ISSN Print:

ISSN Online: DEVELOPMENT OF AGRICULTURE IN INDIA

Impact Factor:
Received: THROUGH AGRIPRENEURS
Accepted:

M.KASI VISHWANATH

Abstract
The study is intended to find out the role of Agripreneurs in agriculture
M.K.Vishwanath development in India. Entrepreneurship has been named as one of the key driver for
Assistant economic development. During an economic crisis, when development is negative, the
importance of entrepreneurship development has increased. During recent worldwide
Professor financial turbulence the importance of entrepreneurship has never been more obvious.
Dr.K.V.Subba Entrepreneurship has been linked to amplified growth, increased aggressiveness of
Reddy School o f countries, increased creation of wealth and increased quality of life. After economic
liberalization, entrepreneurial activity is playing a major role in socioeconomic. In
Business developing countries like India for raising the living standard of the vast majority of the
Management backward regions, planning and implementation for development of entrepreneurial
J N T U A Univ programmes are essential because of their over-dependence on agriculture for
employment Thus entrepreneurship development in rural industries appears to be the
ersity, Kurnool- best potential alternative to find employment avenues for the rural population. The
518218 importance of entrepreneurship development in agricultural sector and business planning
for agricultural firms-from input traders to producers to processors and the steps required to
prepare a thorough business plan.

Keywords: Entrepreneurship, Agriculture, Economic, countries, Liberalization, growth

Employment, rural, Population, Business

Introduction
One in every two Indians relies on agriculture for live hood. Agriculture
landscape has changed drastically, since this intervention that a second green revolution is
going to need an entirely new approach and an entirely new set of technology. A period
when the productivity of global agriculture increased drastically as a result of new
advance. We believe entrepreneurs are the key drivers of tomorrow innovations and
integral to creating a thriving economy.
In agricultural businesses, planning may be even more fundamental because of
the inherent ambiguity associated with agricultural production. Some significant sources
of uncertainty include production risk, price risk, financial (interest rate) risk, and changes
in government programs. In India, 52% of total land is cultivable as against 11% in
the world. Large population of India is dependent on agriculture for their source of
revenue. But Indian agricultures low in productivity with large number of
disguised unemployment. Entrepreneurial development is a systematic and a controlled
development of a person to an entrepreneur. The development of an entrepreneur refers
to inculcate the entrepreneurial skills into a common person, providing the desirable
knowledge, getting higher the technical, financial, marketing and managerial expertises,
and building the entrepreneurial approach. Entrepreneurial development programmes may
be defined as a program designed to help an individual in strengthening his entrepreneurial
motive and in acquiring skills and capabilities necessary for playing his entrepreneurial
role effectively. This situation can be changed by generating employment opportunities
for them in rural areas itself. Agro entrepreneurship can be used as paramount
medicine for the solution of this complexity. Developing entrepreneurs in agriculture
will solve the entire problem.
(a) Trim down the burden of agriculture
(b) Create employment opportunities for rural youth
(c) Control migration from rural to urban areas
(d) Increase national income
(e) Sustain industrial development in rural areas
(f) Cut down the pressure on urban cities etc.
Why Agricultural Entrepreneurship?
Traditionally, agriculture seen as a low-tech industry
with limited dynamics dominated by numerous small
family firms, which are mostly paying attention on doing
things better rather than doing novel things. Over the last
decade, this situation has changed dramatically due to
economic liberalization, a reduced shelter of agricultural
markets, and a fast changing, more decisive,
society. Agricultural companies progressively more have
to adapt to the vagaries of the market, varying
consumer lifestyle, enhanced ecological regulations, new
necessities for product quality, chain management, food
security, sustainability, and so on. These alterations have
cleared the way for new participator, innovation, and
portfolio entrepreneurship.
Concept of Agripreneur
Agripreneur defined as “entrepreneur whose main business
is agriculture or agriculture-related” Agriculture +
Entrepreneur = Agripreneur
Concept of Agripreneurship
Agripreneurship defined as “generally, sustainable,
community-oriented, directly-marketed agriculture.
Sustainable agriculture denotes a holistic, systems oriented
approach to farming that focuses on the interrelationships of
social, economic, and environmental processes”.
Agripreneurs World Wide
In China, Cargill is collaborating with the Coca-
Cola Company and the World Wildlife Fund to help
smallholder corn farmers improve their livelihoods through
training and information in techniques to progressive
yields, conserve water, improve crop repertory, keep
wetlands, and decrease the environmental shock of
agriculture in Jilin Province. Only in its initial year, the
venture has already reached 6,000 farmers. Their knowledge
shows that the private sector – as well as some 450
million smallholder farmers and entrepreneurs in the
worldwide food chain – can be an engine to ease lack
of food and scarcity. However, there are preconditions for
long-term achievement. Surrounded by the most critical are
policy frameworks that enable smallholder farmers to
evolve into commercially viable businesses – policies
that include property rights, markets and buy and sell,
infrastructure and outlay and threat management. There is
plenty and compelling proof that investing in agricultural
intensification is among the most effective means to reduce
global poverty and hunger and save the ecology. Doing it all
right requires the public and private sectors to work together
to implement policies and make investments that motivate
farmers at every level to increase production responsibly and
that enable food to move more freely from areas of surplus to
areas of deficit.
S. Surjitsingh, an organic farmer turned his dream into
reality by mainly yield maize, wheat and sugarcane in his
30-acre farm land. Yield from diverse crops was not
pleasing due to reduced soil health. He spoke to the
department of agriculture and discussed his problem with
the block official. With the direction of the department
of agriculture of Hoshiarpur, he set up the first vermin
culture unit in district Hoshiarpur in the year 2003. With
practical guidance from the department of agriculture, S.
Surjit Singh turn out to be the first commercial producer of
Vermi composting and now, he is selling his produce all
over Punjab and Himachal Pradesh.
After considering the achievement of this venture, the
planning commission, government of India finally sanctioned
a grant of Rs 4.59 crores for the sponsorship of Vermiculture
in rural areas of the district under Rashtriya Sam Vikas
Yojana.
Types of Enterprises
Different types of ventures in agri-business.
1. Farm Level Producers: At the individual family point,
every family is to be treated as venture, to enhance the
production by making best use of the technology,
possessions and demand in the market.
2. Service Providers: For optimizing agriculture by every
family business, there are diverse types of services requisite
at the village level. These include the input borrowing and
distribution, hiring of equipment like tractors, sprayers, seed
drills, threshers, harvesters `dryers and scientific services
such as setting up of irrigation amenities, weed curb, plant
security, yielding, threshing, conveyance, warehouse, etc.
related opportunities exist in the livestock husbandry sector
for providing breeding, immunization, disease diagnostic and
treatment services, apart from allocation of cattle feed,
mineral combination, forage grains, etc.
3. Input Producers: There are many flourishing enterprises,
which need critical inputs. a few such inputs which can be
produced by the home entrepreneurs at the village level are
biopesticides, soil amendments, biofertilizers, vermicompost,
plants of diverse species of vegetables, fruits, ornamentals,
root media for raising plants in pots, production of cattle feed
concentrate, agricultural tools, irrigation accessories, mineral
mixture and complete feed. There are good openings to
support, fishery, sericulture and poultry as well, during
sponsorship of critical service amenities in rural areas.
4. Processing and Marketing of Farm Produce: well
organized management of post-production processes requires
higher level of knowledge as well as investment. Such
venture can be handled by People’s Organizations’, either
in the form of cooperatives, service joint stock companies
or societies. The most successful instances are the
dairy cooperatives sugar cooperatives, and fruit
growers’ cooperatives in lots of States. However, the
success of such undertaking is exclusively dependent on
the reliability and ability of the leaders involved. Such
undertaking needs good specialized support for running the
activities as a competitive trade and to contend well with
other players in the market, mainly the retail traders and
intermediates.
Barriers of Entrepreneurship Development
Entrepreneurship in agriculture is not only an opportunity but
also a necessity for improving the production and
productivity. Though, the rate of achievement is extremely
low in India, because of the following reason.
1. Most of the farmers, agriculture is largely a means of
livelihood. In the lack of adequate information, capital,
technology and connectivity with the market, it is
difficult for the uneducated small owner to turn their
farming into an enterprise.
2. Before promoting diverse services by self-employed
people, there is a need to create consciousness among
the farmers, who are the customers, about the benefits of
these services.

3. For promotion of services, the present performance of
providing free service by the Government organizations
should be discontinued. In fact, lots of farmers, mainly
the politically associated leaders are of the feeling that
the government is accountable for providing extension
and technical advisory services to the farmers. Though,
over the years, the trustworthiness has eroded and the
services of these organizations are not on hand to small
farmers, particularly those living in distant areas.
However, the concept of free service makes the farmers
unwilling to avail of compensated services, offered by
the local self-employed technicians.
4. The self-employed technicians need regular back up
services in the form of technical and business
information, contact with the marketing agencies,
suppliers of critical inputs and equipment and research
stations who are involved in the development of modern
technologies.
5. There are several legal restrictions and obstacles, which
come in the progress of agri-business, promoted by the
People’s Organizations and Cooperatives. Private
traders engaged in such business tend to ignore these
rules and disturb the fair trade environment.
6. People’s Organizations often hesitate in taking the risk
of making heavy investments and adoption of modern
technologies, which in turn affect the profitability. With
low profitability and outdated technologies, farmer
members lose interest in their own enterprises as well as
in that of their leaders.
Agri-business Centers Scheme – Training programme
The National Institute of Agricultural Extension
Management (MANAGE), Hyderabad is implementing the
Scheme of Agri-clinics and Agri-Business centers initiated
by the Ministry of Agriculture, Government of India. The
Scheme aims at supplementing existing extension network to
accelerate process of technology transfer in agriculture and
strengthening input supply and services. Agri-graduates and
Post graduates. Diploma holders in agriculture and allied
fields can set up their Agri-Clinics and Agri-Business
Centers and offer professional/consultancy extension
services to farmers. The scheme enumerates availability of
better methods of farming to farmers and better opportunities
for self-employment to the Agricultural Graduates. As an
integral part of the Scheme, specialized training is provided
free of cost to the eligible agricultural graduates. The course
comprises of various aspects of entrepreneurship and
business management. Centre for Entrepreneurship
Development, (CED) Hyderabad is one of the
recognized Nodal Training Institutes to provide two months
Training Programme.
Institutional Support for Agri-business
RBI started in July 1982 NABARD to give full attention to
the rural sector in areas of agriculture, small –scale
and cottage industries and agro-based industries.
Since its formation NABARD hold the responsibility of
managing all the activates of the RBI pertaining to rural
development and agro based activities
Panchayatmandi (Agri-Mandi)
The concept of self-governance has gone to the level of
marketing of village produce through village markets and
fairs. The concept of Panchayat mandi is to reduce the
influence of middlemen and traders. This is possible only if
functioning of the zilli Panchayat is effective in coordination
with state marketing boards and APMC (Agriculture produce
market committee)
State Agricultural marketing banks (SAMB)
State agricultural marketing banks are set up to actively
regulate markets for food crops and oilseed in bigger markets
of towns and cities
NCOSAMB (The national council for state marketing
board)
An agro based country like India needs training centers with
modern facilities throughout the country. The government of
India provides grants in aid to state to set up such training
facilities. NCOSAMB is the body to coordinate the
programmes of such training
State Trading Corporation (STC)
The state trading corporation of India ltd is premier
international trading house owned by the government of
India having been set up in 1956; the corporation has
developed vast expertise in handling bulk international trade
international trade.
Possible areas of entrepreneurship development in
agriculture
Nowadays, Easy access to technology, emergence of micro
financing, liberalized government rules, awareness and
training programmes on agri and allied sectors and finally
changing mindset of the highly qualified people to go for
self-employment in the field of agriculture have contributed
significantly in enhancing the potentiality for
entrepreneurship in India (Bairwa et al., 2014[2] Agriculture
have several areas of entrepreneurship which include the
activities like, Dairying, Sericulture, Goat rearing, Rabbit
rearing, Floriculture, Fisheries, Shrimp Farming, Sheep
rearing, vegetable cultivation, nursery farming, farm forestry
Pandey, RK (2009)[14] he possible areas of entrepreneurship
in agriculture are:
1. Agro produce processing units –Thee units do not
manufacture any new product. They merely process the
agriculture produce e.g. Rice mills, Dal mills,
decorticating mills etc.
2. Agro Produce manufacturing units –These units produce
entirely new products based on the agricultural produce
as the main raw material. E.g.-Sugar factories, Bakery,
Straw board units etc.
3. Agro-in puts manufacturing units –These units produce
goods either for mechanization of agriculture on for
increasing manufacturing plants, e.g.-Fertilizer
production units food processing units, agricultural
implements etc
4. Agro service centres –These include the workshops and
service centre for repairing and serving the agricultural
implement used in agriculture.
5. Miscellaneous areas –besides the above mentioned
areas, the following areas may prove to be encouraging
to establish agri enterprises such as setting up of
Apiaries, feed processing units, seed processing units,
mushroom production units, commercial vermin-
compose units, goat rearing farmers club, organic
vegetable and fruits retail outlet, bamboo plantation and
jatropha cultivation.
International Journal of Applied Research

Role of Agripreneurship in national economy
Agripreneurship plays various roles in the growth and
development of national economy through entrepreneurship
development which increases the income level and
employment opportunities in rural as well as urban areas
(Bairwa et al., 2012)[2]. Agripreneurship also play following
role in the economic system, it helps in inducing productivity
gains by smallholder farmers and integrating them into local,
national and international markets.
It helps in reducing food costs, supply uncertainties
and improving the diets of the rural and urban poor
in the country.
It also generating growth, increasing and diversifying
income, and providing entrepreneurial opportunities in
both rural and urban areas.
India. The International Food and Agribusiness
Management Review 2000; 2(3):331-344.
12. Misra SK, Puri VK. Indian economy. Himalaya
Publishing House, 2005, 888.
13. Bairwa, S. L., Lakra, K., Kushwaha, S., Meena, L. K., &
Kumar, P. (2014). Agripreneurship Development as a
Tool to Upliftment of Agriculture. International Journal
of Scientific and Research Publications, 4(3), 1-4.
14. Pandey, R. K. (2009). Perspectives on Agripreneurship
and Rural Development. Banaras Hindu University.

Conclusion
Agricultural entrepreneurship shares many characteristics of
"generic" entrepreneurship, but also has its distinct features
due to the specific context of the agricultural sector. With
better industrial and entrepreneurial education discipline,
entrepreneurs will naturally take advantage of the vast
human resource availability. It is clear that there is a great
scope for entrepreneurship in agriculture and this potentiality
can be tapped only by effective management of agri elements
an individual with risk bearing capacity and a quest for latest
knowledge in agriculture sector can prove to be a right
agripreneurs. The agriculture sector has a large potential to
contribute to the national income while at the same time
providing direct employment and income to the numerically
larger and vulnerable section of the society. Agripreneurship
is not only an opportunity but also a necessity for improving
the production and profitability in agriculture sector

References
1. McCombie JS, Thirlwall AP, Thompson P. Economic
growth and the balance-of-payments constraint. New
York: St. Martin's press, 1994.
2. Bairwa SL, Lakra K, Kushwaha S, Meena LK, Kumar P.
Agripreneurship Development as a Tool to Upliftment
of Agriculture.
3. Saini JS, Bhatia BS. Impact of entrepreneurship
development programmes. Journal of Entrepreneurship.
1996; 5(1):65-80.
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competitive skills. Journal of. 2006.
5. A case study of dharmapur farmers by T.NagalakshimiA
Sudhakar ISSN: 2319‐7064August2013, 2(8).
www.ijsr.netAgri-Preneurs:
6. McElwee G. Farmers as entrepreneurs: developing
competitive skills. Journal of Developmental
Entrepreneurship. 2006; 11(03):187-206.
7. Umali-Deininger D. Public and private agricultural
extension: Partners or rivals. The World Bank Research
Observer. 1997; 12(2):203-224.
8. Anyon J. Social class and the hidden curriculum of
work. Journal of education, 1980, 67-92.
9. Kular IK, Brar AS. Transforming Indian Agriculture
through Agripreneurs. Indian Journal of Marketing.
2011; 42(3).
10. Anderson D. Small industry in developing countries: A
discussion of issues. World Development, 1982;
10(11):913-948.
11. Gandhi V, Kumar G, Marsh R. Agroindustry for rural
and small farmer development: issues and lessons from
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy School of

business management.

ABSTRACT

Every Entrepreneur wants to increase their business, but EPM Methodology and its Components :
they restrict their growth based on their experience. The
conventional growth of a business is 20% or 30% increase
in the revenue. EPM results in Strengtheningthe Pillars of Profitability.

The methodology uses and integrates tools and techniques
for performance management found in Business
Governance and practice. The paper first presents an
introduction to performance management systems and their
requirements. It then reviews approaches to performance
management.
The paper concludes with a description of the Enterprise
Performance Management Methodology, a methodology
developed to address many of the shortcomings of current
performance management systems.
Keywords:
Pillars of Profitability, Ground rules, Creativity,
Empowerment, Integrity
INTRODUCTION
Enterprise Performance management (EPM) is a process
which focuses on Performance that strengthens the
Profitability of Organization by improving the Business
Processes and inventing the best practices.
EPM integrates operational and financial information into a
single decision-support and planning framework.
 A framework for organizing, automating, and
analysis business methodologies, metrics &
Systems to drive the overall performance of the
Organization
 Bring Management processes under a single
overarching framework, connecting financial and
operational decisions
 EPM helps to identify Information Gaps, focus on
right points of connection and evolve the
performance management which results in
enhancing the profitability of your business.
Pathways: Pathways are the Revenue Channels; we help
you to identify new pathways for the growth of your
organization.
Planning: Success of every organization depends on how
effectively they plan for their business;it helps for your
Strategic and Operational Planning by way of creating
and reviewing conversations.
People: People means Employees of the organization,
when people are aligned with the goal of the organization
the attrition rate will come down.
Partners: Means the Partners of the eco-system which
includes Organization Suppliers, Customers etc... when an
organization maintains good relationships with the
partners of the eco system, the organization will reap the
benefits out of it by way of extending credit period and
offering discounts.
Processes: Processes means the Do’s and Don’ts’ of the
business and continuously looking for what more needs to
be done for the growth of the organization.
Performance: Performance means how effectively the
employees of the organization are aligned to the
organizational goal and performance must be measured.
recognize the employees who performed well.
Profit & Loss: Profit and loss is the outcome of Revenue
Less costs, to increase the profit of the organization one
needs to utilize the resources optimally.

OBJECTIVE:
➢ To study of Enterprise performance management system
➢ To examine why an Enterprise performance
management systemis important for any business entity.
 Enterprise Performance Management
NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy School of
business management.
Ground Rules :
Certain Ground rules are created to create a better value
system
Benefits of EPM :
 It helps in identifying the appropriate pathways to
improve revenue
 It develops mission-oriented culture in an enterprise
 It helps in defining the team structure and to
maintain Integrity
 Focus on continuous improvement by conquering
breakdowns
 Identify the best business processes
 Builds an ecosystem to run the business effectively
 Effectively measures the performance to get better
results
 Enhancing the profits through cost optimization
 Establish and monitor performance indicators to
track progress towards objectives.
 To create a positive attitude and invent best
practices in enterprise.
 Provides appropriate awareness & training to
everyone to align with organization goals &
objectives.
 It prevents the attrition rate and improves
leadership.
 Real time monitoring of KPIs.
 Strengthen the Profitability of Organization.
 EPM helps in building Powerful Financial model
& Creative Budgeting.
 EPM results in effective & efficient Business
governance system.
 It helps in creative thinking to generate potential
audience.
 It improves the quality of Decision making.
 Increases/ Creates accountability to achieve
corporate goal.
 Improves team productivity and effectiveness.
 Talent identification and bring new leaders within
the team.
 How do you know you have arrived if you don’t
know where you are going or where you have
been?
 Bring Management processes under a single
overarching framework, connecting financial and
operational decisions
 A framework for organizing, automating, and
analysis business methodologies, metrics &
Systems to drive the overall performance of the
Organization
 Bring Management processes under a single
overarching framework, connecting financial and
operational decisions
 EPM helps to identify Information Gaps, focus on
right points of connection and evolve the
performance management which results in
enhancing the profitability of your business.
 Many factors influence the performance of
Organizational decisions such as:
 How we are doing? (Scorecards, Dashboards)
 Why? (Reporting & Analysis)
 What should we be doing? (Planning)
References :
1. Bititci, U. S. (1994). “Measuring your way to
profit. “Management Decision 32(6): 16-24
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy School of

business management.

2. Govindarajan, V. and J. K. Shank (1992).

“StrategicCost Management: Tailoring Controls to
Strategies.”Cost Management (Fall): 14-24.

3. Kaplan, R. S. (1988). “One Cost System Isn't

Enough. “Harvard Business Review 66(1): 61-66.

4. Kaplan, R. S. and D. P. Norton (1992). “The

BalancedScorecard - Measures That Drive
Performance.”Harvard Business Review 70(1): 71-
78
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

Factors affecting “entrepreneurial culture”: the mediating role of creativity

G. MURALI MOHAN

Associate Professor of Dr.K.V.Subba Reddy school of Business management, Kurnool.

Abstract
Entrepreneurial culture has been an area of worth investigation in management research for
many years since the growth in technology-based business ventures. In the context of businesses,
entrepreneurial culture may be described as attitudes, values, skills, and power of a group or
individual working in an organization that is characterized by risk. The prime purpose of this
study is to examine the effect of openness to change and self-efficacy on entrepreneurial culture
with the mediating role of creativity. We have used innovative culture as a substitute to measure
the entrepreneurial culture of an organization due to its prognosticator power. Self-administered
questionnaires were distributed through physical channel among employees of various firms
engaged in the information technology business. Specifically, we collected data from all
registered firms in the capital city of the Province Punjab, thus making an overall sample size of
300 and useable questionnaires that were returned filled for analysis were 225 (useable response
rate 75%) employees of various private firms. For the analysis purpose and to explain the
relationships among variables and meditational effects, we have used SPSS and AMOS for SEM.
The findings clearly report that there are significant direct relationships among variables such
that openness to change and self-efficacy have a positive impact on entrepreneurial culture, as
well as in the presence of creativity as a mediator. The limitations of this study have been
discussed with its theoretical and practical contribution. Future researchers can focus on
longitudinal study and use qualitative methods for in-depth knowledge along with other variables
in order to measure entrepreneurial culture in a broader way.
Introduction
Since the last few years, entrepreneurial culture has been appearing as a highly noticeable
concept in management literature. Entrepreneurial culture has been defined as the attitude,
values, skills, and power of a group or individuals working in an institute or an organization to
generate income.

Information and communication technology-based firms are prone to change because most of the
innovation and creativity has been observed in these firms; hence, researchers are curious to
know whether creativity mediates the relationship in an entrepreneurial culture measured through
innovative culture. So, we selected registered IT firms based on information technology due to
following reasons: (1) their primary focus is to assure high-quality reassurance as well as
governing standards for software development and its focus on innovation and creativity. (2)
Their existence is characterized by the highest level of quality software products and services
globally that meet customers and user needs, by maintaining their human resources as their
principal asset and being responsive to market expectations. We want to know whether creativity
mediates the relationship in an entrepreneurial culture as we are measuring it as an innovative
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

culture. The main purpose of this study is to examine the effect of openness to change and self-
efficacy on entrepreneurial culture with the mediating role of creativity where entrepreneurial
culture is measured through innovative culture.

The specific objectives of this research are as follows:

To find the impact of openness to change on entrepreneurial culture

To find the impact of self-efficacy on entrepreneurial culture

To find the mediating role of creativity in the relationship between openness to change and self-
efficacy with an innovative culture
Review of Literature
We have measured entrepreneurial culture as an innovative culture because innovation is
considered to be a primary reason to start a business. There is always a motive to start a new
business either it can be an opportunity to innovate or for introducing a new technology. But the
most recurring reason to start a new business is the chance to innovate (Scheinberg &
Macmillan, Toulouse & Clement For a business to grow and to earn a profit, implementation of
innovative behaviour is important. An innovator can be a successful entrepreneur because they
introduce new technologies and produce new ideas. Entrepreneurs must possess such
characteristics that include creativity and innovative behaviour. Entrepreneurs who run business
for the primary purpose of earning profit and growth of a business have a higher chance of
innovation in business.

H1 There is a significant relationship between openness to change and innovative culture.

 H2 There is a significant relationship between self-efficacy and innovative culture.

 H3 Creativity mediates the relationship between openness to change and innovative

culture.

 H4 Creativity mediates the relationship between self-efficacy and innovative culture.

Methodology
The population for the study in hand was employees working in different IT firms of Lahore,
which is the major city and capital of Punjab and the hub of the information technology business.
We selected the sample size on the basis of the item to response theory, which includes
employees of all registered IT firms in the capital city of Punjab Province, thus making an
overall sample size of 300. Data was collected through questionnaires which were self-
administered. Individual employees, managerial and non-managerial, were considered as a unit
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

of analysis. Convenience sampling a kind of non-probability sampling was used, as the exact
number of employees was not known.

Measurements of variables
Self-efficacy
Self-efficacy is defined as a belief of an individual to be successful and to complete a task in
some specific circumstances. Self-efficacy questionnaire was adopted from (Gaumer Erickson,
Soukup, Noonan, & McGurn. The scale contains six items (such as “I can figure out anything if I
try hard enough”).

Openness to change
Openness to change is described as an overall change in an organization with two aspects: first,
the employees and managers are ready to support the change, and second, they have a positive
attitude towards the results brought by change. Openness to change questionnaire was adopted
from Psycoaching In this questionnaire, we choose ten items which are related to our study.

Creative behaviour
Creativity is defined as one’s ability to produce novel and applicable ideas in any context.
Creativity questionnaire was adopted from I-Create. The scale contains nine items.

Innovative culture
An organizational culture in which employees create and implement new ideas at work and
suppress their interest in order to achieve organizational success. We are measuring
entrepreneurial culture through innovative culture, and it is discussed in the literature review.
Entrepreneurial culture defines how innovative an organization is Scale of innovative culture is
obtained from Scott and Bruce. The scale consists of five items.

Control variables
Age and gender were used as control variables. Figure 1 represents the demographic profile of
respondents according to their gender and marital status. We can see 55.6% percent are females
engaged in IT sector of Pakistan. On the other hand 71.1% respondents are single in IT sector
which indicates that most of them are mid career or initiators in their jobs. It has been given in
Fig. 1. On the other hand Fig. 2. Represents the age of respondents in which we can see that
respondents with highest frequency belongs to age group 20-24.
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

Fig. 1
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

Percentage of male, female, married and single respondents

Fig. 2

Age of the respondents

Results and analysis
Demographics
Correlation matrix
Table 1 shows a correlation among variables. Openness to change is significantly related to
creativity at r = 0.754, so there is a highly significant linkage between openness to change and
creativity. Openness to change is significantly related to the innovative culture at r = 0.619, so
there is a highly significant linkage between openness to change and innovative culture.
Openness to change is significantly related to self-efficacy at r = 0.560, so there is a highly
significant linkage between openness to change and self-efficacy. Creativity is significantly
related to the innovative culture at r = 0.747, so there is a highly significant linkage between
creativity and innovative culture. Creativity is significantly related to self-efficacy at r = 0.614,
so there is a highly significant linkage between creativity and self-efficacy. An innovative culture
is significantly related to self-efficacy at r = 0.653, so there is a highly significant linkage
between innovative culture and self-efficacy.
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

Table 1 Correlation matrix

Measurement and structural model
We have developed and validated our measurement model that explores the relationship between
the latent variables and their items of measure to test if our model is a good fit, and then, we ran
our data on the structural equational model to see the relationship between latent variables. In
order to perform structural equation modeling, there are two stages: first, we develop and
validate the model in measurement modeling, and then, we ran the data on structural equational
modelling

Table 2 Standardized regression weights

represents Structural Model. Table 3 shows standardized regression weights. The values of the
complete fit indices from the structural educational model specify an acceptable fit between our
hypothetical model and sample data. Model fit was tested by different fit indices such as GFI
(goodness of fit index), CFI (comparative fit index), RMR (root mean square residual), root
mean square error of approximation (RMSEA), and IFI (incremental fit index).

Fig. 3
 Enterprise Performance Management

NARESH DURVESULA, Student (19JJE0053), I st year (MBA), Dr.K.V.Subba Reddy

School of business management.

Structural model

Discussion
So H1, H2, H3, and H4 are accepted as we found a significant relation between self-efficacy,
innovative culture, creativity, and openness to change.
Conclusions
The purpose of our study was to discuss the factors that affect entrepreneurial culture, so we have
used openness to change and self-efficacy as factors that affect entrepreneurial culture and we
have used a mediator which is creativity as to see whether it mediates the relationship. The
findings clearly report that there is a significant direct relation among variables as openness to
change and self-efficacy have impact on entrepreneurial culture without a mediator. There is a
significant indirect relation as with the presence of mediator creativity. Our paper is not without
any limitations as we have collected data from one company. We have used the questionnaire as
the primary data collection technique; further research can use qualitative techniques also. We
have measured entrepreneurial culture with a variable called innovative culture, but further
research can use some other factors or variables measuring entrepreneurial culture. The items
used in this study were less.

Limitations and recommendations

The limitations of this study can also be noted as there are many other factors and determinants
which influence the entrepreneurial culture, and in this study, we discussed only two factors. In
future studies, researchers can use some other data collection methods also (qualitative
techniques), they can use some other variables related to personality and environment in order to
measure entrepreneurial culture. Researchers may also study the longitudinal effects of firms, as
researchers have targeted the IT firms, so future research can be done on other industries like
tourism and hotel management and automotive industry.

Keywords
Entrepreneurial culture, Open to change, Self-efficancy, Creativity, Innovation
 16
Corporate Entrepreneurship and Innovation in the Renewable Energy Field
*G. Murali Mohan,Associate Professor,Dr. K.V. Subba Reddy Institute of Management
** S. Nagamma,II MBA Student, Dr. K.V. Subba Reddy Institute of Management
***S.Reshma Khathoon, II MBA Student, Dr. K.V. Subba Reddy Institute of Management
Abstract

In the context of depleting natural resources, climatic changes and consequently worldwide
interest to generate energy from renewable sources, energy and non-energy companies have
diversified their portfolio by investing in renewable energy. This has developed a growing
interest in finding out what supports the corporate entrepreneurial behaviour in the
renewable energy field. With the improvement of renewable energy technologies and
changes of the financial support systems, the further development of the renewable energy
business strongly relies on innovation, in terms of technology and business models. The
present article aims at assessing the innovation characteristics of companies that have
broadened their domain of activity by investing in renewable energy, as well as to identify
which organizational support factors would influence these characteristics the most. The
analysis is based on a study of 30 companies that have invested in renewable energy
following a corporate entrepreneurship strategy. Results suggest that management support
for corporate entrepreneurship and work autonomy are the organizational factors that would
support innovation in these diversifying companies the most.
1. Introduction

The renewable energy business landscape has been lately characterized by technological
improvements and reduction of investment costs, but also uncertainty regarding financial
support and a yet slow diffusion of renewable energy technology.
Starting with 2012, many governmental support programs have been diminished or
cancelled. Romania has ceased the payment of green certificates until 2017, while countries
such as Spain, the Czech Republic, Greece and Bulgaria have announced retroactive cuts
(Frankfurt School, 2014). Germany plans on reducing the average subsidy for wind, solar
and other renewable power sources to an average of €0.12 per kilowatt-hour in 2015,
dropping from
€0.17 in 2014 (Thomas, 2014). In an article published by EIA (2014), the organization states
that policy uncertainty may slow down the renewable energy expansion in the next five
years.
With the shift towards a more sustainable energy generation and the development of the
renewable energy business, utilities are currently threatened by the changes of the market
(Klose et.al., 2010; Schoettl and Lehmann- Ortega, 2011). They will need to rethink their
business models in order to be profitable on the long run. In order to adapt to the paradigm
shift and the technology-push created by renewable energy technologies, utilities have also
integrated renewable energy generation into their business model (Masini and Menichetti,
2013; Richter, 2013); As Pinkse and van Buuse (2012) have stated, integrating a new
technology into the company’s business depends on the company’s abilities and how easily
it may be integrated in their supply chain.
2. Conceptual framework

Corporate Entrepreneurship in the renewable energy field

 17
Corporate Entrepreneurship in the renewable energy field may be classified as being part
of a broader type of entrepreneurship: sustainable entrepreneurship or eco-entrepreneurship.
According to Miles et. al. (2008), sustainability forces corporations to reconsider their
strategies and tactics in light of the impact on long-term economic performance, sound
environmental management, and social accountability norms. Fussler and James (1996)
consider that sustainability drives the creation of new markets through environmental
innovation. The authors also see it as a “breakthrough discipline for innovation”.
Sustainability and innovation have often been linked in the literature (Hockerts and
Wustenhagen, 2010; Schaltegger and Wagner, 2011).
According to Schaltegger and Wagner (2011), one can distinguish between the private
benefit of an innovation and the social benefit, which is defined for sustainability
innovation: “the higher the private benefit, the higher is the potential of an innovation to
compensate for negative social effects of that innovation”. The current renewable energy
field presents opportunity both for technology and business innovation. The diffusion of
renewable energy technologies strongly relies on access to technology licenses (Ockwell et.
al., 2010), but it is also strongly influenced by other entrepreneurial systems and tools, as
further presented. According to Foxon et. al. (2008), the process of diffusion of a specific
technology is reflected in the formation and evolution of technological innovation systems,
processes for which both policy makers and entrepreneurs play an important part.

Correlation between organizational support and innovation for corporate

entrepreneurship in the renewable energy field
Research has demonstrated that management support for innovation, as well as the
organizational structure, control systems and firm incentives contribute to creating
organizational antecedents that stimulate future corporate entrepreneurial initiatives from
company members (Kuratko et.al., 2005).
A corporate entrepreneurial initiative can occur due to internal motivational factors of an
employee, such as an employee’s inspired idea, that is pursued in order to gain personal
satisfaction and organizational recognition (Schindehutte et.al., 2000), but research findings
indicate that a positive perceived organizational support by the employees represents a
critical element to determining a favorable working environment, that stimulates creative
business contributions and thus a motivating employee behavior towards the company’s
objectives (Eisenberger et. al., 2002). A motivating working environment that values
employee achievements and innovating ideas is an essential element in revealing the
entrepreneurial abilities of the company members.
Eisenberger (2001) states that based on the reciprocity principle, a positive perceived
organizational support of the company towards the employees and their professional
recognition within the organization induce a higher job commitment and motivation for
employee initiatives on their behalf. This is why a flat organization that encourages the
management-employee communication and thus stimulates the exchange of business ideas
is more likely to produce corporate entrepreneurs than a hierarchical organization, that tends
to intimidate the communication pathways due to the numerous management levels and a
stiff organizational culture that encourages the horizontal communication mostly.
The management plays a critical role for employee contributions to corporate
entrepreneurship (Scheepers et. al., 2008) by encouraging the employee initiatives and
offering the necessary resources for the feasible business ideas,
 18
avoiding sanctions in case of initiative failure and delegating employees to find innovative
solutions to certain business challenges within the company. According to the findings of
Shamsuddin et. al. (2012), there are certain proportional connections between the external
organizational factors and the three dimensions of corporate entrepreneurship, as follows:
the company resources, supportive organizational structure and rewards system influence
the relationships between proactiveness and financial performance, and between risk-taking
and financial performance; Kuratko et. al. (2005) defined management support as “the
willingness of top level managers to facilitate and promote entrepreneurial behavior,
including the championing of innovative ideas and providing the resources people require to
take entrepreneurial actions”.
The rewards system and the resource availability are cultural elements that determine
employees to have entrepreneurial initiatives (Goodale et. al, 2011). The organizational
cultures that tend to stimulate the creativity of their staff, as well as risk taking, by granting
them financial and social rewards have better chances of having internal entrepreneurs than
the ones that are risk-adverse. Rewards have always been a primary source of motivation for
someone to act in order to achieve their goals and within companies they remain a
persuasive source of motivating employees to dedicate more of their time and energy to
achieving the organizational goals.
The Corporate Entrepreneurship Assessment Instrument developed by Hornsby et. al.
(2002) mentions organizational boundaries, time availability and work discretion as other
important factors for stimulating corporate entrepreneurship, along with management
support and rewards. Employees must have the necessary time to fulfill their job tasks and
to seek business opportunities individually or as a team and the right to take certain
decisions and acts without permanently asking for supervisors’ and managers consent.
Bureaucratic formalities and stiff hierarchical subordination are two obstacles for innovation
inside the organization and represent a challenge for the management, which is obliged to
maintain a certain degree of control and offer the necessary space for employees to bring
their own ideas. The freedom of employees to manage their activity, take risks and innovate,
supported by Hornsby et. al. (2002) under the concept of “work discretion”, assures the
generation and dissemination of new ideas and a better management of change when
undertaking a new entrepreneurial activity by the company. The present paper further
assesses the five organizational elements proposed by Hornsby et. al. (2002) in the 30
companies included in the study.

3. The research method

The analysis is based on data gathered from 30 companies that have diversified their
domain of activity by investing in the renewable energy field. The data collection phase
took place between January 2013 and February 2014, and consisted of creating a database
with companies that have invested in renewable energy following a corporate
entrepreneurship initiative and sending out structured interviews to managers involved in
the renewable energy business of the company. The selected companies were searched
online, and included both energy companies and companies with no background in the
energy field. We collected contact information for 36 companies which produce renewable
energy in Romania but had had a different main field of activity. We sent out a structured
survey per email. We made telephonic follow-ups for companies that haven’t answered our
email. In total we gathered 12 responses. We identified further companies that have invested
in renewable energy from online databases and sent another 240 valid emails, to which we
 19
received 14 responses. During an energy fair, we personally interviewed another 4
companies. The companies that participated to the study are active in Europe, the Middle
East and Africa.
The first set of questions included in the survey referred to the primary domain of activity
of the respective company, the size of the company, and the renewable energy field in which
they are active. Questions regarding the main field of activity and the renewable energy
field were multiple choice. Respondents were asked to select among the main types of
renewable energy: solar energy, hydropower, wind power, biomass, bio fuel, geothermal
(renewablesguide.co.uk, 2014), and enabling technologies. The reason for these main
categories to be included in the questionnaire was their importance in achieving the
European Union’s 2020 target plan for renewable energy (Beurskens and Hekkenberg,
2011). However, respondents were able to fill in a different kind of renewable energy, if
their product didn’t fit any of the predefined categories. Different types of renewable energy
filled in by respondents were landfill gas, energy from heat recovery and from other waste
materials.

4. Conclusions

Past researches have proven the correlation between the organizational culture and
support system and corporate entrepreneurship, and have structured organizational
dimensions that can shape the entrepreneurial spirit of the enterprise. One of the main
corporate entrepreneurship characteristics that describe the entrepreneurial orientation of the
company and recurrently appears in academic and organizational studies is the company’s
ability to innovate. Given the current context of the renewable energy business and the
advancement of the renewable energy technologies, but also the recent changes of the
business’ support system, the company’s ability to innovate is one of the characteristics that
may define the success of a company investing in the renewable energy field.
The results of the study offer an insight into how innovation may be supported in
diversifying companies that integrate renewable energy into their business. A better
understanding of this matter may be capitalized on by individual companies, but also
renewable energy clusters and networks that aim at sharing knowledge and collaborating for
innovation of this field. A more efficient integration of renewable energy as new product or
business may lead to further growth of the industry despite diminished governmental
financial support.

KEYWORDS
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The Performance Excellence of the entrepreneurial Hospital: a study on

Human resource management role to the performance excellence in Hospitals

First author: Mrs.M.Neelima, Research scholar, Department of Business Management Yogi

Vemana University,Kadapa
Second author: P.Rajitha, Assistant Professor, Department of MBA, Annamacharya PG
College of Computer Studies, Rajampet.
ABSRTACT

Hospitals today are under pressure from a variety of stakeholders to improve quality, safety,
clinical outcomes and patient satisfaction while at the same time reducing the cost. This research
study aims to measuring the human dimensions of hospital performance excellence. Common
problem among many of the hospitals are lack of committed human resources to performance
excellence, systematic process improvements and learning from evidence that HRM Practices
can impact improvements efforts by not only providing direction and focus, but also by shaping
the behaviors and actions of human resources required to achieve high quality performance.
This study investigates relationships between the effective application of the Malcolm Baldrige
Health Care Criteria for Performance Excellence and the role of HR in hospital performance
excellence. The major implication of this study is how HRM implemented in hospitals in order to
achieve performance excellence and how hospitals using the Baldridge Critera have performed
significantly better at managing the patient experience than their competitors. Descriptive
Research method was used. Data is collected through primary as well as secondary
sources.Current research work uses a questionnaire. The findings and recommendations from the
study are going to suggest a best way to measuring the human dimension of performance
excellence.Considering positive impact of strengthening the planning, management and training
of health workers on the performance of this section, it would be possible to improve the
capacity of human resources and the quality of healthcare services in the society.
Key words: Hospitals, Performance excellence, Healthcare, Quality improvements ,Criteria for
Performance Excellence, Human Resources, HRM Practices, Patient experience, Patient
satisfaction.
INTRODUCTION

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Hospitals today are under pressure from a variety of stakeholders to improve quality, safety,
clinical outcomes, and patient satisfaction while at the same time reducing costs. While estimates
vary, James (2013) proposes that at least 210,000 deaths per year are associated with preventable
harm in hospitals. The impact of poor quality healthcare extends beyond the hospital and patient
and negatively impacts several social and economic factors including lost wages, reduced
productivity, higher legal expenses, and lower confidence in the healthcare system (Shalala
2007).
Hospitals, however, are very complex organizations. In addition to their complex social
structures and external interdependencies, they also coordinate the activities of a diverse
workforce and many are in fact uniquely positioned to implement solutions that might lead to
better care.

Excellence is defined as the state, quality, or condition of excelling; superiority. (Arussy,

2008:34) Business excellence is also defined and thus can be achieved through excellent people,
excellent partnerships, excellent processes, and excellent products, or 4P's being put as an
acronym. (Dahlgaard, J. &Dahlgard, S., 1999). Yet, commitment to organizational excellence has
to be driven by top management. This is why excellence cannot be mandated from above; it rises
from the bottom up. In other words, OE is not a domain of senior management alone; managers
must enable employee excellence. OE is an everyday event, and can be achieved when
organizations are able to exceed expectations.

Organisational performance excellence means different things to different organisations

(Scholtz, 1997; Prescott, 1998; Prinsloo et al., 1999; Peters & Waterman, 1992b). According to
Robson (1988), the absence of a comprehensive and integrated practical model has caused the
demise of many efforts to introduce organisational performance excellence. Therefore
constructing a definition of organisational performance excellence seems to be quite a
challenging task (Knauft et al., 1991).

Performance Excellence: An integrated approach to organizational performance management

that results in delivery of ever-improving value to customers, contributing to marketplace success

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improvement of overall organizational effectiveness and capabilities, organizational and personal

learning.
Baldrige Criteria for Performance Excellence: A structured approach to addressing key
customer requirements and key operational requirement built around cycles of learning.
The Baldrige Criteria for Performance Excellence framework and the European Foundation for
Quality Management (EFQM) model have become templates for most quality awards in many
countries (Mackerron et al., 2003). These frameworks are widely adopted by organizations as a
means of self-assessment to enhance performance. However, in this study, we will concentrate on
the Baldrige Criteria for Performance Excellence Framework, since it was the most popular
model used at UAE institutions (Badri and Abdulla, 2004).
The requirements of the Health Care Criteria for Performance Excellence are embodied in seven
categories, as follows:
1) Leadership
2) Strategic Planning
3) Customer Focus
4) Measurement, Analysis, and Knowledge Management
5) Workforce Focus
6) Operations Focus
7) Results
Human Resources are a critical but often silent role player in business processes. Although most
continuous improvement plans involve manufacturing operations, Human Resources functions
do require implementation of change processes that improve their performance efficiencies.
Several areas in Human Resource Management that require continuous improvement include but
are not limited to compensation, labor relations, turnover, leadership and employee training and

education, administration of benefits. There is increasing evidence that human resource

management (HRM) practices adopted by organizations can have a significant impact on firm
performance.

REVIEW OF LITERATURE:
The healthcare industry has been undergoing significant growth and transformation in the last
several years. As of 2011, the U.S. healthcare costs have increased to 17.9 percent of the U.S.
gross domestic product (GDP), and are projected to reach 20 percent of GDP by 2021 (CMS,
2012). Meanwhile, the healthcare industry has experienced significant changes in patient

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demand, financing, and quality standards, which have contributed to the growth of health
expenses, the need for restructuring, and public concern about health issues (Eiriz et al., 2010).
Such changes require
Stakeholders to reevaluate and rethink the different strategies adopted by healthcare providers in
order to improve the efficiency and effectiveness of healthcare services and, thus, performance
(Federal Trade Commission, 2004).
Hospitals represent the central part of the healthcare system, and the place where most value is
actually delivered. As payers seek to control the escalation in healthcare expenditures, hospitals
are facing increasing pressure on their bottom lines due to decreasing reimbursements from
insurance companies, rising costs due to stricter pay for-performance guidelines and increasing
competition from specialized free-standing facilities (Tiwari and Heese, 2009). As such, there is
considerable interest among at the patient level and efficiency at the organizational level.
Performance excellence
Many researchers, encouraged by case study success stories, have called for evidence from large-
scale studies on the effectiveness of quality management programs, such as the Baldrige Criteria
(Meyer and Collier, 2001; Bigelow and Arndt, 1995, 2000; Motwani et al., 1996; Gann and
Restuccia, 1994). The MB comprehensive framework for world-class performance, widely used
as a model for improvement.
As such, its underlying theoretical framework is of critical importance, since the relationships it
portrays convey a message about the route to competitiveness
(Flynn and Saladin, 2001). It becomes imperative that the relationship between constructs be
tested and validated. It is important because organizations allocate substantial resources toward
improvement of their processes based on the relationships in the Baldrige framework. There are
only a few studies that fully address Baldrige in the area of hospital.

Belohlav et al. (2004) described how several faculty members in the Department of Management
at DePaul University designed, developed, and delivered course material using the Baldridge
criteria framework both as part of the structure and as point in their individual classes. They
concluded that end-of-term hospital performance evaluations indicated that the approach led to a
higher level engagement in the learning process, as evidenced by more abundant and higher-
quality feedback to the instructors.

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HUMAN RESOURCE MANAGEMENT:

An organization cannot build a good team of working professionals without good Human
Resources. The key functions of the Human Resources Management (HRM) team include
recruiting people, training them, performance appraisals, motivating employees as well as
workplace communication, workplace safety, and much more. The beneficial effects of these
functions are discussed here:

Recruitment and Selection

This is one of the major responsibilities of the human resource team. The HR managers come up
with plans and strategies for hiring the right kind of people. They design the criteria which is best
suited for a specific job description. When needed, they also provide training to the employees
according to the requirements of the organization.

Performance Appraisal

HRM encourages the people working in an organization, to work according to their potential and
gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles.

Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an organization is

largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient human
resource team.

Managing Disputes

In an organization, there are several issues on which disputes may arise between the employees
and the employers.

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Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great extent. They
organize business meetings, seminars and various official gatherings on behalf of the company in
order to build up relationships with other business sectors.

IMPORTANCE OF THE STUDY

 Healthcare providers and organizations, particularly hospitals, provide the public with the
most important and fundamental health services and is unique because of various experts
and professionals working in a variety of services.

 The MBNQA (Malcolm Baldrige National Quality Award) criteria and grounded theory
for patient service quality was adopted to measure the internal and external service
quality of healthcare organizations.

 There is need to reinforce service quality management and performance with the
application of MBNQA criteria in healthcare organizations.

 Hospitals depend on their human resources because of they are service based, human
resources are allocated the high proportion of funds in the health sector.

 There is increasing evidence that human resource management (HRM) practices adopted
by organizations can have a significant impact on hospital performance excellence.

 The highly perceived roles of human resources in achieving organizational excellence

that can help organizations gain a huge competitive advantage.

OBJECTIVES OF THE STUDY

 To determine the measuring human dimension of performance excellence in hospitals.

 Develop a comprehensive measurement model, with associated constructs and Scales that
accurately captured the content of the Baldrige Criteria for Performance Excellence.
 Address whether the seven Baldrige categories represented a good model for Hospital.

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 To study the role of human resources in achieving performance excellence in hospitals.

 To measure the impact of human resources management practices to achieve performance
excellence in hospitals
 To provide the suggestions and recommendations to measure human resources and
hospital performance excellence.

ROLE OF HR IN HOSPITALS

The lesson from the literature is that effective human resource (HR) practices can positively
contribute to organizations. Unfortunately, apart from a few studies, research that examines the
linkage between HR and firm performance has been transferred to hospital settings in a limited
way despite the widely held belief that “management matters” in delivering quality healthcare
outcomes. We posit that greater attention to the work that has been done in the HRM field could
assist hospitals improve operational efficiency and job attitudes of staff. Such outcomes have
consistently been cited as priorities for the healthcare sector which is faced with constant change
and multiple challenges to deliver quality health services.

In response to these major challenges, and in an attempt to realize the benefits that effective
HRM systems deliver, some scholars and healthcare reform committees have recommended that
hospitals adopt a commitment-based approach to HRM. This approach requires the development
of mutual commitment between employer and employee, based on high levels of trust and
empowerment.

Many of the calls for hospitals to change towards a commitment-based approach are driven by
research which consistently suggests that the health sector adopts a control orientation to people
management .Typically a control approach is applied to jobs with low levels of skill variety, only
provides basic levels of autonomy, and minimizes expenditure on people management. As a
result, scholars argue that it is misaligned with stated healthcare reforms and constrains and
demoralizes staff.

In this study, we explore the approach to people management implemented in hospitals by using
the control versus commitment typology. Drawing on role theory, we assess the influence HRM
has on the job attitudes of staff and hospital operational efficiency. We do this by considering the
roles played by different hospital actors (physicians, nurses, and allied health staff) at different

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levels (executives, healthcare managers and employees) in the working of HRM in Hospitals. We
achieve these research aims via a qualitative research design. The following factors are necessary
to the hospitals in order to achieve the performance excellence

Commitment versus control

The mechanisms behind how commitment-based practices benefit organizations have been
examined by numerous scholars. One view is that employees work harder due to their increased
involvement and commitment which, in turn, comes from having more control and say in their
work.
In this study, we undertake an exploratory investigation of the extent and type of control-based
HRM employed in hospitals by using Snell’s theory of control-based HRM.
Behavioral control
Behavioral control seeks to regulate employee actions through standardized jobs. This is
achieved by supervisors structuring work and operating procedures and ensuring that employees
adhere to established rules through managers closely monitoring behavior.
Output control
Output control focuses employee behavior through goal setting. This entails communicating
standards and goals and then providing staff with discretion in methods used to pursue
established targets.
Input control
Input control equips the workplace with employees who have the right skills and abilities to do
their job effectively. It includes a focus on the socialization of employees to the values of the
organization as well as significant investments in recruitment and training of staff.
IMPLEMENTING HR PRACTICES IN HOSPITALS
 The literature has portrayed line managers as the actors that translate intended HR
practices into actual HR practices. Hospitals now requires healthcare managers to assume
oversight of multiple line management tasks including financial, operational, and HRM
activities at the same time as ensuring patients receive high quality care. As such, dual
management-clinical responsibilities are in place.
 One of the challenges for healthcare managers when implementing HR activities is the
influence of social structures. We now turn our attention to role theory to understand the
complexity of the healthcare sector and the imp in healthcare, norms vary among

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employee groups and reflect both the official demands of hospitals, governing bodies of
the profession, and the values associated with professional commitment.
 Given the varying norms of different stakeholders, healthcare managers can be subjected
to role conflicts in which they must contend with antithetical norms. For instance, in the
context of budgetary constraints, healthcare managers may be pressured by executives to
utilize a cost-effective approach to patient treatment instead of the best treatment which
could lead to role conflict as most healthcare managers cite their primary role is to do
whatever is possible to support people becoming healthy or improve the quality of life of
patients and their families who face life-threatening illness. Such role conflicts often
produce stress, strain, and dissatisfaction.
CONCLUSION:
This study can be the starting point of regular strategic planning process within the healthcare
organization and ensure continuous quality improvement. Overall, this study is a motivation to
healthcare organizations to embrace Badrige criteria and improve their performance with respect
to service quality.

It is founded that hospitals has to initiate several programs of shared knowledge to ease the
effects of change, such as education and training on the organization’s mission and vision,
updating work skills, incentives to reinforce performance excellence and process ownership,
constructive feedback forums, availability of necessary resources to improve productivity, risk
management practices, and whatever it takes to enable HR to achieve performance excellence
through the entire organization.

It was also observed low levels of investment in people and a concentration on transactional HR
activities which led to negative job attitudes such as low morale and frustration among healthcare
professionals. Our findings illustrate that different regulatory “powers” operating in hospitals
further complicate the HR practices of training, performance, and reward. This study find out
that HR practices serve as a launching pad for HR and those responsible for quality clinical
outcomes to collaborate to work on the various strategic projects that heavily rely on healthcare
professionals to succeed.

REFERENCES

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 Thomas J.Cartin “The principles and practices of organizational performance excellence”

–Prentice Hall of India publications-New Delhi; 2004.
 Vora, M. (2002),”Business excellence through Quality management”, Total Quality
Mnagemnt, Vol.13 No.8, pp, 1151-9.
 Wilson, D and Collier, D.(2000),”An Empirical investigation of the Malcom Baldridge
National Quality award Casual Model”, Decision sciences,Vol.31 No.2,pp,361-90
 Goel S.L. and Kumar R. Challenges of the Administration of hospital services, Hospital
Administration, Vol, pp.9-10.
 Jha S.M., Decision Making Criteria for the Productive Human resources, Edited by
B.L.,Mathur, Human Resource Develpoment,pp.35-48
 IndraniMutsuddi and RiniMutsuddi, Retaining Talents: The Key Knowledge to
organization; The Icfain Journal of Management Research,Vol.VII/7 July,2008 pp.73-84

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Inclusive Growth through Start-ups in India: HR Opportunities and

Challenges

First author: M.K.Jyothi, Research scholar, Department of Business Management Yogivemana

University,Kadapa.
Second author:V.Vedavathi, Assistant Professor, Department of MBA,Annamacharya Institute
of Technology and Sciences,Rajampet.
Third author: K.Bhaskar, Assistant Professor, Department of MBA,Annamacharya Institute of
Technology and Sciences,Rajampet.
ABSTRACT

Inclusive growth is essential for India on account of low agriculture growth, low rate of
growth of employment and low level of human development. For India to remain ‘shining from
all angles’ to improve infrastructure in remote areas, increase agricultural productivity, ensure
good governance, improve the quality of education and tackle the problem of parallel economy
on a massive scale. This would lead to India making mark as the fastest growing ‘emerging
economy. Never before in the history of India, have so many influential forces congregated to
promote startups and enable them to flourish globally. The present study mainly concentrates on
the role of HR in start-ups in India. Later, higher pay scales and good perks offered by several
private sectors or multinational companies enticed greatly to the people. In 2016, Indian market
is foreseeing market domination for startups, especially in the online retailing and service
industry where high priced business entities have been created. Moreover, it is projected that
there will be over 11,500 startups by 2020 and that will change the way markets are working
today in India. Finally this study find out the role of the human resource department in startups
is to drive the workforce through effective action and not by means of their position .Now a days,
the biggest challenge faced by the startup companies is to attract best talent and retain it. It is
concluded that Human resource at startup which should invest a lot of time in building startup
brand building strategy in minds of its people. When a startup has to compete with well-
established organizations for the best talent in the business industry, it has to look for more
innovative hiring techniques.

Key Words: Inclusive Growth, Start-ups, Human resource, Talent, India, Work force.

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INTRODUCTION

Indian market is the second largest consumer market in the world; the country's economy has
been facing towering economic development in current years. As a result, its responsibility in the
world, both politically and economically has increased. On the other hand, it is keen that
economic and social disparities across the country such as geographical, socio-economic, and
cultural and gender lines have broaden in this phase.

Inclusive growth, generally defined as fast development assisting every segment of society is the
foremost approach of the Government of India. Inclusive growth is tremendously determined on
the trend and extent of disparity, particularly about the regional inequality.

NEED OF THE STUDY:

An Inclusive growth is essential for sustainable growth and impartial allocation of wealth. The
challenge is to obtain the height of growth to all parts of the society of the country. The following
are the need for India to focus more on inclusive growth.

1. India is the 7th largest by area and 2nd by population and 12th largest economy at market
exchange rate. Yet, India is away from the development.

2. Low agriculture growth, low quality employment growth, low human development, rural-
urban divides, gender and social inequalities, and regional disparities etc. are the problems for
the nation.

3. Reducing poverty and inequality and increasing economic growth are the main aim of the
country through inclusive growth.

4. Political leadership plays a vital role in the overall development of the country which is not
sustainable.

5. Corruption is one of the problems that prevent inclusive growth.

6. Literacy levels have to rise to provide the skilled workforce required for higher growth.

OBJECTIVES OF THE PAPER

1) The main objective of the paper is to study the Start-ups in India and what is the role of
HR in Start-ups in India, What are their Opportunities and Challenges.

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2) To know the Growth of Start-ups in India towards HR Opportunities and Challenges.

METHODOLOGY
The paper is based on the review of various literatures. The secondary resource used as a
type of research in this study, the data required for the study has been obtained from various
websites of schemes launched by Central government. The scope of the study focus only two
schemes – Startup India and HR opportunities and challenges.

START-UPS IN INDIA

Startup India campaign is based on an action plan aimed at promoting bank financing for start-
up ventures to boost entrepreneurship and encourage startups with jobs creation. The campaign
was first announced by Prime Minister Narendra Modi in his 15 August 2015 address from the
Red Fort focused on to restrict role of States in policy domain and to get rid of "license raj" and
hindrances like in land permissions, foreign investment proposal, environmental clearances. It
was organized by Department of Industrial Policy and Promotion (DIPP).

A startup is an entity that is headquartered in India which was opened less than five years ago
and has an annual turnover less than 25 crore (US$3.7 million).

GROWTH OF START-UPS IN INDIA

Indian government is also taking several steps to build an environment which is suitable for
startups, since small businesses can play a very important role to develop and boost Indian
economy in the future. In the Union Budget of 2015, government has established a process or a
mechanism known as Self Employment and Talent Utilization (SETU) to support all the aspects
of startups right from their seed financing stage to their growth stage. Considering the
importance of role that the Indian startups are all set to play in the growth of Indian economy, the
amount of income and the huge number of jobs that can be created by facilitating startups, even
the market regulator Securities and Exchange Board of India (SEBI) has also relaxed some rules
to facilitate the flow of funds from the market to the startups.

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Tech startups are leading the growth of startup era and it is ready to boost revenue generated by
IT-BPM sector by almost 12-14 per cent for the current fiscal year as well. It is anticipated that
the e-commerce market of India will grow by more than 50% within the next five years. India
witnessed the largest infusion of capital from overseas through venture capital funds in the year
2014 in the indigenous startups.

OPPORTUNITIES FOR START-UPS IN INDIA

With the launch of Prime Minister's ambitious Startup India mission on 16th January at Vigyan
Bhavan auditorium in New Delhi, it seems that India is progressing to become the next big
startup nation.

India’s Population Has Opened New Gateways

The population of India is a huge asset for the country in the next few years. By 2020, it is
supposed that the nation will be experiencing a “demographic bonus” period, where the working
age population would surpass the non-working population.

Talent Is Inclined To Work With Startups

India is all set to break away the traditional career paths as a lot of talent is tending towards
working with the Indian startup space. Challenging assignments, huge funding that brings huge
compensation packages and an associated cool quotient are making startups a very lucrative
place and attractive value proposition.

Indian and Foreign Investors Making Huge Investments in Startups

The startup ecosystem is getting substantial support from foreign and Indian investors, who have
shown more faith in the industry and have provided funds to help these companies to grow leaps
and bounds. Indian startups raised around $6.5-billion (Rs 42,300 crore) billion from investors in
the last year.

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Government Funds for Startup firms By launching several plans, Indian government has
assisted the start-up firms a lot to perform and sustain both in domestic and global market. There
are numerous government and semi-governmental initiatives to assist startups.

Startup India Initiative

Launched by the honorable Prime Minister of India, Mr. NarendraModi, Start-Up India initiative
is a great relief for start-up firms that will give them a final break from the conventional License
Raj of India. The program includes three-year tax and compliance breaks intended for cutting
arduous government regulations and red tapism.

Make in India Initiative

“Make in India” has not only encouraged the manufacturer, but also the Indian buyer to trust and
invest in the in the domestic brands.

MUDRA Yojna

Many small entrepreneurs find difficulty in getting loans or finance to start or run their
businesses. Through this scheme, they will easily get loans from the banks to set up, grow and
stabilize their businesses. Generally, while applying for loans, these small firms are asked for
large collaterals by the banks, which made their business unsustainable.

SETU Fund

To facilitate the growth of startup firms, SETU (Self-Employment and Talent Utilization) fund
had been set up by the government. Under this program, Rs 1,000 crore has been allotted by the
government in order to create opportunities technology-driven domains.

E-biz portal

To bring down the complexities and obstructions in setting up a business, Government launched
e-biz portal that integrates 14 regulatory permissions and licenses at one source.

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Royalty Tax

In a bid to make the cost of technology more accessible and affordable, Finance Minister Arun
Jaitley has reduced the royalty tax paid by businesses and startup firms from 25 to 10 per cent.

FINDINGS / OBSERVATIONS:

In this study we observed some of the challenges in Start-ups in India. In Start-ups we also found
role of HR.

CHALLENGES IN START-UPS IN INDIA:

Early stage capital:
Accesses to early stage capital (and very late stage capital) are major issues. Apart from the
unorganized route of angel funding or some seed funding, there aren't enough channels which
open up capital to new, young startups Startup ecosystem is a pyramid that should be very wide
at the bottom and narrow at the top.

Hiring the right talent:

Hiring the right talent for your start-up can be quite an uphill task. To find and hire the right kind
of talent for the business with skills to match growing customer expectations is one of the biggest
challenges.

Capital

The challenge is not to merely generate enough seed capital but also to support in expansion and
sustenance and maintenance. It is critical to plan finances in advance.
Cultural views and lack of infrastructure support:

Our focus is still on getting reputable jobs in a reputable company. In complement to that,
infrastructural support such as incubation and funding are not easy to find in India. Irregular
power supply, telephone reception network, etc. can be a hindrance to the growth of any
business.

Absence of mentor

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Young entrepreneurs usually have unique ideas however they lack experience. A brilliant idea
works only if executed promptly. Industry insights, market knowledge, business experience is
important to materialize the idea.

Learning from mistakes

While the economic can be arduous influence, mistakes in a start-up environment is inevitable.
The idea is to learn from mistakes and take quick actions toward some serious aftershock.

HR CHALLENGES IN START-UPS IN INDIA

The role of the human resource department in startups is to drive the workforce through effective
action and not by means of their position. There are few HR challenges that can potentially
damage the newly initiated startup venture.

1. Finding Natural Leaders

The biggest challenge in hiring for a startup is to find candidates who are natural leaders. Finding
individuals who are proactive, problem solvers with a willingness to roll up their sleeves and get
it done is essential for a startup business

2. Lack of Self-Motivated Individuals

Read this one as the lack of enough ‘startup people’ in the market. A major challenge is finding a
person with motivation to work in a startup. Skill comes later.

3. Having a Cultural Fit

Applicants from traditional industries may not be used to the change and fast pace involved in a
startup. It is important that a candidate knows what working at a startup means for their potential
role. The real challenge comes into play when looking at how a potential hire will fit into the
company as a whole.

4. Reducing Time for Adjustment

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It’s difficult to find experienced professionals from established companies, who can quickly align
themselves with the way a startup operates. As a startup, it need people who are agile and can get
things moving fast

5. Sufficient Maturity Level

In a startup, the expectations are that a new recruit would be able to execute their work
independently and without much supervision. To make that happen each new joinee is given a
clear view of the company’s roadmap and what is expected from him or her. But it’s challenging
to find people who are mature enough to manage their work independently and can set the ball
rolling from day one.
6. Time Shortage

The time gap between the decisions to hire to actual hiring is short in a startup. Every open
position needs to be staffed yesterday. Looking for the perfect candidate for the role could mean
keeping the position open for too long and being a little too hasty could be damaging because in
a startup bad hires hurt the business much more than in a mature company (where there are
redundancies and support structures).

7. Need for Self-starters

A startup looks for self-starters – people who will take initiative themselves, find more work for
themselves, self-sign up for more and more difficult projects, etc. These people don’t need to be
assigned domains or given projects.

8. Right Assessment of Soft Skills

Post every candidate’s final round interviews, a startup gathers the interviewing team in a
meeting room to making the hiring decision. Almost always a startup measure people on 4 things
– attitude (to learn/grow/make things happen fast), existing skill set, maturity and
communication skills.

9. Competition

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This applies especially for companies operating in a niche space and needing special skill sets.
Even if a new firm finds the right person who wants to work in a startup, there would be 5 other
companies in that candidate’s pipeline. This leads to incentivising potential hires through higher
packages.

10. Lack of Efficient Candidate Discovery Tools

Even with the presence of numerous recruitment portals, and even the upcoming off beat ones,
searching and shortlisting desired candidates is a challenge. Job portals stack up startups with the
bigger and known firms. Websites dedicated for startup recruitment are usually less known
among the masses, leading to a gap in job seeker and employer discoverability.

SUGGESTIONS
Certain suggestions that can be given based on the study for the success of the schemes are:

 Many of the young Founders also require the mentorships and guidance to blossom into
next level leaders for their respective organizations.

 Maintain entrepreneurial culture in startups: Upholding the ethos of entrepreneurship as

the start-up begins to take shape into a full-fledged organization is perhaps one of the
most difficult challenges for the Founders.

 Talent attraction and retention in a highly dynamic environment will give the
unprecedented rate at which the startups are mushrooming all across the country, talent
attraction and retention is likely to act as a source of competitive advantage.

 Build learning agility will give the highly complex and dynamic marketplace, startups
need to learn, unlearn and relearn the continuously changing rules of the game.

 Successful early startups are expected to rapidly grow the headcount. This would help in
servicing the anticipated increase in transactions. This calls for more sophisticated HR
systems such as payroll, leaves, attendance etc.

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CONCLUSION:

India seems to be improving its economic growth. There are strong social, economic and
political reasons for achieving broader and inclusive growth. Socially, lack of inclusive growth
leads to unrest among many people. Inclusive growth is to be achieved so as to reduce poverty
and other social and economic inequality, and also to maintain economic growth. For a
developing country like India, the need of Inclusive growth is vital to achieve the overall
progress of the country.

Startups are of quite importance these days as they play a very important role for the
development of the country and it has also make things easier for people. So, it can be easily
interpreted that now a days, finding a compatible talent for a startup is not an option but a crucial
step for running its business successfully. The role of the human resource department in startups
is to drive the workforce through effective action and not by means of their position.

Hence, taking into consideration challenges and opportunities in start-ups in India, it can be
concluded that indigenous startups will not only make the lives of the people easier through their
affordable and convenient services but will also act as a major booster for the development and
the progress of the Indian economy.

REFERENCES
1. Anand, Rahul; et al. (17 August 2013). "Inclusive growth revisited: Measurement and
evolution". VoxEU.org. Centre for Economic Policy Research. Retrieved 13 January
2015.

2. Ahluwalia, Montek S., N. Carter, and H. Chenery. 1979. “Growth and Poverty in
Developing Countries”. Journal of Development Economics 6, 399-341.

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 42

3. Bhalla, Surjit. S.,2010b “Indian Economic Growth, 1950-2008”, in Shankar Acharya and
Rakesh Mohan, edited, Indian Economy: Performance and Challenges, Essays in Honour
of Montek Singh Ahluwalia, Oxford University Press, New Delhi.

4. Ahluwalia, S. Montek, (2002), “Economic reforms in India since 1991: Has gradualism
Worked?” Journal of Economic Perspectives 16(3), 67-88.

5. Benhabib, Jess and Mark M. Spiegel, 1994, “The Role of Human Capital in Economic
Development: Evidence from Aggregate Cross-Country Data,” Journal of Monetary
Economics, Elsevier, Vol. 34, No. 2, pp. 143-173.

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 43

LIGHT THE FLAME OF INNOVATION IN YOUR ENTERPRISE

Abstract

Today’s business, especially the big ones will not survive in this period of rapid change and
innovation unless they acquire entrepreneurial competence. The enterprise that does not
innovate, inevitably ages and declines very fast in the period of rapid changing world.
Therefore Innovation and entrepreneurship are essential ingredients in building a successful
commercial venture. The ways in which these two concepts fuel enterprise are exploring
concepts in the present paper. This paper focuses on Special efforts that are needed to make an
existing (small or big) business, entrepreneurial and innovative.

Author

Dr. K. Suguna
Principal & Professor
Department of Business Management
Rishi UBR PG College for Women
Kukatpally, Hyderabad-85
Mail: suguna_vbn@yahoo.com
Ph. 93467 45905

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SUSTAINABLE ENTREPRENEURSHIP
ABSTRACT:
In a time when the global economy continues to stutter, climate change mitigation and social
justice simultaneously increase in urgency and complexity. Sustainable development ranks high
on the political agenda, but the barriers appear still too intricate to address the solutions solidly.
The existing literature strongly supports the relationship between sustainable development and
sustainable entrepreneurship, acknowledging enterprises as one of the greatest engines for
societal and economic progress, and hence, for radical change. “Without sustainable
organizations there is no sustainable development, thus, no future.”
Keywords: sustainable entrepreneurship, literature review.
INTRODUCTION:
Today we, as a society, are facing enormous economic, environmental and societal threats.
Billions of our citizens continue to live in poverty and are denied a life of dignity. There are
rising inequalities within and among countries. There are enormous disparities of opportunity,
wealth and power. Gender inequality remains a key challenge.
Unemployment, particularly youth unemployment, is a major concern. Global health threats, ore
frequent and intense natural disasters, spiraling conflict, violent extremism, terrorism and related
humanitarian crises and forced displacement of people threaten to reverse much of the
dvelopment progress made in recent decades. Natural resource depletion and adverse impacts of
environmental degradation, including desertification, drought, land degradation, freshwater
scarcity and loss of biodiversity, add to and exacerbate the list of challenges which humanity
faces. Climate change is one of the greatest challenges of our time and its adverse impacts
undermine the ability of all countries to achieve sustainable development. areas and low-lying
coastal countries, including many least developed countries and small.

Review of Literature:
This literature review touches upon the definitions, the main themes and methods that at present
constitute the field of sustainable entrepreneurship. Recently, the sustainable entrepreneurship

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literature went through a shift in interest from environmental aspect to prominent focus on the
social one. In the literature focusing on new organizations, the focus is also rising on start-up
ventures motivated by social innovation.

OBJECTIVE:
Entrepreneurs’ primary objective is to satisfy an unfulfilled need or to improve the way this need
is currently being satisfied. This promising and fundamental goal does not necessarily imply that
positive social or environmental values are being created as a result. new and existing ventures
are increasingly aware of the need to adopt sustainable practices, both within their organization
and as a result of their interaction with the societal and physical environments.
METHODOLOGY:
In order to consult up-to-date contribution, the word ‘sustainable entrepreneurship’was used as
algorithm researched on WorldCat Discovery Service and on the following journals: Journal of
Business Venturing, Journal of International Business Studies, Small Business Economies,
Entrepreneurship Theory and Practice and International Business Review. WorldCat Discovery
Service offers access to 1.9 billion library sources representing the collection of thousands
libraries worldwide. It therefore is the most important source of Information for a thorough
literature review aimed here.The articles, theses and books searched through WorldCat include
contributions from the year 2011 through May 2016. Also, the most cited articles in the literature
reviews Included in our literature search have been consulted in this review including therefore
older Contributions.

DEFINING SUSTAINABLE ENTREPRENEURSHIP:

Defining entrepreneurship
Maijd and Koe (2012) define entrepreneurship as
“A process of identifying, evaluating and pursuing opportunities through creativity,
innovativeness and transformations to produce new products, processes and values that are
beneficial”.

Defining sustainable development

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Sustainable development is often defined referring to the Brundtland Report (1987) as “the
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs”.

Social, environmental and CSR as sustainable entrepreneurship

Research on sustainable entrepreneurship has combined two different entrepreneurship branches:
social and environmental entrepreneurship. Dean and McMullen (2007) offer a comparison
between the broader concept of sustainable entrepreneurship to environmental entrepreneurship
comparing it to social entrepreneurship. Organizations that respond to social and environmental
problems by applying market mechanisms are referred to as hybrid organizations Although
sustainable entrepreneurship integrates environmental and social entrepreneurship in one
practice, many authors still refer to sustainable entrepreneurship when addressing one of the two.

Sustainable entrepreneurship
Sustainable entrepreneurship refers to the discovery, creation, and exploitation of entrepreneurial
opportunities that contribute to sustainability by generating social and environmental gains for
others in society. Sustainable entrepreneurship lays “in between for-profit and not-for-profit, in
between cash and cause. The main goal of the business activity of the sustainable entrepreneurs
should be ‘looking for prosperity’.

Success of start-ups as sustainable entrepreneurs

Similar to mainstream entrepreneurship, start-ups are an important cluster of the sustainable
entrepreneurship literature. from different point of views, by several scholars. According to
Gartner (1985), for example, new venture creation is an outcome of the nexus of individuals,
environment, and process.
Drivers behind a sustainable entrepreneur
The sustainable small and medium sized enterprises (SMEs) have between a propensity for
sustainable entrepreneurship and: (1) sustainable attitude; (2) social norms (social pressure to
undertake environmentally conscious behaviors); (3) perceived desirability (a person’s
perception on attractiveness of a behavior); and (4) perceived feasibility. Koe et al. (2014)
conclude that social norms have a great impact on both, entrepreneurial and sustainable behavior.

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All four factors have a positive correlation with a propensity for sustainable entrepreneurship.
Another driver which deserves particular attention is the financial factor.
Purpose-driven business or business purpose The concepts of sustainability and profitability
have been put in antithesis for a long time and this can be seen as the root cause behind the
sustainable entrepreneurship debate.

Sustainable performance
How can performance of sustainable entrepreneurs be assessed? Schaltegger and Wagner (2011)
write: “The degree of environmental or social responsibility orientation in the company is
assessed on the basis of environmental and social goals and policies, the organization of
environmental and social management in the company and the communication of environmental
and social issues. The market impact of the company is measured on the basis of market share,
sales growth and reactions of competitors.”

METHODS IN SUSTAINABLE ENTREPRENEURSHIP RESEARCH:

Different methods are adopted in the field of sustainable entrepreneurship depending on whether
the scholars wish to address the theories or the phenomenon that characterized the sustainable
entrepreneurship discipline. The empirical studies used a variety of quantitative and qualitative
research methods. A smaller number of the reviewed articles used mix methods usually
combining semi-structured case studies with interviews or surveys.

CONCLUSIONS:
Sustainable entrepreneurship strives to create value that is beneficial for society through
opportunity creation, development and impact creation, in an uncertain environment. This
implies risk-taking abilities, innovative attitude and alertness together with determined ethical
concerns. It is a solution for the economic, environmental and societal challenges. Reviewing the
existing literature, we explored the prominent role played by both, start-ups and established for-
profit firms as well as the not-for-profit sector in innovation and the creation of sustainable added
value for our society. The latter represents today’s challenge for a new hybrid-type of
organizations: effectively balancing societal gains, environmental protection and economic
benefits. This is the key driver for sustainable entrepreneurship research. We in particular

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highlight the importance of institutional theory and of sustainable performance assessment in the
study and understanding of successful sustainable entrepreneurship

REFERENCES:
Ajzen, I., 1991. The theory of planned behavior. Organizational behavior and human decision
processes, 50(2), pp.179-211.
Andreopoulou, Z., Tsekouropoulos, G., Theodoridis, A., Samathrakis, V. and Batzios, C., 2014.
Consulting for sustainable development, information technologies adoption, marketing and
entrepreneurship issues in livestock farms. Procedia Economics and Finance, 9, pp.302-309.
Ardichvili, A., Cardozo, R. and Ray, S., 2003. A theory of entrepreneurial opportunity
identification and development. Journal of Business venturing, 18(1), pp.105-123.
Audretsch, D.B. and Thurik, A.R., 2004. A model of the entrepreneurial economy (No.
1204). Papers on entrepreneurship, growth and public policy.

G. VEDAVATHI
IV Semester, MBA
Dr. KVSW

G. MOUNIKA
IV Semester, MBA
Dr. KVSW

Dr.O.Ravi Sankar
PRINCIPAL OF KVSM.

48
 Social Entrepreneurship in India

* G MURALI MOHAN
ASSISTANT PROFESSOR
DR.K.V. SUBBA REDDY INSTITUTIONS OF MANAGEMENT

** R SWETHA
II MBA
DR . K.V. SUBBA REDDY INSTITUTIONS OF MANAGEMENT

***P KIRAN
II MBA
DR.K.V. SUBBA REDDY INSTITUTIONS OF MANAGEMENT

ABSTRACT
Social entrepreneurship has become the buzz word in India and around the
world. People have found this concept of philanthropy a bit intriguing in nature. It has
the best mixture of social service and entrepreneurship; this combination makes it most
attractive and so unique in nature. Usually entrepreneurship is related to economic
activities and being ruthlessly profit making and ignoring social benefits or societal
wellbeing. In the present era of heavy industrialization and economic growth, societal
gains have taken back seat or even out of the sight all around the world, including
India, with the concept of social entrepreneurship rising in India and around the world
has helped in serving the society in more meaningful manner than ever before along
with living the spirit of entrepreneurship with its fullest. Social entrepreneurship is not
a newer concept but the positioning of the concept has risen to new heights in recent
times.

Key words
Social entrepreneurship, Social needs, social entrepreneurs, economic
entrepreneurs, Bottom of the pyramid

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INTRODUCTION
Entrepreneurship is the core force of economic growth; the economic
development which one experiences is just due the prevailing force of entrepreneurship.
The commonality between all the developed nations all around the world is the presence
of entrepreneurship. Economic development is totally based upon the growth of
entrepreneurship and more the entrepreneurship is grown, infrastructure as well as all
the indicators of development has also grown. In very short span of time, government
of various states all around the world, have understood and underlined the importance
of entrepreneurship. Thus governments have started working on the basic ground
work/infrastructure required for the systematic development of entrepreneurship in their
respective countries. India also understood the importance of entrepreneurship and
worked a lot in the overall development of entrepreneurship. The very basic element of
overall development including social, can be contributed to entrepreneurship’s detailed
development. For the sake of understanding, entrepreneurship was first used for

business/economic context in 18th century by a French economist Richard Contillon,

who associated entrepreneurship with business risks and uncertainty bearing. The prime
objective of social entrepreneurship stands different than the usual objectives of
entrepreneurship; here social benefits are clubbed with economic benefits. Most of the
times, social entrepreneurship is used in synonymous with social service/work.

OBJECTIVE OF THE STUDY

The present study is based on specific objectives, which it justifies also. The objectives
have been selected to keep the importance and rationality of the research title in mind.
Following are the objectives which this research study intents to achieve
1. To study social entrepreneurship with its basic framework.
2. To underline the roles and responsibilities of social entrepreneurs in India society.
3. To study the overall contribution of social entrepreneurship and social
enterprises in India.
4. To list out the challenges faced by social entrepreneurship in India.

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 5. To give suggestions to face prevailing challenges for social entrepreneurship in
India.
RESEARCH METHODOLOGY

The research methodology which is applied during the research study is descriptive in
nature. The data collection of data is done on secondary basis and the research is strictly
done to meet the objectives set previously for the present research. The data and
information which is furnished in the study is taken from the various secondary
sources. Various reports and studies, books on social entrepreneurship have been
refereed in the present research. The objective of the research is to find the very basic
idea regarding social entrepreneurship; the data collection and research methodology
have been selected to keep the primary objectives in mind. The sources from where the
data has been collected for the present study is listed below
1. Reports of various industrial agencies like CII, ASSOCHEM, FICCI etc has been duly
referred for the study.
2. Published reports from government bodies like ministry of commerce and industries
3. Research papers on related topics have been taken for the inputs
4. Web resources related to the topic have been used for the information
5. Websites and published material of social enterprises working all over India and
globally.
6. All the other published material on social entrepreneurship or entrepreneurship has
been referred during the research.

MEANING AND DEFINITION OF SOCIAL ENTREPRENEURSHIP

“Social entrepreneurship is the process of recognizing and resourcefully pursuing
opportunities to create social value for society. Social entrepreneurs are innovative,
motivated for resolving social issues, resourceful, and results oriented. They prepare a
mind-set after best thinking in both the business and non-profit worlds to develop
strategies that maximize their social impact by addressing social inequalities and social
problems. These entrepreneurs exist in all kinds of organizations: large and small; new
and old; religious and secular; non-profit, for-profit, and hybrid. Such organizations
comprise the ‘social sector”

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 Social entrepreneurship is one of the important tributary of entrepreneurship, it is more
than just philanthropy and has deeper and immense impact on social changes/upliftment
in developing nations. Government has started encouraging social entrepreneurship to
great extent so that the social inequalities can be handled and an ideal society can be
achieved as well. Social entrepreneurship is meant by special sort of initiatives, which
is both social work and economic in nature. Wikipedia defines social entrepreneurship
as “Social entrepreneurship is the work of a social entrepreneur. ss

WHO IS A SOCIAL ENTREPRENEUR?

Social entrepreneurs are those entrepreneurs who basically undertake social

entrepreneurship. They have all the traits of economic entrepreneur, except the
motivational force they have which is derived from social inequalities and social
insufficiencies. Social entrepreneurs are the people who undertake any social problem
or short coming and convert that into a solution cum product. They aim for non-
personal profits rather than a profit, the primary objectives of their existence is to serve
the society rather than earning profits. They also innovate; their innovation is referred
as “Social Innovation”

SOCIAL ENTREPRENEURSHIP IN INDIA

1. In Maharashtra, Zero Miles is building multi-utility drinking water centres to bring
people together for community development.
2. Aadhan builds classrooms — and a host of other spaces — from discarded shipping
containers.
3. Traditional Indian crafts and artistry can benefit greatly through access to online and
urban markets via social enterprises. Ziveli is such a social enterprise, bringing the
kauna craft-work of Manipur to the world.
These are the few examples of social entrepreneurship in India, which are
into different domain of working. The majority of this social entrepreneurship is
focused on rural and semi urban areas. As the need for social entrepreneurship is
growing, the social enterprises are growing as well. The social entrepreneurship has a
wide area of coverage from cottage industry to village produced goods, farm produced
to handicrafts etc. Social entrepreneurship is also spreading over education and health

52
 sector as well to provide cheap education and health care to people. It is also a way to
uplift the way and conditions of living of people.

BASIC TRAITS OF SOCIAL ENTREPRENEURSHIP:

The social entrepreneurship has basic traits of looking for ways to dealing with social
issues/problems in more innovative and entrepreneurial manner. Social
entrepreneurship begins with identification of social problem/shortcoming then it
moves to systematically analyzing the identified problem, considering all the possible
aspects.
1 Social entrepreneurship has risk taking capacity like any other branch of
entrepreneurship, it takes risks and uncertainties in setting up a social entrepreneurs.
2 Social entrepreneurship has vision and foresights as well, it sees the problems and finds
the solution like nobody can imagine about.
3 Social entrepreneurship provides leadership and direction to people who are working in
social enterprise for achieving a common goal.
4 The biggest and probably the unique feature of entrepreneurship is creativity, which
also exists in social entrepreneurship as well. Social entrepreneurship looks for creative
solutions for social problems.

ROLES AND RESPONSIBILITIES OF SOCIAL ENTREPRENEURS

TOWARDS INDIA SOCIETY
As mentioned earlier as well, India and similar societies provide
best grounds for social entrepreneurship to prevail and grow to its best. Developed
societies have limited scope for social entrepreneurship, as the social inequalities are
minimalistic. On the other hand, social inequalities are at its maximum in
underdeveloped, developing and least developed nations. The responsibility of any
entrepreneur is highly and prominent in nature, but when it comes to social
entrepreneurship or social entrepreneurs, they are inevitable for social up liftment. As
our experience has told us again and again that social value creation, social gains and
social changes can only be achieved by selfless people, who apply entrepreneurial skills
along with managerial skills for societal gains and non-personal profits. These selfless

53
 people are termed as social entrepreneurs. The roles and responsibilities of social
entrepreneurs are given as under with reference to India society
1. Social entrepreneurs have the capacity to influence the society by their unique
product/service aimed at the social upliftment. Their role begins with identifying the
social problem which concerns everybody rather than certain sect of people in society.
So identifying an appropriate social issues/problem is very important.
2. Social entrepreneurs in India face certain problems related with mindset of people who
do not want to change their way of doing things. The biggest role of social entrepreneurs
is pursuing them to make fundamental changes, which will reflect in overall society.
3. Social entrepreneurship depends upon social innovations; the challenge is to create
such innovations which can resolve the social problem completely by using minimum
resources.
4. Social entrepreneurs have the role to reach at the remotest corner of country for
targeting the social sections, which are deprived to basic facilities. The responsibility of
social entrepreneurs is to reach such people and serve them positively.
5. Social entrepreneurs are supposed to provide employment as well with their unique
approach. Providing employment to local people having minimum skills and
qualifications is biggest responsibility of social entrepreneurs.

CONCLUSION AND FINDINGS OF THE STUDY

Social entrepreneurship can change the face of society in India, there have been many
such examples and projects which run under the banner of social entrepreneurship and
proved to be life altering for people of that vicinity. In India especially social
entrepreneurship has better prospects as the social problems are at full swing here.
Social entrepreneurship is a unique combination of entrepreneurial traits and
philanthropy. In social entrepreneurship products and services are designed to make
maximum social impact along with making considerable profits for the firm. Here the
working area of firm is typically the area/region which are generally ignored by big
firm of economic entrepreneurship. In a way the product and service offerings of social
entrepreneurship is quite unique and caters the societal requirement better then
economic requirements. This is an exact situation of entrepreneurial traits being
implemented for a social cause/problem. Other than that all the basic elements of
entrepreneurship are similar to its parent entrepreneurship. If the government and other

54
 stake holders can work out the challenges of social entrepreneurship effectively, then
social entrepreneurship is beyond any doubt is the most important tool which has the
full capacity to change the very face of society in India.
1. Social entrepreneurship is a best combination of social service and entrepreneurial
skills to look for social problems.
2. Social entrepreneurship has the capacity to socially innovate. These innovations are the
exact and creative answer to social issues/problems which are prevailing in India.
3. There are many examples of social enterprises which are working in India and changing
the very face of society in India by their unique offerings, which involves the local
expertise to create social values.
4. The growth of social entrepreneurship has reflected upon the employment and infusion
of skills among people at the bottom level. The best example in this regard is barefoot
college of Rajasthan.
5. The level of education and healthcare has also increased due to social enterprises and
their growth in recent times in India.

REFERENCES
1. Singh,Pratap. Dr, “Social Entrepreneurship: A Growing Trend in Indian Economy”,
International Journal of Innovations in Engineering and Technology (IJIET), Vol. 1 Issue
3.ISSN: 2319 – 1058, 2012

2. Daru,Mahesh U. and Gaur, Ashok, “Social entrepreneurship- a way to bring social

change”, Innovative journal of business and management, ISSN No.22774947, 2013.

3. Mair,Johanna and Marti,Ignais “Social entrepreneurship research: A source of

explanation, prediction and delight”, IESE business school, university of Navarra, Spain,
2005.

55
 Venture capital financing for promising young entrepreneurs
Dr. Ravi Sankar Kummeta Dr. N. Ramanjaneyulu
Associate professor, Associate professor,
Dept of Management studies, ALTS Dept of Management studies, ALTS
Mail: ivar.shankar@gmail.com Mail: ramanjimba09@gmail.com
ABSTRACT
Venture capital financing provides financial support to startup companies and small businesses
that are believed to have long-term growth potential. Venture capitalists are the well-off
investors, investment banks and any other financial institutions. However, it does not always take
a monetary form; it can also be provided in the form of technical or managerial expertise.
Venture Capital is one potential option, in order to meet the requirement of equity finance when
the banks failed to provide loans to potential business. The present study explains the venture
capital support to promising young entrepreneurs to finance potential long-term business. It also
explains, the methodology of venture capital financing to start-up’s of young promising
entrepreneurs.

Key words: Venture capital, Equity financing, promising entrepreneurs, methodology, start-up.

INTRODUCTION:
Venture capital financing is funding provided to companies and entrepreneurs. It can be
provided at different stages of their evolution. It has evolved from a niche activity at the end
of the Second World War into a sophisticated industry with multiple players that play an
important role in spurring innovation. Venture capitalist fills the gap in the owner’s funds in
relation to the quantum of equity required to support the successful launching of a new
business or the optimum scale of operations of an existing business. It acts as a trigger in
launching new business and as a catalyst in stimulating existing firms to achieve optimum
performance.
OBJECTIVES OF THE STUDY:
1. To study the concept of venture capital
2. To distinguish venture capital with debt financing
3. To describe the methodology of venture capital financing to promising entrepreneurs.
SIGNIFICANCE:

56
This study explains the importance of venture capital fund to the promising young entrepreneurs
who have long-run business plans. And also, How Venture capital is different from the traditional
debt financing from various sources?. It also answer for the question, what is the methodology
adopted in venture capital financing for start-up business?
CONCEPT OF VENTURE CAPITAL:
Narrowly speaking, venture capital refers to the risk capital supplied to growing companies and
it takes the form of share capital in the business firms. Both money provided as start-up capital
and as development capital for small but growing firms are also included. In India, venture
capital comprises only seed capital, finance for high technology and funds to turn research and
development into commercial production.

In broader sense, venture capital refers to the commitment of capital and knowledge for the
formation and setting up of companies particularly to those specializing in new ideas or new
technologies. Thus, it is not merely an injection of funds into a new firm but also a simultaneous
input of skills needed to set the firm up, design its marketing strategy, organize and manage it.

In western countries like the USA and UK, venture capital perspective scans a much wider
horizon along the above sense. In these countries, venture capital not only consists of supply of
funds for financing technology but also supply of capital and skills for fostering the growth and
development of enterprises.

Private equity firms mostly buy mature companies that are already established. The companies
may be deteriorating or not making the profits they should be due to inefficiency. Private equity
firms buy these companies and streamline operations to increase revenues. Venture capital firms,
on the other hand, mostly invest in startups with high growth potential.

Private equity firms mostly buy 100% ownership of the companies in which they invest. As a
result, the companies are in total control of the firm after the buyout. Venture capital firms invest
in 50% or less of the equity of the companies. Most venture capital firms prefer to spread out
their risk and invest in many different companies. If one startup fails, the entire fund in the
venture capital firm is not affected substantially.

57
VENTURE FINANCING V/S DEBT FINANCING:

Venture capital is a method of financing a business start-up in exchange for an equity stake in the
firm. The risk of investment loss and the potential for future payout are both very high. As a
shareholder, the venture capitalist’s return is dependent on the growth and profitability of the
business. Return is earned when the business is sold to another owner or it “goes public” with an
initial public offering (IPO). The venture capitalist can then “exit” by selling his shareholdings in
the company. With capital financing, companies can acquire large sums of capital that would not
be possible through bank loans and other conventional methods. This is essential for start-ups
with limited operating histories and high upfront costs. In addition, repayment of VC investors
isn’t necessarily an obligation like it would be for a bank loan.

METHODOLOGY OF VENTURE CAPITAL FINANCE/ STAGES OF FINANCE:

From the New company's stand point, here is how the whole process looks. The company start
up and needs money to grow. Company seeks Venture Capital firms to invest in.
The founders of the company Create Business Plan which shows that what they have planned
and what they think will happen with the company over a period of time. That is how much time
it will take to earn desired profit. Venture Capitalists look at the plan, if they like it and see the
growth potential, they invest in the company. The venture capital funding procedure gets
complete in six stages of financing corresponding to the periods of a company’s development.
 Seed money: low level of financing
for providing an fructifying new
idea
 Start-up: new firms needing funds
for expenses realted with
marketing and product
development
 First stage financing:
manufacturing and early sales
funding

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  Second stage financing: operational capital given for early stage companies which are
selling products, but not returning a profit
 Third stage financing is also called Mezzanine financing
 Fourth stage financing is also called Bridge financing and it is proposed for financing the
“ going public” process.

In some cases Venture Capitalists offer more than just money. It can be Venture Capitalists Lots
of contacts or experience or anything. Typically Venture Capitalists will invest entire funds and
then anticipates that all of the investment it made will liquidate in 3 to 7 years. One big
negotiating point needs to be discussed when Venture Capitalists invest money is "How much
stock Venture Capitalists should get in return for the investment of money?" This question is
answered by choosing a Valuation for the company.
The Venture Capitalists and people in the company needs to agree how much the company is
worth. This is the Pre-Money Valuation of the company. Then Venture Capitalists invest in and it
creates Post-Money Valuation. The % increase in the value determines how much stock the
Venture Capitalists receives. Typically Venture Capitalists might receive 10%-50% of a company
in return. More or less is possible. The original shareholders are diluted in the process. Prior to
Venture Capitalist’s investment, share holders own 100% of the company. But if Venture
Capitalists holds 50% then remaining 50% will be of shareholders.
There are companies who typically use venture capital in advertising as they need lots of money
for advertising, equipments and employees.
CONCLUSION:
Venture Capital is in its simplest form a sale of a portion of potential business. A venture
capitalist will evaluate the idea, business plan, and try and make a determination about whether it
will succeed or fail. If they have faith in the idea they invest money in return for a percentage of
the equity of the business. When investors view an entrepreneur's idea or company that they
think might succeed, they will offer to make a venture capital investment in exchange for a high
percentage return. In some cases the investors will also want to play a key role in the decision
making process. A venture fund has terms and conditions that define the partnership, including
how the general partners get paid, how the limited partners get paid, how the money in the fund
will be invested, how much money will be in the fund, the process for resolving disputes
59
between general partners and limited partners, the fund duration and lots of other details. A
venture capital firm may have several funds. Each fund is a separate legal entity under the firm's
management.

REFERENCES:

1. Dheeraj Pandey and Thillai Rajan (2011) “Empirical Study on Venture Capital and
Private Equity Investments: US and India” , “International Conference on Technology
and Business Management”, Pp.301-314

2. Pandey, I.M. (1996) “Venture Capitalist’s Evaluation Criteria in a Developing Country: A

Case of India.” “International Journal of Development Banking”, Vol. 14, No.1, January

3. La Beau, Christina. "Growing in Size But Not in Equity: Women Businesses Still Lag in
Venture Capital." Crain's Chicago Business. 13 December 2004.

4. Lerner, Josh, F. Hardymon, and A. Leamon. “Venture Capital and Private Equity: A
Casebook.” New Jersey: John Wiley & Sons, 2008.

5. McKimmie, Kathy. “Funding Fundamentals: Where to Turn for Startup and Expansion
Capital.” Indiana Business Magazine, January 2004, 24–27.

6. Amruth Prasad Reddy and Venkata Subbaiah (2011) “A study with reference to APIDC
VCL”, “International Journal of Research in Finance and Marketing”, Vol.1, Issue.2, Pp
140-162

7. Bliss, R. T. (1999) “A Venture Capital model for transitioning economies: the case of
Poland, Venture Capital”, “An International Journal of Entrepreneurial Finance”, Vol. 1,
Pp 241 – 257.

8. Rajan, Deshmukh (2009) “India Venture Capital and Private Equity”, Working Paper,
Indian Institute of Technology Madras.

9. Sabarinathan (2002) “Venture Capital Investments Trends in IT Business in India”,

“Management Review”, Vol.14, No.1, pp. 79-95.

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 VENTURE CAPITAL

*Y.SHAARADHA, ** Dr.KHYSER MOHD

*Research Scholar, Dept of Business Management ,
Telangana University -503322
Email : sharadha.deshaipeta@gmail.com

** Head,Dept of Business Management,

Telangana University -503322
Email: drkhysermohdtu@gmail.com

Abstract
Venture capital has developed as a result of the need to provide non-conventional, risky
finance to new ventures based on innovative entrepreneurship. Venture capital fund refers to a
pooled investment vehicle that primarily invests the financial capital of third-party investors
in enterprises that are too risky for the standard capital markets or bank loans. Venture capital
is most attractive for new companies with limited operating history that are too small to raise
capital in the public markets and have not reached the point where they are able to secure a
bank loan or complete a debt offering. In exchange for the high risk that venture capitalists
assume by investing in smaller and less mature companies, venture capitalists usually get
significant control over company decisions, in addition to a significant portion of the
company’s ownership. The paper discusses on the functioning of venture capital in India,
venture capital investment in India and the growth rate since its instigation.

Key words: Venture Capital, Risky finance, Innovative entrepreneurship, Third party
investors.

INTRODUCTION
Venture capital is defined as ‘providing seed, start-up and first stage financing’ and
also ‘funding the expansion of companies that have already demonstrated their business
potential but do not yet have access to the public securities market or to credit oriented
institutional funding sources.

The European Venture Capital Association describes it as risk finance for

entrepreneurial growth oriented companies. It is investment for the medium or long term
return seeking to maximize medium or long term for both parties. It is a partnership with the
entrepreneur in which the investor can add value to the company because of his knowledge,
experience and contact base.

The Venture capital investment aids for the growth of innovative entrepreneurships in
India. Venture capital has been developed as a result of the need to provide non-conventional,
risky finance to new ventures based on innovative entrepreneurship. Entrepreneurs with great
business ideas who were not backed by investment capacity found it difficult to start the
businesses. Venture capital is an investment in the form of equity, quasi-equity and sometimes
debt – straight or conditional, made in new or untried concepts, promoted by a technically or
professionally qualified entrepreneur. Venture capital means risk capital. It refers to capital

61
investment, both equity and debt, which carries substantial risk and uncertainties. The risk
envisaged may be so high as to result in total loss or very less so as to result in high gains.

In the 1920’s & 1930’s, the wealthy families of and individuals investors provided the
start up money for companies that would later become famous. Eastern Airlines and Xerox
are the more famous ventures financed. Among the early VC funds set up, was the one by the
Rockfeller Family, which started a special fund called VENROCK in 1950, to finance new
technology companies.

While in its early years venture capital may have been associated with high
technology, over the years the concept has undergone a change and it implies pooled
investment in unlisted companies.In the absence of an organised Venture Capital industry
until almost 1995, individual investors and development financial institutions played the role
of venture capitalists in India. Entrepreneurs have largely depended upon private placements,
public offerings and lending by the financial institutions. In 1973, a committee on
Development of Small and Medium Enterprises highlighted the need to foster venture capital
as a source of funding new entrepreneurs and technology. Thereafter some public sector
funds were set up but the activity of venture capital did not gather momentum as the thrust
was on high-technology projects funded on a purely financial rather than a holistic basis.

VENTURE CAPITAL IN INDIA

In India, the Venture Capital plays a vital role in the development and growth of
innovative entrepreneurships. Venture Capital activity in the past was possibly done by the
developmental financial institutions like IDBI, ICICI and State Financial Corporations. These
institutions promoted entities in the private sector with debt as an instrument of funding. For
a long time, funds raised from public were used as a source of Venture Capital. This source
however depended a lot on the market vagaries. And with the minimum paid up capital
requirements being raised for listing at the stock exchanges, it became difficult for smaller
firms with viable projects to raise funds from public.

In India, the need for Venture Capital was recognised in the 7th five year plan and long
term fiscal policy of GOI. In 1973 a committee on Development of small and medium
enterprises highlighted the need to faster VC as a source of funding new entrepreneurs and
technology. VC financing really started in India in 1988 with the formation of Technology
Development and Information Company of India Ltd. (TDICI) – promoted by ICICI and
UTI.

The first private VC fund was sponsored by Credit Capital Finance Corporation (CFC)
and promoted by Bank of India, Asian Development Bank and the Commonwealth
Development Corporation viz. Credit Capital Venture Fund. At the same time Gujarat Venture
Finance Ltd. and APIDC Venture Capital Ltd. were started by state level financial
institutions. Venture capitalists in India are investing in the following sectors.

 IT and IT-enabled services

 Wireless/Telecom/Semiconductor
 PSU Disinvestments

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  Bio Technology/Bio Informatics
 Pharmaceuticals
 Electronic Manufacturing
 Retail
 Software products
 Banking
 Media

Venture capitalists tries to focus on areas with promising returns though with high risk rather
than other businesses without much back ground in general.

VENTURE CAPITAL INVESTMENT IN INDIA

The venture capital investment in India till the year 2001 was continuously increased
and thereby drastically reduced. It is estimated that there was a tremendous growth by almost
327 percent in 1998-99, 132 percent in 1999-00, and 40 percent in 2000-01 thereafter venture
capital investors slow down their investment. Surprisingly, there was a negative growth of 4
percent in 2001-02 it was continued and a 54 percent drastic reduction was recorded in the
year 2002-2003.

In venture capital investment banking the bank has many in-house criteria which
evaluates the prospects of the start up business and tries to determine the ROI (Return on
Investment) before making any decision of sanctioning funds to the firm in the form of loans
for the new business ventures. The venture capital investment banking system helps the new
start up businesses to get additional funds and the evaluation process enables the firm to
know about the positive and negative aspects of the new proposal and prepare for the new
business venture. The venture capital investment banking system not only involves providing
funds to a new business but it even helps in subsidizing risky investments. One of the most
attractive features of venture capital investment banking is that it is highly subsidized as
compared to other means of financing.

There are numerous ways used by banks in the venture capital investment banking
system to ensure a regular flow of income so as to avoid any risk regarding profits such as
real estate, financial advising and private equity. Evaluating the risks in investment is the
major job of the venture capital investment banking system and the banks may not provide
the loans if it considers the proposal too risky and unprofitable for investment.

GROWTH RATE IN INDIA

Competitive intensity in the market continues to increase with a growing number of

funds. From 474 active participating funds in 2014–16, active players in India increased to

63
 491 funds during 2015–17. Consequently, investors believe that competition has increased,
with local and global PE firms viewed as the biggest competitive threats. Average deal size in
2018 was flattish. A decrease in small-ticket deals of less than $25 million exerted upward
pressure on the average deal size, but the average size decreased for transactions greater than
$100 million. Furthermore, the average deal size in consumer tech declined approximately
30%. This was primarily due to Wall Mart acquisition of Flip kart.

India remained a hotbed for deal making in 2018. Investment momentum was robust
for a second consecutive year, with total investment of $26.3 billion from approximately 793
deals during the year. While the deal volume was higher than in 2017, the average deal size
was flat. The result was a small decline in total investment value, which still was the second-
highest in the last decade.

As in previous years, the total share of late-stage investments and buyouts increased,
with an increase in majority deals as well. These featured a few large individual buyouts like
Star Health and Allied Insurance ($930 million) and Prayag raj Power Generation Company
($830 million).

The number of active participating funds continued to grow, and investors expect
local and global PE firms to provide the biggest competitive threats in 2019.Over the next
few years, investors see attractive opportunities in financial services and consumer/retail,
even though valuations are perceived to be high. Interest is also strong in healthcare and
technology.

Private equity and venture capital (PE/VC) funds are playing a key role in defining
India’s economic growth. In the last 15 years, the PE/VC Industry has provided risk capital of
over $200 billion investing in 4,000 odd companies. In 2019 alone, the industry invested $37
billion in the businesses. These investments resulted in the creation of 30 per cent more
employment and 90 per cent more taxes compared to non-funded firms. With 27 Unicorns as
a part of the ecosystem, together the start-ups have created nearly US$90 billion in value for
the economy.

The table below gives us the details of some of the Indian funding details in the month
of January 2020 that shows the number of deals have been considerably on an increase.

1 09/01/2020 BYJU’S E-Tech E-learning Bengaluru 200,000,000

2 13/01/2020 Shuttl Transportation App based Gurgaon 8,048,394

shuttle service

3 09/01/2020 Mamaearth E-commerce Retailer of Bengaluru 18,358,860

baby and
toddler

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1 09/01/2020 BYJU’S E-Tech E-learning Bengaluru 200,000,000

products

4 02/01/2020 https://www.wealthbucket.in FinTech Online New Delhi 3,000,000

/ Investment

5 02/01/2020 Fashor Fashion and Embroiled Mumbai 1,800,000

Apparel Clothes For
Women

6 13/01/2020 Pando Logistics Open-market, Chennai 9,000,000

freight
management
platform

7 10/01/2020 Zomato Hospitality Online Food Gurgaon 150,000,000

Delivery
Platform

CONCLUSION

There has been a momentum in the growth of Venture Capital Industry ever since its
initiation as the Government has taken several steps for its deepening in the economy. Since
SEBI is made the nodal agency to regulate and facilitate the growth of Venture Capital
Industry, an initiation of SEBI, CII and Indian Venture Capital Association (IVCA) to look up
on the hindrances or the roadblocks for the success of the industry as a growing economy,
India is in requirement of young entrepreneurs who are to be given much more assistance to
enhance their innovative ideas to foster the economic growth of the country.

BIBLIOGRAPHY

 Venture Capital at Crossroads

http://www.nishithdesai.com/fileadmin/user_upload/pdfs/Venture_Capital_at_Crossroads.pdf

 Growth of Venture Capital In India

www.researchgate.net/publication/326173096
 SEBI registered venture capital funds
www.sebi.gov.in/sebiweb/other/OtherAction.do?do.

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  The Growth of Venture Capital in India

International Journal of Commerce and Management

 trak.in/india-startup-funding-investment

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