MODULE II - ENTREPRENEURSHIP IN INDIA
CONCEPT OF BUSINESS HOUSES IN INDIA
In India, the concept of business houses refers to large and influential conglomerates or corporate groups that have diversified business interests across various industries and sectors. These business houses are typically family-owned or controlled by a small group of shareholders and are known for their significant impact on the Indian economy. They often have a dominant presence in multiple sectors, such as manufacturing, services, real estate, finance, and more. These conglomerates are characterized by their ability to mobilize resources, access capital, and exert substantial influence in both the business and political spheres. While they have played a crucial role in driving economic growth, investment, and job creation in India, they have also faced scrutiny over issues like corporate governance, competition, and concentration of economic power. Some well-known examples of Indian business houses include the Tata Group, Reliance Industries, Aditya Birla Group, and the Mahindra Group, among others.
CONTEMPORARY ROLE MODELS IN INDIAN BUSINESS: THEIR VALUES, BUSINESS PHILOSOPHY AND BEHAVIORAL ORIENTATIONS
Values: Values are a set of principles or beliefs that guide an individual or an organization's behavior and decision-making. They represent what is considered important, desirable, and morally.
Business Philosophy: Business philosophy is a set of guiding principles or fundamental ideas that define an organization's approach to conducting business. It reflects the organization's core values, goals, and strategies, outlining its purpose and direction. right, shaping how people interact with others and the world around them.
Behavioral Orientations: Behavioral orientations refer to the habitual patterns of behavior, attitudes, and approaches that individuals or organizations exhibit in various situations. These orientations reflect how people or entities typically respond to challenges, opportunities, and interactions.
There are several contemporary role models in Indian business, including:
RATAN TATA: Ratan Tata was born on December 28, 1937, in Mumbai, India, into the affluent Tata family. He graduated with a degree in architecture from Cornell University and later pursued management studies at Harvard Business School. Ratan Tata joined the Tata Group in 1962 as a member of the Tata Steel division. He started his career on the shop floor, gaining valuable hands-on experience. Over the years, Ratan Tata held various positions within the Tata Group, including roles at Tata Motors and Tata Consultancy Services (TCS). His leadership and innovative thinking played a crucial role in shaping the group's future. In 1991, Ratan Tata was appointed Chairman of Tata Sons, the holding company of the Tata Group. Under his leadership, the group expanded globally, acquiring several international brands, including Jaguar Land Rover, Tetley, and Corus Steel.
Values:
Integrity: Ratan Tata is renowned for his unwavering commitment to integrity and ethical conduct. He places a high value on honesty, transparency, and moral uprightness in all aspects of business and life.
Philanthropy: He deeply values philanthropy and believes in using wealth to benefit society. This is exemplified through the philanthropic efforts of the Tata Trusts, which focus on healthcare, education, and community development.
Inclusivity: Ratan Tata has a strong commitment to inclusivity and diversity. He has actively promoted equal opportunities and diversity within the Tata Group, recognizing the importance of diverse perspectives in decision-making.
Business Philosophy:
Sustainability: Ratan Tata's business philosophy revolves around the long-term sustainability of the Tata Group. He prioritizes responsible and sustainable business practices over short-term gains, aiming for the group's continued success over generations.
Global Expansion: Under his leadership, the Tata Group embarked on a path of global expansion. This strategy aimed to make the group a competitive global player, expanding its presence in various industries and markets.
Innovation: Ratan Tata emphasizes the importance of innovation in business. He believes in fostering a culture of innovation and has actively supported research and development within the Tata Group.
Behavioral Orientations:
Humility: Despite his iconic status in the business world, Ratan Tata is known for his humility and approachability. He often exhibits a down-to-earth demeanor and is known to travel in economy class.
Bold Decision-Making: He is not afraid to make bold and unconventional decisions, as seen in the Tata Group's acquisition of Jaguar Land Rover during a global economic downturn, which has proved to be a strategically valuable move.
Mentoring: Ratan Tata has been a mentor to numerous entrepreneurs and startups in India. He actively engages in mentoring and nurturing emerging talent and innovative ideas.
Adaptability: He has shown adaptability by embracing new technologies and business models, including the Tata Group's ventures into digital businesses and emerging industries.
MUKESH AMBANI: Mukesh Ambani, born on April 19, 1957, is an influential Indian businessman and the Chairman and Managing Director of Reliance Industries, one of India's largest conglomerates. He holds a degree in Chemical Engineering from the University of Mumbai and an MBA from Stanford University. Under Mukesh Ambani's leadership, Reliance Industries diversified and expanded into various sectors, including petrochemicals, refining, telecommunications, and retail. He played a pivotal role in the growth of Reliance Jio, which disrupted India's telecommunications industry by providing affordable high-speed data services. Mukesh Ambani's vision includes building a digital India with widespread internet access and enhancing the country's digital infrastructure. His business acumen and strategic investments have made Reliance Industries a global force, attracting partnerships with tech giants like Facebook and Google. Ambani's wealth and influence have made him one of the world's wealthiest individuals, and his commitment to innovation and sustainable practices has a significant impact on India's economic landscape.
Values:
Family Values: Mukesh Ambani places a strong emphasis on family values and unity. The Reliance Group is a family-owned conglomerate, and he has worked closely with his family members in managing and expanding the business.
Integrity: Integrity is a core value for Ambani. He values honesty, transparency, and ethical behavior in business dealings and corporate governance.
Business Philosophy:
Digital Transformation: Mukesh Ambani's business philosophy centers around digital transformation. He envisions a digitally connected India and has invested heavily in Reliance Jio to provide affordable high-speed internet access to millions of Indians.
Diversification: He believes in diversifying the conglomerate's business portfolio, expanding into telecommunications, retail, and technology. This diversification strategy aims to ensure the long-term sustainability and growth of Reliance Industries.
Innovation: Ambani has a strong belief in innovation and investing in emerging technologies. He aims to keep Reliance at the forefront of technological advancements, driving growth through innovation.
Behavioral Orientations:
Visionary Leadership: Mukesh Ambani is known for his visionary leadership, making bold moves to transform industries. His strategic thinking has reshaped India's telecommunications and retail sectors.
Adaptability: He has demonstrated adaptability by swiftly pivoting his businesses to embrace digital technologies, making Reliance Industries a major player in e-commerce, digital services, and technology.
Risk-Taking: Ambani is not risk-averse and has taken calculated risks in entering new markets and industries. His boldness in launching Reliance Jio disrupted the Indian telecom market and led to rapid growth.
Customer-Centric: His focus on customer-centric strategies is evident in the customer-friendly pricing and services offered by Reliance Jio and Reliance Retail.
Philanthropy: Mukesh Ambani has been involved in philanthropic activities, contributing to various social and educational initiatives in India.
KIRAN MAZUMDAR - SHAW
Kiran Mazumdar-Shaw, born on March 23, 1953, is a prominent Indian entrepreneur and the Chairperson and Managing Director of Biocon Limited. She holds a Bachelor's degree in Zoology from Bangalore University and a Master's degree in Malting and Brewing from the University of Melbourne. In 1978, Kiran Mazumdar-Shaw founded Biocon, a biotechnology company based in Bangalore, India. Under her leadership, Biocon became India's leading biopharmaceutical firm, specializing in areas such as bio-similars, research services, and insulin production. Mazumdar-Shaw is known for her pioneering work in making affordable insulin and other biopharmaceuticals accessible to patients globally. She has received numerous awards and accolades for her contributions to biotechnology and entrepreneurship, including the Padma Shri and Padma Bhushan, two of India's highest civilian honors. Her business acumen, dedication to innovation, and commitment to healthcare have made her a role model for aspiring entrepreneurs, particularly women, in India and around the world.
Values:
Innovation: Mazumdar-Shaw values innovation as the driving force behind progress in biotechnology and healthcare. She constantly seeks novel solutions to complex medical challenges.
Ethical Practices: Integrity and ethical conduct are fundamental values for her. She places a high emphasis on maintaining ethical standards in business operations and research.
Inclusivity: Kiran Mazumdar-Shaw is a strong advocate for inclusivity and gender diversity in the workplace. She actively promotes the participation of women in STEM fields and leadership roles.
Business Philosophy:
Affordable Healthcare: Her business philosophy centers around making quality healthcare accessible and affordable. Biocon's focus on bio-similars and affordable insulin exemplifies this commitment.
Global Expansion: She believes in the global expansion of Biocon's operations and markets. Under her leadership, Biocon has established a global presence and formed strategic partnerships worldwide.
Research and Development: Mazumdar-Shaw places a significant emphasis on research and development. She believes that innovative research is the foundation of biotechnology and pharmaceutical advancements.
Behavioral Orientations:
Persistence: She is known for her unwavering persistence and determination in the face of challenges. Her journey in building Biocon from scratch is a testament to her resilience.
Collaboration: Mazumdar-Shaw values collaboration and partnerships. She actively collaborates with international pharmaceutical companies and research institutions to advance healthcare solutions.
Advocacy: She is a vocal advocate for the biotechnology industry and healthcare policy reform in India. Her advocacy efforts have helped shape policy decisions related to biotechnology and pharmaceuticals.
Mentorship: Kiran Mazumdar-Shaw has been a mentor to aspiring entrepreneurs and women in leadership roles. She actively supports and guides individuals in their professional journeys.
ADI GODREJ
Adi Godrej, born on April 3, 1942, is an Indian industrialist and the Chairman of the Godrej Group, one of India's oldest and most diversified conglomerates. Adi Godrej took over the reins of the family business in 2000 and played a pivotal role in modernizing and expanding the Godrej Group's presence globally. Under his leadership, the Godrej Group diversified into various sectors, including consumer goods, real estate, appliances, and agribusiness. Godrej is known for promoting sustainability and environmental responsibility in business operations, with a focus on producing eco-friendly products. He has actively championed corporate social responsibility and philanthropy through the Godrej Foundation, which is involved in education, healthcare, and rural development. Adi Godrej has received numerous awards and recognitions for his contributions to business and philanthropy in India. His business acumen, commitment to sustainability, and ethical leadership have made him a respected figure in Indian industry and business. Under his guidance, the Godrej Group has expanded globally, with a presence in over 60 countries and a reputation for quality and innovation. Adi Godrej's leadership has played a crucial role in the growth and diversification of the Godrej Group, making it one of India's leading business conglomerates.
Values:
Ethical Conduct: Adi Godrej values ethical conduct in business. He upholds principles of honesty, transparency, and integrity in all aspects of the Godrej Group's operations.
Sustainability: He places a high value on sustainability and environmental responsibility. The Godrej Group under his leadership has focused on producing eco-friendly and sustainable products.
Business Philosophy:
Diversification: Adi Godrej's business philosophy centers around diversification. Under his leadership, the Godrej Group diversified into various sectors, reducing risk and ensuring long-term growth.
Innovation: He believes in fostering innovation within the organization. The Godrej Group continuously invests in research and development to stay ahead in competitive markets.
Social Responsibility: Adi Godrej emphasizes corporate social responsibility. The Godrej Foundation, under his guidance, is actively involved in education, healthcare, and rural development, reflecting his commitment to societal welfare.
Behavioral Orientations:
Inclusivity: He is known for fostering an inclusive work culture. The Godrej Group promotes diversity and equal opportunities, irrespective of gender, background, or ethnicity.
Global Perspective: Adi Godrej has a global perspective on business. Under his leadership, the Godrej Group has expanded its global footprint, operating in over 60 countries.
Philanthropy: He actively engages in philanthropic activities, demonstrating a behavioral orientation towards giving back to society and addressing social issues.
Thought Leadership: Adi Godrej is a thought leader in the business community. He actively participates in industry associations and contributes to discussions on economic and business matters.
UPASANA TAKU (MOBIK WIK)
Upasana Taku is an Indian entrepreneur renowned for her pivotal role in co-founding MobiKwik, a leading digital payments platform. Armed with a master's degree in management science and engineering from Stanford University, Upasana, alongside her husband Bipin Preet Singh, founded MobiKwik in 2009 with a vision to revolutionize digital payments in India. Under her leadership, MobiKwik swiftly evolved from a mobile recharge and bill payments platform to a multifaceted financial services provider, offering digital wallets, lending, and insurance services. Upasana's innovative spirit has driven the company's expansion and positioned MobiKwik as a pioneer in India's fintech landscape, promoting financial inclusion and transforming the way Indians engage with digital finance. Her enduring commitment to leveraging technology for financial empowerment has solidified her status as a trailblazer in the Indian startup ecosystem.
Values:
Innovation: Upasana values innovation and technology as essential drivers of progress. She is committed to continually enhancing MobiKwik's offerings and user experience through technological advancements.
Customer-Centricity: Customer satisfaction is a core value for her. She places a high emphasis on providing convenient and user-friendly digital payment solutions that cater to the needs of MobiKwik's diverse customer base.
Financial Inclusion: Upasana is deeply committed to financial inclusion. She values providing access to digital financial services for underserved and unbanked populations, aligning with MobiKwik's mission.
Business Philosophy:
Digital Transformation: Her business philosophy centers around leveraging digital technology to transform the way Indians manage their finances. MobiKwik's digital wallet and financial services align with this vision.
Diversification: She believes in diversifying MobiKwik's offerings to cater to a wide range of financial needs, from mobile recharges to digital lending and insurance services.
Behavioral Orientations:
Innovation-Driven: Upasana is known for her innovation-driven approach, frequently introducing new features and services to stay ahead in the competitive fintech industry.
Financial Inclusion Advocate: She actively advocates for financial inclusion and works towards making digital financial services accessible to all segments of society.
Entrepreneurial Leadership: As an entrepreneur, she displays strong leadership qualities, driving MobiKwik's growth and market presence.
Market Expansion: Her behavioral orientation includes a focus on expanding MobiKwik's market reach, including exploring international opportunities.
FAMILY BUSINESS IN INDIA
Definition of family owned business: According to Barry “an enterprise which, in practice, is controlled by the members of a single family is termed as family business.”
Meaning of family owned business - Family business is a business (commercial organization) in which two or more family members are involved and major ownership and control is vested within the family. Decision making in this kind of organization is influenced by many generations of a family. Every member has the ability to influence the vision of the business and the willingness to use this ability to achieve a higher goal.
Characteristics of family owned business
Ownership: Family business enterprise is actively owned and run (managed) by two or more members of the single extended family.
Membership: Family business enterprise ensures effective utilization of in-house talent in the family. Family members are employed in key positions in the business enterprise. Relationships amongst the family members influence their respective positions in the enterprise.
Succession Planning: Succession planning is an important decision in the business. The succession of the family business goes to the next generation thus, it is important to determine who will take over leadership and/or ownership of the company when the current generation retires or dies.
Management and Operations: Generally, in these business enterprises the senior most member of the family is the head of the business and takes all the crucial decisions. All the members have faith in the founder. This results in a uniform mindset of the members which ensures uniformity in operation.
Long-term Orientation: The family business is not dissolved by the death of the founder or the owner as the authority or ownership passes to the next generation. Also, owners of family businesses are not only concerned with the financial results of the business. They value the past and plan for the future with the perspective of their next generation. Thus, family businesses generally survive through the tough and rough times and perform well in the long term.
Mutual Influence: Policies of the family business enterprise are influenced by the family members in the mutual interest of family and business.
Embedded in Cultural Values: In India, family businesses are predominantly caste-based, and their roots run deep and are embedded in family values and traditions. As a result, their respective cultures can be seen in the management, operations, and decision-making process of the business.
Concentrated Structure: Ownership and management of family businesses are handled by family members. Additionally, family members serve on the boards of directors of the business. Due to their family-controlled nature, these businesses are often fast-moving, with quick decision-making processes because of the lack of external influences.
Importance of family business in India
Role in Economic Development: Across the globe, family businesses play a vital role in the economic development of the countries. Family businesses are present in many sectors, including the retail sector, small industry and service sector. They also contribute substantially to the national GDP. A study focusing on Indian family firms was conducted by Bang, Ray and Ramachandran (2017). The study looked at listed firms in the period 1990-2015. Ninety-one percent of the listed firms are family firms, which contribute greatly to the growth of the Indian economy. It was found out that the listed family firms contributed 26 percent of the GDP (total income).
Role in Industrialisation: Family business groups have dominated the Indian industrial sector since its independence. Today, large scale manufacturing companies in the organized sector are controlled by Indian families, such as the Tata, Birla, and Ambani families, who have promoted various industries. The Tata Group, for instance, is involved in steel, commercial vehicles, passenger cars, light-duty vehicles, power, chemicals, hotels, tea, coffee, software, and other industries. Birla Group has established companies in multiple industries like textiles, fiber, aluminum, cement, carbon black, apparel, petroleum, telecom, IT and software. The Reliance Group operates across multiple industries, like Petrochemicals, oil refining and exploration, textiles, telecom, and finance.
Role in Development of Entrepreneurship: Family business inculcates the spirit of entrepreneurship and contributes toward its development. In a country like India it paves way for various families to initiate and bring up new ventures in the country.
Role in Social Development: Family businesses also contribute significantly in the social development of a country. Many big hospitals, educational Institutes, basic infrastructure such as roads etc are developed by big family businesses. For instance, Tatas are also respected for their contribution in the social development of the society. They have set the ground for Corporate Social Responsibility in India.
Role in Business Development: Small family businesses focus their effort and resources to develop and manage a small range of segments with specific products and services. They typically dedicate a high degree of attention to managing relationships with partners, suppliers, employees, channel partners, and customers. Consequently, interactions with stakeholders are more effective, issues are resolved quicker, and clients are better served, all of which increase stickiness. For smaller businesses, this can be a competitive advantage. They have flexible working hours and as the decision making power is restricted to one or two key members it results in speedy decisions.
Challenges of family business in India
Innovation for a competitive advantage: The business environment today is very competitive. To survive and grow in this competitive environment it becomes very important to innovate and give a unique value proposition to the customers. To innovate, the business goals have to be broadened and new strategies are to be formulated. This may mean that businesses may have to leave the age-old style of functioning. But family businesses may remain confined to their age-old practices and not invest in research and development.
Limited Talent: In family business owners and managers are by and large the family members. Members of the family may not necessarily be talented and capable of taking the company’s legacy forward. Attracting the right talent from outside the family is crucial and retaining them is even more important.
Lack of Succession Planning: There is lack of efficient succession planning, mentoring and developing the next generation of successors and leaders. Family businesses have to give proper attention to this issue.
Technology Needs: With the changing environment and rapid technological developments, the business needs to adapt to the new technological advancements or bring in new, if need be. This may mean that they may have to part with the older business models which have been passed on to the present generation.
Sibling Rivalry: Sibling Rivalry is something that needs no explanations. All the heirs of the family get share in the business. Some may do well and flourish further, some may not. This often creates rivalry and pulling down each other is started even at the cost of organizational resources. This rivalry, if remains unsolved, may lead to split in the family business.
Internal Conflict: Interest of the family members of family business is varied. This may disturb business harmony. Handling this internal conflict is very difficult. If it is not handled properly, this may lead to failure of the business.
Biased Decision-Making: There is always a possibility that decisions in the family business may be biased for non-family members and employees of the business. The family members may try to impress upon their own ideas on the other members.
Too Much Emotional Attachment with Business: It is always said that one should always be passionate about the business but not be emotional as it may interfere with the tough decisions which might have to be taken for the growth of business.
Unclear Roles and Responsibilities: There is often a lack of proper documentation which defines the roles and responsibilities of the members of the family in family business organization. This may lead to chaos and mismanagement.
Lack of Professionalism: Professional business cultures are the result of formal processes, which include setting clear goals and enforcing rules, as well as hiring and promoting employees based on their potential to contribute. However, in many family businesses, the informal structure and culture may cause confusion among roles, lead to lack of talent, and make it impossible for values, ethics, and philosophies to be defined.
Limited Finance: Family businesses have limited financing options since they cannot raise large amounts of capital on their own, and external financing options may not be attractive to them as outside debt may lead to significant influence over the company. For family businesses, determining where and how to get the capital and resources needed to grow can be a challenge.
CONFLICT OF FAMILY BUSINESS
Succession Planning:
Disputes over choosing the next leader or leaders.
Sibling rivalries and disagreements about qualifications.
Concerns about fairness and favoritism in the succession process.
Ownership and Equity:
Conflicts regarding ownership stakes and equity distribution.
Disagreements about voting rights and control.
Questions about the allocation of profits among family members.
Roles and Responsibilities:
Conflicts over job titles and authority.
Differences in perceived responsibilities.
Lack of clear job descriptions leading to ambiguity.
Strategic Direction:
Diverse views on the future direction of the business.
Disagreements about expansion, diversification, and investments.
Conflicting visions and goals among family members.
Communication and Transparency:
Poor communication practices causing misunderstandings.
Lack of transparency leading to resentment.
Inadequate communication channels hindering effective discussions.
Generational Differences:
Clashes due to differing generational approaches to business.
Conflicts regarding technology adoption, modernization, and innovation.
Tensions between adherence to tradition and embracing change.
Financial Matters:
Disputes about compensation, bonuses, and financial management.
Conflicts arising during economic downturns or financial challenges.
Personal Conflicts:
Pre-existing personal conflicts among family members spilling over into the business.
Difficulty in maintaining a professional working environment.
CONFLICT IN FAMILY BUSINESS AND ITS RESOLUTION
Conflict is a common occurrence in family businesses, and if not managed effectively, it can lead to significant challenges, including reduced productivity, declining business performance, and damaged relationships. Here are some steps that can be taken to resolve conflicts in a family business:
Acknowledge the conflict: The first step towards resolving conflict in a family business is acknowledging its existence. It is important to recognize the root cause of the conflict and communicate openly with all parties involved.
Establish ground rules: Establishing ground rules and creating a safe environment for communication is essential to resolving conflicts in a family business. This includes listening actively, speaking respectfully, and avoiding personal attacks.
Bring in a neutral third party: A neutral third party, such as a mediator or an advisor, can help facilitate discussions and find common ground between conflicting parties.
Focus on the issues: It is essential to focus on the issues at hand and avoid getting sidetracked by personal conflicts or differences. This includes discussing specific issues, finding common goals, and identifying potential solutions.
Seek legal advice: In some cases, conflicts in a family business may require legal intervention. Seeking legal advice can help to resolve conflicts and protect the interests of all parties involved.
Develop a plan: Once a resolution has been reached, it is important to develop a plan to implement it. This includes outlining specific steps, identifying roles and responsibilities, and setting timelines for completion.
In summary, resolving conflicts in a family business requires open communication, active listening, and a focus on the issues at hand. By taking a collaborative approach and seeking outside assistance if necessary, family businesses can successfully resolve conflicts and strengthen relationships.
INITIATIVES OF GOVERNMENT OF INDIA TO PROMOTE ENTREPRENEURSHIP
The Government of India has launched several initiatives over the years to promote entrepreneurship and foster a culture of innovation and job creation. These initiatives aim to provide support, funding, and a conducive ecosystem for aspiring entrepreneurs. Here are some key initiatives:
STARTUP INDIA - Startup India is a flagship initiative launched by the Government of India in 2016 to catalyze and support entrepreneurship and innovation in the country. It offers a range of benefits to registered startups, including tax exemptions, simplified compliance procedures, access to funding through the Fund of Funds for Startups (FFS), and facilitation of intellectual property rights protection. The initiative aims to create a nurturing ecosystem for startups, fostering economic growth, job creation, and technological advancement by reducing regulatory burdens and providing valuable resources and incentives to emerging businesses.
STANDUP INDIA - Standup India is a government-backed initiative launched in 2015 by the Government of India with the primary objective of promoting entrepreneurship and financial inclusion among women and marginalized communities, specifically Scheduled Castes (SC) and Scheduled Tribes (ST). Under this program, individuals from these groups can access bank loans ranging from INR 10 lakh to INR 1 crore to establish or expand their enterprises in manufacturing, trading, or services sectors. The initiative also encourages mentorship and offers flexible repayment structures, aiming to empower these communities, create job opportunities, and reduce economic disparities in the country.
MAKE IN INDIA - Make in India is an ambitious government-led initiative launched by the Government of India in 2014 to transform the nation into a global manufacturing and investment hub. With a focus on fostering innovation, ease of doing business, and infrastructure development, Make in India encourages both domestic and foreign companies to manufacture their products within the country. The initiative aims to boost industrialization, generate employment, enhance the share of manufacturing in the GDP, and create a conducive environment for businesses by simplifying regulations and reducing bureaucratic hurdles, ultimately driving economic growth and positioning India as a competitive global manufacturing destination.
SKILL INDIA - Skill India, launched by the Government of India in 2015, is a nationwide campaign aimed at addressing the critical need for skill development and vocational training across diverse sectors and industries. The initiative seeks to empower India's youth with employable skills, making them job-ready and capable of meeting the demands of the rapidly evolving job market. Skill India promotes a range of programs and courses, from traditional trades to cutting-edge technologies, and fosters collaboration between government, industry, and training providers. By enhancing the skills and employability of its workforce, Skill India contributes to economic growth, reduces unemployment, and empowers individuals to secure sustainable livelihoods, thereby bolstering the country's overall development.
DIGITAL INDIA - Launched by the Government of India in 2015, Digital India is a comprehensive initiative aimed at leveraging technology to transform the nation into a digitally empowered society and knowledge economy. This visionary campaign seeks to bridge the digital divide by promoting widespread digital literacy, expanding internet access, and enhancing digital infrastructure. Digital India encompasses various programs and projects, including the promotion of e-governance, the development of smart cities, the rollout of digital identity (Aadhaar), and the facilitation of digital financial services. By embracing digital technologies, this initiative aims to drive innovation, improve government services, promote economic growth, and empower citizens with access to information and opportunities in the digital era.
NATIONAL SKILL DEVELOPMENT MISSION - The National Skill Development Mission is a comprehensive government initiative in India launched in 2015 with the primary objective of enhancing the employability and skills of the country's workforce. It focuses on providing industry-relevant training, certification, and skill development across diverse sectors, bridging the gap between the demand for skilled labor and the available workforce. Through programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and partnerships with industry stakeholders, training providers, and educational institutions, the mission aims to equip millions of Indian youth with the skills needed for sustainable employment and economic growth, ultimately fostering a more skilled and competitive workforce in the nation.
ATAL INNOVATION MISSION (AIM) - The Atal Innovation Mission (AIM) is a flagship initiative of the Government of India launched in 2015 to foster innovation and entrepreneurship among students, startups, and entrepreneurs. AIM aims to create a culture of innovation and creativity by providing crucial support through programs such as Atal Tinkering Labs (ATLs) in schools, Atal Incubation Centers (AICs) for startups, and Atal Community Innovation Centers (ACICs) for rural innovation. This mission seeks to stimulate innovation, research, and development in the country, empowering individuals and organizations to harness their creative potential and contribute to India's technological and economic advancement.
MUDRA YOJANA - The Pradhan Mantri MUDRA Yojana (Micro Units Development and Refinance Agency) is a government scheme launched in 2015 in India to facilitate the funding needs of small and micro-enterprises, particularly those in the unorganized sector. MUDRA provides financial support through various lending institutions, enabling entrepreneurs to access loans and credit facilities for starting, expanding, or upgrading their businesses. The scheme categorizes loans into three segments - Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh) - based on the scale and stage of the enterprise. By providing affordable and accessible credit, MUDRA Yojana aims to promote entrepreneurship, boost economic growth, and create employment opportunities across India, especially among those in the informal sector.
WOMEN ENTREPRENEURSHIP
Meaning of women entrepreneurs - A woman or a group of women who initiate, organize and run a business enterprise. They initiate and manage businesses with the goal of generating profits, creating job opportunities, and contributing to economic growth.
Need of women entrepreneurs
Economic Growth: Women entrepreneurs significantly contribute to economic growth by creating jobs, generating revenue, and fostering innovation. Encouraging women to start and run businesses helps expand the overall economy.
Gender Equality: Women's participation in entrepreneurship is a crucial step towards achieving gender equality. Entrepreneurship provides women with economic independence, decision-making power, and the ability to challenge traditional gender roles.
Empowerment: Entrepreneurship empowers women by giving them control over their financial resources and the opportunity to pursue their passions and interests. This empowerment can lead to greater self-esteem and self-confidence.
Wealth Creation: Women entrepreneurs can accumulate wealth and assets, improving their economic well-being and providing financial security for themselves and their families.
Job Creation: Women-owned businesses often create employment opportunities not only for the women themselves but also for others in their communities. This helps reduce unemployment and poverty levels.
Innovation: Women bring diverse perspectives and unique ideas to the business world. Encouraging their participation in entrepreneurship fosters innovation and contributes to a more dynamic and competitive business landscape.
Community Development: Women entrepreneurs often reinvest in their communities, supporting local development initiatives and contributing to improvements in education, healthcare, and infrastructure.
Role Models: Successful women entrepreneurs serve as role models and sources of inspiration for other women and girls, encouraging them to pursue entrepreneurial endeavors and break gender stereotypes.
Global Competitiveness: Nations with higher levels of women's participation in entrepreneurship tend to be more competitive on the global stage. Encouraging women's entrepreneurship can enhance a nation's overall economic competitiveness.
Diversity and Inclusion: Promoting women entrepreneurs is a key component of fostering diversity and inclusion in the business world, leading to a more equitable and representative entrepreneurial ecosystem.
Growth of women entrepreneurs
Changing Societal Norms: Evolving social norms and attitudes towards women's roles in society have encouraged more women to pursue entrepreneurship as a viable career option.
Education and Skill Development: Increased access to education and skill development programs has equipped women with the knowledge and abilities needed to start and manage businesses effectively.
Government Policies and Support: Many governments have implemented policies and programs to support women entrepreneurs. These include financial incentives, training, and access to capital.
Access to Financing: There has been a greater focus on providing women with access to financial resources, including loans, grants, and venture capital, to help them start and scale their businesses.
Networking and Mentorship: The availability of networking opportunities and mentorship programs has helped women entrepreneurs connect with experienced business leaders and learn from their insights.
Technology and E-commerce: The rise of technology and e-commerce has created new opportunities for women entrepreneurs to reach a global market with their products and services.
Diverse Business Models: Women entrepreneurs have pursued a wide range of business models, including online businesses, micro-enterprises, and social enterprises, allowing for flexibility and innovation.
Recognition of Diversity: The recognition that diverse leadership and perspectives contribute to business success has led to increased support for women entrepreneurs.
Global Initiatives: International organizations and initiatives have highlighted the importance of women's economic participation and entrepreneurship as critical drivers of sustainable development.
Women Entrepreneurship Networks: The establishment of various women entrepreneurship networks and associations has provided platforms for collaboration, learning, and sharing experiences.
Problems of Entrepreneurs
Problem of Finance: To raise finance, they do not have properties in their names to use them as collateral securities. Thus, their access to external sources of funds is restricted. They have to rely on their own savings and negligible loans from friends and relatives. They have to satisfy themselves with small business operations. Because of limited funds, they are not able to (a) stock raw materials; and (b) spend on advertising.
Limited Mobility: Due to primary household responsibilities towards her family, her time gets divided between the two worlds. She has restricted timings for work due to which, she is not in a position to travel frequently and be away for longer periods. Thus, her mobility is restricted. This also has an implication on business,
Lack of Education: Women have a lower rate of literacy. Nearly 60% of the women are illiterate in India, because of which they are not aware of the latest developments that have taken place in technology. Low level of education results in low achievement motivation amongst women entrepreneurs.
Male dominated society: A woman is dominated by men in her family as well as business. Often she has to obtain permission from men for almost everything. They are not treated as equals. Her freedom is restricted. She always has to consult and get the approval of men.
Low risk-bearing ability: This is so because right from the childhood, her parents take decisions for her and after marriage her husband takes over. She is protected throughout and thus the risk bearing ability gets reduced.
Social recognition: Society does not give due recognition to women entrepreneurs. They are looked down as small and weak. On account of the above mentioned reasons, the enterprises of women face several problems in finance, marketing and expansion, etc.
Access to Technology: Access to technology and digital resources can be limited in certain areas, which can be a barrier for women entrepreneurs who want to leverage technology for their businesses.
Legal and Regulatory Barriers: Some regions may have legal and regulatory barriers that disproportionately affect women entrepreneurs, such as property rights or business registration requirements.
SCHEMES RELATED TO WOMEN ENTREPRENEURSHIP
Indira Mahila Yojana (IMY) was launched in August 1995 to give education. awareness, income generation capacity and empowerment to women. This has to be implemented through the self-help groups at the grassroot level.
Rashtriya Mahila Kosh (RMK) was established in 1992 with a fund of Rs. 31 crores to meet the needs of poor women by giving them loans. It also organises training, apprenticeship and orientation programmes for trainees under the Indian Mahila Block Societies (IMBS). With a credit support of Rs. 2,500 to Rs. 3,000, women have been able to double or triple their daily income. The activities undertaken are dairying, petty shop keeping and investment on the agricultural operations. RMK has disbursed Rs. 16 crores and the recovery rate is 92% in the last three years.
NORAD (Norwegian Agency for International Development) was established in 1983 to help the educated and uneducated women financially in non-traditional areas of business such as electronics, computer programming, manufacturing of watches, printing, readymade garments, etc.
ARVIND' was started by the National Bank for Agriculture and Rural Development (NABARD). It provides loans up to Rs. 10 lakhs to women who work collectively in agriculture for their economic development.
DWCRA (Development of Women and Children in Rural Areas) was launched in 1982 by the Rural Development Department Scheme to support women's income generation activities through a group of 15 to 20 women in each group. The main objective of this programme is to strengthen the economy of rural women by giving them loan and economic assistance to develop their skill. efficiency and ability to meet their liabilities.
TRYSEM is a sub-plan of Integrated Rural Development Programme. It gives training to the young unemployed women (and also for men) for self-employment. The trainees get a stipend of Rs. 150 per month during the training period. In this programme, 40% of total seats are reserved for women.
The Government of Tamilnadu established Tamilnadu Corporation for Development of Women Limited (TNCDW) for development and empowerment of women. It is a nodal agency for implementation of various projects. The "Mahalir Thittam' scheme of the State government is being implemented by TNCDW.
Special entrepreneurship developments (E.D.) programmes for women with a view to encourage them to enter industry. Product and process-oriented courses enabling women to start small scale industries are also recommended.
The IDBI has set up the Mahila Udyam Nidhi (MUN) and Mahila Vikas Nidhi (MVN) schemes to help women entrepreneurs. MUN provides 15% equity assistance for a new project, its cost not exceeding Rs. 10 lakhs. Eligible entrepreneurs are required to bring in a token contribution of 10% and are allowed to retain central or state investment subsidies, if any, to meet the working capital requirements.
