MINOR PROJECT ON:-

THE IMPORTANCE OF ENTREPRENEURS IN FUELING

ECONOMIC GROWTH

Submitted in partial fulfillment of the requirements for the award of the

degree of

Bachelor of Business Administration

To
Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by: ANSHITA GOEL

Ms. Sheetal Sehrawat Roll No: 28119101722

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

DELHI-110085
Batch (2022-2025)
 Certificate

I, Mr./Ms. ANSHITA GOEL, Roll No. 28119101722 certify that the Project Report/Dissertation

(BBA 114) entitled “THE IMPORTANCE OF ENTREPRENEURS IN FUELING

GROWTH”

is completed by me and it is an authentic work carried out by me at GITARATTAN

INTERNATIONAL BUSINESS SCHOOL . The matter embodied in this project work has not been

submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation (BBA-312) entitled “THE IMPORTANCE OF

ENTREPRENEURS IN FUELING GROWTH” done by Mr./Ms. ANSHITA GOEL, Roll

No. 28119101722_, is completed under my guidance.

Signature of the Guide

 Date:

Name of the Guide:

Designation:

Gitarattan International Business School, Delhi110085

Countersigned

Programme Coordinator Director

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Ms. SHEETAL SEHRAWAT

who gave me golden opportunity to do this wonderful project on topic “Importance of Entrepreneur

in Fueling Economic Growth”.

Secondly, I would like to thank my parents and friends who helped me a lot in finalizing this project

within the limited time frame.

Lastly, I like to thank all my supporters who have motivated me to complete this project before

timeline.

FORMAT FOR CONTENTS & LIST OF TABLES

CONTENTS

S No Topic Page No
1 Certificate 2
2 Acknowledgement 3
3 Chapter-1: Introduction 5-26
4 Chapter-2: Conceptual Review 27-28
 5 Chapter-3: Data Presentation, 29-33
Analysis and Interpretation
6 Chapter-4: Findings and 34-36
Conclusions
7 References/Bibliography 37-38
8 Appendices/Annexure 39-41

EXECUTIVE SUMMARY
Entrepreneurship is a vital driver of economic growth. Entrepreneurs create new businesses, which in
turn create jobs, generate income, and boost innovation. They also help to diversify the economy, which
makes it more resilient to shocks.

There are many ways that entrepreneurs can contribute to economic growth. They can:

1) Create new jobs:

When entrepreneurs start new businesses, they create new jobs for themselves and others. This is
especially important in countries with high unemployment rates.

2) Generate income:

Entrepreneurs generate income for themselves, their employees, and the government through taxes.
This income can be used to invest in new businesses, infrastructure, and education, which further boost
economic growth.

3) Promote innovation:

Entrepreneurs are often the first to adopt new technologies and business practices. This innovation can
lead to new products and services, which can improve the lives of consumers and businesses alike.

4) Diversify the economy:

Entrepreneurs can help to diversify the economy by starting businesses in new industries. This makes
the economy more resilient to shocks, such as changes in the global economy or natural disasters.
Governments can support entrepreneurship by providing access to capital, education, and training. They
can also create a favorable regulatory environment for businesses. By supporting entrepreneurship,
governments can help to create a more prosperous and vibrant economy.

The rise of entrepreneurship in India presents numerous opportunities for economic growth, innovation,

and employment generation. The country's young population, technological advancements, and

supportive government policies have created a conducive environment for startups and small

businesses. However, challenges such as access to capital, regulatory complexities, and infrastructure

gaps must be addressed to sustain and accelerate the entrepreneurial momentum. Furthermore, the

growth of women entrepreneurs is a positive trend that should be encouraged and nurtured through

targeted support programs and initiatives. By addressing these challenges and leveraging the available

opportunities, India can unlock the full potential of its entrepreneurial ecosystem, fostering inclusive

and sustainable economic development.

CHAPTER-1

Role Of Entrepreneurship In Economic Growth

Introduction

Entrepreneurship involves the creation and operation of a fresh business endeavor with the objective of

generating profits. It plays a pivotal role in propelling economic growth and advancement in developed

and developing nations alike. By stimulating the establishment of new job opportunities, encouraging

innovation and fostering market competition, entrepreneurial activity ultimately brings about

advantages for consumers. It can be viewed as a valuable resource for a nation, with entrepreneurs

serving as the catalysts behind this resource. It is vibrant and ever-evolving endeavor that not only

generates wealth but also fosters the creation of value, ultimately leading to enhanced overall welfare.

The significance of entrepreneurship in shaping society cannot be overstated, thus emphasizing the need

to nurture, inspire and incentivize this invaluable resource to the greatest degree attainable. By

recognizing the transformative power of entrepreneurs, societies can unlock immense potential for

progress, innovation and prosperity. Encouraging and supporting entrepreneurial endeavors can have far

reaching effects, stimulating economic growth, job creation and social advancement. As such, it is

imperative for governments, institutions and communities to adopt a proactive stance towards

entrepreneurship, fostering an environment conducive to its flourishing. By providing adequate

resources, mentorship programs, access to capital, and regulatory frameworks that encourage innovation
and risk-taking, we can maximize the positive impact of entrepreneurship and capitalize on its potential

to shape a brighter future. The significance of entrepreneurship in economic development cannot be

emphasized enough. This report will delve into the ways through which entrepreneurship contributes to

the progress and expansion of the economy, while also exploring the diverse benefits it offers.

What is Entrepreneurship?

The term “entrepreneurship” is a broad concept encompassing the establishment of a business.

Entrepreneurship entails the capacity and willingness to establish, coordinate, and operate a business

venture, even in the face of uncertainities, with the aim of generating profits. The act of initiating new

businesses is regarded as the foremost illustration of entrepreneurship.

Within the realm of economics, the intersection of entrepreneurship with land, labor, natural resources

and capital can yield financial gains the entrepreneurial mindset, characterized by exploration and the

willingness to take risks, is an essential component of a nation’s ability to thrive in an evolving and

increasingly competitive global market. An entrepreneur is characterized as an individual possessing

both the aptitude and aspiration to establish, manage and achieve success in a startup venture while

embracing the associated risks in order to attain profits. The epitome of entrepreneurship lies in the

initiation of a fresh business endeavor. Entrepreneurs are often recognized as originators of novel ideas,
acting as innovators who introduce new concepts to the market, thereby replacing outdated inventions.

Entrepreneurship encompasses a spectrum ranging from small or home based businesses to

multinational corporations.

Within the realm of economics, an entrepreneur’s profits are derived from a combination of land,

natural resources, labor and capital. To put it concisely, anyone who possesses the resolve and

determination to embark on a new business venture while confronting the accompanying risks has the

potential to become an entrepreneur. An entrepreneur can only became a successful entrepreneur only

when he knows how to run a business. The activities in which he should be good at are having good

communication skills, should be serious about his work, should not discriminate any employee, should

have good knowledge, should have leadership qualities, should motivate his employees and so on. Risk

is the main element which every business man should take to earn more profits. As it is said that more

risk will lead to more profits of a business. However sometimes risk may result in loss. An entrepreneur

should have following traits like passion for achieving his future goals or business goals, should have

the ability of risk taking, he should have a persisting nature which will help them in achieving goals,

should have innovative ideas for his business otherwise the business will not grow, should have

leadership quality and should lead in front, should be ethical in nature and should be polite with his

employees or with his business partners, should not be arrogant. Only this quality will make a perfect

entrepreneur.

Types Of Entrepreneurship
1) Small Business Entrepreneurship

Small Business Entrepreneurship refers to the establishment of a business on a smaller scale,

characterized by a limited number of employees, market reach and size. Many small businesses are

typically operated as sole proprietorship or partnerships, Conversely, larger businesses or startups often

opt to register as limited companies with shareholders. I believe that the definition of small business

entrepreneurship ultimately revolves around the objectives of the business. Startups are structured or

larger businesses are structured with shareholders and a governing board that oversees significant

decisions. In realm of small business entrepreneurship, owners enjoy greater flexibility and

independence when it comes to decision-making. The primary distinction between lies in their

respective scales. Startups are founded with a clear intent and aspiration to develop into large-scale

enterprises. From my perspective, small business entrepreneurship plays a crucial role in the economy.

Small businesses often serve as engines of innovation, contributing to job creation and economic

growth. They foster local entrepreneurship, promote community development and offer personalized

products and services. Additionally, small businesses can adapt swiftly to market changes, demonstrate

resilience, and cultivate strong customer relationships. Their agility and ability to cater to niche markets

contribute to the overall diversity and vibrancy of the business landscape. Supporting and nurturing

small business entrepreneurship can lead to thriving ecosystem that fuels economic prosperity and

fosters entrepreneurial spirit. It is a small scale business which have fewer employees, market capture

and size. Both startup and small business is runs by an entrepreneur. Small business entrepreneur has

full freedom and independence in running business. While in large business you need to take permission

or acceptance from your superior which indirectly have an impact on your operational, strategic and
 general business direction also. A small business run as a lifestyle business. You don’t have to take

enough stress as you can limit your customer and size of business

Characteristics

1. The owner or manager serves as a role model, exemplifying dedication and commitment. They

consistently arrive early and stay late, demonstrating their strong work ethic. The owner personally

knows each employee by name and their presence is unmistakable. By displaying a deep commitment,

they establish a standard for the entire workplace.

2. These businesses operate with a straightforward and transparent structure, promoting easy access to the

owner for all employees. They highly value the contributions of each team member, often granting them

the opportunity to influence aspects of the business that are typically inaccessible in larger hierarchical

organizations.

3. Staff members receive information in tandem with the owner, ensuring transparency. Goals, challenges

and concerns are openly discussed. Feedback is actively encouraged and employees are invited to

contribute their own ideas for enhancing operations and overcoming obstacles. This open

communication aspect is often greatly appreciated by the staff, as it sets small businesses apart.

4. Staff members are recruited with great care, recognizing that they are the lifeblood of any small

business. Hiring decisions are based on the potential benefits their knowledge, skills and abilities can

bring to the organization, rather than personal relationships or familial connections.

5. All staff members exhibit high levels of commitment and loyalty. Outstanding performance is

acknowledge with praise increased responsibilities and monetary rewards while poor performance is not

tolerated. Consistently underperforming employees are removed from the team, as they disrupt the

overall dynamic.

2) Scalable Startup Entrepreneurship

Scalable startup entrepreneurship encompasses a specific type of entrepreneurship venture that involves

seeking external capital and taking calculated risks. In this approach, an organization initiates its

business operations on a small scale, aiming to achieve rapid expansion and substantial profitability. To

accomplish this, entrepreneurs pursuing scalable startups must formulate a compelling and adaptable

business plan capable of attracting significant investments from venture capitalists. Entrepreneurs

embarking on the path of scalable startup entrepreneurship are driven by their aspiration to make a

transformative impact on the world through their innovative business ideas. Notable examples of

companies that began modestly but now dominate their respective industries include social media

platforms like Facebook, Twitter, and Instagram, Ecommerce giants Amazon and Flipkart and fast food

chain McDonald’s. Additionally, scalable startups can encompass various sectors, such as household

items and lawn businesses. A scalable startup is characterized by its ambition to become a highly

profitable company with substantial and rapid growth potential, despite being in its early stages. This

startup model necessitates external capital and entails a level of risk to stimulate demand and facilitate

company expansions. To attract the necessary investment, founder must present a compelling business

plan that demonstrates the potential for significant returns. Alternatively, depending on the nature of

startups, funding can be secured through customer development, whereby payments from clients fund
 the startup growth. Ultimately, the primary objectives of scalable startups is to compete with potentially

replace existing successful companies on a large scale. From my point of view scalable startup

entrepreneurship presents a dynamic and exciting approach to business. It allows ambitious

entrepreneurs to bring their innovative ideas to life and disrupt established industries. The emphasis on

rapid growth and profitability can create a sense of urgency and drive in the entrepreneurial journey.

However, it is crucial for entrepreneurs to balance their ambition with careful planning, as and scaling

too quickly without a solid foundation can lead to challenges in sustaining growth and profitability.

Additionally, while scalable startups offer immense potential for success, they also involve significant

risks and uncertainties, as securing external capital and competing with established players can be

challenging. Nonetheless, when executed effectively, scalable startup entrepreneurship has the power to

revolutionize industries and reshape the business landscape. You should be able to gain trust of

shareholders and founders or investing in business as without which they cannot be able to invest in

their business with funds. So you should keep in mind these things while opening a scalable startup

business.

Characteristics

1. Successful companies, including scalable startups possess a well-defined organizational vision that

extends beyond mere financial gains. Therefore it is essential to establish and communicate your vision
 to those who can contribute to your business’s success before launching your venture. Additionally, your

vision should serve as a motivating force for employees and create opportunities for scalable growth.

2. The adage “No man is an island” holds true when starting a company. Simply because building a

scalable startup single-handled is nearly impossible.

Instead, you require a diverse team that plays a vital role in realizing your vision and accelerating

business growth.

3. Obtaining new customers for your startup does not have to entail exorbitant expenditures on sales and

paid marketing efforts to persuade them to purchase your products or services. Instead, focus on

achieving a strong product-market fit that generates word-of-mouth referrals and leverages organic

marketing techniques to minimize customer acquisition costs.

4. Efficiently delivering your offerings to customers is a powerful way to establish trust and cultivate

positive relationships. Furthermore, employing a straightforward, prompt and hassle-free product

delivery process ensures customer satisfaction. Therefore it is crucial to thoroughly study

distribution management activities, including packaging, logistics, communication and inventory

management.

5. The ability to retain customers over time is a key factor in achieving scalability. Without a loyal

customer base, businesses struggle to thrive in the market. Hence, focus on providing services or

product offerings that encourage repeat business. Additionally it is important to closely monitor

potential churn rates and stay attentive to the competition, as some customer attrition is inevitable.
3) Large Company Entrepreneurship

When a company operates within a finite number of life cycles, it falls under the category of large

company entrepreneurship. This form of entrepreneurship is tailored for experienced professionals who

possess the ability to sustain innovation and often work as part of a team of high-level executives. Large

companies frequently develop new products and services based on consumer preferences to meet

market demands. Examples of such entrepreneurship can be found in companies like Google, Microsoft,

and Samsung. The concept of large company entrepreneurship revolves around the pursuit of new

opportunities and ideas within established and larger corporations. This type of development typically

occurs in the later stages of a company's life cycle. It involves creating innovative designs or products to

compete with emerging technologies and regulatory changes in the industry. Large company

entrepreneurship can be viewed as an adaptation to the expanding business environment. Large

company entrepreneurship refers to the entrepreneurial mindset and endeavors that occur within the

context of a large business organization. It encompasses fostering growth, embracing change, and

generating value within the framework of a large enterprise. It also involves applying entrepreneurial

concepts, encouraging innovation, and taking calculated risks. The concept of large company

entrepreneurship highlights that the entrepreneurial spirit and methods are not exclusive to startups or

small businesses. It emphasizes that established organizations can also benefit from entrepreneurial

thinking to drive innovation, explore new possibilities, and maintain a competitive edge in a dynamic

business landscape. From my perspective, large company entrepreneurship presents an interesting and

essential approach for established organizations. While startups and small businesses are often

associated with entrepreneurship, large companies can also harness the power of entrepreneurial

thinking to adapt, innovate, and remain competitive in a rapidly changing market. By embracing

entrepreneurial concepts, these organizations can foster a culture of innovation, explore untapped
 opportunities, and create value within their existing structures. Large company entrepreneurship allows

established firms to leverage their resources, expertise, and market presence to drive growth and

successfully navigate evolving industry landscapes. It highlights the importance of continuous

adaptation and entrepreneurial mindset even in well-established organizations, demonstrating that

entrepreneurship is a vital force for both small startups and large corporations alike.

Characteristics

1. Large corporations possess extensive operations and generate substantial revenue. The determination of

their size can be based on variables such as market capitalization, total assets, annual revenue, or the

number of employees. The criteria for considering a company as large may vary depending on the sector

and the country.

2. Large companies enjoy a strong market presence and are widely recognized in their respective fields.

Their brand is familiar to the public, and they often hold a considerable market share. Moreover, they

cater to a diverse consumer base with their wide range of products or services.

3. Large companies typically operate within complex organizational structures, comprising multiple

divisions, subsidiaries, and departments. This intricate framework enables them to effectively manage

various business operations and cater to different market segments.

4. Large companies have access to abundant resources, including finance, talent, infrastructure, and

technology. They strategically invest these resources in innovative projects, marketing initiatives, and

expansion efforts. These valuable assets contribute to their long-term growth potential and provide them

with a competitive edge.

5. Large companies often serve customers across different regions or nations, operating on a national or

global scale. They may maintain an extensive network of offices, factories, or distribution centers to

support their operations.

6. Large companies exert a significant influence on their industry. They have the ability to shape policies,

influence market trends, and establish industry standards. The position and competitiveness of large

companies can impact the behavior of other companies operating within the same industry.

4) Social Entrepreneurship

Individuals embarking on the journey of starting their own business are driven by various motivations.

Some seek the freedom of being their own boss or the opportunity to pursue their true passion. Others

aspire to amass wealth and build a thriving empire. However, in recent years, a distinct breed of

entrepreneur has emerged: the social entrepreneur. Social entrepreneurship entails the process of

individuals, startups, and entrepreneurs developing and funding solutions that directly tackle social

issues. A social entrepreneur, therefore, is someone who seeks out business opportunities with a positive

impact on their community, society, or the world at large. While social entrepreneurship is occasionally

mistaken for nonprofit organizations, it is, in fact, a for-profit endeavor with a heightened focus on

creating social or environmental change. In the following paragraphs, we will delve into five companies

that exemplify social entrepreneurship. Social entrepreneurship applies the principles and strategies

employed by startup founders and entrepreneurs to businesses that directly generate social change or

contribute to a social cause. Social entrepreneurs are primarily motivated by a desire to alleviate

systemic social or cultural problems. Broadly speaking, social entrepreneurship represents an innovative

and progressive business venture that drives transformation. Social entrepreneurs are driven by a

specific cause and develop a business model centered around making a positive impact. The ultimate
 aim is to create sustainable social change through business practices. Social entrepreneurship can take

the form of a nonprofit, for-profit, or hybrid business (known as a social enterprise), depending on the

preferred business model and the availability of funding. Social entrepreneurship operates within the

structures of the business world to influence and bring about social change. It is closely associated with

progress, development, and innovation. Just as startup entrepreneurs disrupt existing norms, social

entrepreneurs challenge the status quo of systemic inequality. As a concept, social entrepreneurship is

not new. For instance, Florence Nightingale, who established the first nursing school in 1860, thereby

revolutionizing the healthcare industry, could be regarded as a social entrepreneur by some experts.

However, the term "social entrepreneurship" has gained popularity more recently. As people and

scholars continue to explore the realm of social entrepreneurship, we will gain further insights into the

various approaches and their impact on society, leading to the development of best practices. In the

meantime, social entrepreneurs consistently refine their business models to fulfill their primary

objective of effecting social change.

Characteristics

1. Social entrepreneurs are driven by a deep passion for their ideas and projects, aiming to bring about

social change and improve the lives of disadvantaged individuals within communities.

2. They possess the ability to identify and effectively solve social, financial, and environmental problems

by employing innovative approaches that address public issues and foster positive change in society.
3. Unlike relying solely on government subsidies, they generate capital to sustain their endeavors while

keeping their primary focus on maximizing social impact and satisfaction.

4. They place a strong emphasis on expanding the reach and influence of their initiatives, actively seeking

support from societies, large corporations, and governments to rally behind their ideas of social

transformation.

5. Social entrepreneurs demonstrate a keen eye for identifying market opportunities, gathering necessary

resources, and developing creative solutions that leave a lasting impact on society.

They value feedback as a means to enhance their performance and exhibit persistence in their ongoing

efforts to meet their goals.

6. Social entrepreneurs are motivated by a clear sense of purpose and a desire to create positive change,

placing societal impact at the forefront of their endeavors.

7. They employ innovative thinking and creativity to develop novel solutions to social problems, often

challenging traditional approaches and norms.

8. Social entrepreneurs actively seek collaborations with various stakeholders, including NGO’s

government bodies, businesses and communities to leverage collective resources and expertise.

9. They exhibit resilience in the face of challenges and remain adaptable to evolving continuously learning

and iterating to improve strategies and outcome.

 Features Of Entrepreneurship

A. Risk Taking:-

You’ve probably came across the saying, “No risk, no reward”. This statement holds true when

embarking on any business endeavor. The main benefit of starting a prosperous business is the profit it

generates, while the inherent danger lies in the possibility of failure and the subsequent personal and

financial setbacks. Therefore successful entrepreneurs must possess a certain level of risk tolerance.

Nevertheless, many entrepreneurs take proactive measures to mitigate risks and safeguard their

businesses.

B. Vision:-

Vision is the starting point for every venture. It encompasses the desired direction of the business and its

overarching goals, even if they appear challenging to attain. Stakeholders, including employees and

investors, rely on your vision for guidance, motivation and strong leadership especially during difficult
 times. While a mission statement outlines the business objectives and the strategies employed to achieve

them, a vision statement can be created to articulate your aspirational aims.

C. Discipline:-

In the realm of managing a new venture, there are moments when fatigue sets in or self-motivation

wanes. It is during these times that entrepreneurs require discipline to push forward and diligently carry

out the necessary work, even when lacking the desire to do so. To cultivate discipline it is beneficial to

establish healthy routines such as setting goals in writing, creating a schedule or engaging in regular

exercise. When faced with challenges, it is important to persistently strive towards the desired objective.

D. Adaptability:-

While being fully prepared for every conceivable scenario is close to impossible, adaptable business

leaders approach change with a positive mindset. Adaptability stands as a crucial personal trait in a

world where business practices constantly evolve and demands continually shift. Versatile leaders

embrace both failure and success and possess the resilience to swiftly overcome challenges.

E. Leadership:-

Leadership involves the capacity to influence and guide others, whether leading a small team or a large

company. Skillful leaders communicate their vision, foster well-rounded teams that complement their

own abilities, and exhibit confidence in themselves and their products a skill set applicable to businesses

of all types.
F. Curiosity:-

The curiosity of an entrepreneur enables them to continuously learn and explore novel opportunities.

Instead of accepting the status quo, entrepreneurs pose challenging questions and seek out innovative

ways to provide new solutions to their customers. Curiosity is the key through which everyone wants to

earn more and more and to gain more knowledge because of it.

G. Creativity:-

Creativity encompasses more than just expertise in a particular art form. . Creative entrepreneurs

just expertise in a particular art form. Creative entrepreneurs draw inspiration or employ their

imagination to solve problems, often in the face of limited resources. Creatives utilize innovation to

enhance products, services and ideas thereby delivering value to their customers.

How Entrepreneurship Affect Economic Growth?

The role of entrepreneurship in economic development is substantial. After all, entrepreneurs don’t just

build businesses and grow their personal wealth; they also impact the economy by creating new jobs

and opportunities, driving innovation, and developing new markets, products, and services. This article

gives you a complete overview of the role of entrepreneurship in a country’s economic development.

Entrepreneurship plays a vital role in fostering economic development and promoting wealth creation.

Before delving into the specifics of how entrepreneurship contributes to economic growth, let’s briefly

summarize its significance. The importance of entrepreneurship can be encapsulated as follows:

a) Stimulates economic growth and generates employment opportunities.

b) Fosters innovation by introducing fresh concepts, products and services to the market.

c) Drives social change by developing solutions that reduce reliance on outdated technologies.

d) Addresses societal and economic challenges through the creation of products and services that cater to

the needs of the community.

e) Promotes healthy competition, enhancing business efficiency and resulting in lower prices for

consumers.

f) It gives employment which indirectly increase economic growth and reduces unemployment.

Role Of Entrepreneurship In Economic Development

1) Elevates Quality Of Life:-

One of the crucial contributions of entrepreneurship to economic development is its capacity to

significantly elevate the standard of living for individuals and communities. By establishing industries,

generating wealth and creating new job opportunities, entrepreneurship plays a pivotal role in

improving the overall well-being of society. Moreover, entrepreneurship not only possesses the potential

to enhance the quality of individual lives through the development of affordable, safe and value added

products and services. Additionally, entrepreneurship introduces innovative solutions that alleviate the

scarcity of essential commodities, further contributing to an improved quality of life.

2) Economic Autonomy:-

Engaging in entrepreneurship can pave the way for achieving economic autonomy for both the

individual entrepreneur and the nation. It diminishes the country’s reliance on imported goods and

services, fostering self-sufficiency. Moreover, the produced goods and services can be exported to

international markets, resulting in growth, selfsufficiency, currency inflow and economic autonomy.

Similarly, entrepreneurs attain full command over their financial destiny. By virtue of their diligence

and ingenuity, they generate income and amass wealth, enabling them to attain economic independence

and financial stability. By reducing dependence on imports, encouraging exports and empowering

entrepreneurs, countries can strengthen their economies and individuals can attain financial security,

ultimately leading to sustainable growth and prosperity.

3) Advantages Of Emerging Enterprises And Businesses:-

Entrepreneurs discern market demands and devise solutions through their products and services,

embarking on their entrepreneurial journey. By initiating fresh ventures and establishment,

entrepreneurs assume a crucial role in shaping the economy and fostering a more vibrant and diverse

business environment. Entrepreneurship further fosters ingenuity and rivalry, giving rise to novel and

enhanced products and services that contribute to economic expansion and progress.

4) Job Generation:-

Entrepreneurship stands as a pivotal catalyst for job creation. Overseeing the operations of new

businesses and meeting customer needs leads to the emergence of fresh employment opportunities.

Entrepreneurship also fuels innovation and competition, which in turn inspire other entrepreneurs and
attract investments, generating new jobs across a wide spectrum of industries, ranging from

manufacturing and construction to services and technology sectors.

5) Promotes Capital Accumulation:-

Capital accumulation involves the process of amassing resources, such as savings and investments, to

finance new business ventures and foster economic growth. Entrepreneurship plays a vital role in

encouraging capital accumulation by attracting investments. Moreover the establishment of new

enterprises and the expansion of existing businesses contribute to the cultivation of a more varied and

dynamic economy, which fosters capital accumulation and opens up diverse investment opportunities.

6) Alleviation Of Poverty:-

Entrepreneurship holds the potential to uplift individuals from poverty by generating employment

opportunities and stimulating economic activity. Additionally entrepreneurship contributes to the

advancement of local economies and aids in enhancing the overall standards of living.

7) Promotion of Community Advancement:-

Entrepreneurship stimulates economic growth, grants access to goods and services, and enhances the

overall quality of life. Many entrepreneurs also make a positive impact on their communities and

enhance well-being by catering to underserved areas and developing environmentally friendly

products. Their endeavors contribute to the construction of stronger, more dynamic communities and

foster social and economic development.

8) Optimal Resource Utilization:- Entrepreneurship aids in identifying market
opportunities and allocating resources in the most efficient manner. Entrepreneurs also play a pivotal

role in creating innovative products and services that meet customer needs while optimizing the

utilization of available resources.

9) Enhancement of Gross National Product and Per Capita Income:-

Entrepreneurship can significantly contribute to boosting economic growth and prosperity by elevating

the Gross National Product (GNP) and Per Capita Income (PCI). GNP measures a country's total

economic output, while PCI calculates the average income per individual. The increase in GNP can lead

to a rise in PCI. Entrepreneurship facilitates GNP growth by establishing new businesses and industries,

which, in turn, generate employment opportunities, stimulate consumer spending, and increase tax

revenue.

Scope Of Entrepreneurship

The definition of entrepreneurship lacks a clear consensus among scholars. While some define it as the

process of starting a business, others emphasize its recognition of entrepreneurial opportunities and

dimensions beyond just economic factors.

Entrepreneurship is often seen as a catalyst for change and encompasses values that extend beyond

monetary gains. A narrower definition describes it as the process of designing, launching, and operating

a new business.

Although entrepreneurship and management are closely related in the business world, they represent

distinct processes. This article delves into the disparities between these two terms.

The scope of entrepreneurship extends far beyond the confines of a single enterprise. It has the potential

to stimulate the economy, drive societal change, create job opportunities, and foster community

development.

Entrepreneurship encompasses more than mere business creation. It actively promotes new ventures and

opens doors for improvement in various sectors.

An example from the past illustrates the transformative power of entrepreneurship. In the days before

washing machines existed, women had to spend considerable time washing clothes manually, without

access to energy or water resources. This challenge inspired a company to develop and sell low-energy

washing machines, which not only saved time but also allowed women to invest their extra time in self-

education.

Passion is an intense and uncontrollable emotion driven by a higher purpose that surpasses personal

aspirations. Perseverance is a mature emotion that develops through accumulated experiences and
careful analysis. Meanwhile, persistence acts as the guiding force that propels an entrepreneur through

the most challenging circumstances.

Being visionary strengthens an entrepreneur by enabling them to dream and envision the bigger picture.

This initial step sets the stage for selfdiscovery and paves the way for future success.

Learning should never cease, regardless of age. Equipping oneself with knowledge plays a pivotal role

in developing leadership qualities that can be called upon when necessary.

The ability to contribute effectively arises from cultivating an abundance within oneself which can be

achieved by attentively absorbing the words of others. Truly listening to customers and employees is

what truly sets entrepreneurs apart and leads to successful ventures.

Selecting a financial partner who comprehends the specific needs of the business is crucial. This

decision is as vital as choosing the business itself. Additionally, obtaining a business loan from a

suitable lender plays a pivotal role in realizing the aspirations of becoming a successful entrepreneur.

Objectives Of Entrepreneurship

Business aims encompass the long-term strategic direction of a business. They represent a mission

statement that provides a clear vision of supporting objectives and strategic goals to be achieved. On the
other hand, business goals typically span a three to five-year timeframe and serve as specific targets and

measures of success.

When creating an aim for your business, it involves defining its purpose, what it aims to achieve, and

understanding its underlying reason for existence. For startups in the health and wellness industry, this

may entail delivering excellent customer service, offering round-the-clock accessibility, and selling

sustainable locally-sourced products. Collaborating with quality suppliers in the community, such as a

local gummy manufacturer, can further enhance the venture.

Business goals, on the other hand, establish a longterm framework that defines the essence of your

business. They may include objectives such as increasing brand awareness, expanding the size of the

business, capturing a larger market share, and improving customer service.

For startups, it is crucial to set short-term business objectives that serve as milestones to be achieved by

the end of the financial year. By focusing on these short-term objectives, entrepreneurs can effectively

work towards their long-term strategic goals. It is important to assign individuals and teams with

specific responsibilities to carry out functions and achieve these targets and milestones. It’s main aim or

objectives are:-

1) Being Self-Driven:-

Individuals have diverse entrepreneurial objectives, and entrepreneurship itself entails the act of starting

a business. It involves creating job opportunities not only for oneself but also for others. Being an

entrepreneur requires a high level of self-motivation and drive.

2) Choosing To Become An Entrepreneur:-

Opting to become an entrepreneur means becoming your own boss. Many people venture into

entrepreneurship because they dislike working under the authority of others. This may stem from past

negative experiences with bosses or a desire to avoid spending the next several years confined to a

cubicle. Some bosses may exhibit dictatorial, domineering or controlling behaviors which can result in

diminished morale and hindered performance.

3) Pursuing Your Ideas:-

One of the objectives of entrepreneurship is to pursue your own ideas. This differs from traditional

employment, where individuals are assigned specific duties and responsibilities. Often these

responsibilities may not align with one’s true passion. Entrepreneurs, however have a unique calling

that motivates them to start a business. They have the freedom to make decisions and actively pursue

their own ideas.

4) Earning More Money:-

Entrepreneurs aim to increase their earnings and have the potential to do so. As a proprietor, one can

enjoy 100% of the profits. However, it is important to note that entrepreneurs are also responsible for

the financial obligations associated with their business. Therefore, it is advisable to enter a business

field in which one is familiar and start a venture in that area.

5) Own Your Time:-

As an entrepreneur, the aims and objectives of entrepreneurship are many that you may have to dedicate

extra hours at work. It is essential at the inception, though you can choose to work extra hours as you

wish. You can work from home and possibly if your family requires attention. People choose

entrepreneurship to have control of their time and to own their time. As an entrepreneur, you need not

request a holiday to go on vacation. Moreover, you have the liberty of eliminating the community as

you can always work from home.

METHODOLOGY

Incubators or policymakers need to decide which applicants to invest their budget and resources in. In

the interest of avoiding misdirected budgets, they will naturally seek to invest in those applicants with

the greatest potential for succeeding. This article describes a method designed to help in making sound

investment decisions by selecting those entrepreneurs most likely to succeed. The methodology

involves two steps: the first focuses on the assessment of individual characteristics, and the second

focuses on the evaluation of the business opportunity. We applied this methodology on an

entrepreneurship promotion programme following a longitudinal design. By the end of the programme,

the 15 selected participants were successful in the implementation of their startups. This would indicate,

therefore, that using this entrepreneur selection method can help in the investment decision making

process because it enables entrepreneurship agents to more effectively evaluate individuals and their

opportunities.
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Innovation and Business
CHAPTER-2

CONCEPTUAL REVIEW

2.1 FLIPKART

Flipkart has launched its own product range under the name “digiflip”, Flipkart also recently
launched its own range of personal healthcare and home appliances under the brand “citron”.
During its initial years, Flipkart focused only on books, and soon as it expanded, it started offer-
ing other products like electronic goods, air conditioners, air coolers, stationery supplies and life
style products and e-books. Legally, Flipkart is not an Indian company since it is registered in
Singapore and majority of its shareholders are foreigners. Because foreign companies are not al-
lowed to do multi-brand e-retailing in India, Flipkart sells goods in India through a company
 called ws retail. Other third-party sellers or companies can also sell goods through the Flipkart
platform. Flipkart now employs more than 15000 people. Flipkart allows payment methods such
as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe
on delivery. Flipkart is presently one of the largest online retailers in India, present across more
than 14 product categories & with a reach in around 150 cities and delivering 5 million ship-
ments per month.

EXCLUSIVE PRODUCTS

Motorola mobility, previously owned by google but then sold to lenovo, in an exclusive tie up
with Flipkart launched its budget smartphone moto g in India on 5 february 2014 more than
20,000 units were sold within hours of launch on Flipkart after this Flipkart was looking for a
long term tie up with motorola mobility. They also launched their android smartphone, the moto
x, on 19 march 2014. Flipkart later sold the moto e, cheaper than moto g, from 13 may 2014. The
sale of high-end smartphone xiaomi mi3 produced by xiaomi tech was launched in India on an
exclusive tie-up with Flipkart. The first batch was sold out within 39 minutes on 22 july 2014,
the second in 5 seconds on 29 july 2014. The sale was proceeded on pre-registration mode where
more than 150,000 buyers booked for the 5 august 2014 sale. This got sold off in less than 2 sec-
onds. Following this xiaomi tech sold 20,000 units in the next sale on 12 august 2014.

On 2 september 2014 Flipkart held a flash sale of the xiaomi redmi 1s budget android smartphone
which was launched in India in july 2014. 40, 000 units priced at rs 5999 each were sold within
seconds. A further 40,000 units were sold within 4.5 seconds on sept 9, 2014. The third redmi 1s
sale on sept 16, 2014 sold 40,000 units in 3.4 seconds; in the 4th round of sale of redmi 1s, 60,000
units sold in 5.2 seconds on sept 23, 2014. On 30 september 2014 60,000 units sold in 13.9 sec-
onds. Redmi note in India exclusively through Flipkart; 50,000 units sold in 6 seconds on 2 decem-
ber 2014. In july 2014 Flipkart launched its own set of tablet, mobile phones & phablet. The first
among these series of tablet phones was digiflip pro xt 712 tablet. In july 2014 Flipkart launched its
first networking router, under its own brand name named digiflip wr001 300 mbit/s wireless n
router. In september 2014 Flipkart launched its in-house home appliances and personal healthcare
brand citron. The label includes a wide range of cooking utilities and grooming products.

ACHIEVEMENTS IN E- COMMERCE

In september 2015, sachin bansal and binny bansal entered forbes India rich list debuting at the
86th position with a net worth of $1.3 billion each. Co-founder of Flipkart, sachin bansal, got en-
trepreneur of the year award 2012-2013 from economic times, leading Indian economic daily.
Flipkart.com was awarded young turk of the year at cnbc tv 18's 'India business leader awards
2012' (ibla). Flipkart.com- got nominated for Indiamart leaders of tomorrow awards 2011.

FAILURE IN MUSIC INDUSTRY

In october and november 2011, Flipkart acquired the websites mime360.com and chakpak.com.
Later, in february 2012, the company revealed its new flyte digital music store. Flyte, a legal
music download service in the vein of itunes and Amazon.com, offered drm-free mp3 down-
loads. But it was shut down on 17 june 2013 as paid song downloads did not get popular in India
due to the advent of free music streaming sites.
 ACQUISITIONS

1. 2010: weread, a social book discovery tool.

2. 2011: mime360, a digital content platform company.
3. 2011: chakpak.com, a bollywood news site that offers updates, news, photos and videos.
Flipkart acquired the rights to chakpak's digital catalogue which includes 40,000 filmographies,
10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it will not be in-
volved with the original site and will not use the brand name.
4. 2012: letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an
estimated us$25 million. Letsbuy.com was closed down and all traffic to letsbuy has been diverted
to Flipkart.
5. 2014: acquired myntra.com in an estimated ₹ 20 billion (2,000 crore, about us$319 million)
deal.
6. 2015: Flipkart acquired a mobile marketing start-up appiterate as to strengthen its mobile
platform.
AMAZON

Amazon is the largest internet based company in the united states. Amazon.com started as an on-
line bookstore, but soon diversified, selling dvds, vhss, cds, video and mp3downloads/streaming,
software, video games, electronics, apparel, furniture, food, toys, and jewellery. The company also
produces consumer electronics notably, kindle, fire tablets, fire tv and phone and is a major
provider of cloud computing services.

Amazon has separate retail websites for united states, united kingdom & ireland, france, canada,
germany, the netherlands, italy, spain, australia, brazil, japan, china, India and mexico, with sites
for sri lanka and south east asian countries coming soon. Amazon also offers international shipping
to certain other countries for some of its products. In the year 2011, it had professed an intention to
launch its websites in poland, and sweden. In early june 2013, Amazon.com had launched their
Amazon India marketplace without any marketing campaigns. In july, 2013, Amazon had an-
nounced to invest $2 billion (rs 12,000 crores) in India to expand business, after its largest Indian
rival Flipkart too had announced to invest$1 billion.

EXCLUSIVE PRODUCTS

The Amazon kindle is a series of e-readers designed and marketed by Amazon.com. Amazon
kindle devices enable users to browse, buy, download and read e-books, newspapers, magazines
and other digital media via wireless networking to the kindle store. The hardware platform, de-
veloped by Amazon subsidiary lab126, began as a single device and now comprises a range of
devices, including e-readers with e ink electronic paper displays, and android-based tablets with
color lcd screens. All kindle devices integrate with the kindle store to acquire content and as of
february 2016, the store has over 4.3 million e-books available in the us. The oneplus one
launched as an Amazon exclusive in India last year, but now the device is available for purchase
 on rival e-commerce store Flipkart. Moto g (gen 4) and moto g plus (gen 4) will be available ex-
clusively on Amazon.

ACHIEVEMENTS IN E- COMMERCE

On the mobile app side, Amazon had the fastest growing app download rate in 2015. In october
alone, downloads increased 200 per cent. Amazon web traffic was the highest in october as per
comscore data, at 30 million visitors. Amazon active customers have gone up 230 per cent year
on year. The awards were conferred at etailing India's flagship conference and exhibition 2014,
an event that brought together major stakeholders in the retail and e-commerce business in the
country. The "path-breaking debut of the year" award went to Amazon.in.

FAILURE

Amazon starts using India post and screws up its delivery system in India. At the time when the
competition among online shopping portals in India is at its highest level possible and each
player is pooling in millions from funding’s and trying to beat each other with never-before dis-
counts and amazing services, Amazon has taken the worst step ever possible. Amazon India has
chosen India post as its primary delivery partner and all “Amazon fulfilled” orders are now being
shipped through India post. Anyone who lives in India or has some experience with the postal
system in India needs no introduction about India post.
 ACQUISITIONS

It’s no secret that e-commerce giant Amazon has been betting on India as one of its next big mar-
kets outside the u.s. The company is not only investing capital in the region, but also acquiring
startups to help expand its presence in the country. On tuesday, Amazon announced it had ac-
quired Indian payments company emvantage payments pvt. Ltd. Amazon did not disclose the ac-
quisition amount. Similar to stripe or paypal, emvantage allows online merchants to accept credit
and debit cards. The company also allowed merchants to set up their own branded pre-paid debit
cards and mobile payments. In order to differentiate itself, company acquired many it & e- com-
merce start-ups like pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot etc.

MARKETING STRATERGIES

FLIPKART

Flipkart's business model is much deeper and much expansive that could possibly elaborate here.
However, a few key points -

 Rationalized supply chain - inbound logistics

 Strategic warehousing and distribution capability - operations
 Well aligned fulfillment process - outbound logistics

All the three processes are extremely well integrated - first by a sound strategy, around which the
organizational structure is built. So they have a strategy, and a complementing structure to sup-
port their strategy. The third critical success factor for Flipkart is the technology as an enabler. A
strong information systems is at the core of the organization, which drives visibility and end-to-
end integration across their supply chain processes (inbound - operations - outbound) resulting in
a well lubricated efficient machine.

Flipkart, must be seen as a logistics company rather than a retail business. Although it sells prod-
ucts to consumers, and hence is academically classified as a b2c business, the core of the busi-
ness lies in its efficient logistics, which allows it to sell products at attractive prices.

However, its competitive advantage is not in its retailing capabilities. Infact that aspect of the e-
commerce business is easily imitable and hence not sustainable. The sustainable competitive ad-
vantage of Flipkart, lies in its logistics and operations infrastructure - which has a very high bar-
rier to entry: owing to its extensive capital investment and difficult to replicate strategy- struc-
ture-culture mix.

Cons: potential threat of the original replacing the imitated.

It is important to reflect upon the fact that its founder members (the bansal's) have had an early
stint with Amazon and have successfully modeled Flipkart's business on Amazon strategy. So, it
would be fair to say that Flipkart imitated Amazon's model to an extent. However, owing to gov-
ernmental regulation and international trade barriers (read retail fdi restrictions), Amazon has
not yet been able to compete with Flipkart on an even keel. (Amazon operates as a marketplace
rather than a retailer). Amazon has all the infrastructure, culture, and technology enablers in
place that Flipkart has - and on a much larger scale. One other thing that they have is huge finan-
cial muscle power - much larger than what Flipkart has. And the moment when these restriction
on fdi in retail are lifted, Amazon will be a major threat to Flipkart. And all these acquisitions
that Flipkart has been making, is to bulk up and brace up for the competition it faces.

MARKETING MIX OF FLIPKART

Product in the marketing mix of Flipkart - Flipkart is an online retailing industry and started its
operations with the sale of books. For two years, it sold only books through its website as the
management and shipment of books was much easier. After its expansion, it started dealing with
products like air coolers, washing machines, air conditioner, life style products, stationary sup-
plies, cell phones, computers, calculators, microwave ovens, water purifiers, laptops, cameras,
audio players, products relating to health care, dishwashers and e-books. Products sold on Flip-
kart have the same warranties of the brand if sold outside in a showroom. It has recently
launched its personal product range called “digiflip”. Under this brand, it offers products like
computer accessories, camera bags, headphones and pen drives. In july, Flipkart introduced its
own tablet phones and networking router under its personal range “digiflip”. On february 5, 2014
in a special tie up with motorola mobility, Flipkart has provided a platform for the launch of
‘moto g’. Online shoppers went crazy with the unveiling of this smart phone. This awe-inspiring
response resulted in the sales of nearly 20,000 mobiles in a few hours. Continuing their associa-
tion,‘moto x’, an android smartphone, was introduced on march 19. On may 13,‘moto e’was
launched at the same site triggering the same response. Continuing this success story Flipkart in
a tie up with xiaomi techintroduced ‘xiaomi mi3’ on its platform. In the first phase on22nd july
all the phones were sold in just 39 minutes and in the 2nd phase on 29th july the sold out was
complete in only 5 seconds. On 5th august the sale was completed in just 2 seconds. This amaz-
ing response and hyper mania has helped in giving Flipkart an immense lift up.
Place in the marketing mix of Flipkart - Flipkart functions entirely in India and it has its head-
quarters in the garden city of bangalore in karnataka. It is owned by a singapore based company
and is registered over there. According to India’s foreign policy, a foreign company is not al-
lowed e- retailing over here. Therefore, in India, Flipkart sells the merchandises through an In-
dian company ws retail. Flipkart also provides its own platform to other companies who are in-
terested in selling their goods. The website is very easy and hassle free. Browsing, keeping track
of products, getting reviews, ordering goods and payment methods are very convenient for the
individuals. At first Flipkart started its operations on the consignment model in which they per-
sonally bought the book and couriered it. Later they opened many warehouses where the goods
were stored safely. The first warehouse was opened in bangalore and later in delhi, mumbai,
chennai, hyderabad, pune, noida and kolkata. As of today, more than five hundred suppliers are
working for Flipkart. At least 80% of the orders placed are handled and controlled via ware-
houses. Shipping companies and courier companies are the real mediators in this setup. The
quick and well-organized service is the reason why the company has been able to put its mark on
the Indian market. Their delivery network is spread over thirty-seven cities with delivery being
possible in any nook and corner. Price in the marketing mix of Flipkart - though Flipkart started
its venture with an investment of just inr 400,000, today its net worth is nearly 1billion dollars as
its sales are increasing day by day. It still earns revenue of 50% from selling books online. Elec-
tronic commerce has become a huge hit because of Flipkart. Its price policy is very flexible be-
cause of online transactions. Amount to be charged is determined after looking at the innumer-
able expenses like transport expenses, supplier expenses, packaging costs, courier charges, ship-
ping cost, office expenses, maintenance expenses, discount allowances, depreciation, taxes, ad-
vertisement expenses and many other expenses. Discounts up to 35% are allowed periodically to
boost up the sales and maintain competitive prices. For payments, Flipkart allows credit card
transactions, cash payment after delivery, transaction through debit card, by swiping card on de-
livery, vouchers available as e-gift and net banking. Promotions in the marketing mix of Flipkart
- Flipkart has changed the concept of multi brand retailing of products through internet in India.
Its huge success has proved to be an inspiration for other companies. It operates mostly through
mouth advertising. The satisfied customers have been their best promoters. To have a firm grip
on the online world Flipkart has used the services of
 google ad-words and seo. These marketing tools have made them household names. Download-
ing the exclusive app of Flipkart helps in getting alerts about the current offers, order status,
price drops, recent launches and various gift coupons. Flipkart has also taken the help of creative
and interesting advertisements so that an awareness and trust is generated for their website
amongst the people. Their first campaign was shown on tvc with the concept that books can be
delivered with just a single click. Recently an ad has been launched to increase the social visibil -
ity where the tag line is “no kidding no worries”. Trained individuals are hired to fulfill their re-
sponsibilities adequately. The systematic planning and level of effort undertaken to reach such
heights is commendable.

AMAZON

SEGMENTATION

E-commerce giants like Amazon uses demographic & psychographics segmentation to segment
the markets. Amazon’s segmentation is based on actual purchase behavior: not what people
might have expressed interest in, but what they actually did. Amazon’s micro-level segmentation
targets each customer individually, allowing the company to convert visitors into long-term,
high-value customers. Customer segmentation often involves creating personas who will buy in a
certain way & certain products. Similarly Amazon targets the middle class & upper class people
who have got hands on experience in the basic technology but don’t have time or prefer conve-
nience over shopping from the physical outlets. Amazon has successfully positioned itself as a
glocal (go global act local) e-commerce giant where one can buy anything & get it delivered at
any remote locations. Using the catchphrase #aurdikhao in its most recent campaign in India, it
has further helped them carve a distinct space in the consumer’s mind.
 MARKETING STRATEGY

These offerings help Amazon to keep its prices low thereon passing on the benefits to the con-
sumers. Amazon’s robust customer centric approach to analyse the customer buying behavior
based upon preferences has helped them to have competitive edge over their competitors. More
than 50% of the consumers are the repeat buyers at Amazon.com. Furthermore, Amazon is one of
the longest players to be present in the online sector and has a solid hold in European countries and
us. This bottom line is helping the company to expand in new markets.

Brand equity in the marketing strategy of Amazon – from being merely an e-book provider to
emerging as the 2ndlargest e-commerce company in the world, Amazon.com has steadily in-
creased its spending on advertising and promotion to make its brand stronger and have a higher
brand equity. By april 2015, the brand of Amazon.com was worth us$ 176 billion. “a brand for a
company is like a reputation for a person. You earn reputation by trying to do hard things. With
more than 55% repeat buyers, the numbers tells everything about the brand. It is among 13
world’s most valuable brand” (forbes list).

Competitive analysis in the marketing strategy of Amazon –short listing the competitors of
Amazon depends on what business sector of Amazon is being considered. Apple would be the
largest competitor when considering book or content related delivery such as books, movies,
magazines, and audiobooks. The itunes store will always be a threat to the Amazon store because
of apples devices like the ipad, iphone, and macbook. When considering web services google
would emerge as the largest competitor.

Walmart is the biggest threat to Amazon in us as reports roll in of various attempts to compete
with the large online retailer. Reports of walmart testing a locker system for consumers where
shoppers can order and pay online and pickup at their convenience are surfacing. Walmart is
also still testing same-day delivery in four cities and remains the fourth largest online re-
tailer. Walmart rakes in about $9 billion in internet sales, which Amazon more than doubles in a
quarter. However, Amazon does not have the physical structure base that walmart has to start
with.
 In developing countries as well as in developed, there are many local portals which give tough
competition to Amazon. For example – snapdeal, Flipkart are some of the competitors of Ama-
zon. Similarly, groupon, first cry are specialized e-commerce portals which take away traffic
from Amazon. Thus, these local competitors of each country also react strongly to Amazon’s
presence. Market analysis in the marketing strategy of Amazon- the global e- commerce market
is still in the evolving phase. With the adaptation of technology in the developing economies cus-
tomers are now becoming more comfortable with online shopping. Fierce competition from big-
gies like alibaba, ebay, start-ups & local ecommerce players like Flipkart, snapdeal is more of re-
sulting into overall growth of the industry which is good for the industry.

Customer analysis in the marketing strategy of Amazon- Amazon customers consist of upper
& middle class social groups who have inclination towards using e-commerce portals and are
comfortable with online shopping. Majority of the customers are professionalsor businessmen
who are busy with their business/job & find it convenient to purchase anything online rather than
visiting the physical outlet in order to save time & money. Furthermore, the customers might
also be the ones who are searching for deals. Due to this, the portal is known to have specific
days where they give massive discounts to their buyers.

MARKETING MIX

Product in the marketing mix of Amazon

Amazon is an international ecommerce company, using connections to the internet from various
gadgets such as phones and tablets, to allow its customers to browse and purchase products im-
mediately. These products are then delivered to the customer, using delivery service companies.
Amazon has built up a huge product base, and sells almost everything, including: kindle, books,
dvds, mobile phones/tablets, gaming consoles and games, clothes for men/women and children,
jewellery, gardening equipment. Amazon initially started only with books and it is till date
known as the highest book seller in the world. This is why, Amazon also introduced kindle.
Kindly is an ebook reader from Amazon and it is the reason that the publishing market is
 having such a big revolution of converting hard paper to digital ebooks because ease of reading
by kindle. Due to success of kindle, Amazon also introduced kindly fire – its own tablet pc. Type
in a search entry into a search engine for a specific product, and the chances are that Amazon
will stock what you need, and will be on the search list. As they continue to grow, more and
more products are added to their inventory. Once established into books, Amazon quickly ex-
panded to other products to maintain its presence in the market. Where ebay is know for techie
products, Amazon is known for knowledgeable products. Amazon continues to expand its prod-
uct base, and in july 2014 it entered the smart phone market, releasing its very own fire phone.
The phone followed the release a month earlier of Amazon’s very own set top box system

– Amazon fire tv- which allows streaming from various channels, as well as supporting speech
commands when searching.

Place in the marketing mix of Amazon

In the recent past, sites such as Indiaplaza and allshcoolstuff were forced to close due to the lack
of trust when buying goods online. However, the brand image of Amazon enables it to have a far
and wide presence and the bottom line of the company is enough to enable massive r&d efforts
to secure the website. Amazon has customer service bases in many of the countries where it has
an online presence, with most bases being located in the different states of the usa. Amazon em-
ployees are friendly and relaxed.

Promotion in the marketing mix of Amazon

While Amazon has broadcast television commercials, these are mostly in the american market.
Amazon uses mainly web based advertising, and they make some use of billboard and smaller
methods of advertising. Amazon also uses advertising networks online so that whenever you
check something on Amazon, you will see an ad for the same thing somewhere else on some
other website. Search engine marketing and getting the company’s name high up the search en-
gine’s results is also a smart promotional strategy by Amazon. The founder of Amazon had this
in mind when creating the company, deciding that it should start with an ‘a’.
 In India, Amazon can be seen to rely on the best source of promotion there is – word of mouth. Peo-
ple telling others about the site, or mentioning it in a positive way is a sure way to have a new future
customer. However, there are several print media ads to make their presence felt to the people. How-
ever, much more is needed in the promotions department from Amazon in India because the traffic of
Amazon is being taken over fast by Flipkart.

Price in the marketing mix of Amazon

Amazon is competitive with its prices, and has little ways of staying ahead of its market contempo-
raries. For example, if you are looking to buy a book, Amazon offers you a new copy, or a used copy
as well, complete with pricing and condition. Another initiative is to pay to have a premium account,
ensuring faster deliveries. Amazon can also keep their prices competitive due to their use of staff.
Minimum numbers – but well trained – ensure that consumers benefit from the lack of overheads, and
the result is shown in the prices online.

As more and more people can access broadband connections in India and get online, the competition
for the likes of Amazon.com will toughen. Amazon’s quiet entry into India has seen some growth so
far due to its brand image, and it will be looking to keep its prices as low as possible to capture a slice
of the growing market place. It faces tough competition from the likes of ebay, Flipkart and snapdeal.

52
CHAPTER-3

DATA PRESENTATION & ANALYSIS

53
CHAPTER-4

FINDINGS & CONCLUSIONS

Entrepreneurship, or the activity of starting and running a business, is a vital ingredient of economic growth

and development. Entrepreneurs contribute to innovation, and they are central to dynamic Schumpeterian

competition and broader economic dynamism. In this paper, we contribute to the entrepreneurship literature

by performing cross-section empirical analysis to examine the link between entrepreneurship and economic

growth. We divide total earlystage entrepreneurship into opportunity-driven early-stage entrepreneurship

versus necessity-driven early-stage entrepreneurship to capture the heterogeneity of entrepreneurship. In

addition, we divide our sample

economies into advanced economies versus developing

economies.

We do not find evidence of a positive link between aggregate entrepreneurship and economic growth. This is

consistent with the hugely heterogenous nature of entrepreneurial activity. At a broader level, our empirical

evidence points to the importance of distinguishing between different types of entrepreneurship and different

groups of economies. In particular, for developing economies where manufacturing is relatively important,

we find that opportunity-driven entrepreneurship is positively linked with growth. Intuitively, big

technological advances in the manufacturing sector 17 create a lot of opportunities for innovative

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entrepreneurs whereas other entrepreneurs gradually adapt to the slower pace of technological progress in

the services sector.

To sum up, we do not find a statistically significant link between total entrepreneurship and economic

growth, but we do find significant links between growth and the interaction of sectoral shares and different

types of entrepreneurship. Our results imply that such effects can also be of sufficient magnitude to be

economically significant. For instance, an increase in opportunity-driven entrepreneurship activity rate from

the mean level of the developing economies to the mean level of advanced economies, together with a

standard deviation increase in the share of manufacturing’s valueadded in GDP, is associated with 0.41%

increase in annual GDP per capita or 4.1% increase in a decade.

Nevertheless, these results are important for policy makers because they indicate that a country should

devote at least some of its resources towards promoting entrepreneurship directly instead of focusing solely

on the more traditional factors of economic growth. For this to happen, causal factors for the significant

amount of the variation in entrepreneurship left unexplained in regression equation [2] must be discovered.

This is an important question to be answered by future research. However, any researchers attempting to

answer this question may be confronted by a serious problem. This is that some of the factors which

encourage entrepreneurship might be unquantifiable. For instance, in his article “The Alert and Creative

Entrepreneur: A Clarification,” Israel Kirzner distinguishes his theory of entrepreneurship from Joseph

Schumpeter’s by saying that in his theory entrepreneurship is determined by how alert people are to

opportunities for making a profit by taking advantage of price differentials, while in Schumpeter’s theory

entrepreneurship is determined by how innovative people are in creating new technology (147-148). Thus, if

55
either Schumpeter’s or Kirzner’s theory is correct, then entrepreneurship would be determined by a factor

which is extremely difficult to quantify.

In this case, the best course for future research into this problem might be attempting to verify which

quantifiable variables (if any) affect entrepreneurship. While clearly not an ideal solution, this approach

would at least shed some light on the causes of entrepreneurship. Barring the discovery of ways to reliably

quantify and aggregate variables such as an individual’s creativity or alertness, this may be the best

alternative. Since some of the possible causes of entrepreneurship revolve around psychological or cultural

qualities such as creativity or alertness to opportunities for profit, it might be necessary to engage in cross-

disciplinary research between economics and psychology or sociology.

For instance, psychological and sociological theories could be examined for quantifiable indicators of the

level of creativity present in a given society, which could then be used to help predict entrepreneurship.

Another possible topic for future research might be a more indepth analysis of the interaction effect this

paper uncovered between entrepreneurship and research and development spending. Specifically, a good

question is whether research and development spending by government agencies has a different interaction

effect with entrepreneurship than research and development spending by private entities. This question might

have important implications for policy makers in countries which already have a relatively high level of

entrepreneurship.

The idea that entrepreneurship and economic growth are positively related has a broad base of support, both

in terms of theory and empirical evidence. The exact causes of entrepreneurship, however, are more difficult

56
to definitively identify. This paper has demonstrated the impact these unknown causes have on the economic

growth of nations. Until these causes are discovered, it will be necessary to use entrepreneurship as a gauge

for measuring their impact on economic growth.

The lessons gained from the experiences and the latest empirical evidence seem to validate this aspect.

Based on this resolution, in this study, the impact of entrepreneurship on economic growth is empirically

investigated. So it can be concluded that as the effect of entrepreneurial activities on economic growth came

out in the long run.

BIBLIOGRAPHY

Audretsch, David and Keilbach, Max. “Entrepreneurship and

Regional Growth: An Evolutionary Interpretation.” Journal of Evolutionary Economics, Vol. 14, No.5, 2004,

605–616.

Audretsch, David and Lehmann, Erik. “Does the Knowledge

Spillover Theory of Entrepreneurship Hold for Regions?”

Research Policy, Vol. 34, No.8, 2005, 1191-1202.

Bednarzick, Robert W. “The Role of Entrepreneurship in U.S. and European Job Growth.” Monthly Labor

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No.7, 2000, 3-16. Chemin, Matthieu. “The Impact of the

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Judiciary on Entrepreneurship: Evaluation of Pakistan’s

‘Access to Justice Programme.’” Journal of Public

Economics, Vol. 93, No.1, 2008, 114-125. Hubbard, R.

Glenn. “Nondestructive Creation: Entrepreneurship and

Management Research in the Study of Growth.” Journal of

Policy Modeling, Vol.30, No.4, 2008, 595-602. Kirzner,

Israel. “The Alert and Creative Entrepreneur: A Clarification.” Small Business Economics, Vol. 32, No. 2,

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Otani, Kiyoshi. “A Human Capital Approach to

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APPENDIX

List of countries represented in data set:-

Albania

Algeria

Argentina

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Armenia

Austria

Bangladesh

Belgium

Bolivia

Bosnia and Herzegovina

Botswana

Canada

Chile

Colombia

Congo, Rep

Costa rica

Croatia

Cyprus

Czech Republic

Denmark

60
Egypt, Arab Rep

Estonia Finland

France

Georgia

Greece

Guatemala

Haiti

Honr Kong, China

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Japan

61
Jordan

Kazakhstan

Kenya

Latvia

62