Entrepreneurship in the

Twenty-First Century
1- The Entrepreneurial
Revolution
2- Entrepreneurship: An
Evolving Concept
3- Intrapreneurship:
Developing Corporate
Entrepreneurship
1 – The Entrepreneurial Revolution
 Entrepreneurs
Challenging The Unknown
Entrepreneurship:
A Perspective
Our Entrepreneurial
Economy
The Environment for
Entrepreneurship
 Predominance of New Ventures
in the Indian Economy
• 80% of Indian firms are SMEs
• The SME sector accounts for 50 per cent of the exports and is the
second largest employment provider, next to agriculture
• An estimated 13 million SMEs in India today
• Employ 30 million people
• Create 1 Million jobs per annum
• Contribute 34% of Export
• Contribute 40% of Industrial Output
• Grow much faster @ 12% than average industrial growth of 8%
• SME's contribution to national GDP is projected to go up to 22%
share of India's GDP by 2012 (from current share of 17%)
 Entrepreneurial Firms’ Impact
Entrepreneurial firms make two indispensable
contributions to the Indian economy:
– First, they are an integral part of the
renewal process that pervades and defines
market economies.
– Second, they are the essential mechanism
by which millions partake in and co-create
the Indian growth story.
 Trends in Research and Education
1. The entrepreneurial and managerial
domains are not mutually exclusive but
overlap to a certain extent.
2. Venture financing, including both venture
capital and angel capital financing as well
as other innovative financing techniques,
emerged in the 1990s with unprecedented
strength.
 Trends in Research and Education
3. Intrapreneurship (that is, entrepreneurship
within large organizations) and the need for
entrepreneurial cultures have gained much
attention during the past few years.
4. Entrepreneurial entry strategies have been
identified that show some important
common denominators, issues, and trade-
offs.
 Trends in Research and Education
5. More research on the psychological aspects
has emerged.
6. The risks and trade-offs of an
entrepreneurial career have been subject of
keen research interest.
7. Women and minority entrepreneurs have
emerged in unprecedented numbers.
8. The entrepreneurial spirit is universal.
 Trends in Research and Education
9. The economic and social contributions of
entrepreneurs have been shown to make
immensely disproportionate contributions.
10. Entrepreneurial education has become one
of the hottest topics at business and
engineering schools.
 The Age of Gazelles
• A “gazelle” is a business
establishment with at least 20%
sales growth every year (for five
years), starting with a base of at least
$100,000.
 Gazelles - Myths
• Gazelles are all in high tech
• Gazelles get venture capital
• Gazelles are all young
• Gazelles are all small
• Gazelles operate in international markets
 Gazelles - Innovation
• Gazelles are leaders in innovation.
• Gazelles produce twice as many product
innovations per employee as larger firms.
• Studies conducted by US Dept. of Commerce,
revealed that since World War II, 50% of all
innovations and 95% of radical innovations, have
come from new and smaller firms
 Gazelles - Survival
• The common myth is that 85% of all
firms fail in the first year.
• The more accurate statement is that
about half of all start-ups last
between 5 and 7 years.
 Emerging Trends: Internet and
E-Commerce
• Small and medium businesses (1-999 employees) in
India invested US $1.2 billion to boost their overall
internet infrastructure and solutions in 2007-08, a rise
of 33% yoy.
• Smaller ventures use the Internet for a variety of
operations, including customer-based identification,
advertising, consumer sales, business-to-business
transactions, e-mail, and private internal networks for
employees.

• Total SMB IT spending for 2007-08:US$8 billion (up by 24% yoy)

 The E-Commerce Challenge
• Electronic commerce (e-commerce)-
the marketing, promoting, buying,
and selling of goods and services
electronically, particularly via the
Internet- is the new wave in
transacting business.
 Advantages and Challenges of E-
Commerce for Entrepreneurial Firms
Advantages:
• Ability of small firms to compete with other
companies both locally and nationally.
• Convenient and easy way of doing business
transactions.
Challenges:
• Avoiding being a victim of fraudulent
activities online.
• Handling the costs required to maintain
the site.
 Developing a Web Site
• Attractive and Useful
• Marketing the Website
• “Stickiness”
Use of Internet Sites
• Company Information 93%
• Corporate image building 89%
• Product information 80%
• Advertising 78%
• Marketing 77%
• Customer communications 76%
Most Important Factors for
Customers to do Business Online
User-friendly and easy to navigate
54%
Good previous experiences

36%
Fast response time
36%
Relevant and updated content
27%
Bargain prices
15%
 Emerging E-Commerce Strategies

3-P Growth Model

1. Presence
2. Penetration
3. Profitability
 Emerging E-Commerce Strategies

Another Strategy
– Reach
– Richness
– Affiliation
 Entrepreneurial Opportunities
• Globalisation
• Internet
• High Growth Rate
• Large low-cost, high-skill labor force
• Low regulations post liberalisation
• New sources of Capital