Module 2: Dimensions and Emerging Trends of Entrepreneurship 8 Hours

Entrepreneurial Society-Women Entrepreneurship-Rural Entrepreneurship-Social

Entrepreneurship Entrepreneurial Potential-Emerging Trends in Entrepreneurship
Development- Business Environment, Opportunities-Elements of Entrepreneurial Ventures-
New technology in Entrepreneurship-Evaluation of Entrepreneurship in India-Introduction to
the business plan.

https://hbr.org/2016/10/6-signs-youre-living-in-an-entrepreneurial-
society#:~:text=The%20entrepreneurial%20society%20is%20a,economy%20or%20market%
20to%20flourish.
The entrepreneurial society is a prosperous society, where more and more people are able to
choose what they do, and when they do it. Innovation and entrepreneurship are the necessary
ingredients for any economy or market to flourish.
Entrepreneurial societies are different. They thrive on developing innovations that are pulled
into society because these innovations solve an important job-to-be-done. Consider the
proliferation of mobile telephony in many poor countries today. Barely a decade and a half
ago, mobile phones were seen as a toy for the rich and a luxury many poor people could not
afford. But through the efforts of entrepreneurs and innovators who devised affordable
devices and plans, hundreds of millions of poor people in India, China, and across Africa now
have access to mobile devices.
In entrepreneurial societies, innovation always precedes regulation. In the United States, for
instance, scientists and engineers in Silicon Valley, Boston, and New York are always one
step ahead of regulators, developing innovations that help us solve some of our most critical
problems. The regulators eventually catch up, but not before the innovators have developed
viable solutions for us to improve our lives. If the regulations in your society precede
innovation from entrepreneurs, this is likely to curb the entrepreneurial spirt of innovators.

What is Entrepreneurial Society

https://www.igi-global.com/dictionary/entrepreneurial-society/51034
1.
It is an entrepreneurship driven society where the institutional framework of systems and
policies processes are focused on practicing entrepreneurial management for self-
renewal. Learn more in: Women Entrepreneurship in a Muslim Environment: The Case of
Algeria
2.
An innovation and entrepreneurship driven society where the institutional framework of
systems, policies, processes is focused on practicing entrepreneurial management for self
renewal. Learn more in: Entrepreneurship Education for an Entrepreneurial Society

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Women Entrepreneurship
Source - https://ccsuniversity.ac.in/bridge-library/pdf/DHA-MHA-403_Unit3.pdf
Women Entrepreneurs means the women or a group of women who initiate, organize and
operate a business enterprise.
Nature: The term “women entrepreneur” deals with that section of the female population
who venture out into industrial activities i.e. manufacturing, assembling, job works,
repairs/servicing and other businesses.
Definition:
“An enterprise owned and controlled by woman having a minimum financial interest of 51%
of the capital and giving at least 51% employment generated to women” -By Government of
India
“Women who innovate initiate or adopt business actively are called women entrepreneurs.” -
J.Schumpeter
WOMEN ENTREPRENEUR- IN INDIAN PERSPECTIVES:
Indian women is changing and they are fast emerging as potential entrepreneurs. Role
modeling of women in non-traditional business sectors to break through traditional views on
men’s and women’s sectors. Women companies are fast-growing economies in almost all
countries. The latent entrepreneurial potential of women have changed little by little by the
growing awareness of the role and status of economic society. Skills, knowledge and
adaptability of the economy led to a major reason for women in business. Women are coming
forth to the business arena with ideas to start small and medium enterprises. They are willing
to be inspired by role models- the experience of other women in the business arena.
Women entrepreneurs can be broadly categorized into five categories:
1) Affluent entrepreneurs – These are daughters and wives of wealthy businessmen. These
women have the financial aid and the necessary resources to start a new enterprise and take
business risks.
2) Pull factors – These are educated women living in urban areas with or without work
experience who take the risk of a new enterprise with the help of financial institutions and
commercial banks. These women take up a new business as a challenge in order to be
financially independent.
3) Push factors – These women take up some business activity in order to overcome financial
difficulties. Generally widows and single women manage an existing family business or
develop a new business due to difficult family situations.
4) Rural entrepreneurs – These women belong to rural areas and choose a business suiting
their resources and knowledge. Business carried out involves low investment, minimum risk
and does not require any special skills.

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5) Self-employed entrepreneurs – They are uneducated women who fall below the poverty
line. They choose tiny and small enterprises which are convenient to manage and adequate
for the sustenance of her family.

The following are the important problems faced by women entrepreneurs:

https://www.yourarticlelibrary.com/women/women-entrepreneurship/women-

entrepreneurship/99813

1. Financial Constraints:

For obtaining loans and advances from financial institutions, they have to provide collateral

securities. But, usually women do not have property in their names and this hinders them

from obtaining external sources of funds.

The banks also consider women as less credit worthy and discourage women borrowers on

the belief that they can at any time leave their business and become housewives again. Under

these circumstances, women entrepreneurs are bound to rely on their savings and loans from

friends and relatives. The quantity of such funds are often negligible leading to the failure of

women enterprises.

2. Over Dependence on Intermediaries:

Women entrepreneurs have to depend largely on intermediaries for the distribution of their

products. These intermediaries take a major portion of their profits. It may be possible for the

women entrepreneurs to eliminate the middlemen, but it requires additional investment of

capital and a lot of travel. Women entrepreneurs find it difficult to capture market and

popularise their products.

3. Stiff Competition:

Women entrepreneurs have to face stiff competition for the products from the organised

industries and male entrepreneurs. They do not have organisational set up to spend a lot of

money for canvassing and advertisement. The society has a feeling that the products

manufactured by women are inferior in quality on account of the fact that they are

manufactured by women themselves. These factors will lead to the liquidation of women

enterprises.

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4. Scarcity of Raw Materials:

Scarcity of raw materials is yet another important problem faced by the women

entrepreneurs. The price of raw materials is very high and women entrepreneurs usually get

the raw materials at minimum discount. The failure of many women co-operatives engaged in

basket making in 1971 is an example of how the scarcity of raw materials affects

entrepreneurship.

5. High Cost of Production:

Another problem faced by women entrepreneurs is the high cost of production. The

government grants and subsidies help them tide over this difficulty, but these grants and

subsidies are available only at the initial stages of its setting up. For expansion and

diversification activities these assistances will be negligible.

6. Limited Mobility:

Unlike men, women mobility in India is highly limited due to various reasons. Physically

they are not fit enough to travel a lot. A woman running an enterprise independently and

alone is often looked upon with suspicion. The humiliating attitude of officials towards

women compels them to give up the idea of starting an enterprise.

7. Family Ties:

The family responsibilities also hinder the development of women entrepreneurship. In India,

it is mainly a woman’s duty to look after the children and other members of the family. Man

plays a secondary role in these matters. In the case of married women, they have to make a

fine balance between their business and family.

Their success greatly depends on the support given by the family. Occupational backgrounds

of families and educational level of husbands have a direct bearing on the development of

women entrepreneurship.

8. Lack of Education:

In India around 60% of women are still illiterate. Illiteracy is the root cause of socio-

economic problems. Due to lack of education, women are ignorant of business technology

and market. It also reduces the achievement motivation among women. Thus, lack of

education creates problems for women in the setting up and running of business enterprises.

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9. Social Attitudes:

This is one of the most important stumbling block in the path of women entrepreneurship.

The constitution provides equality for both men and women, but there is widespread

discrimination against women. In a male dominated society, women are not treated as equals

to men. Women have the potential but they lack adequate training.

There is a common belief that skill imparted to a girl is lost when she gets married.

Therefore, girls continue to be helpers in agriculture and handicrafts and the rigid social

attitudes prevent them from becoming successful and independent entrepreneurs.

10. Male Dominated Society:

Male chauvinism is still the order of the day in India. The constitution of India speaks of

equality between sexes. But, in practice women are treated as ‘abalas’. Women suffer from

male reservations about their roles, abilities and capacities. In short, women are not treated as

equal to men. This is the main barrier to women’s entry into business.

11. Low Need for Achievement:

The pre-requisites for success in entrepreneurship are the need for achievement,

independence and autonomy. But in India the common Indian woman is happy to bask in the

glory of their parents, husband, children etc. They have preconceived notions about their role

in life. This inhibits them from achievements and independence.

In addition to the above difficulties, lack of infrastructural facilities, shortage of power,

difficulty in obtaining licenses from various control boards and a number of other socio-

economic problems stand as hurdles to the women entrepreneurs.

Solutions to the Problems of Women Entrepreneurs:

From the above discussion, it is clear that women entrepreneurs have to face a number of

problems.

Rural Entrepreneurship

https://businessjargons.com/rural-
entrepreneurship.html#:~:text=Definition%3A%20Rural%20entrepreneurship%20refers%20t
o,is%20termed%20as%20rural%20entrepreneurship.

5
https://101entrepreneurship.org/rural-entrepreneurship/

Definition: Rural entrepreneurship refers to the development of a new enterprise that

pioneers new products and services, creates a new market for its offerings or uses advanced
technology, in the rural area.

Need for Rural Entrepreneurship

The reasons for the rural entrepreneurship are discussed as under:

1. As the rural industries are labour-intensive, they tend to have a high possibility of
generating employment, which acts as a corrective measure to a number of problems
causing due to unemployment stemming in the rural areas.
2. Rural industries have a comparatively high potential of generating income,
which reduces the disparities amidst income earned by people living in urban and
rural areas.
3. Rural entrepreneurship stimulates the dissemination of economic activities in the
village areas, which ultimately results in balanced regional development.

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4. It does not just protect but also promotes the art, culture and creativity, i.e. the
varied heritage of that particular region.
5. When industries are set up in rural areas, it advances economic development which
reduces migration of the villagers to urban areas.
6. Curtails unequal growth in the urban areas, decreases the development of slums,
environment pollution etc.

• Agro-Based Enterprises: As the name suggests, these enterprises indulge in the

direct selling or processing of agriculture products, for example, sugar, dairy
products, fruit juice, spices, oils from oilseeds, jaggery etc.
• Forest-Based Industries: Industries dealing in the supply of wood or wood products,
coir industry, beedi industry, honey making, bamboo products, etc. are covered under
the forest-based industry.
• Mineral Based Industries: Cement industry, stone crushing, wall coating powders,
etc. are included in the mineral-based industry.
• Textile Industry: Industry in which weaving, spinning, tie and dye, colouring and
bleaching of textile are carried out is covered under this category.
• Handicrafts: Craft or artistic items made of wood, bamboo, glass, jute, soil, etc. are
called as handicrafts. Moreover, traditional decorative items, toys, antiques etc. are
also covered here.
• Engineering Services: It may include tools and equipment used in agriculture such as
tractors, pumps, pipes and fittings, repairs, etc.

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Social Entrepreneurs
https://www.ashokau.org/wp-content/uploads/2010/12/Social-Entrepreneurship-What-
Everyone-Needs-to-Know-Teaching-notes-final.pdf
The Heart of Social Entrepreneurship Social entrepreneurship at its essence is a process by
which individuals “build or transform institutions to advance solutions to social problems” (p.
1). Bill Drayton, founder of Ashoka, learned through his travels in India that powerful
examples of social change share two things in common: ―the organizations that were
making a difference had both a good idea and an unusually committed, creative and action-
oriented person at the helm: an idea champion or entrepreneur (p. 19). Social entrepreneurs
are the idea champions: people who advance change, working within, between and beyond
established organizations. The social entrepreneur also helps others discover their own power
to change by helping them envision a new possibility and recognize how it can be broken
down into doable steps that build momentum for change (p. 25).

Qualities of a Social Entrepreneur Social entrepreneurship is a process – involving a long-

term commitment and continual setbacks. For this reason, social entrepreneurs share certain
qualities, including the ability to overcome apathy, habit, incomprehension, and disbelief
while facing heated resistance (p. 21); the ability to shift behavior, mobilize political will, and
continually improve their ideas (p. 23); the ability to listen, recruit and persuade (p. 24);
among those they work with, they encourage a sense of accountability, and a sense of
ownership for the change (p. 25). Social entrepreneurs are also comfortable with uncertainty
and have a high need for autonomy (p. 26). Since social entrepreneurs will face adversity
along the way, another important quality is the capacity to derive joy and celebrate small
successes. Successful social entrepreneurship involves well-established behaviors which can
be acquired. While some people appear to be born with more entrepreneurial inclination than
others, most people can learn to behave like entrepreneurs (p. 27).

“Social entrepreneurship is the process of recognizing and resourcefully pursuing

opportunities to create social value. Social entrepreneurs are innovative, resourceful, and
results oriented. They draw upon the best thinking in both the business and non-profit worlds
to develop strategies that maximize their social impact. These entrepreneurial leaders operate
in all kinds of organizations: large and small; new and old; religious and secular; non-profit,
for-profit, and hybrid. These organizations comprise the ‘social sector’. ”

Forms of Social Entrepreneurship

https://www.dataroom24.com/exploring-social-entrepreneurship/
Clearly, social entrepreneurship is not a one-size-fits-all designation for a specific type of
activity. There are different types of entrepreneurs and entrepreneurship that fall under the
umbrella of social innovation. These different types of social entrepreneurship show just how
varied the concept can be.

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Community Project

A community project is a relatively small-scale effort to address an issue within a specific

community. Social, environmental and economic issues are the primary focus of most
community projects, but the interpretations of what this means can be quite broad. Anything
from an effort to build a community garden in an affluent suburb to the organization of a
volunteer fire department in a poverty-stricken rural area can fall under the umbrella of a
social entrepreneurship community project.
Community projects are one of the best examples of the idea that anyone can be a social
entrepreneur. You don’t need a business degree, power or connections to affect change where
you live. All you need is the entrepreneurial initiative, creativity, tenacity, and
commitment to see a project through to completion.
Non-profit Organization

The exact structure of a non-profit organization is likely to differ based on legal

jurisdiction, but on the whole, non-profit organizations exist not to generate revenue for
shareholders and stakeholders but to create an enterprise focused on a specific cause. One
common misconception is that non-profit organizations funnel all the donations they receive
into their mission, but this isn’t the case. Executive leadership for large non-profits can often
be quite well compensated; their income generally isn’t nearly as high as that of the leader of
a comparably sized organization in the private sector, but nonprofits do spend money
on operational expenses like salaries, marketing, and offices. Any extra revenue is put back
into the organization’s endowment or reinvested in other ways rather than paid out to
shareholders.
Aside from operations, though, nonprofits are bound by duty and often by law to use the
income they generate to address issues relating to their mission. Non-profits may focus
on specific issues, such as the treatment of a rare disease or their missions may be a bit more
general and focused on broad categories such as social impact, early childhood education,
women’s health, and cancer research.
Co-operative (Co-op)

People who come together to address a specific need often form co-operative groups, or co-
ops. These member-owned and operated enterprises usually focus on basic needs like housing
or groceries. According to the International Co-operative Alliance, co-ops are “autonomous
association[s] of persons united voluntarily to meet their common economic, social needs and
cultural needs and aspirations through a jointly owned and democratically controlled
enterprise.” In most places, co-ops have their own special legal specifications and
requirements, and they can operate on either a non-profit or for-profit basis. In most cases,
non-members cannot participate in the co-op, but a quick application process is usually all
that’s required to join. Members may be required to pay a membership fee to
cover operational expenses and they may also be required to perform certain duties to
keep the co-op up and running.
Social Enterprise

Businesses that operate according to a specific social or charitable mission are known as
social enterprises. These businesses are often backed by a non-profit organization and may

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exist to further that organization’s goal and opportunity. For example, a charity that
focuses on the health and well-being of senior citizens may start a weekly craft fair that
allows seniors to sell carpentry projects, embroidery or baked goods as a way of generating
some income.
Social enterprises typically focus on providing a job skills training opportunity
program for marginalized or vulnerable people and may use proceeds from the business to
pay salaries to populations supported by the non-profit organization or to fund the non-
profit’s efforts as a means of supplementing income through donations. Social enterprises
can also address inequality or injustice; one example of this is the casinos operated by
indigenous tribes in North American communities who have been displaced from their
ancestral lands by colonial governments.

Social Purpose Business

Some businesses founded to both generate profit and affect some sort of change for the
good of the general public or a specific group of people in need of assistance. An
organization that strives to strike an ideal balance between for-profit organizations and non-
profit programs is known as a social purpose business. Social entrepreneurs who follow this
route believe that the pursuit of financial gain doesn’t have to be at odds with ethical,
conscience-focused action. These kinds of businesses tend to attract impact investors. Impact
investing operates much like any traditional business investment or venture capital effort,
only with the added concern of generating social good. An impact investor will want to
ensure that their investment goes toward a business model that’s not only likely to succeed
but also likely to succeed in its mission of affecting positive change.

Current Entrepreneurial Trends

Internet Businesses - Online Business: A business that conducts business by means of the
internet. Small businesses that have used the internet have grown 46% faster than those that
do not. Service Businesses Dominate the American economy services: Tangible things that
businesses do for us that enhance our lives. Insurance, Sports and Entertainment, Tourism,
Accounting, Banking
Home-Based Businesses- Over 40 Million businesses are being conducted from home
Tradespeople, Graphic Artists, Sales Reps, Web Designers Socially Responsible Non-profit
Businesses Started to better society. Often non-profits Community theatre, feeding the
hungry, educational
Focus on technology can create a strong competitive advantage increases productivity can be
a company’s product strategic Alliances Strategic Alliance: Forming a partnership with
another company.3M and Tape dispenser companies.
Outsourcing- Contracting with other companies for services. Allows a business to focus on
what it does best. Decreases overhead allow companies to start new projects more quickly
Direct capital into money-making activities. Most common is business processing such as
accounting, human resources, and payroll.

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DIMENSIONS/COMPONENTS OF BUSINESS ENVIRONMENT

1. Economic Environment: It has immediate and direct economic impact on a business.

Rate of interest, inflation rate, change in the income of people, monetary policy, price level
etc. are some economic factors which could affect business firms. Economic environment
may offer opportunities to a firm or it may put constraints.
2. Social Environment: It includes various social forces such as customs, beliefs, literacy
rate, educational levels, lifestyle, values etc. Changes in social environment affect an
organization in the long run. Example: Now a days people are paying more attention towards
their health, as a result of which demand for mineral water, diet coke etc. has increased while
demand of tobacco, fatty food products has decreased.

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3. Technological Environment: It provides new and advance ways/techniques of
production. A businessman must closely monitor the technological changes taking place in
the industry as it helps in facing competition and improving quality of the product. For
Example, Digital watches in place of traditional watches, artificial fabrics in place of
traditional cotton and silk fabrics, booking of railway tickets on internet etc.
4. Political Environment: Changes in political situation also affect business organizations.
Political stability builds confidence among business community while political instability and
bad law & order situation may bring uncertainty in business activities. Ideology of the
political party, attitude of government towards business, type of government-single party or
coalition government affects the business Example: Bangalore and Hyderabad have become
the most popular locations for IT due to supportive political climate.
5. Legal Environment: It constitutes the laws and legislations passed by the Government,
administrative orders, court judgements, decisions of various commissions and agencies.
Businessmen have to act according to various legislations and their knowledge is very
necessary. Example: Advertisement of Alcoholic products is prohibited and it is compulsory
to give statutory warning on advertisement of cigarettes.

What are the Key Elements of an Entrepreneurship?

https://www.vedantu.com/commerce/four-key-elements-of-entrepreneurship
These four key elements of entrepreneurship include innovation, organization, risk and
vision.
Innovation
Innovation is considered as the key factor in the concept of entrepreneurship. An entrepreneur
adds to the economy in terms of innovation and discrepancy and the degree of these assures a
positive outcome. The entrepreneurs carry out imaginative and unique thoughts on the available
situations and strive to foster something new. It can be in terms of a new product, production
technique, technology, marketing strategy, and so on.

Organization
The organization is another key element of successful entrepreneurship. Without organization,
everything will become disorganized and unmanageable which further will cause losses,
decreasing business goodwill, unsatisfied customers, and mental stress to the staff due to which
the workers may leave the organization Hence it is insignificant to maintain a decent
organizational structure within the company, which defines who will perform a specific task
and the way that task would be performed.

Risk
All businesses involve risks and in entrepreneurship, it is the sole responsibility of the
entrepreneur only as it is a “one-man-show”. Without taking risks, a business cannot flourish
but on the other hand, indulgence in excessive risk-taking may lead to severe losses. Risk-
taking is another word for exploiting opportunities and gaining a competitive edge over others
performing in the same market. This way, the business and the economy both are facilitated.
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Vision
An entrepreneur must have a strong vision if he wants to succeed in the business. The foresight
of the entrepreneur determines how the business and other business policies will run. The way
the entrepreneur visualizes his business in the coming years is how the business moves forward
and the profitability is earned. Keeping the vision in the head, the tasks are identified,
performed, risks are taken and organizational culture is brought forth. It is important to set
long-term and short-term goals for a business so that the organizational objectives are learned.

What is a Business Plan?

1. What is a Business Plan? A Business Plan is a document in which a business
opportunity, or a business already under way, is identified, described and analyzed,
examining its technical, economic and financial feasibility. The Plan develops all of the
procedures and strategies necessary in order to convert the business opportunity into an
actual business project. It is an indispensable tool in order to start up a business project,
independently of the size of the project and/or of the amount of business experience of
the entrepreneur.

http://www.madrid.org/cs/StaticFiles/Emprendedores/Analisis_Riesgos/pages/pdf/metod
ologia/1Plandeempresa(AR)_en.pdf

Main Components of a Business Plan

Most plans will include the following main sections:

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• Executive summary
This is your five-minute elevator pitch. It may include a table of contents,
company background, market opportunity, management overviews,
competitive advantages, and financial highlights. It’s probably easiest to write
the detailed sections first and then extract the cream to create the executive
summary. Try to keep it to just a couple of pages.

• Business description and structure

This is where you explain why you're in business and what you're selling. If
you sell products, describe your manufacturing process, availability of
materials, how you handle inventory and fulfillment, and other operational
details. If you provide services, describe them and their value proposition to
customers. Include other details such as strategic relationships, administrative
issues, intellectual property you may own, expenses, and the legal structure of
your company.

• Market research and strategies

Spell out your market analysis and describe your marketing strategy,
including sales forecasts, deadlines and milestones, advertising, public
relations and how you stack up against your competition. If you can’t produce
a lot of data analysis, you can provide testimonials from existing customers.

• Management and personnel

Provide bios of your company executives and managers and explain how their
expertise will help you meet business goals. Investors need to evaluate risk,
and often, a management team with lots of experience may lower perceived
risk.

• Financial documents
This is where you provide the numbers that back up everything you described
in your organizational and marketing sections. Include conservative
projections of your profit and loss statements, balance sheet, and your cash
flow statements for the next three years. These are forward-looking
projections, not your current accounting outputs.
https://www.thehartford.com/business-insurance/strategy/writing-business-
plan/main-components

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