -- a sign of our shifting demographics -- to helping workers who are locking the door on traditional office setups, these trends are built to last (at least for a while). Consider this a jumping-off point as you envision new products and services -- and look at it as a heads-up on evolving ways to manage your current business. Now, to your future.

1.) Data

The Rise of Big Data Cutting-edge entrepreneurs are stepping up to crunch the vast (and ever-growing) stockpile of information too large for companies to store and analyze in-house. 2.) Manufacturing

Domestic Production Makes a Comeback

Factors like more affordable labor, higher shipping costs, a better financial climate and a surge of homegrown innovation mean the U.S. manufacturing startup universe is experiencing a renaissance.
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3.) Office Space

The Workspace of the Future The office is getting a new look -- or being phased out altogether.

4.) Management

Managers Who Understand the Importance of Goofing Off CEOs get the message about the value of fun in the workplace and its contribution to the bottom line.

5.) Beauty

Beauty Seekers Favor 'Cosmeceuticals'

Consumers take a shine to advanced personal-care products.

6.) Food

Hot Sauce Goes Mainstream Move over ketchup. Hot sauce is now one of the 10 fastest-growing industries in the U.S.

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7.) Beverage

Energy-Drink Market Gets a Boost From Young Consumers Energy-enhancing products have grown into a multibillion-dollar industry fueled by young consumers.

8.) Health

Healthcare Goes Digital The digital health-technology market will be worth $5.7 billion by 2015, with chronic care, wellness and medication management leading the charge.

9.) Customer Service

Using Transparency to Build Consumer Trust Weary consumers have had enough of false promises and conflicting marketing claims and are simply seeking brands they can trust.

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10.)

Vending

Unique Vending Machines Drive Stagnant Industry Forward Recent innovations like touchscreen technology, electronic-payment options and unique products could give the vending machines industry a boost.

11.)

Lending

Creative Financing Grows in Popularity Traditional business lending is still faltering, but more people are starting businesses, which means borrowers and lenders are getting creative.

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CHAPTER-2

OBJECTIVES

What we mean by the term UPSERG

What we mean by the term ENTREPRENEURS

What is the role the Entrepreneurs play in the country

What can be the reasons for Upsurge in the number of Entrepreneurs in India in recent years

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CHAPTER-3

RESEARCH METHODOLOGY

INTRODUCTION TO RM

Marketing research is the function which likes the consumers, customers & public to the marketer through information which is used to identify & define marketing opportunities & problems, generate, refine & evaluate marketing action; monitor marketing performances & improve understanding of marketing as a process. It has following steps: I: PROBLEM DEFINITION II: DEVELOPMENT OF AN APPROACH TO THE PROBLEM III: RESEARCH DESIGN FORMULATION IV: FIELDWORK OR DATA COLLECTION V: DATA PREPARATION AND ANALYSIS VI: REPORT PREPRATION AND PRESENTATION

2.1

RESEACH DESIGN:

It is framework or blueprint for conducting the market research project. It specifies the details of procedures necessary for obtaining the information needed to structure and/or solve marketing research problem.

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Research design broadly classified into two parts : Exploratory Research Conclusive Research EXPLORATORY RESEARCH:

Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory. Hypothesis is tentative answer to the question that serves as guide for most of the research projects It seeks to discover new relationships. All marketing research projects start with it. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. The major emphasis is on the discovery of ideas & insight. CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make a rational decision. This study has done well while attempting to arrive at a more clear description of an apparent problem.

2.2 TARGET POPULATION: The collection of elements or object that possess the information sought by the researcher and about which inference are to be made Target population should be defined in term of Element and Sampling unit.

ELEMENT:

Object that possess the information sought by the researcher and about which inferences are to be made.

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SAMPLING UNIT:

The basic unit containing the elements of the population to be sampled .

2.3 SAMPLE SIZE: Sample size refers to the number of elements to be used in a study.

2.4 SAMPLING TECHNIQUES: Sampling Techniques are of two types: Non probability (non random) Probability sampling (random sampling) The sampling technique used in this research is Non - random sampling techniques in which I have choose convenience sampling technique because it is least expensive and least time consuming of all sampling techniques. Convenience sample: It is also known as "accidental" sample or "man-in-the-street" samples.

SCOPE OF STUDY:

The scope of the study will be useful in future. Through this study we can know what is upserg, what are entrepreneurs and what are the roles of entrepreneurs in the recent India. Through this study we will find out the factors of awareness for upsurge in the number of entrepreneurs in India in recent years.

Hence by implementing all the above we can analyze the reasons for upsurge in the number of entrepreneurs in India in recent years.

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2.6 DATA COLLECTION METHOD: The data collection process can be relatively simple depending on the type of data collection tools required and used during the research. Data collection tools are instruments used to collect information for performance assessments, self-evaluations, and external evaluations. The data collection tools need to be strong enough to support what the evaluations find during research. Here are a few examples of data collection tools used within three main categories. Secondary participation: Secondary participation require no direct contact to Data collection tools used in personal contact observations are used ather information. It involve: Postal mail Electronic mail Telephone Web-based surveys

In-person observations when there is face to face contact with the participants. Some examples of this type of data collection tool would include: In-person surveys used to gain general answers to basic questions Direct or participatory observations where the researcher is directly involved with the study group Interviews used to gain more in depth answers to complex questions Focus groups where certain sample groups are asked their opinion about a certain subject or theory.

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Case Studies And Content Analysis:

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

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CHAPTER-4

ANALYSIS

ENTREPRENEURSHIP IN INDIA:

RISE OF ENTREPRENEURS IN INDIA: There is a galore of Indian entrepreneurs in the Forbes list of the worlds wealthiest every year. But, this is merely a factoid; more significant is the rise of new entrepreneurs in India. In almost every new industry that has attained stature in the last decade, the rising star is not from the established business houses but an upstart. Take Sunil Mittal, whose phone company now has the sixth-highest value. Ten years back, Mittal would not have figured even in the B list of Indian businessmen. Today, he is ahead not only of patricians like Tatas but also of a global major like HutchisonWhampoa. Naresh Goyals Jet Aiways, barely in fifteen years, has emerged as the largest airline in the country, upstaging the State-owned Indian Airlines, and buying up a private sector rival, Sahara.

In the sunrise retailing sector the big boys, Kishore Biyani and B.S. Nagesh, are creating a furore. Kishore, a totally unknown name a decade ago is now a media darling, a man-on-the-go. Pantaloon and Shoppers Stop are the Indian challengers -inwaiting for Wal-Mart as they have already swept the likes of Tata (Trent) and RPG off the floor in the retail business.

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What about the countrys leading airports? The carpetbaggers here are again first generation names like G.M. Rao and G.V.K. Reddy. Having interesting histories in banking, power and hoteliering, both are now into the big league after outdoing airport bids against celebrities with household surnames.

The most extraordinary stories of meteoric rise in the annals of entrepreneurship, however, belong to Narayana Murthy, Azim Premji and Shiv Nadar. They have surpassed their counterparts in advanced countries in software development and helped India emerge as the leading Software power. In the same breath, we must mention Subhash Chandra, the amusement parks owner and a pioneer of satellite TV in India. Within a few years he has outperformed the oldest media house in the country. Uday Kotak has founded a bank that promises to be yet another ICICI. Rajeev Chandrashekhar, an engineerturned-telecom tycoon is truly an adventurer. Returning from the US, he got into a telecom business, sold it out and is now entering into freight transport as the railways are privatising the container business. Kiran Mazumdar Shaw, another pioneer, has made impressive forays into biotech industry.

Among the electronic media enterprisers Prannoy Roy and Raghav Behl are Indias news kings. How about Jignesh Shah, the challenger. He is another first-generation business entrepreneur involved in a David-Goliath duel with countrys biggest financial players for market leadership in commodity exchange. The list is getting longer daily.

Only a few decades back, Indian entrepreneurs had to leave India in order to prove their spirit of enterprise. Aditya Birla wandered all over South-East Asia setting up companies and factories. Laxmi Mittal had to flee his homeland to become the worlds steel sultan. Doing business in India is no cakewalk, what with the bureaucracys red tape and greasy palms, yet the Indian entrepreneur is proving his mettle. India is now a vast and vibrant market. Capital can be organized and technology accessed. De-regulation is creating new opportunities. Forbes list is no longer an Everest for Indian entrepreneurs.
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Indian business is also fanning out and challenging the global multinationals. For instance, Tata is now one of the worlds lowest-cost steel producers. Indians are shaking Europe, America, other continents with their global mega-mergers and hostile takeovers. L.N. Mittalbased in London but holding an Indian passportgrabbed the worlds largest steel-maker, Arcelor. Tata, not to be left behind, gobbled up another major steel manufacturer, Corus, to become the fifth largest producer. These deals hail the emergence of global Indian entrepreneurs on the world stage. India is fast becoming a hub for metals, petro-products and auto components.

Indias second largest private firm, the Mukesh Ambani-owned Reliance Industries, may soon be among the top 10 in the world list. According to a Boston Consulting Group (BCG) report, a revolution in global business is under way, and the axis of corporate power was shifting towards the the BRIC (Brazil, Russia, India and China) countries.

A 2006 study by Mape, an investment bank, observed: the Indian Multinational Company (MNC) has finally come of age and Indian buyers have become a force to reckon with in many industries such as pharma, auto components and oil and gas. Liberal policies, access to cash, and the rise of entrepreneurial ambitions are creating conditions for the emergence of global Indian enterprises.

Besides the exceptional first-timer Indira Nooyi, the Pepsico chief, many banks, insurance companies and business enterprises now have women in key positions chief executives, chief strategists, chief economists. Many head the human resource wings and are tough and tactful while dealing with the hard-core politicos and burly men dominating the restive trade unions. Kiran Shaw Majumdar, Biocon chief, or Anu Agha, who took over Thermax after her husbands sudden death, is no transient phenomenon but is becoming a normal face of Indian business.
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Higher education and new confidence are helping daughters and daughters-in-law of traditional families take up high-profile corporate roles. Women are better students, quick to grasp the nitty-gritty of work and more willing to listen to elders. Shefali Munjal is a third generation member of the Munjal family who manages Hero Group, among the worlds largest two-wheeler makers. Priya and Priti Paul of Apeejay Surrendra Group, met the challenge after their father got killed in a terrorist attack in Indias turbulent northeast, where the family has a tea business.

Sulajja Firodia Motwani manages her Kinetic Group as well as family. She joined the family enterprise on returning from Carnegie Mellon University. Mallika Srinivasan of Chennai-based Tractor and Farm Equipment is the eldest daughter of A. Sivasailam, chairman of the Rs 25 billion Amalgamations Group, and wife of Venu Srinivasan of the TVS Group. She is rated as one of the most successful Indian women CEOs.

Cremica is a popular biscuit and confectionery brand where Geeta Bector is both director and wife of Akshay Bector, M.D. She thinks women have a special advantage when it comes to food. S.K. Dhamija in his book Women Entrepreneurs says: The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in society Today, women entrepreneurs represent a group that has broken away from the beaten track and are exploring new avenues of economic participation. It is estimated that women entrepreneurs currently comprise about 10 per cent of the total number of entrepreneurs in India. Shashi Ruia describes his Essar Group as serial entrepreneurs and predicts the rise of new entrepreneurs. There has not been a better time in India to reach out and touch the horizon ... entrepreneurship is no more limited to family-managed businesses in India, he said while addressing a Convocation of the Entrepreneurship Institute of India.

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 NUMBER OF ENTREPRENEURS IN INDIA:

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

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

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

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Profile of Entrepreneurs and their Businesses

GEM interviewed more than 140,000 adults in 54 economies across diverse geographies and a range of economic levels. GEM estimates that, of the entrepreneurs engaged in starting and running new businesses in 2011:

o 163 million early-stage entrepreneurs are women o 165 million early-stage entrepreneurs are young entrepreneurs (age 18 to 25) o 69 million early-stage entrepreneurs are offering innovative products and services o 18 million early-stage entrepreneurs are selling 25 percent of their products and services internationally Only eight out of 54 economies ? Panama, Venezuela, Jamaica, Guatemala, Brazil, Thailand, Switzerland, and Singapore ? have equal participation by men and women in entrepreneurship. The remaining economies show lower female participation, some as low as a 1:10 ratio (Pakistan). Early-stage entrepreneurs are most often young to middle-age (25-44 years), though in many developing economies, there is a tendency toward younger entrepreneurs. In Switzerland and Japan, on the other hand, older entrepreneurs (44-54 years) are the most frequent participants in entrepreneurship. Consumer-oriented businesses and manufacturing dominate entrepreneurship in the emerging and developing stages. Compared with entrepreneurs in the emerging economies, four times as many entrepreneurs from the mature economies are involved in more knowledge-intensive, business services sector. An evaluation of the job creation impact of entrepreneurs on their economies shows that although there are fewer entrepreneurs in mature economies, they are more likely to have high growth projections. A simple number count of entrepreneurs does not tell the whole story.
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 Among the developing economies, Chile, Peru, South Africa, and Poland have high percentages of entrepreneurs with innovative products and services. In the mature stages it is Denmark that, despite a low TEA rate, has high innovation rates. On average, the proportion of entrepreneurs with innovative products and services increases with economic development level. Internationalization also increases with economic development; fewer entrepreneurs from emerging economies offer their products and services in the international marketplace. Countries such as Brazil, China, Argentina, and Russia with large populations and large geographic areas have lower rates of internationalization.

Entrepreneurial Frameworks

GEM interviewed country experts about the kinds of Entrepreneurship Framework Conditions (EFCs) - from education and national policy to internal markets and infrastructure systems that will contribute to a healthy environment for

entrepreneurship. Not surprising, we find discrepancies between EFCs in different economies, said coauthor Slavica Singer. Education, internal market dynamics, and cultural and social norms about entrepreneurship received high marks in emerging economies. Government programs, R&D transfer, finance and national policy EFCs rank highly in innovation economies but low in emerging economies. Entrepreneurial Employee Activity

Entrepreneurial employees - those who create and develop new business ideas for their organizations - are more likely found in mature economies. They develop or launch new goods or services, or set up new business units that constitute a new establishment or subsidiary for their main employer.

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Surprisingly, entrepreneurial employees are found in mature economies with low TEA rates - Denmark, Belgium, and Sweden - as well as in those with high TEA rates - U.S., Australia, and the Netherlands. Entrepreneurs are not just involved in start-ups, said Kelley. Entrepreneurs of all kinds are found throughout the economies of the world in established companies and organizations, family businesses, non-profits, and franchises, among others.

Policy Implications

GEM researchers offer several guidelines for policy makers, entrepreneurs, and academics to help them build entrepreneurial eco-systems that enable entrepreneurship to thrive in every world economy. Policy recommendations that improve the flexibility of labor, communications and market openness while eliminating bureaucracy and red-tape will contribute to a more entrepreneurially-focused business environment, said report coauthor Mike Herrington. Cultures that reward hard work and creativity, rather than political connections, will also encourage entrepreneurial development. Governments ensuring that political interests do not supersede economic concerns are also more likely to create conditions in which entrepreneurs can grow and prosper. This is particularly important and relevant in many developing economies. To create energy for making positive changes, societies must consider that entrepreneurship is not the heroic act of a few individuals, but the accomplishments of many people who pursue their ambitions in a supportive cultural and institutional environment, adds Singer.

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 UPSURGE IN THE NUMBER OF ENTREPRENEURS:

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

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All of this points towards a positive future for the budding entrepreneur, and by extension, for the nation itself in terms of new jobs, socio-economic innovations, and a more competitive and organic business environment. This is not an entrepreneur-led movement though it calls for intense cooperation between the government, corporates, groups, and the entrepreneurs themselves. more competitive and organic business environment. This is not an entrepreneur-led movement though it calls for intense cooperation between the government, corporates, groups, and the entrepreneurs themselves. The first and most important order of business would be to create open lines of communication for guidance and mentoring for the entrepreneur, so that the best ideas are incubated and nurtured for success.

WHEN BIG COMPANIES FALL, ENTREPRENEURSHIP RISES

When a whale dies, the 30-100 ton body or "whale fall" slowly, silently sinks to the ocean bottom where it becomes the wellspring of a complex new microcosm of seabed flora and fauna that can thrive for well over half a century. These new ecosystems with their hundreds of species from flesh-eating sharks to sulphur-metabolizing worms also include "innovative start-ups" previously undiscovered new sea animals that have naturally selected to flourish in the unique ecosystem. There are many ways that live "corporate whales" can cultivate entrepreneurship ecosystems as investors with capital for ventures to grow, as customers who buy innovative products, or as marketing partners to give the small dynamic firms global reach. I am a big believer of the symbiotic necessity of large companies and entrepreneurial ventures living side by side: You simply cannot have a flourishing entrepreneurship ecosystem without large companies to cultivate it, intentionally or otherwise.

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But one of the deep, dark secrets of the flourishing of entrepreneurship in parts of the world as diverse as Israel, India, Colorado, and Denmark has been "corporate fall" the death or shrinkage of large corporate incumbents whose detritus feeds the entrepreneurship culture. We don't have far to look for current examples: Today Finland is witnessing an upsurge in entrepreneurship now in part because corporate giant Nokia is in the midst of shedding 10,000 high-quality jobs. As it happens, the "Nokia Bridge Program" is a socially minded strategy for both easing the pain of layoffs, and intentionally supporting the more talented. A similar drama is taking place in aptly-named Waterloo Canada as RIM's BlackBerry smartphones have become overripe. Initially fueled by RIM's success, KitchenerWaterloo's "Quantum Hub" is now being fed by its turbulent ups and downs, with thousands of highly trained people flooding the small region. Whereas superficial accounts of the rise of entrepreneurship in societies selectively glorify government interventions, few tell the story of death. In August 1987, for example, under severe United States pressure, the Israel government abruptly and controversially cancelled the Lavi fighter development project that was to be Israel's answer to the F-16 and the societal equivalent of NASA's moon program. Estimates of jobs eventually lost from the closure of the multi-billion dollar project range from 1,500 to over twice that many. But it is no coincidence that Israel's entrepreneurship skyrocketed in the late 80s and early 90s just after the Lavi was grounded. Many of the thousands of highly qualified engineers either started companies or joined growing start-ups it did not take too many talented people with experience in developing advanced technology products to turbocharge Israel's entrepreneurial revolution. Less glitzy than start-up glam perhaps, but the reality in this case is that it took the death of a once-promising project to generate the life of many new ventures.

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

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I make this observation fully cognizant of, and sympathetic with, the pain of being tossed out into the street, as so many people are when corporations fail, downsize, or restructure. The practical implication here is obviously not to encourage or applaud corporate death, just as recognizing the ecosystem renewal after a the loss of a whale is obviously not a call to go out and kill whales. But in an ever more complex and volatile world, business leaders and policy makers would be well served in allowing nature a little more rein in playing out its course.

THERES BEEN AN UPSURGE OF INTEREST IN CONCEPT OF SOCIAL ENTREPRENEURSHIP

Over the last decade, there has been an upsurge of interest in the concept of social entrepreneurship driven by the changes occurring in the competitive environment faced by private, public and non-profit sectors. Most organisations are concerned about these changes and hence are proposing alternative forms of organised economic activity, hence the development of the socially-driven approach. Schumpeter (1934) suggested that there is a gap that traditional economic model and framework cannot address and hence the need for the emergency of socially-driven framework. For example, traditional approach of entrepreneurial drives is based on economic reality, agency theory, divorce of ownership from control, the need to optimise economic benefits of the owners/shareholders rather than meeting the social objective of masses and the disadvantaged group. According to Townsend & Hart (2008), organisations choose to organise their social entrepreneurship ventures under non-profit activities while other may prefer for-profit activities. Ridley-Duff (2008), use the term more than profit to describe the way entrepreneurship aims to combine both the economic and social aspects of it. Elkington and Hartigan (2008) suggested three concepts of social entrepreneurship, the non-profit ventures which deal mainly with non-profit activities, social business ventures encompassing for-profit activities and the hybrid non-profit ventures model where there is a combination of both the non-profit and for-profit activities.
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Florence Nightingale is a prominent UK history example of Social Entrepreneurship, one of the pioneers in modern nursing practices. She established the first school for nursing students in 1860 and today she remains an icon for health care workers and professionals. In recent times, philanthropists such as Bill Gates, Warren Buffet, Richard Brandson, Muhammad Yunnus (the founder of Grameen Bank of Bangladesh) just to mention but a few have been converted from pursuing economic goals to bringing about social transformation into the life of many (Ahonsi, 2009).

Literature Review Studies on social entrepreneurship have attracted many researches from different fields and disciplines. The philosophy fuelling social entrepreneurship is not new development, but it is still considered to be in a stage of infancy, hence little has been widely documented in this area. Although the term social entrepreneurship was originated in the 60s, its definition still remains fuzzy. The literature review will examine the definition of the two terms of the concept, namely, social and entrepreneurship. This approach aims to analyse the factors leading to the emergence and development of social entrepreneurship and the essence of social entrepreneurship and explore the potential similarities and differences between sociallydriven and commercially-driven entrepreneurships. What is Social Entrepreneurship? Bornstein (2005), stated that a social entrepreneur is characterised by intiative, creativity, energy obsessive, focus on results, capacity for self-correction, profound understanding of the market and above all, a deep commitment to building a just and humane world The concept of social entrepreneurship means different things to different researchers (Dees, 1998). Boschee (1998) referred to social entrepreneurship as not-for-profit initiatives in search of alternative funding strategies, or management schemes to create social value. Mair and Mart (2006) argued that social entrepreneurship refers to a process where resources are used and combined innovatively and opportunities are pursued in order to achieve social change and address social needs.

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Thus, socially-driven entrepreneurship has cut beyond the boundaries of economic theory of profit optimisation as the driving force for the purpose of establishing an entity. It explores the subject in interdisciplinary dimension- economics and business management, environmental and ecological management, corporate behaviour with its attendant responsibility.

Emergence of Social Entrepreneurship In recent times, researchers have moved forward the development of models and have attempted to infuse these various elements and facets with a view to enhancing and emancipating the socially disadvantaged group of the society. Some writers see marked distinctions between Economic Entrepreneurship and Socially Desirable Entrepreneurship. Alkire believes that the logical progression of

approximating development with economic emancipation is that: Income was the metric that conveyed utility, or value; therefore, a respectable economic strategy was to maximize national income per capita, with some correction for externalities and distribution.

Some writers believe that these externalities and unequal distribution of wealth underpin the reasons why there are economically disadvantaged group of people in the society and hence the reason for the emerging subject of socially-driven enterprise. Hajer (1995) referred to this as ecological modernisation theory. Other writers make further division between the economic and socially-driven entrepreneurship. They argued that they expect the liberal economic systems to self check and correct itself (e.g. Beckerman 1994; 2003).

However, Pearce (1988) and Pearce et al (1989), believe sustainable development is a function of economic growth, but suggested that human and technological interventions will be necessary in order to correct market failure.

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Writers such as Daly suggested and pointed to the distinction between economic growth and development as follows: Growth is a quantitative increase in the physical scale of throughput. Qualitative improvement of the use made of a given scale of throughput, resulting either from improved technical knowledge or from a deeper understanding of purpose, is called development. (Daly 1996: 31) On the other hand, Lutz asserted that authentic development is a function of meeting the basic material human needs of all (1992:166). Some authors, like human relations school advocates, Abraham Maslow emphasised economic growth and development must be consisted with meeting the fundamental needs of human for food, shelter, sleep, rest, social security and esteem needs of the majority and not the selection of few. Thus, this forms the cornerstone and the emergence of socially-driven enterprise concept.

Rahman (1992:174) argued that the basic human need is to fulfil our creative potential in ever new ways. These views are based on the premises that suggested satisfying human needs will include meeting economics and social objectives. Researchers such as Alkire listed various basic human needs and asserted that human development should be viewed from a multi-dimensional standpoint. He stated that from the most narrow economic to the list with the largest number of human needs included in the idea of improving the experience of human life on earth. (Alkire, 2002)

Holling (2002) emphasised the need for more collaborative, discursive strategies that promote quicker learning, flexibility and diversity. Some writers and practitioners questioned the wisdom of the emergency of socially driven entrepreneurship and questioned the idea behind the growth and popularity of this concept whether it is a replacement or a complement to free market management (Cho, 2006:51).

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Other distinction suggested that socially-driven ventures look out for the welfare of others and uplift social justices whereas economically-driven entrepreneurship is driven by greed. Other widely held views of the drawbacks of socially-driven ventures is that social ventures usually fail due to excessive risk taking, wasteful and lack of commercial competence. Kirchoff (1993) disagreed with this notion. His research showed that over 50% of socially-driven enterprises in the US formed in the late 70s are still functioning into many decades thereafter into the 2000s.

Thus far, various proponents of socially-driven entrepreneur have done much work, albeit less than what had been done in the commercially-driven fields. Hockerts (2006) criticised the broad nature and scope of the subject by asserting that contributions to knowledge may get lost in a quagmire of definitions Arguments for and against

Well, we live in a world filled with various natural and man-made disasters (war in Iraq and Afganistan (2003-2010), flooding in Pakistan (2010), earthquake in Heiti (2009), Tsunami in South East Asia (2006/2007) and the list goes on). Then who look after the victims? Various philanthropists (NGOs, Oxfam, Red Cross and the like of them). Even in the absence of these man-made and natural disasters, the worlds wealth are uneven distributed. Some popular opinion holds that 80% of worlds wealth is centred and enjoyed by 20% of the worlds population (Barendsen et al, 2004:pp43-50).

Thus, to increase the well being of disadvantaged majority, the use of the free market of which traditional entrepreneurial drive is based on can not meet this objective. The emphasis and emergent on social purpose, social entrepreneurship led to the field focusing primarily on entrepreneurial non-profit management (Thompson, 2002) and community ventures (Haugh, 2007; Haugh and Pardy, 1999). Most of these writers explored the differences, the divergence and convergence of these issues the similarities and differences between the orthodox and contemporary subject of commercial and socially-driven entrepreneurship.

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Sahlmans (1996), Austin et al (2006) and Weerawardena and Mort (2006) emphasised the dangers of pursuing of goal displacement from organisational maintenance taking over the social mission. This suggests that social goals cannot and should not be pursued exclusively without taking into account the need for the organisation for profit and non-for-profit to survive now and into the strategic terms.

WILL BUDGET PROMOTE ENTREPRENEURIAL UPSURGE? When economic indicators are not very promising, one thing which can bring cheers to everybodys life is an entrepreneurial activity in social, cultural, educational and technological fields. These mavericks will bring about new hope and generate new space for creativity to manifest, connection to be forged and empathy to pervade across sectors, spaces and social segments If this is the question I have to ask myself, then I expect a political consensus to emerge around certain key strategies. And that is possible only through bipartisan approach, taking a nation building as a common goal. Surely, different political parties may not agree on a common agenda for most things but at least there could be a few areas on which consensus can be built. Innovation based entrepreneurship development could be one such area

What do we need to do to promote entrepreneurship As I mentioned earlier, five steps involving a very difficult and risky journey of an innovator/entrepreneur are: [a] idea to proof-of-concept, [b] proof-of-concept to prototype, [c] prototype to product, [d] product to utility, and [e] proof of market, and development of supply chain, certification, testing, branding, etc. more than ninety percent ideas are aborted before the final stage for want of support. The country badly needs a nurturant eco-system for each of these stages of innovations.

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I am not sure if Rs 200 crore fund announced by finance minister P Chidambaram will be used for such risky steps in value chain or only for scaling up the solutions which have survived in market place. But regardless of this, parliament should really seriously discuss the health of eco-system for these stages. If we dont sustain the spirit of the creative people during these stages, country will not get boost in the long term growth engine. We should realise that not all innovations need to be diffused through market channels. Some need to be diffused through social channels. For different kind of ventures, we need different scaling up strategies. Social diffusion of eye testing or haemoglobin or iron testing facility for villages may not diffuse only through market channels. One of the innovators awarded under Anjani Mashelkar award for the innovation for the elderly has developed Rs 5000 solution for testing iron deficiency among people in a few seconds. Every primary health centre and school should have this device. Will public procurement policy ever encourage such innovations? Will market ever reach such facilities among the poorest people? When have we spent time to take annual roll call of all such technologies and institutional models of importance for common people and then audit all polices from the perspective of scaling these? Never. National Innovation Council has not spent ten minutes on this issue so far unfortunately. Hope things will change some day

Should scale be made enemy of sustainability? Not every innovation can and should diffuse widely. Entire agro-biodiversity would have been lost by now if such was the case. If Dhimaji district of Assam has high iron content in water which does not get completely removed even with the best local technology, will we develop water filters for possible diffusion only in one or few such districts? What is the incentive given to private actors to invest in products which will have limited diffusion? Should such needs be neglected. Will this not lead to birth of more ULFAs? Incidentally, leadership of ULFA, insurgent organisation came up from this region mainly. We can neglect such localised needs at our own peril.

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The project of keeping the country together will not be fulfilled if we continued to neglect such needs. I can list hundred other similar localised problems which are not getting attention of formal R and D system and we will not encourage local innovations either in those areas. We need to de-emphasise ex situ model of incubating entrepreneurship and encourage in situ model that we evolved at GIAN and National Innovation Foundation. In most cases, budding entrepreneurs cannot leave their families and location to stay in an incubator. Occasional meetings are fine but sustained long term stay in incubators is not possible for many entrepreneurs. We need to nurture the start-ups where they are.

I hope that we will gather the courage to converge and make budding innovators and entrepreneurs feel wanted and nurtured in the country. If innovators and entrepreneurs are not happy, future is bleak. Let us turn the leaf and for once and show that India can indeed develop an inclusive and assimilative model of development.

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INDIA RATED WORST ASIAN COUNTRY FOR ENTREPRENEURSHIP: 6 REASONS SAY WHY

Bangalore: India known for its talent tank, most of them who work for big organizations like NASA, Microsoft and the tech bellwethers and manufacturing giants it has produced over the years. Though India has seen many entrepreneurial ventures, it is still the worst for entrepreneurship in Asia, according to a Gallup poll. The reasons behind this are pointed to be widespread corruption, government hurdles, lack of funding and poor technology and training, which results in low efficiency and high start-up costs in India. So what are the major factors that let down India in this poll? Lets take a sneak peak

Willingness to take the risk of running a business is not a common trait among Indians Qualities required in entrepreneurs such as business thinking, optimism and persistence are common among Indians. But the most important part which is the willingness to take the risk of running a business is rare.

The report said, More than 60% of the Indian population possesses personality traits that are crucial for success as an entrepreneur - such as business thinking (69%), optimism (66%), and persistence (65%) - which suggests a wealth of entrepreneurial capacity. However, willingness to take the risk of running a business is not a common trait among a majority of Indians.

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Reliable support from honest and efficient government institutions is essential According to the poll, around 46 percent of Indians say the government is the biggest hindrance in starting a business. More than seventy percent believed corruption is widespread in the government. More than sixty percent agreed that corruption is widespread in business. This view was particularly high among current business owners (72 percent) and those planning to start a business in the next 12 months (80 percent).

Entrepreneurs

need

more

diversified,

localized

funding

at

the

initial

stage

The most helpful factor in becoming an entrepreneur in India is access to financial support. The study said, The key problem for entrepreneurs seems to be less about the availability of funding and more about finding the right type of funding.

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The majority of existing venture capital funds for start-ups are focused on exportoriented IT or mobile solutions. There are only very few venture capital funds facilitating startups that offer the high-demand products and services in the healthcare or energy sectors in India's massive domestic market.

Foreign

investors

need

to

understand

India's

business

culture

Another problem with funding is that the foreign investors pay no attention to India's unique market demands, talent supply and business culture. They often make wrong assumptions based on what has worked well in their home countries.

Additionally, in Indian startups there is a lack of angel funding and investor participation in companies management. Venture capitalists in India prefer to only finance expansion of existing businesses, rather than funding a start-up from scratch.

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Indian

entrepreneurs

need

more

access

to

training

and

mentorship

The report also said that only 22 percent of Indians who plan to start their business in the next 12 months have access to formal or informal training to start a business - which is much lower than the Asia average of 44 percent. Also there are not many entrepreneurs who offer their success stories for the young entrepreneurs to learn.

Finding

trusted

partners

is

another

big

problem

According to the survey, only 16 percent of Indians say that a non-relative can be a trusted business partner. Also there is a lack of judicial infrastructure to protect the trusting relationship between entrepreneurs and business partners or between entrepreneurs and customers.

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CHAPTER-5

RECOMMENDATIONS & LIMITAIONS

LIMITATIONS:

Secondary data can be general and vague and may not really help companies with decision making.

The information and data may not be accurate. The source of the data must always be checked.

The data maybe old and out of date. The sample used to generate the secondary data maybe small. The company publishing the data may not be reputable.

RECOMMENDATIONS: The time duration should be increased. The secondary data we use should be more accurate. The project should be based on primary research and company visits rather than secondary data.

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CHAPTER-6

CONCLUSION

Comprehensive Campaign A comprehensive campaign to raise the tempo of Entrepreneurship in India will necessarily need the concerted efforts of a number of agencies. Based on the narrative in the previous chapters and interviews with stakeholders, there are a few key action points that will encourage and enhance Entrepreneurship in the country. As seen in previous chapters, enhancing Entrepreneurship involves the community, family, academia, nancial players, government, industry, and potential entrepreneurs themselves. Promoting Entrepreneurship means encouraging people to be self-reliant in taking economic decisions and creating wealth and employment. NKC believes that Entrepreneurship has enormous scope in Indias growth story. Advice to Entrepreneurs: During the interviews, entrepreneurs were asked what advice they would like to offer to upcoming entrepreneurs. Below is a list of illustrative responses:

experiences, and to mentor upcoming entrepreneurs.

lusive approaches (address the needs of talent at all levels), develop incentives and bolster human resources translate business strategy into talent strategy.

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ally on marketing and nancial aspects. Cost is forgotten, quality never. focus on core strength and excel. especially in up-scaling hire individuals who are better than you; if you are responsible, give autonomy and divest authority.

What the Government Can Do Encourage a conducive business environment; ensure simplied startup pro cesses; improve the delivery time; reduce corruption; collate informational needs of start-ups; improve corporate governance norms; create an environment that will reduce risk; and encourage more seed funds and corporate players to provide start-up funding. In particular: -to-date information source for start-up entrepreneurs in the form of source books, web portals and one stop shops and widen dissemination of all relevant information. new businesses for company, social security and tax registrations.

Single Composite Application Form. ments and multiplicity of procedures.

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-class infrastructure. oper publicity and implementation of various promotional schemes and policies.

How can Chambers of Commerce/Industrial Associations/Other Networks Help?

meetings, discussions and networking. -size and large companies to reach out to young entrepreneurs.

networks, and beyond metropolitan cities and top educational institutions.

country.

leverage networks with successful entrepreneurs. platforms for discussing entrepreneurial best practices and experiences by holding nation wide workshop

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Role of Educational Institutions/R&D Centres

that encourage critical and lateral thinking; incorporate case studies of real life situations in the curriculum so that students are able to get a concrete feel of the outside world; introduce manuals in school curricula on How Things Work on various practical aspects of everyday living; explore ideas for exibility of vocational education with mainstream education for greater linkages between theory and practice.

to business ethics, early enterprise management, relevant aspects of scaling-up, Indian corporate law and relevant international laws in curricula, explore possibilities of establishing entrepreneurship schools at the undergraduate and post graduate levels such as the one envisaged at IIT Kharagpur, with possible alumni and NRI involvement. Business Incubation Centres

structures towards measurable performance outcomes and provide stake in the outcomes (through knowledge equity, etc.).

feasibility of taking an idea to market, understanding risk mitigation-measurementstrategy, cash ows, analysis of business failures, ethics etc and not only technical feasibility) where the nancial community can play a signicant role. Role of the Financial Community a major business opportunity. -ups.

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(SMERA-credit ratings, CIBIL-information disclosures, CART-credit appraisal tools, RAM-risk assessment models etc) as ways to increase risk appetite.

cost of credit to ratings (where more holistic ideas of risk can be evolved).

At the National Level Reward and acknowledge its role in wealth creation and employment generation.

communities not traditionally associated with business, especially from marginalized groups.

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CHAPTER-7

REFERENCES

http://msme.gov.in/ and http://www.laghu-udyog.com/ - The Ministry of Micro, Small And Medium Enterprises lists various government schemes for entrepreneurs

http://www.sidbi.in/ - The Small Industrial Development Bank of India works towards empowering Micro, Small and Medium Enterprises.

http://www.dsir.nic.in/tpdup/tepp/tepp.htm

The

Technopreneur

Promotion

Programme is run by Department of Scientic & Industrial Research. http://www.numsum.com/spreadsheet/show/48465 - This lists VCs based in India and/or making investments in Indian companies. http://www.ediindia.org/ http://articles.economictimes.indiatimes.com/2013-0125/news/36548273_1_young-entrepreneurs-seedfund-job http://swaroopch.com/notes/entrepreneurship_in_india/ http://thehatch.in/women-entrepreneurship-in-india/ Guy Kawasaki, The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything Paul Hawken, Growing a Business

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