Entrepreneurial Management

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Edited by: Shivganesh Bhargava

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    Dedication

    In loving memory of my late mother Sreemati Dhurpati Devi Bhargava and my late father Shri Raghav Ram Bhargava

    List of Tables

    • 1.1 Ranking of Fortune Top 10 Companies of the World 31
    • 4.1 Contribution of SMEs Worldwide 90
    • 4.2 Year-wise Growth of SSI Units in India 91
    • 4.3 Sickness in the SSI Sector in India 93
    • 4.4 Students' Entrepreneurial Characteristics and Capability Data 97
    • 4.5 Institute-wise Faculty's Response Analysis 98
    • 4.6 Steps and Processes in the Entrepreneurship Development Programme 100
    • 4.7 Entrepreneurship Development Programme in Engineering Institutions 102
    • 5.1 Sample Size Estimation in the Foundry and Textile Clusters 111
    • 5.2 Variable Grouping for Obtaining Factor Scores in the Iron Foundry Cluster 117
    • 5.3 Variable Grouping for Obtaining Factor Scores in the Textile-dyeing Cluster 119
    • 5.4 Multiple Regression Results in the Iron Foundry Cluster [Dependent Variable: Energy Efficiency (SEC)] 121
    • 5.5 Multiple Regression Results in the Textile-dyeing Cluster [Dependent Variable: Energy Efficiency (SEC)] 123
    • 5.6 Variables for ANOVA in the Iron Foundry Cluster 127
    • 5.7 Univariate ANOVA Results in the Iron Foundry Cluster [Dependent Variable: Energy Efficiency (SEC)] 127
    • 5.8 Variables for ANOVA in the Textile-dyeing Cluster 128
    • 5.9 Univariate ANOVA Results in the Textile-dyeing Cluster [Dependent Variable: Energy Efficiency (SEC)] 129
    • 6.1 Model Fit Indices 150
    • 6.2 Inter-factor Correlation Coefficients for Base Model (Model 1) 150
    • 6.3 Path Coefficients for Hypotheses Testing 152
    • 7.1 Personal Qualities Expected from Entrepreneurs and Self-rating 163
    • 7.2 Demographic Profiling Variables Used in Study 168
    • 7.3 Mean Values of Personal Qualities of Entrepreneurs and Self 170
    • 7.4 Personal Qualities to be Possessed by Entrepreneurs 171
    • 7.5 Respondents' Rating on Personal Qualities 174
    • 8.1 Factor Analysis Results of Entrepreneurial Propensity Scale 191
    • 8.2 Correlation Matrix among the Variables 192
    • 8.3 T-Tests Showing the Differences between Students on Dimensions of Entrepreneurial Propensity 193
    • 8.4a Religiosity Level 194
    • 8.4b Caste Distribution 195
    • 8.5 Perceived Family Support 196
    • 8.6 Multiple Regression Analysis Results Showing Sociocultural Factors as Criterion and EP as Predictors 197
    • 9.1 Summary of Research Studies on the Reasons for Starting a Business 207
    • 9.2 Categories of Entrepreneurship Reasons 208
    • 9.3 Details of Questionnaire Despatch 211
    • 9.4 Reasons for Starting a Business 214
    • 9.5 Reasons for Starting a Business—Specific Factors 215
    • 10.1 Sample Distribution across Different Socio-background Variables 231
    • 10.2 Sample Distribution across Different Psychosocial and Psycho-entrepreneurial Variables 233
    • 10.3 The ‘T’ Test on Perceived Ladder of Success at Present (LASP) 235
    • 10.4 The ‘T’ Test on Perceived Entrepreneurial Expectations about the Future 236
    • 10.5 The ‘T’ Test on Perception of Self-achievements 238
    • 10.6 The ‘T’ Test on Perception of Success 239
    • 10.7 Hypotheses Distribution on Psychosocial Variables with Socio-background Variables 240
    • 11.1 Results of the Chi-square Test Showing the Significance of the Contribution of Variables in Logistic Regression 257
    • 11.2 Classification and Prediction of Group Membership of the Women Entrepreneur and Non-entrepreneur Groups Based on Logistic Regression 258
    • 11.3 Classification and Prediction of Group Membership Results for Validation of Results Based on Logistic Regression Variables 259
    • 11.4 Results of the Logistic Regression Analysis Showing the Significant Multivariate Contribution to Women Entrepreneurship through Discrimination of Women Entrepreneurs and Women Non-entrepreneurs 260
    • 11.5 Results of the MANOVA Test to Ascertain Significant Differences between the Manufacturing, Trading and Service Women Entrepreneurs 262
    • 11.6 Results of the Discriminant Analysis to Study the Three Entrepreneurial Groups Showing the Significance of the Discriminant Functions 263
    • 11.7 Results of the Validation of Classification and Group Membership Prediction in the Manufacturing, Trading and Service Sectors of Women Entrepreneurship 263
    • 11.8 The Unstandardized Canonical Discriminant Function Coefficients to Discriminate the Manufacturing, Trading and Service Women Entrepreneurs 266
    • 11.9 Discriminant Function Loading—Structured Correlations between Discriminating Variables and Canonical Discriminant Functions 268
    • 12.1 Distribution of the Activities of the Sample Women Entrepreneurs 280
    • 12.2 Distribution of the Sample Units by Their Nature of Activities 281
    • 12.3 Socioeconomic Background of the Sample Entrepreneurs 282
    • 12.4 Factors Determining the Entry Choice to Entrepreneurship and the Activity 283
    • 12.5 Details of Organization of the Sample Entrepreneurs 284
    • 12.6 Mean Performance in Terms of Sales Turnover for Women-owned Enterprises 285
    • 12.7 Annual Average Growth Rate of Sales Turnover for Various Years 286
    • 12.8 Comparative Analysis of the Variables of the Sample Men- and Women-owned Enterprises 287
    • 12.9 Gain and Loss after Entry into Business as Perceived by Women Entrepreneurs 287
    • 12.10 Multiple Regression for Growth of Investment 288
    • 12.11 Important Problems of the Sample Entrepreneurs 289
    • 12.12 Problems Related to Family and Business 290
    • 12.13 Economic Dependency of Women Entrepreneurs by Activity 291
    • 12.14 Economic Dependency of Women Entrepreneurs by Marital Status 292
    • 12.15 Percentage of Sample Entrepreneurs Who Availed Institutional Support 293
    • 13.1 Survey Break-up 304
    • 13.2 Entrepreneurial Inclination 304
    • 14.1 Growth of Entrepreneurship Activity in India as Compared with GDP Growth 316
    • 14.2 Growth of Small Industry in Terms of No. of Units, Employment, Output and Exports 317
    • 14.3 Contribution of Small Industry to National Income (GDP), Exports and Employment (in %) 317

    List of Figures

    • 4.1 Role of the Institution in Entrepreneurship Development 99
    • 5.1 Factors Influencing Energy Efficiency: A Framework 113
    • 6.1 Study Hypotheses 144
    • 6.2 Model 1 147
    • 6.3 Model 2 148
    • 6.4 Model 3 149
    • 7.1 Respondents’ Gender 168
    • 7.2 Qualities Expected of Entrepreneurs 173
    • 9.1 Distinct Answers Provided 213
    • 12.1 SWOT Analysis 294
    • 13.1 First Career Option 305
    • 13.2 Entrepreneurial Programmes Attended 305
    • 13.3 Myths and Fears on Entrepreneurship 306
    • 13.4 Strategic Counselling by Institutions 308
    • 14.1 GEM Conceptual Model 316
    • 14.2 GEM Conceptual Model: Elaboration of Entrepreneurial Framework Conditions 320
    • 14.3 Block Schematic Highlighting the Four Basic Elements that are Essential for Establishing BI 322
    • 14.4 Schematic Historical Development of Business Incubators 324
    • 14.5 Business Incubator Framework for Value Creation 328
    • 14.6 Business Incubator Linking All the Stakeholders of Entrepreneurial Society 331

    List of Abbreviations

    AFTAsia Fair Trade
    AGFIAdjusted Goodness-of-Fit index
    ANMAuxiliary Nurse and Midwife
    ANOVAAnalysis of Variance
    APRAsia Pacific Region
    BIBusiness Incubator
    CFIComparative Fit Index
    COCustomer Orientation
    CPOCompetitor Orientation
    DFIDDepartment for International Development
    EFEconomic Factor
    EIFElectric Induction Furnace
    EPEntrepreneurial Propensity
    EIGSEPEntrepreneurship-linked Income Generation for Self-employment Programme
    FDIForeign Direct Investment
    GFIGoodness-of-Fit Index
    GLMGeneral Linear Model
    HRFHuman Resource Factor
    IBInternational Business
    IFATInternational Federation for Alternative Trade
    IFIIncremental Fit Index
    INVsInternational New Ventures
    ISROIndian Space Research Organization
    MTMarket Turbulence
    nAchHigh Need for Achievement
    NBIANational Business Incubation Association
    NEEDNetwork of Entrepreneurship and Economic Development Self Help Group
    OBFOrganizational and Behavioural Factor
    OLLOwnership Locational License
    PACSPoorest Areas Civil Society
    RBVResource-based View
    RMRRoot Mean Square Residuals
    ROIRate of Interest
    SDSustainable Development
    SEMStructural Equation Modelling
    SMESmall and Medium-sized Enterprises
    SSISmall Scale Industries
    TCTransaction Cost
    TFTechnical Factor
    THADCOTamil Nadu Adi-Dravidar Housing and Development Corporation
    TLITucker-Lewis Index

    Foreword

    Technological advancement, developing economy, competitive market, knowledge explosion, focus on research and development, concern towards environment and improving quality of life of people—make this century appear much brighter than the past.

    Many imaginations and dreams are finally seeing the light of day. I personally feel that this century has endless opportunities for entrepreneurial initiatives and we must utilize them constructively. Here, lies the importance of entrepreneurial management.

    I realize that the probability of making an organization an entrepreneurial one has a better chance with the leaders, who are able to balance their drives for motivating, influencing and developing their people better than their competitors. There is a need for the leaders to go extra miles in order to create and develop the spirit of creativity and commitment among people.

    Leading and managing (knowledge-based) faculty resources are essentially quite different in terms of channelizing the creativity and innovation of the faculty. Moreover, financial and infrastructure support to the newly recruited faculty allow them to develop a base for generating more funds, better laboratories and produce creative outcomes. The formation of the Society for Innovation and Entrepreneurship (SINE) to encourage technology incubation and to become business partner has attracted faculty members to apply their knowledge to productive business.

    The entrepreneurial march requires not only knowledge but also the wisdom that one can get beyond the knowledge of core discipline such as arts, aesthetics, politics, history, environment and literature.

    I am happy that my faculty colleague, Professor Shivganesh Bhargava, has compiled papers in the form of an edited book Entrepreneurial Management, published by SAGE Publications India Private Limited.

    I wish and hope that this book comprising papers with diverse approaches and methodologies (survey-based, field-studies, case-studies, experience-based and theoretical) will help entrepreneurs survive and thrive in their business ventures. This book also reflects global access to the available entrepreneurial opportunities and throws light on how to start up as well as expand a business. Students of entrepreneurial management, corporate strategy, entrepreneurship, financial management, marketing management, organizational behaviour and human resource management may find it to be a useful reference book.

    AshokMisra Director, Indian Institute of Technology Bombay

    Preface

    The importance of entrepreneurial marketing, international entrepreneurial finance, technology incubation, and start-up business have occupied a respectable place across the disciplines in recent years, where creativity and innovation are the key determinants. Infusing creativity into products and turning innovation into measurable outcomes have become the main contemporary challenges of the globe. Students of entrepreneurship can contribute significantly in facing such challenges and making entrepreneurial management an emerging field of study. Managing entrepreneurs and entrepreneurial organizations are important aspects of the entrepreneurship development process. Some are being able to do well and are also benefiting from this while many are struggling and lagging behind.

    Entrepreneurs are directly involved in the dynamic but complex interrelationship between financial management and business strategy. The development of any society depends on the transition of its technology and economy. To introduce dynamism in the growth process of a society, entrepreneurial management is essential. It is also essential for improving the productivity of any process. It is the practice of taking entrepreneurial knowledge and utilizing it for increasing the effectiveness of new business ventures and small and medium-sized businesses.

    Entrepreneurship has established its own niche in business, market, corporate world and national development. Entrepreneurial environment facilitates the process of entrepreneurship development and this makes the economy of a nation strong. It is a myth today that individuals from only a few nations/communities/castes can become entrepreneurs. Rather, the proposed thesis for validation is that every person can develop entrepreneurial competency and has the potentiality to excel; but it is also a fact that only some people are able to do while the rest are not. Here, an enterprising attitude, influenced by family, society, social institutions, governance and leadership can play a significant role.

    An organization has to always understand the nerves of its customers and strategize policies towards achieving its goals of maintaining the position of its innovative product in the market. Those who are able to properly align and adapt themselves with the dynamic changes of the market will excel and those who fail in doing so will eventually disappear. This also shows the difference and intense interrelationship between entrepreneurship and entrepreneurial management.

    In today's economy, technical and business skills are not enough to operate a business. Entrepreneurial skills are also required to anticipate changes, identify opportunities and create a high-performance working environment according to the realities demanded by the global competition. The development of entrepreneurship amongst engineers and general graduates is going to be an effective mechanism for technological innovations, helpful in the removal of regional imbalances and sustainable growth of small industries.

    To be successful, particularly in business, everyone must have some basic skills: technical skills (proficiency in specialized information, methods, processes, procedures and techniques involved in product/service), behavioural skills (knowledge of understanding people), business skills (ability to operate in the market/environment), evaluative skills (ability to appraise the value of a process) and execution skills (ability to get work done within the constraints of time, money and people). These skills are particularly essential for today's entrepreneurs. Personal qualities (mindset, entrepreneurial vision, intrinsic motivation, hard work and professional values), technical knowledge, business skills, communication and management skills, capacity to utilize the available material and human resources, knowledge of how to get/take advantage of the available business/market opportunities and culture-fit have also been perceived as the core entrepreneurial characteristics. However, fast technological advancement has forced professionals to move at an equal pace with the fast changing skill requirements of this century.

    Developing and preserving an entrepreneurial spirit should be a concern of all who want to convert their conventional business as a professionally managed corporation. There is no single capsule that could be prescribed to achieve this as all organizations are striving hard to reach this goal through various ways. All these organizations have the potentiality to excel but only some are able to do so and many are unable. Our analyses of the interviews of many entrepreneurs show some common challenges: competition, resource scarcity, shortage of power, capital, technology upgradation and the cost of production, talent, customers’ loyalty, professionalism and inadequate infrastructure of the established entrepreneurs.

    Often managers are asked to function as entrepreneurs and additionally, to surpass the competitors, entrepreneurs are also advised to act as managers. This means that actually both managers and entrepreneurs have overlapping responsibilities to perform. A manager has to learn how to develop the drive for utilizing/exploiting opportunities from an entrepreneur while an entrepreneur could learn from a manager how to optimally utilize resources for achieving target/goals. For a successful chief executive office (CEO), both are essential and required.

    Data reveal that many companies do not achieve the targeted financial value and it has become a universal phenomenon. According to the recent Harvard Business Review Entrepreneurship alert report, nine out of 10 new products launched normally fail. Literature reveals that strategic failure, leadership ineffectiveness, motivation of people, product quality, marketing and business environment play an important role in the success and sustainability of a product in the market. Strategic, marketing and technology management gurus have a lot more to say on how to face such challenges.

    By creating and developing an entrepreneurial mindset of the people involved in the product (outcome) development, an organization can face such challenges of making a product stay long in the competitive market. Additionally, to steer business and motivate (involve) employees to pursue breakthrough growth, capable leaders are required to navigate both external and internal conflicts. Thus, the role and importance of entrepreneurial leadership and management become important for students as well as professionals.

    Therefore, in order to understand, explain and predict the behaviour of entrepreneurs, entrepreneurial teams and entrepreneurial organizations examine the interrelationship among different environmental (market/business), sociocultural and organizational factors as the predictors of entrepreneurship development and validate the existing framework/models of entrepreneurship development. Entrepreneurial management has the potential to emerge as a new field of study in management which can face the contemporary challenges of the globe.

    This volume on Entrepreneurial Management comprises a set of 14 papers by management gurus addressing the above issues. The contributors of these papers are the faculty and research scholars of management and behavioural sciences, managers, consultants and administrators, who contributed their research-findings, thoughts and experiences.

    The first paper is Entrepreneurial Management: Emergence of a New Field by Shivganesh Bhargava. In the paper, the author tries to present a case that entrepreneurship is an emerging interdisciplinary field of study and entrepreneurial management is very important for economy and development. He reports a shift in the mindset of the people, the organizations and government policies as a positive sign in the entrepreneurial context. This has enhanced the involvement of private corporations, increased the participation of new entrants in the market and created a culture of entrepreneurial transformation in a nation like India. The paper discusses some key challenges and puts forward a few directions to follow. The author emphasizes on treating social capital as the foundation of development and also on developing leadership that is truly professional and beyond transformation.

    The next paper is a case study: Network of Entrepreneurship and Economic Development (NEED): A Facilitating Organization of Microenterprise and Self Help Groups by Shailendra Singh. The author identifies and describes the contribution of NEED in promoting microenterprises and self help groups (SHGs). This training model consists of six modules—namely, motivation training, project guidance module, training in management issues, operations and production issues, escort phase consisting of practical issues in an enterprise formation and the follow-up stage. The study throws some 21 outcome indicators of women empowerment and records the familiar voices of SHG members who enumerate the changes/developments that have come about after they joined SHGs. The author concludes that India, with more than 110 crore population, cannot provide employment to its eligible people in the organization sector, thus providing opportunities for self-employment as it is the most plausible route. Evaluation of Entrepreneurship-linked Income Generation for Self-Employment Programme (EIGSEP) revealed success of the intervention in terms of improved quality of life measured through social and political empowerment, income generation, poverty reduction and enterprise sustainability.

    Deeksha A. Singh's paper, A Resource-based Perspective to International Entrepreneurship presents the new firms that emerge from the economies of the Asia Pacific Region (APR) and are making their presence felt in the global market place. The author looks at the issue of international entrepreneurship from the perspective of the firms arising from emerging economies and provides an alternative framework based on the resource-based view to explain the rising phenomenon of international entrepreneurship from emerging economies. Further, the paper argues that even though the emerging economy firms may not have the traditional proprietary advantages enjoyed by big multi-national enterprises (MNEs), yet they have different kinds of resources, which satisfy the criteria of being rare, valuable, inimitable and non-substitutable. It is these resources that provide a competitive advantage to these firms over the domestic firms in foreign markets. In the paper, the author examines a few assumptions and highlights the role of some key factors in explaining the rise of international entrepreneurship from emerging economies.

    The next paper is Developing Entrepreneurial Workforce for Sustainable Growth of the Small Scale Sector by V.P. Wani. The paper presents the theory that the small scale industries (SSI) sector has acquired a prominent role in the socioeconomic development of the country and has contributed to the overall growth of the gross domestic product as well as in terms of employment generation, removal of regional imbalance and export. Due to some business challenges, many units of this sector are facing numerous problems resulting in their sickness. To minimize these, an entrepreneur has to adopt innovative product processes, productivity improvement techniques and effective technology management for the sustainability of the units. The paper examines the factors responsible for the growth or sickness of small scale industrial unit and proposes the model with strategic approach for developing entrepreneurial capabilities among engineers.

    In the next paper, titled, Does Human Resource Factor Matter in Achieving Energy Efficiency in Small Industry Clusters? An Empirical Study, the author, N. Nagesha, argues that the level of energy efficiency in a small scale industry depends not only on the production technology adopted but also on other non-technology factors and therefore, analyzes the factors including entrepreneurial and human resources, in the context of two energy intensive SSI clusters. The analysis of empirical data from 42 iron foundries and 41 textile dyeing units located in two South Indian states establish the significance of non-technology factors and identify the key variables in achieving energy efficiency. The findings show the importance of human factors in energy efficiency levels in the selected SSI clusters. The paper underlines the need to involve non-technology factors in the prevailing technology-centred energy-efficiency improvement initiatives in the small industry sector for discernible improvements in the long run.

    Another paper, Effect of Market Turbulence and Market Focus on the Firm's Performance in Small and Medium Scale Manufacturing Firms by Sanjay S. Gaur and Hari Vasudevan ascertains the effect of market turbulence and market focus on the performance of small and medium scale manufacturing firms in India. The study found that firms perform better during the time of market turbulence and components of market focus like customer orientation and that competitor orientation of the firm were not directly related to the firm performance. However, the study found that during the time of high market turbulence, firms with better market focus, that is, which are more customer-oriented and competitor-oriented, perform better. The paper shows that the scales used (for market turbulence and market focus) in developed countries like the USA are reliable and valid in the context of small and medium scale manufacturing firms in India also.

    The next paper, Student Expectations of Entrepreneurs: A Survey by Francis Jose, is based on a survey of postgraduate students in Chennai, wherein the author presents the expectations of the students from entrepreneurs in terms of the personality qualities. He also examines the interrelationships that these characteristics have with their demographic profiles. Tests of difference on the 18 qualities among students in their varied backgrounds reflect the sociological trends and mind patterns, which primarily reflect the hidden needs and ambitions that the young educated Indian have about entrepreneurship. The analysis also suggests that entrepreneurial qualities like confidence, enthusiasm, intelligence, honesty and creativity can be built up and furthered in society, which will help governments and social institutions identify and develop specific strategies to enhance the global and societal consciousness of our entrepreneurs.

    The next paper by Kailash B.L. Srivastava is on Examining the Relationship of Sociocultural Factors and Entrepreneurial Propensity among Professional Students. Here, an attempt has been made to explore the reasons why young students choose the entrepreneurial career and the role of socio-cultural factors in selecting such a career. Analyses of the results show that management students reported greater levels of entrepreneurial propensity on each dimension of the study. The effect of sociocultural factors on entrepreneurial propensity is also found. The author has also outlined some directions for the future.

    A paper by R. Raghunathan on Motivational Factors Influencing Industrial Entrepreneurship in Rajasthan argues that stability serves as an engine for economic growth. Identifying the factors that influence an individual's choice to pursue an entrepreneurial career that has an impact on economic growth and development, he further argues that although a large number of leading industrialists of India belong to Rajasthan, yet the state is still economically backward. In his survey among industrial entrepreneurs, the role of non-economic factors on starting a business was clearly visible.

    The next paper is Psychosocial Perceptional Differences: An Empirical Exploratory Study on Indian Food Processing Women Entrepreneurs by R. Ganesan, R.P. Pradhan and R.C. Maheshwari. The authors argue that change in the perception of women in India has yet not occurred in totality. It could be that women still need more support from their mentors, the successful enterprising women, who will impact their perception and thus bring change in terms of the social system and socio-background deviations. The analyses of women entrepreneurs/actors, who were running food processing enterprises/start-ups, show a significant effect of socio-background variables on psychosocial variable and the authors discuss these accordingly.

    Following this is A Study of Life-situation Antecedence, Personality and Motivational Patterns of Small Scale Women Entrepreneurs by T.J. Kamalanabhan and V. Vijaya. The paper focusses on the psychological aspects of the entrepreneurial intention of small scale women entrepreneurs in the manufacturing, trading and service sectors. The variables incorporated for study were life situation antecedence, personality, entrepreneurial motivation and business-related variables. The tools used for the study were life situation antecedence scale, personality questionnaire and entrepreneurial motivation scale. The results reveal the significant effect of life situation antecedence, personality and business related variables on entrepreneurial intention in small scale women entrepreneurs, who were found to have lower psychological support, poorer work condition and lesser competence compared to women non-entrepreneurs in life situation antecedence. The authors have made an attempt to explain the differences in the entrepreneurial intention of women entrepreneurs in the manufacturing, trading and service sectors.

    The next paper is a case study also on Women Entrepreneurship: A Case of Microenterprises by N. Manimekalai and A. Mohammed Abdullah. The authors argue that most of the researches in the field of entrepreneurship have been centred on male entrepreneurs and business communities. To inculcate the spirit of entrepreneurship among new communities, institutional efforts are the need of the time. There is also an urgent need to encourage women entrepreneurs, who contribute significantly but have hardly been accounted in the national income to become owners of enterprises. The paper presents the case that their contribution cannot be ignored now.

    In the paper on Strategic Role of Engineering Institutions for Entrepreneurship Developments in India, Dinesh Khanduja and Rajeev Khanduja attempt to re-establish the important role played by engineering education on entrepreneurship development. They opine that the engineering institutions of India have mostly played a passive role in discharging their responsibilities and that resulted in establishing many myths and fears regarding entrepreneurship among students. They found the abundance of entrepreneurial aptitude among students but ironically, they could also find a lack of entrepreneurial capability among them in the absence of proper inputs on entrepreneurship. The paper also gives an account of the growing trend among engineers to choose wage employment/self-employment as a career option and analyzes the prevalent myths and fears on entrepreneurship. The authors propose a remedial measure of strategic counselling by engineering institutions in order to significantly improve the involvement of engineering faculty for the sustainable growth.

    The last paper titled Building Entrepreneurial Society in India through Business Incubation is by M.K. Sridhar and M.V. Ravikumar. In this paper, the authors outline the historical roots of entrepreneurship and emphasize on the fact that the source of livelihood is wealth. They further argue that wealth enables the creation of more wealth. An entrepreneur is an economic leader, who possesses the ability to recognize opportunities for successful introduction of new products, techniques and new sources of supply and that all political ideologies of a nation treat entrepreneurship as the essential for economic development. The paper reflects on the government's efforts on overall entrepreneurship activity including survival and opportunity-based entrepreneurship. The authors presented these efforts as the growth and contribution of the small scale sector, which has the maximum employment generation ability with comparatively low investment and potentiality to minimize the regional imbalance in industrial development. For establishing an entrepreneurial society, a nation has to have a stable and efficient handholding mechanism available at low cost, to start-ups as well as family-based entrepreneurs for diversifying their efforts into new sectors. This paper proposes that establishing business incubators suiting regional conditions and local resources based on appropriate and effective framework on a public, private, in-company or co-operative basis could be the ideal method to build an entrepreneurial society.

    The authors conclude that the business incubator has the potentiality to demonstrate its transformational role in developing the economy if a proactive policy support, knowledgeable governing council and effective incubator management are in place for an entrepreneurial society. The paper also cautions that designing such an overarching strategy is not going to be easy as it also depends on the cooperation and resources of a number of stakeholders in society, such as administrators, educators, financiers, social organizations, technologists, social scientists and entrepreneurs themselves. The authors put forward a positive note that it is possible to design an entrepreneurial society for the all-round development of the nation.

    The society has to create entrepreneurial leaders, who aspire to be not only at the top in the environment but also feel the need to nurture people on whom the nation's economy stands. It is possible only through a comprehensive understanding of the sociocultural as well as economic aspects related to starting and expanding business ventures. Entrepreneurs must balance internal resources and they also need to focus on continuous improvement of their people by creating a hassle-free, free environment, achieving both growth and innovation.

    In this techno-competitive era, physical boundaries are reduced. Communication has become easy, and information about everything is easily and timely available. The consumer, too, has a variety of similar as well as competing products to choose from. Getting money from the banks has become smoother; converting ideas into action is no longer just a dream and the market is dependent on the customers’ interest and the brand name. The time has now come when the need of creating and developing an entrepreneurial organization where business starts with ideas of people incubated to define products/services matching the market realities through an effective implementation must be realized by all. All these are possible through an enterprising attitude of people, where family, society, social institutions, governance and leadership all play their role, thus enabling individuals as well as the small/medium enterprises, which are a very vital segment of the economy, to gear up their business operations professionally for rebuilding nations.

    All organizations will find it hard to maintain their position in the global market for long. Hence, it is possible only by being an entrepreneurial system, where one has to move from effective leadership to effective entrepreneurship. The positive expectations of entrepreneurial leaders from their colleagues’ performance will exert a powerful impact on an individual colleague's performance. This will allow organizations to face challenges related to the loss of knowledge and experience of talented people for an edge on competitiveness and profitability. Hope this volume will provide a direction in this field.

    ShivganeshBhargava
  • About the Editor and Contributors

    Editor

    Shivganesh Bhargava is Professor at the Shailesh J. Mehta School of Management, IIT, Bombay, in the area of Organizational Behavior, Human Resource Management and Entrepreneurship. His past teaching and research associations include IIM, Lucknow and Ahmedabad. Dr Bhargava has various accolades to his credit, including being the first recipient of the V.K.R.V. Rao Award in Management. He has also been awarded the ICSA Young Scientist (1986) and the MPCOST Young Scientist (1988) awards. He has contributed to numerous national and international journals and authored the book, Transformation Leadership: Value-based Management for Indian Organization and edited the volume: Developmental Aspects of Entrepreneurship.

    Contributors

    A. Mohammed Abdullah is Faculty Member at the Bharathidasan University, Tiruchirapalli.

    R. Ganesan is Assistant Professor at the School of Management, SNS College of Technology, Sathy Main Road, Vazhiyampalayam, Coimbatore.

    Sanjay S. Gaur is Associate Professor at the Shailesh J. Mehta School of Management, IIT, Bombay.

    Francis Jose is Faculty at the Department of Commerce, Loyola College, Chennai.

    T.J. Kamalanabhan is Professor at the Department of Management Studies, IIT, Madras.

    Dinesh Khanduja is Assistant Professor (Mechanical) at the National Institute of Technology, Kurukshetra.

    Rajeev Khanduja is Assistant Professor (Mechanical) at the S.J.P.M.L. Institute of Technology, Radaur (Yamuna Nagar).

    R.C. Maheshwari is Professor at the Centre for Rural Development and Appropriate Technology, IIT, Delhi.

    N. Manimekalai is the Director of the Centre for Women's Studies, Bharathidasan University, Tiruchirapalli.

    N. Nagesha is a Doctoral Student at the Department of Management Studies, Indian Institute of Science, Bangalore.

    R.P. Pradhan is Faculty Member and the Public Relations Officer at the Humanistic & Management Group, Birla Institute of Technology & Science (BITS), Pilani, GOA Campus.

    R. Raghunathan is Lecturer at the Management Group, Birla Institute of Technology & Science, Pilani.

    M.V. Ravikumar is Doctoral Student at the Canara Bank School of Management Studies, Bangalore University, Bangalore.

    Deeksha A. Singh is Doctoral Student at the Department of Business Policy, National University of Singapore, Singapore.

    Shailendra Singh is Professor at the H.R.M. Group, Indian Institute of Management, Lucknow.

    M.K. Sridhar is Reader at the Canara Bank School of Management Studies, Bangalore University, Bangalore.

    Kailash B.L. Srivastava is Professor at the Department of Humanities and Social Sciences, IIT Kharagpur.

    Hari Vasudevan is Assistant Professor at the Dwarkadas J. Sanghvi College of Engineering, Mumbai.

    V. Vijaya is Faculty Member at the Manipal Institute of Management, Bangalore.

    V.P. Wani is Workshop Superintendent at the National Institute of Technology, Kurukshetra.


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