See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/366325461

Entrepreneurship and Economic Sustainability

Book · January 2023

CITATIONS READS
0 703

4 authors:

Hesham A E Magd Shad Ahmad Khan

Modern College of Business and Science University of Buraimi
78 PUBLICATIONS 1,185 CITATIONS 58 PUBLICATIONS 174 CITATIONS

SEE PROFILE SEE PROFILE

Ngboawaji Daniel Nte Mohd Sarim

Novena University Ogume GITAM University
77 PUBLICATIONS 179 CITATIONS 18 PUBLICATIONS 59 CITATIONS

SEE PROFILE SEE PROFILE

All content following this page was uploaded by Shad Ahmad Khan on 16 December 2022.

The user has requested enhancement of the downloaded file.

Entrepreneurship and Economic Sustainability

Hesham Magd
Shad Ahmad Khan
Ngboawaji Daniel Nte
Mohd Sarim
First Published in January 2023

Prestige Publishers
A-1B/96-B, Krishna Apartments
Paschim Vihar, New Delhi - 110063
Mobile Nos. 9811047234, 9213156651
E-mail - [email protected]
[email protected]

Entrepreneurship and Economic Sustainability

©Editors

Prestige Publishers is the flagship company of Prestige Group of Companies

All rights reserved. No part of this publication may be reproduced, stored in a retrieval, or transmitted in any form or
by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner.

ISBN: 978-81-958057-5-4

Typeset at Script Makers, 19, A1-B, DDA Market, Paschim Vihar, New Delhi 110063, and text and cover printed at
AnVi Composers.
 CONTENTS

Acknowledgment v
Preface vii

Chapter 01
Does Entrepreneurship Ecosystem have a Causal Relationship with Economic
Development? A Country-wise Imbalanced Panel Data Investigation
Ajay Kumar Singh, Sanjeev Kumar, Bhim Jyoti ……………………………………………… 01

Chapter 02
Variations in Entrepreneurial Outlook Among Different Generations for Business
Competitiveness in Emerging Economies
Dr. Shalini Sharma, Dr. Shikha Bharadwaj……………………………….……………….… 16

Chapter 03
The Role of Entrepreneurship to Women's Well-being in India: Evidence from the State of
Karnataka
Dr Sunita Panicker, Prof. Asha S.K……………………………………………….………….… 34

Chapter 04
Entrepreneurship and Digital Innovation in an Era of Pandemic
Kaneez Masoom, Prof .Syed Haidar Ali, Prof .Surendra Kumar ,
Dr. Saiyid Saif Abbas Abidi ………………..….………..…………………………………… 48

Chapter 05
Innovation by Start-ups in Upgrading Agriculture Supply Chain in Indian Economy
Prof. Ajay Kumar Singh, Barada Prasad Panigrahy………………..….………..…………… 56

Chapter 06
Employment Generation Opportunity through Education Start-Ups in India
Dr. Noor Alam Khan, Deepak Sharma…………………………….………………………….….66

Chapter 07
Entrepreneurial Mindset
Dr. Vasanthi Reena Williams………….……………………………………………………………72
Chapter 08
Developing Entrepreneurial Mindset through Non-academic Initiatives in a Higher
Education Institution and Governmental Support in Oman
Muthla Al Busaidi, Dr. Hesham Magd, Dr. Shad Ahmad Khan………………...……………78

Chapter 09
Political Skills and Entrepreneurial Intention
Ujjal Bhuyan, Dr. Hesham Magd, Dr. Shad Ahmad Khan,
Dr. Ibrahim Rashid Al Shamsi ……………………………………………………………….87

Chapter 10
Role of Tertiary Educational Institutions to Address the Challenges Faced by
Entrepreneurs
Dipan Pradhan, Namrata Pradhan…..………………….………………………………………93

Chapter 11
Performance of Woman Entrepreneurs Influenced by Training & Education in Emerging
Market
M. L. Mayalekshmi…..………………………………………………….………………………….99

Chapter 12
A Study on Domestic Soft Drinks Manufacturing Entrepreneurs in Karnataka
Dr. Rakesh.T.S., Dr. Devaraja Nayaka, K. M., Madhushree.S. …..……….….……………113

Chapter 13
Decoding Entrepreneurial Orientation from Chairman’s Letter: A Study of Indian
Corporates
Aswini Kumar Bhuyan, Dr. Sabat Kumar Digal…………..…………….……….………….126

Opinion
Entrepreneurship – Time to Shift from Steam Engines to Diesel Engines
Manoj Lal……………………………….……………..……………………………...…………..135
 ACKNOWLEDGMENT

The Editors would like to submit their gratitude to all the authors who showed confidence in the
editors and submitted their quality work. The Editors are also indebted to all the reviewers who
supported the editorial team with their timely review reports. The editorial team believes that the
reviewers deserve special mention, their names and present designation is given as follows:
 Dr. Madhu Arora, Professor, New Delhi Institute of Management, Tughlakabad
Institutional Area, New Delhi, India
 Dr. Sultan Ahmad Ansari, Assistant Professor, Modern College of Business and Science,
Muscat Oman
 Dr.Devaraja Nayaka, K.M., Assistant Professor, College of Business, University of
Buraimi, Sultanate of Oman
 Dr. Pulkit Agarwal, Head-College of Commerce and Management, Surajmal University,
Udham Singh Nagar, Uttarakhand, India.
 Madan Gurung, Senior Faculty, Gedu College of Business Studies, Royal University of
Bhutan, Gedu, Bhutan
 Dr. Asim Hasan, Assistant Professor, Dept. of Rural Management, Babasaheb Bhimrao
Ambedkar University, Lucknow, India
 Dr. Ferdinand J. Epoc, Assistant Professor, College of Business, University of Buraimi,
Sultanate of Oman
 Dr. Kiran B. Mamgain, Assistant Professor, School of Liberal Arts & Management, DIT
University, Dehradun, India
 Dr. Madhur Batra, Assistant Professor, Asian School of Business (ASB), Noida, (Delhi-
NCR) India
 Dr. Shivangee Tiwari, Assistant Professor, Department of Management, Babu Banarasi
Das Institute of Technology and Management, Lucknow, U.P. India
 Puja Bansal, Guru Jambheshwar University, Hisar, Haryana, India

The Editorial Board extends its special regards to the Prestige Publishers, India for their timely
attention to the minute details of this book and publishing it in the present form.
 PREFACE

Entrepreneurship may have in stimulating a move in the practices and operations of modern
capitalism. Sustainability entrepreneurship is increasingly seen as being the forerunner of a shift
to a new form of entrepreneurial development that can help to address fears of global climate
changes and their associated negative environmental impacts. The entrepreneurial act leading to
sustainable development is seen as an interface of people, planet, profits and politics, to mobilise
new resources and aim at fundamental and structural changes towards socially and
environmentally sound economic activities. Therefore, in this book, “Entrepreneurship and
Economic Sustainability”, experts will provide budding entrepreneurs, policymakers and fund
providers with an in-depth and comprehensive insight on the subject matter. The main body of the
book comprises fourteen chapters and each highlight particular entrepreneurial development and
sustainability issues along with suitable recommendations to entrepreneurs and policymakers.
The first chapter, for instance, emphasised the examination of the association of per capita GDP
with the entrepreneurship ecosystem and other macro-level activities in selected 106 economies
using the Cobb-Douglas production function. The results showed that per capita GDP is likely to
be increased as the entrepreneurship ecosystem, digitalization and self-employed rate increase.
Economic development and entrepreneurship ecosystem have a positive and bi-directional
causality. The study proposed several policy proposals to increase the entrepreneurship ecosystem
and economic development.
The second chapter identifies and relates the entrepreneurs from different generations in
perspective of their mindset toward success in the context of emerging economies. The chapter
intends to investigate whether the entrepreneurs of different generations differ in their mindset
toward success or not. The generations under study are the Gen-Xers and Millennials/Gen Y.
Harmonies between both the generations were quality, clear vision, credibility, an idea to change
and niche. The chapter articulated several practical suggestions for the policymakers in terms of
designing administrative initiatives to promote entrepreneurial education and consequently, an
entrepreneurial mindset.
The third chapter reflects on the role of entrepreneurship in the well-being of women in the
Karnataka state of India. The chapter provides a theoretical understanding of the current position
of women entrepreneurship in India and proposed various factors to promote a relevant ecosystem
for women entrepreneurs in India. The findings indicate that the well-being of women
entrepreneurs’ is better than the well-being of women non-entrepreneurs.
The fourth chapter highlights how the entrepreneurs came up with innovative start-up ideas
during the Covid-19 pandemic to convert the bane into a boom through digital technologies. The
study has developed a conceptual model in response to the pandemic by connecting the various
forces for and against digitalization and providing implications for academics as well as the
industry. Extending the innovative entrepreneurial drives, the fifth chapter shares the
contribution of Agri-based Startups toward the agrarian community and above all the Indian
economy and also highlights the required support system for the sustainability of these Startups.
The study proposed policies for the state as well as central government.
The sixth chapter talks about different states of India adopting the start-up policy and working
their way towards providing self-employment opportunities to the youth. The performance of the
economy of a country is not restricted to the GDP or the per capita income. It encompasses growth
in the opportunities for people and employability and the status of employment of people.
The seventh chapter discusses the mindset of entrepreneurs for bringing sustainable industrial
growth to society. Even though entrepreneurial development is key to economic development and
many individuals, a few parents would be happy to hear their children aim at becoming an
entrepreneur. The results of the study reveal common challenges faced by the entrepreneurs
including non-availability of finance for investment, non-availability of proper /sufficient space to
start business activity, Securing licenses from respective offices and Lack of encouragement from
family and contacts. Extending the mindset exploration of entrepreneurs, the eight-chapter evident
that the entrepreneurial mindset is emerging as an important concept that plays a vital role in
reshaping, developing, and nurturing the entrepreneurial skills, competencies and capabilities
needed for success. The chapter attempts to shed some light on the role of the government and
higher education in building the entrepreneurial mindset. Continuing the discussion, the tenth
chapter discusses the role of tertiary institutions to address challenges faced by Entrepreneurs and
proposes collaboration with business entities so that students receive enriching opportunities to
work as interns and learn from their businesses.

The eleventh chapter reviews the linkages between education and training and the performance of
women Entrepreneurs in emerging markets. Professional training and skill development
programmes would assist female students in achieving their goal to become successful
Entrepreneurs. Women Entrepreneurs may serve as a means to bring social changes. The next
chapter conducted a study to highlight the problems that entrepreneurs of soft drinks
manufacturing units face in improving industry conditions, as well as to discuss the prospective
elements of the industry, particularly in the state of Karnataka. It talks about the dominance of the
domestic players in the soft drinks market until the stiff competition was thrown by Pepsi and
Coke. The thirteenth chapter attempts to decode the Chairman’s letters to see the difference in
entrepreneurial orientation between the top and least 50 companies and see whether an association
between entrepreneurial orientation and firm performance exists. The study draws the fact that out
of five entrepreneurial dimensions only one dimension i.e., innovativeness score differs between
the top-performing and least-performing companies. The present book concludes with an opinion
note on the Entrepreneurial abilities that shifted engines from steam to diesel engines that brought
efficiency to the production of output. Therefore, with the investment in infrastructure, access to
affordable financing options, skill upgradation and training and dedicated relationship
management entrepreneurship can jump to the next level of being truly magnetic for India’s youth.
In toto, the book aims to incorporate a wide range of Entrepreneurial issues to cater to the varied
requirements of the readers.

Hesham Magd
Shad Ahmad Khan
Ngboawaji Daniel Nte
Mohd Sarim
 Chapter 1

Does Entrepreneurship Ecosystem have a Causal

Relationship with Economic Development? A Country-wise
Imbalanced Panel Data Investigation
Ajay Kumar Singh*
School of Liberal Arts and Management, DIT University,
Dehradun, Uttarakhand (India).
E-mail: [email protected]; [email protected]
ORCID ID: https://orcid.org/0000-0003-0429-0925

Sanjeev Kumar,
School of Liberal Arts & Management, DIT University,
Dehradun, Uttarakhand (India).
E-mail: [email protected]
ORCID ID: https://orcid.org/0000-0002-2074-1071

Bhim Jyoti
Assistant Professor (Seed Science and Technology), V.C.S.G., UUHF,
College of Forestry, Ranichauri, Tehri Garhwal, Uttarakhand (India).
E-mail: [email protected]
ORCID ID: https://orcid.org/0000-0002-6960-5097

*Corresponding Author

Abstract
The economic development of a country depends upon entrepreneurship ecosystem and
entrepreneurial activities. Economic development is useful to increase entrepreneurship
ecosystem and entrepreneurial activities. Thus, entrepreneurship ecosystem and economic
development have a positive causality with each other. Nevertheless, limited studies could
observe the cause-and-effect relationship between economic development and
entrepreneurship ecosystem in different income group countries. Hence, this study examined
the cause-and-effect relationship between economic development and entrepreneurship
ecosystem in 106 countries using Cobb-Douglas production function approach. Specific set of
dependent and independent variables were compiled in country-wise imbalanced data during
2006 – 2019. The global entrepreneurship index (GEI) was used a dependent variable, and per
capita GDP and certain variables were used as independent variables in regression models.
Also, per capita GDP was considered as dependent variable, and GEI and specific macro level
indicators were used as independent variables in the regression analysis. The regression results
specified that per capita GDP may be increased as entrepreneurship ecosystem, digitalization
and self-employed rate increase. Entrepreneurship ecosystem is to be improved as per capita
GDP, business density rate, foreign direct investment inflow and self-employed rate increase.
Economic development and entrepreneurship ecosystem have a positive and bi-directional
causality. It also proposed several policy proposals to increase entrepreneurship ecosystem and
economic development.

Keywords: Entrepreneurship ecosystem; Economic development; Digitalization, Inflation;

Foreign direct investment, Economic sustainability; Per capita gross domestic product.

1
1. Introduction
Entrepreneurship ecosystem is defined as favourable ecosystem which create new business
opportunities and bring innovation in a nation. Existing researchers and development
organizations defined entrepreneurship ecosystem as per their own perspectives. Accordingly,
previous studies used different indicators to explain entrepreneurship ecosystem in different
countries (Singh et al., 2022). Prior literature claimed that entrepreneurship ecosystem showed
a positive impact on job opportunity, production of new goods and services, growth of
industrial and manufacturing sector, start-ups, foreign trade, global value chain, science &
technological development, infrastructure development, and initiation of strong IPR regime
(Jyoti and Singh, 2020; Singh and Kumar, 2022). Thus, social-economic development is also
significantly associated with entrepreneurship ecosystem and entrepreneurial activities.
Furthermore, social and economic development, science & technological, innovation and
digitalization associated activities have a potential contribution to create an appropriate
entrepreneurship ecosystem in a country (Singh et al., 2022). Several studies have proposed
that economic growth, economic development and per capita income are positively related with
entrepreneurial activities and entrepreneurship ecosystem (Box et al., 2014; Erken et al., 2018;
Singh and Ashraf, 2020; Singh et al., 2022). Appropriate entrepreneurship ecosystem is also
supportive to create new entrepreneurial opportunities for new entrepreneurs, new firms, start-
ups, new markets, and innovative goods and services in the market (Jyoti and Singh, 2020).
Thus, it has capability to bring innovative change in market and socio – economic development
in a country. Furthermore, science & technological development, innovation, industrial
development, infrastructural development and financial development are also supportive to
increase entrepreneurship ecosystem and sustainability in economic development.

Most specifically, entrepreneurship ecosystem is highly effective to create new jobs in the
manufacturing sector of industries and increase their production scale (Singh and Ashraf, 2020;
Jyoti and Singh, 2020; Singh and Jyoti, 2020). Thus, per capita income and gross domestic
product is likely to be increased in a country when it adopts appropriate policies towards
entrepreneurship ecosystem and entrepreneurial activities (Chen, 2014). Subsequently,
entrepreneurship ecosystem would increase economic sustainability in long-term. Economic
sustainability can be defined as improving the profitability of production sectors without
destructive the quantity and quality of available resources. In above perspectives, exist
literature can be divided in two broad categories, the first groups of studies observed the
interrelationship of entrepreneurship ecosystem with per capita GDP, economic development
and growth, sustainable development, unemployment rate, social development, sustainable
development, infrastructural development and other social-economic activities (Wennekers et
al., 2010; Chen, 2014; Dvouletý, 2017; Dhahri and Omri, 2018; Singh et al., 2022). The second
group of studies assessed the influence of macro level indicators such as per capita GDP,
inflation, intellectual property rights, foreign direct investment, unemployment rate, tax rate,
science & technological development, research & development (R&D) expenditure, R&D
intensity, innovation, technology transfer and commercialization, foreign trade, gross capital
formation, education level, human capital, labour participation rate, energy consumption, and
other on entrepreneurship ecosystem and entrepreneurial capability in different countries (e.g.,
Dhahri and Omri, 2018; Erken et al., 2018; Afzal et al., 2018; Karimi and Chashmi, 2019;
Galindo-Martín et al., 2020; Zeng and Ren, 2022). For instance, Moya-Clemente et al. (2020)
considered indicators associated with environmental and economic development to analyse the
factors affecting sustainable entrepreneurship. The empirical findings of most studies claimed
that aforesaid activities have positive and significant impact on entrepreneurship ecosystem in
developed and developing economies (Omoruyi et al., 2017; Karimi and Chashmi, 2019;

2
Galindo-Martín et al., 2020; Singh et al., 2022; Zeng and Ren, 2022). For instance, Dhahri and
Omri (2018) witnessed positive influence of per capita gross domestic product on
entrepreneurship ecosystems.

Furthermore, entrepreneurship ecosystem and entrepreneurial activities bring several positive

contributions to enhance the economic growth, social development, economic development,
sustainable development and science & technological development in developed and
developing countries (Hall et al., 2010; Singh and Ashraf, 2020; Adusei, 2016; Omoruyi et al.,
2017; Dhahri and Omri, 2018; Singh et al., 2022; Shakabatur et al., 2022). Numerous studies
theoretically and empirically proved that economic development has a positive impact on
entrepreneurship ecosystem. The theoretical and empirical findings of previous studies also
argued that entrepreneurship ecosystem and economic development are positively associated
with each other. Although, few studies could focus their empirical investigation to observe the
impact of economic development on entrepreneurship ecosystem and vice-versa in high, upper-
middle, lower and mow income groups of economies. Also, existing researchers are unable to
assess the answer on how entrepreneurship ecosystem would be useful to increase economic
sustainability in global countries? Therefore, this study is achieved following objectives:
 To observe the association of per capita GDP with entrepreneurship ecosystem and
other macro level activities in selected 106 economies using correlation coefficient
analytical technique.
 To examine the impact of economic development on entrepreneurship ecosystem in
selected 106 countries using Cobb-Douglas production function approach.
 To examine the influence of entrepreneurship ecosystem and other specific variables
on economic development in selected 106 countries using Cobb-Douglas production
function approach.

2. Research Material and Methods

2.1. Collection of Countries and Description on Data Sources
This study complies 106 economies which were chosen as per the availability of required data
on entrepreneurship ecosystem, per capita income, business density rate and other specific
macro level variables. Data for related indicators were available for selected economies in
different time period. Thus, this study considered the country-wise imbalanced panel data of
specific set of dependent and independent variables during 2006 – 2019 (Table: 1). The
required data for this study was taken from the official website of Global Entrepreneurship and
Development Institute (GEDI) and World Development Indicators (World Bank). While,
indicators were selected based on previous theoretical and empirical literature review.

Table 1: Name of selected countries and their time period

Country Time Period
Bolivia 2018
Paraguay 2019
Argentina, Australia, Belgium, Croatia, Czech Republic, Denmark, Finland, France,
Germany, Hungary, Iceland, India, Indonesia, Ireland, Italy, Jamaica, Latvia,
Malaysia, Mexico, Norway, Peru, Philippines, Russian Federation, Singapore, 2006-2019
Slovenia, South Africa, Spain, Sweden, Thailand, United Arab Emirates, United
Kingdom and Uruguay

3
 Country Time Period
Hong Kong SAR China, Israel, Japan, Portugal, Romania and Switzerland 2007-2019
Egypt and Arab Rep. 2008-2019
Algeria, Brazil, Guatemala, Jordan, Saudi Arabia and Tunisia 2009-2019
China, Ghana, Pakistan and Zambia 2010-2019
Greece, Lithuania, Nigeria, Poland and Slovak Republic 2011-2019
Austria, Botswana, El Salvador and Estonia 2012-2019
Chile, Colombia, Costa Rica, Luxembourg, Panama, Vietnam 2013-2019
Albania, Bahrain, Benin, Brunei Darussalam, Bulgaria, Cambodia, Chad, Cyprus,
Dominican Republic, Kazakhstan, Kuwait, Madagascar, Mali, Morocco,
2014-2019
Mozambique, Myanmar, Namibia, Oman, Qatar, Rwanda, Sri Lanka, Sudan,
Tanzania, Turkey and Ukraine
Bangladesh, Barbados, Belize and Georgia 2015-2019
Armenia, Azerbaijan, Bosnia and Herzegovina, Ethiopia, Guinea, Kyrgyz,
2016-2019
Republic, Mauritania, Kenya and Netherlands
Burkina Faso, Canada and Kenya 2017-2019

2.2. Rationality of Indicators

Per Capita Gross Domestic Product (PCGDP): Per capita income is useful to increase the
overall well-being as it is useful to increase education level, shelter, health facilities, food
security, social security, livelihood security and well-being of people in a country. Thus, per
capita GDP can be used as a useful indicator of economic development (Bashir and Akhtar,
2016; Singh et al., 2019a; Singh and Ashraf, 2020). Social welfare of people increases as per
capita GDP or income increases. Previous studies also included per capita gross domestic
product to assess the influence of economic development on entrepreneurship ecosystem, green
entrepreneurship ecosystem, business density rate, global innovation index, new firm start-ups
and total entrepreneurial activity in different countries (Audretsch et al., 2015; Erken et al.,
2018; Galindo-Martín et al., 2020; Singh and Ashraf, 2020; Zeng and Ren, 2022; Singh et al.,
2022).

Global Entrepreneurship Index Score (GEIS): Employment rate, employment intensity and
new firms’ creation were used to measure the performance of entrepreneurship ecosystem by
existing researchers (Singh and Ashraf, 2020). Previous studies also used different indicators
such as self-employment, number of new firms, number of new businesses registered, number
of company formation, business ownership rate, entry employment in industries, employment
rate, number of start-ups, new entry of firms, registered business activity and global
competitiveness index to observe the improvement of entrepreneurship ecosystem and
entrepreneurial activity across countries (Wennekers et al., 2010; Box et al., 2014; Audretsch
et al., 2015; Bashir and Akhtar, 2016; Adusei, 2016; Dvouletý, 2017; Erken et al., 2018). Total
entrepreneurial activity is also dynamic indicator to define entrepreneurship ecosystem (Rusu
and Roman, 2017). Hence, there is no unanimity among the researchers on indicators of
entrepreneurship ecosystem (Singh and Ashraf, 2020). Therefore, measurement of
entrepreneurship ecosystem is difficult and controversial. In order to avoid the discrepancy of
aforementioned studies, another group of studies also developed global entrepreneurship
ecosystem index to examine the overall progress of entrepreneurship ecosystem for global
countries (Singh et al., 2022). Accordingly, most studies claimed that integration of factors
associated with entrepreneurship ecosystem is highly effective to measure the inclusive
performance of entrepreneurship ecosystem (Singh and Ashraf, 2020; Galindo-Martín et al.,
2020). For instance, Singh and Ashraf (2020); Singh et al. (2022) developed global
entrepreneurship ecosystem index (GEI) as an integrated index of 12 factors which were

4
proposed by Global Entrepreneurship Monitor (GEM) to examine the relative performance of
entrepreneurship ecosystem. The Global Entrepreneurship Ecosystem Development Institute
(GEDI) also used 14 crucial factors to develop global entrepreneurship index (GEI) to measure
the overall performance of entrepreneurship ecosystem across economies. GEI categorize the
overall health of entrepreneurship ecosystem in global countries. Thus, in this study, GEI was
used as a dependent and independent variable to assess the association of entrepreneurship
ecosystem with per capita gross domestic product. In this study, per capita gross domestic
product was considered to capture the influence of economic development on entrepreneurship
ecosystem.

Unemployment Rate (TUPTLF): Per capita income is expected to be declined as

unemployment rate increases. Thus, it is noticeable that unemployment rate may have a
negative impact on social development, economic development, livelihood security,
entrepreneurial activity and entrepreneurship ecosystem. As entrepreneurial activity is
expected to be increased as per capita gross domestic product or income increases. Also,
demand of manufacturing goods may decline as unemployment rate increases. Therefore,
economic sustainability, entrepreneurship ecosystem and entrepreneurial activities would
decline as unemployed rate increases in a country (Dvouletý, 2017; Dvouletý, 2018).

Number of New Limited Liability Companies (NUNELILICO) and New Business Density
Rate (NEBUDERA): New business density rate is the number of new businesses or companies
registered for 1000 person in a financial year. Also, number of new limited liability companies
are useful to create assets for entrepreneurial activities. Hence, both the variables are key
determinants to increase entrepreneurship ecosystem and social-economic development of a
nation (Wennekers et al., 2010; Audretsch et al., 2015). It may be helpful to increase economic
sustainability.

Foreign Direct Investment Net Inflows (FDINIPGDP): It is crucial financial indicator to

create business opportunities, jobs; increase foreign trade, money flow, transfer of technology
and knowledge, human skills and competition across countries (Singh et al., 2020). FDI net
inflows is helpful to increase financial development and inclusion, physical assets and capital
formation in a country. Thus, FDI net inflows may be supportive to strengthen the economic
development and entrepreneurship ecosystem (Dvouletý, 2018). Public and private investors
can open new ventures and production industries in foreign countries under FDI. Subsequently,
FDI also works as a vital determinant to create jobs for skills and unskilled workers. In contrary,
FDI outflow from one country to another country may have negative impact on supply of
money in domestic market, thus, the impact of FDI outflow on economic development may be
negative (Singh et al., 2021). FDI inflow contribute to sustain money flow in the domestic
market and create physical assets. Thus, FDI net inflow was used as independent variable in
regression model.

Exports of Goods and Services (EGSPGDP): A country can increase export of goods and
services under foreign trade. Foreign trade provides motivation to the manufacturing firms to
increase their production scale to meet the demand of goods and services (Singh et al., 2019b).
Furthermore, manufacturing firms hire additional workers to sustain their production scale to
meet the demand of goods and services in global market. It also useful to increase the global
value-chain of nation. Further, exports of goods and services would be positive to create new
jobs, generate foreign revenue for manufacturing firms and reduce monopoly in international
market. Consequently, economic development and sustainability, and entrepreneurship
ecosystem increase as exports of goods and services increase. In this study, this variable was

5
used to capture the influence of foreign trade on per capita gross domestic product and
entrepreneurship ecosystem.

Fixed Broadband Subscriptions (FBSPHP) and Individuals Using the Internet (IUIIPP):
Digital marketing is useful to expand a business in different ways. It also provides all
information for producers and consumers at single platform to meet their need. Thus,
digitalization is seemed a crucial determinant to increase economic sustainability, economic
development and entrepreneurship ecosystem. In this study, number of internet user and fixed
broadband users were used to detect the influence of digitalization on economic development,
and entrepreneurship ecosystem and entrepreneurial activities (Singh et al., 2019b).

Table 2: Brief explanation of dependent and independent variables

Measure
Explanation of Indicators ment Symbol Source of Data
unit
Global entrepreneurship index score Number GEIS GEDI
GDP per capita (constant 2015 US$) US$ PCGDP
Number of new limited liability companies Number NUNELILICO
New business density rate % NEBUDERA
Business extent of disclosure index (0 = less
Number BEDI
disclosure to 10 = more disclosure)
Exports of goods and services (% of GDP) % EGSPGDP
World
Percentage people having fixed broadband
Number FBSPHP Development
subscriptions (per 100 people)
Indicators
Percentage population having internet connections
% IUIIPP (World Bank)
(% of population)
FDI net inflows (% of GDP) % FDINIPGDP
Annual inflation GDP deflator % IGDPDAP
Price level ratio of PPP conversion factor (GDP) to
Number MER
market exchange rate
Unemployment total (% of total labour force) % TUPTLF
High income group countries (1 = high income Author's
Number HIGC
countries; 0 = for other countries) addition as
Upper middle-income group countries (1 = Upper country-wise
Number UMIGC
middle-income countries; 0 = for other countries) dummy
variables in
Lower middle income group countries (1 = Lower
Number LMIGC regression
middle-income countries; 0 = for other countries)
models
Source: Author’s compilation based on availability of data.

Inflation GDP Deflator (IGDPDAP): Real income of the people decreases and cost of living
increase due to increase in inflation. Thus, high inflation has negative impact on purchasing
power of people, subsequently, demand of durable and non-durable goods may decline due to
increase in their prices (Singh et al., 2020). Since, manufacturing firms and other production
industries may increase or decrease their production scale as per the current demand of goods
and services in the market. Accordingly, demand of workers in labour market are also adversely
affected due to increase in inflation. Hence, usually inflation have a negative and significant
impact on per capita gross domestic product, per capita income and entrepreneurship ecosystem
(Singh et al., 2021). As a result, inflation also has a negative impact on economic sustainability.
In this study, inflation GDP deflector was used as independent variable to access the influence
of inflation on per capita gross domestic product and global entrepreneurship index.

6
Price Level Ratio of Purchasing Power Parity Conversion Factor (GDP) to Market
Exchange Rate (MER): It is a significant financial indicator to attract the desirability of
foreign investors to increase their investment in financial market. Trade of goods and services
depend upon exchange rate. Thus, it has significant contribution in economic development and
entrepreneurship ecosystem. In this study, this variable was used to capture the influence of
exchange rate on economic development and entrepreneurship ecosystem.

Business Extent of Disclosure Index (BEDI): It reveals the ownership and protection of
invested amount of an investor in financial market. The high values of BEDI infer the financial
activities of investors are highly protected by monetary and regulatorily body in a country. For
example, the Security Exchange Board of India (SEBI) regulate and provide the security to the
domestic and foreign investors in Indian security and capital market. Further, the high value of
BEDI also shows more disclosure with protection of proprietorship and financial information
of the investors in financial market (Singh et al., 2019b). Thus, this index was considered to
examine the impact of ownership and investment desirability of investors on per capita gross
domestic product and entrepreneurship ecosystem. The brief summary of dependent and
independent variables is given in Table: 2.

2.3. Formulation of Empirical Models

As this study observes the cause-and-effect association between entrepreneurship ecosystem
and economic development. Therefore, two separate empirical models were developed to
estimate the regression coefficients of explanatory variables with two different dependent
variables. In the first model, per capita GDP was used a dependent variable, and global
entrepreneurship index and other macro-level indicators were used as independent variables.
In the 2nd empirical model, global entrepreneurship index was considered as a dependent
variable, while, per capita GDP and other variables were considered as explanatory variables.
Previous studies also used mentioned variables as dependent and independent variables in
empirical models to investigate the association of entrepreneurship ecosystem with per capita
GDP in selected economies (Singh and Ashraf, 2020). Following log-linear regression equation
was used to measure the impact of GEIS and other macro indicators on per capita GDP:

ln (PCGDP)ct = θ0+ θ1 ln (GEIS)ct + θ2 ln (BEDI)ct + θ3 ln (EGSPGDP)ct + θ4 ln (FBSPHP)ct +

θ5 ln (FDINIPGDP)ct + θ6 ln (IUIIPP)ct + θ7 ln (IGDPDAP)ct + θ8 ln (MER)ct + θ9 ln
(TUPTLF)ct +µct (1)

Here, PCGDP is per capita gross domestic product; θ0 is constant term which measure the total
factor productivity (TFP) in log-linear regression model; θ1, ..., θ9 are the elasticity of related
variables; c signifies a specific country; t represents time period; µct is the error term in equation
(1). Further, the explanation of remaining indicators and symbols is given in Table 2. Following
regression model was used to examine the impact of economic development (i.e., per capita
gross domestic product) and other control variables on GEIS:

ln (GEIS)ct = ¥0 + ¥1 ln (PCGDP)ct +¥2 ln (BEDI)ct +¥3 ln (EGSPGDP)ct +¥4 ln (FDINIPGDP)ct

+¥5 ln (IUIIPP)ct +¥6 ln (IGDPDAP)ct +¥7 ln (MER)ct +¥8 ln (NEBUDERA)ct +¥9 ln
(NUNELILICO)ct +φct (2)

Here, GEIS is entrepreneurship ecosystem index score; ¥0 is constant term which measure the
total factor productivity (TFP); ¥1, ..., ¥9 are the elasticities of corresponding variables; and φct

7
is the error-term in equation (2). This study included 106 countries in which 40, 15, 21 and 30
countries were from high-income low-income, lower-middle income and upper-middle income
groups, respectively. These economies have high diversity in listed macro-level indicators in
Table: 2. Therefore, country-wise dummies were also included in the proposed empirical
models to observe the impact of explanatory variables on dependent variables in different
income groups countries. As Driscoll-Kraay standard errors estimation model automatically
reduces the impact of autocorrelation, serial correlation, heteroskedasticity and cross-sectional
dependency in panel data investigation (Singh et al., 2022). Therefore, the regression
coefficients of independent variables with output were estimated through Driscoll-Kraay
standard errors estimation model in this study.

3. Descriptive Results
The Table 3 provide the descriptive summary of dependent and independent variables. The
statistical properties of explanatory variables were estimated to identify the variation in every
indicator. The statistical values of Cronbach’s alpha were also calculated for all variables to
check their scale-reliability and validity. The statistical values of mean and standard deviation
of respective variables do not have significant variation, thus, these variables do not have
leverage. Form of most variables (except, BEDI, FBSPHP, IUIIPP, TUPTLF) were found
normal in nature as per their statistical vales of skewness. Also, statistical values of Cronbach
test for all variables were observed more than 0.80, thus, these variables have rationality for
considering in empirical investigation.

Table 3: Statistical properties of the dependent and independent variables

Variables Min Max Mean SD Skewness Cronbach’s Alpha score

ln (GEIS) 2.171 4.502 3.588 0.486 -0.282 0.846
ln (NUNELILICO) 6.125 13.437 9.805 1.471 0.098 0.872
ln (NEBUDERA) -3.507 3.479 0.585 1.416 -0.538 0.852
ln (BEDI) 0.000 2.303 1.762 0.459 -1.082 0.876
ln (EGSPGDP) -0.494 5.434 3.642 0.680 -0.965 0.861
ln (FBSPHP) -4.605 3.846 2.042 1.762 -1.537 0.849
ln (FDINIPGDP) -4.605 5.409 1.049 1.153 -0.341 0.876
ln (PCGDP) 6.143 11.558 9.259 1.294 -0.368 0.845
ln (IUIIPP) 1.033 4.614 3.867 0.725 -1.434 0.849
ln (IGDPDAP) -3.912 4.025 0.992 1.198 -0.682 0.869
ln (MER) -1.966 0.519 -0.538 0.462 0.184 0.854
ln (TUPTLF) -2.207 3.349 1.744 0.796 -1.240 0.878
Source: Author's estimation.

8
 IGDPDA FDINIP NEBUD NUNELILI
TUPTLF MER IUIIPP PCGDP FBSPHP EGSPGDP BEDI GEIS Variables
P GDP ERA CO

0.141*
-0.052 0.818** -0.290** 0.773** 0.851** 0.126** 0.815** 0.343** 0.465** 0.156** 1 GEIS
*

0.287* 0.156* NUNELILI

0.078** 0.153** -0.051 0.111** 0.091** -0.041 0.146** -0.106** 0.333** 1
* * CO

0.236* 0.465* NEBUDE

0.035 0.370** -0.192** 0.444** 0.467** 0.367** 0.480** 0.516** 1 0.333**
* * RA

0.141*
-0.087** -0.009 -0.057* 0.104** 0.059* 0.075** 0.091** 0.163** 1 0.236** 0.287** BEDI
*

0.163* 0.343*
-0.150** 0.130** -0.206** 0.387** 0.437** 0.417** 0.356** 1 0.516** -0.106** EGSPGDP
* *

0.091* 0.815*

9
0.005 0.745** -0.333** 0.827** 0.770** 0.197** 1 0.356** 0.480** 0.146** FBSPHP
* *

as correlation coefficient is significant at 5% significance level.

0.075* 0.126* FDINIPG
-0.011 0.114** -0.081** 0.131** 0.208** 1 0.197** 0.417** 0.367** -0.041
* * DP

0.851*
-0.158** 0.823** -0.231** 0.716** 1 0.208** 0.770** 0.437** 0.059* 0.467** 0.091** PCGDP
*

0.104* 0.773*
-0.01 0.620** -0.26** 1 0.716** 0.131** 0.827** 0.387** 0.444** 0.111** IUIIPP
* *
Table 4: Correlation coefficients among the variables

- - -
0.036 -0.295** 1 -0.262** -0.081** -0.333** -0.206** -0.192** -0.051 IGDPDAP
0.231** 0.057* 0.290*
*
0.818*
-0.03 1 -0.30** 0.620** 0.823** 0.114** 0.745** 0.130** -0.009 0.370** 0.153** MER
*

- -
1 -0.03 0.036 -0.01 -0.011 0.005 -0.150** 0.035 0.078** -0.052 TUPTLF
0.158** 0.087*

Source: Author's estimation. ** refers as correlation coefficient is significant at 1% significance level and * refers
*
The descriptive results based on correlation coefficients among the variables imply that GEIS
was positively associated with NUNELILICO, NEBUDERA, BEDI, EGSPGDP, FBSPHP,
FDINIPGDP, PCGDP, IUIIPP and MER. The estimates clearly indicate the entrepreneurship
ecosystem will improve as number of companies, business extent disclosure, new business
density rate, exports of goods and services, fixed broadband subscribers, FDI net inflow, per
capita GDP, individual using internet and market exchange rate increase. The results
emphasized that entrepreneurship ecosystem is extremely depend upon fixed broadband
subscribers, per capita GDP and market exchange rate. Per capita GDP was also positively
associated with entrepreneurship ecosystem, number of companies, business extent disclosure,
business density rate, exports of goods and services, fixed broadband subscribers, FDI net
inflow and individual using internet. Inflation GDP deflator and unemployment rate were
negatively associated with per capita GDP.

4. Empirical Results and Discussion

4.1. Implications of Entrepreneurship Ecosystem and Macro-level Indicators on Per

Capita GDP
The regression coefficients of explanatory variables with per capita GDP were estimated using
two separate models (Table: 5). The 1st model produces the regression coefficients of
explanatory variables with per capita GDP. While, 2nd provides the regression coefficients of
independent variables and country-wise dummies with per capita gross domestic product. As
per the statistical values of Akaike information criterion (AIC) and Bayesian information
criterion (BIC), 2nd produce reliable coefficients of independent variables. Therefore, the
statistical inference based on this model is explained in this study. As per the R2-values, it can
be concluded that 90% to 94% variation in per capita GDP can be explained through undertaken
variables. The F-values were also found statistically significant in both the models. Hence, the
estimates imply that impact of undertaken variables on per capita GDP is significantly varied.
The regression coefficients of most variables (except unemployment rate) with per capita GDP
were seemed positive and statistically significant.

The estimates indicate that per capita income is likely to be increased as entrepreneurship
ecosystem, business extent disclosure, exports of goods and services, FDI net inflow, fixed
broadband subscriptions, internet users and market exchange rate increases. Therefore,
economic development also increases as the contribution of these variables increase in
production activities. Entrepreneurship ecosystem index and business extent of disclosure
index explicate the overall health of entrepreneurship ecosystem. Hence, entrepreneurship
ecosystem showed a positive influence on per capita gross domestic product. Exports of goods
and services bring several positive implications as it creates extensive jobs, generates foreign
revenue, increases production scale of manufacturing firms and reduces monopoly in a country
(Singh and Jyoti, 2020). Hence, it is obvious that economic development and per capita income
are likely to be improved as exports of goods and services increases. FDI net inflows is also
useful to sustain financial stability, create business opportunities and more jobs for skilled and
unskilled labours. Subsequently, it is expected that FDI net inflow have a positive impact on
economic development. Internet users were used to analysis the effect of digitalization on per
capita gross domestic product. Digitalization was found a key driver to improve economic
development in several ways as it creates online trading of goods and services, and satisfy the
requirement of producers and consumers. Hence, digitalization creates additional prospects for
entrepreneurs to increase growth of their ventures. It was also perceived that per capita gross
domestic product decreases as unemployment rate increases. Therefore, it is advised that global

10
countries should reduce unemployment and inflation rate to increase sustainable economic
development and economic sustainability. The regression coefficient of country-wise dummies
with per capita GDP were observed positive and statistically significant at 1% significance
level. Thus, the estimates specify that the association of explanatory variables with per capita
gross domestic product in high, upper-middle and lower-income group countries were seemed
positive. Thus, the results infer that the influence of undertaken explanatory variables on per
capita gross domestic product were similar in different income group countries. Moreover, the
statistical value of constant term was found positive and statistically significant at 1%
significance level. Hence, the result implies the TFP of per capita gross domestic product was
positive in selected countries.

Table 5: Influence of explanatory variables on per capita GDP

Forms of models Model 1 Model 2

Number of obs. 955 955
Number of countries 106 106
F - Value 131505.31 456314.18
Prob > F 0.000 0.000
R-squared 0.9084 0.9441
Root MSE 0.387 0.3028
VIF 2.32 4.22
AIC - 906.6908 - 441.4929
BIC - 955.3079 - 504.6952
ln (PCGDP) [DV] Reg. Coef. Std. Err. P>|t| Reg. Coef. Std. Err. P>|t|
ln (GEIS) 0.8999 0.1016 0.000 0.3512 0.0308 0.000
ln (BEDI) 0.0537 0.0314 0.111 0.1543 0.0222 0.000
ln (EGSPGDP) 0.1143 0.0440 0.022 0.0158 0.0250 0.538
ln (FBSPHP) 0.1661 0.0234 0.000 0.0934 0.0073 0.000
ln (FDINIPGDP) -0.0246 0.0066 0.003 0.0061 0.0057 0.305
ln (IUIIPP) 0.3242 0.0962 0.005 0.2502 0.0431 0.000
ln (IGDPDAP) 0.0806 0.0123 0.000 0.0653 0.0083 0.000
ln (MER) 0.9063 0.0774 0.000 0.7062 0.0601 0.000
ln (TUPTLF) -0.0414 0.0201 0.060 -0.1102 0.0115 0.000
HIGC - - - 1.8372 0.0818 0.000
UMIGC - - - 1.1586 0.0665 0.000
LMIGC - - - 0.7435 0.0338 0.000
Constant Term 4.4295 0.2038 0.000 5.7032 0.1155 0.000
Source: Author's estimation.

4.2. Implications of Per Capita GDP and Macro-level Indicators on Entrepreneurship

Ecosystem
The regression results which examine the influence of explanatory variables on
entrepreneurship ecosystem index score were estimated using two independent models. In the
1st model, only explanatory variables, and in the 2nd model explanatory variables and country-
wise dummies were considered. The 1st model produces the rational coefficients of independent
variables as per the lowest values of AIC and BIC. The results infer that 82% variation in
entrepreneurship ecosystem can be described by undertaken independent variables as per the
R-squared values. The regression coefficient of per capita GDP, business extent of disclosure

11
index, exports of goods and services, market exchange rate, business density rate and limited
liability companies with entrepreneurship ecosystem were seemed positive and statistically
significant. Thus, the results indicate that that these indicators were found crucial determinants
of entrepreneurship ecosystem. Furthermore, entrepreneurship ecosystem was negatively
impacted due to increase in inflation.

Table 6: Influence of explanatory variables on entrepreneurship ecosystem

Forms of models 1st model 2nd model

Number of obs. 958 958
Number of countries 106 106
F - Value 7210.98 145786.22
Prob > F 0.000 0.000
R-squared 0.8218 0.8323
Root MSE 0.2041 0.1984
VIF 2.75 5.58
AIC -315.82 -367.8516
BIC -267.1715 -304.6086
ln (GEIS) [DV] Reg. Coef. Std. Err. P>|t| Reg. Coef. Std. Err. P>|t|
ln (PCGDP) 0.2493 0.0255 0.000 0.1545 0.0157 0.000
ln (BEDI) 0.0561 0.0080 0.000 0.0883 0.0124 0.000
ln (EGSPGDP) 0.0585 0.0159 0.003 0.0405 0.0120 0.005
ln (FDINIPGDP) -0.0117 0.0064 0.089 -0.0094 0.0063 0.158
ln (IUIIPP) 0.0227 0.0202 0.282 0.0346 0.0199 0.107
ln (IGDPDAP) -0.0037 0.0071 0.614 0.0051 0.0071 0.485
ln (MER) 0.1577 0.0256 0.000 0.1579 0.0223 0.000
ln (NEBUDERA) 0.0122 0.0042 0.012 0.0199 0.0043 0.000
ln (NUNELILICO) 0.0200 0.0097 0.060 0.0167 0.0114 0.165
HIGC - - - 0.3723 0.0479 0.000
UMIGC - - - 0.1705 0.0278 0.000
LMIGC - - - 0.1315 0.0339 0.002
Constant Term 0.7767 0.2718 0.013 1.3917 0.2188 0.000
Source: Author's estimation.

Also, business extent of disclosure index, business density rate and limited liability companies
were appeared potential indicators to fostering a conducive ecosystem of entrepreneurial
activities and entrepreneurship ecosystem. Hence, it is noticeable that entrepreneurship
ecosystem would be improved as business extent of disclosure index, business density rate and
limited liability companies increase. Further, the results imply that entrepreneurship ecosystem
is likely to be increased as per capita GDP increases. It may be happened due to that people
may be desired to earn more money through opening their own venture or business. For this,
per capita income will be helpful for people to create new business ventures or start-ups.
Accordingly, the regression coefficient of per capita gross domestic product with
entrepreneurship ecosystem was appeared positive and statistically significant at 1%
significance level. Exports of goods and services provide encouragement to the production
sector to meet the consumer's requirement in different aspects at national and international
level. Subsequently, manufacturing industries will setup new firms and start-ups across
countries (Singh and Kumar, 2022). Hence, exports of goods and services will be positive to
increase entrepreneurship ecosystem in a country. The impact of market exchange rate on

12
entrepreneurship ecosystem was found positive and statistically significant at 1% significance
level. Hence, the estimate emphasized that influence of market exchange rate in
entrepreneurship ecosystem cannot be denied. The real income of people may be declined due
to increase in inflation. Accordingly, demand of goods and services may decline as inflation
increases in the domestic market. Also, high inflation may have adverse impact on cost of
living, saving and investment rate. Thus, new businessmen and investors avoid to increase their
investment in manufacturing sector and financial market when price of goods and services
increase. Accordingly, inflation may have negative impact on entrepreneurship ecosystem.
Moreover, the regression coefficients of country-wise dummies with entrepreneurship
ecosystem were seemed positive and statistically. The impact of explanatory variables on
global entrepreneurship ecosystem index score were found significant in different income
group countries. As constant term measures the TFP of entrepreneurship ecosystem in
regression model. The positive values of constant term indicate that overall TFP of
entrepreneurship ecosystem was positive during 2000 – 2019 in 106 countries.

5. Concluding Remarks
The descriptive results of this study showed that per capita gross domestic product was
positively associated with global entrepreneurship ecosystem index score, digitalization,
exports of goods and services, FDI net inflows and business extent of disclosure. The global
entrepreneurship ecosystem index score was also positively associated with new business
density rate, FDI net inflows, exports of goods and services, digitalization and per capita gross
domestic product. Further, the empirical results infer that pre capita gross domestic product is
likely to be increased as entrepreneurship ecosystem, digitalization, foreign direct investment,
business density rate, business extent of disclosure, and export of goods and services increase.
Hence, these indicators would assist to increase the economic sustainability of global countries
in long-term. National and global policy makers should consider aforementioned indicators in
developmental policies to strengthen the economic and social development. Also, to increase
economic sustainability of production sector.

Furthermore, entrepreneurship ecosystem is expected to be improved as per capita GDP,

foreign trade, business density rate, FDI net inflows and digitalization increase. Therefore,
policy makers should give more priority on above-mentioned activities to enhance
entrepreneurship ecosystem in respective countries. Hereafter, this study found a cause-and-
effect relationship between economic development and entrepreneurship ecosystem in selected
106 economies. Therefore, the emerging and developing economies should consider
aforementioned variables in policy formulation to improve economic development and
entrepreneurship ecosystem. Also, the developing countries should control high unemployment
rate, high inflation and exchange rate to increase sustainable economic development, economic
sustainability, entrepreneurial activities and sustainable entrepreneurship ecosystem. As
descriptive and empirical results of this study provided several policy proposals to improve
economic development, economic sustainability and entrepreneurship ecosystem in global
countries. However, science & technological development, R&D expenditure, researchers,
skilled workforce, intellectual property rights, green entrepreneurship practices and
environmental development associated variables have a significant impact on entrepreneurship
ecosystem, economic development, economic sustainability and social development. Despite
that, this study could not examine the impact of aforementioned variables on entrepreneurship
ecosystem and economic development due to paucity of time and unavailability of data for
selected 106 countries. Thus, existing researchers can include above-mentioned variables in
further empirical investigation to check the validity of this study. It would be helpful to provide

13
more reliable policy proposals to strengthen the entrepreneurship ecosystem, economic
development and economic sustainability in a specific country or group of countries.

References
Adusei M. (2016). Does entrepreneurship promote economic growth in Africa? African
Development Review, 28(2):201-214.
Afzal M. N. I., Siddiqui S., Dutta S. (2018). Determinants of entrepreneurial capability (EC)
environment in ASEAN-05 economies-a log-linear stochastic frontier analysis. Journal of
Global Entrepreneurship Research, 18(1):8-14.
Audretsch D.B., Belitski M. and Desai S. (2015). Entrepreneurship and economic development in
cities. Annals of Regional Sciences, 55(1):3360.
Bashir H.A. and Akhtar A. (2016). The role of innovative entrepreneurship in economic
development: A study of G20 countries. Management Studies and Economic System, 2(2):91-
100.
Box M., Lin X. and Gratzer K. (2014). Linking entrepreneurship and economic growth in Sweden,
1850 – 2000. PESO Working Paper 1, School of Social Sciences Södertörn University.
Chen C.C. (2014). Entrepreneurship, economic growth, and employment: A case study of Taiwan.
Hitotsubashi Journal of Economics, 55(1):71-88.
Dhahri S. and Omri A. (2018). Entrepreneurship contribution to the three pillars of sustainable
development: What does the evidence really say? MPRA Paper No. 84504.
https://mpra.ub.uni-muenchen.de/84504/.
Dvouletý O. (2017). Relationship between unemployment and entrepreneurship dynamics in the
Czech Regions: A panel var approach. Acta Universitatis Agriculturae Et Silviculturae
Mendelianae Brunensis, 65(102):987-995.
Dvouletý, O. (2018). How to analyse determinants of entrepreneurship and self-employment at the
country level? A methodological contribution. Journal of Business Venturing Insights,
9(2):92-99.
Erken H., Donselaar P. and Thurik R. (2018). Total factor productivity and the role of
entrepreneurship. Journal of Technology Transfer, 43(1):1493-1521.
Galindo-Martín M.A., Castaño-Martínez M.S. and Méndez-Picazo M.T. (2020). The Relationship
between Green Innovation, Social Entrepreneurship, and Sustainable Development.
Sustainability, 12(11):1-19.
Hall J.K., Daneke G.A. and Lenox M.J. (2010). Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing, 25(1):439–448.
Jyoti B. and Singh A.K. (2020). Characteristics and determinants of new start-ups in Gujarat
(India). Entrepreneurship Review, 1(2):1-25.
Karimi R.F. and Chashmi S.A.N. (2019). Designing green entrepreneurship model in sustainable
development consistent with the performance of Tehran industrial towns. Journal of
Business-To-Business Marketing, 26(1), 95–102.
Moya-Clemente I., Ribes-Giner G. and Pantoja-Dıaz O. (2020). Identifying environmental and
economic development factors in sustainable entrepreneurship over time by partial least
squares (PLS). PLoS ONE, 15(9):1-17.
Omoruyi E.M.M., Olamide K.S., Gomolemo G. and Donath O.A. (2017). Entrepreneurship and
economic growth: Does entrepreneurship bolster economic expansion in Africa? Journal of
Socialomics, 6(4):1-11.

14
Rusu V.D. and Roman A. (2017). Entrepreneurial activity in the EU: An empirical evaluation of
its determinants. Sustainability, 9(1679):1-16.
Shakabatur J., Bar-EI R. and Schwartz D. (2022). Innovation and entrepreneurship for sustainable
development: Lessons from Ethiopia. Progress in Planning, 160(100599):33-56.
Singh A.K. and Ashraf S.N. (2020). Association of entrepreneurship ecosystem with economic
growth in selected countries: An empirical exploration. Journal of Entrepreneurship,
Business and Economics, 8(2):36-92.
Singh A.K. and B. Jyoti Singh (2020). Implications of intellectual property protection, and science
and technological development in the manufacturing sector in selected economies. Journal
of Advocacy, Research and Education, 7(1):16-35.
Singh A.K. and Jyoti B. (2020). Factors affecting firm’s annual turnover in selected manufacturing
industries of Indian: An empirical study. Business Perspective Review, 2(3):33-59.
Singh A.K. and Kumar S. (2021). Assessing the performance and factors affecting industrial
development in Indian states: An empirical analysis. Journal of Social Economics Research,
8(2):135-154.
Singh A.K. and Kumar S. (2022). Expert's perception on technology transfer and
commercialization, and intellectual property rights in India: Evidence from selected research
organizations. Journal of Management, Economics, and Industrial Organization, 6(1):1-33.
Singh A.K., Arya A. and Jyoti B. (2019). A conceptual review on economic, business, intellectual
property rights and science & technology related activities in Asian economies. JNNCE
Journal of Engineering & Management, 3(2):1-22.
Singh A.K., Issac J. and Narayanan K.G.S. (2019a). Measurement of environmental sustainability
index and its association with socio-economic indicators in Asian economies: An empirical
investigation. International Journal of Environment and Sustainable Development, 18(1):57-
100.
Singh A.K., Jyoti B., Kumar S. and Lenka S.K. (2021). Assessment of global sustainable
development, environmental sustainability, economic development and social development
index in selected economies. International Journal of Sustainable Development and
Planning, 16(1):123-138.
Singh A.K., Kumar S., Sharma A.K. and Sinha S. (2022). Does green entrepreneurship have an
association with sustainable development and its components? Evidence from country-wise
panel data investigation. In: Magd, M., Singh, D., Spicer, D. & Syed, R. T. (Eds.).
International Perspectives on Value Creation and Sustainability Through Social
Entrepreneurship, IGI Global.
Tasnim N. and ibne Afzal M.N. (2018). An empirical investigation of country level efficiency and
national systems of entrepreneurship using data envelopment analysis (DEA) and the tobit
model. Journal of Global Entrepreneurship Research, 8(37):1-17.
Wennekers S., van Stel A., Carree M., and Thurik R. (2010). The relationship between
entrepreneurship and economic development: Is it u-shaped? Foundations and Trends in
Entrepreneurship, 6(3):167-237.
Zaki I.M. and Rashid N.H. (2016). Entrepreneurship impact on economic growth in emerging
countries. The Business and Management Review, 7(2):31-39.
Zeng J. and Ren J. (2022). How does green entrepreneurship affect environmental improvement?
Empirical findings from 293 enterprises. International Entrepreneurship and Management
Journal, 18(1):409-434.

15
 Chapter 2

Variations in Entrepreneurial Outlook among Different

Generations for Business Competitiveness in
Emerging Economies

Dr. Shalini Sharma*

GNIOT Institute of Management Studies,
Greater Noida, Uttar Pradesh, India- 201307
E-mail: [email protected]
Dr. Shikha Bharadwaj
Indian Institute of Management,
Sambalpur, Orissa- 768019

*Corresponding Author

Abstract
Indian economy along with the other BRICS nations has been predicted to emerge bigger than
the economy of the G6 countries by 2050. Therefore, it becomes imperative for the Indian
economy to be more entrepreneurially rigorous. The present article attempts to study the two
generations of entrepreneurs and their mindset for business competitiveness in the context of
emerging economies in India. In this article the influence of the initiative on stimulating the
entrepreneurial mindset required for the business competitiveness is examined through a
content analysis on multiple case-study approach. The institutional economic theory has been
taken as a theoretical framework, Gen Y/ Millennials/Gen Y factors include innovation,
Contribution to society, secure future, Venturing, Passion, recognition, Profitability and team.
Gen X factors include Concern for others, identify opportunity, Deprivation of basic needs,
competition, Profit, networking, taking risk and financial viability. Commonalities among both
the generation were quality, clear vision, credibility, idea to change and niche. This article also
serves several practical suggestions for the policy makers in terms of designing administrative
initiatives to promote entrepreneurial education and consequently, entrepreneurial mindset.

Keywords: Entrepreneurial Mindset, inter-generational difference, business competitiveness,

Gen X, Gen Y/Millennials/Gen Y,

1. Introduction
The hub of entrepreneurial activities is shifting from mature markets like US, Japan, Germany,
Italy, France and the U.K. to the emerging economies like India along with the other BRIC
economies Russia, China and Brazil which are also predicted to emerge larger than the
economies of G6 countries (PWC, 2017). Entrepreneurship is considered to be the accelerator
of economic development formation and growth of new firms, thereby, alleviating poverty and
producing employment by creating jobs and generating wealth (Choubey, Sinha and
Pattanayak, 2013). The past few decades have seen huge innovations in the area of technology
leading to changes in the organizational and business models too that catapult the developed
economies (Foo et. al. 2020), by fuelling the industrial growth leading to increased investments,

16
employment, product and service diversity, international trade and contribution to Gross
Domestic Product(GDP).

The development of an entrepreneur involves the development, assessment and exploitation of

the opportunities which may be a tedious process and not everyone will have the intent to be
an entrepreneur. Not everyone is born to be an entrepreneur because these individuals are born
with different traits. Entrepreneurship is believed to emerge out of gut feeling and also passion.
The study of entrepreneurship has multiple facets and the understanding of various factors
responsible for pursuing entrepreneurship. Many researchers in the area of entrepreneurship
have focussed on entrepreneurial mindset (EM) and the role of individual characteristics in
creating new ventures. Various previous researches have shown that the failure to understand
the difference of mindset between different generations of entrepreneurs leads to
miscommunication, misunderstanding, conflicts and lower employee performance. Unlike
non-entrepreneurs, entrepreneurs differ in thought process and orientation towards their job
which has a significant impact on their businesses.

Generations of Entrepreneurs
Generations of entrepreneurs can be segregated in two perspectives, first in terms of succession
of their ventures: First generation entrepreneurs and second generation entrepreneurs and
second as per the era in which an entrepreneur is born. The generations so far studied by the
research scholars are divided into four major categories depending on the time-period of their
birth and work span. Since each generation differs from others in terms of values & views,
career aspirations, fears & disappointments, hopes & delights (Zemke et al. 2000) therefore
success to every entrepreneur is predicated differently. The young entrepreneurs are believed
to value creativity, be flexible and appreciate the technological advancements which moves the
yardsticks makes the real difference which may result in a better performance owing to the
technology driven approach and flexibility in the working environment. This generation is said
to be more result-driven rather than process oriented. What is considered to be the foremost
requirement of the 21st century is the expertise in navigating the technological needs of several
other industries (Singh, 2019) and which is there very much in this generation.

2. Literature Review
The innovation in entrepreneurship leads to the new ways of scaling the growth ventures,
consolidating the fragmented markets, creation of new market niches, and development of a
new social ecology of entrepreneurs (Claes & Vissa, 2020; Dunlap & Klueter, 2018; Shankar
& Narang, 2019). The entrepreneurs in the emerging economies are more cautious to take risk
as the failures are not well taken by the society. This has to do a lot with how the society at
large reacts to the failures of the entrepreneurs. The exit of the entrepreneurs in the emerging
economies is taken as a taboo from the society, friends and families (Foo et.al 2021). This plays
a strong role in framing the entrepreneurial mindset for different generations because different
generations may have a different mindset for venturing out in any area.

Entrepreneurial Mindset (EM)

A mindset is a way of thinking about someone who will influence behaviour and attitudes. This
will determine the way of life that will be taken by someone. Kollman and Stokes (2014)
described entrepreneurial mindset (EM) to be an action driven mechanism for the success of a
venture as it is related to a definite action. EM is natural to individuals in the corporate also

17
despite the invocations of various barriers (Kuartko et. al 2021). Krueger and Carsurd (1993)
considered EM to be central to differentiate the process of entrepreneurship because it lays the
foundation of any venture (Sharma, Bhardwaj and Gujral 2019). It is also said to be a resultant
of entrepreneurial behaviours through dispositional beliefs about entrepreneurship and
opportunity (Pidduck et.al., 2021). It could also be defined as a goal orientation towards
entrepreneurship. EM is comprised of two principal orientations, one toward finding and
selecting potential solutions, the other focused on implementation and execution of these
solutions (Lynch and Corbett 2021). Explicit business knowledge is to be gradually increased
only when professional, field-specific knowledge has been adequately accumulated
(Mäkimurto-Koivumaa and Belt 2016). The knowledge may be transferred from one
generation to the other, through unconscious observation and assimilation. Though the
transmission of entrepreneurial intentions within families is complex and involves more than
one generation (Laspita et.al. 2012, Sharma et.al., 2019). The generational characteristics play
a significant role in how people prefer to be led and managed (Salahuddin, 2010). A major
challenge for a multigenerational organization is to handle the diversity in the organization
(Kraus 2017). The importance of generational differences within the field of organizational
behaviour has grown over the years.

The generational research marks back to 1952 with the description of generational groups to
cohort- a collective group of people born in the same time period, location and experiencing
the same events. This showed that The Traditionalists, also called Veterans or the Silent
Generation are considered to be the eldest group of generations said to be born between 1925-
1945. The traditionalist are followed by the Baby Boomer generation, or the Boomers,
variously reported as to be born in the beginning between 1940 and 1946 and ending anywhere
between 1960 and 1964. The next following generational group is the Generation X or Xers.
The birth year begins somewhere in the early 1960s and ends anywhere between 1979 and
1982 with even less agreement on the time span of the birth year. The next generational group
is Generation Y, also called Millennials/Gen Y or Nexters (Kraus 2017). The birth year of this
generation is variously stated as beginning between 1979 and 1982 and ending in the late 1990s
(Jeffries & Hunte, 2004; Kupperschmidt, 2000; Patterson, 2007; Reynolds, 2008; Smola &
Sutton, 2002). The latest generational group is Generation Z or the Mobile Generation. The
birth year of this generation is mostly reported to be after the year 2000 (Ozkan & Solmaz,
2015).

A survey “Millennials/Gen Y at Work: What they Really Think1” done by the Bentley
University, Massachusetts suggests that this generation discerns that career success will require
them to be more agile, independent and enterprising than their past generations (Susan, 2005).
As per Fred Truffle, (Director- Bentley’s Entrepreneurial Studies program), “Millennials/Gen
Y (also called Generation Y) are realizing that starting a company, even if it crashes and burns,
teaches them more in two years than sitting in a cubicle for 20 years,”(Forbes.com)1. According
to McCrindle (2006) the life of Gen Y is not linear unlike the Gen Xers. It is a mosaic pattern
with lots of adventures and learning. As per him, Gen Y not only focuses on earning profits but
also creating an environment of sustainability.

1
Accessed and sourced from www.forbes.com on Feb 17, 2019 at 3:36(IST)
https://www.forbes.com/sites/robasghar/2014/11/11/study-millennials/Gen Y-are-the-true-entrepreneur-
generation/#b5e726073dc4

18
Generations
As defined by Strauss and Howe, (1991), the term generation is “a cohort-group which spans
approximately the phase of life with fixed limits”. Generations share a group of attitudes like
lifestyles, self-driven approach or outer-driven approach towards life, generosity or selfishness
in a span of twenty two years. The generation theory proposes that those people share same
values, behaviours and lifestyles that are born in the same era possibly go through similar
technological, economic and political changes (Ensari, M. Sebnem, 2017;Marshall,1999;
Delahoyde, 2009; Chen,2010). Smalo and Sutton (2002), McCrindle (2006)and Vesterinen, P.
L., and Suutarinen, M. (2011) classified the generations into 5 categories beginning from the
1920s. Their classification is as follows:

Table 1: Generations Classification

Generation Time Period Career Stage

Silent Generation 1925-1945 Majority Retired
Baby boomer Generation 1945-1965 Either retired/ declining stage of career
X Generation/ GenX 1966-1979 Mid-Career Stage and late Career Stage
Y Generation/ Millennials 1980- 1995 Mid-Career Stage/ establishment stage of career
goals
Source: Ensari, M., (2017). A study on the differences of entrepreneurship potential among generations. Research
Journal of Business and Management. 4. 52-62. 10.17261/Pressacademia.2017.370.

The success rate of the age group 40-50 is found to be five times more than the cohort of 20-
30 years (Schramm, 2018) and this is because of either the generation gap conflicts or the
chances of the age group from 20-30 years reaching the success rate at a much later time than
the 40-50 age group (Lower 2008). The Gen-Xers were found to be smarter in money matters
than the Millennials /Gen Y and baby boomers because of the fact their exposure to more
recessions in the economy, Entrepreneurs India, Nov 20172.

Gen-Xers and Millennials/Gen Y Entrepreneurial Mindset (EM)

According to Smith and Turner (2015), 79 percent of this generation would go ahead for
leaving their jobs to become entrepreneurs, believing that crafting their own path would be
more satisfying and benefitting. The generation has more self-expression and self-awareness,
because of
the exposure to the technology since their initial days and has confidence in doing almost
anything, thus supporting their entrepreneurial mindset. On the contrary the 2016 BNP Paribas
Global Entrepreneur Report reveals certain facts about the millennial entrepreneurs or the
millennipreneurs as they are famously known:
● The average annual business turnover of the millennials/Gen Y’ enterprises is
outperformed by 43percent by the baby boomers’ businesses.
● 78percent of successful Millennipreneurs have a family history in business.
● Women Millennipreneurs expect a profit margin of close to 35 percent for 2015.
The Gen-Xers showed a great deal of zeal as compared to their predecessors and it was never
money which drove them to work. William Dennis (2001) quotes about the Gen-Xers

2 Henry,P., (2017)." Why Some Startups Succeed (and Why Most Fail)," Entrepreneur India. Retrieved from
https://www.entrepreneur.com/article/288769

19
“Common wisdom has held the prime age of someone starting a business was in the 30s and
late 40s, after people have had a chance to get business experience, make contacts, and amass
working capital”. Gen-Xers are more independent (Murphy, Gibson and Greenwood et al.,
2010) and trust their own knowledge and wisdom in taking decisions (Richard, 2007).
However, it’s just the reverse with the Millennials/Gen Y. Ismail, M. (2016) maintains that
Gen- Xers are more influenced by self-direction than the Millennials/Gen Y. Warburton and
Sherwood, (1996) maintained that hedonism is believed to contribute to happiness by positively
resulting in the physical health of an individual, whose influence is higher in the Millennial
Generation than the Gen-X (Ismail, 2016).

Caird (2006) defined an enterprising person as someone who is opportunistic, information and
expertise seeking when taking risks. He also maintains that the entrepreneurs who score high
on calculated risk taking have the qualities of being decisive, self-aware, and analytical and
goal-orientation and have effective information management skills. Weinstein ( 1969) argued
that people who with internal locus of control (Int. LoC) take the onus of successes and
failures, and attribute results to his own potential and effort while those with an external LoC
leave to ease or difficulty of the task, luck, fate, or being in the right place at the right time.
According to Caird (2006), people with Int. LoC “tend to be proactive, determined,
opportunistic, and self-confident”.

Gen-Xers and Millennials /Gen Y Entrepreneurial Success (ES)

According to Smale (2019), the Gen-Xers associate determination and confidence of an
entrepreneur to be the real factor of success instead of only the financial resources. They seem
to be more contented, confident, hardworking and above all determined towards their goal with
a pinch of belief of luck too in their success ( Murphy et. Al. 2010).

Whereas Millennials/Gen Y emphasize more on recognition, inspire others by making a mark

of them, autonomy in operations, focus on now, value work-life balance and enjoy life rather
just earning money (Dhawan & Joni, 2015, Keeter & Taylor, 2009). Eventbrite (2013), in his
recent study reported that around 78% of the millennials like to meet new people, go for
spending their money on any desirable experience, and wishful purchasing which makes them
happy. As per him, they are more prone to take bigger risks, which are driven by their passion.
They are mission oriented and value their peers, subordinates and working environment.

Objective of the Study

The objective of the study is to identify and relate the entrepreneurs from different generations
in perspective of their mindset towards success in the context of emerging economies. This
research article intends to investigate whether the entrepreneurs of different generations differ
in their mindset towards success or not. The generations under study are the Gen-Xers and
Millennials/Gen Y.

3. Research Methodology
The research was conducted on four mid-sized firm those who were well established with more
than 5 years of stay in market. These companies were in product as well service segment. These
organization were chosen strategically to understand the entrepreneurial orientation, none of
these organizations belong to family business, these were all first-generation business. The
rationale for inclusion of different organizations was two folded i) they operated in different

20
geographical areas and different industries. This gave a scope to the researcher to study the
prevalence of EM in heterogeneous conditions and relationship of different mindset with ii)
They were non family business. The first-generation entrepreneurs have to deal with the major
risk taking while setting up the enterprise which again is a parameter to gauge the EM of the
respondents.

This article employs a case-study methodology. The approach adopted by the authors was an
interview based multi-case study approach. (Eisenhardt, 1989). Multiple-cases help to observe
and understand the pattern of relationship among various variable through close examination
and evidences. In relation to achieve the defined objective, authors conducted content analysis
with the help of Atlas.ti 8 Software. The interview bites of respondents were collated,
transcribed and a common theme among inter-generation were identified and shown in Fig 1.
The study involved 4 face-to-face interviews with Directors and Founders, which were
conducted in a hierarchical way.

Data Collection
The data were collected employing both qualitative and quantitative methods. In order to
triangulate the findings of the cases and augment the validity and reliability of the study (Yin,
1984), different documental material, questionnaires, interviews, and participant observation
have been used. The major data was collected through the interviews and observation. The four
cases thus built characterize the secondary and primary data both, secondary data through
company records and primary through interviews with semi-structured questions (Sharma et.
al., 2019). After the finish of practical experience, another questionnaire was emailed to their
in-site business tutors.

Additionally, a participant observation approach was adopted during the evaluation process of
the programme. In this period, the researchers of this study participated in that process and it
allowed us to collect different observations during informal meetings and conversations.

Samples and Participants of the Study

In order to accomplish the objectives of the paper, researchers chose specific characteristic
participants as informants of the research. Each participant represents his/her entrepreneurial
venture. Firstly, to analyse the entrepreneurial success (ES), only those ventures which
sustained for more than seven years were chosen. Secondly, in order to identify differences in
inter-generational mindset, equal number of participations from Gen X and Millennials/Gen Y
was taken. The researcher has studied four first generation entrepreneurs of different industries
viz., supply chain, education, FMCG and Aggregators in India and Indonesia. The participants
were the entrepreneurs referred to in the study as Respondent 1, Respondent 2, Respondent 3
and Respondent 4 respectively.

The reason to study these entrepreneurs was (1) They all belonged to the first generation of
entrepreneurs and (2) they operated in different geographical areas and different industries. Out
of the four entrepreneurs studied, two (Respondent 2 and 3) belonged to Gen- X and the other
two (Respondent 1 and 4) belonged to the Millennial Generation. The main characteristics of
the samples are summarized in Table 2.

21
 Table 2: Sample Characteristics

Characteristics Respondent 1 Respondent 2 Respondent 3 Respondent 4

First generation Entrepreneur Yes Yes Yes Yes

Generation X - Yes Yes -
Millennial Generation Yes - - Yes
Age of Firm (in yrs) 17 11 8 9
Geographical Location Indonesia India India India
CEO/Chairman/person Chairperson CEO CEO CEO
Industry Education Supply Chain FMCG Education/Training
Business School Electric Fire-Resistant Herbal Tea Faculty

Table 2 depicts the characteristics of the respondents, signifying a mix of homogeneity and
heterogeneity in the composition of the sample. Homogeneity because the participants belong
to the same first generation of entrepreneurs, their hierarchical position in their ventures and
the business age which exceeds a minimum of seven years (a considerable age of the business
when it is deemed to be successful) and heterogeneity because of the they belong to viz., Gen
- X and Millennial Generation/Gen Y, their business areas and locations. The characteristics
which are not applicable to any participant is marked a dash (-) in the table.

4. Data Analysis
There were two inter-related phases in the data analysis. The first phase considered the
entrepreneurial mindset that builds the intention and then converts into action. The second
phase identified the factors of entrepreneurial success and process orientation. The first phase
and second phase data were collected in a systematic manner, recorded and transcripted,
facilitated with a methodological identification of over-arching themes. These themes were
separately coded in a research inquiry that focused on inter-generational differences in
Entrepreneurial mindset and orientation of an entrepreneur. The data gathered from Gen X and
Millennials/Gen Y involve cyclical iterative process to draw inferences.

Table 3: Identification of Proper Instruments and Interview Protocol

Interview protocol
 A formal Introduction between the interviewer and the research participant
 Outline the purpose of the research, including aims and objectives
 Discuss potential research outcomes, ethical issues and obtain consent
 Share the outline structure of the interview with the participant.
Interview questions based on the research themes
About You
1. To begin with something new in life, motivation is a factor which plays a very
important role. What has been your motivation to be an entrepreneur and the
industry you chose to be in?
2. There are several definitions of entrepreneurs in the books, some say that they are
the ones who do something unique in the market, what is your definition of an
“entrepreneur”?

Theory behind earning Profits

22
 1. In this cut- throat competition every businessman focuses on earning returns over
the invested money i.e., the profits that the firm reaps. It could also be done at times
by compromising the quality of products. As an entrepreneur what is your strategy
to fight the competition?
2. In sustaining any business customers play a very important role. Can some
deviation here and there in the quality of the products/services viable to earn profits
and sustain in the market? Does this practice affect the customer satisfaction level
to a noticeable extent?

Entrepreneurial Success
1. As an entrepreneur when you started your journey to achieve something big in life,
what was the definition of that achievement and how do you align it with the
success of your business?
2. Do you really believe after achieving your first set goal you are a successful
entrepreneur?

Team Orientation and Decision making

1. As the head of your organization, you would have been dealing with the groups of
people working under you. Taking your instructions and giving their inputs as well.
How far do you agree with the statement that “Team work is integral to the success
of any business?”
2. It is often seen in the present era that the organizations value the team culture and
the employees also have a say in decision making. What is the culture in your
organization so far this strategy is concerned?

The table given below elaborates the main theme/ repeated words by the respondents. The
Density includes strength of a code in terms of repetitive words.

Table 4: Coding and Themes

ID Themes Quotation Content Codes Density

1:1 concerned about concerned about the educational system in this Concern 2
the educational city on Java Island - Surabaya, Indonesia. She Social
system in this came along with her husband to this city some problem
city on Java years back
Island - S…
1:2 The good ones The good ones were highly expensive whereas Deprivation 3
were highly the one’s which were affordable didn’t have of good
expensive quality education. It was then only when the education
whereas the idea of starting a school with international Idea to
one’s which standards hit her. She is an MBA in Finance change
were afford… and Marketing with a pharmacy background. A Qualified
well-read woman with high aspirations and an
Indian expatriate in Indonesia laid the
foundation of SpIns Interactional School in
2003. She dedicated herself to the progress of
the future of the wards of the Indian expats’ in
the city of Surabaya, Indonesia. The drive
behind this venture was deprivation of good
education for children in Surabaya.

23
ID Themes Quotation Content Codes Density
1:3 I envisioned a I envisioned of a worthy school at a reasonable Affordable 3
worthy school price for the children of foreigners in the city education
at a reasonable of Surabaya, Indonesia which was missing the Idea to
price for … most in this place. I started with an intention to change
serve the society, since as per me, an Society
entrepreneur is someone who brings forth an
idea or a concept to the society for its
betterment.” Began with 14 students only now
is counted among the big International schools
in Surabaya in terms of student strength and
nationalities represented. It has over 500
students from 15 different nationalities.
Majority is formed by the Indian students
among these foreign students.
1:4 Initially the Initially the journey was difficult and back- Clear vision 2
journey was breaking. When you start your journey there Financial
difficult and are a lot of hiccups. Be it financial, societal or viability
back-breaking. feasibility issues, they usually eventuate. We
When you started with a vision to provide good schooling
start… for the children of Indian expats as there were
not many schools which provided English
medium schooling in the area. The school
started as a creche with a small number of
children of Indian expat friends and
acquaintances.
1:5 An entrepreneur An entrepreneur puts profit as his last priority”. Contributio 3
puts profit as his She has a firm belief in spreading the concept n to society
last priority”. to the society for the people after patenting it. Profit is
She has a This is what she emphasizes upon when it secondary
firm… comes to defining success, “it’s not the profit Recognition
margins you earn, instead it is the acceptance,
nurturing and following of your idea that you
give to the society. People recognize your
endeavors over a period of time, it all depends
on your perseverance and faith on your idea
you’ve started your journey with”
1:6 15 years 15 years 15 years 1
1:7 MD to work, but MD to work, but instead, it is the whole team Flat 2
instead, it is the and the more an organization believes in the organizatio
whole team and team, more will be its chances of succeeding n
the more an and flourishing in the business. Team
organize…
1:8 We don’t bother There’s no bothering about the competitors as Competitio 4
much about the we provide niche education, already n
competitors as recognized in the market which is also innovation
we provide… affordable for the people in this area. If at all Niche
there’s someone to compete then also, we will Quality
be far ahead of him. Our innovation and quality
has made us stand out in the market and kept
competitors away.

24
ID Themes Quotation Content Codes Density
1:9 It’s the fear of It’s the fear of sitting idle at home which Fear of 1
sitting idle at bothered me a lot and finally drove me to think sitting idle
home which of my own company at the age of 60”. The
bothered me a company initially started with the supply of fire
lot and fina… proof cables from the manufacturers to the end-
users which were primarily builders. Soon the
company expanded into the sourcing and
selling business of different items like Fire R
1:10 The books say, The books say, an entrepreneur is someone credibility 3
an entrepreneur who takes risks. For me an entrepreneur is a identify
is someone who person who always strives for the opportunities opportunity
takes risks. For around and makes profit out of them to the takes risk
me an e… greatest extent possible”. He has always been a
go- getter. From a business which demanded
investment at the initial stages he along with
his team has built it to the worth of over 5
crores. Once a firm believer of luck now gives
the credit of his success to hard work and
determination. As he states, “ For efforts to
bear fruits, they have to be amalgamated with
patience and perseverance”. Success to him is
the satisfaction which he gets after coming
back from work. Money becomes an essential
part of any business but simply focusing on
earning money cannot be a motive of an
entrepreneur.
1:11 working working together has given different Growth 1
together has dimensions of experience and exposure to the orientation
given different business and the growth orientation for the
dimensions of business has been mutually cultivated together.
experience and Exemplary combination of experience and
expo… youth.
1:14 tea industry was tea industry was to spread awareness about the Contributio 3
to spread benefits of a variety of teas in people. There is n to society
awareness about a lack of the trend of Organic and whole Teas Niche
the benefits of a in India. This is despite the fact that we lead in Society
variety of… tea consumption. There is a variety of such teas
like Black, Green, Oolong and White. After the
Green tea being well accepted in the Indian
market, the prevalence of these premium
segment teas was a challenge. The reason
being the cost of these teas and lack of
awareness among the people. The biggest issue
was because the tea traders normally exported
these teas to the developed nations because of
the price factor and the people of India were
deprived of t
1:15 Health Health health 1
1:16 Purpose Purpose purpose 1

25
ID Themes Quotation Content Codes Density
1:17 vision of Bud vision of Bud white Teas Pvt. Ltd. is to aware Clear vision 3
white Teas Pvt. people of the enormous benefits these teas Competitio
Ltd. is to make have on our health. There are twenty-eight n
people aware of varieties of teas to suit everybody’s taste. The Concern
the immense… teas include Classic teas, Spices and Herbs
flavored, Herbal teas, Fruits and Flower
Flavored, and Gourmet Teas. Since These teas
were a little difficult to click with the
customers, therefore, we have now ventured
into the segment of ayurvedic teas and are also
supplying them to some big brands. Also,
pricing could be a big factor because of which
the middle-class market did not pick up.
1:18 An entrepreneur An entrepreneur is someone who conceives a Financial 6
is someone who new idea or a concept and further implements viability
conceives a new it, for the betterment of the society. A real Idea to
idea or a entrepreneur may not target to earn only but change
concept and instead, his top most priority will be to deliver identify
further quality. opportunity
implements it, Profit is
w… secondary
Quality
takes risk
1:19 persistence on persistence on quality and continuous Competitio 4
quality and innovation keeps him away from the n
continuous competitors’ phobia. He firmly believes in innovation
innovation providing quality and innovating on a routine Niche
keeps him away basis which helps the company have a variety Quality
from t… of products. He has not decentralized the
decision-making process, so that he does not
blame anyone if the decision does not meet the
target. Today Bud white Teas is a fairly known
name in the market and growing every day.
The company envisions the goal of culture of
growing a health-tea drinking habit in India
and this to be a daily routine of every
individual in the country.
1:20 The company The company envisages the goal of growing a The 1
envisages the health-tea drinking culture in India and this to company
goal of growing be a daily routine of every individual in the envisages
a health-tea country. the goal of
drinking culture
in India…
1:21 ours in the past ours in the past many years. Quantica confident 4
many years. Education Pvt. Ltd. Was founded in 2001. It dynamic
Quantica runs the aggregator business in the field of go-getter
Education Pvt. education. The founder and CEO of Quantica negotiation
Ltd. formulated is a civil engineer by qualification and a skills
in… dynamic chap who is a go-getter and quite
confident of his negotiation skills.

26
ID Themes Quotation Content Codes Density
1:22 someone who someone who unceasingly thinks for the right Clear vision 3
unceasingly path, who innovates and evolves with the innovation
thinks for the dynamics of the environment”. A dynamic Quality
right path, entrepreneur he firmly advocates customer
someone who delight to be the top most priority of the
i… company. The success mantra he follows is of
reducing his operational costs. Unlike other
entrepreneurs, he never keeps profit to be the
lowest priority. According to him, “Every
Business is profit Business” and “by keeping
your operational costs low, one can earn good
profits while delivering quality. For a business
to flourish the founder should enjoy it as well
since success is something you enjoy doing,
giving you freedom to think, flexibility and
authority and the ratio of your progression by
each passing day.
1:23 A dynamic A dynamic entrepreneur he firmly advocates Cost 4
entrepreneur he customer delight to be the top most priority of effectivenes
firmly the company. The success mantra he follows is s
advocates of reducing his operational costs. Unlike other Customer
customer entrepreneurs, he never keeps profit to be the delight
delight to be lowest priority. According to him, “Every Flexibility
the… Business is profit Business” and “by keeping Profitability
your operational costs low, one can earn good
profits while delivering quality. For a business
to flourish the founder should enjoy it as well
since success is something you enjoy doing,
giving you freedom to think, flexibility and
authority and the ratio of your progression by
each passing day.
1:24 His belief is in His belief is in the proverb, “as you sow, so credibility 2
the proverb, “as shall you reap”. “The major chunk of my Networking
you sow, so business comes through networking. It’s a give
shall you reap”. and get in return phenomenon. Probably they
The major benefit me in return of the benefits I have
chun… extended to them somewhere in the past which
could be stated as my Karma along with my
credibility I have in the market that people trust
me.” QES as famously known is doing quite
well all over the country and also expanding its
business outside India in a short span of 5
years. The credit obviously goes to the CEO
but behind him are his close associates whom
he trusts a lot during taking decisions, but the
final decision has to be his after contemplating
all the options given

27
ID Themes Quotation Content Codes Density
1:25 I chose to begin I to begin my own venture only when I retire Enterprising 1
my own venture from my services. Being an enterprising person
only when I during my exposure to sales in job gave me
retire from my deeper insights of the market. We started with
services the supplying of fire proof cable from the
manufacturer to the end user. We are four
partners in the company including me and my
wife and the t
1:26 The fear of The fear of doing nothing after retirement and Passion 3
doing nothing my passion for teas of different variety. I had a Secure
after retirement flair for buying a variety of teas during my future
and my passion visits to different places. While contemplating Venturing
for teas … on the future, with some ex-colleagues, I
conceived the idea to venture in a tea business.
And when the time to implement it came, I was
the only one to continue with the idea.
1:27 entrepreneur is An entrepreneur is someone who conceives a Contributio 2
someone who new idea or a concept and further implements n to society
conceives a new it, for the betterment of the society. A real Deprivation
idea or a entrepreneur may not target to earn only but of good
concept and instead, his top most priority will be to deliver education
further… quality. I have a firm belief in spreading the
concept to the society for the people after
patenting it. The same way I envisioned of a
worthy school at a reasonable price for the
children of foreigners in the city of Surabaya,
which this place needed dearly as this place
was deprived of such education system.
1:28 For me an For me an entrepreneur is someone who Contributio 3
entrepreneur is conceives an idea and further implements it, for n to society
someone who the betterment of the society. A real Idea to
conceives a new entrepreneur may not target to earn only but change
idea or a instead, his top most priority will be to deliver Profitability
concept and quality..
further
implements it,
for …

5. Findings
The content analysis on themes, helped researcher to develop a network, as shown in fig. 1. It
depicts the factors determining the Entrepreneurial mindset of Gen X and Millennials. The blue
boxes show the factors playing dominant role among Gen X, whereas green boxes were the
strong contributors in Millennials. However, research also shows some commonality among
the two. Thus, the orange boxes were common factors among both the generation.

28
 Figure 3: Network of factors identified as inter-generation differences in Entrepreneurial
mindset

6. Discussion
The research helped in identifying the similarities and differences between Gen x and Gen Y
mindset/ orientation towards entrepreneurship (Nguyen & Nguyen, 2019).

Gen X factors include innovation, Contribution to society, secure future, venturing, passion,
recognition, profitability and team. Interestingly while analyzing the data it was evident that
Gen X was more driven by assured future and profits. Most of them intend to contribute to
society for bigger cause with an innovative idea. Their mindset was built on following passion
with team that leads to recognition and profitability.

Gen Y/ Millennials’ factors include Concern for others, identify opportunity, Deprivation of
basic needs, competition, Profit is secondary, networking, take risk and financial viability.
Most of them initiated entrepreneurial venture due to deprivation of basic needs to society like
education etc., their concern for others was priority that led to opportunity identification and

29
risk taking. Gen Y showed the reflection of gig economy where the competition, networking
and co-sharing were commonly used (McCrindle 2006).

Commonalities among both the generation were quality, clear vision, credibility, idea to change
and niche. No matter whatsoever business they intend to invest both the generation identifies
importance of clear vision and idea to change. Gen X and Gen Y/Millennials agreed in
existence of a venture depends upon quality and credibility. Both generations also believed in
the strategy of initiating an idea, experimenting and adopting with niche segment.

7. Conclusion
This research paper identifies number of similarities and differences in the Entrepreneurial
mindset of Gen X and Gen Y/Millennials. Gen X mindset is largely dominated by financial
security, calculated risk taking and to bring change in existing business whereas Gen
Y/Millennials are influenced by identifying opportunity in every problem, community-driven
and collaborative. Gen X and Gen Y/Millennials reinforced that Entrepreneurial success is in
quality of services, customer delight and recognition across stakeholders. Gen X is more
concerned with stability in the business whereas Gen Y is affected by competition. Thus, Gen
Y/Millennials explore and experiment with the opportunities around.

A key implication for management practice from this empirical study is that embedding of
entrepreneurial mindset in early education stage, helps in better implementation of it later.
Another implication is the extent to which it is visible and applicable with present generations
is significant due to government support and entrepreneurial eco-system across the globe
(Prahalad, 2005).

References
Asghar, Rob Nov 11, 2014, Study: Millennials/Gen Y Are the True Entrepreneur Generation
//www.forbes.com/sites/robasghar/2014/11/11/study-millennials/Gen Y-are-the-true-
entrepreneur-generation/#b5e726073dc4
Caird, S (2006). Entrepreneurship and innovation: a manager's perspective. Entrepreneurship.
Australia: Tilde University Press, pp. 247–266.
Caired, S. (1991a), Self assessments on enterprise training courses. British Journal of Education
and Work, 4(3), 63-80
Chen, H. (2010). Advertising and Generational Identity: A Theoretical Model. University of
Tennessee, 132-140.
Choubey, B., Sinha, T., & Pattanayak J., (2013). A Study of Skill-Related Factors Affecting
Entrepreneurial Success in India, The IUP Journal of Entrepreneurship Development, 10(3),
59-75. Retrieved from
https://search.ebscohost.com/login.aspx?direct=true&db=ent&AN=91675193&site=ehost-
live
Claes, K., & Vissa, B. (2020). Does social similarity pay off? Homophily and venture capitalists'
deal valuation, downside risk protection, and financial returns in India. Organization Science,
31(3), 576–603.

30
Delahoyde, T. (2009). Generational Differences in Baccalaurate Nursing (Doctoral dissertation,
PhD. Dissertation, College of St. Mary,
http://www.csm.edu/wfdata/files/Academics/Library/InstitutionalRepository/3.pdf acceesed
at 01.10.2016
Dennis, W. J., & Fernald, L. W. (2001). The Chances of Financial Success (and Loss) from Small
Business Ownership. Entrepreneurship Theory and Practice, 26(1), 75–83.
https://doi.org/10.1177/104225870102600105
Dhawan, Erica and Joni, Saj-Nicole. “Get Big Things Done: The Power of Connectional
Intelligence.” Palgrave Macmillan Trade. (2015).
Dunlap, D. R., & Klueter, T. M. (2018). Laggards, leading imitators or leapfroggers: How are
emerging markets innovating? Academy of Management Proceedings, 2018(1), 1–1.
Eisenhardt, K.M. (1989). Building theories from case study research. The Academy of
Management Review, 14,532-550.
Eisner, Susan P.S.A.M. Advanced Management Journal; Corpus Christi Vol. 70, Iss. 4, (Autumn
2005): 4-15.
Ensari, M.S., (2017). A study on the differences of entrepreneurships potential among
generations. Research Journal of Business and Management (RJBM), V.4, Iss.1, p.52-62.
Eugene A. Weinstein & Lawrence S. Beckhouse (1969) Audience and Personality Factors in
Presentation of Self, The Sociological Quarterly, 10:4, 527-537, DOI: 10.1111/j.1533-
8525.1969.tb01312.x
Eventbrite, “Millennials/Gen Y - Fueling the Experience Economy”, 2011-2013 http://eventbrite-
s3.s3.amazonaws.com/marketing/Millennials/Gen Y_Research/Gen_PR_Final.pdf
Fayolle, A., & DeGeorge, J., (2006). Attitudes, intentions, and behaviour: New approaches to
evaluating entrepreneurship education. In A. Fayolle & H. Klandt (Eds.), International
Entrepreneurship Education. Issues and Newness , 74-89.
Foo, M. D., Vissa, B., & Wu, B. (2020). Entrepreneurship in emerging economies. Strategic
Entrepreneurship Journal, 14(3), 289-301.
Irwin, K., Landay, K., Aaron, J., McDowell, W., Marino, L., & Geho, P.,(2018). Entrepreneurial
orientation (EO) and human resources outsourcing (HRO):A hero combination for SME
performance. Journal of Business Research, 90, 134–140.
Ismail, M. (2016). Cultural Values and Career Goal of Gen-X and Gen-Y: A Conceptual
Framework. Global Business and Management Research: An International Journal, 8(2), 1-
18.
Jeffries, F. L., & Hunte, T. L. (2004). Generations and motivation: A connection worth making.
Journal of Behavioral & Applied Management, 6(1), 37-70.
Keeter, Scott and Taylor, Paul. “The Millennials/Gen Y.” Pew Research Center (2009).
Kollmann, T., & Stöckmann, C. (2014). Filling the entrepreneurial orientation–performance gap:
the mediating effects of exploratory and exploitative innovations. Entrepreneurship Theory
and Practice, 38(5), 1001–1026. https://doi.org/10.1111/j.1540-6520.2012.00530.x
Kraus, M(2017), Comparing Generation X and Generation Y on their Preferred Emotional
Leadership Style, Journal of Applied Leadership and Management 5, 62-75.
Kupperschmidt, B. R. (2000). Multigeneration employees: strategies for effective management.
The health care manager, 19(1), 65&hyhen.

31
Kuratko, D.F., Fisher, G. & Audretsch, D.B. Unraveling the entrepreneurial mindset. Small Bus
Econ 57, 1681–1691 (2021). https://doi.org/10.1007/s11187-020-00372-6
Laspita,S., Breugst,N.,Heblich, S., Patzelt,H.,(2012, Intergenerational transmission of
entrepreneurial intentions, Journal of Business Venturing,27(4), 414-435,
https://doi.org/10.1016/j.jbusvent.2011.11.006.
Lynch, M. P., & Corbett, A. C. (2021). Entrepreneurial mindset shift and the role of cycles of
learning. Journal of Small Business Management, 1-22.
Mäkimurto-Koivumaa, S., & Belt, P. (2016). About, for, in or through entrepreneurship in
engineering education. European Journal of Engineering Education, 41(5), 512-529.
Marshall, G., (1999), Sosyoloji Sözlüğü (Çev. Osman Akınhay-Derya Kömürcü), Bilim ve Sanat
Yayınları, Ankara.
McCrindle, M. (2006). New generations at work: Attracting, recruiting, retaining and training
generation Y. The ABC of XYZ.
Murphy, E.F., Gibson, J.W., and Greenwood, R.A. (2010), “Analyzing generational values among
managers and non-managers for sustainable organizational effectiveness”, SAM Advance
Management Journal, Winter 2010, pp.33-55.
Nguyen, T. X., & Nguyen, T. Q. T. (2019). Factors Affecting Start-up Intention of Economics
Students in the South of Vietnam. Proceedings of the International Conference on Business
and Economics, 2019, 63-70.
Ozkan, M., & Solmaz, B. (2015). The changing face of the employees–generation z and their
perceptions of work (a study applied to university students).
Patterson, C. K. (2007). The impact of generational diversity in the workplace. Diversity Factor,
15(3), 17-22.
Pidduck, R. J., Clark, D. R., & Lumpkin, G. T. (2021). Entrepreneurial mindset: Dispositional
beliefs, opportunity beliefs, and entrepreneurial behavior. Journal of Small Business
Management, 1-35.
Prahalad, C. K. (2005). The fortune at the bottom of the pyramid: eradicating poverty through
profits, Saddle River. NJ: Wharton School Publishing/Pearson Prevezer, M.(2001).
Ingredients in the early development of the US biotechnology industry. Small Business
Economics, 17(1-2), 17-29.
PWC (2017). The long view: How will the global economic order change by 2050.
https://www.pwc.com/hu/en/kiadvanyok/assets/pdf/PwC_World_in_2050_final_report_(Fe
bruary_2017_edition).pdf.
Richard, S. (2007), “The right staff from X to Y: Generational change and professional
development in future academic libraries”, Library Management, Vol.28 No.8/9, pp.474-
487.
Salahuddin, M. M. (2010). Generational differences impact on leadership style and organizational
success. Journal of Diversity Management, 5(2), 1.
Schramm, C. (2019) “Burn the Business Plan: What Great Entrepreneurs Really Do”, Simon &
Schuster, 120-140

32
Schramm, Carl J. (2018), “Burn The Business Plan: What Great Entrepreneurs Really Do”.
Shankar, V., & Narang, U. (2019). Emerging market innovations: Unique and differential drivers,
practitioner implications, and research agenda. Journal of the Academy of Marketing
Science. https://doi.org/10.1007/s11747-019-00685-3
Singh, S (2019). Indian Tech Startup Funding Q1 2019: Funding Peaks For Growth Stage Startups,
Down For Ecommerce. Retrieved from https://inc42.com/datalab/indian-tech-startup-
funding-q1-2019-inc42-datalabs/
Smith, C., Turner, S., (2015), “ The millennial majority is transforming your culture”, pp, 4-20.
Smola, K., & Sutton, C. D. (2002). Generational differences: Revisiting generational work values
for the new millennium. Journal of organizational behavior, 23(4), 363 -382.
Warburton, D.M. and Sherwood, N., (Eds.). (1996), Pleasure and Quality of life, Wiley,Chichester.
Zemke, R., Raines, C, & Filipczak, B ( 2000). Generations at work: Managing the clash of
Veterans, Boomers, Xers and Nexters in your workplace 91st ed.). New York, NY: American
Management Association.

33
 Chapter 3

The role of Entrepreneurship to Women's Well-Being

in India: Evidence from the State of Karnataka
Dr Sunita Panicker*
Assistant Professor, Business Administration Department, UTAS-CAS-Ibri
Sultanate of Oman
Email: [email protected]

Prof. Asha S.K

Assistant Professor, Commerce, Kristu Jayanti College of Law
Bangalore, Karnataka, India
Email: [email protected]

*Corresponding Author

Abstract
Universally, entrepreneurship is accepted as the main driver of profitable growth. It has
appeared as an employment outlook and a way of adding women at diverse levels within an
economy. Internationally, women are gradually involving themselves in entrepreneurship ever
since the 1990’s (Rasheed, 2002), while they too accomplish sixty six percent of the global
effort, cultivate fifty percent of the food, but make only ten percent of the returns and possess
one percent of the assets (World Bank, 2020). Women entrepreneurs are gradually becoming
one of the elements of growth, predominantly in India. Karnataka is one of the top five states
in the whole of India, which is housing the maximum number of women entrepreneurs in the
nation with a majority in small and medium-sized businesses. Though the education sector sees
a concentrated number of women entrepreneurs followed by financial services, forestry,
insurance, livestock, and lodging. The influence that entrepreneurship has on the well-being of
women is not sufficiently discovered. Thus, the chapter aims at two vital objectives. Firstly,
to provide a theoretical understanding the current position of women entrepreneurship in India,
and how the prevalent ecosystem and the numerous government structures for women
entrepreneurs can be improved and enriched additionally to persuade more and more women
to start their own ventures. Secondly, to establish the contribution of entrepreneurship to
women’s personal well-being through an empirical analysis. For this, a cross-sectional research
design is adopted. Wherein, qualitative and quantitative data is gathered through surveys and
focus group discussions separately. A random sample of 80 respondents comprising 40 women
entrepreneurs and 40 women non-entrepreneurs will be selected from the State of Karnataka.
Quantitative data will be analyzed using MS Excel and SPSS while qualitative data will be
analyzed using content analysis. The findings state that Women entrepreneurs’ well-being is
better than that of women non-entrepreneurs. This clearly indicates that well-being plays an
imperative part in the progress of not only the women entrepreneurs but also the society as a
whole.

Keywords: Entrepreneurship, Women Entrepreneurs, Entrepreneurial initiative,

Entrepreneurial Challenges, Personal Well-being.

34
1. Introduction
Globally, entrepreneurship is recognised as a vital driver of economic progress (Mahadea,
2013). Entrepreneurship is the process of starting a new venture that involves both
opportunities and obstacles. Entrepreneurs play the role of a leader and a manger to meet the
requirements of running an enterprise. Entrepreneurship tends to bring in change in the social,
political and economic sections of a Nation. A boom in the Entrepreneurial ventures is regarded
as important sources of innovation, high productivity and employment. Governments are
looking forward to new business models that creates sustainable development and
entrepreneurship is one such model. According to OECD, Small and medium scale enterprises
are the vital contributors to employment creation as they account for 97% of the jobs in the
emerging countries. Majority of the Governments are taking immense efforts in order to
encourage and support small and medium scale entrepreneurs to drive employment
opportunities, increase standard of living and overall economic development of a country.
(SMEs and Entrepreneurship: The Way Forward to Job Creation and Growth - OECD, 2010)

Research directs that entrepreneurship is a field dominated by men (Muntean and Ozkazanc-
Pan, 2015), (Haus et al., 2013; Guzman and Kacperczyk, 2019), despite this claim we can see
an upsurge in the number of women taking up entrepreneurship. Women entrepreneurs just like
their counterparts are seen generating employment opportunities and bringing in a shift in the
demographics. This has arisen as a business opportunity and a method for coordinating women
into the economy at various levels. Past data shows that women entrepreneurs might encounter
various degrees of well-being relying upon the drives they perform and furthermore relying
upon their attributes (El-Namaki, 1991). Embracing a thought of working created by Sen
(1999), referring to important exercises that add to people groups' well-being; business venture
exercises should be visible as one of the working encompassing different things an individual
might add value.

Timmons (1989) characterizes entrepreneurship as a course of creation and building something

that is noteworthy from hardly anything. That is, it is the method involved with setting out or
holding onto freedom and seeking after it no matter what the assets as of now are controlled. It
includes the meaning, formation, and dissemination of values and returns to associations,
gatherings, people and society. The business venture is seldom a make quick money
recommendation. Moreover, Hisrich (2005) contends that a business venture is a course of
making a new thing with esteem by giving essential time and exertion, expecting monetary and
social dangers, and getting compensations of financial, individual fulfillment, and freedom.

In light of these definitions, obviously, the idea of entrepreneurship is more extensive and it is
characterized distinctively by various researchers. This possess challenges in estimating the
concept exactly and hence operationalizing the concept in research ends up being irrefutably
undeniable for one to evaluate it. Besides, this study accepts business venture ideas as a cycle
through which women foster business thoughts, which thus assistance to layout and run
different business efforts. These women might or might not hire others and the owners are
talented to obtain the subsequent benefits of well-being.

The notion of well-being is extremely expansive and is used in numerous circumstances in an

unexpected way (Paim, 1995). The use of well-being goes from explicit areas of well-being,
like financial, material, social, and mental, to every one of the areas influencing individuals
(Kukutai, 2006). A review led by Veenhoven (2004) proposes that the idea of well-being means
that something is in a good state. Past that, the idea doesn't, in totality, determine what is in a

35
good state, nor the rules for being in a good state. Likewise with different maxims, like
advancement and government assistance, Veenhoven (2004) proposes that the idea of well-
being should be explained by indicating what the term applies to and what it comprises of. In
view of these definitions, it tends to contend that the idea of well-being is wide and is
characterized distinctively by various researchers. The study views well-being as women's or
alternately individual's evaluative reactions to their lives in view of seven individual well-being
measurement constructs proposed by the International Well-being Group in 2013.

Literature supplements that women entrepreneurs are not freed of struggle in business ventures.
For example, Samiti (2006) and Tan (2000) categorized the main issues and difficulties that
affect women entrepreneurs into two general classes; monetary and social. Financial elements
contain rivalry on the lookout; failure to get to the market, trouble in admittance to raw
materials, absence of assets, absence of showcasing data; absence of creation/extra room; lack
of resources; undersupplied power, and absence of business development and training. The
various social elements comprise of the absence of social worthiness; having limited contacts
outside bias and class predisposition; society peers downward; the mentality of different
representatives; and relations with the labor force.

Regardless of the difficulties women entrepreneurs come across, there is a rising

acknowledgment given to the significance of aiding women entrepreneurs to further develop
their well-being (World Bank, 2002). A review led by Bosma et al. (2013) shows the presence
of 12, 60,00,000, women who have begun organizations in 67 nations all over the world.
Moreover, there are 9,80,00,000 women who run stable organizations whose fundamental
advantage is business creation. Around the world, just twenty percent of the women are in
formal employment and the remaining are in informal business including other livelihood plans
(World Bank, 2002). The current circumstance enables women to take part in entrepreneurship
as an alternate arrangement that can add to their well-being.

Furthermore, in emerging nations like India, women entrepreneurs are bound by difficulties
including the absence of capital, absence of business venture expertise, social segregation
because of social standards, and absence of networking (Vinesh, 2014). Notwithstanding those
difficulties, data on what they mean for women entrepreneurs is sparse. Apparently, it is hard,
to sum up, the difficulties since they are probably going to fluctuate contingent upon the unique
circumstance. Women in India have held a very important social, political and economic roles.
In recent times, India has seen a huge progress number of micro-entrepreneurs such as owners
of boutique businesses, women who run tech-led start-ups, and more. More women are
transforming into entrepreneurs propelled by enthusiasm, a desire to tackle an issue, and to be
monetarily free of the job framework (S. M. Ghouse et al., 2021).

Self-help groups (SHG), institutions, and individual initiatives from the rural and urban areas
support the women entrepreneurs in their undertakings (Chaudhry & Paquibut, 2021).In India,
there are quite a number of organizations known for the development of women’s
entrepreneurship, namely, the Entrepreneurship Development Institute of India (EDII),
National Bank for Agriculture, National Institute for Entrepreneurship and Small Business
Development (NIESBUD), and Rural Development (NABARD), and Small Industries
Development of Bank of India (SIDBI), etc. SIDBI has arrangements to cultivate operational
connections with numerous top national and international organizations to conduct promotional
and developmental activities of SSI (Small Scale Institution) units in Karnataka.

36
According to the States Startup ranking, Karnataka has been ranked as one of the best
performers. Indian Government on whole has come up with various schemes to promote
entrepreneurship and certain specific schemes such as the Stree Shakti Package for women
entrepreneurs, Cent Kalyani Scheme, Mahila Udyam Nidhi Scheme, Dena Shakti scheme and
other schemes to promote women entrepreneurship. The Karnataka state government also have
come up with exclusive schemes to promote women entrepreneurs which are discussed here.
The Udyogini scheme launched by the Karnataka State Women Development Corporation
(KSWDC) aims to assist women in being self-employed by providing loans at subsidised
interest rates. The other State government supported schemes executed by KSWDC are Women
Training Programme, State level exhibitions under Marketing Assistance Scheme, State
resource centre for counselling, Interest subsidy scheme from Karnataka State Financial
Corporation. Apart for these women specific schemes there are organizations such as the
Technical Consultancy Service Organisation of Karnataka (TECSOK) and Centre for
Entrepreneurship Development of Karnataka (CEDOK) that support and provide assistance to
entrepreneurs. Apart from Government, there are various NGO’s that are striving to promote
women entrepreneurship and one such NGO is Association of Women Entrepreneurs in
Karnataka (AWAKE). AWAKE is known for their EDP training provided to hundreds of
women across several districts of Karnataka. (Karnataka State Women Development
Corporation | Bangalore Rural District, Government of Karnataka | India, 2021)

The state of Karnataka has been a home to several traditional industries like the silk
manufacturing set ups, Handicrafts such as carvings and toys. The state is also known for its
capital city – Bengaluru which is known as the start-up capital of the country and the district
contributes the highest revenue to the state followed by Mangalore, Hubli-Dharwad and
Belagavi districts. The state has one of the major concentrations of higher education
institutions. The state is also a leader the I.T sector and has evolved as the manufacturing hub
over the years. The state has two international airports and several domestic airports and is well
connected to the rest of the country. The key industrial clusters of Karnataka include IT/ITES
cluster, Food parks, Foundry cluster, Handicrafts cluster, Textile cluster, Coir cluster and
Coffee clusters. The state has around 40 operational Special Economic Zones currently. About
250 of every 1,000 MSME’s in Karnataka is owned and run by women which is way higher
that the national average of 190, this signifies the progress of women entrepreneurs in
Karnataka. The importance and relevance of providing training and orientation to women has
been fruitful so far.

In light of the above-mentioned overview, it is certain that women entrepreneurs and their
ensuing drives are deficient in the literature. Thus, this study aims toward researching the
pioneering drives embraced by women and their socio-demographic qualities and furthermore
finding the difficulties that impact women in their business enterprises with regard to their
well-being.

2. Conceptual Framework
This study speculates that entrepreneurship, notwithstanding financial qualities, impacts
women's personal well-being. The financial attributes measured in the study incorporate age,
business status, education, family size and marital status. Gawel (2013) in the shows that
wedded women are probably going to have low well-being due to being accommodating to
their spouses. Married women have a lot of responsibility in their family assuming various
roles in the family, for example paying for children's school fees and medical facilities for the
family, in contrast to the unmarried women. A similar study likewise makes sense that a woman

37
with a huge family size is probably going to have low well-being. Furthermore, educated
women are probably going to have high well-being contrasted with uneducated women in light
of the fact that educated women are more proficient to have a decent income from their
business, and subsequently, they can create much from their business. Notwithstanding these
factors that can influence the well-being of women entrepreneurs, various difficulties can
influence entrepreneurs that thus impact women's well-being as indicated in Figure. 1

Figure 1: Adapted from: “Contribution of Entrepreneurship on Women’s Well-Being in

Tanzania: A Case of Arumeru District by Eliakunda Andrew Urio”

3. Methodology
The objectives of the study are:

1. To evaluate the entrepreneurial initiatives accomplished by women.

2. To discover the challenges affecting women entrepreneurs
3. To ascertain the impact of entrepreneurship on women’s well-being.

Research Questions
The study was directed by the following research questions;

1. What entrepreneurial initiatives are performed by women entrepreneurs?

2. What challenges affect women entrepreneurs in India?
3. What is the influence of women entrepreneurs on personal well-being?

38
Research Design:
The study was carried out in four districts of Karnataka state which showed a great potential
for growth in women entrepreneurship. The four districts are Bangalore, Mysore, Kalburgi,
and Dharwad. In every district, two cities/villages were randomly selected which made a total
of 8 villages/cities. A systematic random sampling technique was adopted to choose 5 women
entrepreneurs and 5 women non-entrepreneurs from a sampling frame that enlisted all women
entrepreneurs from the cities/villages generating a total of 40 women entrepreneurs and 40
women non-entrepreneurs. The sample size was suitable to acquire and the data was pertinent
to the study since a minimum of 15 cases is suitable for including a variety of variable
subpopulations (Bailey 1994).

The survey method was utilized to gather quantitative information, by which a questionnaire
which contained closed and open-ended questions. In order to guarantee the reliability of the
instrument, the questionnaire was pre-tested before real information was collected. The pre-
testing included 15 respondents. After pre-testing, alterations were made to the questionnaires
and an enhanced version was established before running the tool for actual data collection.
Quantitative data was analysed by involving Statistical Package for Social Science (SPSS).
Further, the results and their inferences were elucidated.

In particular, cross-tabulations were calculated to establish relationships among variables

predominantly associations amongst categories of entrepreneurial initiatives accomplished by
women entrepreneurs and their characteristics containing education level, marital status,
employment status, and whether the household head was a man or a woman. Moreover, the
descriptive investigation was done by calculating frequencies and percentages of respondents’
socio-economic and demographic characteristics. Additionally, challenges confronted by
women entrepreneurs were calculated to illustrate percentage distribution. Finally,
comparisons in terms of the satisfaction levels of well-being were assessed.

4. Results and Discussion

The data obtained by analysing the questionnaire are as follows based on the Objectives:

Objective 1: To evaluate the entrepreneurial initiatives accomplished by women.

Table 1: Women entrepreneurs’ characteristics

Frequency Percent
Education level
Less than 6th Standard 4 10
6th Standard to 10th Standard 20 50
10th Standard to Post 16 40
graduation
Total 40 100
Marital status
Single 0 0
Married 22 55
Separated 9 22.5
Widow 9 22.5
Total 40 100

39
 Frequency Percent
Main Occupation
Employed 0 0
Not Employed 40 100
Total 40 100
Household head
Male 7 17.2
Female 33 82.8
Total 40 100
Age
Young 4 10
Middle 32 80
Old 4 10
Total 40 100

Table 1 clearly states that 50% of the women entrepreneurs had undergone primary
education.100% i.e., none of the women entrepreneurs benefitted from formal education and
as such, they were neither employed in public or private sector organizations. The point that
women entrepreneurs had partial employment prospects in the private and public sectors puts
forward the aspect that women have chosen the path of entrepreneurship. Additionally, the
above table states that nearly 80% of women entrepreneurs are middle-aged. Further, 55% of
women entrepreneurs who were married were the head of the household. This was good for
some women because the day-to-day decision-making of a family, in many of the societies, in
Karnataka is disproportionately done by women who are the heads of the house. Though some
decisions done by the household heads can impact entrepreneurial initiatives positively, thus it
is positive in nature.
Women Entrepreneurial Initiatives

Table 2: Table showing the respondents’ responses to entrepreneurial initiatives

Initiatives Frequency Percent

Shop 11 27.5
Petty Business 9 22.5
Street Vendor 1 2.5
Beauty Parlour 11 27.5
Health Clinic 1 2.5
Mini Dairy 1 2.5
Silk Worm Rearing 4 2.5
Boutique 2 10
Total 40 100

The above table 2 indicates the various entrepreneurial initiatives executed by women of
Karnataka. The outcomes display that the woman executed different categories of
entrepreneurial initiatives. Almost 27.5% of the women entrepreneurs owned and run shops or
beauty parlours. 22.5% maintained petty business. Petty business here refers to initiatives like
selling vegetables and fruits, while a shop refers to a building in which different goods and
services were sold. The outcomes of the study exhibited that half of women entrepreneurs
possessed either a shop or conducted petty business or ran beauty parlours. These outcomes
recommend that available efforts should focus on supporting a shop, petty businesses, and
40
beauty parlours. Nevertheless, the other women were involved in the mini dairies, health
clinics, silk work rearing, and boutique, signifying varied entrepreneurial initiatives among
women.

Table 3: Respondent’s entrepreneurial initiatives and women’s education level

Years of Schooling
Initiatives 0-5 6-10 10-15 Total
Shop 1 5 5 11
Petty Business 2 4 3 9
Street Vendor 1 0 0 1
Beauty Parlour 0 8 3 11
Health Clinic 0 0 1 1
Mini Dairy 0 1 0 1
Silk Worm Rearing 0 2 2 4
Boutique 0 0 2 2
Total 4 20 16 40

Taking into account women entrepreneurs' schooling levels, the outcomes in Table 3 indicate
that women entrepreneurs had obtained essentially basic education. While some of them have
intermediary education and few also have their higher education. The figures additionally state
that those who owned a shop had either basic or secondary education or higher education level.
Additionally, those who run petty businesses had basic education, have secondary or higher
education. Most of the women who engaged in beauty parlours had completed their 10th grade.

This suggests that education is one of the critical variables for business ventures amongst
women and therefore the study indicates that the entrepreneurial initiatives chosen by women
largely depend on their levels of education.

Table 4: Women’s entrepreneurial initiatives and their marital status

Marital Status
Initiatives Married Separated Widow Total
Shop 5 4 2 11
Petty Business 6 2 1 9
Street Vendor 1 0 0 1
Beauty Parlour 10 1 0 11
Health Clinic 0 1 0 1
Mini Dairy 0 1 0 1
Silk Worm Rearing 0 0 4 4
Boutique 0 0 2 2
Total 22 9 9 40

Besides, taking into account women's entrepreneurial initiatives and marital status, Table 4
displays that every entrepreneurial initiative that women led comprised of a married woman.
Shop and petty business were owned 50% of married women. Widows were generally
associated with petty business, shop, and silkworm raising. Women who were separated were
mainly involved in Petty Business and Shop. This implies that while supporting women
entrepreneurs in their enterprises, marital status should be considered. For example, it is

41
rational to focus on women entrepreneurs who are married in light of the fact that this sort of
intervention is probably going to include a major share of women entrepreneurs.

Table 5: Respondents’ responses on Entrepreneurial initiatives and type of household head

Initiatives Husband Wife Total

Shop 2 9 11
Petty Business 2 7 9
Street Vendor 0 1 1
Beauty Parlour 3 8 11
Health Clinic 0 1 1
Mini Dairy 0 1 1
Silk Worm Rearing 0 4 4
Boutique 0 2 2
Total 7 33 40

Likewise, the results of Table 5 states that women entrepreneurs from female-headed families
were spread all through all initiatives more significantly in petty business, shops, and beauty
parlour with 72.27%. This suggests that the attempt to encourage women's entrepreneurial
initiatives must emphasis on those without a job irrespective of whether a woman belongs to a
male or a female-headed household.

Objective 2-To explore the challenges affecting women entrepreneurs

Table 6: The major challenges faced by women entrepreneurs

Challenges Frequency Percent

Taxation 7 17.5
High prices of raw material 7 17.5
Shortage of Start-up Capital 14 35.0
Lack of reliable Electricity 4 10.0
High Interest 1 2.5
Competition 6 15.0
Quality of Products 1 2.5
Total 40 100

Table 6 presents the respondent's responses to the problems faced by women entrepreneurs.
For the most part, the outcomes signify that women entrepreneur face numerous challenges in
setting up their enterprises. The significant difficulties remained to be the deficiency of start-
up capital which was faced by 35% of women, trailed by tax collection, High cost of raw
materials, competition, and absence of solid power. These difficulties plainly express that
government intervention is expected to battle these difficulties. The government needs to give
endowments, and power, promote made-in-India products, provide tax exemptions, etc.

Objective 3: To ascertain the impact of entrepreneurship on women’s well-being.

42
 Table 7: Descriptive statistics for seven personal well-being measurement constructs

Std.
N Min Max Mean Deviation
Overall-life/personal satisfaction 80 2 5 3.46 .967
Standard of Living 80 1 5 3.31 1.298
Personal Health 80 2 5 4.03 .941
Achieving in Life 80 1 5 3.54 1.396
Personal Relationship 80 2 5 4.19 .765
Personal safety 80 3 5 4.11 .693
Community-Connectedness 80 2 5 4.05 .778
Future Security 80 1 5 3.53 1.467

The seven personal well-being measurement constructs proposed by the International Well-
being Group (2013), include satisfaction with standard of living, satisfaction with achievement
in life, satisfaction with one's health, satisfaction with one's safety, satisfaction with a personal
relationship, satisfaction with community connectedness and satisfaction with future security.
Respondents were expected to answer how fulfilled they were with their life as a whole. The
response went from 1 (no fulfilment by any means) to 5 (totally fulfilled). A score of 3 was
taken as impartial. Reliability analysis was utilized to test whether the personal well-being
measurement constructs can be integrated to form a Personal Well-being Index (PWI). The
majority usually involved measurement in this examination is a Cronbach's alpha value. The
Cronbach's alpha value was 0.73 higher than the base worth of 0.7 demonstrating that the
personal wellbeing measurement construct can be measured to form one variable, i.e., personal
well-being.

Table 8: Differences in the well-being among entrepreneurs and non-entrepreneurs

Satisfaction Entre- Non-Entre-

Well Being levels preneur preneur
(1=least and Percen Percen
5=highest) Frequency t (%) Frequency t (%)
Satisfaction with Standard
of living 1 0 0 14 35
2 0 0 6 15
3 5 12.5 6 15
4 27 67.5 12 30
5 8 20 2 5
Satisfaction with Personal
Health 1 0 0 0 0
2 0 0 8 20
3 2 5 8 20
4 18 45 16 40
5 20 50 8 20
Satisfaction with
Achievement in life 1 0 0 8 20
2 0 0 14 35
3 2 5 12 30

43
 4 15 37.5 0 0
5 23 57.5 6 15
Satisfaction with Personal
Relationship 1 0 0 0 0
2 0 0 4 10
3 1 2.5 4 10
4 19 47.5 24 60
5 20 50 8 20
Satisfaction with Personal
safety 1 0 0 0 0
2 0 0 0 0
3 7 17.5 8 20
4 19 47.5 22 55
5 14 35 10 25
Satisfaction with
Community connectedness 1 0 0 0 0
2 0 0 2 5
3 6 15 10 25
4 16 40 22 55
5 18 45 6 15
Satisfaction with Future
Security 1 0 0 16 40
2 0 0 2 5
3 5 12.5 6 15
4 18 45 8 20
5 17 42.5 8 20

From the above table 8, it can be inferred that there is a substantial difference between
Entrepreneurial and Non-entrepreneurial women while comparing them on all the seven
parameters of well-being like the standard of living, personal health, and achievement in life,
personal relationship, personal security, community connectedness, and future security.
Further, based on the above table the following can be observed.
 The analysis shows that majority, i.e., 67.5% of the women entrepreneurs have a better
standard of living. While only 30% of non-entrepreneurial women have a improved
standard of living. Thus, it can be concluded that the standard of living of women
entrepreneurs are better than women non-entrepreneurs.
 Further, the table shows that about 50% entrepreneurial women have better personal
health compared to 20% of non-entrepreneurial women, thus it can be concluded that
personal health of women entrepreneur is better than women non-entrepreneurs.
 In addition, the table also reflects that majority i.e., 57.5% of women entrepreneur are
satisfied with achievements in life compared to 15% of non-entrepreneurial women. It
can be concluded that entrepreneurial women are having more satisfaction with
achievements in life than non- entrepreneurial women.
 Further, the analysis shows that satisfaction with the personal relationship between
entrepreneurial and non-entrepreneurial women shows small variance, i.e. 47.5% and
60% respectively.

44
  While analysing the above table we can say that satisfaction with personal security
among entrepreneurial and non-entrepreneurial women are almost the same. i.e. 47.5%
and 55% respectively.
 The analysis shows that non- entrepreneurial women are more satisfied with
community connectedness, i.e.,55 % compared to 40% of entrepreneurial women. This
shows that community connectedness is higher amongst non -entrepreneurial women.
 Further, we can also conclude that entrepreneurial women are more satisfied with future
security. i.e., 42.5% compared to 20% of non-entrepreneurial women.

5. Conclusions
The purpose of the study was to evaluate the entrepreneurial initiatives accomplished by the
women; explore the challenges affecting women entrepreneurs; to ascertain the impact of
entrepreneurship on women’s well-being. The study highlights the various entrepreneurial
activities in that women were engaged, including shops, bakeries, street vending, tailoring,
silkworm rearing, and petty business. The entrepreneurial initiatives contrasted with
demographic and socio-economic characteristics. Secondly, women entrepreneurs confronted
many difficulties like deficiency of start-up capital, high tax assessment rate, absence of
dependable power, unfortunate frameworks, the high cost of natural substances, and burglary
of properties. Thirdly, satisfaction with the personal relationship, community connectedness,
and personal security are almost similar between entrepreneurial and non-entrepreneurial
women. Still, entrepreneurial women have better satisfaction in the rest of the four parameters
than non-entrepreneurial women. i.e., the standard of living, personal health, achievement in
life, and future security.

6. Recommendations
Grounded on the inferences, the study acclaims that when supporting women’s entrepreneurial
activities, women must not be considered as a homogeneous set. Encouraging entrepreneurial
activities should contemplate socio-economic features of women such as marital status,
education, and type of household whether is headed by a woman or by a man. Furthermore, the
government must take up initiatives that reduce the difficulties that restrain women from
carrying out their business. It is suggested that the seven personal well-being measurement
constructs can be combined to form personal well-being. Finally, the Government ought to
encourage women entrepreneurs, by providing subsidised credit facilities, markets for their
products, and developing entrepreneurial skills as women are the agents of transformation,
according to the Capability Approach, it is the women who can bring socio-economic changes
in society.

References

Bailey, K. D. (1994). Typologies and taxonomies: An introduction to classification techniques

(Sage University Paper series on Quantitative Applications in the Social Sciences, series
no. 07–102). Thousand Oaks, CA: Sage.
BNP (2016). Paribas Global Entrepreneurialism Report 2016, BNP.
Bosma, N., Van Praag, M., Thurik, R. and de Wit, G. (2013). The value of human and social
capital investments for the business performance of startups. Small Business Economics,
23: 227-236.

45
Chaudhry, I. S., & Paquibut, R. Y. (2021). Women Empowerment through Micropreneurship
in Online Businesses in the Sultanate of Oman. Academy of Entrepreneurship Journal,
27(1), 1-14.
El-Namaki, M. (1990). A cross-country Examination of Barriers to Women Entry and
Continuity in Business and Efforts Aimed at Barrier Waving Maastricht. ASTRO/RVB
Proceedings on a Conference on Industrial and Trade Policies for the 1990s: Implications
for LDCs.
Gaweł, A. (2013). Female entrepreneurship in Poland Poznań University. Economics Review,
13(6): 115-130.
Ghouse, S. M., Barber, D. I., Harris, M. L., & Gibson, S. G. (2021). Role of gender and
exposure on entrepreneurial attitudes of Omani university students. Journal for
International Business and Entrepreneurship Development, 13(1), 1-21.
Guzman, J., and Kacperczyk, A. (2019). Gender gap in entrepreneurship. Res. Policy 48, 1666–
1680. doi: 10.1016/j.respol.2019.03.012.
Haus, I., Steinmetz, H., Isidor, R., and Kabst, R. (2013). Gender effects on entrepreneurial
intention: a meta-analytical structural equation model. Int. J. Gender Entrep. 5, 130–156.
doi: 10.1108/17566261311328828
Hisrich, R. D. (2005). Entrepreneurship: New Venture Creation. 5th edition. Tata McGraw
Hill, New Delhi, India. pp1-5.
Karnataka State Women Development Corporation | Bangalore Rural District , Government of
Karnataka | India. (2021). Government of Karnataka.
https://bangalorerural.nic.in/en/karnataka-state-women-development-corporation/
Kukutai, T. (2006). Elder or Merely Older: Enhancing the well-being of older Maori in an
Ageing Maori Population. EWAS Working Paper Series: Working Paper No. 2. The
Family Centre Social Policy Research Unit and the University of Waikato Population
Studies Centre. 127pp.
Mahadea, D. (2013). Entrepreneurship in motion: Towards an Interdisciplinary and an eclectic
perspective. Southern Africa Journal of Entrepreneurship and Small Business
Management, 6(4): 21-29
Muntean, S. C., and Ozkazanc-Pan, B. (2015). A Gender integrative conceptualization of
entrepreneurship. New Engl. J. Entrep. 18, 27–40. doi: 10.1108/NEJE-18-01-2015-B002
Paim, L. (1995). Definitions and measurements of well-being: A review of literature Journal
of Economic and Social Measurement, 4(2): 297-309.
Rathiranee Y, Semasinghe DM (2014) Empowering women entrepreneurs through Micro
finance in Jaffna District, Sri Lanka: Challenges and Scenarios. Journal of Social
Sciences.
Samiti, V. (2006). A Research Study on Entrepreneurial Challenges for SC Persons in India.
New Delhi: Planning Commission Government of India Yojana Bhawan. 53pp.
Sen, A. (1999). Development as Freedom. Oxford. Oxford University Press, London. pp 20-
33
SMEs and Entrepreneurship: The Way Forward to Job Creation and Growth - OECD. (2010).
OECD.
https://www.oecd.org/economy/smesandentrepreneurshipthewayforwardtojobcreationa
ndgrowth.html

46
Tan, J (2000). Entrepreneurial infrastructure in Singapore: Developing a model and mapping
participation. Journal of Entrepreneurship, 9(1): 37-55.
Timmons, J. A. (1989). New Venture Creation, Oxford University Press, London. pp1-3.
Veenhoven, R. (2004). Subjective measures of well-being. Discussion Paper No. 2004/07.
United Nations University: WIDER. 73pp.
Vinesh (2014). Role of women entrepreneurs in India. Global Journal of Finance and
Management, 6(5): 473-480.
World Bank (2002). Integrating Gender into the World Bank’s Work: A Strategy for Action.
Washington, D.C. pp43-49

47
 Chapter 4

Entrepreneurship and digital innovation in an era of

pandemic
Kaneez Masoom*
Research Scholar, Khwaja Moinuddin language university,
Lucknow, India
Email: [email protected]

Dr (Prof) Syed Haidar Ali

HOD, Department of Business Administration,
Khwaja Moinuddin language university, Lucknow, India

Dr (Prof) Surendra Kumar

Professor, Babu Banarasi Das university
Lucknow, India

Dr Saiyid Saif Abbas Abidi

Associate Professor, Babu Banarasi Das university
Lucknow, India

*Corresponding Author

Abstract
The global pandemic has transformed the world in many ways. It changed the way the business
was conducted. Many businesses joined the digital platforms to survive. The rise of the digital
wave during Covid-19 offers many opportunities for ambitious entrepreneurs to enter the
market. As a result, COVID-19 has been a catalyst for the adoption and further use of digital
technologies in work organizations and offices, presenting predictable and unpredictable
opportunities, challenges, and costs, leading to negative and positive feedback loops. Through
the lens of the diffusion of innovations theory, in this study, we develop and advance a
conceptual model in response to the pandemic by connecting the various forces for and against
digitalization. According to our findings, while digitalization may create new opportunities, it
also introduces risks that are difficult to mitigate or plan for. Finally, we discuss the broader
theoretical and practical implications of our findings. As a result, this study provides
implicationsfor academics as well as the industry.

Keywords: Digital Technology; Digital Entrepreneurship; Covid19; Innovation; Technology

1. Introduction
The world is revolutionizing with the various technological advances in almost every sector.
More and more transactions are being done online, be it in business, governmental systems or
on an individual level (Brem et al., 2021; Jafari-Sadeghi et al., 2021)

The pandemic affected everyone like a storm in 2020 and 2021, causing technology advances
to scale up and supporting digital entrepreneurship in many regions of the world to meet the
demands of a new world. (Iivari et al., 2020; Secundo et al., 2021).. Truth be said, a lot of firms

48
today largely rely on their digital capabilities to maintain their survival (Datta and Nwankpa,
2021).

It is thought that digital technology enables businesses to quickly modify their business models
rather than in traditional or linear ways. The initiative of firms to leverage new capabilities by
using digital technologies in order to transform organizational strategies and operations is
known as digital transformation. Just a few years ago, we couldn't even imagine the possibilities
of digital technology. 5G, artificial intelligence and 3D printing are just a few examples. The
timegap between the development and utilization of digital technologies, and the shrinking
time lag between the paths and endpoints of digital transformation, is difficult to predict in
advance. On the other hand, organizations should be aware of external incentives and digital
technologies should be seen as an option that businesses can use to respond to these incentives.

While digital entrepreneurship surged in 2020-2021, COVID-19 has put numerous restrictions
on economic downturns in many parts of the world. (Back et al. 2020; Ratten 2020; Sharif et al,
2021). According to the literature, entrepreneurial activity grow and risk-taking behavior
increases during uncertain times (Muoz et al., 2020). Covid-19 has sparked a digital
entrepreneurship boom over the past two decades, which has been aided by technical resources
such as Internet tools and communication and information technologies (Abubakre et al., 2021;
Bai et al., 2021; Secundo et al., 2021). During the current pandemic, numerous mobile
applications have been created to track vaccination status, locate nearby vaccination sites, and
do business remotely (Rachul et al., 2020; Sharma; and others, 2020). This study helps spread
innovation theory in the context of digital entrepreneurship and the potential it presents for
company growth. By focusing on the research topic, "Has Covid-19 accelerated chances for
digital entrepreneurship?" this study analysed the most obvious feature of digital
entrepreneurship to consumers. Several elements, some of which were looked at in this study,
have an impact on whether an idea is adopted. These considerations include the perception of
an innovation's superiority over programmes or products currently on the market, its
consistencywith the values and experiences of potential adopters, its usability (easiness or
difficulty), its ability to be tested, and its capacity to yield quantifiable results. 2. The digital
entrepreneur and emerging technologies Developing economies must take advantage of new
technologies to foster digital entrepreneurship in this age of internet access and digital
disruption by coming up with innovative solutions to social demands and problems (Wang et
al., 2021). As a result, we shall discuss the functions of evolving technologies and digital
entrepreneurship in further detail below.

2. Literature Review

2.1. New Emerging technologies

In order to create new business processes and modify those that already exist, today's
businesses embrace the use and acceptance of digital tools. In addition to offering immediate
financial advantages, emerging technologies assist organisations in enhancing workplace
cultures and consumer experiences (Kamble et al., 2021). Companies can use digital
technology to review current business processes, align resources, and improve capabilities in
order to create a framework that will promote innovation in commercial activities (Schiavone
et al., 2021). In addition to corporate applications, emerging technologies have enormous
potential for use by the general public, and a number of companies have begun to offer services
in this area. For example, CivilCops, a company founded in 2017, exploits big data and artificial

49
intelligence (AI) to fast forward the complaint and resolution system in the public domain.
(Rana et al., 2016).

2.2. Entrepreneurship in the digital age

A significant increase in the demand for digital technology over the past two decades has led to
the creation of numerous digital artefacts, platforms, and infrastructure development projects
byboth public and commercial organizations. A digital element, application, or piece of content
thatis associated with a good or service that allows the user to perform a certain function is
known as a digital artefact (Liu et al., 2021). Services in digital artefacts have increased as a
result of the separation of information from its physical representation (Barrett et al., 2015;
Islam et al., 2020). Numerous things are covered by these apps, including cellphones, toys,
cars, and apparel.

Therefore, digital artefacts can be divided into two categories: those that are software/hardware
components of physical objects, or those that are components of ecosystems that operate on
digital platforms and provide a variety of options for digital entrepreneurship (Schiavone et al.,
2021). An architecture that offers other items in addition to digital artefacts and a shared area
forhosting services is referred to as a "digital platform." Entrepreneurs can develop a wide
range ofvalue-added goods and services using digital platforms.

Digital platforms are appealing to business owners for the creation, promotion, and delivery of
services (Nambisan, 2017; Srinivasan and Venkatraman, 2018).

2.3. Diffusion of innovation

For businesses to understand their industry and create unique, original products or services,
rigorous market research is essential. People are excited about innovative ideas in the Internet
and connection era that can address corporate difficulties (Zajicek and Meyers, 2018).
Therefore, the DoI theory is the best suitable to investigate the potential of digital
entrepreneurship. The DoI helps business owners see the processes, drivers, and rates of
innovation in new ideas and technology (Rogers et al., 2014; Rogers, 1995, 1962). DoI assists
business owners in analysing and projecting how consumers will respond to their service or
product (Marcati et al., 2008). Early adopters differ from later users in that they exhibit various
characteristics when an idea or service develops and becomes more widely used (Cao and Shi,
2021). Digital entrepreneurs must therefore have a thorough awareness of all the variables that
can facilitate or prevent the uptake of innovation (Abubakre, 2021).

According to the DoI, adopters can be divided into innovators (first movers), early adopters
(those who welcome change and new ideas), early majority (those who welcome and adopt
innovative ideas before it is researched to mass and evidence is required that innovation works
before entrepreneurs believe its worth), late majority (those who are unsure about the idea and
change and adopt the idea after it has been widely accepted by the population), and laggards
(traditional and resistant to change) (Rogers, 1962). Therefore, digital entrepreneurship offers
opportunities for both new and unheard-of concepts in the market as well as for existing
marketplaces like website and content production businesses. DoI may also contribute in a
special way to the conception and creation of novel items by imagining consumer acceptance
and expectations.

50
3. Research Methodology
A qualitative approach is used to explore the digital entrepreneurship research questions
presented in this study. Digital entrepreneurship opportunities have accelerated in an unsettled
or very challenging environment for Covid-19. As a result, it was appropriate to start a
qualitative study on the research question. Thanks to the Entrepreneur', there were only a
handful of well-planned, semi-structured interviews amid a busy work schedule.

4. Data Collection
Entrepreneurs serving local and regional markets from a variety of organizations and sectors
were questioned. Using the recommendations of Leech (2002) and McCracken (2002), a semi-
structured interview schedule was created (1988). Eight questions altogether were created with
an emphasis on digital entrepreneurship and advancing technology utilizing Covid-19 as an
incentive for creativity and distinctive services to address issues in the public and private
sectors. LinkedIn was used to contact 151 digital entrepreneurs in total. Additionally, it was
shown that response saturation happened after about 23 responses. 23 replies in all were
prepared for additional examination as a result.

5. Study Design
A three-step coding mechanism was used for raw data analysis. First, public codes were
extracted from the interview responses of this study. Second, the newly emergingaxis code and
open code were compared. Finally, axis codes were linked with optional coding. After
reviewing and narrowing down specific codes, a triangulation approach was used to validate
and verify the subjects that emerged from the data.

6. Conclusion
Using a semi-structured approach, this study investigates areas of innovation-led digital
entrepreneurship with a high potential for growth. The diffusion of innovation theory is used
as the foundation for Covid-19-induced digital entrepreneurship opportunities in this study.
This study provides valuable insights for emerging and established digital entrepreneurs who
are using technology in new ways. The use of innovative solutions is essential to ensure that
digital platforms remain relevant and meet the needs of customers and business partners.

6.1. Educational Technology

The deployment of digital technology in schools and universities has been considerably boosted
through Covid-19. The majority of educational systems worldwide are now compelled by
COVID-19 to use virtual learning and distance learning. This has aided the growth of digital
entrepreneurship in nearly every area of education (Iivari et al., 2020). Venture capitalists have
invested in numerous firms due to their promise and belief in the viability of these platforms
even after the epidemic. According to R7, educational technology (EdTech) "enhances
personalised learning possibilities based on a scientist's abilities, interests, and strengths, in
addition to assisting learners.

6.2. Financial technology

The financial technology (FinTech) industry grew its services during COVID-19, especially in
emerging nations. Business and consumer access to financial services can boost economic

51
growth and income levels while also enhancing resilience and quality of life. FinTech platforms
enable services to expand their customer base while lowering operational costs. Furthermore,
while keeping up with the economy, FinTech platforms are diminishing in-person connections
(Vasenska et al., 2021). The potential for start-ups in the payment and banking technology
industries has been shown, according to R10, by the multi-fold increase in subscribers in the
online payment sector.

6.3. Social Media

Social media today helps businesses interact with their customers after starting out as a way to
connect family and friends. This gives outside parties the ability to create, manage, and
advertise social media products on behalf of the intended company. A new generation of
business owners is utilizing the Internet of Things to advertise items and streamline processes
in order to draw in customers. To cut expenses and boost productivity, independent business
owners are utilizing additional cutting-edge technologies including cloud storage, networking,
and software administration (Song, 2019; Szalavetz, 2020). Close engagement via social media
"helps organizations’ track consumer behavior and generate platform-centric analytics to
promote business growth," claims.

6.4. E-commerce
6.4.1. Contactless Delivery
People are now avoiding going out to acquire necessities since COVID-19 has had such a
significant influence on their life. Due to this, rather than going to neighbourhood shops and
clothing stores, individuals favour online platforms. These platforms offer security through
contactless delivery and payment in addition to convenience. Due to COVID-19, e-commerce
has increased over the past ten years, which has altered how courier and business transactions
are carried out. Retailers who don't offer contactless delivery will no longer compete since it
hasbecome the new norm (Johnston, 2021). The technique of contactless delivery does away
with the requirement for customer-employee interaction. A photo delivered to the customer via
the mobile app by the staff serves as confirmation of order delivery.

6.4.2. Payment method

The past ten years have seen a rise in smartphone usage, and with that growth has come a
modern trend: launching a business online. Cash flow is crucial to every business for other
purposes, though, so the two are not mutually exclusive. In an e-commerce setting, the payment
platform or mechanism allows for a smooth flow of funds. When businesses exclusively
accepted cash, those days are long gone.
Numerous UPIs, e-wallets, and mobile payments are now accessible thanks to technological
advancements, in order to satisfy the needs of a wide range of customers (Vasenska et al.,
2021). Also according to R20, "companies in both the e-commerce and physical shop formats
use many payment methods nowadays for the convenience of customers."

7. Discussion
In order to investigate different areas of digital entrepreneurship prospects, the study used a
semi-structured interview approach. The findings have some fascinating implications for
developing DoI theory in challenging situations like the Covid-19 pandemic. The theory and
literature of innovation, entrepreneurship, and technology are all incorporated within this study.

52
Because they are more prevalent in the physical world and customers prefer physical products,
experts have previously focused on entrepreneurship potential in the physical mode of
company. As a result of the changes brought on by Covid-19, there has been a notable increase
in digital entrepreneurial domains with a continual focus on innovation (Brem et al., 2021;
Volberda et al., 2021). As a result, the study theorises diffusion of innovations theory through
thelens of digital entrepreneurship in the uncertain, complex, and uncertain environment.

8. Limitations and Scope for Future Research

Digital technologies have ushered in a new era for both aspiring entrepreneurs and
professionals. Complexity and concerns in the Covid-19 era have prompted many start-ups to
integrate digitization and technology-related concepts in order to disseminate innovations and
meet the needs of customers, stakeholders, and businesses. Based on concepts, perspectives,
and approaches, the emerging propositions demonstrate the impact of Covid-19 and result in
novel theorizing in digital technology-led entrepreneurship. The diffusion of innovations and
the conceptualization of single concepts are important, but not always, to the success of digital
entrepreneurship. Some late adopters may be successful with the same business or service
concept. As a result, studies may be conducted to measure the success of early adopters and
early majority ventures. In addition, social norms and various acceptable standards of the
communitymay impede the use of DoI. Theory also does not define the rate at which innovation
is adopted by multiple stakeholders. The current study's findings point to newly emerging fields
for digital entrepreneurship and the application of digital technologies in various ways. Future
research can look into the impact of other grounded theories, such as task-technology fit and
the resource-based view, on pursuing digital entrepreneurship. Studies can be conducted in the
future to map the emergence of businesses during Covid-19 and their survival in the post-
Covid-19 era.

References
A.K. Song. (2019). The digital entrepreneurial ecosystem—a critique and reconfiguration. Small
Bus. Econ., 53 (3), pp. 569-590
Abubakre, M., Faik, I., & Mkansi, M. (2021). Digital entrepreneurship and indigenous value
systems: an Ubuntu perspective. Inf. Syst. J. DOI: 10.1111/isj.12343.
B.L. Leech (2002). Asking questions: techniques for semi structured interviews. PS: Polit. Sci.
Polit., 35 (4), pp. 665-668
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 pandemic digitization lessons for sustainable
development of micro-and small-enterprises. Sustainable Production and Consumption.
DOI: 10.1016/j.spc.2021.04.035.
Brem, A., Viardot, E., & Nylund, P.A. (2021). Implications of the coronavirus (COVID-19)
outbreak for innovation: which technologies will improve our lives?Technol. Forecast. Soc.
Change. DOI: 10.1016/j.techfore.2020.120451.
Datta, P., & Nwankpa, J.K. (2021). Digital transformation and the COVID-19 crisis continuity
planning. J. Inf. Technol. Teach. Cases. DOI: 10.1177/2043886921994821.
E. Rogers. (1962). Diffusion of Innovations. The Free Press, New York, NY
E.M. Rogers, A. Singhal, M.M. Quinlan. (2014). Diffusion of Innovations. Routledge, pp. 432-448
G. McCracken (1988). The Long Interview (Vol. 13). Sage

53
H. Zajicek, A. Meyers (2018). Digital health entrepreneurship. Digital Health, Springer, Cham, pp.
271-287
Islam, N., Marinakis, Y., Majadillas, M.A., Fink, M., & Walsh, S.T. (2020). Here there be dragons,
a pre-roadmap construct for IoT service infrastructure. Technol. Forecast. Soc. Change. DOI:
10.1016/j.techfore.2017.09.016.
Kamble, S.S., Gunasekaran, A., Kumar, V., Belhadi, A., & Foropon, C. (2021). A machine learning
based approach for predicting blockchain adoption in supply Chain. Technol. Forecast. Soc.
Change. DOI: 10.1016/j.techfore.2020.120465.
L.A. Johnston (2021). World trade, e-commerce, and COVID-19 China Rev., 21 (2), pp. 65-86
Liu, H., Li, X., & Wang, S. (2021). A bibliometric analysis of 30 years of platform research:
developing the research agenda for platforms, the associated technologies and social impacts.
Technol. Forecast. Soc. Change. DOI: 10.1016/j.techfore.2021.120827.
Livari, N., Sharma, S., & Ventä-Olkkonen, L. (2020). Digital transformation of everyday life–How
COVID-19 pandemic transformed the basic education of the young generation and why
information management research should care?Int. J. Inf. Manag. DOI:
10.1016/j.ijinfomgt.2020.102183.
M. Barrett, E. Davidson, J. Prabhu, S.L. Vargo (2015). Service innovation in the digital age. MIS
Q., 39 (1), pp. 135-154
Marcati, G. Guido, A.M. Peluso. (2008). The role of SME entrepreneurs’ innovativeness and
personality in the adoption of innovations. Res. Policy, 37 (9), pp. 1579-1590
N.P. Rana, Y.K. Dwivedi, M.D. Williams, V. Weerakkody. (2016). Adoption of online public
grievance redressal system in India: toward developing a unified view. Comput. Human
Behav., 59, pp. 265-282
S. Back, W. Geoghegan, M. Josefy, R. Stevenson, T.A. Williams (2020). The COVID-19 Virtual
Idea Blitz: marshaling social entrepreneurship to rapidly respond to urgent grand challenges
S. Nambisan (2017). Digital entrepreneurship: toward a digital technology perspective of
entrepreneurship. Entrep. Theory Pract., 41 (6), pp. 1029-1055
Schiavone, F., Mancini, D., Leone, D., & Lavorato, D. (2021). Digital business models and
ridesharing for value co-creation in healthcare: a multi-stakeholder ecosystem analysis.
Technol. Forecast. Soc. Change. DOI: 10.1016/j.techfore.2021.120647.
Secundo, G., Gioconda, M.E.L.E., Del Vecchio, P., Gianluca, E.L.I.A., Margherita, A., &
Valentina, N.D.O.U. (2021). Threat or opportunity? A case study of digital-enabled redesign
of entrepreneurship education in the COVID-19 emergency. Technol. Forecast. Soc. Change.
DOI: 10.1016/j.techfore.2020.120565.
Srinivasan and Venkatraman (2018). Entrepreneurship in digital platforms: a network-centric view.
Strateg. Entrepreneurship J., 12 (1) (2018), pp. 54-71
V. Jafari-Sadeghi, A. Garcia-Perez, E. Candelo, J. Couturier (2021). Exploring the impact of digital
transformation on technology entrepreneurship and technological market expansion: the role
of technology readiness, exploration and exploitation
V. Ratten. (2020). Coronavirus (covid-19) and entrepreneurship: changing life and work
landscape. Journal of Small Business Entrepreneurship, 32 (5) (2020), pp. 503-516

54
Vasenska, P. Dimitrov, B. Koyundzhiyska-Davidkova, V. Krastev, P. Durana, I. Poulaki. (2021).
Financial transactions using FINTECH during the covid-19 crisis in Bulgaria Risks, 9 (3),
pp. 1-28
Volberda, H.W., Khanagha, S., Baden-Fuller, C., Mihalache, O.R., & Birkinshaw, J. (2021).
Strategizing in a digital world: overcoming cognitive barriers, reconfiguring routines and
introducing new organizational forms. Long Range Plann. DOI: 10.1016/j.lrp.2021.102110.
Wang, C., Teo, T.S., Dwivedi, Y., & Janssen, M. (2021). Mobile services use and citizen
satisfaction in government: integrating social benefits and uses and gratifications theory. Inf.
Technol. People. DOI: 10.1108/ITP-02-2020-0097.
Z. Cao, X. Shi (2021). A systematic literature review of entrepreneurial ecosystems in advanced
and emerging economies. Small Bus. Econ., 57 (1), pp. 75-110

55
 Chapter 5

Innovation by Start-ups in Upgrading Agriculture Supply

Chain in Indian Economy
Prof. (Dr.) Ajay Kumar Singh,
Former Vice Chancellor, Sri Sri University;
Dean and Head, Faculty of Commerce and Business,
Delhi School of Economics, University of Delhi

Barada Prasad Panigrahy*

CEO, Incubation Centre,
Sri Sri University, Odisha
Email id.: [email protected]

*Corresponding author

Abstract
Agri based Start-ups are playing a major role in minimizing the pain points of agrarian
communities at different stages of the agri-value chain. The value created by agri based Start-
ups are improving the socio economic status of the agrarian community, also creating jobs for
millions of unemployed youths, which is the need of the hour in the post pandemic world. Agri
based Start-ups are facing multiple challenges in addressing these issues in the hinterland. The
purpose of this paper is to share the contribution of agri based Start-ups towards the agrarian
community and above all the Indian economy and also to highlight the required support system
for the sustainability of these Start-ups. Data have been collected through primary (agri Start-
ups, lead farmers, agriculture department officials) as well as secondary sources. The key
findings of the paper include; challenges faced by agrarian communities at different stages of
agri value chain, services provided by agri based Start-ups, challenges faced by these Start-ups.
The recommendations for sustainability of the agri based Start-ups are completely original in
nature. This paper has implications in Start-up policy formulation by state as well as central
Government.

Keywords: Agri Start-ups, Agri Value-Chain, Agrarian Community, Economy, Start-up

Policy

1. Introduction
Agriculture sector plays a major role in the Indian Economy. Agriculture, with its allied sectors,
is the largest source of livelihoods in India. 70 percent of India’s rural households still depend
primarily on agriculture for their livelihood (Bowen & Morris, 2019). Even during this
pandemic, it was one of the least affected sectors in India. Agriculture sector not only provides
food, shelter, and clothes, but also contributes to the livelihood of the under- privileged segment
of our society (Vasumathi & Arun, 2021). Despite this, unfortunately the prime stakeholder of
this sector, i.e. farmers are exploited at different stages of the agri-supply chain. It is our utmost
responsibility to support the agrarian community. Agriculture sector is witnessing disruption
with the support from some of the agri-tech Start-ups, providing solutions to help farmers in
optimising production and to improve their livelihood. Start-ups integrate information
technologies such as; artificial intelligence, machine learning, automation, drone technologies,

56
etc. to optimise the agri value chain by connecting farmers with bulk buyers. Start-ups also
develop technology-enabled products to strengthen the farm-to-fork value chain of perishables,
with a focus on renewable energy and sustainable development (Pahwa, 2020). Some of the
Start-ups help farmers in adopting advanced Agri-technologies, such as; precision farming,
integrated nutrient management, integrated pest management, soil health management,
optimum irrigation management, mechanization. At this time, start-ups assist farmers in the
Agri-supply chain before and after harvest (Shukla et al., 2018). Precision farming, integrated
nutrient management, integrated pest management, soil health management, optimal irrigation
management, and mechanisation are a few of the advanced agri-technologies that some of the
start-ups help farmers adopt. In the current context, start-ups assist farmers in the stages of the
Agri-supply chain before and after harvest.

2. Review of Literature
New global production and distribution systems have emerged due to the rising complexity of
multinational corporate governance, widespread outsourced production, and new specialization
of labor around the world. Frameworks for explaining such changes in International Affairs
Economy have gained prominence over the last few years (Neilson et al., 2014).

World economic competitiveness is shaped by three primary factors-: technical, structural, and
administrative inventions; networking equipment that emerge out of and progressively move
outside of national business systems; and the regulatory powers deeply involved in geographic,
domestic, and state authorities. Throughout history and across industries, these patterns of
competition have changed, and they are embodied in the organisation of global value chains as
a result (Gereffi, 2001) As per the rules and regulations related to the decision-making
processes that take place between parties to improve how they will divide their labour in global
value chains, and it is an essential factor to take into account and how they participate in a
programme that will help them improve their abilities (Antràs & Chor, 2013). It was discovered
at the outset of the study that there are Worldwide supply chains have two distinct government
structures: those driven by growers as well as those driven by purchasers (Chandrawanshi,
2020).

Increasingly complex global corporate governance regimes, pervasive outsourcing of good

quality, and new global specialization of labor had also contributed to the growth of conceptual
models in Worldwide Economic History to describe these advances in worldwide generation
and delivery processes, which have come to the fore in recent years (IPE). In order to better
understand how firms, regions, and countries engage in the global market, “global value
chains” and “global production networks” were shown to be especially successful as structures
for explanation. In particular, these interconnected Global economic patterns of value creation,
retention and capture are primarily explained by approaches to chain governance and network
dynamics, which are crucial theoretical short hands for the ability of lead firms to coordinate
value-added activities of a diversified variety of socioeconomic actors (Neilson et al., 2014).

Many developing countries, particularly India, rely on the agriculture sector to assist them in
their efforts to achieve economic development and prosperity. A significant role is played by
middlemen in the marketing of agricultural products in India, and this is especially true in the
agricultural sector. Consequently, growers who cultivate soils are subject to a monopoly on
trade as well as substandard pricing practices. A significant improvement in the efficiency of
agricultural product marketing has occurred as a result of technological advancements.

57
Value chain literature emerged in its most basic form as the era of central planning came to an
end, parastatals were privatised, and economies were opened and liberalised both domestically
and internationally. As a result of this development, a number of countries established foreign
direct investment platforms to attract multinational corporations (MNCs) to the global market.
In their respective studies, many development researchers conceptualised the new situation in
a similar way, though they used different terminologies to describe the phenomenon.

For example, the global commodity chain (Gereffi, 2001); the global production network
(Halldorsson et al., 2007), the global supply chain (Hsuan Mikkola & Skjøtt-Larsen, 2004),
and the global value chain (Halldórsson et al., 2009). The Microsoft for Agri-tech Start-ups
program is designed to help Start-ups build industry-specific solutions, scale and grow with
access to deep technology, business and marketing resources, the company said in a statement.
Agri-tech Start-ups in India are transforming agriculture by developing innovative digital
solutions to maximize productivity, improve market linkages, increase supply chain efficiency
and provide greater access to inputs for agri-businesses. Agri-tech Start-ups can benefit from
the best-in-class technology and business enablement resources available through this
programme, which is designed to help them innovate and scale quickly. Sustainability in
agricultural technology has the potential to completely alter the global food system.
Innovations in agri-tech Start-ups are addressing some of the most pressing issues facing the
agricultural and food production industries. In a statement, Sangeeta Bavi, Director, Start-up
Ecosystem at Microsoft India, said, "The Microsoft for Agri-tech Start-ups programme is one
of the first steps in our journey toward empowering this Start-ups in Indian agriculture and
transforming global agricultural practices” offering a variety of benefits spread across three
tiers, including technology enablement and business resources, the programme is divided into
two categories.

In their most basic form, supply chains are concerned with the flow of products and information
between supply chain member organizations—from the procurement of raw materials to the
transformation of raw materials into finished products, and finally the distribution of finished
products to end customers. Organizations can reduce inventory and costs by implementing
information-driven, integrated supply chains. They can also add value to their products by
extending their resources, accelerating their time to market, and retaining their clients
(Calatayud et al., 2020).

Supply chain success is based on activities being able to facilitate from across the distribution
chain to add value to the customers while improving revenue. Or, to put it in another way,
Value creation for the final user or potential customer is part of the supply chain.
Despite this, India's supply chains for various agricultural products are beset by difficulties
stemming from the agricultural sector's inherent problems. The country's Agri-supply chain
system is influenced by a wide range of structural issues, including the predominance of
small/marginal farmers, fragmented supply chains, a lack of scale economies, a low level of
processing/value addition, and so on (Webb & Buratini, 2016).

Less items and quicker response to client needs for goods and services were early
accomplishments of the supply chain. In order to compete effectively in the market, other
functional areas of companies joined forces in the logistics stage to incorporate manufacturing,
procurement, transportation, distribution, and marketing. After that, the manufacturing stage
of supply chain management was introduced. As a result of advances in telecommunications,
electronic data interfaces, and other technologies, the flow of information between departments
and companies became more open and transparent (Sharma & Mathur, 2019).

58
It is becoming more difficult to coordinate agribusiness marketing and supply chains in India.
In addition to increased discretionary income and a change in customer food supply toward
elevated food products, fruits and veggies, and high in protein, internationalisation has
impacted today's agro - based distribution networks and their control (Raut, 2021). Agricultural
supply chains in India are being influenced by brand-new promotions basically brought about
as a result of the globalized economy as well or other inner modifications such as an increase
in disposable income and a shift in the food basket of consumers. In response to the new
challenges that the country's agricultural economy is confronting, many government agencies
have been motivated to pursue various legal reforms in order to encourage a synchronised
supply chain and tracking by eliminating unwanted obstacles for private sector investment in
agricultural facilities (Alavion et al., 2017). The APMR Act, which has been amended, is the
country's most important agricultural marketing law. It now includes both these requirements
to promote marketing and the formation of the private sector, such as farming activities. Small
businesses will reap significant benefits from these measures, which will assist them in
establishing direct connections with farmers, processors, exporters, retailers, and other
stakeholders. As a result, it will facilitate the development of integrated supply chains for a
variety of agricultural products in the country by providing both backward and forward links
(Alavion et al., 2017; Alavion & Taghdisi, 2021).

Supply chains that are well-coordinated are built on the foundation of structured relationships
between producers, traders, processors, and buyers. In these relationships, it is specified exactly
what and how much should be produced, when it should be delivered, how good it has to be in
terms of quality and safety, and how much it should cost, among other things. When people
connect online, they frequently share information and occasionally provide technical or
financial assistance. This is known as a social network (Piramuthu & Zhou, 2016). Fresh and
processed perishable food markets, in particular, reap the benefits of well-coordinated supply
chains. These chains can be more effective in terms of process safety and quality control than
those in the control groups; till the distribution network reaches the end point (Pillai &
Sivathanu, 2020). However, a number of Indian companies with an emphasis on improving
safety are spending in supply chain management and facilities. One of the most recent versions
inside the fruit and veggie retail sector is use of overt and covert legal agreements to procure
local farmers or farm owner associations (Chauhan, 2020). In order to handle all of the produce
moving through rural areas, a central distribution facility has been established, which is
equipped with cold storage, ripening chambers, and climate-controlled atmosphere chambers.
It is not uncommon for growers to receive input and technical advice on a variety of topics,
including agronomic and post-harvest practices, during the course of their business (Raut,
2021).

3. Problems Faced by Indian Farmers at Different Stages of Agri-Supply Chain

Pre-Harvest Stage
The agrarian community faces a plethora of challenges at pre-harvest stage. Varietal selection
is a major problem faced by farmers at the time of seed selection. Different seed varieties are
suitable for different soil and agro-climatic conditions. Seed varieties with resistance to specific
disease, pest, drought, salinity and having high yield and short duration are available for
farming communities. Farmers usually grow the traditional varieties, due to lack of expert
advice, which leads to poor yield. Also availability of the right quality seed at the right time is
a major challenge. Farmers get victimised by purchasing spurious seeds available at local retail
outlets.

59
Farmers don’t get the technical guidance for the right package and practices for crop
production, due to poor access to scientists or subject matter experts at Krishi Vigyan Kendras
(KVK) and Regional Research Technology Transfer Stations (RRTTS) in rural India. The safe
way of disease and pest management through integrated pest management is not known to most
of the farmers. Farmers believe in using chemical pesticides, fungicides, etc. for disease and
pest management, whose residual effect is dangerous for human beings. Use of high quantities
of chemicals is also a cost burden on the farming community.

Usually there are residual nutrients available in soil after each cropping sequence. Farmers can
use less than the recommended fertilizer dose, due to the existing nutrients in the soil. Different
types of lands (upland, medium land, low land) also need different quantities of nutrients. Most
of the farmers don’t go for soil testing before application of fertilizers. Farmers are habituated
in using high quantities of chemical fertilizers, instead of bio-fertilizers or adoption of
integrated nutrient management. This not only depletes the quality of the soil, but also leads to
high cost of production for the farmers.

Post-Harvest Stage
Lack of information on sudden weather change is a major challenge for farmers. Some of their
produce is wasted/spoiled, due to harvesting of their crops at non-suitable time. Due to the
impact of rapid climate change, sometimes it rains due to low pressure during the harvesting
time. This rain spoils the harvested crops, specifically cereals to a great extent. Similarly, if
there is heavy rain just after the pesticide application, the impact of the pesticide is minimized
to a large extent. The prime objective of pesticide application is completely ruined and at the
same time, the investment done by the farmers is also wasted. This is because of the lack of
micro-weather information for the farming community.

Farmers don’t have access to information on the prices of their produce in the market, for which
they get exploited by middlemen. This is the prime reason, for which farmers don’t get the
right price for their produce. A small and marginal farmer cannot afford to bring the produce
to the nearest mandi. In the traditional agriculture system, there was no virtual platform for
farmers to sell their produce either in business to business or business to consumer mode.

Lack of knowledge on grading, sorting and poor infrastructure for this is also another cause to
avail low prices for their produce. Warehouses and storage facilities for their produce are not
adequately available in rural areas, for which the farmers are bound to sell their produce just
after harvesting, without waiting for a time when they can get a better price. Small and marginal
farmers also don’t have access to warehouse receipt, so lack of access to institutional credit
systems.

Most of the agriculture produce is perishable in nature and needs a complete cold chain facility.
Due to lack of cold chain infrastructure, some of the produce gets spoiled and farmers are
deprived to receive the right price for their produce. Low cost cold storage and cold chain
facilities are not adequately available in rural areas, which can be accessed by farmers.

Small and marginal farmers don’t have access to machineries/equipment used for harvesting,
due to high-cost components. Farmers can neither afford to buy the capital intensive farm
machinery such as; tractors, power tillers, combined harvesters, etc., nor they have the access
to rented ones. Availability of labour force for agricultural activity is a major challenge faced
by farmers. Even if the available labour charge more wages, due to demand and supply gap

60
during the peak cropping and harvesting season. These are the multiple challenges faced by the
farming community and which were unsolved for many years.

4. Role of Agri Based Start-Ups at Pre-Harvest Stage

Quality agri-input Supply and Technical Guidance The Start-ups help the farmers in getting
quality inputs such as; seed, pesticide, fertilizer, micro-nutrients, etc. directly from the agri-
input companies / distributors through their portals/applications. Both farmers and company
representatives are on-boarded on the application and the input demand is aggregated and
conveyed to the representatives of different input companies. This service by agri-tech Start-
ups through their captive application increases the bargaining power of the farming community
and most importantly farmers get right quality input, as sourced directly from company
representatives. These Start-ups also provide technical guidance, such as pest management,
disease management, optimum irrigation, soil nutrition management, etc. to the farmers. Start-
ups are helping the farmers in testing the soil and recommend them for suitable crop variety
selection, fertilizer application, nutrition management and soil moisture retention methods.
This service minimizes the cost of production and better yield.

Disease and Pest Management Some of the agri-tech Start-ups remotely provide pest
management solutions to the farmers, through their applications/websites. Farmers take a
snapshot of the infected plant part and upload the same on the application/website. Then the
uploaded photograph is verified by the scientists/entomologists and they recommend the
desired pesticide to the farmers remotely. The farmers need not to go to the nearest
KVK/research station, and farmers save enough time and money through this service.

Weather Forecasting Farmers lose some of their products; due to sudden weather change in
their locality. Farmers are not aware about the unexpected micro-weather change, due to low-
pressure. Start-ups provide weather information in-advance before 15-20 days and also provide
alert to farmers on various aspects such as; if early harvesting would be required, due to
expected heavy rainfall during harvesting time, expected disease/pest infestation due to sudden
weather change and what precautionary measures the farmers must follow to overcome the
same. Information on right time of sowing is provided by Start-ups, keeping in mind the micro-
agro climatic and local weather condition

Farm Mechanization Small and marginal farmers can’t afford to buy capital intensive farm
machinery such as; power tiller, tractor, harvester, etc. Understanding this pain point, Start-ups
are providing rental service of different farm machineries by aggregating the same from the
local community. A lead farmer, who has a tractor rents out this to a marginal farmer through
the application of the Start-ups. Start-ups play the role of Uber in farm mechanization. This
service is very much useful for the farming community, due to the scarcity of labour,
specifically for agriculture work.

5. Role of Agri Based Start-Ups at Post Harvest Stage

Price Intelligence Farmers are usually exploited by intermediaries most often, due to lack of
information about the price of the produce in the nearest market. As the mandis are far away
from the farm gate, it's also not possible for the farmers to visit the mandi and get the price
updates at regular intervals. Start-ups provide price information about different agri-
commodities in 3-4 mandis close to the famers on a daily basis. With this information, the

61
farmers increase their bargaining power before the intermediaries and sell their produce at
better price.

Future Market Support This service supports the farmers in getting a tentative price quotation
from the buyer, from the day of sowing the seed. Through the geographical information system,
the bulk buyers, either in the domestic or international market, come to know; what variety is
grown by the farmer, when it is expected to be harvested and how much quantity of produce is
expected. With this information, the buyers provide tentative price quotations to the farmers.
This enhances the confidence level of the farming community and assures them to get rid of
distress selling.

Source Tracing Food processing companies also face problems in sourcing their raw material
directly from the farmers, due to lack of information on varieties grown by the farmers, quantity
of produce and time of harvest. Through the source tracing method, the Start-ups provide the
said information to food processing companies/bulk buyers, which helps the buyers to
channelize their sourcing force to optimise the logistic and sourcing cost. If there would be any
sudden natural calamity such as; flood or drought or severe pest attack, this information is
transmitted to the buyer, accordingly the buyer decides the alternative sources. Through this
service, processors are able to source their raw materials at better price, at the same time
farmers get higher price for their produce, due to lack of intermediary intervention.

Warehouse and Logistic Support Start-ups also connect farmers to different warehouses in
their locality by on-boarding selected warehouses on their application. In addition to logistic
support in getting the produce from the farm gate to the warehouse, the Start-ups also provide
linkages for finance support through non-banking financial companies, small finance banks,
etc., through warehouse receipt. This helps the farmers in getting better price for their produce
in future trading and also get rid of exploitation from the unorganized money lenders.

6. Challenges for Agri Start-Ups

Start-ups contribute significantly to the agriculture sector as well as to the agrarian community
in India. Agri-entrepreneurs face multiple challenges at different stages of their journey. The
major challenge is to break the traditional mindset of the agrarian community. It’s difficult for
the Start-ups to convince the farmers either to change a seed variety or to manage disease and
pest by using technology (PwC & FICCI, 2018). Also, the access to smartphones by farmers is
another issue to avail the services rendered by Agri-tech Start-ups (Vasumathi & Arun, 2021).

Right kind of human resources with a passion to serve the agrarian community is not available
for Start-ups. Management graduates don’t like to stay and serve in rural areas. As the majority
of target audience for Agri Start-ups are in rural areas, it’s difficult for Start-ups to recruit the
right human resources. Not only the recruitment, also the retention is a major challenge for the
agri and allied Start-ups (Moss, 2011).

Natural calamities frequently occur, due to the impact of climate change and the farmers lose
their crop almost every alternate cropping season. Start-ups don’t get the subscription fee from
farmers for the services delivered to them. This causes question marks for the financial viability
of the Start-ups. Access to finance either through a bank or through an equity investor is also a
challenge for any Start-up, due to the natural calamities and irregular revenue flow for Start-
up.

62
Agri Start-ups face problems in creating awareness about their product/service in the rural
market. The low-cost marketing tool i.e., digital marketing, which is well adopted by the Start-
ups, does not work adequately among agrarian communities. Start-ups cannot afford to
advertise in print and electronic media to improve their brand visibility in rural areas (PwC &
FICCI, 2018).

7. Conclusions and Recommendations

In addition to the agriculture sector, Agri-tech Start-ups are playing a major role in creating
jobs and adding value to the Gross Domestic Product (GDP) of the Indian economy. Covid 19
Pandemic has affected Start-ups to great extent. Agri and allied Start-ups have lost many of
their human resources, due to the financial crisis as a result of poor revenue flow. Most of the
public funds were diverted to the healthcare sector to combat against Covid. Due to this; the
public funded impact investors focus has been diverted from agri based Start-ups to healthcare
projects. The agri based Start-ups should be provided financial support, either in debt or equity
form, at this difficult stage in order to sustain their business and contribute in job creation (Dash
et al., 2020).

The Government extension service such as; Krishi Vigyan Kendas (KVKs) should support
Start-up in reaching to the agrarian community. The innovative services such as; weather
forecasting, disease and pest management through integrated pest management, plant varietal
recommendation (Dash et al., 2020), soil testing, integrated nutrient management and market
linkage support are very much essential for doubling farmers’ income. Due to lack of
adequately trained resources and poor budget availability for promotion in rural areas, agri-
based Start-ups face problem in reaching out to farmers and they need support of the scientists
at different KVKs in popularising these innovative services for the betterment of farming
community (Sharma & Mathur, 2019).

Due to poor availability of smartphones in rural areas and lack of knowledge of farmers about
the operation of smartphones, tablets with internet connectivity should be provided to the field
staff of the public extension department. The software applications of different Agri-tech start-
ups need to be installed in these tablets and these field staffs should be trained on the features
and services of each of the applications and its utility for the farming community.

Like investors meet, bulk buyers or exporters meet should be organised by the Agriculture
department at least twice in a year, for the cash crops grown by the farmers in the state. The
agri based Start-ups who are in post-harvest segment can support in identifying bulk
buyers/exporters and bring them to the buyers’ meet platform. This will add value to both the
key stakeholders; farmers and Start-ups (Colombelli et al., 2016; FICCI., 2018). Farmers will
get better prices for their produce; Start-ups also generate revenue through this facilitation
process.

The Start-ups should be supported at their embryonic stage and introductory stage to overcome
the said challenges, so that they can scale-up and contribute better to the sector and agrarian
community (Lee & Kim, 2019; PwC & FICCI, 2018).

63
References
Alavion, S. J., Allahyari, M. S., Al-Rimawi, A. S., & Surujlal, J. (2017). Adoption of Agricultural
E-Marketing: Application of the Theory of Planned Behavior. Journal of International Food
and Agribusiness Marketing, 29(1), 1–15. https://doi.org/10.1080/08974438.2016.1229242
Alavion, S. J., & Taghdisi, A. (2021). Rural E-marketing in Iran; Modeling villagers’ intention and
clustering rural regions. Information Processing in Agriculture, 8(1), 105–133.
https://doi.org/10.1016/j.inpa.2020.02.008
Antràs, P., & Chor, D. (2013). Organizing the Global Value Chain. Econometrica, 81(6), 2127–
2204. https://doi.org/10.3982/ECTA10813
Bowen, R., & Morris, W. (2019). The digital divide: Implications for agribusiness and
entrepreneurship. Lessons from Wales. Journal of Rural Studies, 72(Dec.), 75–84.
https://doi.org/10.1016/j.jrurstud.2019.10.031
Calatayud, A., Monsreal, M., Mangan, J., & Villa, J. (2020). Benefits of Technology Adoption for
Enhanced Integration of Port–Hinterland Operations. Transportation Research Record:
Journal of the Transportation Research Board, 036119812094925.
https://doi.org/10.1177/0361198120949251
Chandrawanshi, N. K. (2020). Study on the impact of Sustainable agriculture practices on food
security. In Financial Inclusion and Economic Growth (1), 121–135.
https://www.academia.edu/43553810/Study_on_the_impact_of_Sustainable_agriculture_pra
ctices_on_food_security
Chauhan, Y. (2020). Food waste management with technological platforms: Evidence from Indian
food supply chains. Sustainability (Switzerland), 12(19). https://doi.org/10.3390/su12198162
Colombelli, A., Krafft, J., & Vivarelli, M. (2016). To be born is not enough: the key role of
innovative start-ups. Small Business Economics, 47(2), 277–291.
https://doi.org/10.1007/s11187-016-9716-y
Dash, D., Khandelwal, P., & Nath, S. C. (2020). A Proposed Model for Agricultural Marketing in
Odisha, India. International Journal of Recent Technology and Engineering, 8(5), 836–839.
https://doi.org/10.35940/ijrte.d8125.018520
Pahwa, A. (2020). Agritech-towards transforming Indian agricutlure. Ernst & Young LLP EY, 8,
1–53. (Access on 19th December, 2021)
Gereffi, G. (2001). Beyond the Producer-driven/Buyer-driven Dichotomy The Evolution of Global
Value Chains in the Internet Era. IDS Bulletin, 32(3), 30–40. https://doi.org/10.1111/j.1759-
5436.2001.mp32003004.x
Halldorsson, A., Kotzab, H., Mikkola, J. H., & Skjøtt‐ Larsen, T. (2007). Complementary theories
to supply chain management. Supply Chain Management: An International Journal, 12(4),
284–296. https://doi.org/10.1108/13598540710759808
Halldórsson, Á., Kotzab, H., & Skjøtt-Larsen, T. (2009). Supply chain management on the
crossroad to sustainability: a blessing or a curse? Logistics Research, 1(2), 83–94.
https://doi.org/10.1007/s12159-009-0012-y
Hsuan Mikkola, J., & Skjøtt-Larsen, T. (2004). Supply-chain integration: implications for mass
customization, modularization and postponement strategies. Production Planning & Control,
15(4), 352–361. https://doi.org/10.1080/0953728042000238845
Lee, W., & Kim, B. (2019). Business sustainability of start-ups based on government support: An
empirical study of Korean start-ups. Sustainability (Switzerland), 11(18), 1–20.
https://doi.org/10.3390/su11184851

64
Moss, B. (2011). Allied attack: climate change and eutrophication. Inland Waters, 1(2), 101–105.
https://doi.org/10.5268/IW-1.2.359
Neilson, J., Pritchard, B., & Yeung, H. W. (2014). Global value chains and global production
networks in the changing international political economy: An introduction. Review of
International Political Economy, 21(1), 1–8. https://doi.org/10.1080/09692290.2013.873369
Pillai, R., & Sivathanu, B. (2020). Adoption of internet of things (IoT) in the agriculture industry
deploying the BRT framework. Benchmarking, 27(4), 1341–1368.
https://doi.org/10.1108/BIJ-08-2019-0361
Piramuthu, S., & Zhou, W. (2016). RFID and Sensor Network Automation in the Food Industry:
Ensuring Quality and Safety through Supply Chain Visibility. In RFID and Sensor Network
Automation in the Food Industry: Ensuring Quality and Safety through Supply Chain
Visibility. Wiley. https://doi.org/10.1002/9781118967423
PwC & FICCI. (2018). Agri start-ups: Innovation for boosting the future of agriculture in India.
FICCI. http://ficci.in/spdocument/23049/Agri-start-ups-Knowledge-report-ficci.pdf. (Access
on 18th December, 2021)
Raut, S. (2021). This company aims to create a robust value chain for 90 mn tonnes of perishables
by partnering with farmers. Your Story Media Pvt. Ltd. (Access on 28th December, 2021)
Sharma, K., & Mathur, H. P. (2019). A Step Towards Digital Agronomy by Start-ups. International
Journal of Business Insights & Transformation, 12(1), 26–32.
Shukla, T., Chauhan, G. S., & Saumya, S. (2018). Traversing the women entrepreneurship in South
Asia: A journey of Indian Start-ups through Lucite ceiling phenomenon. Journal of
Enterprising Communities, 12(1), 50–66. https://doi.org/10.1108/JEC-04-2017-0028
Vasumathi, P., & Arun, C. J. (2021). Adoption of Digital Marketing in Agribusiness: a Conceptual
Study. Academy of Marketing Studies Journal, 25(3), 1–6.
https://www.proquest.com/scholarly-journals/adoption-digital-marketing-
agribusiness/docview/2540838994/se-2?accountid=32819 (Access on 19th December, 2021)
Webb, R., & Buratini, J. (2016). Global challenges for the 21st century: The role and strategy of
the agri-food sector. Animal Reproduction, 13(3), 133–142. https://doi.org/10.21451/1984-
3143-AR882
Federation of Commerce and Industry (FICCI). (2018). START-UPS: Transforming India’s Food
Processing Economy. 1–78. (Access on 22th December, 2021)

65
 Chapter 6

Employment Generation Opportunity Through Education

Start-Ups In India
Noor Alam Khan, PhD*
Assistant Professor, Faculty of Commerce and Management,
Department of Commerce and Business Management,
Integral University, Lucknow. India
Email: [email protected]

Deepak Sharma
Scholar, Faculty of Commerce and Management,
Department of Commerce and Business Management,
Integral University, Lucknow. India

*Corresponding author

Abstract
For being successful in the day to day lives and also in the global workforce, in the global
market, it is important for the students to carve their way for acquiring the expertise. They also
need to form meaningful resources to the mentors and the peers. Their journey starts with the
base of knowledge and their abilities maybe augmented and improved throughout their lives.
Luckily, advancements in learning science have offered new insights about the way people
learn. Technology is a powerful tool for reimagining the learning experience based on these
insights. Start-up India programme aims at this only. It aims offering a platform to young
entrepreneurs who are looking to start their own business. Talking about different parts of India
every state is adopting the start-up policy and working its way towards providing self-
employment opportunities to the youth. They provide them the right guidance and direction.

Keywords: Start-Ups; Start-Up India; Education and Start-Ups,

1. Introduction
Entrepreneurship plays a significant role in the growth, development and the prosperity of a
number of countries across the world. The new entities based on the entrepreneurial efforts
have been recognized at the global level to be the key engine for creation of employment and
wealth. Thus, for promoting entrepreneurial spirit among the people, especially the youth, GoI
under the table leadership of the Honourable Prime Minister Shree Narendra Modi has
introduced the “Start-up India” programme. The objective of this unprecedented initiative is
addressing all the structural constraints that hamper the growth and progress of a number of
businesses. Basically, start-up can be defined as an enterprise that initiatives its operations with
some new ideas and concepts. It is the rejuvenated and revived form of entrepreneurship which
is gaining a lot of popularity these days. Thus, this programme attempts at providing maximum
support to the newly setup business organizations. With the help of this initiative, government
strategizes for creating a structure that boosts innovation and development of start-ups in India.
This ultimately leads to employment generation on a large scale and a sustainable growth of
the economy too. Therefore, studies have been done for creating a base for employment

66
opportunities for each job aspirant whether he or she is skilled, unskilled or semi-skilled. In
India, if someone opts for entrepreneurship as a career option, many government procedures
including acquiring land permissions, foreign investment proposal, environmental clearance,
etc. dissuades him for setting up his or her enterprise. In this context, start-up India is the action
plan that seeks at changing people’s perception towards government from being the
obstructionist entity to being a facilitator that guides the new enterprises towards the path of
effectiveness and efficiency. The Government intends to encourage people to transform their
ideas into enterprises. Liberalized and restructured government policies help the entrepreneurs
in keeping the cost for adherence to the stringent government procedures and rules minimum
for becoming competent (Saukkonen, 2017).

Figure 1: Top Ed-Tech Companies in the World

Start-ups are all about the prosperity of the country. And in today’s contemporary world, India
has been blessed with a “Demographic Dividend”. It denotes that India has been blessed with
largest number of youth across the world. By offering economic, social, political and
technological assistance to ideas of these young minds of India, it may be assured that their
capabilities are coordinated as well as directed in a way that in place of becoming a social
liability for government and the nation, the energized youth population goes onto becoming
the asset for the nation.
Objectives of the Study:
1. To make a comprehensive Analysis of the employment generation opportunity through
education start-ups in India
2. To find the various factors that affect employment generation opportunity through
education start-ups through out India
3. To discuss upon the major employment generation Education Start-ups in the country
Research Gaps
The present study focuses upon the analysis of the employment generation opportunities
through education start-ups. The existing literature has very little discussion on this burning

67
topic. Education field has totally transformed after the entry of the online education providers.
The online education ventures are growing with a rapid speed. Here we are discussing how the
education start-ups are providing the entrepreneurial opportunities to the youth.

2. Literature Review
The historic status of India has been that of innovation driven nation in a number of trades,
astronomy, mathematics and philosophy. However, it was diminished through colonisation of
India by the Britishers. To a certain extent, the policy of economic liberalisation of 1991 re-
bounded the industry and businesses in India. Still there are many factors that hurdles the
smooth establishment and functioning of business entities. After reforms were announced and
implemented, the growth pace of India’s economy has gone up from being single digit in the
first 10 years of liberalisation to 2 digits growth rate. Therefore, the significance of
entrepreneurship is huge and has also been realised and a number of incremental steps have
been taken by successive governments for the same (Kumar, 2015).

Entrepreneurship is about identifying the opportunities, forming the new concerns and pursuing
with the new association. According to a study, an entrepreneur has to be visionary, innovative
and willing to take multiple risk. Entrepreneurs maybe defined as individuals who are ready to
explore the business environment, assess the options available and capitalise them once proper
analysis has been done. The process of forming a venture is dynamic and it includes a number
of activities like preparing the business plan, obtaining required resources, developing the
products, finding options of finance, conducting market research activities, finding finance
sources, legal support and patenting. It’s been widely recognised and accepted that
entrepreneurship development is one of the most basic tenets of growth and development of an
economy (Sharifi and Hossein, 2015). The growth and success of Europe and USA through the
phases of industrial revolution during the 18th and the 19th century, substantiate
entrepreneurship’s contribution towards their prosperity. The success of a business depends
mainly on the desire of the entrepreneur for assuming responsibilities for his or her actions.
The intended outcome could be obtained through learning from the previous experience by
taking actions in right way and making consistent efforts which brings success (Bhim and Ajay,
2020).

Figure 2: Top Education Start-ups in India

68
After the functions and roles have been properly assigned to entrepreneurs, important attributes
which are crucial for the successful running of business will have to be inculcated. These
attributes and qualities might help in building the capacity for exploring, risk taking abilities,
capacity to think creatively, ability of influencing and pursuing, a desire for deferring
consumption and consciousness about quality. For becoming a global power and for effectively
meeting the social obligation like improving the standards of living, alleviating poverty and
generating employment opportunities, different sectors like agriculture and manufacturing
need to grow exponentially. Entrepreneurs are very important in this regard because their
contribution makes the future of millions by offering them employment. This draws the
attention for investigation as how the entrepreneurs in India make their ventures successful and
essence of this enquiry maybe used as the benchmark for the aspiring entrepreneurs (Badra and
Sharma, 2016).

It is important for India to create around 1 crore jobs every year in the coming 10 years for
providing gainful employment to the youth. It’s been proved historically through different
examples of the western nations that for generation of large-scale employment opportunities
stimulating entrepreneurship and creation of business opportunities is important. Usually,
entrepreneurship which is driven by innovation resolves the manifold social issues of the
country like making healthcare affordable, good quality education, waste management, clean
energy as well as financial inclusion (Bindal, Gupta and Dubey, 2018). In the past few years,
large scale business entities (private and public) haven’t been able to trigger employment or a
growth in the employment opportunities and it’s not even expected from these entities to do it
in the coming few years also. Since the economic reforms of 1991 happened, a completely new
era of the market economy emerged in India and the government’s role in business has been
minimised because of privatisation policy that the government adopted. Therefore,
employment has rather declined in all the sectors including education in the past few years.
Similarly, along with the increasing digitisation and automation, the global recession has
affected the rate of growth of private sector and thus there’s a decline in the employment
opportunities in the private sector too. Assistance to the new ventures with a low investment,
energised efforts and innovative ideas may help the young entrepreneurs in not just increasing
the innovation potential of India, but also in creating employment opportunities and creating
alternates for conventional economic structures depending not just on the couple of big
corporate houses for jobs as well as investment opportunityes (Dutta, 2016).

Special attention is being paid to the EdTech start-ups also. These start-ups create mobile based
app which aids communication between the students and the teachers. The platform also
provides kits for learning and skill booster for the kids between the age group of one and five.
These platforms enable the kids in developing their skills of logical thinking, linguistic skills,
etc. The mobile applications are available on all platforms (Chandiok. 2016). The EdTech start-
ups have played an important role during the pandemic and the resultant lockdown restrictions.
The schools, colleges and other centers of activities were shut because of the pandemic and
lockdown and thus kids were confined to their homes. These mobile learning platforms kept
the education sector going without hampering the education of children. They brought the
classrooms to their homes and ensured that they don’t miss on their education. A whole new
revolution was brought with the mobile learning applications. It made easy for the teachers and
the students to interact with each other in absence of the physical classrooms (Komarraju,
2021).

69
3. Role of Academic Institutions in the growth of Startups
Entrepreneurship Learning in the academic institutions play an important role not only the
growth of startups but for the economy and society as a whole (Hahn et.al. , 2017).
Entrepreneurship skills, attitude and traits can be developed through pedagogical activities,
processes and courses among students (Bae et.al. 2014, Fayolle and Lassas, 2006). The
universities not only encourage students to take new ventures but also promote entrepreneurial
thinking (Leitch, Hazlett and Pittaway, 2012; Mustar, 2009). Universities are provider of
technological knowledge critical for innovation and economic growth (Mian 2011; Markman
et al. 2005) ranging from simple skills like math, budgeting, panning marketing and saving to
providing important lessons about value of failure, ethical decisions, negotiating and
networking (Abel, 2016). The importance of the role played by universities can be seen in a
comparative perspective of the research universities and teaching led universities (Abreu et.al.).
Research intensive universities are known for the transfer and commercialisation of technical
knowledge while the teaching led universities are less intensive on this part (Bonaccorsi et al.
2014). The research oriented universities act as repository of technological knowledge and act
as a link between industrialists and the research communities through facilitation of patent
procedure, licensing and knowledge intensive spinouts. The teaching led universities on the
other hand can play a leadership role in promoting technological clusters through regional
capacity building and networking. The research and education related to generation,
opportunity discovery, opportunity occurrence and opportunity search by providing prior
knowledge base (Alsos, 2004). The brief review of literature above, unfolds the various aspects
and issues being researched and carefully analyzed. But in general, it could be understood that
in most of the cases youth are being considered as a tool for facilitating growth especially in
the context of the growing young population in India as the National Youth Policy 2014
recognizes they can be used as a means of development. Hence, to tackle demographic dividend
it would also be important to examine the current status of entrepreneurship among youth to
analyse the intervention strategies to address youth employment. In the specific context of
educated unemployment and increasing labour force and low level of work participation in
India, an enquiry into the recent startups initiatives with special focus on youth
entrepreneurship seems to be pertinent at this juncture. entrepreneurship also helpful in creating
a knowledge base for generation of opportunities for new ventures (Shane, 2000). The
universities play an important role opportunity

4. Conclusion
The performance of the economy of a country is not restricted to the GDP or the per capital
income. It encompasses growth in the opportunities for people and employ-ability and status
of employment of people. It’s the 21st century and India is not what it used to be at the time of
independence. With the considerable level of awareness and education the youth of today are
capable of taking rational decision for the future. Availability of multiple opportunities can’t
be ensured through traditional role of a government where it just controls the economic
resources. It needs to play the role of a facilitator for optimally utilising the resources. The
government’s role needs to offer a targeted policy ecosystem and information to people so that
they can take informed decisions. With the help of Start-up India along with other flagship
programs, the endeavors of the government for creating the situation of “Maximum governance
and minimum Government”. Thus, the start-ups are also being boosted across India. A lot of
efforts are being made on the Governments part for the same. Financial assistance, technical
guidance and other support are being offered to the youth to make them self-employed.

70
References
Babu G.S. and Sridevi K., (2019), A study on issues and challenges of start-ups in India , 2(1), 44-
48
Badra, D. S. and Sharma, V., (2016), Start-up India- New Opportunities for the Entrepreneur.
International Journal of Science Technology and Management , 5 (1), 526-529
Bhim J. and Ajay K., (2020), Characteristics and Determinants of New Start-ups in Gujarat, India
1(2), 1-25
Bindal M. , Gupta B. , Dubey S., (2018), Role of start-ups on Indian economy international journal
of engineering and management research, 8(5), 142- 145
Chandiok S., (2016), India the world’s fastest growing start-up ecosystem: A Study, 1(2), 85- 93
Dutta, A., (2016), Start-up Initiative. IOSR Journal of Business and Management (IOSR-JBM)
(Special Issue - AETM'16), 93-97
Goswami M.K., (2018), Entrepreneurship Development and Employment Generation in India:
Opportunities and Challenges, 6(1), 461- 469
Hrkatha, 2021, An app for self-employment in Uttar Pradesh, to encourage start-ups
Komarraju A., 2021, Top 10 EdTech Start-ups shaping the Indian Education Industry,
Analyticsinsight
Kumar, K., (2015), Indian Online Start Ups: Can they stand Up against the World. International
Journal of Advance Research in Computer Science and Management Studies, 3(4), 236-243
Pratibha S., (2020), Start-Up India- Opportunities and Performance in Indian Context, 25(4), 28-
31
Saukkonen J., (2017), From a Student of Start-up Business to a Start-up Employee or Entrepreneur:
Study on Career Narratives of Students in Entrepreneurial Programs in a University, 3(1),
214- 231
Sharifi, O. and Hossein, B. K., (2015), Understanding the Financing Challenges faced by Start-ups
in India. International Journal of Science Technology and Management, 4 (1),264-272
Yadav N., Gupta K., Khetrapal V., (2018), Next Education: Technology Transforming Education
2018, 7(1), 68-77

71
 Chapter 7

Entrepreneurial Mindset
Dr. Vasanthi Reena Williams
Professor, Department of MBA,
Member of Research & Curriculum Development Cell,
Vidya Vikas Institute of Engineering & Technology, Mysuru
E-mail: [email protected]

Abstract
Economists across the globe have always vouched for entrepreneurship, for sustaining the
industrial health of society. Governments across the globe promote and encourage
entrepreneurship among their citizens through training programs, promotions and attractive
schemes. Undoubtedly, entrepreneurial development is key to economic development and
many individuals get motivated to start their own venture. However, very few become
successful and therefore, for the common man, ‘entrepreneurship’ is a weary word. Infact, few
parents would be happy to hear their children aim at becoming an entrepreneur. This article is
based on, findings from three previous research studies on entrepreneurship by the author. The
findings of each study reveal interesting facts about entrepreneurship.

Keywords: Entrepreneurship, Challenges, Economic conditions, Development, Financial

stability, Self Help Groups (SHG’s).

1. Introduction

The Oxford dictionary defines ‘Entrepreneur’ as an individual who undertakes to supply goods
or service to the market for profit; an individual who organizes, manages and assumes the risks
of a business or enterprise. While defining the term, we might also know that an entrepreneur
might be; either one of the following, viz., small business entrepreneur, a startup entrepreneur,
a one-person company or a social entrepreneur. Further, and since an entrepreneurial venture
is a challenging one, the individual who wishes to be one should have a clear vision, exhibit
loads of patience and perseverance, know his/her market needs and be innovative. The
management guru, Peter Drucker3 (1986), defines entrepreneurship as a discipline which can
be learned. The modern definition of entrepreneurship states ‘Entrepreneurs see possibilities
and solutions where the average person only sees annoyances and problems’4(Nicole Martins
Ferreira 2021). In a lighter moment, the definition definitely puts in a punch, on the average
person literally, and makes him/her reconsider entrepreneurship as an option.

Economists in India too have always voiced their opinion positively for entrepreneurship. To
add to this, the central and respective state governments, regularly come up with schemes to
promote entrepreneurial ventures. Infact, after the Liberalization Policy introduced in the
1990’s, there is a visible change in lifestyle and living standards of majority of our fellow
citizens. However, this observation can be made only on a fortunate few and not every citizen
of our country. Providing equal opportunities for every citizen has become the priority of the

3 Source: (Druker, 1986)

4
Source: Nicole Martins Ferreira (2021). https://www.oberlo.in/blog/what-is-entrepreneurship

72
Government and therefore several measures have been taken in this regard. The latest estimate
shows that 38% of the people in India, still live below poverty5 (2021).

When we speak of sustainability, the concept of entrepreneurship definitely gets included in

the discussion and dialogue. When we look around us, we can clearly see and identify many
entrepreneurs; some of them being well educated and having the required resource to take up
a venture, while there are also an equal or might be a greater number of individuals who have
taken up entrepreneurship out of sheer grit and tenacity as they have no other option in earning
a livelihood. This is due to lack of education. Further, they lack the resources, and many a time
the knowledge, but have still known to ensure an almost sustainable livelihood for themselves
and their families. What is being refereed to here, is specifically those from the unorganized
sector.

At this juncture, the Entrepreneurship Development Programs (EDP) being offered by many
organizations, the government or NGO’s, can definitely make a huge difference in the life of
many and also ensure sustainability to a larger extent. Individual efforts of the entrepreneur
may not be adequate to ensure success. Therefore, these programmes serve to offer proper
guidance and motivation to ensure success in the entrepreneurial venture to a novice and exhibit
the required support like, getting accomplished legal requirements, understanding the market
requirements, recording and documenting transactions, availing loans from financial
institutions, facing competition and fluctuations in the market etc.

The first study conducted by the author, on the topic was on the EDP-Entrepreneurship
Development Programme, conducted by RUDSETI- Rural Development and Self Employment
Training Institute, Mysuru Centre. The objective of the study was to analyze and evaluate
outcome of the EDP conducted by RUDSETI, Mysuru Centre. To attain the study objective,
candidates who had completed a minimum of a year after successful completion of the EDP
training programme were identified as respondents for the study. This was in two folds; One
being that, the individual would have sufficient time to make use of the training and secondly,
to help the study identify the number of EDP participants who had successfully become
entrepreneurs. Furthermore, the second objective was to help identify their challenges which
could help the institute provide suitable solutions, thereby encouraging more candidates to
participate in the EDP.

The Indian government has been actively and rigorously promoting the concept of ‘Make in
India’, through all possible ways and means, and we as civilians are very much aware of the
fact, based on the news reports, via the internet and social media where success stories are
being shared. Infact RUDSETI seems to have an increase in the number of candidates
approaching the institute for enrollment. Moreover, the number of women candidates enrolling
for the training also seem to be on the increase.

RUDSETI, on its part, regularly met their wards during the initial phases of the new venture.
However, the outcome of the study reveals common challenges faced by the entrepreneurs,
namely; (a) non-availability of finance for investment (want of surety) (b) non-availability of
proper /sufficient space to start business activity (c) Securing license from respective offices
(d) Lack of encouragement from family and contacts. There were other challenges like, being
unable to face the challenges of the entrepreneurial venture, unable to match with the

5 Source: Poverty in India (2021). http://www.azadindia.org/social-issues/poverty-in-india.

73
competitors, lack of technical skills, lack of marketing skills and lack of time to avail further
training.

The second study was based on Self Help Groups-SHG’s, to investigate outcomes, benefits and
challenges faced by members and leaders of the SHG’s. Description of the methodology used
for this particular study was as follows:

Research design Exploratory (as the identified respondents were from an unorganized
sector, mainly housewives, small shop owners & vendors) and
Descriptive ( to help identify characteristics of the sample under
study).
Sampling Convenience sampling (Respondents were identified from SHG’s
Technique where respondents were willing to respond to the questionnaire)
Sampling Unit Member of SHG’s in Mysuru, Nanjangud and K.R.Nagar areas in
Mysuru District ( to get a better understanding of the working of
SHG’s).
Sample Size 120 members from the three identified areas were contacted of which
112 responded to the study.
Research Instrument Questionnaire through Direct interview method
Data Collection Interview schedule, observation and interaction with the identified
respondents.
Analysis Subjective and percentage method. Use of SPSS for related
calculations.
Limitations The study identified members of SHG’s in Mysuru, Nanjangud and
K.R.Nagar. The study therefore reflects the findings and suggestions
related to the specific respondents. Respondents may not have given
their exact views / hidden information deliberately, which could affect
clearer outcome.
The study revealed the following information, based on the objectives set. Apart from
providing loans, SHG’s have also been providing specific training for the members based on
the request made by them. The major objective of the SHG, being motivating members to be
self-employed. However, it was observed that very few SHG’s are able to organize training
programmes because of lack of interest shown by majority of members. It was also understood
that the reason an individual wanted to take up membership at the SHG, was basically to avail
loan which was made available at a much lesser rate of interest.

While analyzing the level of social support received by members of the SHG, the response was
very positive and several instances of the SHG conducting family counseling to resolve family
issues were observed and noted. Further they organize tours to brighten and cheer the members.

Focusing on the major objective in the study, relating to availing loan and its utilization by the
SHG member, the information collected reveals that though personal loans were easily being
availed by the members, the SHG also provided loans for entrepreneurial / self-employment
initiatives like farming, cattle rearing, purchasing of tailoring machine, setting up of petty shop
etc. but had very few takers.

Getting members to attend meetings regularly was the biggest challenge as mentioned by the
leaders of several SHG’s. After availing loans, the members would hardly attend future
meetings. They would send their monthly remittance through other members or come on

74
convenient days to remit the monthly amount and not on specified days scheduled for the SHG
meeting. This clearly shows that there is lack of interest in taking up entrepreneurship. Infact,
it was learned that the Karnataka Grameena Bank which is a major supporter of SHG’s has
stopped providing loans after facing problems of loan defaulting by SHG members.

While also trying to identify the contribution of members towards their respective SHG, the
answer was not very encouraging in urban places but the rural SHG’s had a positive story to
share. Articles on SHG’s mention initiatives of respective state governments and the Central
governments introducing schemes and welfare measures through SHG’s. This could make the
SHG’s more responsible. Infact, the Dharmasthala Trust and Larsen & Toubro Company have
been facilitating SHG’s, by providing loans to help empower women members to start their
own business.

Further to this study, another interesting case study was initiated to study the concept of
entrepreneurship for sustainable development. This study attempted to endorse
entrepreneurship among women from the vulnerable group. Two women entrepreneurs from
the economically and socially weaker backgrounds, were identified for the study. These
women, who against several odds have been able to sustain their family through their
entrepreneurial venture to ensure sustainable development.

The primary objective of this study was to analyze the system of financial support received by
the entrepreneur respectively, during the establishment of the business venture. The
information collected from the respective entrepreneurs reveals that both had borrowed funds
from private agencies when they required funding for their business. The reason for not
approaching banks was basically because they lacked confidence to approach a bank for fund.
This is again because of their ignorance about the schemes being made available, wrong
information shared by their friend circle and the added lack of education. Secondly, they had
not security resource to fall back on for loan payback. Moreover, obtaining loans from private
agencies requires less documentation and formalities which makes it convenient for people
belonging to this group to seek financial assistance.

It was suggested through this study that the respective board and committee established by the
government, focusing on women empowerment, micro-financing institutions and
entrepreneurship training institutions should take initiative in personally meeting such women
entrepreneurs and give them the required information which could help them save on the higher
rate of interest they pay for loans availed from private agencies. Furthermore, it would also
help in creating awareness regarding upcoming schemes, training programmes and business
ideas for improvement and overall development.

The second objective of the study focused on studying the social support received by the
entrepreneur from her immediate family and relatives, for her objective of engaging in the
venture. It was found that both the women entrepreneurs did not find much support from other
family members. While in Case-1 the entrepreneur sells flowers (in India it is customary in
every household to decorate gods with a garland for worship. Women too decorate their hair
with jasmine and similar variety flowers which are woven as a garland), the entrepreneur did
get support from her husband (a painter by profession- his job depended on work assignments
which were not regular. But in Case-2, the entrepreneur, as widow, lost her husband at a young
age and had to take up the venture (selling condiments and street food), which was initially
started by her husband. She had no other alternative as she lacked formal education and had
responsibility of taking care of two young children. It is heartening to note that both these

75
women, though they lack formal education and training in business, are able to successfully
sustain their family and live a decent life.

It is suggested through this study that the government needs to ensure proper sharing of
information relating to the various schemes introduced for the beneficiaries and make certain
that such information is made easily available for those from the lower strata of society who
always feel insecure due to their lack of education and thereby hesitate to meet officials. They
tend to depend on friends or acquaintances who many a times take advantage of their ignorance.

The additional objectives of the study were to identify the challenges faced by entrepreneur in
the course of their business activities. It was observed that both the women were very confident
in their job and were also quiet content with their venture. However, they lacked confidence in
themselves with relation to their communication and interaction with people who were
educated or financially better placed. This made them vulnerable to middlemen on whom they
depended, for getting trade license from the authorities and related jobs done. Proper education
and awareness are required to ensure building of confidence and personality development. This
could help them take their business to a better level.

With reference to approaching banks for loans, the entrepreneurs found it difficult to provide
adequate collateral security and secondly were not sure of fixed returns from business in order
to repay loans. Competition from fellow entrepreneurs was also a challenge they faced. Health
issues was also a challenge as there was no one to take their place in their absence when they
fell sick.

All the three studies helped in understanding the concept, challenge and the triumph of
entrepreneurship at the grassroot level. It is important to create a mindset that makes it easy for
an individual to choose entrepreneurship, like he/she would choose a subject/course for study.
No amount of finance and/or advise will motivate an individual to take up entrepreneurship,
unless the individual is self-motivated to become one. Therefore, it is the duty of all concerned
to focus on changing the mindset through a clear and transparent process that will build
confidence in the individual wishing to take up entrepreneurship.

As a progressive society, it is the duty of every educational institution to ensure personality

development, communication skill and confidence building activity for all students both boys
and girls. This initial initiative could ensure inculcating a sense of confidence to seek
information or help as they grow, which in the coming years could serve as support for facing
uncertainties in life. It could also promote entrepreneurship among them in future years,
making them self-employed, and possibly being in a position to offer employment to another.

Finally, a word- Challenges are many, but persistence gains an upper, when it comes to
entrepreneurship.

This article is based on the collective outcome of the study previously conducted by the author.

References
Drucker, P. F. (Peter F. (1985). Innovation and entrepreneurship: practice and principles. 277
Poverty in India, Poverty rate in India, Population below poverty line, Poverty Reduction in
India, Urban Poverty In India, Rural Poverty In India, Indian Problems. (n.d.).
http://www.azadindia.org/social-issues/poverty-in-india.html

76
What Is Entrepreneurship? Detailed Definition and Meaning (2022). (n.d.).
https://www.oberlo.com/blog/what-is-entrepreneurship
Williams, Vasanthi Reena & Harsitha M C (2019). ‘Analyzing Social and Financial
Empowerment through Self Help Groups’. Economic Growth and Sustainable
Development: Emerging Trends’. 5th International Conference Proceedings. SDMIMD,
Mysuru. ISBN 978-93-83302-34-5 .
Williams, Vasanthi Reena (2016). ‘A Study on Women Empowerment Schemes provided at a
(SHG) Vocational Training Centre at Mysuru. International eJournal of Interdisciplinary
Research (AU-eJIR). July 2016. Vol-1: Issue-2 . Online ISSN 2408-1906.
Williams, Vasanthi Reena & Akash Kumar Singh (2017). A Preliminary Study on the
Opportunities and Challenges of Cottage Industries in India. IJEDS International Journal
of Entrepreneurship and Development Studies. Vol 5. No.3.Sept 2017. ISSN:2079-2549.
Published by World School of Business, World University of Bangladesh (WUB) Center
for Entrepreneurship and Development studies. Pp 267-283
Williams, Vasanthi Reena (2015). ’Micro Insurance and Economic Stability- A Study at Annur
Village, HD Kote Taluka, Mysuru District, Karnataka State’. International Journal of
Social and Economic Research, July 2015, Vol. 5 Issue 2. Online ISSN: 2249-6270.
Article DOI: 10.5958/2249-6270.2015.00021.5
Williams, Vasanthi Reena (2016). ‘Evaluating the outcome of Entrepreneurship Development
Programme (EDP) for 2011 & 2012 batch, conducted by The Rural Development and Self
Employment Training Institute (RUDSETI) Mysore Centre’. Research Revolution.
International Online & Print, Monthly peer-reviewed Journal. April 2016.Vol- IV, Issue-
7. Impact Factor: 5.007. ISSN: 2319-300X (Print). ‘Page 1-7

77
 Chapter 8

Developing Entrepreneurial Mindset through

Non-Academic Initiatives in a Higher Education Institution
and Governmental Support in Oman
Muthla Al Busaidi*
Lecturer, Department of Management and Law,
Faculty of Business and Economics, Modern College of Business and Science,
Muscat, Oman
E-mail: [email protected]

Hesham Magd, Ph.D.,

Associate Dean for Quality Assurance & Accreditation
Faculty of Business and Economics Head, Modern College of Business and Science,
Muscat, Oman
E-mail: [email protected]

Shad Ahmad Khan, Ph.D.,

Assistant Professor, College of Business, University of Buraimi,
Al Buraimi Oman
E-mail: [email protected]

*Corresponding Author

Abstract
Entrepreneurship is becoming the strategic direction of countries to enable them to
sustain their economic development and employment. Entrepreneurship has been
recognized for its positive contribution to economic development, economic growth,
startup venture creation, wealth creation, employment creation and sustainable
developments of countries. In addition to this, entrepreneurship in higher education is
taking shape and is becoming the driving force behind shaping and building
entrepreneurial mindset in today’s competitive environment. In today’s business
competitive environment, employers seek employees who posses’ entrepreneurial skills
and mindset, and this is accomplished through engagement in nonacademic
entrepreneurial activities. Its evident that entrepreneurial mindset is emerging as an
important concept that play a vital role in reshaping, developing, and nurturing the
entrepreneurial skills, competencies and capabilities needed for success. Institutions
across the world are developing their own system in developing entrepreneurial mindset
and Oman is following this trend in support of vision 2040 in building capability of its
youth. This study attempts to shed some light on the role of the government and higher
education in building the entrepreneurial mindset.

Keywords: Entrepreneurship Development Activities, Entrepreneurial Mindset, HEI,

Oman

78
1. Introduction
In recent years, entrepreneurship has been the solution to challenges which many countries
faced. Therefore, with the hopes of inspiring individuals to become entrepreneurs,
entrepreneurship education has been implemented as academic courses in higher education
institutions (Walter & Block, 2016). Marin et al., (2019) highlighted how innovative HEIs
should adopt extracurricular activities to stimulate further entrepreneurial mindset to graduates,
academic teaching is not enough. Various informal learning opportunities should be considered
such as student clubs, entrepreneurial talks, societies, awards and business plan competitions,
networking events between the industry and students. Essentially, the more activities which
can enhance students learning engagement outside the typical classroom, the higher the chances
of students to be ready for their entrepreneurial world.

Scholars have also looked into the importance of what makes an entrepreneur today and one of
the highlighted topics that an individual should have Entrepreneurial Intention (EI) (Zhang et
al., 2014). The purpose of their investigation is to analyze how EI and entrepreneurship
education is correlated. The study showed positive effect and negative effect on education on
EI on students, however neglects to show whether solely education without extra activities and
entrepreneurial efforts on students would show an increase in EI on them. As students who
showed negative signs of any EI from the entrepreneurship education as theoretical study on
entrepreneurship feared a few students when studying the consequences of entrepreneurship.

Pittaway et al., (2015) investigated more into the benefits of entrepreneurship clubs on the
students in combination with entrepreneurship education. The benefits of the clubs enable
individuals to enhance their verbal, written, networking and management abilities. The study
showed that educators believe that these clubs not only enhance student skills, yet it improves
self-confidence and motivation which is essential in the entrepreneurial world. Therefore, this
paper tends to analyse the influence beyond solely theoretical entrepreneurship education on
the mindset of students, whereas looking into how adding student entrepreneurship club
activities and method can also influence further the EI of students in HEIs.

2. Entrepreneurship
In the scholarly field, entrepreneurship originally is the core of management, it is how
businesses today came to be (Bylund & Packard, 2022). With the emergence of globalisation,
the meaning of entrepreneurship has modernised with various theories, natures, and
implications where scholars argue different sides to the concept of entrepreneurship. Lee et
al., (2016) highlights the major components of entrepreneurship, studies found how innovation
is the key factor of entrepreneurship growth and development. With new innovations, the
emergence of new markets, new products and services are available to consumers, thus
theorists constantly recommend the application and study of innovation to a business. Lindner,
(2018) defines the term entrepreneurship as the process of improving a concept and idea as
well as discovering business opportunities. With the main purpose of the business venture is
achieving profit from assembling available resource into valuable business opportunities
(Baporikar, 2017).

In a global aspect, entrepreneurship is one of the most important paths for economic
development and sustainability (Darwish et al., 2020). Failla et al., (2017) argues on the most
essential value of entrepreneurship and why it is heavily promoted and studied as it promotes

79
employability and stability. Baporikar (2017), discusses other values entrepreneurship brings
to an economy such as materials, resources, labour and competition.

Aykan et al., (2019) highlights the economic and social advancements where entrepreneurship
plays a key role, especially after the growth of globalization. Entrepreneurship promotes
various aspects in terms of a nation's economic development and prosperity, such as creating
employment opportunities, advocating innovation and technological advancement. Tur-Porcar
et al., (2018) analysed the value of entrepreneurship on the economic sustainability. The study
found that there are two factors affecting sustainable entrepreneurship such as business factors
and human relations, where business factors resulted to be more important. Ideally
entrepreneurs should create products and services for the social wellbeing yet still have the
goal to create profit. Therefore, Biberhofer et al., (2019) study focuses on more sustainability
driven entrepreneurship education is more beneficial for the economy. Incorporating the impact
of three aspects such as the environment, society, and economy. As a result, entrepreneurs
should establish a distinct sustainable-driven industry success.

3. Entrepreneurial Mindset
Integrating entrepreneurship in education is essentially used to influence entrepreneurial
mindset, Pittaway et al., (2011) explored the aspect of entrepreneurship learning at university
levels regarding extra-curriculum activities, such as entrepreneurship club. Study showed
through various interviews that students involved in such clubs learned more by “doing” and
student societies were essential elements in entrepreneurship education. Whereas, Cui et al.,
(2021) showed the positive impact of extracurricular activities on HEIs students on their
entrepreneurial mindset as this stimulates students to start their journey. The study also
revealed that students who were into both entrepreneurial academic learning combined with
extracurricular activity had a more positive impact. It was also discovered that more the
students in volved in student clubs the more it enhanced their entrepreneurial learning. As
“social learning” showed more acceptance by students as it related to experience and actions.
The authors found that student-led learning is recommended specifically to the instructors of
entrepreneurial academic learning and should be more correlated together. Adding both
informal and formal learning had a greater impact to students’ mindset than just separating
them. Furthermore, Pittaway et al., (2015) found the most common activities which enhanced
student’s social learning included competitions, speakers talks and networking events. Ndou et
al., (2018) investigated the strategies of entrepreneurship centers and their contribution to
entrepreneurship education in European countries. The found that these centers have helped
student enhance networking platform as well as build on their informal and formal learning.
The extra-curricular activities generated from the same universities or colleges ecosystem,
these activities included incubators, workshop, summer schools, business plan competitions,
forums as well as student let conferences.

4. Entrepreneurship in GCC and Oman

4.1 Gulf Cooperation Council

With regard to the Gulf Region, promoting entrepreneurship in HEIs have been more of a recent
influence in the past decade when they realized the dependency on oil and gas was a serious
concern (Miniaui & Schilirò, 2016). Entrepreneurship efforts have been pushed in most
countries across the GCC, however there are some countries more advanced than others, as
they all depend on the governmental support on entrepreneurship and the ecosystem they try

80
to build. SMEs showed to be a major representation of organizations across the GCC, however
the survival of these SMEs are not as stable due to the lack of knowledge of entrepreneurs in
the aspects of handling their business. the research paper showed that entrepreneurship skills
was needed to push more Gulf students to pursue their entrepreneurship career. Such skills
included mentoring which can be combined in the entrepreneurship education. (Gangi, 2017)
focused on entrepreneurship education in Qatar and how they have shaped future leaders. Qatar
University have focused more on training students via entrepreneurship centers rather than
focus on extracurricular activities. As the aim is fully prepare students on the expectations of
the entrepreneurship life.

4.2 Oman
Ibrahim et al., (2017) investigated the impact of entrepreneurship education on graduate
students among colleges and universities in Oman, which showed a positive impact. However,
the paper also showed that students would still rather work in private and governmental sectors
if they had the opportunity than to work for their own, as that is the cultural mindset on secured
job placement. The authors suggested that Omani colleges and universities are required to
strengthen and improve the entrepreneurship education by creating a stronger ecosystem.
Various colleges and universities amongst Oman started to later develop their own extra-
curricular activities to enhance the entrepreneurship mindset across students. Where some were
managed completely by student clubs, others with the collaboration of instructors. For example,
Nizwa College of Technology developed a Business Simulation Class project which was
completely run by students. In addition, other vocational training institutions and colleges
designed a Know About Business project where they would bring in young local entrepreneurs
to talk about their entrepreneurial journey (Yarahmadi & Magd, 2016). Belwal et al., (2015)
found the major problems to why Omani students are reluctant to start on their business
ventures. One of the issues included lack of confidence and support which is not invested
enough in entrepreneurship education. Therefore, it was suggested through student clubs this
issue can be avoided with workshop focusing on more “learning by doing”.

5. Governmental support in the GCC and Oman on entrepreneurship mindset

development

5.1 Governmental support in the GCC on entrepreneurship development

Saberi & Hamdan (2019) investigated the role of governmental support in the GCC region in
terms of entrepreneurship development to be generally high. As governmental support plays a
strong effect in regards to entrepreneurial success. Darwish et al., (2020) found that monetary
governmental support given to students in their educational level to ones who are eager to start
their business results many benefits in the long term as they have the skills and knowledge
from learning. In addition, building entrepreneurship incubators and accelerators to also
support the entrepreneurship mindset helps students grow (Syed et al., 2021).

After the COVID-19 Pandemic struck the GCC countries specially after lockdown, many
entrepreneurs were affected and resulted assistance from the government (Khan et al., 2021).
The paper highlighted various initiatives from different GCC countries on entrepreneurship
support. For example, Saudi Arabia increased the amount of contribution rate to SMEs from
20% to 35% of the GDP from their “2030 Vision” to facilitate in mainly funds and encourage
other financial institutions to distribute further loans to them. Where in Bahrain, the Cabinet
decided to increase public spending to the entrepreneurship sector. In the UAE, the Ministry

81
of Foreign Affairs hopes to increase and support the number of renewable sector businesses to
60% of the total entrepreneurship sectors.

5.2 Governmental support in Oman on entrepreneurship development

Shayah & Sun (2019) found certain policies in Oman such as the Omanisation policy was
correlated through certain approaches such as student preferences and industry allocations.
Emphasising on self-employment through entrepreneurship is major focal point which the
Omani government has investigated time and money on. However in Al-Abri et al., (2018)
paper showed that a single approach and support from the governments is not enough. Their
research showed that SMEs required support in terms of ease of regulations, more funds for
start up ideas and access of databases and technological advancments to assist them in their
market research. Therefore, in order for entrepreneurship developments to directly and
indirectly influence students mindest, the role of government support in a well developed and
rounded manner is essential. Al-Harthi (2017) study illustrated some governmental support
provided in Oman through the “Sanad Program” which helps entrepreneurs gain funds,
however the paper concluded that there is still a major need for governmental support in Oman,
more specifically in the financial aspect and logistical support as well.

6. Entrepreneurial mindset framework

After reviewing various research articles on the best practices to be used outside of the
classroom in order to develop and build an entrepreneurial mindset. Figure 1 below shows six
initiatives which assists in developing the mindest other than entrepreneurship business models
and theories. The framework is based on activities which the Modern College of Business in
Science in Oman has set for its students through the Center of Entrepreneurship and Business
Incubator (CEBI).

Figure 1: Initiatives and Practices in Building Entrepreneurial Mindset

6.1 Entrepreneurship Seminars

CEBI attempts to participate in various programs offered in the country’s entrepreneurship
ecosystem. A few highlighted events included: A seminar on Entrepreneurial Mindset &
Individual Capital Development, where a faculty representative was invited by an international
education institution to deliver a seminar titled “Entrepreneurial Mindset: Key Component of

82
Individual Capital. Furthermore, the center collaborated with a private company to develop
Business Center on campus, s this would facilitate incubation of student start-ups

6.2 International Entrepreneurship Webinar Series

One of the most popular events from the center is the International Entrepreneurship Webinar
Series. During the pandemic the center was limited to organize many entrepreneurship
initiatives due to the lockdown and ban on public events due to the raise in the number of
COVID cases. Hence, then came the idea of creating the Entrepreneurship Webinar series
online via Microsoft Teams platform. Where each semester, local and international
entrepreneurs were given the chance to talk about their real-life entrepreneurship journey to
Entrepreneurship Class, yet also the invitation was public to all parties interested in
entrepreneurship. The series gained great success and views as entrepreneurs from various
backgrounds were hosted. The center hosted almost 8 entrepreneurs in this platform since the
beginning of the pandemic and still ongoing even though restrictions are loosened.

6.3 International Engagement

The center also added value in offering its experience in the entrepreneurship education and
development globally. The college represented Oman at COSIMENA Digital Winter School
on Entrepreneurship: MCBS represented GCC region in the session titled “The Supporting
Role of Higher Education Institutions for Entrepreneurship” at COSIMENA Digital Winter
School on Entrepreneurship, organized under the patronage of DAAD (Deutscher
Akademischer Austauschdienst / German Academic Exchange Service), Egypt.

6.4 Entrepreneurship Club

Student members in the entrepreneurship club also are activities in their roles of promoting
entrepreneurship mindset in a formal and informal manners across the college. Other than their
regular member meetings where they discuss new activities and their interests in the topic, they
also come up with their own projects which are supported by the institution. For example, one
of the members in 2020 wanted to create an App Workshop: “iOS 14 Block Course”, which is
a 25-hour course over the period of two weeks taught by one of the members to any interested
students across the college. Furthermore, the Entrepreneurship Club students attempt to
participate in other inter-collegiate entrepreneurship competition every year. One of the club
initiatives is to encourage all members with innovative entrepreneurship ideas to participate in
other HEI competitions to learn from others and gain.

6.5 Entrepreneurship Digest

There are activities where both members from the center and club have worked together. These
projects include, organizing the college’s first ever innovative business competition online due
to the pandemic. The competitors participated from within the same college but also from other
HEIs in Oman. Other essential initiatives worked from both teams is the annual
Entrepreneurship Digest release. The Digest is a magazine released yearly from the center,
which talks about the most important updates in the entrepreneurship world as well interviews
with certain student entrepreneurs. In addition, it gives a platform for students to showcase
their highlighted events within and outside college on various projects undertaken to spread
entrepreneurship awareness.

83
6.6 Entrepreneurship Souk
Lastly, a popular event created by the club and center was called the “Entrepreneurship Souk
“event. The term “Souk” is the Arabic translation for the word “Market”. The event basically
provided a platform for student entrepreneurs to showcase and sell their products and service
for a whole day event. The event hosted businesses from various industries in the market and
resulted in other great networking opportunities. The center and the club want to continue this
event annually on campus, as they saw the great value it has added towards participants and its
surrounding.

7. Recommendations
Findings from this research paper found beneficial data and information where Oman’s
economy can adopt and implement to advance its entrepreneurship development. This includes
benchmarking entrepreneurial initiatives at the college and university levels from the GCC to
increase its rank. Also invest more funds and efforts from governmental aspects and having
more governmental ministries collaborate more activities on developing entrepreneurship
opportunities. Ease in opening for students to open their own entrepreneurship venture using
online platforms.

8. Implications
The study has several implications when it comes to two levels, firstly whether
entrepreneurship education is sufficient, secondly whether the effects of governmental support
in Oman is enough to develop entrepreneurship mindset. The literature globally highlighted
the importance of HEIs interfering in the non-academic entrepreneurial activities in order to
increase the level and also knowledge of entrepreneurship development for graduates, where
in Oman this point is considered to be lacking from the HEIs perspective. As for governmental
support, Oman compared to other GCC countries is ranked low in terms of governmental
initiatives towards entrepreneurship.

9. Conclusion
In conclusion, entrepreneurship education was the first step in developing entrepreneurial
mindset among students. However, studies showed HEIs providing extra attention on
entrepreneurship with adding the role of entrepreneurship centers and student club activities
have generated greater value in the enhancement of entrepreneurship mindset more than just
theory. Students were learning informally and more by “doing”. Networking events have
helped many students grow further in their small businesses. Education was not enough in
simply pushing through student’s entrepreneurship mindset, and that is where the role of
governmental supports in specific focus on students’ development stage is essential in order to
“kick-start” their innovative ideas into reality.

10. Limitations
The paper exhibits certain limitations to the research. Limited papers and research were found
based on local data and information. Nevertheless, a few papers were found on local
entrepreneurship development and reliable sources however further and updated details
required on the local aspect.

84
References
Al-Abri, M. Y., Rahim, A. A., & Hussain, N. H. (2018). Entrepreneurial Ecosystem: An
Exploration of the Entrepreneurship Model for SMEs in Sultanate of Oman. Mediterranean
Journal of Social Sciences, 9(6), 193–206. https://doi.org/10.2478/mjss-2018-0175
Al-Harthi, A. S. A. (2017). Understanding entrepreneurship through the experiences of Omani
entrepreneurs: Implications for entrepreneurship education. Journal of Developmental
Entrepreneurship, 22(1), 1–20. https://doi.org/10.1142/S1084946717500017
Aykan, E., Karakuş, G., & Karakoç, H. (2019). The effect of university students’ individual
innovation and lifelong learning trends on entrepreneurship orientation. Sustainability
(Switzerland), 11(22), 1–16. https://doi.org/10.3390/su11226201
Baporikar, N. (2017). Critical review of entrepreneurship in Oman. Entrepreneurship and Business
Innovation in the Middle East, January 2017, 147–174. https://doi.org/10.4018/978-1-5225-
2066-5.ch008
Belwal, R., Al Balushi, H., & Belwal, S. (2015). Students’ perception of entrepreneurship and
enterprise education in Oman. Education and Training, 57(8–9), 924–947.
https://doi.org/10.1108/ET-12-2014-0149
Biberhofer, P., Lintner, C., Bernhardt, J., & Rieckmann, M. (2019). Facilitating work performance
of sustainability-driven entrepreneurs through higher education: The relevance of
competencies, values, worldviews and opportunities. International Journal of
Entrepreneurship and Innovation, 20(1), 21–38. https://doi.org/10.1177/1465750318755881
Bylund, P. L., & Packard, M. D. (2022). Subjective value in entrepreneurship. Small Business
Economics, 58(3), 1243–1260. https://doi.org/10.1007/s11187-021-00451-2
Cui, J., Sun, J., & Bell, R. (2021). The impact of entrepreneurship education on the entrepreneurial
mindset of college students in China: The mediating role of inspiration and the role of
educational attributes. International Journal of Management Education, 19(1).
https://doi.org/10.1016/j.ijme.2019.04.001
Darwish, S., Raman, R., Gomes, A. M., & Nawaz, N. (2020). Entrepreneurship ecosystem in GCC
and India: A perspective. Journal of Statistics Applications and Probability, 9(2), 245–256.
https://doi.org/10.18576/jsap/090205
Failla, V., Melillo, F., & Reichstein, T. (2017). Entrepreneurship and employment stability — Job
matching, labour market value, and personal commitment. Journal of Business Venturing,
32(2), 162–177. https://doi.org/10.1016/j.jbusvent.2017.01.002
Gangi, Y. A. (2017). The role of entrepreneurship education and training on creation of the
knowledge economy. World Journal of Entrepreneurship, Management and Sustainable
Development, 13(4), 375–388. https://doi.org/10.1108/wjemsd-06-2017-0032
Ibrahim, O. A., Devesh, S., & Ubaidullah, V. (2017). Implication of attitude of graduate students
in Oman towards entrepreneurship: an empirical study. Journal of Global Entrepreneurship
Research, 7(1), 1–17. https://doi.org/10.1186/s40497-017-0066-2
Khan, M. A. I., Azharuddin, S., Khan, S. S., & ... (2021). Influence of Entrepreneur Traits on
SME’s Financial Performance: Case Study of GCC Entrepreneurs Who Survived during
COVID-19. International Journal Of …, 7(February), 651–660.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3778947
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant
performance: A higher-order structural model. Tourism Management, 53, 215–228.
https://doi.org/10.1016/j.tourman.2015.09.017

85
Lindner, J. (2018). Entrepreneurship Education for a Sustainable Future. Discourse and
Communication for Sustainable Education, 9(1), 115–127. https://doi.org/10.2478/dcse-
2018-0009
Marin, A., Boanță, L. F., Țelinoiu, A., Darie, G., & Din, M. A. (2019). Supporting Entrepreneurship
and Innovation in Higher Education in Romania. In ICERI2018 Proceedings (Vol. 1).
https://doi.org/10.21125/iceri.2018.0844
Miniaui, H., & Schilirò, D. (2016). Innovation and Entrepreneurship for the growth and
diversification of the GCC Economies. Munich Personal RePEc Archive, 71898, 1–26.
Ndou, V., Secundo, G., Schiuma, G., & Passiante, G. (2018). Insights for shaping Entrepreneurship
Education: Evidence from the European Entrepreneurship centers. Sustainability
(Switzerland), 10(11). https://doi.org/10.3390/su10114323
Pittaway, L. A., Gazzard, J., Shore, A., & Williamson, T. (2015). Student clubs: experiences in
entrepreneurial learning. Entrepreneurship and Regional Development, 27(3–4), 127–153.
https://doi.org/10.1080/08985626.2015.1014865
Pittaway, L., Rodriguez-Falcon, E., Aiyegbayo, O., & King, A. (2011). The role of
entrepreneurship clubs and societies in entrepreneurial learning. International Small Business
Journal, 29(1), 37–57. https://doi.org/10.1177/0266242610369876
Saberi, M., & Hamdan, A. (2019). The moderating role of governmental support in the relationship
between entrepreneurship and economic growth: A study on the GCC countries. Journal of
Entrepreneurship in Emerging Economies, 11(2), 200–216. https://doi.org/10.1108/JEEE-10-
2017-0072
Shayah, M. H., & Sun, Z. (2019). Employment in the Gulf Cooperation Council (GCC) Countries
– Current Issues and Future Trends. January 2019. https://doi.org/10.2991/ssphe-18.2019.94
Tur-Porcar, A., Roig-Tierno, N., & Mestre, A. L. (2018). Factors affecting entrepreneurship and
business sustainability. Sustainability (Switzerland), 10(2), 1–12.
https://doi.org/10.3390/su10020452
Walter, S., & Block, J. (2016). Outcomes of Entrepreneurship Education: An Institutional
Perspective. Journal of Business Venturing, 53(9), 1689–1699.
https://doi.org/10.1017/CBO9781107415324.004
Yarahmadi, F., & Magd, H. A. E. (2016). Entrepreneurship Infrastructure and Education in Oman.
Procedia - Social and Behavioral Sciences, 219, 792–797.
https://doi.org/10.1016/j.sbspro.2016.05.079
Zhang, Y., Duysters, G., & Cloodt, M. (2014). The role of entrepreneurship education as a predictor
of university students’ entrepreneurial intention. International Entrepreneurship and
Management Journal, 10(3), 623–641. https://doi.org/10.1007/s11365-012-0246-z

86
 Chapter 9

Political Skills and Entrepreneurial Intention

Ujjal Bhuyan*
Assistant Professor, Department of commerce,
Jagannath Barooah College, Jorhat, Assam
Email: [email protected]

Hesham Magd (PhD)

Associate Dean & Head, Faculty of Business & Economics,
Modern College of Business and Science, Oman
Email: [email protected]

Shad Ahmad Khan (PhD)

Assistant Professor, College of Business,
University of Buraimi, Oman
Email: [email protected]

Ibrahim Rashid Al Shamsi (PhD)

Dean, College of Business,
University of Buraimi, Oman
Email: [email protected]

*Corresponding author

Abstract
Prominent entrepreneurial theories such as Theory of Planned behavior and Theory of
Reasoned Action, embrace the antecedent role of entrepreneurial intent in directing behaviour
towards entrepreneurship. Entrepreneurs make deliberate, planned choices that result in
formation of new ventures. This linkage piques the interest of researchers in digging up factors
influencing entrepreneurial intent. Political skill is one such factor that instills confidence in
the person, which can be harnessed to advance through the entrepreneurial process from
intention to creation of new venture. It can be defined as the ability to understand people at
work and use such insights to persuade others to behave in ways that further their personal
and/or organizational objectives. Political skills have four important dimensions: social
astuteness, interpersonal influence, networking ability and apparent sincerity. Role of
emotional intelligence is also made more effective by one’s political skills. The former helps
in recognizing and regulating the affective state of self as well as of others, whereas the latter
helps in acting upon such state in a constructive manner. The objective of the paper is to gauge
the effect of political skills on entrepreneurial intent. Based on the previous research, political
skill is expected to have a positive effect on one’s inclination towards entrepreneurship.

Keywords: Entrepreneurship, political skills, entrepreneurial intention, emotional intelligence,

Entrepreneurial process

87
1. Introduction
Entrepreneurship plays a pivotal role in the economic transformation and progress of a nation
sustainability. In the process of industrialization and economic expansion, entrepreneurs act as
catalysts. Policymakers across the globe are taking various initiatives to foster entrepreneurship
growth owing to its impact on economic development. However, growth in entrepreneurship
is not at a desired level in developing economies as compared to developed ones. One
prominent factor behind such sluggish growth is the of lack of entrepreneurial intent.
Entrepreneurial intent has a significant impact on an individual’s desire to engage in
entrepreneurial activities. Entrepreneurial intention refers to an entrepreneur's subjective
thought and psychological state prior to engaging in entrepreneurial activities (Hou et al. 2019).

Prominent entrepreneurial theories such as Theory of Planned behavior and Theory of

Reasoned Action, embrace the antecedent role of entrepreneurial intent in directing behavior
towards entrepreneurship. The theory of Planned behavior, proposed by Icek Ajzen in 1985,
states that an individual’s desire or propensity to engage in a particular behavior is influenced
by his intention to perform such intended behavior. The theory postulated three components of
behavioral intention: attitude, subjected norms, and perceived behavioral control. Political skill
has a significant role to play in enhancing the perceived behavioral control experienced by an
individual. Entrepreneurs make deliberate, planned choices that result in formation of new
ventures. This linkage piques the interest of researchers in digging up factors influencing
entrepreneurial intent.

Political skill is one such factor that instills confidence in the person, which can be harnessed
to advance through the entrepreneurial process from intention to creation of new venture. It can
be defined as the ability to comprehend people’s affective state and leverage such insights to
persuade others to behave in ways that further their personal goals. Political skills can be
associated positively to an individual’s impression management behavior. Impression
management reflects individuals’ ability to form impression on others based on their conduct,
motive, integrity, and other traits (Lopes & Fletcher 2004). Political skills also enhance the
effectiveness of the impression management tactics employed by individuals at work or other
social surroundings (Harris et. al 2007). Owing to their ability to understand others and self
and their networking abilities, politically skilled individuals are access to valuable resources
such as knowledge of opportunities, financial capital, human capital etc. possessed by people
in their social networks (social capital). This makes their intention as well as their capability to
start a new venture.
The authors intend to highlight the association between political skills and entrepreneurial
intention. This linkage between the two concepts would prove invaluable in determining the
level of entrepreneurial activity, particularly in emerging economies around the world and
provide a plausible explanation to failure in achieving the desired outcome of various
government initiatives to foster entrepreneurial growth. The association between political skill
and entrepreneurial self-efficacy is also intended to be gauged upon in this chapter.

2. Definition on political skills: An Understanding

It’s imperative to offer the readers an understanding of the meaning of Political skills. Ahearn
et al. 2004 and Ferres et al 2007 defined political skill as “The ability to effectively understand
others at work and to use such knowledge to influence others to act in ways that enhance one’s
personal and/or organizational objectives”. Moreover, Nurhayatia et al. 2017 defines political
skill as the combination of social intelligence and the ability to adjust their behavior to

88
situational demands which is sometimes different and changing in a way that seems sincere,
inspiring support and trust, and effective influence and control the response of others.
Furthermore, Chelagat & Korir 2017 defined “Political skill is characterized by social
perceptiveness and the ability to adjust one’s behavior to different and changing situational
needs, to influence others”

The concept of political skill is often interchangeably used as the notion of emotional
intelligence. In fact, the latter can be considered as the subset of the former. Emotional
intelligence defined by Salovey & Mayer (1989-90) as “ability to monitor one's own and
others’ feelings and emotions, to discriminate among them and to use this information to guide
one's thinking and actions”. By this definition, emotional intelligence refers caters to the
individual’s capability to recognize and regulate the affective state of self as well as of others.
This basically serves as the foundation for action, which can be termed as political skills. The
components of Political skills pay heed to an individual’s persuasive ability (Davis and Peake
2014).

3. Dimensions of political skills

Political skills are categorized in four dimensions:
i. Social astuteness: Individual’s ability to comprehend a given situation quickly and at
the same time looking for ways to take advantage from it. It indicates sensitivity to others.
Individuals high on social astuteness are more self-aware and could accurately perceive
other’s behavior in social situations. Socially adept individuals are seen to be more
intuitive and cleverer in their interactions with others at work or any social situations.
ii. Interpersonal influence: Individuals who are politically skilled exhibit nuanced and
persuasive approach with intent to exert influence over those surrounding them. They
also demonstrate their capacity to fine-tune their conduct to meet the circumstances, to
attain their desired outcomes.
iii. Networking ability: Individual’s ability to establish and maintain ties and relationships
with others is referred to as networking ability. Individuals in such relationships are more
likely to possess resources that are valuable and necessary for social and professional
success. Those high on networking ability are found to be more competent at negotiations
and dispute resolutions.
iv. Apparent sincerity: This aspect of political skill is of paramount importance, as it
determines the success of an individual’s interpersonal influence. Politically skilled
people are often seen as possessing high degrees of honesty, integrity, genuineness, and
veracity, with no hidden motive. This would elicit faith and credibility from people
around them.

4. Political skills and entrepreneurial intent

Previous researchers (Lux 2005, Phipps et al. 2015, Tsetim et. al 2021) have found a strong
positive association between political skills of an individual and their inclination towards
entrepreneurial activities. Politically adept people have a higher feeling of self-assurance and
individual security because they believe they have more influence over the actions in their
social environment. Experience of control also stems from their favorable self-evaluation, as
an outcome of the feedbacks gathered from their various social encounters (Ferris et al. 2007).
Such confidence and security go a long way in attracting others towards those with high
political skills as they perceive a sense of comfort and security (Ferris et al. 2005). Politically

89
skilled individuals are also capable of displaying emotion when it is required, as well as
refraining from doing so when it is thought unsuitable.

This boosts their intention to start a new venture, which is backed up their confidence to exert
strong interpersonal influence on those surrounding them (Davis and Peake 2014). Politically
skilled individuals use their social astuteness in designing ways to effectively exert influence
over others and present themselves in the best possible manner, which can be seen as the
desired behavior in context to a particular situation (Ferris et al. 2007). Their ability to present
themselves in the one who can be trusted, who is genuine and the one, who has no ulterior
motive, strengthens their interpersonal influence (Wihler, A. et al. (2016). This would elicit
faith and credibility from people around them. Also, their ability to form and maintain
relationships and ties with others provides them access to valuable resources in possession of
those in their networks.

For success of any entrepreneurial venture, social capital or networking role is pivotal, in
addition to other forms of capital such as human capital, financial capital etc. Individuals with
political skills have a positive social identity, which leads to major and real advantages such as
favorable responses to their ideas, improved access to vital information, and greater
collaboration and trustworthiness. (Baron & Markman, 2000). Prowess in political skills
positively contributes to enhancing one’s social capital (Huang 2017). Importance of political
skills also lies in its relationship with self-efficacy.

Self-efficacy can be defined as “a person’s own judgment of capabilities to perform a certain

activity in order to attain a certain outcome” (Zulkosky 2009). It is considered as an important
antecedent to entrepreneurial intention i.e., those who have higher level of self-efficacy are
more inclined towards engaging in entrepreneurial activities (Pihie 2013 and Saraih, U.N. et
al. 2018). Politically skilled individuals exhibit higher levels of self-efficacy. Previous studies
have found that self-efficacy is positively related to all the four elements (social astuteness,
networking ability, interpersonal influence, and apparent sincerity) of political skills (Geyer
2014 and Bozbayındır & Alev 2019). Political skills thus act as a critical skill potential for
entrepreneurs to possess and master to increase their confidence about starting a business.

5. Discussion & Conclusion

The chapter sheds light on the importance of political skills in fostering entrepreneurial intent
among individuals, with an intended outcome on positive entrepreneurial growth. An
individual with prowess in political skill i.e., ability to quickly and effectively comprehend
social cues (social astuteness), establish and maintain relationships (networking ability) and
exert influence over other in a manner to achieve intended goals (interpersonal influence),
while maintaining apparent sincerity in their actions, are far more equipped and motivated to
engage in entrepreneurial activities. Political skills significant and positive association with
boosting self-confidence and self-efficacy, further strengthens its linkage with entrepreneurial
intent. Moreover, an individual’s level of political skills determines to a great extent on
effectiveness of his impression management tactics.

6. Future Research Prospects

As emerging economies offer a growing market base, the role of entrepreneurship will become
more important in seizing these opportunities. As entrepreneurial intent has a significant role
to play in shaping an individual’s entrepreneurial behavior, a study in determining the prowess

90
in political skills among college and university graduates would prove to be insightful.
However, limited study in this domain has been found in the emerging economies of the world
such as India. Also, researchers could shed light on the impact of political skills on enhancing
an individual’s social networks, improving effectiveness of his impression management tactics
and his innovative capability.

References
Ahearn, K.K., Ferris, G., Hochwarter, W., Douglas, C. and Ammeter, A. (2004). Leader political
skill and team performance. Journal of Management, volume 30, no. 3, pp. 309-327.
Baron, R. & Markman, G. (2000). Beyond social capital: How social skills can enhance
entrepreneurs' success. Academy of Management Executive, volume 14 no.1, pp.106-114.
Bozbayındır, F. and Alev, S. (2019). An Analysis of the Relationship between the General Self-
efficacy Perceptions of Teachers and Their Political Skill Levels. International Journal of
Progressive Education, Volume 15 no. 2, pp. 65-73.
Chelagat, L.J. & Korir, M.K. 2017. Effect of employee political skills, organizational citizenship
behaviour strategy on affective commitment in Kenyan public universities. International
Journal of Economics, Commerce and Management, volume 5 no.4, pp.29-42.
Davis, P.E. & Peake, W.O. (2014). The Influence of Political Skill and Emotional Intelligence on
Student Entrepreneurial Intentions: An Empirical Analysis. Small Business Institute®
Journal, volume 10 no. 2, pp.19-34.
Ferris, G.R., Treadway, D., Perrewe, P. and Brouer, R.(2007). Political skills in organisations.
Journal of Management, volume 33, no.3, pp.290-320.
Geyer, P. (2014). Political Skill and Self – Efficacy Among College Students. Researchers World-
Journal of Arts, Science & Commerce, Volume V Issue 3, pp.11-15.
Harris, K.J., Zivnuska, S., Shaw, J. and Kacmar, K.(2007). The impact of political skill on
effectiveness. Journal of Applied Psychology, volume 92 no.1, pp. 278-285.
Huang, K. (2017). Entrepreneurial Education: The Effect of Entrepreneurial Political Skill on
Social Network, Tacit Knowledge, and Innovation Capability. EURASIA Journal of
Mathematics Science and Technology Education, volume 13 no.8, pp.5061-5072.
Hou, F., Su, Y. and Lu, M.(2019). Model of the entrepreneurial intention of University students in
the Pearl River delta of China. Frontiers in Psychology, volume10, pp.1-16.
Lopes, J. & Fletcher, C. (2004). Fairness of impression management in employment interviews: A
cross-country study of the role of equity and Machiavellianism. Social behavior and
Personality, volume 32 no. 8, pp.747-768.
Lux, S. (2005). Entrepreneur social competence and capital: the social networks of politically
skilled entrepreneurs. Academy of Management, volume 1, pp.1-6.
Nurhayatia, M., Thoyib, A. and Noermijati, N.(2017). The role of political skills for organizational
commitment. International Journal of Economic Perspectives, volume 11 no.4, pp.493-498.
Pihie, Z. and Bagheri, A. (2013). Self efficacy and entrepreneurial intention: the mediation effect
of Self regulation. Vocations and Learning, Volume 6, pp. 385-401.
Phipps, S. & Prieto, L. (2015). Politicking and entrepreneurship: Determining the critical political
skill dimensions for high entrepreneurial intentions, volume 21, pp. 73-86.
Salovey, P. & Mayer, J.D. (1989-90). Emotional Intelligence. Imagination, Cognition and
Personality, volume 9 no.3, pp.185-211.

91
Saraih, U.N. , Aris, A. , Mutalib, S., Ahmad, T., Abdullah, S. and Amlus, H. (2018). The Influence
of Self-Efficacy on Entrepreneurial Intention among Engineering Students. MATEC Web
of Conferences 150, 05051.
Tsetim, J., Adegbe, O. and Anthony, Y.(2021). Political Skill and Entrepreneurial Intention of
Fresh Graduates in Nigeria. Journal of Research in Business and Management, volume 9
no.6, pp.5-12.
Wihler, A., Frieder, R., Blickle, G., Oerder, k. and Schutte, N.(2016). Political skill, leadership and
performance: the role of vision identification and articulation. Handbook of Organizational
Politics: Looking Back and to the Future.
Zulkosky, K. (2009). Self-efficacy: A concept analysis. Nursing Forum, Volume 44, no. 2, pp. 93-
101.

92
 Chapter 10

Role of Tertiary Educational Institutions to Address the

Challenges Faced by Entrepreneurs
Dipan Pradhan
Senior Lecturers, Norbuling Rigter College
Royal University of Bhutan
Namrata Pradhan*
Senior Lecturers, Norbuling Rigter College
Royal University of Bhutan
Email: [email protected]

*Corresponding Author

Abstract
This paper explores the role of tertiary educational institutions, in building a successful
entrepreneurial ecosystem by understanding the needs of the entrepreneurs, and proposing
assistance in the form of short courses, expert advice, by helping develop the knowledge of the
entrepreneurs with the resources available in the institutions. This paper also proposes
collaboration with business entities so that students receive enriching opportunities to work as
interns and learn from their businesses.

Keywords: Entrepreneurship, Entrepreneurs, Tertiary Educational Institutions, Capacity

development need

1. Background
Educational institutions are recognized as the apex body of knowledge where people come to
learn and enhance their purview of understanding, and doing things more efficiently and
effectively. Tertiary Educational Institutions open up opportunities to have access to tools,
techniques, and relevant study materials and a huge treasure of resources including linkages
with subject experts. The collaborations and linkages established by Tertiary Educational
Institutions in turn helps students to equip themselves with relevant knowledge and opportunity
to gain access to job market, or in case of a working professionals, it helps them get to the next
level and enjoy better benefits of all. Tertiary Educational Institutions can play significant role
in addressing the challenges faced by entrepreneurs who opens up opportunities for new
employment and consequently contribute to the socio-economic development of the Country.

Thus, this paper explores the issues faced by Cottage and Small Industry (CSI) entrepreneurs.
The basis for choosing CSI as subject of this study is influenced by the fact that CSIs account
for about 95 percent of the total industries in Bhutan. According to the DCSI Annual Report
(2020-2021, p.2) there are 20,582 active licensed CSIs in the country generating more than
90,000 plus employment as of June 2021.

This paper explores to understand the need of the practicing Entrepreneurs and future
entrepreneurs in the cottage and small industry and also recommends ways in which tertiary

93
educational institutions can collaborate and render support to address the challenges faced by
entrepreneurs and bridge the gap experienced by the entrepreneurs.

This study adopted a qualitative approach, specifically, the need assessment of the
Entrepreneurs registered in BAEYUL (Bhutan Association of Entrepreneurs) that represents
the entrepreneurs of Bhutan. A survey questionnaire was administered on 200 registered
entrepreneurs. The questionnaire was shared through their Facebook page. Out of the 200
registered entrepreneurs, only 150 were active in their forum, and from these, only 52
entrepreneurs responded to the survey. The confidence level of this sample size is 95% at
confidence interval of 11.19. The qualitative research method is more suitable for exploratory
research where it seeks to unearth the opinions, perception and feelings of the respondents.

2. Literature Review
Higher Education Institutions (HEIs) and, in particular, universities play a well-established role
as key agents in creating and promoting regional economic growth and competitiveness
(Audretsch, Lehmann, and Hülsbeck 2012; Lehmann 2015; Bonaccorsi et al. 2013; Pinheiro,
Langa, and Pausits 2015). Higher Education institutions are regarded as the custodians of
knowledge in society and play a significant role in developing a nation by contributing to
entrepreneurship development and by building the capacity of inspiring individuals to identify
business opportunities, take calculated risks and finally launch a new venture.

Entrepreneurship is instrumental for economic progress of a nation. Therefore, it is recognized

as the engine of individual and society which positively influences the general growth of
economies (Gorman et al., 1997; Navarro et al., 2009). A study conducted by Reynolds et al.
(1999) indicates that countries with higher rates of entrepreneurial activities have higher levels
of employment. This is largely because new products or services are more likely to be created
when more entrepreneurs exist. When more products or services are offered, more work forces
are certainly needed, and this directly generates more new jobs and reduces the problem of
unemployment (Sergeant and Crawford, 2001). In Bhutan although the idea of
entrepreneurship might have come as early as the 1990s to advocate cottage industries and
SMEs in the country, however, entrepreneurship as an independent program started only from
2009, with the Ministry of Labor and Human Resources introducing its first Basic
Entrepreneurship Course (BEC) and Advanced Entrepreneurship Course (AEC). The former
was meant for youth between the ages of 18 and 29 with a class XII qualification, whereas the
latter was aimed at youths with a bachelor's degree. New trends of globalization, global
competition, social development, corporate downsizing, and the emergence of knowledge-
based economy have forced attention towards entrepreneurship. Despite this, Bhutan as a
young and growing economy, similar to many cultures in South and East Asia, has had a distinct
preference for a service job that provides economic security and some societal privileges. From
an early age, a child is exposed to this kind of pro-service culture. They grow up with a job-
oriented mindset and seldom think of entrepreneurship as a career – in many cases
entrepreneurship is considered a last resort for those unable to obtain a job. According to the
Unemployed Youth Perception Survey 2014 Report, the education system rarely exposes
students to entrepreneurship and instead prepares them for a job – imparting skills and
knowledge for jobs matched against economic and labor forecasts. (MoLHR; 2014 ). Even if
someone with a high entrepreneurial aptitude wants to set up a business, the potential
entrepreneur is often discouraged by a host of adverse factors, some of which are:

94
 ● lack of access to information on setting up and operating a business;
● the sheer scale of administrative and procedural hurdles;
● limited access to capital and funds;
● inability to scale up enterprises (growth-oriented capital and resources);
● lack of adequate networks and supportive culture;
● lack of mentoring support and training;
● access to technology;
● social stigma of sin, fear, and consequences of failure.
(National Entrepreneurship Strategy (Bhutan) – Version March 2015)

With the changing global scenario, Bhutan must initiate startups to act as a catalyst for socio-
economic development and transformation. The Tertiary Educational Institutions can play a
vital role, by encouraging an immersive teaching-learning environment that challenges the
young minds to be innovative and risk taking, creating a bright generation of youths who are
innovators, entrepreneurs, and efficient global workforce. Tertiary Educational Institutions can
offer Entrepreneurship Education (EE) to develop or strengthen the entrepreneurial traits,
attitudes, and skills (Bae et al. 2014; Fayolle, Gailly, and Lassas-Clerc 2006) of students.
Elsewhere, Entrepreneurship Education (EE) has emerged as a broad set adopted by
educational institutions and is stimulated by policymakers in response to the widespread belief
that entrepreneurship acts as an engine for economic prosperity (Laukkanen 2000; Shah and
Pahnke 2014). Thus, universities, in particular, are challenged to prepare students for the labor
market where the ability to behave and think in an entrepreneurial and proactive way is a key
driver of success (Audretsch 2014; Urbano and Guerrero 2013). Building on the conceptual
arguments of Politis (2005), entrepreneurial learning is regarded as the key process through
which students develop the entrepreneurial knowledge that facilitates them to identify and act
upon entrepreneurial opportunities.

Neck and Greene (2011) and Souitaris, Zerbinati, and Al-Laham (2007) underscores that
Entrepreneurial knowledge is a multidimensional concept which includes the understanding of
actions to start a business, and of typical attitudes, values, and motivation of entrepreneurs, as
well as the development of practical skills, abilities, and resources to identify an opportunity
and act upon it. Similarly, entrepreneurship is not confined to economic activities and the
creation of start-ups, it embraces other areas of life like stimulating students to think creatively
and aspiringly. In Bhutan, as in many other parts of the world, startups are getting attention in
recent years. Their numbers are on the rise and they are now being widely recognized as
important engines for growth and job creation. The paper “Role of Universities and other
institutions in successful entrepreneurship: some insights from a literature review” (Larios-
Meono, 2015) provides strong evidence that Universities are instrumental in creation, design
and implementation of entrepreneurial initiative by providing new and ongoing entrepreneurs
with human capital training and fundamental, theoretical and empirical models to contribute to
lasting businesses.

3. Findings and Analysis

Out of the 52 respondents, around 45% were male and 55 % were female. Amongst them the
maximum number of entrepreneurs were graduates (46%), followed by class 10 and 12
dropouts (28%) and entrepreneurs with master degrees (22%). 4% of the entrepreneurs were
primary school, lower secondary school dropouts and without education.

95
The study findings also show that only 55% of the respondents had attended some training
before they became entrepreneurs. The study shows that 55% of the entrepreneurs started their
business with the help of their parents and relatives while 25.5% started with a loan from the
banks and 19.6% had availed government support and schemes. From the 52 entrepreneurs,
82% of the businesses were on sole proprietorship and 18% were on partnership. With regard
to lifecycle of business entities, the study shows that 32% of the businesses were between 1-3
years old followed by 22% of the businesses which were just established, 16% of the businesses
were between 3-5 years, 14% between 5-10 years and only 8% were more than 10-year-old.

Interestingly, as the number of years in business increased, the number of entrepreneurs

decreased. This was mainly caused by the need for capacity development support. In this
regard, 56% of the entrepreneurs expressed their interest to receive capacity development on
business operations. For 65% their capacity development needs were in marketing while it was
HR management for 15%, finance management for 63% digital marketing for 67% branding
for 62%, and product development for 56%.

Generally, 79% of the entrepreneurs were facing issues with regards to financial management,
41.2% were struggling to retain their customers, 49% were struggling with marketing, 29.4%
were struggling with employee hiring and retention, and 37.3% were struggling to identify and
learn the best business strategy for them.

Further, when asked if they are doing anything currently to address these issues, 67.3% were
taking some courses and 12.2% were referring to YouTube to learn while 20.4% had not at all
thought about upgrading themselves. Overall, 60% of the entrepreneurs were interested to
relearn entrepreneurial knowledge and skills. Specifically, 67% of the entrepreneurs expressed
readiness to attend talks by relevant experts, 62% reported willingness to attend workshops
while 58% expressed interest to attend conferences. This is where the Tertiary Educational
Institutions can play a detrimental role to support entrepreneurs.

4. Conclusion and Recommendation

The study findings as well as literature point to the need of the Tertiary Educational
Institutions to collaborate and contribute to capacity development of the entrepreneurs. The
capacity development needs are mainly in the areas of:
1. financial management
2. HR management,
3. Business strategy,
4. Product Development, and
5. business operations.
These topics can be delivered through training, workshop and conference modes. Further, the
Tertiary Educational Institutions can also contribute to the business idea evaluation stage of the
entrepreneurs by guiding them with relevant research data in the idea generation stage. This
will empower the entrepreneurs to succeed in their entrepreneurship journey, when the
entrepreneur feels the need to build on more capacity for growth. The Tertiary Educational
institutions can also support the entrepreneurs at a later stage with capacity development on
diversification of its company.

Tertiary Educational Institutions can also explore opportunities to collaborate with business
entities to enable students to be engaged as an intern and gain practical industry knowledge.

96
Forbes magazine reports that 37%of unpaid internships and 68% of paid interns got a job offer
after graduation (Adams, 2012). Tertiary Educational Institutions should also facilitate their
students to take up internships under the startups, as part of their classwork as this initiative
will create a professionally enriching relationship between the business world and academia.
Such collaborations, if pursued seriously, will benefit both business entities and educational
institutions. This collaboration will also help startups in the industry as it is labor cost efficient.
Further, the Startups will benefit from access to a reservoir of knowledge in the institutions.
Thus, recognizing this benefit, it is vital to advocate and encourage the Tertiary Educational
Institutions to play a role in initiating programs that will address the challenges faced by the
entrepreneurs.

References
Adams. S (2012): “Odds You Are your Internship Will Get You A Job”: Forbes.
https://www.forbes.com/sites/susanadams/2012/07/25/odds-are-your-internship-will-
get-you-a-job/?sh=12c31c362e5b
Audretsch, D. B. 2014. “From the Entrepreneurial University to the University for the
Entrepreneurial Society.” The Journal of Technology Transfer 39 (3): 313–321
Bae, T. J., S. Qian, C. Miao, and J. Fiet. 2014. “The Relationship Between Entrepreneurship
Education and Entrepreneurial Intentions: A Meta-analytic Review.” Entrepreneurship
Theory and Practice 38 (2): 217–254
Bonaccorsi, A., M. G. Colombo, M. Guerini, and C. Rossi-Lamastra. 2013. “University
Specialization and New Firm Creation Across Industries.” Small Business Economics 41
(4): 837–863.
Davide Hahn, 2020. "The psychological well-being of student entrepreneurs: a social identity
perspective," International Entrepreneurship and Management Journal, Springer, vol.
16(2), pages 467-499, June.
Fayolle, A., B. Gailly, and N. Lassas-Clerc. 2006. “Assessing the Impact of Entrepreneurship
Education Programmes: A New Methodology.” Journal of European Industrial Training
30 (9): 701–720.
Gorman, G., Hanlon, D. & King, W. (1997). Some research perspectives on entrepreneurship
education, enterprise education and education for small business management: A ten-
year literature review. International Small Business Journal,15(3): 56-77.
Laukkanen, M. 2000. “Exploring Alternative Approaches in High-level Entrepreneurship
Education: Creating Micromechanisms for Endogenous Regional Growth.”
Entrepreneurship and Regional Development 12 (1): 25–47
Lehmann, E. E. 2015. “The role of universities for local and regional competitiveness.” In The
Oxford Handbook of Local Competitiveness, edited by David B. Audretsch, Albert N.
Link, and Mary L. Walshok, 211–236. New York: Oxford University Press.
Navarro, M. M., Iglesias, M. P. & Torres, P. R. (2009). Curricular profile of university
graduates versus business demands. Education and Training 5(1): 56-69.
Neck, H. M. , and P. G. Greene . 2011. “Entrepreneurship Education: Known Worlds and New
Frontiers.” Journal of Small Business Management 49 (1): 55–
70.10.1111/jsbm.2011.49.issue-1

97
Pinheiro, R., P. V. Langa, and A. Pausits. 2015. “One and Two Equals Three? The Third
Mission of Higher Education Institutions.” European Journal of Higher Education 5 (3):
233–249.
Politis, D. 2005. “The Process of Entrepreneurial Learning: A Conceptual Framework.”
Entrepreneurship Theory and Practice 29 (4): 399–424.10.1111/etap.2005.29.issue-4
National Entrepreneurship Strategy (Bhutan) – Entrepreneurship development in Creative
Industries (CIs) to support the productive sector impacting on community-based tourism
for job creation and poverty reduction (Phase 2) Version March (2015): 6-7
Reynolds et al. (1999). “Global Entrepreneurship Monitor:1999 Executive Report”: 32-33
Sergeant, J. & Crawford, J. (2001). National Youth Entrepreneurship Attitude Survey.
Canberra, Department of Industry, Science and Resources Emerging Industries Section
Shah, S. K., and E. C. Pahnke. 2014. “Parting the Ivory Curtain: Understanding How
Universities Support a Diverse Set of Startups.” The Journal of Technology Transfer 39
(5): 780–792.
Souitaris, V. , S. Zerbinati , and A. Al-Laham . 2007. “Do Entrepreneurship Programmes Raise
Entrepreneurial Intention of Science and Engineering Students? The Effect of Learning,
Inspiration and Resources.” Journal of Business Venturing 22 (4): 566–591.
Taimur K. (2014).” Results and Analysis of the Perception Survey: Unemployed Youth of
Bhutan” Unemployed Youth Perception Report: 29-30
Tenzin U.(2018). An Empirical Assessment of Entrepreneurial Intentions amongst University
Graduates in Bhutan: Labour Market Information and Research Division Department of
Employment and Human Resources Ministry of Labour and Human Resources. (2ed).
DCSI-Annual Report (2020-2021). Department of Cottage and Small Industry Ministry of
Economic Affairs: p7
Urbano, D., and M. Guerrero. 2013. “Entrepreneurial Universities Socioeconomic Impacts of
Academic Entrepreneurship in a European Region.” Economic Development Quarterly
27 (1): 40–55.

98
 Chapter 11

Performance of Woman Entrepreneurs Influenced by

Training & Education in Emerging Market
M. L. Mayalekshmi,
Head, Department of Commerce,
Guru Nanak College (Autonomous), Chennai
Email: [email protected]

Abstract
The goal of this research is to investigate the link between education and training and the
performance of Women entrepreneurs (WEs). According to the findings of this research,
entrepreneurial education is beneficial which encourages women to pursue entrepreneurship as
a profession. The study's result also reveal that we don't have enough time. Women
entrepreneurs must upgrade their talents and get instruction in order to enhance their abilities.
The technique comprises the following: empirical investigation, data gathering and analysis
using SPSS, correlation approach to determine the WEs' education and training are inextricably
linked. Getting the right education helps people locate new sources of inspiration and ideas.
Transforming these concepts into businesses The research also indicated that, owing to
scheduling restrictions, WEs find it difficult to train and equip themselves with the latest
technologies because to a lack of resources and availability. Technological and market
advances. Furthermore, the outcomes of the research imply that supplying them is a good idea.
Professional training and skill development programmes would assist female students in
achieving their goals. The information gathered is only from India. Management and research
implications – The report also examines the management and research implications. The
ramifications of such research According to the findings, there is a link between the two.
Providing women with an entrepreneurial platform and education to help them launch their
own businesses. The results of the research imply that women face a lack of social support.
Entrepreneurship. It is still assumed that entrepreneurship would remain a male-dominated
sector, and this may be the case. Obtaining societal support for WEs is tough. Women's
entrepreneurship may also be used as a vehicle for social change. People living in poverty may
benefit from social uplift.

Keywords: Entrepreneurial intent, entrepreneurship, Women entrepreneurs

1. Introduction

The importance of women's entrepreneurship in economic growth has long been recognised in
economic development literature. It's even more common now. Significant in emerging nations
such as India, where poverty and unemployment are prevalent despite intended measures to
reduce difficulties, they continue to exist. These issues might be addressed by encouraging
women to start businesses. Entrepreneurial women (WEs) have the potential to empower and
improve society via female leadership. Involvement in the labour market (Apergis and Pekka-
Economou, 2010). According to a recent research According to statistics, one out of every

99
eleven adult women in the United States is an entrepreneur. Women-owned businesses employ
18 million people and create somewhere between $2 and $3 trillion in income for the US
economy. More women are breaking away from conventional, gender-based roles these days.
Attempting to enter the corporate world They are not just in high-ranking business jobs. They
are, however, successful WEs who own about half of all firms in the United States. The
constant growth of female entrepreneurs may be attributed to a variety of factors, the most of
which are discussed here. which has the same rationale as their male counterparts - a strong
desire to pursue their goals, a want to be their own boss, and a desire to contribute to
humanitarian causes Success WEs become financially independent and have the strength to
succeed in business. overcome life's setbacks It's fascinating to learn that female entrepreneurs
are active. improves a country's social and economic situation Several writers have contributed
to this work. emphasised the need to investigate the influence of training and education on the
workforce women's entrepreneurship performance (Lassithiotaki, 2011; Lin and Abetti, 2010).
However, there are a number of obstacles that women face when it comes to starting a business.
Inadequate education, access to capital, access to suppliers, business training, and access to
information market, incubator availability, lack of a supportive atmosphere, and access to
Labour is one of the most common stumbling blocks for WEs. According to a number of
research, WEs may face challenges due to a lack of education (Jesen and Elam, 2012; Shabana,
2011; Terjesen and Elam, 2012). A variety of factors that influence entrepreneurial drive have
been found in early study. A positive attitude toward beginning a company (Shapiro, 1975); a
good attitude toward starting a business (Shapiro, 1975); a positive attitude toward starting a
business (Shapiro, 1975); a positive desire for independence (Krueger, 1993); a readiness to
take risks in order to gain (Krueger, 1993).(Scheinberg and MacMillan, 1988), control (Ahmed,
2004), and autonomy (Reynolds and Scheinberg, 1988).Miller, 1988); a desire to better one's
social standing as well as a desire to innovate and create new things, services or goods (Shane
et al., 1991; Seymour, 2001; Davis, 2011). Moreover, Millman et al. (2010) also discovered
that there is a link between the two. entrepreneurship education and pupils' desire to start a
business Similarly, According to Arthur et al. (2012), education is critical in the entrepreneurial
process. Furthermore, various writers have discovered that, based on information from Chinese
HEIs, the impact of entrepreneurship education on students' entrepreneurial inclinations is
significantly strong influence on entrepreneurial motivation and objectives (Baum and Locke,
2004). Manev et al., 2005; Manev et al., 2004). Millman et al. (2010), on the other hand, did
not name any sources. They went on to propose that education is a vital determinant for
successful entrepreneurship. If entrepreneurs wish to be successful, they must invest in
education (Ismail et al., 2007).Pruett, 2012; Pruett, 2012; Pruett, 2012).The goal of this
research is to determine the influence of education and training in the workplace. Increasing
the effectiveness of WEs The paper makes two key theoretical advances. building. To begin,
the research makes a contribution by highlighting the function of education in influencing
behaviour. Among the WEs; there is a strong desire to start a business. Second, the current
research makes a contribution by determining the function of training in the development of
management skills enterprise (Gupta and Sharma, 2011; Safiri, 2004; Elias, 2009). The study
presents the results of a follow-up investigation on the influence of education and training.
women's entrepreneurship, as well as research and development. The following are the contents
of the paper: Literature review, hypothesis generation, data gathering, and analysis are all parts
of the framework and the study's scientific and managerial implications, as well as its
shortcomings.

100
2. Review of the literature

However, the results of the research imply that women's participation in entrepreneurial
activities is still much lower than men's. They are a driving force. economic, political,
professional, and managerial power, active and effective membersa society (Javaheri, 2005;
Buttner, 1997). They do, however, have households with children. They have substantial
parental duties and inflexible home tasks, which they must fulfil. are attempting to strike a
good balance (Fray, 1993; Otengo, 2011). Minniti and Langowitz (2007) discovered that
entrepreneurship is becoming a more significant source of income. Women may find work in
a variety of nations. The author looked at the WEs from a variety of perspectives. Greece, as
well as human qualities and business activities, were investigated. different types of
motivational incentives (Sherman, 2005). The information was gathered from 1,600 people.
During the years 1999-2009, industrial businesses in the prefecture of Piraeus utilised the use
of a panel technique to gather data concerning the primary factors of entrepreneurship by
women The outcomes of the research demonstrate that a combination of pull and push is
effective. reasons, as well as a set of personal goals and a mentorship structure that works
Failure risk, educational level, originality, and innovativeness are all factors to consider.
Women's business in Greece is furled by their ambition and marital status. According to
Facebook's COO, Sellers (2011), the biggest reason for women’s non-participation is because
“Women are typically not excellent at starting firms as huge as Facebook," says one woman.
negotiators who are just interested in their own growth.” Another reason why women do not
participate in sports is because they are afraid of being judged. According to Demet Mutlu; a
major barrier to large-scale business is a lack of public backing. Trendyol's Founder and CEO
in Turkey. Furthermore, according to the findings of the study, According to American Express
and Ernst & Young, having children may be a roadblock for business. entrepreneurship by
women Most WEs, according to Bianchini, have nontechnical degrees. (Saldanha and Velloso,
2011; Jean, 1996; Pardo-del-Val, 2010; Riding and Swift, 1990; Saldanha and Velloso, 2011;
Jean, 1996; Pardo-del-Val, 2010; Riding and Swift, 1990). Examining entrepreneurial
beliefs/attitudes, aspirations, expectations, and objectives Lassithiotaki (2011) discovered that
the biggest issues encountered by rural women are: The low level of education, lack of business
experience, and lack of resources face rural women. professional skills, rural women's
hesitancy to take business risks, and a lack of resources Lack of quality control manufacturing,
current business strategies for company model systems, in the manufacture of geographically
protected identifying items, and/or certified traditional local food and/or organic items, using
innovative organisational techniques and technology management, product advertising and
promotion, and product management administrative revitalization (Patterson and Mavin, 2009;
Buttner and Moore, 1997).Successful WEs, according to studies, start their firms as a second
or third job profession. Many of them have had a great deal of discontent with their jobs.with
their prior jobs and while they were employed by others. These intrinsic motivations to succeed
are sometimes misunderstood. They were inspired to start their own business since they wanted
to be their own boss. One of the major characteristics that many successful females have,
according to the research, is These WEs all have a higher education degree in common with
entrepreneurs. Furthermore, these WEs provide greater health-care benefits and on-the-job
training & education, including increased student tuition reimbursement and continuing
education workers, and give them greater vacation and paid time off alternatives. Moreover,
Bachelor's and international Master's programmes, according to Fusilier and Durlabhji (2003)
More technical e-business courses were required than in the North American Master's

101
programme. programmes. Watkins et al. (2008) propose that one year following participation,
Clients with student teams had achieved more progress than a control group of non-
participants. There was statistically substantial improvement in founding enterprises, which
resulted in increased economic activity. The biggest determinants of business success were
family support and market expertise. Rae (2010) also claimed that the nature of

In the new millennium, entrepreneurship is evolving in reaction to social and cultural shifts.a
period of economic development Ethical and environmental issues have sparked a debate.
Social entrepreneurship inspires ethical entrepreneurship. Some of the driving forces
Entrepreneurial learning and education, as well as social and ethical considerations, are all
aspects of social entrepreneurship. and ethical entrepreneurship, as well as cultural change and
the entrepreneurship crisis, learners, learning and teaching, institutions, and the economic and
social setting Entrepreneurial education and learning have ramifications. In a similar vein,
Hamidi et al (2008) investigated the influence of various educational options on students'
entrepreneurial intention. Entrepreneurial activity is based on a number of factors, including
the attractiveness and viability of the venture enterprise, as well as the attractiveness and
viability of employment1996 (Kolvereid). The author employed entrepreneurial education at
universities, as well as the impacts of entrepreneurship education. preceding education on
entrepreneurship, innovation, and entrepreneurial ambitions Evidence of entrepreneurial goals,
as well as the impact of risk perception on entrepreneurial behaviour. Some of the crucial
factors for increasing entrepreneurial self-efficacy are intention and entrepreneurial self-
efficacy a desire to start a business According to Sowmya and Maunder (2010), the bulk of
Students have an entrepreneurial mindset. In addition, the research envisioned both student
attributes and entrepreneurship experience were shown to be significant Certain entrepreneurial
tendencies are linked to this term. The findings reveal that young people are more likely to
engage in risky behaviours. Female students in Dubai are optimistic about the role colleges
may play in their lives. nurturing their interest in business, both for their education and as a
source of income for their new business enterprise. Furthermore, Matlay claims that graduates
in terms of entrepreneurial results, entrepreneurship education does not reflect real outcomes.
Skills, expertise, and attitudes are all important factors to consider. This disparity has an impact
on an entrepreneur's views of current and future educational requirements The majority of
graduate entrepreneurs, on the other hand, women appear to be happy with the results of their
entrepreneurial education, both in terms of money and time. In both relative and absolute terms
Variables such as obstacles in the workplace were considered in the research. Entrepreneurship
education research, worldwide entrepreneurship education attitudes, influences, and
preparation for entrepreneurship in the United Kingdom previous to entrepreneurship
education, entrepreneurship, and entrepreneurial knowledge. Following entrepreneurship
education, one gains entrepreneurial expertise. The research proved that entrepreneurship
education had a major influence on entrepreneurial careers. Jones (2010) claims that students
in higher education have a good understanding of the subject the limits of the entrepreneurial
knowledge they acquire This is the Educators must have a deeper understanding of students'
journeys in order to better serve them create learning settings in which students' personal
growth may flourish be more advanced According to Badaruddin et al. (2012), all of the
independent variables, such as social foundation, general attitudes, entrepreneurial mentality,
and IT The dependent variable, cyberspace, has a positive connection with knowledge. Among
business students from both public and private universities, there is a strong desire to start a

102
firm. IHL in a private setting Similarly, Piperopoulos (2012) claims that students'
entrepreneurial skills are important. During their four-year university education, their
objectives and ambitions erode and that faculty members do not have the mindset to teach
entrepreneurship. Furthermore, the findings of the study show that university structures and
rules are complex. Knowledge commercialization, technological transfers, and spin-offs are all
prohibited in Greece. Collaborations between businesses and universities. According to Wang
et al. (2011), The entrepreneurial event model of Shapero and Sokol (1982) is somewhat
validated in the except for the function of entrepreneurial personality in the context of college
students. The data imply that perceived desirability and attractiveness have favourable effects.
Entrepreneurial intent is influenced by perceived feasibility. The variables in the study were as
follows: Entrepreneurial purpose, trigger event, perceived desire, and perceived feasibility are
all important factors to consider. Similarly, Foster and Lin (2003) proposed that disparities in
previous knowledge levels may be a factor. Students' acquisition might be influenced by their
background in business courses as well as their cultural background throughout the acquisition
of subject knowledge and intellectual and information research abilities Collaboration in the
creation of a business strategy (Sherman, 2005).The following are some of the most common
reasons why people choose to work for themselves profession of parents, gender, education,
human capital, and job experience psychological description (Delmar and Davidson, 2000).
Entrepreneurs are usually self-starters those with a more practical education (vocational school,
technical school) than an academic background (e.g., college, etc.). No convincing evidence
has been found in empirical investigations demonstrated if having a university degree improves
an applicant's chances of success a business opportunity (Bruderl and Preisendorfer, 1998).
However, there is no question.as to the beneficial influence of industry experience; or, on the
other hand, as to the detrimental impact of industry experience an entrepreneur with little or no
expertise in the field. Lee and Rogoll (1997) discovered that when it comes to the sort of
schooling, Women entrepreneurs succeed in higher education and are happy with their jobs.
receiving education On one side, Neider (1987) and Dolinsky et al. (1993) come to similar
conclusions. that the advantages of training acquired by male company owners are larger than
those gained by female business owners’ counterparts in the feminine gender According to the
research, women choose less specialised courses to technical or business-related degrees. On
the other hand, Mainardes et al. (2011), were unable to identify any significant changes when
it comes to specific disciplines like marketing, accounting, and finance, Human resources or
strategy (Bennett and Dann, 2000). The literature suggests that In light of our findings, we offer
the following hypothesis:
H1. WEs' performance is favourably influenced by their educational level.
On the contrary, research have shown that training is one of the most important components in
achieving success. encourage women to start their own businesses (Bauer, 2011). The results
of this investigation were examined. the results of two entrepreneurial training programmes
that operate in Vermont, USA. Students with disabilities enrolled in an Applied Research
Methods course at the institution of two programmes, the Women's Small Business Program
(WSBP) and the Women's Entrepreneurship Program (WEP). Mercy Connections, a
Burlington-based non-profit organisation, manages the programme. Vermont Community
Action's Microbusiness Development Program (MBDP) Agencies. These entrepreneurs'
motives for starting their businesses were the subject of their interviews. own enterprises, their
notions of success, the difficulties and roadblocks they encountered, and the training's effects

103
(Bradely and Boles, 2003; Chavan and Agrawal, 2004; D'Cruz, 2005)2003). The results point
to a tangible and practical role for government and private sector organisations. Organizations
may help budding entrepreneurs by addressing their needs and incentives business owners
(DeMartino and Barbato, 2005; Ehigie and Umoren, 2003; Gilman, 1998). Nagesh and Murthy
(2008) investigate the efficacy of female entrepreneurship programme of education and
training (Kumar, 2008). The research also uncovered the advantages and disadvantages of such
training programmes, as well as a comparison of the pre-established Goals and actual
achievement are used to determine where training needs to be improved the programmes
(Moitra, 2001). The study's findings suggest that the state and federal governments are working
together. government training facilities and nodal centres that provide training to the general
public Only two-thirds of respondents believe that entrepreneurs are serving their needs.
(Nayyar and colleagues, 2007). The remaining one-third of those polled said there was no
difference. Content delivery in training programmes must be effective, and the same must be
done in the workplace enhanced (Raman et al., 2008; Shastri and Sinha, 2010). The
investigation identified the problem regions. improvement as a result of real exposure to
modern business, satisfying to understand the determinants of success and failure among
successful and failed entrepreneurs’ failures in the workplace (Sindhu and Geetakutty, 2003;
Mathew and Kavitha, 2011). According to the findings, in addition to skill development,
entrepreneurship and innovation are also important. Initiatives to inspire WEs should be taken
by management development institutions and give them with useful management information
(Ken, 2011). According to international standards, research, around 1/3 of all entrepreneurs
makes up the overall number of entrepreneurs are females. WEs from Russia and the
Philippines participated in a research that included poor to moderate income people.In
comparison to low-income nations, middle-income countries were found to engage in early-
stage entrepreneurship.to individuals from nations with a better standard of living (such as
Belgium and Sweden). This might be a problem interesting element encouraging women to
start their own business. One important factor is it's possible that women in low-income nations
are looking for new sources of money.in order to provide for themselves and their families As
a consequence, many of them often turn to violence. In addition to their existing occupations,
they want to pursue entrepreneurship. WEs from higher levels, on the other hand, Countries
with higher incomes were more successful in starting their enterprises and had more
innovation. stronger confidence than those in poorer countries, maybe due to the availability
of information. Families and friends provide resources and financial support. In addition, the
research found that reveals that women with a greater level of education are more likely to shift
transforming their present enterprises into profitable ventures. This demonstrated that learning
and labour go hand in hand Familiarity is common across cultures and has had a significant
role in the overall success. any kind of business venture One of the main difficulties is a lack
of networking. As a result, several research suggest that WEs are forming groups of their own
or confederacies in order to develop strong women's business networks. Members may
combine their resources and knowledge to help one another. Furthermore, women Business
networks have also been shown to be more charitable in their giving donations. According to
the data, at least seven out of 10 new business WEs devoted their time to community-related
organisations at least once a month. Furthermore, they also made yearly cash contributions to
a number of organisations. The majority of the participants are women. Home-based and
service-related companies were available to entrepreneurs. Recently, however, they were
discovered to be entering formerly male-dominated areas such as building, design, and

104
architecture. Architecture, manufacturing, and manufacturing the retail business, however,
continues to be the biggest % of women-owned businesses It has been shown that women-
owned businesses have a higher rate of success. On average, women make up 52% of the
workforce, while males make up 48%.average.One of the primary issues that the WEs have is
obtaining funding for training. Face. It has been noted that most WEs support their companies
using a variety of sources of capital. Financing, which may include “bootstrap” funds (personal
money from savings and credit cards) as well as commercial loans Approximately 60% of WEs,
according to a recent survey, When comparing the ability of Caucasian women company
owners to secure bank finance, to 50% of Hispanics, 45 percent of Asians, and 42% of Native
Americans, as well as 38% of African-American WEs. WEs are also at a higher risk, according
to the research. Male entrepreneurs have more takers than female entrepreneurs. As a result,
women spend less money on training programmes. Owing to a shortage of funds Field et al.
(2010) investigated Indian business training programmes, and When comparing many
characteristics of the candidates with their abilities, it was discovered that there is a correlation.
Business education has a beneficial impact on businesswomen's future earnings (Bhatnagar and
colleagues, 2013). Davis (2011) also discovered that there is a requirement for training.
“Identifying mentors and role models" and "legal difficulties" are two examples of service
areas. This showed a strong relationship? Furthermore, the research revealed that regardless of
WEs have the similar demands in terms of location, training, and assistance as male
entrepreneurs (Aarushi and Bhardwaj, 2013). On the entrepreneurial stage, there is a
considerable effect. With years of experience in the field of entrepreneurship on the subject of
assistance for entrepreneurs. According to Arthur et al. (2012), there is a need for stability and
greater access to resources. infrastructure, entrepreneurship education and training, and
government policies that encourage entrepreneurship are just a few of the issues that need to
be addressed. encourage entrepreneurship, self-motivated, entrepreneurship as a good societal
image role model, a strong entrepreneurial network, financial resources, risk tolerance, and
ethics are all important factors to consider.as well as transparency Entrepreneurial intent is
concerned with a person's desire to start a business. somebody who wants to establish a
business in the future It is a crucial factor in determining the outcome. Exogenous influences,
such as family, moderate the activity of new enterprise development. a person’s history,
familial situation, parent(s) employment, education, and training (Saldanha and Velloso, 2011;
Krueger et al., 200Kirve and Kanitkar (1993) found that training improves performance.
Women in non-traditional high-skill, male-dominated fields benefit from this strategy
activities. It also boosts women's confidence in their ability to address certain requirements.
Intensified. It is necessary to examine a person's social attitude, mindset, requirements, and
talents. Training will be provided by the ladies. Interest-based skill development and a flexible
training programme Training may encourage women to pursue entrepreneurial endeavours.
Developmental training For women, having strong management abilities is beneficial and
necessary (Sathya Sundaram, 2004). As a result, we provide the following hypothesis:
H2. The sort of training has a good impact on WEs' performance.

3. Data collection

The information was gathered from all around India. After the questionnaire had been
validated, it was put to the test in a pilot survey that was given to a small group of people. those
who responded (58 respondents). Respondents are chosen from the same group in pre-testing.

105
The demographic from whom the survey will be conducted and the questionnaire will be
created it has been applied to it The questionnaire consisted of 75 items to which respondents
were asked to respond. In addition, the respondent’s demographic information was sought.
individually, according to a short timetable at the outset of the inquiry. It had been It is optional
for responders to include their name, age, organization's address, job title, and designation.
However, each responder was asked to state the overall amount of labour they had done. Years
of experience and expertise in the business. In addition, respondents were asked to Indicate if
the person is male or female. The goal of the pre-testing was to verify that the questionnaire
was simple to grasp for the responders, and that the questionnaire was free of errors.
Misunderstandings, confusion, and prejudice are all possible. Following that, each responder
was Interviews were conducted based on the questionnaire, with the goal of identifying the
weak points. The questionnaire's main points Each responder was asked to share the results
with the rest of the group. challenges encountered when filling out the questionnaire and future
prospects modifications to make it easier for responders to comprehend the recommendations
in relation to Language, question formulation, sequencing, formatting, and other factors were
identified and discussed further. The topic was discussed in a group setting. The questions that
were perplexing and problematic were re-formulated in conjunction with the appropriate
responders and double-checked by everyone respondents as a whole as a result, the
questionnaire was modified to verify that the material, as well as the questions themselves,
were accurate form, question order, spacing, organisation, and physical look of the
questionnaire. The questionnaire was verified to see whether the people who filled it out
provided the intended answer. We used behavioural economics to our research and discovered
that, in addition to Perceptual factors, as well as demographic and economic variables, have a
significant effect in promoting female entrepreneurship Our findings suggest that subjective
perception is a real thing. Women's entrepreneurial proclivity is influenced by a number of
factors account for a large portion of the disparity in entrepreneurial activity between men and
women. We discovered that women view themselves and the business world differently than
males. Across all nations in our sample, women saw the environment in a less positive light
than men, and regardless of the motive for starting a business Our findings show that perceptual
characteristics are important. There may also be major universal elements impacting education
and training in Entrepreneurial mindset.

4. Analysis and Conclusion

According to the results of the survey, one of the most motivating aspects for WEs is that
starting their own business allows them to have a better work-life balance. It’s true. It’s
noteworthy to note that WEs have incredible multitasking abilities. One of the most significant
issues that WEs confront is the fear of debt with their new venture. Getting the right resources
together might be one of the most difficult tasks. There are obstacles because financial
organisations are biased towards women when it comes to making loans.as well as financial
assistance to WEs They may not have the financial means to do so. It’s possible that you were
disheartened because you didn't make well-informed selections about how to effectively raise
cash.by relatives and friends According to the conclusions of the study, education aids people
in their hunt for a job. the sources of capital It's also clear that education and training offer
people with opportunities. the self-assurance required to trust in their own abilities and business
ideas Another The absence of information is a problem that WEs encounter. This may be a
difficult task eradicated by providing them with business-related education and training
106
development. This will make it easier for the company to expand. The training gives you the
skills you need. WEs with the essential skills information to do industry research, Consumer
base, rivals, and network are all factors to consider. Education may aid in the sharing of
information. Entrepreneurs that have previously gone through the process may share their
insights. The Education is the first key predictor of WEs, followed by training. Women's
empowerment via the development of entrepreneurial and professional talents. The Correlation
analysis shows that there is a strong link between offering and receiving. Women are given an
entrepreneurial platform and instruction to help them launch their own businesses. As a result,
we devise the following model. According to the conclusions of this investigation, Lack of
education and social support are two of the most pressing issues facing the country. We are
confronted with (Figure 1).

Figure 1. Validated model for macro variables as predictors of WEs

There are three theories of relationship between macro variables, each of which has been
accepted. It's worth noting that WEs in developing economies like India choose the small-scale
industry since it takes less capital.as well as skill set (Shabana, 2011). According to the
conclusions of our research, there is a lack of social support. Women’s entrepreneurship is
encouraged. Entrepreneurship is still projected to be a lucrative business.WEs may find it
challenging to garner societal acceptance in a male-dominated sector. (See Figure 2) As a
result, if the government wants to encourage WEs, it has to have a policy in place. supply WEs
with loans that may be repaid in short monthly payments. There isn't any. This will enable them
to get skills training, expand their businesses, and create additional jobs enhance the country's
GDP while also creating jobs Furthermore, without allowing WEs to explore their ideas with
autonomy and financial backing. They won't be able to bring in any revenue for India.

References

Ahmed, M. (2004), “Women entrepreneurs in Jordan”, Journal of Small Business & Enterprises,
Vol. 11 No. 3, pp. 390-399.

107
Apergis, N. and Pekka-Economou, V. (2010), “Incentives and female entrepreneurial activity:
evidence from panel firm level data”, International Advances in Economic Research, Vol. 16
No. 4, pp. 371-387.
Arthur, S.J., Hisrich, R.D. and Cabrera, A. (2012), “The importance of education in the
entrepreneurial process: a world view”, Journal of Small Business and Enterprise
Development, Vol. 19 No. 3, pp. 500-514.
Badaruddin, M.N.B.A., Arokiasamy, L., Nordin, N.M., Yusof, H. and Zakaria, T. (2012), “Cyber-
entrepreneurial intention among business undergraduates in institutions of higher learning in
Malaysia”, Proceeding of 2nd International Conference on Management. Bauer, K. (2011),
“Training women for success: an evaluation of entrepreneurship training programs in
Vermont, USA”, Journal of Entrepreneurship Education, Vol. 14, pp. 1-24.
Baum, J.R. and Locke, E.A. (2004), “The relationship of entrepreneurial traits, skill, and motivation
to new venture growth”, Journal of Applied Psychology, Vol. 89 No. 4. Bennett, R. and Dann,
S. (2000), “The changing experience of Australian female entrepreneurs”, Gender, Work and
Organization, Vol. 7 No. 2, pp. 75-83.
Bhardwaj, B.R. and Aarushi, M. (2013), “Green banking strategies: sustainability through
corporate entrepreneurship”, Greener Journal of Businesses and Management Studies, Vol. 3
No. 4, pp. 180-193.
Bhatnagar, A., Bhardwaj, B.R. and Gupta, S. (2013), “Women ecopreneur ship: a case study from
emerging country”, Greener Journal of Business and Management Studies, Vol. 3 No. 2, pp.
091-098.
Bradely, F. and Boles, K. (2003), “Female entrepreneurs from ethnic backgrounds: an exploration
of motivations and barriers”, Manchester Metropolitan University Business School Working
Paper Series. Bruderl, J. and Preisendorfer, P. (1998), “Network support and the newly
founded business”, Small Business Economics, Vol. 10, pp. 213-225.
Buttner, E.H. (1997), Holly Women Entrepreneurs Moving Beyond the Class Ceiling, Sage,
Thousand Oaks, CA. Buttner, E.H. and Moore, D.P. (1997), “Women’s organizational exodus
to entrepreneurship: self-reported motivations and correlates with success”, Journal of Small
Business Management, Vol. 35 No. 1, pp. 34-46.
Chavan, M. and Agrawal, R.K. (2004), “Characteristics of ethnic women entrepreneurs in
Australia”, available at: www.sbaer.uca.edu/research/1998/ICSB/aa007.htm Davis, A.
(2011), “Rural and urban women entrepreneurs: a comparison of service needs and delivery
methods priorities”, International Journal of Business Science & Applied Management, Vol.
6 No. 2, pp. 1-16.
D’Cruz, K.N. (2003), “Constraints on women entrepreneurship development in Karalla: an analysis
of familial, social and psychological dimensions”, International Journal of Management
Research, Vol. 2 No. 1, p. 76, Discussion Paper No. 53.
Delmar, F. and Davidson, P. (2000), “Where do they come from? Prevalence and characteristics of
nascent entrepreneurs”, Entrepreneurship & Regional Development, Vol. 12, pp. 1-23.
DeMartino, R. and Barbato, R. (2005), “Motivational factors of intending female and male
entrepreneurs”, Journal of Small Business Management, Vol. 37 No. 2, pp. 96-105.
JEEE 6,1 48 Downloaded by La Trobe University At 15:55 05 February 2016 (PT) Dolinsky, A.L.,
Caputo, R.K., Pasumarty, K. and Quazi, H. (1993), “The effects of education on business
ownership: a longitudinal study of women”, Entrepreneurship Theory & Practice, Vol. 18 No.
1, pp. 43-52.

108
Ehigie, O.B. and Umoren, E.U. (2003), “Psychological factors influencing perceived
entrepreneurial success among Nigerian women in small-scale businesses”, Journal of
International Women’s Studies, Vol. 5 No. 1.
Elias, S. (2009), “Study of problem of Liam youth entrepreneur”, Master thesis, Islamic Azad
University – Birjand Branch, Brigand. Fabowale, L., Orser, B. and Riding, A. (1995),
“Gender, structural factors, and credit terms between Canadian small businesses and financial
institutions”, Entrepreneurship: Theory and Practice, Summer. Field, E., Jayachandran, S. and
Pande, R. (2010), “Do traditional institutions constrain female entrepreneurship? A field
experiment on business training in India”, American Economic Review, Vol. 100 No. 2, pp.
125-129.
Foster, J. and Lin, A. (2003), “Individual differences in learning entrepreneurship and their
implications for web-based instruction in e-business and e-commerce”, British Journal of
Educational Technology, Vol. 34 No. 4, pp. 455-465.
Fray, F.L. (1993), Entrepreneurship: A Planning Approach, West Publish Company, New York,
NY. Fusilier, M. and Durlabhji, S. (2003), “No downturn here: tracking e-business programs
in higher education”, Decision Sciences Journal of Innovative Education, Vol. 1 No. 1, Printed
in the USA. Gilman, C.P. (1998), Women and Economics, Dover Press, New York, NY.
Gupta, M. and Sharma, P. (2011), “A study of factors enabling female entrepreneurs”,
International Journal of Management Research, Vol. 2 No. 1. Hamidi, D.Y., Wennberg, K.
and Berglund, H. (2008), “Creativity in entrepreneurship education”, Journal of Small
Business and Enterprise Development, Vol. 15 No. 2, pp. 304-320.
Ismail, H.C., Shamsudin, F.M. and Chowdhury, M.S. (2012), “An exploratory study of
motivational factors on women entrepreneurship venturing in Malaysia”, Business &
Economic Research, Vol. 2 No. 1, pp. 1-13. Javaheri, F. (2005), “Studying the impact of
gender inequality on women entrepreneurship in Iran: obstacles for women job creation: Iran
sociology magazine”, Journal of Sociology, No. 18, pp. 161-178.
Jean, L. (1996), “The motivation of women entrepreneurs in Singapore”, Women in Management
Review, Vol. 11 No. 2, pp. 18-29. Jesen, S. and Elam, A. (2012), “Women entrepreneurship:
a force for growth”, Forum, No. 2, pp. 16-18. Jones, C. (2010), “Entrepreneurship education:
revisiting our role and its purpose”, Journal of Small Business and Enterprise Development,
Vol. 17 No. 4, pp. 500-513.
Ken, B. (2011), “Training women for success: an evaluation of entrepreneurship training programs
in Vermont, USA”, Journal of Entrepreneurship Education, Vol. 14, pp. 1-24. Kirve, H. and
Kanitkar, A. (1993), “Entrepreneurship at the grass roots: developing the income generating
capabilities of rural women”, Journal of Entrepreneurship, Vol. 2 No. 2, pp. 177-197.
Kolvereid, L. (1996), “Prediction of employment status choice intentions”, Entrepreneurship
Theory and Practice, Vol. 21, pp. 47-57. Performance of women entrepreneurs 49
Downloaded by La Trobe University At 15:55 05 February 2016 (PT) Krueger, N.F. (1993),
“The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and
desirability”, Entrepreneurship: Theory and Practice, Vol. 18 No. 1, pp. 5-21.
Krueger, N.F., Reilly, M. and Carsrud, A. (2000), “Competing models of entrepreneurial
intentions”, Journal of Business Venturing, Vol. 15 Nos 5/6, pp. 411-432.
Kumar, A. (2008), “Awareness of supporting agencies among women entrepreneurs in small
businesses”, The ICFAI University Journal of Entrepreneurship Development, Vol. V No. 4.
Langowitz, N. and Minniti, M. (2007), “The entrepreneurial propensity of women”,
Entrepreneurship: Theory & Practice, Vol. 31 No. 3, pp. 341-364.
Lassithiotaki, A. (2011), “Rural women and entrepreneurship: a case study in Heraklion Crete
prefecture, Greece”, Journal of Developmental Entrepreneurship, Vol. 16 No. 2, pp. 269-284.

109
Lee, M. and Rigoll, E. (1997), “Do women entrepreneurs require special training? An empirical
comparison of men and women entrepreneurs in the United States”, Journal of Small Business
and Entrepreneurship, Vol. 14 No. 1, pp. 4-27.
Lin, L. and Abetti, P.A. (2010), “Entrepreneurship in China during the transition from state
ownership to free market: case study of a woman entrepreneur (1994 to 2010)”, International
Journal of Entrepreneurship & Innovation Management, Vol. 16 Nos 3/4, pp. 137-158.
Mainardes, W., Alves, H. and Raposo, M. (2011), “Stakeholder theory: issues to resolve”,
Management Decision, Vol. 49 No. 2, pp. 226-252. Manev, I.M., Goshen, B.S. and Manolov
a, T.S. (2005), “The role of human and social capital and entrepreneurial orientation for small
business performance in a transitional economy”, International Journal of Entrepreneurship
& Innovation Management, Vol. 5 Nos 3/4, pp. 298-318.
Mathew, V. and Kavitha, M. (2011), “Women entrepreneurs practicing business in Middle East:
case study of socio-cultural environmental barriers”, International Journal of Management
Research, Vol. 2 No. 1. Millman, C., Li, Z., Matlay, H. and Wong, W. (2010),
“Entrepreneurship education and students’ internet entrepreneurship intentions evidence from
Chinese HEIs”, Journal of Small Business and Enterprise Development, Vol. 17 No. 4, pp.
569-590.
Moitra, B. (2001), “Women and entrepreneurship: Sundarbans women show the way”,
Kurukshetra, Vol. 49 No. 3, pp. 28-30.
Nagesh, P. and Murthy, M.S.N. (2008), “The effectiveness of women entrepreneurship training
program: a case study”, ICFAI Journal of Entrepreneurship Development, Vol. 5 No. 3, pp.
23-40.
Nayyar, P., Sharma, A., Kishtwaria, J., Rana, A. and Vyas, N. (2007), “Causes and constraints
faced by women entrepreneurs in entrepreneurial process”, Journal of Social Sciences, Vol.
14 No. 2, pp. 99-102.
Neider, L. (1987), “A preliminary investigation of female entrepreneurs in Florida”, Journal of
Small Business Management, Vol. 25 No. 3, pp. 22-29.
Otengo, M.A. (2011), “An investigation of challenges affecting young women entrepreneurs
assisted by techno serve in Nairobi Province”, available at: http://etd-library.ku.ac.ke:8080/
etd/handle/123456789/1231 Pardo-del-Val, M. (2010), “Services supporting female
entrepreneurs”, Service Industries Journal, Vol. 30 No. 9, pp. 1479-1498.
Patterson, N. and Mavin, S. (2009), “Wings”, International Small Business Journal, Vol. 27 No. 2,
pp. 173-192.
JEEE 6,1 50 Downloaded by La Trobe University At 15:55 05 February 2016 (PT) Piperopoulos,
P. (2012), “Could higher education programmes, culture and structure stifle the
entrepreneurial intentions of students?”, Journal of Small Business and Enterprise
Development, Vol. 19 No. 3, pp. 461-483.
Pruett, M. (2012), “Entrepreneurship education: workshops and entrepreneurial intentions”,
Journal of Education for Business, Vol. 87 No. 2, pp. 94-101.
Rae, D. (2010), “Universities and enterprise education: responding to the challenges of the new
era”, Journal of Small Business and Enterprise Development, Vol. 17 No. 4, pp. 591-606.
Raman, K., Anantharaman, R.N. and Jayasena, S. (2008), “Motivational factors affecting
entrepreneurial decision: a comparison between Malaysian women entrepreneurs and women
non-entrepreneurs”, Communications of the IBIMA, Vol. 2. Reynolds, P.D. and Miller, B.
(1988), 1988 Minnesota New Firms Study: An Exploration of New Firms and Their Economic
Contributions, Centre for Urban and Regional Affairs, Minneapolis, MN. Riding, A.L. and

110
 Swift, C.S. (1990), “Women business owners and terms of credit: some empirical findings of
the Canadian experience”, Journal of Business Venturing, Vol. 5 No. 5, pp. 327-340. Safiri,
K. (2004), “Female employment in developing job satisfaction and job type”, Proceedings of the
Women Participation and Planning for Sustainable Development, Tehran, International
Journal of Arab Culture, Management and Sustainable Development, Vol. 1 No. 3, pp. 239-
253.
Saldanha, M.F. and Velloso, J.A. (2011), “Entrepreneurship as way to contain the population
exodus: a local development proposal”, International Journal of Entrepreneurship and Small
Business, Vol. 14 No. 2, pp. 205-229.
Sathya Sundaram, I. (2004), “Encouraging women entrepreneurship”, Social Welfare, Vol. 50 No.
12, pp. 13-15. Scheinberg, S. and MacMillan, I.C. (1988), “An 11 country study of
motivations to start a business”, Frontiers of Entrepreneurship Research, pp. 669-687. Sellers,
P. (2011), “Will the next Facebook be founded by a woman?”, Fortune, Vol. 164 No. 6, p.
154.
Seymour, N. (2001), “Women entrepreneurs in the developing world”, CELCEE Digest No. 01-
04, Centre for Entrepreneurial Leadership, Clearinghouse on Entrepreneurship Education,
Kansas City, August, available at: www.celcee.edu/ Shabana, A.M. (2011), “Entrepreneurial
inclination among female students pursuing management studies – an empirical study”,
Advances in Management, Vol. 4 No. 8, pp. 19-23.
Shane, S., Kolvereid, L. and Westhead, P. (1991), “An explanatory examinations of the reasons
leading to new firm formation across country and gender”, Journal of Business Venturing,
Vol. 6 No. 6, pp. 431-436.
Shapero, A. and Sokol, L. (1982), “The social dimensions of entrepreneurship”, in Kent, C., Sexton,
D. and Vesper, K.H. (Eds), The Encyclopedia of Entrepreneurship, Prentice-Hall, Englewood
Cliffs, NJ, pp. 72-90. Shapiro, A. (1975), “The displaced, uncomfortable entrepreneur”,
Psychology Today, Vol. 9 No. 6, pp. 83-88.
Shastri, R.K. and Sinha, A. (2010), “The socio-cultural and economic effect on the development of
women entrepreneurs with special reference to India”, Asian Journal of Business
Management, Vol. 2 No. 2, pp. 30-34.
Sherman, A.P. (2005), “Central perks”, Entrepreneur, Vol. 33 No. 9, p. 34. Performance of women
entrepreneurs 51 Downloaded by La Trobe University At 15:55 05 February 2016 (PT)
Sindhu, S.N. and Geetakutty, P.S. (2003), “Level of entrepreneurial success among women
entrepreneurs in agribusiness”, Journal of Tropical Agriculture, Vol. 41, pp. 41-44.
Sowmya, D.V. and Maunder, S. (2010), “Relevance of education for potential entrepreneurs: an
international investigation”, Journal of Small Business and Enterprise Development, Vol. 17
No. 4, pp. 626-640.
Terjesen, S. and Elam, A. (2012), “Women entrepreneurship: a force for growth”, International
Trade Forum, No. 2, pp. 16-17.
Wang, W., Lu, W. and Millington, J.K. (2011), “Determinants of entrepreneurial intention among
college students in China and USA”, Journal of Global Entrepreneurship Research, Vol. 1 No.
1, pp. 35-44.
Watkins, T.A., Russo, M.J. and Ochs, J.B. (2008), “Can students in technology entrepreneurship
courses help foster start-ups by the unemployed?”, Journal of Small Business and Enterprise
Development, Vol. 15 No. 2, pp. 348-364.
Further reading Fischer, E.M., Reuber, A.R. and Dyke, L.S. (1993), “A theoretical overview and
extension of research on sex, gender, and entrepreneurship”, Journal of Business Venturing,
Vol. 8 No. 2, pp. 151-168.

111
Lars, K. and Moen, Ø. (1997), “Entrepreneurship among business graduates: does a major in
entrepreneurship make a difference?”, Journal of European Industrial Training, Vol. 21 No.
4, pp. 154-160.
Parihar, P., Singh, D.K., Sharma, V.K. and Singh, R.P. (2008), “Impact of motivational factors and
role stress on women entrepreneurs in Jammu”, Indian Research Journal of Extension
Education, Vol. 8 Nos 2/3. Rosa, P. and Dawson, A. (2006), “Gender and the
commercialization of university science: academic founders of spinout companies”,
Entrepreneurship & Regional Development, Vol. 18 No. 4, pp. 341-366.

112
 Chapter 12

A Study on Domestic Soft Drinks Manufacturing

Entrepreneurs in Karnataka
Dr.Rakesh.T.S.*
Principal, GSSS SSFG College,
Metagalli, Mysuru(D) - 570016, Karnataka.
E-mail ID: [email protected],
orcid id: 0000-0001-8774-7817

Dr.Devarajanayaka, K. M.
Assistant Professor, College of Business,
University of Buraimi, Sultanate of Oman.
E-Mail: [email protected],
Orcid Id: 0000-0003-0853-4085

Mrs.Madhushree.S.
Assistant-Professor, Department of PG-Commerce,
SDM College (Autonomous), Ujire,
Dakshina Kannada (D), Karnataka,
E-mail ID: [email protected],
orcid id: 0000-0002-3018-1338

*Corresponding author

Abstract
Local players have maintained their dominance in the Indian soft drinks market, holding the
majority of market shares. When Pepsi and Coke returned to the market, however, the entire
scenario changed, and they began to dominate the Indian soft drinks market with significant
market shares. To maintain their market dominance, Pepsi and Coca-Cola began acquiring
local soft drink manufacturing units. However, many entrepreneurs in various parts of the
country run their own soft drinks manufacturing businesses and compete fiercely on their own
level. Most importantly, by meeting the needs of their customers, these businesses are thriving
in the market. With this background, our study is being conducted to highlight the problems
that entrepreneurs of soft drinks manufacturing units face in improving industry conditions, as
well as to discuss the prospective elements of the industry, particularly in the state of
Karnataka.

Keywords: Entrepreneurs, Coke, Consumers, Local Players, Pepsi, Parle, Soft drinks,
Supremoes.

1. Introduction
The soft drink industry in India has grown significantly, employing over 125000 people
directly and indirectly. It has attracted one of the highest levels of foreign direct investment in
the country. Strong forward and backward links with the glass, plastic, refrigeration, sugar, and
transportation industries help to strengthen its position. The Indian soft drink market is worth

113
Rs. 21,600 million per year and is growing at a rate of approximately 7%. The soft drink market
is expected to reach Rs. 1, 05,000 million by 2005. The production of soft drinks increased
from 6,230 million bottles in 1999-2000 to 6,560 million bottles in 2001-2002. The total
production of soft drinks is shown in Table 1.

Table-1: Soft Drinks Production

Year Bottles( in millions)

1997 --1998 4,920
1998--1999 5,670
1999--2000 6,230
2000--2001 6,450
2001--2002 6,600
Source: Annual Report (2001-02), Ministry of Food Processing Industry

In terms of massive investments in expansion and technological advancement, the beverage

industry is one of the frontrunners. Carbonated and non-carbonated beverage packaging is a
diverse technological division of the Packaging and Food Processing industries. The traditional
method of returning glass bottles has been replaced by new containers with plastic cartons. The
current trend is to develop traditional containers in order to increase their market share, provide
greater consumer convenience, extend product shelf-life, and ultimately generate more cost-
effective packages. The changing Indian business environment, with market promotion
activities and the implementation of various technologies, has significantly altered the scope
of this industry.
"Beverage" is derived from the French word "beivre," which means "drink." The general
definition of a drink includes a prepared drink.
Cool drinks are also known as soft drinks.
According to Indian trade classification, soft drinks are water-based flavoured non-alcoholic
drinks that can be sweetened, carbonated, and acidulated. Caffeine is present in some
carbonated soft drinks, most notably brown cola drinks.
According to the Fruit Products Order (FPO) 1955 Act, a fruit beverage or fruit drink is a drink
or beverage made from water or carbonated water and fruit juice that contains invert sugar,
sugar, liquid glucose, and dextrose. The minimum percentage of fruit juice in the finished
product cannot be less than 5%. Fruit syrup is a sugared fruit drink that contains at least 25%
fruit juice.

Beverages are classified into two types Non-Alcoholic and Alcoholic beverages:
1. Non-alcoholic beverages are divided into two categories:
a) Non-carbonated beverages such as fruit juices, fruit drinks, fruit nectars, coffee, and tea;
and b) alcoholic beverages
b) Carbonated drinks such as soda, Coca-Cola, and tonic water
2. Alcoholic beverages are classified into two types:
a) fruit/sap – non-distilled (Wine), distilled (Brands), and
b) grain – non-distilled (Bear), distilled (Whisky), as shown in Figure 1.

114
 Figure 1: Classification of Beverages
Source: http://icpe.in/icpefoodnpackaging/pdfs/14_beverages.pdf

Soft drinks, both carbonated and non-carbonated, are available in PET bottles, aluminium cans,
disposable containers, and glass bottles. Lemonade, cola, and orange juice are examples of
carbonated drinks, whereas mango drinks are examples of non-carbonated drinks. Soft drinks
are further classified as non-cola or cola products. Diet Coke, Diet Pepsi, Pepsi Cola, Coca-
Cola, and Thumps up are among the well-known brands available in India. Cola drinks account
for approximately 61-62 percent of the total soft drink market in India. Non-Coca-Cola
beverages account for 36% of the total soft drink market (Source: India Infoline Sector Report,
2002).

Coca-Cola returned to the Indian soft drink market in 1993 after a 16-year absence; domestic
players-controlled 75 percent of the market (Parle 60 percent and Pure Drinks 15 percent)
through a large network of retailers and more bottling units. Despite the presence of MNC
players in the market, such as Pepsi, they were unable to command or dominate the market.
Observing this, Coca-Cola did not conduct normal business by collaborating with other market
participants to gain a share. Instead, in order to dominate the Indian market, it acquired the
entire Parle brand portfolio, which had a large market share, as well as the same Limca and
Thums Up brands. However, the two global major players dominated the soft drink market in
India i.e., Pepsi Co and Coca Cola. Their market share is estimated to be varying. According
to some estimates, Pepsi Co has a larger market share, while Coca Cola has a larger market
share. However, in 2002, these two MNC players dominated the soft drink segment, accounting
for Rs. 6,247 crores in sales.

Even today, many domestic players compete with multinational corporations in India. Local
brands such as Bindu, Sprint, Virgin, Torino, Toffa, Joy, Zaffa, Ajaya, Joyner, Sip On, and
many more have grown in Karnataka, and they are competing against MNC players such as
Pepsi and Coca Cola for a larger share of the market by understanding consumer preferences
and having their own marketing strategies and good retail networks.

2. Literature Review
Arijit Biswas and Anindya Sen (1999) attempted to show "how international companies, such
as Coca-Cola and Pepsi, have crushed every local player approach sequentially to acquire a
large proportion of Indian market shares." According to Pradeep Agrawal (2011), predicting
who will win the market race is extremely difficult, and ultimately, consumers must choose the
best among all. Chakraborty (2011) investigates general perceptions of private-label colas in

115
the UK retail market, followed by buyer behaviour. Kristof De Wulf et al. (2005) validate the
widely held belief that private label products can provide the same, if not better, quality than
national brands while costing less. Sahoo and Chaithanya (2014) seek to identify the factors
that influence customers to select one brand of cold drink over others in a competitive market,
as well as the factors that influence retailers to sell cold drinks in the south Indian market.
GOUTAM at el attempted to highlight the reasons for and impact of brand ambassadors, as
well as their influence on consumer purchasing behaviour. Jha (2013) conducted a study in
Bihar to raise consumer awareness of packaged food products and to examine rural consumers'
purchasing habits for packaged food products.

According to Ghosh (2010), an anti-Coca Cola protest in Plachimada, a village in South India,
in 2002 had morphed into a coalition of demands for resource extraction, health care, and
regulated foreign investment. The primary emphasis is on the expressive play with symbols
that is required for the popular's very constitution. Halbert (2006) attempts to depict the entire
chain of production for Coca-Cola at its $12 million bottling plant in Kerala. Naghiu.M.O
conducted a study at CLUJ-technical NAPOCA's university to determine the factors that
influence customers' preference for Pepsi Co's soft drinks over Coca-drinks. Cola's One of the
reasons consumers switch from Coke's brand to Pepsi's brand is the internet's availability of
image-damaging articles about the Coca-Cola company's soft drinks. Johnson and Peppas
(2003) attempt to highlight the facts and strategies used by the Coca-Cola company to
overcome the 1999 Belgian crisis, and how this crisis management became a lesson for the
Coca-Cola company to develop appropriate organisational strategies that will help them
overcome similar situations in the future.

According to Chaklader and Gautam (Dec 2013), the people of Kaladera made appropriate
remarks and cooperated with the Coca-Cola industrial plant. Through its CSR activities, the
company was able to influence the minds of its employees, resulting in a positive edge and
growth that resulted in a strong, sound, and ethical foundation for the firm. According to Kotni
(June, 2014), "the retailers' perception of the marketing mix strategies adopted by both Pepsi
Co and Coca Cola Co for their respective products serves as a benchmark for the effectiveness
of marketing practises."

Michel Mack (2012) suggests that retailers stock up on rehydrating and refreshing products for
sweating customers, as well as follow the new consumer to get a chance to actually cool him
down with a cold beverage. Pandian and Varthani (March,2013) identify the factors that cause
retailers to be dissatisfied with the offers/schemes and rewards provided by Pepsi Co. and
propose that Pepsi develop more and more promotion schemes to entice retailers to push their
products in the market. Rahul Singh and Jeet Singh (2015) attempt to emphasise that a retailer
is involved in the act of selling goods to the individual consumer at a profit margin, and that
unorganised retailers must improve their infrastructure, product range, and provide good
quality products to their customers at reasonable prices in order to compete with the organised
retail sector. A study of cola consumers' brand switching attitudes in the Turkish cola market,
as well as the introduction of Cola Turka, a new cola brand that has captured nearly one-quarter
of the market and has the potential to create devoted customers (Ulas and Arslan, 2006).

According to the above review of literatures, more studies are focusing on MNC players like
Pepsi Co. and Coca Cola Co. and their market brand wars, as well as consumer and retailer
perceptions of these MNC players' brands. No study has been conducted specifically to
highlight the challenges that domestic soft drinks manufacturing entrepreneurs face, as well as

116
prospective elements of the Karnataka state soft drinks industry. This study was conducted to
fill a void.

Objectives of the Study

1. To investigate the issues confronting soft drink manufacturers in the state of
Karnataka.
2. To identify the relationship between entrepreneurs' qualifications and their level of
problem-solving ability.
3. Research the opportunities and challenges that soft drink entrepreneurs in Karnataka
face.

3. Methodology
To collect primary data from entrepreneurs of local soft drink manufacturers and analyse
various problems they face, a structured questionnaire and a convincing sampling method were
used. The collected and analysed data was interpreted using charts and tables. Secondary data
was gathered from a variety of journals and magazines, articles and websites, and so on. The
"Content Score Technique" was used to analyse the problems faced by soft drink
manufacturing entrepreneurs, and a Chi-square test was used to test the following hypothesis.

4. An Analysis and Interpretation of Data

A structured questionnaire containing background information and company information was
distributed to the selected entrepreneurs with manufacturing soft drinks businesses from
Karnataka's various districts.

Table 2. Demographic characteristics of the Entrepreneurs

Number of years in
Business
Owner’s Owner’s Owner’s
more Total
Gender qualification Age 1 to 5 6 to 10
than 10
years years
years Percent
21-30 2 0 2
No Formal
31-40 0 2 2
Education
Total 2 2 4 8%
21-30 1 3 5 9
31-40 1 1 7 9
School 41-50 0 2 5 7
51-60 0 0 1 1
Male
Total 2 6 18 26 52%
21-30 1 0 0 1
31-40 0 1 4 5
Graduation
41-50 0 0 2 2
Total 1 1 6 8 16%
21-30 2 1 3
Technical
Total 2 1 3 6%

117
 Number of years in
Business
Owner’s Owner’s Owner’s
more Total Percent
Gender qualification Age 1 to 5 6 to 10
than 10
years years
years
No Formal 41-50 2 2
Education Total 2 2 4%
21-30 1 1
School
Total 1 1 2%
Female
21-30 0 0 1 1
31-40 0 0 2 2
Graduation
41-50 2 1 0 3
Total 2 1 3 6 12%
Total 100%
Source: Primary Data

According to Table 2, 82 percent of those polled are male entrepreneurs, while 18 percent are
female entrepreneurs. Approximately 36% of entrepreneurs are between the ages of 31 and 40.
34 percent of those polled are between the ages of 21 and 30. 28 percent of respondents are
between the ages of 41 and 50, and 2 percent are between the ages of 51 and 60. Around 54
percent of respondents have a basic school education (SSLC passed candidates), while 12
percent have no formal education. 28 percent of respondents have a bachelor's degree, which
allows them to make appropriate business decisions and take calculated risks before investing
large sums of money in the business. Six percent of respondents have a technical background,
such as a diploma or ITI course. Approximately 66 percent of soft drink manufacturing
companies are very old organisations that were founded more than ten years ago and are in the
mature stage of the business cycle. 24 percent of the companies have been in operation for 6 to
10 years and are in the growth stage of the business cycle. 10% of companies are in the early
stages of the business cycle, which means they have been in operation for 1 to 5 years.

Table 3: Mode of starting the soft drinks manufacturing business

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
Newly started by you 41 82 82 82
Inherited 4 8 8 90
Taken on lease 1 2 2 92
Sick units purchased 3 6 6 98
Acquire from
1 2 2 100
partners
Total 50 100 100
Source: Primary Data

Table 3 shows that 82 percent of the soft drinks bottling units are newly started up by the
proprietors, while 8 percent of the soft drinks bottling units are inherited units that were started
by their family members at the beginning and later transferred to the next generation. 6 percent
of the soft drink bottling units are sick units purchased by proprietors from other proprietors
and run by them, while only two percent are acquired from partners.

118
 Table 4: Kinds of soft drinks business organisations

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
Sole Trading 37 74 74 74
Partnership 8 16 16 90
Private Ltd 5 10 10 100
Total 50 100 100
Source: Primary Data

According to Table 4, 74 percent of soft drink bottling units are sole proprietorships.
Partnership firms account for 16 percent of soft drink bottling units, while private company
limited accounts for 10 percent. As a result, it can be concluded that the majority of soft drinks
manufacturing units are owned by sole proprietors who are mentally and financially strong
enough to take the huge risk of starting the soft drinks manufacturing plant and marketing their
brands against MNCs players brands in the market while also implementing new strategies to
survive in the market for the long run.

Table 5: Number of Employees working in Scale Soft Drinks companies

Particulars Percent Valid Cumulative

Frequency
(%) (%) (%)
below 10 employees 39 78.0 78.0 78.0
11-25 employees 3 6.0 6.0 84.0
26-50 4 8.0 8.0 92.0
51-100 4 8.0 8.0 100.0
Total 50 100.0 100.0
Source: Primary Data

Table 5 shows that 78 percent of small scale soft drinks manufacturing companies have fewer
than ten employees, while 8 percent of soft drinks bottling companies have between 51 and
100 employees. Only 8 percent of soft drink bottling companies offered opportunities to
employees aged 26 to 50, while only 6 percent of soft drink bottling companies offered
opportunities to employees aged 11 to 25.

Table 6: Kinds of Machinery installed in soft Drinks bottling units

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
fully manual machinery 15 30 30 30
semi-automatic machinery 33 66 66 96
fully automatic machinery 2 4 4 100
Total 50 100 100
Source: Primary Data

Table 6 shows that semi-automatic machineries are used in the production process by 66
percent of soft drink bottling units. In the production process, 30 percent of soft drink bottling

119
units uses fully manual machines. Only 4 percent of soft drink bottling plants use fully
automatic machinery in the soft drink production process.

Table 7: Different Size of Soft drinks produced by Soft drinks making units

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
200 ml 20 40 40 40
350 ml 2 4 4 44
All kind of Bottling 4 8 8 52
Both 200 ml and 250
24 48 48 100
ml
Total 50 100 100
Source: Primary Data

Table 7 shows that soft drink manufacturers produce both 200ml and 250ml soft drink bottles.
Only 200ml soft drinks are produced by 40 percent of soft drink manufacturing units. 8 percent
of soft drink manufacturing units produce all sizes of soft drink products such as 200ml, 250ml,
350ml, and so on. Only 4 percent of soft drink manufacturing companies produce soft drinks
in 350ml sizes.

Table 8: Showing level of difficulties faced by Entrepreneurs at the time of starting Business

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
High 8 16 16 16
Medium 18 36 36 52
Low 10 20 20 72
Not at all 14 28 28 100
Total 50 100 100
Source: Primary Data

Table 8 depicts the level of difficulty encountered by soft drink manufacturing entrepreneurs
when starting their businesses. 36 percent of entrepreneurs reported dealing with medium-level
difficulties. 28 percent of entrepreneurs say they had no difficulties starting a business. 8
percent of entrepreneurs encountered significant difficulties when starting their businesses.
Twenty percent of entrepreneurs say they had little difficulty starting their business.

Table 9: Mode of Distribution of Soft Drinks followed by Entrepreneurs in the Market

Percent Valid Cumulative

Particulars Frequency
(%) (%) (%)
through own marketing
36 72 72 72
department
through both own
marketing department and 14 28 28 100
also distributors
Total 50 100 100
Source: Primary Data

120
Table 9 shows that 72 percent of entrepreneurs distribute their soft drinks product through their
own marketing department rather than relying on an agency to do so, which helps to reduce
costs and maximise profits. In Karnataka, 28 percent of soft drink manufacturing units
distribute their products to retailers through both their own marketing department operations
and with the assistance of agencies or distributors.

Table 10: Various Problems Faced by Entrepreneurs Making Soft Drinks on a Small Scale

Content
Particulars Score Percent Ranks
Finance 104 11(10.99) VI
Labour 202 21(21.35) II
Electricity 157 17(16.60) IV
Marketing 159 17(16.81) III
Competition From Local
players 206 22(21.77) I
Competition From MNC
players 118 12(12.47) V
Total 946 100
Source: Primary Data

Table 10 shows that entrepreneurs have more problems, and they have ranked their problems
in the order listed. The problems include competition from local players, which causes
unhealthy competition by selling their products at lower prices than others without proper
coordination with other market players, and labour turnover and shortage, which is one of the
most significant issues they face. In the weighted (scale 5 to 1) summation of the content score,
competition from local players, labour shortage, and turnover scored 206 and 202, respectively,
and secured I rank and II rank.

Table 11: Cross-tabulation of Entrepreneur’s qualification & the way of handling the
problems

Way of Dealing with Problems

Owner’s Do nothing
Work further Be strong and Try to solve Total
qualification the
didn't pay feel that you the problem
problem
attention to can overcome as soon as
will be
the problem anything possible
solved later
No Formal
0 2 4 0 6
Education
School 4 5 10 8 27
Graduation 1 5 6 2 14
Technical 0 2 1 0 3
Total 5 14 21 10 50
Source: Primary Data

121
Hypothesis:
Null hypothesis (HO): There is no association between entrepreneurs’ qualification and level
of dealing with problems faced by the entrepreneurs
Alternate Hypothesis (H1): There is an association between entrepreneurs’ qualification and
level of dealing with problems faced by the entrepreneurs
Level of significance: 5%

Table 11.1: Chi-Square Tests

Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 8.832a 9 0.453
Likelihood Ratio 10.842 9 0.287
Linear-by-Linear
0.533 1 0.465
Association
N of Valid Cases 50

Since the p value 0.453 is greater than 0.05 confidence level, (p > 0.05 (i.e.) 0.453 > 0.05) we
don’t reject Null Hypothesis. Therefore there is no association between Owners’ qualification
and level of dealing with problems faced by the entrepreneurs.

Table 12: Descriptive Analysis of Entrepreneurs’ Opinion towards Various Statements

Stron Stro
gly Disa Can’t Agr ngly Ave X2
Disag gree Say ee Agre
T R
rage va
Statements ree e ot an
Sco lu
1 2 3 4 5 al re k e
N %N % N % N %N %
Government support local soft drinks player 1 2 5
than MNCs Players 4 8 4 8 4 8 9 8 9 8 50 3.86 3 47
Government has provided good quality of 13
road 1 1 2 1 1 3 1 2 .7
2 0 1 2 5 0 5 0 4 8 47 3.28 5 4
Collecting glass bottles from retailers is a 1 2 3 6 70
problem 2 4 1 2 2 4 3 6 2 4 50 4.32 1 .2
Retailers helps in reducing the cost on 1 1 2 2 5
advertisement 1 2 7 4 4 8 0 0 8 6 50 3.9 2 45
An Association helps to prevent unhealthy 1 1 3 1 3 19
competition in the market 4 8 4 8 7 4 6 2 9 8 50 3.42 4 .8
Social network helps domestic players to #
create brand awareness among the 1 1 2 1 3 1 1 3.
consumers 9 8 0 0 5 0 8 6 8 6 50 2.02 6 4
Source: Primary Data
@ (Except for the figure with #) all values are significant at level of significance 0.05 with 4 degrees
of freedom.
# At the level of significance of 0.05, there is no significance at the 4 degree of freedom.
* Figure 5, showing percentages that add up to '100' and rank according to average score.

122
5. Conclusion
As the demand for sweetened soft drinks has grown, a growing number of soft drink
manufacturing plants have sprouted up across the country. Factors such as raw material
availability, demand for goods, climate conditions, labour availability, and so on all have an
impact on the establishment and growth of any industry. These broad factors prompted
entrepreneurs to set up bottling plants in Karnataka. Karnataka, as we all know, has an ideal
climate for the development of the soft drinks industry. As a result, demand for soft drinks rises
throughout the year. Whereas the summer season has higher sales, the rainy season is the slack
season, with lower sales.

Normally, during the rainy season, demand for soft drinks products is limited to regional
festival celebrations, marriage functions, demand from bars and restaurants, and so on, which
keeps soft drinks manufacturing units afloat in the market. The soft drink industry, on the other
hand, faces a number of constraints and bottlenecks. The major impediments to growth are
unfair trade practises used by new local soft drinks manufacturing units in the industry, such
as selling products at a lower price to retailers compared to the prices of existing players, and
there are numerous articles on the Internet about the health risks associated with pesticides in
soft drinks. As a result, consumers are gravitating toward fruit juices, health drinks, and pulpy
drinks. Product duplication is also a major issue confronting the soft drinks industry.

Kukum juice/drink, which is regarded as a healthy drink that aids in keeping the human body
cool during the summer months, is one of the most popular local drinks in Karnataka. Many
soft drink manufacturing units are now producing and marketing Kukum favour soft drinks in
order to reach those customers in the market. Because of the retailers, these soft drink bottling
units are more successful in this region. Retailers are happy because promoting local soft drinks
earns them higher profit margins than promoting the soft drinks of MNC players.
Simultaneously, these small-scale soft drinks manufacturing units are scattered throughout
rural Karnataka, and with the help of retailers, they can reach more consumers than MNC
players, who rely on distributors to reach retailers, and retailers must sell it to market
consumers.

References
Arijit Biswas & Anindya Sen (1999). Coke vs. Pepsi – Local and Global Strategies. Economic and
Political weekly, June 26, 1999, 1701-1708.
Alpert, F. H., & Kamins, M. A. (1995). An empirical investigation of consumer memory, attitude,
and perceptions toward pioneer and follower brands. The Journal of Marketing, 34–45.
Anand, E. (n.d.). Preferences for Cold-Drinks with Special Reference to Rural Consumers of
Ambala District. Retrieved from
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.403.6560&rep=rep1&type=pdf
Association, A. B., & others. (2005). Beverage Industry Announces New School Vending Policy:
Plan Calls for Lower-Calorie and/or Nutritious Beverages in Schools and New Limits on
Soft Drinks. Retrieved July, 15, 2006.
Barnali Chaklader & Neeran Gautam (Dec 2013. Efficient water management through public
private partnership model: an experiment in CSR by Coca-Cola India. Vikalpa,Vol 38, No.4,
Oct-Dec – 2013, pp. 97-104.

123
Chakraborty, S. (2011). Perceptions and Buyer Behavior Towards Private-Label Colas: An
Exploratory Study to Understand the Views of the Store Managers of United Kingdom. IUP
Journal of Marketing Management, 10(1), 7.
Ciochetto, L. (2008). 13 Advertising in a globalised India. Popular Culture in a Globalised India,
192.
Deichert, M., Ellenbecker, M., Pesarchick, L., Klehr, E., & Ziegler, K. (2006). Industry analysis:
Soft drinks. Retrieved from
http://digitalcommons.csbsju.edu/cgi/viewcontent.cgi?article=1001&context=gbl_students
Gyan Prakash & PramodPathak(August 2014). Understanding rural buying behaviour: a study with
special reference to FMCG products. Indian Journal of Marketing, pp. 43-55.
Ghosh, B. (2010). Looking through Coca-Cola: global icons and the popular. Public Culture, 22(2),
333–368.
GOUTAM, D. (n.d.). Influence of Brand Ambassadors on Buying Behaviour of Soft Drinks: with
Reference to Belgaum City. Retrieved from http://oaji.net/articles/2014/490-
1393404018.pdf
Halbert, T. (2006). Coke in Kerala. Journal of Business Ethics Education, 3, 119–141.
Jha, M. (2013), Buying Behaviour of Rural Consumer with Reference to Packaged Food Products
in Bihar. International Journal of Management Research and Reviews, 3(4), 2769.
Kristof De Wulf, Gaby odekerken Schooder & Frank Goedertier and Ginu Van Ossel (2005).
Consumer perceptions of store brands versus national brands. Journal of consumer
marketing, Vol 22, No.4, pp. 223-232.
Maurice, S. M. (2010), The soft drinks companion: a technical handbook for the beverage industry.
CRC Press.
Michel Mack (2012), A chilled guide to increase sales. Wholesale Business, issue – 4, pp. 7-3
Naghiu.M.O. A Marketing Research Regarding the perception towards Pepsi – Cola and Coca-
Cola soft drinks within the Technical University from CLUJ-NAPOCA. Agricultura –
Stiinta Si Practica, nr. 3-4 (83-84)/2012, pp. 203-206
Nikola Draskovic, John Temperley & Jurica Pavicic, Comparative perceptions of consumers goods
packaging croatian consumer perspective(s). International Journal of Management cases, pp.
154 – 163
Pradeep Agrawal (2011). The never ending Pepsi vs. Coke –War. The IUP Journal of advertising,
April 2011.
Seema Gupta, Moutusymaity & Satish C Pandey, Sponsor, Ambusher and other consumer response
to three strategies. Vikalpa, Vol 39, No. 1, Jan-March -2014, pp. 75-86.
S.P.Karuppasamy Pandian & S.P.NivethaVarthani(March2013), An empirical study on retailer’s
perception towards Pepsi in Tiruchirappalli district. Asia Pacific Journal of Markeing and
Mangement Review, Vol 2(3), pp 13-22.
Vivekgupta (2003). Coke – ethical issues. Case study series – Business Ethics and Corporate
Governance, the ICFAI Press, Vol I, pp. 1-16.
Victoria Johnson &Spero.C.Peppas (2003), Crisis management in Belgium: the Case of Coca-Cola.
Corporate Communication: An international Journal, Vol 8, No. 1, pp. 18-22.
V.V.Devi Prasad Kotni (June 2014), Perception of the retailers towards marketing mix strategies:
An empirical case study on the soft drink market in Visakhapatnam. Indian Journal of
marketing, pp. 24-36.

124
Rahul Singh & Dr.Jeet Singh (2015), An Empirical Research On Customers’ Preference towards
Organised and Unorganised Retail in Moradabad City. International Journal of Research in
Finance and Marketing (IJRFM), Volume 5, Issue 1, pp. 35-51, January 2015, (ISSN 2231-
5985) IMPACT FACTOR: 4.088
Retrieved on 27 March, 2015 from http://www.euroasiapub.org/IJRFM/jan15/5.pdf
Rakesh.T.S(2017), Marketing of soft drinks by domestic soft drink companies in Karnataka,
University of Mysore, available at http://hdl.handle.net/10603/255149
Solaiman, M., & Chowdhury, M. T. (1996). Marketing of soft drinks in Bangladesh: A case study
of Eastern beverage industry Ltd. in Chittagong. Journal of Marketing Studies, 1.
Swadling, I. (2000), Soft drinks industry. Food Engineering and Ingredients, 25(5), 57–8.
Sahoo, D., & Chaithanya, B. A. (2014). Motivating Factors behind sale of cold drinks in South
India Market. Romanian Journal of Marketing, (4), 33.
Ulas, D., & Bader Arslan, H. (2006). An empirical investigation of Turkish cola market. British
Food Journal, 108(3), 156–16.

125
 Chapter 13

Decoding Entrepreneurial Orientation from Chairman’s

Letter: A Study of Indian Corporates
Aswini Kumar Bhuyan,
FPM Scholar, International Management Institute, Bhubaneswar,
E-Mail – [email protected]
ORCID ID: https://orcid.org/0000-0002-5995-2335

Dr. Sabat Kumar Digal*

Associate Professor, P. G. Department of Commerce,
Rama Devi, Women’s University, Vidya Vihar, Bhubaneswar - 751022,
E-Mail – [email protected]
ORCID ID: https://orcid.org/0000-0002-6762-6732

*Corresponding author

Abstract
Qualitative information from the annual reports provides unique and useful information about
the corporates. The Chairman’s letter, which is one of the voluntary and qualitative sections of
the annual reports, has been taken for the study. Short et al.'s word list was used to quantify the
entrepreneurial orientation of the Chairman’s letter. The study focuses to see the difference in
entrepreneurial orientation between the top and least 50 companies and see whether an
association between entrepreneurial orientation and firm performance exists. Based on the one-
year market performance of Nifty 500 companies, the top and least 50 companies were selected
as the sample. Data for the study were collected from the Bloomberg database. The CATA
software CAT scanner and statistical software SPSS were used for analysis. Analysis showed
that only the innovativeness score of top-performing companies was significantly different
from least performing companies. This study will be beneficial for the common investors
having little knowledge of finance. By studying the chairman’s letter with the Short’s word
list, one could get a broad idea about the company.

Keywords: Entrepreneurial Orientation, Chairman’s Letter, Annual Report, India.

1. Introduction
Since the beginning of the twenty-first century, scholarly attention on entrepreneurship is well
documented. The main motivation for this attention is the growing importance of
entrepreneurship on economic growth (Turker and Selcuk, 2009). Entrepreneurship is a source
of value creation (Fini et al., 2012), that boosts the economy and creates scope for new
industries in the country (Nian et al., 2014) and creates wealth and employment for the society
(Aliouat and Ben Cheikh, 2009). In this perspective, entrepreneurship is defined “as a way of
thinking and a mindset that emphasizes opportunities over threats in the context of a business”
(Krueger et al., 2000).

The critical driver for sustainable business performance is information exploitation

(Capgemini, 2008). Financial disclosures of corporates consist of numerous and sometimes
contradictory information. Hence, it is important to study thoroughly the qualitative

126
information provided by the firm. Corporates provide two types of disclosures a) statutory
disclosures such as director’s report, corporate governance report, auditor’s report, etc. and b)
non-statutory disclosures such as business overview, Chairman’s letter, etc.

Chairman’s letter is commonly read section by different stakeholders, even though it is not
formally audited (Clatworthy and Jones, 2003). As it appears, it could be termed as the preface
to the annual report. It is titled as President’s letter, CEO’s letter, CMD’s letter, address to
Shareholders, etc. As the entrepreneurial orientation (EO) was measured using Shareholder
letters (McKenny et al., 2018), this paper takes this section for the study. It is also important
because it talks about the present performance and future prospective of the performance.

2. Literature Review
Mitchelmore and Rowley (2010) argued that the relationship between entrepreneurial
performance and business success requires to be studied extensively due to its practical
orientation. Khanka (2009) investigated the context-specific correlation with entrepreneurial
performance in a less developed region. Cummins and Bawden (2010) studied annual reports
of the Financial Times Stock Exchange (FTSE) 100 Index and surveyed the information (i.e.,
both quantitative and qualitative information) presented and established the relationship
between the information and financial performance of the firms. Laforet (2011) found the
positive outcomes of innovation in small and medium-sized enterprises (SMEs) that are related
to human resources and negative outcomes that are related to operational and financial issues.

The entrepreneurial intentions (EO) are categorized into impulsive entrepreneurial intention
and deliberate entrepreneurial intention (Quan, 2012). Impulsive entrepreneurial intention
depicts the desire to start a new venture influenced by personal characteristics and cultural
background. Anwar, Clauss and Issah (2022) found the EO contributing indirectly to the new
ventures’ performance. The firms with high EO have the potential to exploit the opportunities
and enjoy the superior performance (Anwar et al., 2022). The Government and incubators are
required to provide entrepreneurial training programmes to youths as the training programmes
significantly impact the youths’ cognitions (Boukamcha, 2015). Xiao, Chen, Dong and Gao
(2022) studied the impact of institutional support on three EO dimensions i.e., proactiveness,
innovativeness and risk-taking in emerging economies during the industry life cycle. The
conduct of several training programmes containing case studies, success stories and
conferences that make the youth more enthusiastic about entrepreneurship (Boukamcha, 2015).
The institutional support and EO dimensions have a stronger relationship in the slow-growing
stage (Xiao et al., 2022).

The relationship between overconfident financial forecasts and subsequent firm failures was
studied (Invernizzi et al., 2017) and found that overconfident forecasts are directly associated
with firm failure. In an in-depth case study, the EO dimensions have changed from direct
solution orientation to intangible value creation orientation. Adomako, Amankwah-Amoah,
Danso and Dankwah (2021) added the sustainability orientation with the EO to explore the
firm environmental performance. Ciabuschia et al. (2020) studied the pharmaceutical industry
and advocated that innovativeness, i.e., entrepreneurially oriented firms performed better than
the firms with no or lack of EO. Khan and Bashir (2020) found that social EO have full
mediation in presence of learning orientation on the firm performance. Cooperative principles
in the presence of EO of cooperatives positively and significantly impacts the performance
(Guzmán, Santos & Barroso, 2020). Dhaouadi (2021) found that EO directly contributes to
market performance. After introducing learning orientation and innovative performance as

127
mediating variables all the paths are significant making it a partial mediation scenario. EO
contributes to market performance directly and indirectly. Therefore, in this study, the
motivation is to study the qualitative information, i.e., the EO of the annual reports of Indian
listed companies and to link it with the future firm performance. To capture the EO, we used
the (Short et al., 2010) approach.

3. Research Questions
Clatworthy and Jones (2003) argued that the qualitative communication style of profitable
companies was significantly different from loss-making companies. Kohut and Segars (1992)
used discriminant analysis of the President’s letter and correctly classified 78 per cent of the
Corporates. As the Chairman’s letter talks about the present and expected future firm
performance, the EO will differ between the top and least performing companies. So, the first
research question is:
RQ1. Is there any significant difference in EO between top-performing and least
performing companies?
Ciabuschia et al (2020) argued that EO (innovativeness) and future firm performance are
positively related. Invernizzi et al. (2017) found overconfident forecasts directly associated
with firm failure. Poon et al. (2006) argued EO is positively associated with firm performance.
Hence, the second research question is:
RQ2. Is there any significant association between EO and the future performance of
the companies?

4. Methodology
Sample Selectison
The Chairman’s letters of Indian listed companies were taken for the study. A sample of 50
top-performing companies and 50 least performing companies based on stock returns of NSE
Nifty 500, (Dikshita and Singh, 2019; Reddy, 2019) during 2017-18 was taken for study. The
Bloomberg database was used as the source for annual reports and other financial information.
The financial services companies were excluded because they follow different disclosure
practices and reporting norms. As the Chairman’s letter is a disclosure, which is voluntary in
nature, 16 companies (i.e., 14 from top-performing companies and two from least performing
companies) were excluded from the sample, as Chairman’s letters were not available for these
companies. The extreme outliers of the companies were excluded based on the standardized
score of stock return at a 95 per cent confidence interval. Therefore, 33 top-performing
companies and 30 least performing companies constituted the final sample. Details of sample
selection are given in Table 1.

Table 1: Sample Selection

No. of Top Performing No. of Least Performing
Particulars
Companies Companies
Initial Sample 50 50
Financial Companies 01 18
Absence of Chairman’s Message 14 02
Extreme Outliers 02 00
Final Sample 33 30

128
Source: Compiled by Authors

Financial Performance Measures

The financial performance of an entity can be measured in various ways. This study defines
financial performance in two ways: a) market-based performance measure and b) accounting-
based performance measure. Stock return is a market-based performance measure while Return
on Equity (RoE) and Return on Asset (RoA) are accounting-based performance measures.
Market-based measures are free from accounting constraints and show market efficiencies (Ha
et al., 2019). The stock return is calculated as the difference in stock price over the period
divided by price at the initial period. RoE and RoA are measured to evaluate accounting-based
performance measures with the argument that these are least likely to be manipulated as
compared to other measures (Ha et al., 2019). RoE is measured as the ratio of the company’s
earnings after tax to shareholders' funds. The ratio of a company’s net income to average total
assets value is termed ROA. Future financial measures for the financial year 2018-19 were
taken and the RoA, RoE and Stock returns were extracted from the Bloomberg terminal. RoA
is the net income to average assets for the year. RoE is the net income to average equity and
Stock returns is annualized stock return by adjusting dividend, split and other corporate
activities.

Entrepreneurial Orientation
Entrepreneurial orientation, a construct, has five dimensions such as autonomy, competitive
aggressiveness, innovativeness, pro-activeness, and risk-taking (Lumpkin and Dess, 1996;
Short et al., 2010; McKenny et al., 2018). Lumpkin and Dess (1996) described these five
dimensions as (a) Autonomy: “the independent action of an individual or a team in bringing
forth an idea or a vision and carrying it through to completion”; (b) Innovativeness: “a firm’s
tendency to engage in and support new ideas, novelty, experimentation, and creative processes
that may result in new products, services, or technological processes”; (c) Risk-taking: “the
firm’s proclivity to engage in risky projects and managers’ preferences for bold versus cautious
acts to achieve firm objectives”; (d) Proactiveness: “acting in anticipation of future problems,
needs, or changes”; and (e) Competitive aggressiveness: “a firm’s propensity to directly and
intensely challenge its competitors to achieve entry or improve position to outperform industry
rivals in the marketplace”

The dimensions of EO are measured with the proportional word counts of the respective
dimensions to total word counts in the Chairman’s letter. For gauging the word counts the
CATA software is used. CATA is a promising and useful measurement approach. However, to
leverage its strengths, there is a need to understand how to identify and minimize key sources
of measurement error. To measure EO, we used word lists developed and validated by (Short
et al., 2010). The CATA software, CAT scanner developed (McKenny and Short, 2018) is used
to quantify EO using the test of the shareholder letters (McKenny et al., 2018). For statistical
analysis i.e., independent samples t-test, Pearson correlation and the statistical software SPSS
were used.

5. Data Analysis and Findings

Table 2 shows the descriptive statistics of 33 top and 30 least performing companies. Overall,
the Chairman’s letter word size differs from 214 to 3044, with a mean of 976 words. The
average size of the Chairman’s letter for top-performing and least performing companies is
1094 and 861, respectively. The average autonomy score is 0.29 and 0.28 for top and least

129
performing companies, respectively. The innovativeness score is the highest among all other
dimensions score of EO. The overall score of innovativeness is 6.33 with 7.58 and 5.13 being
the score for top-performing and least performing companies. Every EO dimension of top-
performing companies is higher for least performing companies. The future accounting
measures i.e., RoA and RoE are better for least performing companies (7.73 per cent and 16.22
per cent) as compared to the top-performing companies (4.35 per cent and 7.44 per cent). But
the market-based performance measure is superior for top-performing companies (0.59 per
cent) than the least performing companies (-11.63 per cent).

Table 2. Descriptive Statistics

Futur Futur Futur

e e e

Aggressiveness

Innovativeness

Proactiveness
Total Words

Competitive

RiskTaking
Autonomy
ROA ROE Stock
(in (in Retur
per per n
cent) cent) (in
per
cent)
1094.0 0.2 0.5
1.45 7.58 1.39 4.35 7.44 0.59
Least Performing

Mean 0 9 5
Std. 0.5 1.1
(N=30)

Deviation 675.92 9 1.96 5.45 2.58 8 7.87 15.99 41.48

0.0 0.0
Minimum 214.00 0 0.00 0.00 0.00 0 -15.28 -37.05 -68.69
3044.0 2.0 19.0 14.0 5.0
Maximum 0 0 9.00 0 0 0 20.58 31.33 96.73
0.2 0.4
Mean 860.84 8 1.34 5.13 0.84 7 7.73 16.22 -11.43
Top Performing

Std. 0.4 0.9

(N=33)

Deviation 447.92 6 1.68 3.74 1.02 2 6.67 13.25 24.07

0.0 0.0
Minimum 253.00 0 0.00 1.00 0.00 0 -6.10 -31.17 -49.20
2008.0 1.0 14.0 4.0
Maximum 0 0 7.00 0 3.00 0 25.16 38.88 40.62
0.2 0.5
975.57 1.40 6.33 1.11 6.07 11.97 -5.51
Mean 9 1
Overall (N=33)

Std. 0.5 1.0

Deviation 578.95 2 1.81 4.79 1.95 5 7.42 15.18 34.04
0.0 0.0
Minimum
214.00 0 0.00 0.00 0.00 0 -15.28 -37.05 -68.69
3044.0 2.0 19.0 14.0 5.0
Maximum 0 0 9.00 0 0 0 25.16 38.88 96.73
Source: Compiled by Authors

Independent samples t-test was run to see which dimension(s) of EO significantly differ
between the top and least performing companies (Table 3). Out of the five dimensions, only
the innovativeness (t =2.08) dimension significantly differed between the top and least
performing companies. It depicts that the top-performing companies were more innovative in

130
their usage of words than the least performing companies. Innovativeness related words
depicted by the Chairman are innovative about the future firm performance.

Table 3. Independent Samples t-Test

F Sig. t df Sig. (2-tailed)

Autonomy 0.37 0.55 0.07 61.00 0.95
Competitive Aggressiveness 0.21 0.65 0.23 61.00 0.82
Innovativeness 6.86 0.01 2.08 52.94 0.04
Proactiveness 1.50 0.22 1.11 61.00 0.27
Risk Taking 0.58 0.45 0.30 61.00 0.77
Source: Compiled by Authors

The Pearson correlation is run to study the association of the EO of the Chairman’s letter with
the future firm performance measures as shown in Table 4. The autonomy is negatively
correlated (r = - 0.27) with future ROE at a 5 per cent significance level. Competitive
aggressiveness is negatively correlated (r = - 0.36) at 1 per cent significance level. Risk-taking
is the only measure that is adversely associated with all the financial measures at a 90 per cent
confidence interval. All the dimensions, except proactiveness, are negatively correlated to
future accounting measures. The innovativeness and proactiveness are positively correlated
with the future market performance measures i.e., stock return.

Table 4. Pearson Correlations

Autonomy Competitive Innovativeness Proactiveness Risk

Aggressiveness Taking
Future ROA -0.15 -0.36 -0.19 0.00 -0.21
Sig (2 tailed) 0.25 0.00 0.14 0.97 0.10
Future ROE -0.27 -0.10 -0.08 0.01 -0.24
Sig (2 tailed) 0.04 0.46 0.56 0.97 0.07
Future Stock
Return -0.10 -0.04 0.08 0.16 -0.21
Sig (2 tailed) 0.45 0.76 0.53 0.21 0.09
Source: Compiled by Authors

6. Conclusion and Research Implications

Out of five entrepreneurial dimensions only one dimension i.e., innovativeness score differs
between the top-performing and least performing companies. The EO (Innovativeness) score
of the top-performing company is significantly higher. The top-performing companies use
more innovative language while communicating with the shareholders. But the innovativeness
dimension and future firm performance measures are not significantly associated. Usage of
competitive aggressiveness and risk-taking dimensions’ words in the Chairman’s letter
inversely affects future RoA. Likewise, future RoE and autonomy words are negatively
associated. An autonomy or/and a competitive aggressive, EO company is likely to perform
badly in future (Invernizzi et al., 2017). The risk-taking dimension of EO is negatively
associated with future firm performance measures. The association depicts the Chairman using
more risk-taking words in the Chairman’s letter is likely to affect inversely the investors.

131
Investors should not be swayed by the accounting figures but rather be more careful while
investing in the company. This study will be beneficial for the common investors having little
knowledge of finance. By studying the Chairman’s letter with the Short word list, one could
get a broad idea about the company.

7. Scope for Future Studies

Like any other study, this study is also not without limitations. The study period is only one
year with small sample size. Future studies can take a longer period with a large sample size to
generalize the findings. The study focuses on Chairman’s message, which can be extended to
other accounting narratives based on industry. Future studies may also build explanatory
models taking EO dimensions as variables to explain firm performance.

References
Adomako, S., Amankwah-Amoah, J., Danso, A., & Dankwah, G. O. (2021). Chief executive
officers’ sustainability orientation and firm environmental performance: Networking and
resource contingencies. Business Strategy and the Environment, 30(4), 2184–2193.
https://doi.org/10.1002/bse.2742
Anwar, M., Clauss, T., & Issah, W. B. (2022). Entrepreneurial orientation and new venture
performance in emerging markets: The mediating role of opportunity recognition. Review of
Managerial Science, 16(3), 769–796. https://doi.org/10.1007/s11846-021-00457-w
Boukamcha, F. (2015). Impact of training on entrepreneurial intention: An interactive cognitive
perspective. European Business Review, 27(6), 593–616.
Ciabuschi, F., Baraldi, E., Lindahl, O., & Callegari, S. (2020). Supporting innovation against the
threat of antibiotic resistance: Exploring the impact of public incentives on firm performance
and entrepreneurial orientation. Journal of Business Research, 112, 271–280.
https://doi.org/10.1016/j.jbusres.2019.12.021
Clatworthy, M., & Jones, M. J. (2003). Financial reporting of good news and bad news: Evidence
from accounting narratives. Accounting and Business Research, 33(3), 171–185.
https://doi.org/10.1080/00014788.2003.9729645
Cummins, J., & Bawden, D. (2010). Accounting for information: Information and knowledge in
the annual reports of FTSE 100 companies. Journal of Information Science, 36, 283–305.
Dhaouadi, K. (2021). How Entrepreneurial Orientation Impacts Market Performance? The Serial
Mediation of Learning Orientation and Innovative Performance. Journal of Managerial Issues,
33(4), 350–369.
Dikshita, & Singh, H. (2019). Estimating and Forecasting Volatility Using Arima Model: A Study
on NSE, India. Indian Journal of Finance, 13(5), 37–51.
https://doi.org/10.17010/ijf/2019/v13i8/144184
Fini, R., Grimaldi, R., Marzocchi, G. L., & Sobrero, M. (2012). The determinants of corporate
entrepreneurial intention within small and newly established firms. Entrepreneurship Theory
and Practice, 36(2), 387–414.
Guzmán, C., Santos, F. J., & Barroso, M. de la O. (2020). Analysing the links between cooperative
principles, entrepreneurial orientation and performance. Small Business Economics, 55(4),
1075–1089. https://doi.org/10.1007/s11187-019-00174-5
Ha, H. T. V., Van, V. T. T., & Hung, D. N. (2019). Impact of Social Resonsibility Information
Disclosure on the Financial Performance of Enterprises in Vietnam. Indian Journal of Finance,
13(1), 20–36. https://doi.org/10.17010/ijf/2019/v13i1/141017

132
Invernizzi, A. C., Menozzi, A., Passarani, D. A., Patton, D., & Viglia, G. (2017). Entrepreneurial
overconfidence and its impact upon performance. International Small Business Journal:
Researching Entrepreneurship, 35(6), 709–728. https://doi.org/10.1177/0266242616678445
Khan, I., & Bashir, T. (2020). Market Orientation, Social Entrepreneurial Orientation, and
Organizational Performance: The Mediating Role of Learning Orientation. Iranian Journal of
Management Studies, 13(4), 673–703. https://doi.org/10.22059/ijms.2020.289467.673800
Khanka, S. S. (2009). Correlates of Entrepreneurial Performance in a Less Developed Region:
Evidence from Assam. Vision-The Journal of Business Perspective, 13(4), 25–34.
https://doi.org/10.1177/097226290901300403
Kohut, G. F., & Segars, A. H. (1992). The president’s letter to stockholders: An examination of
corporate communication strategy. International Journal of Business Communication, 29(1),
7–21.
Krueger, N., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial
intentions. Journal of Business Venturing, 15(5), 411–432.
Laforet, S. (2011). A framework of organisational innovation and outcomes in SMEs. International
Journal of Entrepreneurial Behaviour & Research, 17(4), 380–408.
https://doi.org/10.1108/13552551111139638
Ljungkvist Torbjörn, Boers Börje, & Samuelsson Joachim. (2019). Three stages of entrepreneurial
orientation: The founder’s role. International Journal of Entrepreneurial Behavior & Research,
26(2), 285–306. https://doi.org/10.1108/IJEBR-10-2018-0630
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and
linking it to performance. Academy of Management Review, 21, 135–172.
McKenny, A. F., Aguinis, H., Short, J. C., & Anglin, A. H. (2016). What Doesn’t Get Measured
Does Exist: Improving the Accuracy of Computer-Aided Text Analysis. Journal of
Management, 44(7), 2909–2933. https://doi.org/10.1177/0149206316657594
Mitchelmore, S., & Rowley, J. (2010). Entrepreneurial competencies: A literature review and
development agenda. International Journal of Entrepreneurial Behaviour & Research, 16(2),
92–111. https://doi.org/10.1108/13552551011026995
Nian, Y. T., Bakar, R., & Islam, M. A. (2014). Students’ perception on entrepreneurship education:
The case of Universiti Malaysia Perlis. International Education Studies, 7(10), 40–49.
Poon, J. M. L. ., Ainuddin, R. A., & Junit, S. H. (2006). Effects of Self-concept Traits and
Entrepreneurial Orientation on Firm Performance. International Small Business Journal,
24(1), 61–82. https://doi.org/10.1177/0266242606059779
Quan, X. (2012). Prior experience, social network, and levels of entrepreneurial intentions.
Management Research Review, 35(10), 945–967.
https://doi.org/10.1108/01409171211272679
Reddy, C. V. (2019). Predicting the Stock Market Index Using Stochastic Time Series Arima
Modelling: The Sample of BSE and NSE. Indian Journal of Finance, 13(8), 7–25.
https://doi.org/10.17010/ijf/2019/v13i8/146301
Short, J. C., Broberg, J. C., Cogliser, C. C., & Brigham, K. H. (2010). Construct validation using
computer-aided text analysis (CATA): An illustration using entrepreneurial orientation.
Organizational Research Methods, 13, 320–347.
Turker, D., & Selcuk, S. S. (2009). Which factors affect entrepreneurial intention of University
students? Journal of European Industrial Training, 33(2), 142–159.

133
Xiao, Z., Chen, X., Dong, M. C., & Gao, S. (2022). Institutional support and firms’ entrepreneurial
orientation in emerging economies. Long Range Planning, 55(1), 102106.
https://doi.org/10.1016/j.lrp.2021.102106

134
 OPINION
ENTREPRENEURSHIP – TIME TO SHIFT FROM STEAM
ENGINES TO DIESEL ENGINES

Manoj Lal
Chief General Manager, The National Small Industries Corporation Ltd.( NSIC)
(A Government of India Enterprise)
NSIC Bhawan, Okhla Industrial Estate, New Delhi – 110 020, India
Email: [email protected]

Overview
The Entrepreneurship growth runs parallel to infrastructure growth. From connectivity,
warehousing to sophisticated manufacturing facilitates, clusters and utilities have become the
base line to compete globally. Investment in infrastructure, skills and training is the need of the
hour. Hence the endeavour of the state should be to move in the direction where the assets are
held by long term financial investors and providing cheap capital to the end user or
entrepreneur. the government should therefore develop plug and play infrastructure with ready
to move in factories equipped with advanced utilities and an affordable pricing structure. this
would host a diverse base of entrepreneurs, local suppliers and anchor units

On the other hand, the state should highlight industries meet the talent shortfall with ready
access to unskilled, semi-skilled and skilled talent across all sectors. Alongside it will also
allow the youth of the state to list their skill sets with the state. This will help the country
achieve an optimal mix of utilisation and boost manufacturing productivity and employment.

Some other initiatives which can create a friendly ecosystem are through the development of
industrial clusters as export processing zones, improving the investment readiness of the
clusters by developing them to make them more attractive to external investments amongst
other things providing designated chemical zones, commissioning and management of
Common Effluent Treatment Plants and Waste treatment , storage and disposal facilities for
effective treatment of Industrial wastes , 24x7 power and water supply through dedicated
feeders. The state should also develop land banks along different expressways in each state and
around each railway station in the country. These land banks would be utilised for setting up
industrial units in the future on the demand of entrepreneurs.

On Ground Scenario today

Today the High –frequency economic data suggests the Indian economy has crossed an
important milestone. Although the recovery may not be durable in the absence of adequate
purchasing power in a vast section of the workforce but India is on the highway of economic
recovery led by manufacturing and digital led businesses.

India weathered the intense second Covid wave better than expected, largely because
governments avoided harsh lockdowns. The appropriate benchmark, however, is pre-pandemic
performance and not year-on-year comparisons. By that measure, India is likely to exceed the
pre-pandemic output by the end of the financial year. RBI’s October 2021 Bulletin indicated
that its economic activity index pointed to a GDP growth of 9.6% in the July-September

135
2021quarter. By September-October, Google mobility levels had crossed pre-pandemic levels
and CMIE’s employment data corroborated normalcy’s return.

The pandemic led India to witness a great leap in the digital revolution and move towards
adopting next generation technologies. In a recent survey commissioned by Master Cards, 93
% Indians were likely to have used at least one mode of digital payment in last one year. The
Public sector Banks too are fast adapting to digital means as they have cleared digital lending
of Rs.83091 crores in the fiscal year to March 2022. As a part of Ease4.0 reforms, the state
owned banks have been asked to focus on digital lending, colliding with non-banking firms,
agriculture financing and technological resilience for 24x7 banking. Hence the future belongs
to those stressing on Data Analytics, Automation and digitisation

Similarly, while the initial idea was to implement one national GST given the federal structure
of our country and the demands raised by various states, a dual GST was adopted. The Centre
and the state governments now have equal tax jurisdiction across goods and services and have
equal right to levy GST on the supply of taxable goods or services on intra-state transactions
i.e., on consumption in the destination state rather than the producing state.

Unlike in the previous indirect tax regime where the tax base for levying excise duty and the
state value-added tax (VAT) was different, the GST regime levies on a common base and
integrated goods and services tax (IGST) is levied by the central government, proceeds of
which are equally shared between the Centre and the states.

While this looks simple as a concept, it is being implemented in the same old structure-a
taxpayer having pan-India presence still needs to obtain as many state goods and services tax
(SGST) registrations and track all of them separately besides the central goods and services tax
(CGST) and IGST. This was the case in the VAT regime as well where the taxpayer was
required to follow as many states VAT laws. Although the SGST laws and procedures are
uniform across the country unlike the state VAT laws. This mechanism has made life easier for
the taxpayers and has reduced the anxieties and uncertainties surrounding the compliance
procedures. However, the payment of GST, filing of returns, etc., have to be undertaken state-
wise and not altogether.

Today the era of doing survey is behind us and with tons of data around us the “Data is the
New Oil” and is can easily predict how business are increasingly done to the customers delight.
India is also pushing hard to realign the supply chains and build local strength to strengthen
them with various incentives like production linked incentives

However, we still need to streamline the traditional competition arising out of revenue concerns
of the Centre and states such as a non-vatable cess can be levied over and above GST to be
divided between the Centre and states. These levies will also play the role of carbon tax and
promote de-carbonization, thus, help India achieve the Paris Agreement commitments. A
suitable non-vatable cess also needs to be levied on coal to promote de-carbonization. The
biggest beneficiary of this change would be the logistics sector, which becomes an important
input for almost all the businesses as also for those sectors that have high cost of operations
like airlines, pharmaceuticals, electricity, alcohol They should be allowed to claim input tax
credits of GST paid, thereby, reducing the cost of operations, inefficiencies and cost
escalations. The task force on GST and the 13th Finance Commission observed that the impact
of embedded taxes in power generation and distribution could account for up 30% the cost of
production and distribution. If electricity is brought under GST, it will substantially enhance

136
the cost efficiency as electricity is an input to almost all the trade and industry. Particularly,
this can have a positive impact on labour intensive industries such as textiles, boosting exports
especially in sectors where other countries are vacating its presence.

It has also been observed that the GST revenues for states have come under pressure during the
pandemic and it is imperative that the states have a few additional sources of revenue to sustain
their developmental agenda and provide resources for extended support during natural
calamities. Bringing real estate into the GST fold fully will also uplift tax revenues
significantly. The real estate sector is notorious for large unaccounted money transactions.
While the Real Estate Regulatory Authority (RERA) regulations were introduced a few years
back to enhance transparency, an end-to-end tracking of the money from the land owner, sand
supplier to the interior decorator is necessary to unplug rampant tax leakage. The state level
stamp duty needs to be consumed within GST. This measure will boost the housing sector,
thereby, providing employment to a large number of skilled and unskilled workers. These
reforms will also enable the urban local bodies to mobilize higher amount of property taxes.

Further, Most of the high value transactions are now being covered by the e –invoicing
mechanism. It would therefore be ideal that the generation of e-way bill for those who are
covered by the e-invoicing mechanism should be done away with. This will ease the burden of
compliance for taxpayers.

The Indian GST has been hailed as one nation, one tax since its inception. Indeed, there are no
other taxes levied on the supply of goods and services that are under the purview of GST and
the state GST rates, which are now uniform across all the states and UTs. However, businesses
operating in more than one state or UT have to obtain the goods and services tax identification
number, or GSTIN, for each of the states and UTs. They also have to file GST returns on the
GST portal state-wise or UT-wise using as many usernames and pass words based on the
number of states and UTs they operate in. This has resulted in cumbersome compliance. This
has also not helped in reducing compliance costs. In fact, in some cases, compliance costs have
gone up substantially given the sheer number of state wise reconciliations that are required to
be performed, month-on-month and annually. A single PAN –based GST login and password
should be provided without the need for businesses to use state-wise login and password for
compliances on the GST portal. A taxpayer having pan India operations should be able to
access the GST portal with a single click for all states. This one change itself will provide huge
relief to businesses.

Yet another compliance issue is audits. Currently, GST audits can be undertaken by both the
central as well as the state GST authorities. There has to be a mechanism in place to ensure that
there are no dual audits undertaken for the same taxpayer which may lead to unnecessary
burden. The current bifurcation of the taxpayers, done between the central GST authority and
the state GST authorities could be followed for conducting the audits. Or, a turnover threshold-
based system could be designed to divide the audit activity. All taxpayers having turnover
above a particular threshold Rs. 10 Crore, for example, can be audited by the central GST
authorities. The audit program should be consistent across the country and a national audit GST
manual should be designed to be followed by audit officers.

The future
A shift from the steam engines to diesel engines indicates efficiency in the production of output
as the Train is able to carry more passengers with the improvement in the Technology. In

137
 addition to handle on going or similar pandemic situation effectively in future, the need is also
to push for automation and digitisation as it would ensure efficiency .there is going to be more
flexibility in working conditions with concepts like Work from Anywhere gaining attraction
.The digitisation and automation will become the most important driver of efficiency for
scaling up entrepreneurs and would facilitate them in creating jobs. this along with flexibility
of working conditions for employees will become integral to any enterprise operations.” Smart
Factories, Smart Working and Smart Office” will thus constitute a part of any operating
dynamics. Climate change would be another important aspect and the entrepreneurship would
need to aligns one’s product and process with Carbon neutrality targets, renewable power,
green hydrogen, Environmental, Social and Governance factors.

In the past few years, India has been a nurturing ground for numerous start-ups (High Risk and
High Return category) which however are merely clone of western ideas. The lack of Technical
know innovation in India has led to venture capitalist restructure funding resulting in the decay
of entrepreneurship in India. The ideal way to finance start-ups can be through development
banks. (The regular commercial banks come under “low risk, low return category”).
Alternatively mutual funds can be encouraged to float separate schemes for financing such
ventures and investors would be keen to invest in them also Entrepreneurship financing should
be included under “priority lending” segment of the Bank.

Therefore, it is my belief that with investment in infrastructure, access to affordable financing

options, skill upgradation & training and dedicated relationship management the
entrepreneurship can jump to the next level of being truly magnetic for India’s youth.
-------
(The contents of the analysis is based on multiple sources, feedback and personal experience
of the author)

138

View publication stats