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Annual Research Journal ofAnnual Research Journal of

Symbiosis Centre for Management Studies.Survey # 231, Near Lunkad Gold Coast,

Viman Nagar, Pune - 411014

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AJSPISSN: 2348-0661Volume 2 • Issue 1 • March 2014

CHIEF PatronPadma Bhushan Prof. (Dr) S.B. MujumdarFounder and President, SYMBIOSISHon’ble Chancellor, Symbiosis International University (SIU)

Patron(S)Dr Vidya Yeravdekar Dr rajni GuptePrincipal Director Vice ChancellorSymbiosis Symbiosis International university

EDItor In CHIEF ManaGInG EDItor aSSoCIatE EDItorDr anupama Suresh richa arora Sabiha FazalbhoyDirector, SCMS Pune Deputy Director, SCMS Pune Faculty, SCMS Pune

EDItorIaL BoarD

Dr Zafar IqbalAssociate Professor, Department of MarketingDe Paul University Chicago, USADr ashish DeshpandeProfessor, Department of ManagementNational Institute of Technical Teachers Training and ResearchDr Sudhakar KotaAssociate Professor, Economics and Marketing,Skyline University College, Sharjah, U.A.E.

aDVISorY BoarD

Dr H.S. YadavProfessor – Department of Regional Planning & Economic Growth, Barkatullah Vishwavidyalaya, Bhopal Mr alok GuptaManaging Director at Himland Trade Monitors (Pvt.) Limited, Mumbai Area, IndiaMr Stephen MurdochAssociate Dean – International Professor of Law and EthicsIESEG School of Management, FranceMr George KoshyFounder and PresidentGreencontributor Inc., CanadaMs ravneet PawhaCountry Director – IndiaDeakin University, Australia

© 2014 Symbiosis Centre for Management Studies, PUNE

Published bySymbiosis Centre for Management Studies, Pune

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From the Editors Desk

Dear Readers,

Amidst great joy and anticipation we present the Second Volume of Our Annual Research Journal (AJSP). The Annual Journal of SCMS, Pune provides a refereed and authoritative source of information and International forum in the field of Management, Entrepreneurship, Innovation, Retail, FDI and other related topics.

It offers an interface between these topics as well as business corporate strategy and government’s economic policy. The Journal particularly welcomes articles that advance our understanding of entrepreneurship phenomenon across different national and cultural contexts. The journal comprises of articles that are well articulated, substantive and the Journal is peer-reviewed.

We extend our gratitude to all our authors, editors and anonymous reviewers who have provided assistance at different stages of work and to the academicians who have contributed to the preparation and enrichment of articles leading to the inception of AJSP. Their collaboration and continuous effort is unmatched.

We wish to receive scholarly original articles, research review papers in the field of Management from across the globe with an emphasis on Management theories, practices and related fields. Comments and suggestions which will improve the quality of our journal are always welcome and would be highly appreciated.

Dr Anupama Suresh Rawat

PhD Economics Director, SCMS–Pune

Message from the Chancellor

The Symbiosis International University always practices and preaches the concept, ‘World is One Family’ – ‘Vasudhaiva Kutumbakam’.

It always promotes friendship, co-operation and understanding between foreign and Indian students. Symbiosis today is the premiere educational institute of Pune and a brand equity in providing quality management education.

The different institutes that come under the umbrella of Symbiosis International University are the agents of change which contributes to the symbiotic growth of the University.

I would like to congratulate the entire team of SCMS on the launch of their second Journal – “Annual Research Journal of SCMS–Pune” and for having their second international conference. Research gives birth to new knowledge and answers a lot of existing questions. These kind of conferences are a plethora of knowledge and contribute to the prevalent research culture in the university.

This initiative taken by SCMS Pune will take them forward by leaps and bounds on the path of recognition and reputation. I wish them good luck and success in all their endeavors.

Padma Bhushan Dr. S.B. Mujumdar Founder & President, Symbiosis,

Chancellor, Symbiosis International University

Profile of Vice Chancellor

Dr. Rajani Gupte, the Vice Chancellor of Symbiosis International University [SIU], Pune, completed her doctorate in Economics from the Gokhale Institute of Economics and Politics, Pune. She has more than 30 years of experience in teaching and research at prestigious institutes including Loyala College, Madras and her alma mater the Gokhale Institute itself. After six years of corporate work experience as a Finance Director, she joined Symbiosis. She was a founding member of the Symbiosis Institute of Foreign Trade in 1992 (now Symbiosis Institute of International Business, SIIB) and was Director of SIIB from 2004–12. She was instrumental in establishing SIIB as one of the leading B-Schools in India, and in starting innovative niche MBA programs in agribusiness as well as energy and environment. Under her leadership, SIIB has built several active international collaborations for student and faculty exchange and was the first SIU institute to offer a dual degree program with a German university.

Dr. Gupte also served as Dean, Faculty of Management, Dean, Academics and Pro-Vice Chancellor at the Symbiosis International University.

A visiting faculty at the Oakland University, School of Business Administration, Michigan, USA, she has also addressed business leaders at Bremen University for Applied Sciences, Germany. Appointed on the WTO Cell set up by the Department of Horticulture, Government of Maharashtra, she was also a member of the International Trade Panel, CII, Western Region. She was a member of the Advisory Board, Chemtech World Expo from 2009 to 2011. She has been a UGC nominee on various committees.

She has published several research papers in her areas of specialisation which include the world trade organisation, international business and trade policy and non-tariff barriers. She has participated in several seminars organised by the CII, FIEO, Indo American Chamber of Commerce, Maratha Chamber of Commerce, and other industry associations.

Dr Rajani GupteVice Chancellor

Symbiosis International University

Profile of Principal Director

Dr. Vidya Yeravdekar is the Principal Director of Symbiosis Society, which encompasses the Symbiosis schools and institutions under the Symbiosis International University. A dream dreamt by her father Padma Bhushan Dr. S.B. Mujumdar 43 years ago of creating a home away from home for international students. Symbiosis today has transformed itself into a multi-disciplinary, multinational, multi-cultural international university having students from all states of India and international students from 85 different countries. The university has institutes under 7 faculties namely management, law, humanities and social sciences, health and biomedical sciences, IT, engineering, media communication and design.

Dr. Vidya holds a post graduate degree in medicine, a degree in law and earned her PhD in internationalization of higher education in India. To promote international understanding through quality education, she has brought in innovative approaches at the Symbiosis International University through international collaborations with some of the top universities in the world. She inherits very strong values of passion and foresight from her father, and has intense social and ethical concerns which indulges her in many philanthropic enterprises to provide education for the less fortunate.

She has always been a person who “thinks ahead of the times” and has been instrumental in starting some innovative schools at the university like the School of Liberal Arts, School of Photography, the School of Planning and Architecture, Institute of Research and Innovation, Teaching and Learning Resource Centre for Faculty and Student Learning Support Centre for Students.

Dr. Vidya tries to influence policy regulations for promoting and bringing in innovative approaches in higher education in India through her appointment on various governmental committees such as the University Grants Commission, Indian Council for Cultural Relations, Central Advisory Board of Education (CABE) which is the highest advisory body in the field of education to advise the central and state governments, Indian Institute of Mass Communication, Swarnim Gujarat Sports University, National Institute of Agriculture Extension Management and many other non-governmental committees and organizations such as the Mahratta

Profile of Principle Director v

Chamber of Commerce & Industries, Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of India Industry (CII), Managing Committee Member of HK Firodiya Foundation, India International Centre (IIC) and Pune International Centre (PIC).

She has presented papers in various national and international conferences and has published papers in the area of internationalization of higher education as well as in the area of health sciences in some of the most reputed journals. Dr. Vidya’s hard work has won her numerous awards and accolades and she is now focussed on making Symbiosis International University benchmarked amongst one of the best universities in Asia.

Dr. Vidya served with the Ministry of Health, Sultanate of Oman before she returned to India in 1997 to join Symbiosis.

Dr. Vidya is married to Dr. Rajiv Yeravdekar and blessed with two children Amay and Amruta.

Dr. Vidya Yeravdekar Principal Director,

Symbiosis

Contents

From the Editor Desk iMessage from the Chancellor iiProfile of Vice Chancellor iiiProfile of Principal Director iv

1. Youth Ecopreneurship: A Key for Success of First Generation Entrepreneurs 1Archana Singh and Nehajoan Panackal

2. Developing Family Business Members as Family Business Managers – With Reference to the Role of Education and Training on Development of Family Managed Businesses in India 14Hasina Sayed, Rakhi Sharma and Ratnesh Desai

3. Using Morphological Analysis for Innovation and Resource and Development: An InvaluableTool for Entrepreneurship 28K. Gopalakrishnan and V. Vijayalakshmi

4. Commodity and Derivatives Market for Agricultural Development 37Mohammed Jamshed and Shamim Ahmad

5. Creating Social Entrepreneurship by Design Bamboo Product Success with Involvement of Community Groups 49Nachiket Thakur and BV Sangvikar

6. Worker Participation in Management Decision Making Within Selected Establishments in Uttar Pradesh, India 65Nachiket Thakur

7. Geospatial Technology: Opportunity in Fostering Social Enterpreneureship 82Navendu Chaudhary

8. Intrapreneurship Prerequisites and Outcomes in High-Tech Industries 93Nishith Dubey, R.G. Chouksey, Canchal Mehra and Atul Mishra

annual research journal of symbiosis centre Vol. 2, Issue 1, March 2014for management studies, pune

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9. Resource, Development and Innovationin the Indian Industry 103S.R. Sheeja

10. Women Entrepreneurship as the Way for Economic Development 117Sabiha Fazalbhoy

11. A Study on Entrepreneurial Seriousness among Small Education-based Business Owners in Bhilai 128Sanjay Mishra and Ranjeeta Mishra

12. Skill Development and Vocational Training in the Handicraft Sector in Jammu and Kashmir: Special Reference to District Anantanag 138Showkat Ahmad Sheikh and Sharad Tiwari

13. Entrepreneurial Leadership Style(s): A Taxonomic Review 156Yamini Karmarkar, Meghna Chabra and Aashish Deshpande

Youth Ecopreneurship: A Key for Success of First Generation Entrepreneurs

Archana Singh* and Nehajoan Panackal*

ABSTRACT

Environment Sustainability is vital for every economy in the world. Companies are considered to be the main players creating environmental and social problems, and thus to be the source of a lack of sustainability in society. This article focuses on how the first generation entrepreneurs can contribute towards environment sustainability. The article aims to analyse the potential of environmentally conscious entrepreneurs, called Ecopreneurs, to encourage more startups that would create environmental technologies needed to address our environmental problem. The article also aims to examine how ecopreneurs can create an economically viable business. It also discusses how first generation entrepreneurs can promote ecopreneurial behaviour. The article is based on Primary and Secondary data. It aims at developing a model for the first generation ecopreneurs through ISM Structural Modeling.

Keywords: Ecopreneurs, First Generation Entrepreneurs, Sustainability, Interpretive Structural Modeling

* Symbiosis Centre for Management Studies, Symbiosis International University, Pune

ISSN 2348–0661 Print© 2014 Symbiosis Centre for Management Studies, PuneAnnual Research Journal of Symbiosis Centre for Management Studies, PuneVol. 2, Issue 1, March 2014, pp. 1–13

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Introduction

There is a growing concern toward more sustainability in our society. s a consequence, more and more entrepreneurs are entering into that field (Choi and Gray, 2008). Environmental business management has focused its attention on why and how the existing firms can become greener. However, the field of green management has begun to broaden its arena, and recently there has been a growing recognition of the importance of linking sustainability and innovation, the role of small and medium enterprises, the importance of sustainability in strategic business development, and green practices in industries. The adoption of environmentally responsible business practices will open up an additional range of opportunities for entrepreneurs. The move to a sustainable business framework provides numerous niches which enterprising individuals can identify. This includes the development of new products and services, improving the efficiency of existing firms, new methods of marketing, re-configuring existing business models and practices. Ecopreneurship is not only important because it provides new opportunities for the first movers who identify and exploit such opportunities, but also because it has the potential to be a major force in the overall transition to a more sustainable business paradigm.

Ecopreneurship is a combination of two words, ‘ecological’ and ‘entrepreneurship’. Thus, it can be defined as entrepreneurship through an environmental lens. For a company to have a positive environmental influence, a real improvement can be created only if the production processes, products, and services are environmentally superior. Ideally, Ecopreneurship pulls the whole market towards environmental progress. Ecopreneurs strive for business success through environmental solutions for the mass market.

Environmental issues are of low priority for companies that are located in the lower right hand, and consider environmental protection as a trustee duty. Companies that are located in the middle consider environmental goals as supplementary to the business attempt to pilot and control environmental impacts in an efficient manner, and companies located in the upper right hand treat environmental issues as central to their core business.

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Figure 1: Business Continuum: Relation Between Priority Given to Environmental Issues as Business Goals and Market Effect of Business

Source: Schaltegger and Petersen, 2001:10

The green entrepreneur’s activities have an overall positive impact on the natural environment and they move towards a more sustainable future. All their business is structured and operated in such a way that every component has a neutral or positive impact on the environment. Environmental and social entrepreneurs, or ecopreneurs, lead socially committed, break-through ventures that are driven by environmental, social and economic goals.

Objectives of the Study

• Tofindoutthekey factors for first generation entrepreneurs through Ecopreneurship.

• To develop a model to identify the relation among the success factors for first generation entrepreneurs through Ecopreneurship through Interpretive Structural Modeling (ISM).

• To examine how ecopreneurs can create an economically viable business.

Literature Review

A strong link is identified between entrepreneurialism and environmentalism. The success of the Green-Works business model stems from the business’ symbiotic relationships: first with large corporate bodies, which are keen to quantify their Corporate Social responsibility (CSR) efforts; second, with the community and social partners, who provide employment and


training for disadvantaged people and a route to relatively risk free growth; and third, with the government and social institutions, which provide special concessions and support. The strong economic foundations of the model provide sustainability for the environmental and social objectives of the organisation (Dixon and Clifford, 2007).

Environmentalism can be understood only in terms of attitudes; it cannot be subsumed into, or understood in purely economic terms because of the power of the moral dimension. Entrepreneurship is primarily an individualistic economic action, but it too can be driven by moral attitudes (Anderson, 1998).

It’s important to give Ecopreneurship serious consideration because we are rapidly losing our natural resources—the true capital of any nation. In the past decades, economic growth has been the only measure of the nation’s progress (Joshi, TOI).

Ecopreneurship is also important because eco-innovations will be the future competitive advantage of companies and countries. They argued that if companies and countries want to be successful in the international market, they cannot rely on having low cost as their competitive advantage, but rather on new and innovative environmental technologies, services and processes which will be the more important sources of competitive advantage. The long-term sustainability of our economic system does not depend only on quantitative growth, but also on the ecological aspects of the growth and sustainable development (Klimova and Zitek, 2011, p. 2).

The world population is expected to increase by 50 per cent by 2050, and with it will come an increase in consumption (World Business Council for Sustainable Development, 2002). Although part of this consumption is important for relieving poverty in many emerging countries, most it will be done by affluent consumers and can have a negative impact on the ecosystems (Volery, 2002, p. 542). Ecopreneurship is therefore important to find the new technologies to protect the environment, and to ensure that there are enough resources to fill the needs of both the current population and future generations (Volery, 2002). Biodiversity loss also justifies entrepreneurial action to solve environmental problems. The entrepreneur’s perception on Information Technology Innovation Adoption plays an important role of precipitating events on usage behaviour (S. Moghavvemi).


In a market system, sustainable development requires sustainability innovation, and entrepreneurs who can achieve environmental or social goals with superior products or processes that are successful in the marketplace of mainstream customers, contribute to solving environmental problem and creating economic value. They generate new products, services, techniques and organisational modes which substantially reduce environmental impacts and increase the quality of life (Schaltegger and Wagner).

Table 1: ISM Reference Table based on Literature ReviewS.

No.Factors Variables Reference

1. Green Work Business Model

V1 Sarah E.A. Dixon, Kingston Business School, Kingston upon Thames, UK.

Anne Clifford, Kingston Business School, Kingston upon Thames, UK.

Venus Talwar and Kavita Puri.2. Moral

Dimensions and Environmentalism*

(*Environmentalism is an ideology based on reaction to the excessive of industrial modernity)

V2 Cultivating the Garden of Eden: Environmental Entrepreneuring, Article citation: Alistair R. Anderson, (1998), ‘Cultivating the Garden of Eden: environmental entrepreneuring’, Journal of Organisational Change Management, vol. 11 Iss: 2, pp. 135–44.

3. Economic Growth V3 Anil P. Joshi, Times of India.4. Eco Innovations

and Long Term Sustainability

V4 Klimova and Zlek, 2011.

5. Technology Development and Environmental Management

V5 Stephen, University of Luneburg, Germany.

Factors influencing Japanese entrepreneurs in high-technology ventures – Dennis M. Ray, Domnique v. Turpin.

The Entrepreneur’s Perception on Information Technology Innovation Adoption: An Empirical Analysis of the Role of Precipitating Events on Usage Behaviour – S. Moghavvemi.


S. No.

Factors Variables Reference

6. Social Responsibility V6 Sarah E.A. Dixon, Kingston Business School, Kingston upon Thames, UK.


7. Government and Social Institutions

V7 Sarah E.A. Dixon, Kingston Business School, Kingston upon Thames, UK.


8 Economic Value V8 Stefan Schaltegger and Marcus Wagner.

Interpretive Structural Modeling

Interpretive Structural Modeling (ISM) enables the individual or a group to manage the interrelations between two or more elements at a time without compromising and deviating from the actual properties of the original elements/issues (Morgado et al., 1999). ISM provides a framework for delineation of a hierarchy amongst variables, influencers or elements of any project under consideration (Warfield, 1974; Sage, 1977). This kind of modeling is seen as a useful tool that helps logical thinking and carefully approaching complex issues, and then communicating the results of that thinking to others. The term ‘interpretive structural modeling’ (ISM) connotes systematic application of elementary notions of graph theory in such a way that theoretical, conceptual, and computation leverage is exploited to efficiently construct a directed graph, or network representation, of the complex pattern of a contextual relationship among a set of elements (Malone, 1975). ISM is much more flexible than many conventional quantitative modeling approaches that require variables to be measured on ratio scales. It offers a qualitative modeling language for structuring complexitym and thinking on an issue by building an agreed structural model (Morgado et al., 1999). ISM as a tool is interpretive because it is based on interpretation and judgement of group members on whether and how elements are related, and it is structural as it extracts the overall hierarchy from a complex set of variables. It has a mathematical foundation, philosophical basis, and a conceptual and analytical.


Methodology

Details of various steps involved in ISM are as follows:

1. Identify and list elements/variables relevant to the factors for successful Ecopreneurship under consideration, through a literature review.

2. Use ISM literature review and pilot survey to find the key factors for success of first generation entrepreneurs.

3. Develop a Structural Self Interaction Matrix (SSIM) for variables, indicating pair-wise relationships among variables being studied.

4. Convert the SSIM developed into a reachability matrix.

5. Test the reachability matrix for transitivity (if A depends on B and B depends on C, then by principle of transitivity, A depends on C), make modifications to satisfy the transitivity requirements, and derive the final reachability matrix.

6. Delineate levels by iterative partitioning of the final reachability matrix.

7. Translate the relationships of reachability matrix into a diagraph and convert it into an ISM.

8. Review the model for conceptual inconsistencies and make modifications in SSIM, if necessary.

Structural Self Interaction Matrix (SSIM)

For development of Structural Self interaction Matrix (SSIM), ISM methodology suggests that experts’ views are used for defining contextual relationship among variables, in line with objectives of the study. In this research, an entire list of success factors for the first generation entrepreneurs through Ecopreneurship, identified from the literature review, was presented to a group of participants. The group was explained the background of study and was asked to deliberate whether the list of eleven barriers/hurdles and eleven enablers/drivers adequately covered all factors influencing m-banking, or there was a need to include any other factor(s). Four symbols were used to denote the type and direction of relationship between a pair of barriers, ‘i’ and ‘j’ (referring to serial number of a barrier in row and column respectively).


Table 2: Structural Self Interaction Matrix (SSIM)i j

V8

V7

V6

V5

V4

V3

V2

V1

V1 V A V X X V X

V2 V A X A X V

V3 X X A X X

V4 X X A X

V5 X A O

V6 A X

V7 O

V8

The following four symbols are used to denote the direction of relationship between the two factors (i andJ). The following four possibilities are considered for making SSIM as shown in Table 2.

Table 2

Reachability Matrix

SSIM developed from contextual relationships were converted into binary matrices called Initial Reachability Matrices, by replacing V, A, X and O by a combination of 1s and 0s in accordance with the VAXO rules. If entry (i, j) in SSIM = ‘V’, enter element (i, j) as ‘1’ and (j, i) as ‘0’ in initial reachability matrix (Table 3).


If entry (i, j) in SSIM = ‘A’, enter element (i, j) as ‘0’ and (j. i) as ‘1’ in initial reachability matrix If entry (i, j) in SSIM = ‘X’, enter element (i, j) as ‘1’ and (j. i) as ‘1’ in initial reachability matrix If entry (i, j) in SSIM = ‘O’, enter element (i, j) as ‘0’ and (j. i) as ‘0’ in initial reachability matrix

Table 3: Reachability Matrix

i j Driving VariablesV1 V2 V3 V4 V5 V6 V7 V8

V1 1 1 1 1 1 1 0 1 7V2 1 1 1 1 0 1 0 1 6V3 0 0 1 1 1 0 1 1 5V4 1 1 1 1 1 0 1 1 7V5 1 1 1 1 1 0 0 1 6V6 0 1 1 1 0 1 1 0 5V7 1 1 1 1 1 1 1 0 7V8 0 0 1 1 1 1 0 1 5

Dependent Variable

5 6 8 8 6 5 4 6

Level Partitioning

Table 4: Level Partitioning, Level 1 – V4, V5

i j LevelReachability Set Antecedent Set RS ∩ AS

V1 1,2,3,4,5,6,8 1,2,4,5,7 1,2,4,5V2 1,2,3,4,6,8 1,2,4,5,6,7 1,2,4,6V3 3,4,5,7,8 1,2,3,4,5,6,7,8 3,4,5,7,8V4 1,2,3,4,5,7,8 1,2,3,4,5,6,7,8 1,2,3,4,5,7,8 Level 1V5 1,2,3,4,5,8 1,3,4,5,7,8 1,3,4,5,8 Level 1V6 2,3,4,6,7 1,2,6,7,8 2,6V7 1,2,3,4,5,6,7 3,4,6,7 3,4,6,7V8 3,4,5,6,8 1,2,3,4,5,8 3,4,5,8

Final reachability matrix obtained after incorporating transitivity requirements is used for level partitioning (Table 4). It involves comparing the ‘reachability’ and ‘antecedent’ sets of variables, and delineating levels on the basis of intersection sets. It leads to a reachability set for a variable by considering the variable itself and other set of variables that cause an


impact, whereas the antecedent set comprises the variable and a set of all those variables that have an impact on the primary variable. The hierarchy in ISM is decided by the level of similarity in reachability and intersection sets (Tables 5 to 8). These variables would not impact any other variables.

Table 5: Iteration Table Level 2 – V3, V8


V1 1,2,3, 6,8 1,2, 7 1,2V2 1,2,3,6,8 1,2, 6,7 1,2,6V3 3, 7,8 1,2,3, 6,7,8 3,7,8 Level 2

V4 1,2,3,7,8 1,2,3, 6,7,8 1,2,3, 7,8V5 1,2,3, 8 1,3, 7,8 1,3, 8V6 2,3,6,7 1,2,6,7,8 2,6V7 1,2,3, 6,7 3,6,7 3,6,7V8 3, 6,8 1,2,3, 8 3, 8 Level 2

Table 6: Iteration Table Level 3 – V1


V1 1,2,6 1,2, 7 1,2 Level 3V2 1,2,6 1,2, 6,7 1,2,6V3 7 1,2,6,7 7V4 1,2,7 1,2, 6,7 1,2,7V5 1,2 1,7 1V6 2,6,7 1,2,6,7 2,6V7 1,2,6,7 6,7 6,7V8 6 1,2

Table 7: Iteration Table Level 4 – V2


V1 2,6 2, 7 2V2 2,6 2, 6,7 2,6 Level 4V3 7 2,6,7 7V4 2,7 2, 6,7 2,7V5 2 7V6 2,6,7 2,6,7 2,6V7 2,6,7 6,7 6,7V8 6 2


Table 8: Iteration Table Level 5 – V6, V7


V1 6 7V2 6 6,7 6V3 7 6,7 7V4 7 6,7 7V5 7V6 6,7 6,7 6 Level 5V7 6,7 6,7 6,7 Level 5V8 6

Building up the ISM

After partitioning the levels, relationships between various factors are depicted by drawing a node for each variable, and connecting those nodes by arrows as per the direction of relationship. The diagraph is examined and validated for transitivity, which is clearly described in methodology, and it is then converted into an ISM model (Figure 2).

Figure 2: ISM Model for Success Factors for First Generation

Entrepreneurs through Ecopreneurship


The model shows the success key factors for the first generation of entrepreneurs. Different levels were found as per their importance for ecopreneurship. The most important variable for ecopreneurship is eco innovation and long term sustainabilty, and technology development and environment. There is a positive and two-way correlation between economic innovation and economic growth; similar correlation exists between technology development and environment with economic value. All these four variables affect each other to a great extent. A green work business model would come up with the four variables stated above. The least important variables for ecopreneurship are social responsibility, and government and institutional support. But these two variables are strongly linked to modern drivers and environmentalism which again are correlated both the ways with Green Work Business Model.

Conclusion

A strong link is identified between entrepreneurialism and environmentalism. The field of Ecopreneurship is still in its infancy, but the number of ecopreneurs is growing. There is also a solid theoretical rationale for Ecopreneurship. Both the Schumpeterian and the Ecological Modernisation theories clearly explain why Ecopreneurship is one of the best solutions for environmental problems. Green businesses are models that can help show the way to increase productivity while reducing resource use in a manner that is harmonious with human health, and the sustainability of non-human species as well. Green start-ups make it easier to ‘fix’environmental components and processes from the outset.

ReferencesSchaltegger, Stefan, A Framework for Ecopreneurship Leading Bioneers and

Environmental Managers to Ecopreneurship, Germany: University of Luneburg. Dixon, Sarah E.A., Anne Clifford, ‘Ecopreneurship – A New Approach to Managing

the Triple Bottom Line’, Journal of Organisational Change Management, vol. 20, no. 3, 2007.

Bennett, S., Ecopreneurship: The Complete Guide to Small Business Opportunities from the Environmental Revolution.

Berle, G., The Green Entrepreneur: Business Opportunities that can Save the Earth and Make You Money, Blue Ridge Summit, PA: Liberty Hall Press, 1991.


Talwar, Venus and Kavita Puri, ‘Ecopreneurs: The New Trend for Entrepreneurs’, IJRFM, vol. 3, no. 2 (ISSN 2231-5985), March 2013.

Anderson, Alistair R., ‘Cultivating the Garden of Eden: Environmental Entrepreneuring’, Journal of Organisational Change Management, vol. 11, no. 2, 1998.

Ray, Dennis M., Domnique v. Turpin, ‘Factors Influencing Japanese Entrepreneurs in High-Technology Ventures’.

Moghavemmi S., ‘The Entrepreneur’s Perception on Information Technology Innovation Adoption: An Empirical Analysis of the Role of Precipitating Events on Usage Behaviour’.

Schaltegger, Stefan and Marcus Wagner, ‘Sustainable entrepreneurship and sustainability innovation: categories and interactions’.

Schaper, Michael, ‘Understanding the Green Entrepreneur’.Isaak, R. ‘Green Logic: Ecopreneurship, Theory and Ethics’, Greenleaf Publishing;

WestHartford, CT: Kumarian Press), 1998. , ‘The Making of the Ecopreneur’, Pace University.

Developing Family Business Members as Family Business Managers – With Reference to the Role of Education and Training on Development of Family Managed Businesses in India

Hasina Sayed*, Rakhi Sharma* and Ratnesh Desai**

ABSTRACT

This article examines the cause and effect relationship between education and job related training with development of Family Managed Business.

Family Managed Businesses have been recognised for the contribution they have made and will continue to make towards the growth of the Indian economy. There is greater realisation of the need for planning the induction of new family members bearing cognisance of their individual aspirations, ability and knowledge, and the perceived impact on the business.

Findings indicate that the influence of education and training on development of Family Managed Business was noticeable, and reflected in the expansion and diversification of Family Managed Businesses in India, and that family members take longer to come into business after professional education and sometimes working in other firms.

Keywords: Family Managed Business, Education, Training, Development, Related Business Areas, Unrelated Business Areas

* Department of Commerce, Jai Hind College, Churchgate, Mumbai

** Evolve (Entrepreneur), Evolve. Name of Start up-Evolve.



Introduction

The Indian and the world economy are dominated by family owned businesses, which generate most of the economic output and wealth of a nation.

According to Boston Consulting Group, ‘more than 30% of all companies worldwide are Family Managed Businesses accounting for sales in excess of $1 billion.’

India is home to the largest number of family businesses, accounting for 67 per cent of all listed companies, a 2011 Credit Suisse study has said. ‘A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments towards the business overall well-being.’

Family businesses are the lifeline of India’s economy and the rest of the business community are largely dependent on them. Non-family corporations collaborate with family firms on various levels. While family owned companies are often strong competitors, they have vulnerabilities that need to be managed, and are often accused of lack of professionalism and mismanagement. A vast majority of family managed businesses (FMBs) experience difficulties like moving from one person general management to an institutionalised competence that results into competitive fitness across generations.

Significance of the Study

Family Managed Businesses in India view the need to continually innovate as a key challenge. Innovation is critical to maintain their relevance in the changing business environment. In order to innovate, they need to combine their new strategies to broader business goals.

Technological advancements are redefining business models, strategies and the changing industry dynamics. Family businesses are acutely aware of the risks their business face if they are unable to either adapt to the new technological advancements or bring in new technologies to enhance the quality of products and services.

The challenge before the owner of the family business is to develop the next generation leaders who have the wisdom to understand the


complexities of the globalised world, have sound knowledge of several fields that is essential to successfully manage a business, and also have acumen to manage competition for the benefit of all stakeholders. Companies feel the need to constantly keep up with the fast paced strides technology is taking in turning the older business models obsolete, and therefore the need to invest time and resources in getting their successors educated and trained in their family business.

Despite not being suitably qualified in education, experience or understanding the business, offspring may ascend to leadership positions because of the family connection, increasing the chances that business will fail.

This study will help to measure the cause and effect relationship of education and business related training on the development of the FMB in related and unrelated business areas.

This study would also serve as informative experiences guiding the founders of the family business to make sustained and conscious efforts to increase physical and cognitive diversity among leaders based on education, industry experience and training, while retaining the tradition, culture and history of the family business which is inspiring and enabling.

The researchers are sure that if the findings and suggestions given are examined along with adequate emphasis and effort to promote professionalism in FMBs through education and training, this will lead to their increased competitiveness and development.


• Todeterminewhetherformal/professionaleducationisnecessaryforthe success of FMBs in related and unrelated business areas in India.

• To highlight the benefits of business related training on thedevelopment of FMBs in India.

• Todevelopusefulnessofthisstudytothefounders/ownersoffamilybusinesses who wish to bring professionalism in the management while retaining the family culture and business ethos.


Scope of the Study

It is viewed that FMBs are the real engines for economic growth of a nation, and education and job skills are instrumental in equipping FMB owners to handle succession planning, bringing in professionalism and better awareness of governance practices.

Educational opportunity will prove a major stepping stone in the career path of young leaders of family businesses who want to upscale the existing operations. With Indian business families turning their ventures into huge global firms, exposure to high quality business processes and management training (studies) will therefore be extremely useful for the Indian Family Businesses going forward.

The study aims at understanding the efficiency of linkages between educational qualification and professional job related training to the expansion and diversification of FMBs in India.

The dogging of their personal variables (education and training) in relation to their entrepreneurial performance would help in defining certain important business traits, which in turn could be improved upon in the present day family business owners or can be transmitted to new and prospective ones through teaching and training media.

The identification of these constraints at entrepreneurial level and its relationship with the development of their family business would help find remedial measures and lead to overall development of FMBs in India.

Hypothesis

Professional qualification and job related training does not play a significant role in the development of FMBs in the related business areas only.

Research Methodology

Primary Data

Thestudywaspurposivelycarriedoutonowners/foundersof70micro-,small- and medium-sized FMB units in India.


A structured blend of open and close-ended questionnaire format was used to collect data from the respondents which was analysed by the administration of the Chi-Square Test.

The questionnaire basically covers five key characteristics which are further classified under various categories:

1. Type of Enterprise–Micro, small or medium, based on the investment.

2. Number of family members involved in the business, with their qualification, training, and the year of joining the business.

3. Information regarding the business development where the options are classified into related areas and unrelated areas. Related areas refer to the development of the existing business in the form of expansion, i.e. open another location, target other markets, expand to internet, etc. Unrelated areas refer to development of the business in the form of diversification, i.e. acquire another business, export other’s products and so on. The respondents were asked to provide information since the inception of the family business, year of business development if any, and the family members joining the business.

4. Information regarding the role of education, formal business training and skill-related training also collected, tabulated and analysed.

The responses to the questions were administered to the Chi-Square Test by the researchers and analysis derived. Wherever possible, graphical presentation techniques were also considered to focus on the on-going study.

Secondary Data

Relevant secondary data is also considered in the form of references from books, articles in journals, periodicals and magazines. The use of online resources was also made to seek current relevant information required in the research study.

Sampling Frame

An attempt is made to develop a sampling frame in which simple co-relations are established which are shown in Figure 1.


Independent Variables Dependent Variables

1. Educational qualification. 1. Expansion of business

2. Business related training ————→ 2. Diversification of business

3. Professionalism in Business

4. Managerial ability

Figure 1

Limitation of the StudyThe open ended questionnaire format required some subjective interpretations by the researchers.

Data Analysis and Interpretation

Quantum of Turnover of the Respondents of the Study Interpretation

The pie-chart in Figure 2 indicates that amongst 70 respondent companies, 27.6 per cent belong to manufacturing sector, 34.5 per cent to trading sector, 24.1 per cent to service sector, 6.89 per cent to manufacturing and trading sector, and again 6.89 per cent identified themselves to other categories. (The figures have been rounded off to the second decimal which give an error of −0.02 per cent.)

Type of Enterprise (%)

Figure 2: Type of Enterprise


Number of Employees

Interpretation: Table 1 indicates that there are 26 companies that have 0–10 employees, eight companies that have 11–20 employees, four companies that have 21–30 employees, seven companies that have 31–40 employees, six companies that have 41–50 employees, two companies that have 51–60 employees, three companies that have 61–70 employees, again three companies that have 71–75 employees, and six companies have 75 and above employees.

Table 1: Number of EmployeesNumber o f Employees

0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-75 75 and Above

Total

Number o f Companies

26 8 4 7 6 2 3 3 6 70

Importance of Education

Interpretation: The pie chart in Figure 3 indicates that amongst the 70 respondent FMBs there are 62 FMB which consider education important for business growth and replied ‘Yes’, five companies which replied ‘No’ and three companies were uncertain and responded ‘Unsure’.

Is Education Important for Business Growth?(Responses of companies out of 70)

Figure 3: Importance of Education

Interpretation: The pie chart in Figure 4 indicates that amongst the 70 respondent FMBs there are 61 FMBs which consider that education does improve management and replied ‘Yes’, 8 FMBs which replied ‘No’, and 1 FMB was uncertain and responded ‘Unsure’.


Has Education Improved Management? (Responsesof Companies out of 70)

61

8

1

Has Education Improved Management? (Responses of Companies out of 70)

Yes

No

Not Sure

Figure 4: Improvement of Management Through Education

Interpretation: The pie chart in Figure 5 indicates that amongst the 70 respondent FMBs there are 32 FMBs which consider that education ‘Moderately’ strengthens preparation as an entrepreneur, 36 FMBs which replied ‘Completely’, and 2 were uncertain and responded ‘Unsure’.

Does Education Add Strength to the Prepartion as an Entrepreneur? (Responses of Companies out of 70)

Figure 5: Role of Education in Preparing an Entrepreneur

Interpretation: The bar-diagram in Figure 6 indicates that amongst the 70 respondent FMBs there are 57 which consider only formal education is sufficient and replied ‘Yes’, 10 replied ‘No’, whereas 3 were uncertain and responded ‘Unsure’.


Responses Regarding Training and Education (Responses outof 70 Companies)

Figure 6: Training and Education

However, again, amongst the 70 respondents there are 35 who replied ‘Yes’ to have received business courses, 31 respondent which replied ‘No’, and 4 did not specify and hence categorised under ‘Unsure’.

Further, amongst the 70 respondent FMBs there are 63 FMBs which consider training as helpful in business growth and replied ‘Yes’, 3 FMBs which replied ‘No’ and 4 FMBs did not specify and hence categorised under ‘Unsure’.

Similarly, amongst the 70 respondent FMBs there are 61 FMBs which consider that training bridges gap between theory and empirical inquiry and replied ‘Yes’, 5 FMBs which replied ‘No’, and 4 FMBs did not specify and hence categorised under ‘Unsure’.

Interpretation: The pie chart in Figure 7 indicates that amongst the 70 respondent FMBs there are 60 FMBs which consider that skill related training helps in business growth and replied ‘Yes’, 6 FMBs which replied ‘No’, and 4 FMBs were uncertain and responded ‘Unsure’.

Does Skill Related Training Help Business Growth? (Responses out of 70 Companies)

Figure 7: Training and Business Growth


Interpretation: The pie chart in Figure 8 indicates that amongst the 70 respondent FMBs there are 37 FMBs which consider that education ‘Moderately’ develops confidence and ability to cope stress, 37 FMBs which replied ‘Completely’ and 1 FMB was uncertain and responded ‘Unsure’.

Does Education Develop Confidence and Ability to Cope Stress? (Responses of companies out of 70)

Figure 8: Education and Ability to Cope Stress

Framework of Analysis

In order to examine the relationship between professional qualification and job related training in the development of FMBs in related and unrelated areas, the Chi-Square test is applied. The Chi-Square value is calculated by adopting the following formula:

(O-E) ² χ² = SUM ———— E

With (r−1) (c−1) degrees of freedom

Where, O = Observed frequency

E = Expected frequency

Row Total × Column Total E = ——————————— Grand Total

c = Number of columns

r = Number of rows


Table 2 Related

Areas Unrelated

AreasBoth (Related and Unrelated Areas)

Total

Professional qualifications and job training received

18 7 20 45

Professional qualifications and job training not received

15 5 5 25

Total 33 12 25 70

Table 3O (Observed) E (Expected) O−E (O−E)² χ²

18 21.21428571 −3.214285714 10.33163 0.4870137 7.714285714 −0.714285714 0.510204 0.06613820 16.07142857 3.928571429 15.43367 0.96031715 11.78571429 3.214285714 10.33163 0.8766235 4.285714286 0.714285714 0.510204 0.1190485 8.928571429 −3.928571429 15.43367 1.728571 4.23771

χ² = 4.23771

χ² (0.05, 2) = 5.9991 (Table Value)

In this study, the hypothesis formulated was that the professional qualification and job related training does not play a significant role in the development of FMBs in the related business areas only.

The calculated value of Chi-Square was compared with the table value of Chi-Square for the given degrees of freedom at 5 per cent level of significance.

χ² (calculated value) is less than χ² (table value) − the hypothesis is accepted.

Findings of the Study1. As per the Chi-Square test, professional qualification and job related

training plays a significant role in the development of FMBs not only in related areas (expansion) but also in unrelated areas (diversification) of business.


2. The research findings prove that the percentage of family business owners venturing into development of their business in unrelated areas is significantly higher than those who have not received professional education and training.

3. As per the research analysis, it is proved that professional know-how and job training helps the family business owners to identify business opportunities in areas different from their existing business and makes them prepared to meet global challenges and competition.

4. On analysing the cause and effect relationship and the linkage between education and job related training with the development of FMB in India, it was found that despite diverse sectors including manufacturing, trading, services and others, there was a marked similarity in their approach towards earning education and receiving training for the development of their family businesses.

5. The sample respondents were of the thought that while education added strength to their preparation as an entrepreneur, developed confidence in them and broadened their horizon, it did not help in developing their sense of initiative, whereas training developed in them business acumen, enhanced management skills and created additional value to their family business.

Recommendations

Receiving professional education by the succeeding generation of FMB will increase the job preparedness of the entrepreneurs, create experiences in them that would enable development of insight needed to discover and create entrepreneurial opportunities and the expertise to successfully manage their own business and to take advantage of these opportunities, whereas job-related training will aid in furthering business professionalism, cultivate global thinking, and make existing successful business even more competitive.

Scope for Further Study

‘A good research is the one that can pave way for another research.’


This study opens up fresh areas of research such as:

• EntrepreneurshipEducation–itsneedforFMB

• Classroomlearningv/son-the-jobtrainingforfamilybusinessOwners

• Balancingpastandfuture–stayingtruetothecorevaluesofthefamilybusiness group

• Culturev/sProfessionalism–requirementsfordevelopmentofFMB.

• ThelimitedroleofwomeninFMB

Conclusion

It is desirable to come from learned, successful entrepreneurial parents, but it is also beneficial to gain work experience and adequate education. This scenario will substantially enhance the probability of success. So, many factors are unrelated to genetics and support the counter paradigm that ‘Entrepreneurs are often made, not born.’

ReferencesSwedberg, Richard, Entrepreneurship–The Social Science View. Oxford University

Press, 2000.Kumar, Nirmalya, India’s Global Powerhouses (How they are Taking on the World),

Boston, Massachusetts: Harvard Business Press, 2004.Kachaner, Stalk and Bloch, ‘What You can Learn from Family Business’, Harvard

Business Review, Nov. 2012.Malhotra, Naresh K. Marketing Research − An Applied Orientation, Pearson Education,

2004, pp. 75−7, 434−45.Berenson, Levine Krehbeil, Business Statistics − A First Course, Pearson Education,

2004, pp. 401−5.Garavan, Thomas N. and Barra O’Cinneide, ‘Entrepreneurship Education and

Training Programmes: A Review and Evaluation − Part 1’, Journal of European Industrial Training.

Sexton, D.L. and N.B. Bowman, ‘Entrepreneurship Education−Suggestions for Increasing Effectiveness’, Journal of Small Business Management, vol. 22, no. 2, April 1984.

Chakrabarty, S., ‘The Influence of National Culture and Institutional Voids on Family Ownership of Large Firms: A Country Level Empirical Study’. Journal of International Management, vol. 15, no. 1, 2009.


Sabharwal, Manish, The Entrepreneur, Network 18 Publishing, vol. 4, no. 11, July 2013, p. 18.

http://www.pwc.in/en_in/in/assets/pdfs/family-business-survey/family-business-survey-2013.pdf

http://articles.economictimes.indiatimes.com/2013-06-09/news/39834857_1_smes-workforce-small-and-medium-enterprisesSMEs employ close to 40% of India’s workforce, but contribute only 17% to GDP

http://www.rbi.org.in/scripts/FAQView.aspx?Id=84http://iveybusinessjournal.com/topics/strategy/three-strategies-for-achieving-and-

sustaining-growthhttp://www.encubeindia.com/downloads/indian_family_businesses.pdf

Using Morphological Analysis for Innovation and Resource and Development: An Invaluable Tool for Entrepreneurship

K. Gopalakrishnan* and V. Vijayalakshmi**

ABSTRACT

Innovation is a key value creator for organisations. It is perceived to be a key driver of growth (through introduction of new products and services) and efficiency (through process improvements) in organisations. In times of intense competition, an organisation’s success depends on its ability to continuously innovate faster and better. Morphological analysis is an invaluable tool for organisations to achieve breakthrough innovations and indulge in continuous research and development. Morphological analysis helps capture the ‘form’ and ‘structure’ of entities (both physical and conceptual) and serve multiple purposes. For an entrepreneur or a product manager, it facilitates new product development by highlighting gaps in existing products, thereby aiding in identifying new market opportunities. It can also be used as a learning tool by academicians/researchers to teach new concepts and identify research gaps. This paper introduces the basic concepts of Morphological Analysis, and elaborates the same through relevant examples. It is hoped that it would aid organisations and entrepreneurs to improve their competitive advantage by leveraging morphological tools.

* Cognizant Technology Solutions, Chennai** Department of Management Studies, Indian Institute of Technology Madras, Chennai



Keywords: Morphological Analysis, Entrepreneurship, Innovation, Research and Development

Introduction

The key to sustained competitive advantage for an organisation, in times of intense competition, is its ability to innovate continuously. Innovation not only helps organisations differentiate their products and services in the market place, but also acts as a key driver of growth for them. Innovation is commonly defined as the process through which a creative idea is implemented (in many cases, commercialised) for organisational benefit (Utterback and Habernathy, 1975). Today, many organisations have dedicated teams for Innovation, Research and Development (R&D), and New Product Development to ensure that they continuously develop and launch innovative products and services, thereby sustaining their competitive advantage. To this effect, organisations employ a variety of tools to aid innovation and R&D. Morphological Analysis (MA) is one such tool. The concept of MA was developed by Fritz Zwicky (1967, 1969) as a method for structuring and investigating the total set of relationships contained in multi-dimensional, non-quantifiable, problem complexes. Zwicky applied this method to diverse fields, such as the classification of astrophysical objects, jet and rocket propulsion systems, and legal aspects of space travel. He also founded the Society for Morphological Research. Since then MA has been applied to several fields of enquiry by researchers including policy analysis, future studies, and organisational studies (Ritchey, 2002). MA is a method for rigorously structuring and investigating the internal properties of inherently non-quantifiable problems which contain any number of disparate parameters. It compels practitioners to examine a number of configurations and solutions (Ritchey, 2002).

The term ‘morphology’ comes from the Greek word morphe meaning shape or form. Thus, the general definition of morphology is the ‘study of form or pattern’, i.e. the shape and arrangement of parts of an object, and how these relate to create a whole. Objects can be either physical (organisms, products, etc.) or conceptual (ideas, concepts, linguistic forms, etc.). MA has been used heavily in science based subjects such as botany, geology, and zoology. It was Zwicky (1967) who first proposed a general


model of morphology and advocated the use of MA to analyse abstract ideas, concepts and phenomena. In this paper, the strengths of MA is presented through some examples, and it is hoped that it will motivate entrepreneurs, researchers, academicians and students to utilise MA as a tool for innovation and learning.

Morphological Analysis

As mentioned earlier, morphological frameworks are powerful in representing the anatomies of entities – both physical and conceptual. Morphological frameworks consist of two components: (1) the dimensions of the entities; and (2) the options of the dimensions. These dimensions and options completely represent the form and structure of the entities. The steps to be followed in developing a morphological framework as recommend by Zwicky (1967) are underlined in Table 1. These steps are more relevant for organisations wanting to use MA for problem solving or developing new products/services.

Table 1: Steps in Morphological AnalysisStep TasksOne Formulate the problem to be solved (e.g. designing a new product or feature)Two Identify all the parameters/dimensions and corresponding variants/options

of the key entity in focusThree Construct the morphological framework by mapping the dimensions (and

sub-dimensions if any) and the corresponding options of the entityFour Scrutinise and evaluate all the options available in the morphological

frameworkFive Choose the best option that solves the problem that was formulated in

step one

The power of MA is explained by presenting morphological frameworks for toothbrush, pen, and innovation in the following sections.

Morphology of a Toothbrush

As a first example, the MA of a toothbrush is discussed. The basic dimensions of toothbrush include body, neck, head, and bristles (Figure 1). Based on this, a basic morphological framework of a toothbrush is presented in Table 2. The dimensions and corresponding options of the


various dimensions of a toothbrush are elaborated in the framework. It should be noted that the list of dimensions and options presented in the framework is only indicative and not exhaustive. Every toothbrush that is available in the market can be placed along a dimension (or dimensions) of the morphological framework. For a layperson, the morphological framework will provide a bird’s eye view of the available toothbrush options, and for a practitioner it will be a basis for designing a new toothbrush that is currently not available in the market.

Figure 1: Dimensions of a Toothbrush

The toothbrush that is being daily used could be square in shape, made of plastic, having a bent neck with a round head, and having nylon bristles arranged in three rows. Similarly, every toothbrush that is there in the market can be mapped to this framework. In a New Product Development exercise, teams can use this framework to identify new combinations of features that are presently absent in toothbrushes.

Table 2: A Basic Morphological Framework of ToothbrushDimension OptionsBody Length Different Lengths

Width Different WidthsThickness Different Thickness

Shape Square Circular Hexagonal RectangleMaterial Plastic Wood Steel Aluminium

Grip Rubber Soft Squishy RibbedNeck Length/Width Different Lengths/Widths

Flexibility Flexible in one direction

Rigid Other modifications

Profile Straight BentHead Number One Two

Length/Width Different Lengths/WidthsCross section Different cross sections

Shape Round Diamond Others


Bristles Material Nylon Animal Hair OthersTexture Extra Soft Soft Medium Hard

Arrangement In three rows OthersLength/Width Different Lengths/Widths

Morphology of a Pen

To further elucidate the concept of MA, a basic morphological framework of a pen (that we use commonly) is presented in Table 3. It can be observed that the major dimensions of a pen, namely, Body, Cap, Refill, and Nib are identified as key dimensions. Further, sub-dimensions such as shape, material, colour, etc., are also identified, and the variants/options are explicated in the framework.

Table 3: A Basic Morphological Framework of PenDimension Options

BodyShape Cylindrical Hexagonal Square Cube

Material Steel Plastic Rubber WoodColour Black White Grey

CapType No Cap Presence of Cap

Material Plastic Steel Rubber Wood

Refill

Material Plastic Steel RubberInk-material Gel LiquidInk-colour Blue Black Red

Type Cartridge Jotter TubeNib Roller Fine-tip Diamond

As explained in the case of a toothbrush, any pen available in the market can be mapped uniquely against the morphological framework presented above. For instance, the pen being used could be of a cylindrical shape, made of steel, grey in colour, having a cap made of steel and gel ink with a roller type of nib. When an entrepreneur looks at this, he/she could design a new pen which has a hexagonal shape and is made of wood. There could be several such combinations of dimensions/options that is currently not available in the market, but would meet customer needs. Thus, the framework would serve as a good starting point to initiate New Product Research and Development.


Morphology of Innovation

To explain how MA can be applied even to abstract concepts or ideas, a basic morphological framework of Innovation is presented in Table 4. The basic idea here is to develop morphology of Innovation. Thus, the scope is restricted to the concept or idea of Innovation. Based on literature (Gopalakrishnan and Ganesh, 2003) and experience, the key dimensions of innovation, namely, types, stages, modes, participants, strategies, and outcomes are identified, and the options corresponding to these dimensions are also listed (see Table 4). The framework is explained in detail below. This framework could be used by researchers to understand the landscape of research studies conducted in the area of Innovation. For example, researchers can map every research paper that has been published in the area of Innovation onto this framework and identify existing research gaps. Academicians could use this to teach the concept of Innovation while organisations can devise Innovation strategies based on the framework. However, it has to be noted that this framework is not exhaustive and has scope to be developed further.

Types

Innovations are generally classified into two types, product and process innovation (Utterback and Abernathy, 1975). However, Pavitt (1990) quotes Schumpeter’s view of Innovation, which includes new forms of organisation, new markets and new sources of raw materials. Here, we classify innovations into three types:

• Product (includes Services)–Microsoft introducing Windows XP software in the US market; A logistics company offering on-line tracking of goods.

• Process–Increase in the capacity utilisation of a power plant; Reductions in customer turn-around time in a bank.

• Structural–Changes in team structures within an organisation; Changes in the manner an organisation structures its market.


Table 4: A Basic Morphological Framework of InnovationDimension Options

Types Product Process StructuralContinuous/Incremental Radical/Breakthrough/Disruptive

Stages Ideation Selection Develop-ment

Implemen-tation

Dissemina-tion

Modes Concentrated DistributedParticipants Organization Customers Suppliers

and PartnersEducation and R&D Institutions

Competitors

Strategies Outsourced Self-ManagedOutcomes Tangible Patents, Products, Processes, etc.

Intangible Frameworks, Architecture, Brand, etc.Context New Product

DevelopmentTraining and Development

Customer Support Operations

Innovations are also classified as:

• Continuous (or, incremental), i.e. step-by-step improvements – Introduction of new versions of existing software.

• Discontinuous (or radical), i.e. something radically new – Introduction of a totally new software (e.g. introduction of the LINUX operating system).

Stages

Innovation processes in organisations go through different stages starting from the generation of an idea, and ending in commercialisation (in the case of product innovations) or implementation (in the case of process and structural innovations). The first stage in the innovation process is the creation of a suitable environment for generation of new ideas. Only ‘promising’ ideas are chosen for further development. Managers allocate resources for the growth of these chosen ideas. After an idea is sufficiently developed, it can be taken to the market. When a creative idea is implemented it transforms into an Innovation. The next stage is the diffusion of knowledge about this Innovation within the organisational boundaries. Thus, Innovation processes go through the stages of (idea) generation, selection, development, implementation (or commercialisation) and dissemination (or diffusion).


Modes

Innovation processes can either be:• Concentrated–The task is allocated to a small team and the whole

process takes place within a small unit (say, the R&D division or a Strategic Business Unit).

• Distributed–Small teams that are distributed across the spatial units of an organisation work on the same or different aspects of the Innovation.

The choice of the mode of generation will depend primarily on the type of innovation, the infrastructure, and knowledge requirements.

Participants

Innovation processes are increasingly becoming collaborative. Now, Innovation is not solely an organisational process where only employees belonging to the R&D unit of an organisation contribute. It has evolved to include multi-disciplinary teams that make it an organisation-wide process. The recent trend is ‘Collaborative Innovation’ where organisations involve their customers, suppliers and partners, educational and research institutions, and sometimes even competitors, in the Innovation process.

Strategy

There are two broad innovation strategies:• Self-managed–where the whole Innovation process is managed within

an organisation, utilising its own resources.• Outsourced–adopted mainly when an organisation does not possess

the necessary infrastructure, resources or competence, or wishes to focus on its core competence.

Outcomes

The main outcomes of Innovation are new products, processes or organisational structures. Innovation also generates knowledge assets–both tangible (like products, patents, processes, design, etc.) and intangible (like new frameworks, architectures, competencies, brand image, etc.).


Context

Lastly, the context in which Innovation takes place within an organisation could be: (1) New Product Development; (2) Training and Development; (3) Customer Support; or (4) Core Operations.

Conclusions

The intention of this paper is to introduce and emphasise the effectiveness of using tools such as MA to support innovation and R&D in organisations. The power of MA was revealed through the examples of morphological frameworks developed for a toothbrush, pen and innovation. From an academic and research perspective it is hoped that the use of MA would provide fresh insights into their disciplines of inquiry, and make the teaching-learning process more interesting. From a practitioner’s perspective, MA would serve as a basis for identifying new products and market opportunities, and designing new systems.

ReferencesGopalakrishnan, K. and L.S. Ganesh, ‘The Influence of Knowledge Management

on Organisational Innovation’, pp. 82–88, in D. K. Banwet, S.S. Yadav and K. Momaya, eds., Management of R&D in the New Millennium, New Delhi: Macmillan, 2003.

Pavitt K., ‘What We Know about the Strategic Management of Technology’, California Management Review, Spring, 1990, pp. 17-26.

Ritchey, T., ‘General Morphological Analysis – A General Method for Non-Quantified Modelling’, Swedish Morphological Society, 2002.

Utterback, J. and W. Habernathy, ‘A Dynamic Model of Process and Product Innovation’, Omega, vol. 3, 1975, pp. 639–56.

Zack, M. H., ‘Developing a Knowledge Strategy’, California Management Review, vol. 41, no. 3, 1999, pp. 125–45.

Zwicky, F. and A. Wilson, New Methods of Thought and Procedure: Contributions to the Symposium on Methodologies, Berlin: Springer, 1967.

Zwicky, F., Discovery, Invention, Research – Through the Morphological Approach, Toronto: The Macmillan Company, 1969.

Commodity and Derivatives Market for Agricultural Development

Mohammed Jamshed* and Shamim Ahmad*

ABSTRACT

India is an agrarian economy. Leading the economy to the desired state of progress depends heavily on utilising our core strength in agriculture to meet the competitive world challenges. Commodity market has crucial implications and affects agricultural productivity, food security and the socio-economic development of the country. The derivative market platform can stimulate a two way process where the market creates demand and vice versa in a global context. The present study explores the link of the production capacity of India with the structure of the Indian commodity market and share of agriculture in the exchange-based commodity market. An in-depth analysis of the Indian agricultural market is undertaken from the world perspective, considering the Global Food Security Index and Network Readiness Index. The study examines the environmental changes and regulatory reform for integration of the rural and urban commodity market, recommends innovative steps in commodity exchanges with an accountable and transparent trade, and proposes the steps to strengthen the rural participation in the light of available inventory and warehousing. A prerequisite to participatory and transparent regulatory mechanism, that acts with a pro-active, focused, flexible and dynamic approach, is to manage the risks of failure and adopt policies by concord in the complexities of the market, and involve

* Department of Agricultural Economics & Business Management, Aligarh Muslim University, Aligarh, (UP)



market participants in decision making. Nurturing vigorously the market automatically enforces cultivation of demand and prosperity of the participants. It is a trajectory thought process against a half-hearted and pessimistic approach to revamp a meandered economy. Promoting inclusive growth, sustaining food security and boosting rural incomes in the country is intrinsically linked to a growth in the agriculture sector which can be leveraged by an efficient commodity market.

Keywords: Commodity Derivative Market, Commodity Exchanges, Regulating Authorities, Agricultural Development

IntroductionAgriculture provides life to everyone in the form of food and fiber. It provides earning and income to producers, processors, intermediaries, exporters, industries and government by one way or the other. Agriculture is, in fact, the heart of our economy. The commodity market is linking our agriculture with demand. A thousand years old existence of commodity future and market operation as explained by ‘Kautilya’ is one of the oldest commodity markets of the world (Kevin 2010). India is among the top 10 producers in the world for rice, buffalo milk, wheat, cow milk, fresh vegetables, sugarcane, potatoes, groundnut, peppermint and buffalo meat (Nageshwara and Rao, 2009). The liberalisation has given a way to challenge the world through the core strength of Indian agrarian economy. The Indian commodity market has witnessed regulation and de-regulation since inception. Even after a number of committees and the respective recommendations the commodity market is struggling to get a practical liberalisation. The UNCTAD and the World Bank’s joint Mission Report ‘India: Managing Price Risk in India’s Liberalise Agriculture: Can Futures Market Help?’ (1996) highlighted the role of future markets as market-based instruments for managing risks, and suggested the strengthening of institutional capacity of the regulator and the exchanges for efficient performance of these markets. Another major policy statement, the National Agricultural Policy, 2000, also expressed support for commodity futures. The Expert Committee on Strengthening and Developing Agricultural marketing (Guru Committee, 2001) emphasised the need


for and role of future trading in price risk management and in marketing of agricultural produce.

Problem Statement

Leveraging the agriculture sector by efficient commodity markets is a real challenge before us. The existence of a well structured, widely dispersed (commodity, as well as region wise), integrated, transparent, participatory and properly regulated commodity and derivative markets is inevitable. The present state, structure, functioning and regulatory system are all indicating deficiencies and call for smart, speedy and pragmatic adjustments at the regulatory, as well as operational levels of commodity markets. In spite of the huge potential capacity in the quality production of many agricultural commodities, the country is ranked at the bottom low in terms of the Global Food Security Index (GFSI). In fact, the missing market linkage in our agriculture is the matter of concern for us, and the smooth functioning of the commodity markets offer a solution to this problem. But our commodity markets as on now are not ready to shoulder this responsibility. A reform is needed in them. The whole scenario, present status, shortcomings and the desired adjustments as desired in the commodity market are indicated area-wise in the following paragraphs.

The Scenario

The story of the Indian agricultural commodity market is totally different and deviated from the global standards. India is among the world’s five largest producers of meat and livestock with one of the fastest growth rate. India was ranked among the world’s largest producers of most of the agricultural items including some cash crops such as tobacco, coffee and cotton in 2012 (Singh at el., 2013). The challenges of irrigation, roads, storage, cultivation land, poor electricity, finance and transportation, etc., are culminating poverty, suicide and urbanisation among the agriculture population. The solution lies in developing agriculture to generate value for the global population, and linking it with the markets. The commodity exchange of India, which ranks among the top 10 in the global commodity bourses has the capacity to do it.


Figure 1 represents proportionate weight of India’s production of the world production of 15 top commodities moving proportionately. The trend shows the consistency in the Indian agricultural production year-on-year in line with world commodity production.

Figure 1: India’s Weightage of World Commodity Production

Structure and Regulation

The agricultural commodity market is divided into exchange traded and non-exchange traded types (Figure 2). The Indian agricultural commodity market has a widespread network across 28000 small and large mandis of which 7,557 are regulated under the respective state APMC Acts (The Hindu, Business Line, 27 October 2013).

The commodity market is regulated by Forward Market Commission (FMC) under the Department of Economic Affairs, Ministry of Finance. There are Forward Contracts (Regulation) Act, 1952 and Forward Contracts (Regulation) Rules, 1954 empowering the FMC. The non-exchange traded commodity market is regulated through state level Agriculture Produce Marketing Committees (APMC) Act, Department of Agriculture and Cooperation, Ministry of Agriculture. Apart from the APMC Act, activities of market functionaries are regulated by several other legal instruments promulgated by the Central government and the States. These laws and orders cover different aspects or commodities in the country or a certain state.


Figure 2: Structure of Indian Commodity Market

Present Status of Derivative Market

There are six national and eleven regional exchanges in India participating in commodity trade (FMC, 2014). There are 113 commodities notified for trade under Section 15 of the Forward Contracts (Regulation) Act [FC (R) Act] 1952. The numbers of traded commodities are 45 in all the exchanges during 2013–14. The total number of agricultural commodities in the approved list is approximately 90 which includes food grains and pulses, oil seeds and oil, spices, fibers and manufactures, and other commodities. There were not more than 34 agricultural commodities traded on the exchange platform during 2013–14. The total traded value of these agricultural commodities is less than 15 per cent of the total commodity traded during 2013–14 even after a huge decline in commodity volume. The actual contribution of agricultural commodities’ trade was just 11 per cent last year. The average daily traded value of agricultural commodities is less than Rs. 5,000 crore as against Rs. 29,000 crore for non-agricultural commodities.

Table 1: Comparison of Agricultural Commodities if Agricultural Commodities VS All Commodities

Trade Summary Value in Rs. Crores

1st Jan to 31st Jan 2013–14 2012–13 % ChangeTotal value of trade in agri commodities 1,51,989 1,63,308.9 −6.93159Cumulative value of trade in agri commodities

25,32,006 36,71,257 −31.0316

Total value of all commodities trade 6,56,301.8 14,55,131 −54.8974Cumulative value of all commodities trade 1,74,32,027 2,80,69,569 −37.8971Source: Website of respective exchanges.


World Commodity Market Benchmark

In the global perspective, commodity market is utilised in a broader range to stimulate trade practices of the commodity sector. It has been serving the purposes of market creation, market access, stimulating regional integration, facilitating the provision of finance, price discovery, price transparency, price risk management, reducing counterparty risk, infrastructure enhancement, quality assurance or upgrading, and uplifting export driven commodity economy. This may be through the use of instruments other than futures, options, swaps, spot or cash trade for immediate delivery, forward contracts on warehouse receipts, the trade of farmers repurchase agreements, or ‘repos’. Alternatively, the focus is to evolve a system and process on facilitation activities rather than just providing a trading environment. We need to mention here two of the impact factor Indexes which show India’s global capacity or ranking in addressing the domestic commodity market challenges, namely:

Global Food Security Index

India stands seventieth in the ranking of 107 countries’ indexes (Figure 3). The three dimensional analysis reflects shrinkage and inefficiency in the infrastructural investment, supply chain, quality food and per head production capacity of the country. There are eighteen variables under three categories suggesting India in the bottom ranking category in the Global Agricultural Food as mentioned in the pyramid (The Economist, 2013). 68 per cent of more than 120 crore people living on less than $2 a day are below poverty line (GFSI, 2013; Venu and Rukmini, 2013).

Figure 3: India’s Position in GFSI

Moreover about half of the country’s populations are from the smallholder farming community, who need a favourable market to survive the resource


constrained agricultural sector. The emphasis is on building a sustainable structure to garner the deprived part of rural India.

Network Readiness Index

The revolutionary liberalised economy pioneered the digitalised market structure as an emboldened move to carve the agrarian economy into the global standard. The NRI aims to measure the ability of countries to leverage information and communication technologies (ICTs) for improved competitiveness and wellbeing (Osorio et al., 2013). NRI studies 54 individual variables based on the 10 pillars’ index emphasising the environment as a key driver for its impact on the countries’ economy and society. The improvement in the environment is based on the political and regulatory changes along with a business and innovation roadmap. India stands critical on the NRI Index in comparison to the rest of the world. The scores are measured on a scale of 1–7 from best to worst performing economies and appearing from dark green to red, respectively in Figure 4. On the accumulation of these scores India is under orange color on the map in the graph below with 3.88 scores. The economies with less than 3.3 score are treated as worst economies with red color. The performance and rating of the commodity market can be judged by these global standards. A real time adjustment in the functioning may be brought to effect by an ICT (Information and Communication Technology) platform.

Figure 4: Global NRI Maping with Scores


Use of ICT Platform: A Reform Driver

Information and Communication Technologies (ICTs) have a demonstrably positive effect on income growth in countries (Roller and Waverman, 2001; Waverman, Meschi and Fuss, 2005). In rural areas, ICT can raise incomes by increasing agricultural productivity (Lio and Liu 2006). Current limited evidence from individual farmers and fishermen in India supports the conclusion that ICTs improve incomes and quality of life among the rural poor (Goyal, 2010; Jensen, 2007). ICT delivers a smart, speedy, skilful, scalable and structured commodity and derivative market to build a road map for a developed India which could be globally acknowledged. The application of ICT platform for expansion of market, ensuring presence in the remote areas, and improving productivity will positively impact the quality of life and income among the agricultural participants. Despite the scarcity of evidence to support this notion (Forestier, Grace and Kenny, 2002), there is need of a broad policy initiative to ensure the acceptability of ICT in all areas of agricultural economy. Promoting inclusive growth, sustaining food security, and boosting rural incomes in the country is intrinsically linked to a growth in the agriculture sector which can be leveraged by an efficient commodity market.

The Global Information Technology report analyses the driver and impact of ICT on the economy, allowing the countries to measure their technology. The NRI report measures the ICT infrastructure, the cost of access in these infrastructures, and the presence of necessary skills to ensure its optimal use. The uptake and use of ICT at the government, business and individual levels, the business innovation environment, regulatory framework, and finally the economic and social viability are the factors to make this happen.

Analysis and Strategies

The analysis reveals the scope of policy adjustments and reform guided by the global standards and expectations. India has undoubtedly a potential to lead the world in agriculture by 2050. The focus on the gray areas in the efficient functioning of supply chain and commodity markets is a pre-requisite to a prosperous and dominant agrarian economy. But it needs a clear vision in the domestic scenario and pitfalls, and ways


to overcome them. The study finds a dearth of such measures and recommends measures to resolve the crises. In specific terms we need to target the following:

• The integration of the capacity of production or linking the farm based production with the digitalised market.

• The supply chain efficiency should lead to reduce wastages of commodity to increase the remuneration to the producer, as well as trader.

• Having Virtual Integrated Commodity market inclination towards the producer-centric products to attract need based participation. It will overcome the problems of inbuilt shriveling commodity exchanges and weak participation, and strengthen them for achieving the actual sense of global standards.

• To organise rural markets and provide a well-connected uniform trading platform that encourages a healthy competitive environment among producer community.

• The articulation of the agricultural service sector to nurture entrepreneurship and innovative business structure.

A resourceful commodity market will lead to strengthening of the environment, and create a prosperous economy and society. The achievement of global competitive commodity market needs process based involvement of the participating stakeholders. The micro and macro factors indicate that the active resolution is much needed to provide oxygen to the Indian commodity and derivative market. The analysis recommends the creation of a congenial environment to inculcate an inclusive growth orientation in the commodity market of global standard. The achievement depends on a socially and economically healthy commodity market mechanism. The political and regulatory practices are the means to provide such a system. The targeted regulatory reforms can only change the rule of the game and the face of agriculture in the country.

Conclusion

The amelioration of national commodity market demands an orientation and objective driven global perspective. The results may be witnessed


only by the empowerment and capacity building of the Commodity and Derivative Market Authority. The shrinkage in volume and less attractive state for the participant needs an urgent and thorough investigation. The market regulating authority is presently under the ambit of the Ministry of Finance. The huge commodity market which is not on the technology interface operationally works under the Ministry of Agriculture. The loss of direction is reflected by this also. The facilitation of a transparent, fast, proactive, equipped and scalable market is a concern for the whole nation. The three directional regulatory reforms are postulated as given below:

• Structural Reform: It emphasises decollectivisation of agriculture and market, integration of future and spot market on a single window, compulsory digital transactions, empowerment of entrepreneurs, one regulation for all mandi/APMC and boards.

• Process Reform: ICT based yard/mandi, as well as settlement and clearance, market driven facilitation and assistance to cover physical delivery of commodities, consolidate multi-legal Instrumentc or acts under one act, rational goods and service tax.

• Behavioural Reform: Opening up of Foreign Investment, ICT based monitoring linked with trading work station of mandi/ APMC/ trader/ broker, participatory and responsive way of handling.

In a nutshell, we can conclude that the current role of FMC is insufficient to cover the dynamism of an agrarian economy in the new liberalised world. The authoritative and participation style, substance, and support in the modern ICT driven world need some vital readjustments and revision in approach.

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Creating Social Entrepreneurship by Design: Bamboo Product Success with Involvement of Community Groups

Nachiket Thakur and B.V. Sangvikar

ABSTRACT

World economy is growing at a phenomenal pace. After the IT revolution, ‘Design’ has caught the imagination of the world. Globally the ‘Design’ based economy has grown multifold. It has impacted the social structure of the global society. India is seeing a paradigm shift owing to this global trend. Indian design talent is being increasingly recognised globally. A good product design is created in a highly complex process which follows a pattern, and is divided into various phases or development steps. The Design Process forms an integral part of the evolution of a good designed product.

I-CAN Design is a design process conceptualised and formulated by this author for evolving any product design. Inspiration, Conceptualisation, Adaption and Nurture are the four pillars of this design process. Each phase is subdivided into activities which help in coming out with the optimised solution for the given product problem. I-CAN Design suits product development for any industry or field. This universal design thinking approach optimises the development time and the intended solution.

* Department of Business Administration, D.D.U. Gorakhpur University, Gorakhpur, Uttar Pradesh

** Department of Management Studies, Vishwakarma Building, Shaheed Jeet Singh Marg, Indian Institute of Technology, Delhi.



I-CAN Design was deployed in the development of bamboo products at Bamboo Masters, Pune in the state of Maharashtra, India. A team comprising designers, artisans, assemblers and marketing experts participated in this activity. The case study was a combination of experimental design and participant observation done by the author.

The research questions were:

1. Will ICAN Design Process be successful in a small cottage unit of bamboo products?

2. Will this process be profitable to the entrepreneur and will it improve the skills of the artisans in making bamboo products?

3. Will it improve the efficiency of the artisans?

4. Will it increase the earnings of the artisans and the profitability of the entrepreneur?

It was an action research in which the researcher formed a group with two others. Thus, it was also participatory, descriptive, and exploratory.

Terrabamboo pendant is a contemporary product for urban use, designed using a hand woven bamboo mat, hand crafted terra cotta (backed clay) and bamboo beads. Special focus was to deploy and promote the age old traditional skills of the rural craftsman in these two sustainable and easily accessible natural materials. The design process employed, manufacturing technique and the social participation ensured success for this bamboo product. Design became the key differentiator to establish a successful social entrepreneurship model based on traditional bamboo craft.

Keywords: I-CAN Design, Design Process, Terrabambu, Bamboo Mat, Modular, Sustainable, Bamboo Masters

Introduction

It has been established that Design Process is an integral part of the evolution of a good designed product. Such products lead to consumer satisfaction, and better sale and profitability of the enterprise.


This author had demonstrated from the qualitative and quantitative data that the I-CAN Design Process achieved a good success in respect of three products designed earlier. It has been demonstrated that the corporate leaders, product designers, marketing personnel and other stakeholders consider design as an important ingredient of the product success.

The present study attempted to find if the I-CAN Design Process can lead to similar results in a bamboo craft industry in the unorganised sector. This cottage industry has negligible capital investment and low working capital, and unskilled labour, and is without marketing and sales personnel in its employment.

Learning from the success of high technology and high worth products, the low tech and high skill-based industries, like craft, is destined to benefit the most. However, there are no studies to decide if this presumption is true. The present case study is an attempt to find out how the principles of design processes can be exploited for the benefit of the entrepreneur in the bamboo craft cottage unit, its workers, marketing and sales personnel, and ultimately the consumer.

Many institutions, like Bamboo Studio at IDC; the IIT, Mumbai; NID, Ahmadabad; Cane and Bamboo Centre, Guwahati; IPRITI, Bangalore; KONBAC, Kudal; and Bamboo Centre, Lavasa, Pune, have benefited by ‘Design’ for their bamboo products.

Objective of the Study

The Pune region has a cluster of automobile production centres. Each centre is a multi-crore high-tech modern organised industry. Each of these units has a large number of highly trained engineers and skilled workforce. Each is a capital-intensive activity. These centres deploy design processes that help the centres to be profitable, workers to earn good wages, and consumers to get impressive and well-designed vehicles.

The bamboo craft, on the other hand, is a cottage industry manned by untrained and unorganised artisans who were not exposed to product design processes. The industry is not a cost-intensive and high investment business activity.


Research Questions

The research questions were:

1. Will ICAN Design Process be successful in a small cottage unit of bamboo products?

2. Will this process be profitable to the entrepreneur and will it improve the skills of the artisans in making bamboo products?

3. Will it improve the efficiency of the artisans?

4. Will it increase the earnings of the artisans and the profitability of the entrepreneur?

Research Methods

Case Study with a Combination of Experimental Design and Action Research

This author is an industrial product designer trained at the Industrial Design Centre of the Indian Institute of Technology, Powai, Mumbai, and leads a team of product designers at the Mahindra Composites Ltd., Pimpri, Pune. He used the I-CAN Design Process to prove that design is essential for the success of products. He got involved in designing and developing products in bamboo using this process.

The study was planned as follows:

• The authorparticipated in this activity alongwithpeople from thebamboo community under an NGO, Bamboo Utilities, Research and Development (BURUD) at Hadapsar, on the eastern outskirts of Pune city from 2004.

• An independent brand was created as a business enterprise named‘Bamboo Masters’ which was spearheaded by the entrepreneur, Rajendra Sakpal.

• Activities were carried out under the team of ‘Bamboo Masters’ atevery stage of the development and marketing of the products. They were as follows:


1. Conceptualisation of a bamboo product 2. Market study for need assessment, profile of the potential consumer 3. Product design ideation 4. Production design, survey of the potential customers, 6. Packaging, marketing

Data Collection

I-CAN Design

Many practising designers, academicians and experts have come up with different design processes for the development of new products. ‘Design Thinking’ or ‘Design Process’ has been an integral part of many product successes. The experience of handling different design projects, analysing different types of design process, and this researcher’s understanding led to the evolution of a design process, which he calls I-CAN Design.

I-CAN Design, a Design Process was formulated for evolving any product design. I-CAN is an acronym of Inspiration, Conceptualisation, Adaption and Nurture that are the four pillars of this design process (Figure 1). Each phase is subdivided into activities which help in coming out with the optimised solution for the given product problem. I-CAN Design suits product development for any industry or field. This universal design thinking approach optimises the development time and the intended solution.

‘Design Thinking’ or ‘Design Process’ is a multi-disciplinary activity. Nobody can work in isolation. It has to be a team work. Every member of the team is equally important. Every individual in the design process has to be well equipped, passionate about his/her work and should have the confidence within. The philosophy of I-CAN Design is that the activity starts with the ‘individual’ who is an expert in a particular field. The input is pooled in for the common goal, and at the end that ‘individual’ is responsible for the delivery of the product aspect which the ‘individual’ is expert of. Thus, a group along with an individual’s identity works for the bigger and common goal of problem solving.


Figure 1: I-CAN Design Process Map

I-CAN Design Process – An Integral Part of the Development

The process for development of a bamboo product was initiated at ‘Bamboo Masters’, at Hadapsar, on the eastern outskirts of Pune, in Maharashtra, and has the following features:

1. Initiate it at the Start: Every member of the team was involved from May 2008

2. User-centred approach

The team adopted the ‘User Centred Approach’. It related to human behaviour, needs, and preferences to be given equal importance along with technology and business economics. This allowed the development team to differentiate between the needs and the wants of the user. It captured the unexpected insights and helped the team to collectively conceive a product which correctly reflects the aspiration of the user.


Fast Prototyping and Testing

The wheelbarrow of ideas was tried out in quick succession. The cycle of rapid prototype, experimentation, and re-modification were executed quickly. Small teams of ‘Bamboo Masters’ members were given sufficient freedom to make quick prototypes to test out the ideas which helped finalise the design quickly.

Expert Opinion

The design ecosystem was nurtured by seeking inputs from experts. This helped in understanding different materials, processes, and methods of creating the bamboo-based product.

Co-create

The team explored ways to work with several diversified inputs.

Case Study of Development of Terrabambu Pendant

The Bamboo Masters had already developed and sold bamboo products without deploying the ICAN Process. These were well-received, but the production, productivity and quality had limitations. It was also difficult to scale up the activities for replication and higher production volumes.

The following product variants were developed during this process (figure 2):

Figure 2 : Terrabambu Pendant


Product Explanation

The Terrabamboo pendant, an indoor lamp, is a contemporary product designed using a hand-woven bamboo mat, hand crafted terracotta (baked clay) and bamboo beads. Special focus was to deploy and promote the age-old traditional skills of the rural craftsman in these two sustainable and easily accessible natural materials. The various parts were manufactured by women ‘Self-Help’ groups and assembled thereafter. The bamboo strips required for the product were manufactured with a semi-automated machine at a central location. This ensured the right quality, dimensions and finish of the strips. A weaving fixture was given to the various interested people, mostly women, who created the woven mats. This ensured that all the mats were made of the same standard. These mats were bought back from the individual’s home or from the ‘Self Help’ group centres at the central processing location. The terracotta piece was manufactured at the local potter as per the given design and specifications. Converting components into the product was done at the central processing unit. The product was marketed through various gift shops and interior shops across the city.

This provides a sound business model for the artisans, as well as the promoter of the product. More such applications and items need to be created. This will happen only with increasing awareness about this wonder material. The products are developed using modern manufacturing machines, fixtures and processing techniques. The production approach of sub assembly manufacturing at dedicated workstations gives the best inputs from skilled workmen. The assembly line setup ensures very good repeatability and quality of the product.

I-CAN Design Process Adopted

This time the Bamboo Masters team decided to adopt the I-CAN Process under the guidance and involvement of this author. It was carried out as per the following steps:

Inspiration

Inspiration to develop a product in bamboo came from the resilience of bamboo – an inherent characteristic of the natural material, the


traditional skills of the artisans, and the possibility of getting to feel nature (Figure 3).

Picture 3

Market Demand: The development team members at ‘Bamboo Masters’ undertook a survey to assess the market demand. It revealed that:

• Therewasaconstantquestoftheurbanconsumerstohavesomethingdifferent and new, using traditional artistry with eco-friendly material. A market existed for a product which fulfilled this desire of the user.

• Productapplicationsrangingfromtabletopaccessoriesandjewelleryto interior decoration items were in great demand.

• OutletslikeFabIndiaareinstrumentalinfuellingthegrowthofthismarket.

• Amethodicalapproachwasadoptedtogaugetherequirementofthemarket through a survey conducted by KARWAK, a speciality store for eco-friendly gift articles. Interior decoration items emerged as the most sought after products which need constant innovation.

• Competition: The survey revealed that there was competition to such products made by machines and other mass-manufacturing methods from roadside, one-off products produced by the unorganised sector.


User Need: The study offered the following user profile for the product:

• Higher middle class and above, young middle aged 25–45 years,having own house, who spend on exclusive interior use products. He/she needs gifting items for his/her friends, family and business associates. Wants to establish himself/herself as a person promoting an eco-friendly way of life. He/she takes pride in displaying his/her prized possession, and considers himself/herself innovative modern by giving such exclusive gifts.

• Theproductshouldbeeasytouse, install,packandtransport.Theproduct has to be rustic yet urban and contemporary. Use of garish colours is a complete no-no. The surface-colour should be subtle. The product should be available easily when required.

• Brandingpossibilityisanadvantage.

Understanding the Craft–method of Manufacturing: There were meetings for discussion to understand the available craft forms – baked clay and bamboo.

• Thecraftskillsandthefacilitiesavailablewereanalysed.Themethodof manufacturing was studied.

• Bamboostripmakingisatraditionalartwiththe‘Burud’communityin Maharashtra. It is used extensively to make utility baskets. This skill was taken as a source for designing the product.

• Theartofmakingpotsonapotter’swheelwasanotherprobablecraftwhich was studied. The possibilities of various forms of pots getting manufactured with what accuracy was explored.

• Theartisans’ limitationsandstrengthswereanalysedtoaidhim/herto create the product.

• Theartisanwasconsideredthefocalpointandthefirstconsumerofthe ‘Design’.

• Rajendra Sapkal, the leader of the organisation, and his team werethe key members of this activity.

Product Integrator: The establishment or group of facilitators who would be instrumental in integrating the products was identified. Their requirements


for manufacture of these products were studied. They, thus, become vital ‘users’ of the product before it would go out in the market.

Marketing and Sales: The front face of all the activities is the Marketing and Sales force. This user is of paramount importance, whose requirements were noted down. They required a detail account of the nature of the product, its unique selling prepositions, and product differentiators to aid them to market the product.

Design Brief: With these user expectations, a design brief was created for an indoor lamp as follows:

1. Product for the urban house hold

2. Modular construction

3. Easy to install and maintain

4. Unique/different from competition

5. Shouldhaveterracotta(bakedclay)andwovenbambooasamaterialof construction

Technology: The manufacturing process considered was the traditional potter’s wheel for the clay component, and bamboo sliver (thin strips of bamboo to make mat) making and weaving for the bamboo component. These manufacturing methods, their advantages and limitations were studied and analysed before the start of the conceptualisation phase.

Conceptualise

Ideate: Multiple concepts were evolved for the product. This ideation phase did not have any restrictions as far as feasibility was concerned. The wheelbarrow of ideas was evaluated for various criteria. Feedbacks from various stakeholders on the product ideas were sought. The artisans were the primary source of interaction and feedback in this development phase. In addition, the product integrators and the marketing team gave in the much needed inputs.

Concepts for the method of construction of the main body of the lamp were created. The interdependence of the baked clay component, the diameter of the bulb, and the end caps were ideated with different construction. Various shapes and sizes were explored as follows (Figure 4).


Figure 4: Various Shapes and Sizes

Adaptation

Quick prototypes were created using the available material–paper. Various permutations and combinations were tried out to confirm the thought process. These mock-ups were tested for its intended purpose. The adaption of the design for the product was strengthened by re-creating and modifying the test results. The material and process to be used was analysed for ease of manufacture considering the appropriateness of the intendeddesign(Figure5).

Picture 5:

Various options in the bamboo mat pattern were tried out to aid the proper throw of light from the lamp. The possibility of a foldable cylinder was also explored. The edge detailing for the cylinder of a specific diameter was arrived at. The diameter of the cylinder got decided in relation to


the diameter of the light source. To help achieve the desired diameter of the bamboo mat cylinder, it was decided to use the available polyvinyl chloride (PVC) water pipe as a reference for its repeatability.

The terracotta end-caps were made accordingly. The dimensional tolerance achieved after the clay gets dried up were tested and finalised. For fixing the bamboo cylinder various options were tried out.

Nurture

The crucial stage of the development process is nurturing the ‘Design’ which gets created to achieve the task at hand. The detailed component design, its detailing was worked out. Design for manufacturability is the focal point of this phase. The decision of the manufacturing flow, assembly details, and finalisation of the bill of materials (product ingredients) was taken here. Refinement in design in terms of the surface texture, finish, colour, embellishment was done Figure 6).

Figure 6: Product Components

The design was refined with all the considerations, and various modular versions were created. Different fitment methods were made as per the requirement for vertical, horizontal, and table top mountings.

Once the product was fully built, the communication material for its marketing was conceptualised and created. The pitch was for the corporate buyer, as well as the individual buyer. An appropriate packing material was devised.


Production Value Chain:

Figure 7

Launch in the market: The product was introduced in the market in 2009, through Karwak, a marketing consultancy in Pune. It had already helped establish a network of workforce who got the opportunity of working from their own homes, and was still part of a bigger chain of manufacturing this unique product.

Rajendra Sapkal, the master craftsman, became the focal point of the creation of this product. He managed the activity with the help of four full time workers, who assembled the entire product. A cluster of 20 to30 women, who feed in the components to the main assembly station, was evolved. The success of the activity was multiplied by the number


of people who have been impacted with livelihood development due to ‘Design’.

ProductEconomics:Theeconomicsofoneoftheordersfor1,500piecesfor corporate gifting on Diwali (Table 1).

Selling Price: Rs 400 per unit

Cost Price: Rs 210 per unit

Table 1

1 Strip cutting 202 Mat making 453 Cylinder making 304 Terracotta end caps (2 no.s) 305 Assembly 356 Packing 50

Total expenditure 210

The cost of marketing, capex and overhead, along with the profit was recovered from the selling price of the product. All the stake holders in the production value chain gained a lot of insight, learning, and a decent remuneration for the collective efforts put in by them.

The ICAN Design Process was subsequently used to develop the following products (Figure 8):

Figure 8: Products Designed by ICAN Design Process

Summary and Conclusion

The product developed using the ICAN Design Process created value in the following manner:


• Simple throwing on potter’s wheel and bamboo mat-weavingtechnique were used to design this ‘terrabambu’ pendant.

• Adequate provision was made in the design of the product andselection of production process to ease manufacturing, assembly and installation.

• Pegandholedetailingtoassemblethebamboomatcomponentandthe terracotta top/ bottom component was incorporated.

• Variantsweredevelopedusingthebasictopbottompieceinterracottaand the bamboo mat cylinder.

• Modern,yetsimplemethodsofjigsandfixturesweredeployedandtaught to the traditional artisans, as well as first time workers.

• Individualcomponentsweremanufacturedatvariouslocations–atthehomes of every craftsmen.

• Finalassemblyandfinishingwascarriedoutnear thepointofsale.This was a typical example of a ‘spoke and wheel’ arrangement.

• This helped decentralise the manufacturing process and achieve aperfect assembly line approach. The expertise of the individual was put to maximum use where ever it was required the most.

The I-CAN Design Process proved to be successful in a small cottage unit. The success could be measured in terms of profitability for the entrepreneur, Rajendra Sakpal, who was in the business for over two decades. For him, it was the first systematic approach to design, develop and produce a bamboo product. The artisans were able to earn better and could improve their skills. That they were happy with the approach was proved by their continued participation during the production process of subsequent products,

The confidence level of the sales and marketing team to take in such challenging orders increased. Corporate gifting requirements at KARWAK saw an upward trend.

The I-CAN Design Process proves to be applicable to low tech high human skill products similar to the high technology, machine manufactured products.

‘Design’ became the key differentiator to establish a social entrepreneurship model.

Worker Participation in Management Decision Making Within Selected Establishments in Uttar Pradesh, India

Nachiket Thakur*

ABSTRACT

This article is concerned with an investigation of the existing level of worker participation in management decision making within the Indian work environment. The study involved a survey in which a total of 217 non-management employees drawn from two work organisations in Uttar Pradesh (Flour Mills and Sugar Mills) were used as subjects. Interview schedule and in-depth interview were the main research techniques adopted for data collection, while percentage distribution and chi-square statistical techniques were used to analyse the data collected for the study. Results show that employees in both organisations demonstrate a high interest in participation in the decision making process within their respective workplaces. However, the actual level of involvement in management decision making demonstrated by the employees was found to be relatively low. There is significant relationship between education and employees’ involvement in decision making at Flour Mills. In Sugar Mills, there is a significant relationship between age and employees’ involvement in decision making, as well as between frequency of employees’ consultation and organisational commitment. The study reveals a growing desire of non-management employees in the Indian work environment to exercise greater involvement in the decision making process of their enterprises.

* Department of Business Administration, D.D.U. Gorakhpur University, Gorakhpur, Uttar Pradesh



Introduction

The concept of worker participation represents a popular theme in the analysis of the world of work among scholars in the fields of Industrial Sociology, Industrial Relations, as well as management. It refers to any arrangement which is designed to involve low cadre employees (workers) in the important decision making within the workplace. This implies that rather than saddling only a group within the enterprise (for instance, management) with the responsibility of making decisions, all those who are to be affected by these decisions (including the workers) would be involved in its formulation and implementation.

In recent time, scholars have directed increasing attention to the issue of worker participation and its broader corollary, industrial democracy (Mankidy, 1984; Yesufu, 1984; Adewumi, 1989; Verma and Syha, 1991; Weller 1993; Kester and Pinaud, 1996; Adu-Amankwah and Kester, 1999). These concerns reflect a growing interest in finding ways to make work more meaningful and satisfying to the workers. This rests on the belief that the organisational goals of high productivity and harmonious industrial relations are best achieved when the higher level needs of the human elements (workers) are satisfied. Worker participation implies arrangements designed to involve workers in the enterprise’s decision making process. This allows for workers’ involvement in the initiation, formulation and implementation of decisions within the enterprise. The concept can also be understood in terms of a new approach to industry and society in which people want to be interested with the taking of decisions which have direct bearing on them. MacGregor (1960) contended that worker participation consists basically in creating an opportunity under suitable conditions for people to influence decisions which affect them. It is a special case of delegation in which the subordinate gain greater control, greater freedom of choice with respect to bridging the communication gap between the management and the workers. This serves to create a sense of belonging among the workers, as well as a conducive environment in which the workers would voluntarily contribute to healthy industrial relations.

The Problem

The spread of democratic value to virtually every society today has brought


the need to examine the implications of this trend to other spheres of life. With respect to the economic sector, employees are faced with the dilemma of how to cope with authoritative management in the workplaces while living in a democratic society which guarantees basic fundamental freedom. In addition, the denial of worker’s active involvement in decision making is held to be one of the major causes of the problems which are manifested daily in the work lives of the modern employees. The implication of these to employees of increasing exposure to a monetised society, rising education and wider contact among people resulting from the break-up of artificial barriers was to shift these aspirations to a more satisfying work experience, greater control over the organisation of work, greater opportunity for personal development, and wider scope in exercise of initiatives. Specifically, the refusal of work organisations to recognise the human factor in industrial production through greater involvement of employees in its management decision making would tend to create several human problems in this setting. A worker is a social being who brings his personality, hopes, aspirations, anxieties, feelings and attitude to the workplace. He seeks satisfaction and meaning in his work as he does in other spheres of life. However, when he finds that his work does not provide him with the opportunity to realise his potentials (for instance, through strict management control) he tends to engage in negative behaviours like absenteeism, apathy, low commitment and low productivity. The implication of these negative tendencies resulting from strict management control has, therefore, raised serious concern among scholars interested in healthy industrial relations.


The central objective of the study is to determine the level of worker participation in management decision making in the Indian industry. The specific objectives are to:

• ascertainworkerslevelofinvolvementinthedecisionmakingprocessof their workplaces;

• establishthegeneralattitudeofworkerstowardsworkerparticipationin management decision making;


• determine factors which aid or hinder the observed level ofparticipation; and

• investigate the implicationsofworkerparticipation toworkers andtheir organisations.

Rationale for the Study

The rationale for the study is anchored on the need to raise the productivity level of workers through appropriate motivational techniques. The involvement of workers in management decision making is considered as a means for inducing motivation in the workers leading to positive work attitude and high productivity.

The study is also deemed desirable in view of the benefits of worker participation to the organisation and the society at large. Worker participation has been seen as capable of providing workers conducive work environment, opportunity to exercise their innate potentials, and willingness to pursue the corporate goals of the organisation.

Review of the Literature

Worker participation has been explained as a plank of industrial democracy (Adewumi, 1991). Mills (1977) described the spread of industrial democracy to Western Europe in the 1970s as a story of capitalism in transition. In his words, in countries which are witnessing this transition, industrial democracy affects the nature, control and even ownership of private enterprise, the nature, control, power and bargaining areas of the labour union, and the roles and contributions and rights of the individual worker in contemporary and future industrial society [cited in Heisler and Houck, (1977: 116)].

The description mentioned earlier shows that industrial democracy affects many aspects of lives of different people in a modern society. This reason may explain the wide clamour for the introduction of worker participation arrangement in most countries.

Mills (1977) identified four basic forces underlying the clamour for industrial democracy. The first one was political in nature, pushed primarily by socialists, and moderate labour and political leaders. The


second was an industrial or economic force championed by innovative and socially-oriented management and at times, by unions. The third was an intellectual and theoretical force pushed by MacGregor (1960), Maslow (1964) and Emery, Thosrud and Trist (1964).

Growing public distaste, desire and disillusionment with traditional institutions and their leadership, growing aberrant social behaviours including crime and drug abuse generate a new demand for participative right of every kind including women’s rights.

This fervour explains rising workers’ demand for increasing influence in management decision making. The increasing interest in worker participation has been traced to a number of factors. First, is the real or anticipated political pressure which was designed to extend the popular democratic dispensation in the larger society to the economic sphere. Second is the growing pressure on the collective bargaining system arising from continuing difficulties from negotiating in the context of high inflation and in some instances increasing disenchantment with the dialogue of confrontation. Third, and more importantly, is the endemic problem within the modern industrial system which may tend to encourage employers to consider experimenting with different forms of participation. Lastly, the growing interest in participation was encouraged by the problem associated with denying powerful groups (for example, shop stewards and work groups) formal and legal means of exercising their rights. When such a situation arises, the workers concerned will employ informal bargaining methods and illegitimate facts to achieve their goals. To forestall these negative trends, the management is forced to introduce certain participation schemes (Mills, 2009).

The industrial democracy movement can be seen, therefore, as part of the Quality of Work Life Movement (QWLM) which spread throughout Europe during the early 1970s. A major impetus to this movement was provided by the Workers Constitution Act Passed by the German Bundestag in 1972. The Act imposed a mandatory Worker Council on every German enterprise employing more than five employees.

In the 1990s, the industrial democracy movement took the form of what Freeman and Rogers (1993:13) called employee representation. Like worker participation and other stands of industrial democracy, employees’ representation connotes greater influence of workers in several


aspects of the work. It also involves restructuring management to meet the new demands of efficient management, international competition, rapid technological change, and changing work force expectation of work (Freeman and Rogers, 1993: 111).

A related concept to employee participation is joint Governance. The concept was developed by Verma and Cutcher-Gershanfield (1991) who defined it as:

An ongoing formal process where workers and their immediate supervisors or union and management bear joint responsibility for making decisions which may be narrow (for instance, involving a single tissue) or it may be broader covering a wide range of issues.

Joint governance would then be taking to imply statutory arrangements that are meant to provide equal decision making power to subordinate employees. However, like other programmes with similar objectives, joint governance provides little opportunity for real decision making power to employees. Wellins-Byham and Wilson (1991) argued that in some joint governance programmes, workers are involved at the shop floor levels in issues relating to production and equality. However, in this instance, rarely were these workers provided with any concrete decision making power. In some of the programmes, employees were given advisory roles, which in few cases may confer them with an influential voice. But this is still far short of sharing decision making power which a full worker participation arrangement would imply.

Levine and Tyson (1990) distinguished between consultative and substantive forms of participation. In consultative forms, employees provide information or advice, but management retains the right to make decisions. In more substantive participatory systems workers have greater autonomous control over methods and pace of work, and make decisions that substantively affect the production process. This distinction between consultative and substantive forms of participation is what Rubestein, Bennett, and Kochan (1992) called ‘off-line’ versus ‘on-line’ participation. These terms distinguish between workers who make suggestions to management through problem-solving groups off the job and workers who make decisions with respect to work tasks or quality control as part of their daily work responsibilities (Kester, Zammit and Gold, 2002).


Studies have also focused on the effect of worker participation on organisational performance (Kelly and Harrison, 1992; Levine and Tyson, 1990; Lawler et al., 1992). These studies found that participation programmes have positive, or in some cases, ambiguous effect on productivity. Furthermore, employee participation and industrial relations practices may interact so that the sum of the effects on plant performance is stronger than the effects on the individual practices themselves (Cooke, 1994). Lastly, effects on productivity are expected to be greatest when the organisation adopts a coherent system of work organisation and industrial relations practices (Dunlop, 1958; Cutcher-Gersenfeld, 1991; Kochan and Useem, 1992). In the view of Kester, Zammit and Gold (2002), democratic participation is no longer primarily a battleground between capital and labour, implying a win-lose game, but a common challenge, a win-win game that forces all parties to reconsider the rules of the game and the roles of the actors.

With respect to the status of worker participation in the developing world, Mankidy (1984), and Kester and Schiphorst (1986) have argued that in these countries, labour relations are characterised by a break-up of existing patterns. In many of these countries, there is an increasing awareness that the labour relations produced in these countries are grossly defective. Trade unions are also seen as very weak in many of them. Lastly, on the ideological ground, collective bargaining is rejected because of its emphasis on the dependent wage labour position of the worker.

Kester and Thomas (1981) have demonstrated that there is a fast growing interest in the development of worker participation in developing countries. In their studies, they found one form of worker participation or the other in these countries. In some cases, worker participation was introduced as an essential part of the development strategy. For instance, in Tanzania, the idea of worker participation formed an important aspect of her socialist ideology. This is anchored on the notion of man centred development strategy.

In India, the institutionalisation of worker participation within the nation’s industrial relations system was championed by several scholars. Fashoyin (1992), Adewumi (1993) and Imaga (1994) have suggested that worker participation in management decision making represents a means of


reducing industrial conflict, raising workers productivity and ensuring rapid socio-economic development.

Adewumi (1990: 7) contended that the Indian industrial relations system is guided by the underlying philosophy of industrial democracy. This implies the establishment of institutions and machineries through which management and workers meet on equal footing to discuss, consult and negotiate the terms and conditions of employment. In reiterating the principle of industrial democracy as the guiding spirit of Indian’s industrial relations system, the National Labour Policy states,

If management must participate in decisions for determining the share of the worker from the results of the co-operative use of labour and capital, then the worker is equally entitled to participate in the decisions relating to share of capital, namely, profit and indeed all decisions hitherto arrogated to itself by the employer or management relating to the whole organisation and operation of the enterprise; determining objectives and policies, the relative share of the co-operating factors of production (Yesufu, 1992: 142).

Adewumi (1993: 76) argued that the only avenue for the realisation of the objective of worker participation in management decision making in India is through the collective bargaining machinery. However, it is evident that this machinery is very defective in India because of its restrictive nature. Consequently, such arrangements cannot confer effective participation rights to the workers.

Theoretical Framework

The human relations and participatory democratic theories are adopted to guide our study on worker participation in management decision making. The human relations theory stems from the understanding that the co-operation of workers is desirable for the attainment of the objectives of high productivity and industrial peace. It contends that workers would be better motivated if they are treated like human beings rather than as irrational objects. For instance, by making them have a feeling that the organisation accords them recognition by involving them in the decision making process. In the light of the theory, the worker is to be perceived in terms of his membership of a social group rather as an individual.


Consequently, his behaviour is seen as a response to group norms rather than simply being directed by financial consideration. Workers should then be expected to react to group norms so that when they are given the opportunity to take part in management decision making, they are likely to respond positively to organisational issues.

The democratic participatory theory emphasises on conditions which are necessary for effective participation and functions performed by participation to the individuals and society. For instance, Rosseau (1956) contended that through participation in decision making, the individual sense of freedom is increased since it gives the worker a very real degree of control over the course of his life and structure of his environment. Again, it serves to increase the value of individual freedom by enabling him to be his own master.

Mills (1965) sees the industry as an area where the individual could gain experience in the management of the collective just as he could in government. The theory views the political arena as a kind of market place in which individuals constantly attempt to maximise the benefits and minimise losses they could gather from the political process. It assumes that man is selfish in the sense that each participant would be motivated by the desire to protect or enhance his own personal interest. The theory assumes that increased participation is likely to increase the feeling of political efficiency that ordinary citizens possess. This helps to increase the potential so that their actions can have an effect on public policy and lead to a greater sense of control over their communal lives. In essence, greater participation in one sense of life leads to greater participation in other spheres, i.e. the workplace (Pateman, 1970).

Methodology

The study adopted the case study approach for the purpose of conducting an empirical investigation on the issue of worker participation in management decision making in the India work environment. The study was conducted between the months of October 2012 and November 2013. Main data were collected both through the primary and secondary sources. Primary sources of data were derived from the questionnaire and in-depth interview methods, while secondary sources were acquired from


company records, bulletins and other official documents. The adoption of these tools helped to collect both quantitative and qualitative data. The questionnaire was in three sections–the first contained questions on respondent’s personal data, the second on the level of worker participation, while the third was based on worker participation structures.

The study population comprised of workers in two selected organisations in Uttar Pradesh, namely, a Flour Mills and Sugar Mill. A total of 227 subjects drawn from the two selected establishments constituted the sample for the study. The subjects were selected through a combination of clustering and systematic sampling methods.

Hypotheses

The following testable hypotheses were formulated to guide the attainment of the research objectives. There is a relationship between employees’ socio-economic status and the level of involvement in decision making such that:

1. An employee in higher job position tends to exercise more involvement in management decision making than another in lower job position.

2. An employee who possesses higher educational qualification would tend to have more influence in management decision making than other who possesses lower educational qualification.

3. A young employee would more likely demonstrate more involvement in management decision making than his older counterpart.

Findings and Discussions

As evidenced from tables 1 to 8 the demographic composition of the subjects reflects that the majority are male, middle aged with low educational qualification. This finding is a reflection of the structure of the Indian industrial labour force in which middle age male workers are more represented than their female counterpart. It also reflects on the occupational status of the subjects of the study, all of whom are lower cadre workers.

Findings on respondent’s frequency of involvement in the decision making process of their organisation as reflected in Table 4 shows that


respondents in the two study organisations demonstrated generally low measure. However we found that employees in Sugar Mills have a higher frequency of involvement than those in Flour Mill.

Table 1: Sex Distribution of RespondentsSex Flour Mill Sugar Mill

No. % No. %

Male 60 66.6 77 56.2

Female 30 33.4 60 43.8

Total 90 100 137 100

Source: Author Field Work, 2013

Table 2: Age Distribution of Respondents

Age Flour Mill Sugar Mill

No. % No. %

30 years or less 35 38.8 53 38.7

Between 30–40 year 41 45.6 65 47.4

41 years and above 14 15.6 19 13.9

Total 90 100 137 100

Source: Author Field Work, 2013

Table 3: Respondent Educational Qualification

Educational Qualification Flour Mill Sugar MillNo. % No. %

Primary Sch. Cert. 2 2.2 6 4.4 Sch. Cert and Equivalent 38 42.2 43 31.4 OND/NCE Certificate 30 33.3 64 46.7 First Degree 11 12.2 16 11.7 Post Graduate 9 10 8 5.8 Total 40 100 137 100

Source: Author Field Work, 2013.


Table 4: Distribution of Respondents by Frequency of Involvement in the Decision Making Process of the Workplace

Frequency of Involvement No.

Flour Mill Sugar Mill

No. % No. %

Not at all 25 27.8 14 10.2

Occasionally 43 47.8 76 55.5

Often 20 22.2 45 32.8

No Response 2 2.2 2 1.5

Total 90 100 137 100


Table 5: Respondents Involvement in the Decision Making in Administration of Social Facilities

Frequency of Involvement

Flour Mill Sugar MillNo. % No. %

Not at all 38 42.2 59 43.0 Not at much 32 35.6 54 39.4 Much 20 22.2 24 17.6 Total 90 100 137 100


This variation could be explained by the relatively higher educational status of respondents from the Sugar Mill. In addition, in this company there are a larger number of professionals who are more willing to seize the opportunity of participation in management decision making.

Results of in-depth interviews conducted with some respondents attest to our findings. When asked about the extent to which he is involved in the making of decisions within the company, an insurance clerk in the insurance underwriting office of the Sugar Mill replied:

“The management in this company does not consider it as its duty to contact junior employees on how decisions are made.”

A factory operator in the Flour Mill has this to say when asked the same question:

“I am always busy in the factory, may be this is why I don’t know about decision making.”


It is possible to observe the obvious variation in reasons advanced by the two informants on why they demonstrated low involvement in management decision making. While the informant from the Sugar Mill expressed that his low or lack of involvement was due to management unwillingness, the respondent from the Flour Mill indicated that he was not much involved in management decision making because of his busy schedule work.

It is also interesting to know that a number of the respondents indicated that they had no interest in participating in the management decision making of their workplaces. This category of employees demonstrated a non-challant attitude towards their involvement in the management decision making. As a respondent in the Flour Mill says:

“I am in this company to work and earn my salary. I have no business with decision making. I am not paid for such job.”

An opinion like this reflects the instrumental orientation of some of the workers in the two study establishments. Being mostly junior workers, these respondents tend to demonstrate more interest in earning a living from work rather than to satisfy the higher order needs of self expression through participation.

However, in spite of this tendency, our findings show that a substantial proportion of respondents in both study organisations reported that they are involved either regularly or occasionally in the management decision making process of their companies. In the words of a respondent in the Sugar Mill:

“Management in this company does not hesitate to involve some of us in the decision making process whenever it is necessary.”

This opinion is similar to the one expressed by a Foreman in the Flour Mill:

“As a senior staff, I and other Foremen in the various units are made to contribute to the decisions in matters relevant to our department.”

Views like the one above show that respondents have some measures of involvement in the decision making process of their organisation.


Table 6: Relationship between Respondents Educational Level and Involvement in Management Decision Making

Organisation Educational Level Involvement in Decision MakingNone Casionally Often Total

Flour Mills

Low 6(50%) 4(33.3%) 2(16.6%) 129(100%)

Moderate 7(10.3%) 34(50%) 27(9.7%) 68(100%)

High 1(5%) 5(25%) 14(70%) 20(100%)

Sub-Total 14(15.6%) 43(47.8%) 33(36.7%) 90(100%)

x2 = 3.74. d.f. 4; P ≥ 05

Sugar MillsLow 4(18.2%) 14(63.6%) 4(18.2%) 22(100%)

Moderate 10(9.4%) 57(53.8%) 39(36.80%) 106(100%) High 2(22.2%) 5(55.6%) 2(22.2%) 9(100%)

Sub-Total 16(11.7%) 76(53.5%) 45(32.8%) 137(100%) x2 = 3.74. d.f. 4; P ≥ 05

Table 7: Relationship between Respondents Age and Involvement in Management Decision Making

Organisation Age Group Involvement in Decision Making

None Occasionally Often Total Flour Mills

30 yrs or less 6(17.1%) 21(60%) 8(22%) 35(100%)31–40 yrs 4(10%) 18(45%) 18(45%) 40(100%) 41yrs and above 3(21.4%) 4(28.6%) 7(50%) 14(100%) Sub-Total 13(14.6%) 3(48.3%) 33(37.1%) 89(100%) x2 = 6.6; d.f. = 4; P ≤ 05

Sugar Mills30 yrs or less 4(18.2%) 27(51.9%) 16(30.8%) 52(100%)31–40 yrs 10(9.4%) 42(64.6%) 17(26.2%) 65(100%) 41yrs and above 0 2(36.8%) 12(63.2%) 14(100%) Sub-Total 15(11.1%) 76(53.5%) 45(33.12%) 136(100%) x2 = 6.61; d.f. = 4; P ≤ 05

The study also indicated other factors which could influence employee involvement in management decision making. Tables 4 to 8 show the relationship between age, education and job position, and respondents’


level of involvement. As shown in Table 6 given earlier, there is a statistically significant relationship between respondents’ educational attainment and their involvement in management decision making in the Flour mill, while such relationship was absent in the Sugar Mill. This finding demonstrates that the respondents’ measures of involvement are related to their educational qualification in the Flour Mill. In this company, while those who possess low educational qualification exercise low measure of involvement, those with higher education demonstrated

equivalent level of involvement in management decision making.

Table 8: Relationship between Respondents Job Position and Involvement in Management Decision Making

Job Position Involvement in Decision Making

Not at all Occasionally Often Total

Flour MillsLow cadre 8(21.6%) 20(54.1%) 9(24.3%) 37(100%)

Middle cadre 3(7.5%) 16(40%) 21(52.5%) 40(100%)

High cadre 1(16.7%) 3(50%) 2(33.3%) 6(100%) Sub-Total 12(14.5%) 39(47%) 32(38.5%) 83(100%) x2 = 7.5; d.f. = 4; P ≤ 05

Sugar MillsLow cadre 8(16.0%) 30(60%) 12(24%) 50(100%)Middle cadre 5(6.4%) 43(55%) 30(85.5%) 78(100%) High cadre 0 1(33%) 2(66.7%) 3(100%) Sub-Total 13(9.9%) 74(56.5%) 44(33.6%) 137(100%)

x2 = 6.54; d.f. = 4; P ≤ 05

It is evidenced from these findings that an individual’s educational qualification could influence the level of involvement he could exercise. This finding is not surprising since those with higher educational qualification tend to have more knowledge about management decision making, and are also more likely to seize the opportunity to be involved in the affairs of their organisations.


Conclusion and Recommendations

Based on the findings of the study it could be concluded that workers in the study establishments are generally not much involved in the management decision making within their respective establishments. On the other hand, the workers generally demonstrated high interest in management decision making. The study therefore confirmed that while the workers demonstrated positive attitude towards involvement in decision making, the actual level of involvement they exercise is negative. However, we found that workers in the Sugar Mill demonstrated more involvement in management decision making more than their counterparts in the Flour Mill. This implies that workers in the service sector are more involved in management decision making than those in the manufacturing sector of the Indian economy.

Workers who are subjects of the study generally demonstrated the willingness to accept the responsibility of involvement in management decision making whenever such opportunity arose. However, many hold the view that management decision making is the preserve of the management. This implies that while the workers are willing to accept the responsibility of greater involvement in management decision making they are not ready to challenge the management in this regard. Another conclusion reached from the study is that respondent’s level of income in management decision making has an implication on certain organisational factors. Specifically, the commitment level demonstrated by the workers is a factor of the extent of influence they exercise in management decision making.

Finally, from the respondents’ assessment of management attitude towards workers participation, it could be concluded that the management in the Indian work enterprises are not favourably disposed towards granting workers a significant measure of involvement in management decision making. This finding would lead us to conclude that a lot needed to be done to change the current negative disposition of the Indian management towards workers involvement in management decision making. More importantly, the current obstacles against effective workers participation in India could be tackled through:

• Enlightenmentprogrammes forworkersontheir rights to seize theopportunity of involvement in decision making;


• Provisionofmonetaryandotherincentivesforworkerstoencouragethem sustain the current interest in participation;

• Liberalisingmanagementstructuresoastoallowforgreaterworkersinvolvement; and Training programmes for workers in management functions as a way of properly equipping them on their decision making role.

References Adu-Amankwah, K. and G. Kester.eds., How to Make Democratic Participation

a Success: An Africasn Trade Union Challenge, Rotterdam: Textua, 2005. Adewumi, F., Industrial Relations Economic Development and Democracy: A Preliminary Note, 2010, pp. 59–82.

Cutcher-Gershenfeld, J., Recent Developments in U.S. Employee Involvement Initiatives: Erosion or Diffusion, 2010, pp. 1–32.

Dunlop, J., Industrial Relations System, New York: Holt, 2012. Fashoyin, T., Industrial Relations and African Development, New Delhi: South, Asian Publishing Ltd., 2011. Freeman, R.B. and J. Rogers, Who speaks for as? Employee Representation in a

non-union Labour Market, 2012, pp. 13–14. Goldar, N., Productivity in Indian Industry, Delhi: Allied Publishers, 2009. Gujarati, D, Basic Econometrics, 4th edition, New Delhi: Tata McGraw Hill, 2004,

pp. 47–57. Image, E.U., Industrial Democracy in the Third World: A Study of India and Nigeria,

New Delhi: South Asian Publishers, 2008. Hoppock, R, Job Satisfaction, New York: Harper, 2008, pp. 1–25. Landers, R., J. Rebitzer and L. Talyor, ‘Rat Race Redux: Adverse Selection in the

Determination of Work Hours in Law Firms’, American Economic Review, vol. 86, no. 3, 2000, pp. 329–48.

Subramanian, G., Indian Sugar Industry, Madurai Kamaraj University Publication, 2012.

Geospatial Technology: Opportunity in Fostering Social Enterpreneureship

Navendu Chaudhary*

ABSTRACT

Geographic Information Technology, or Geospatial Technology, is a blend of computer hardware and software used to analyse and visualise spatial data (Goodchild, 2001). The mapping techniques employed in Geographic Information System (GIS) has evolved into an intelligent mapping system that can support various fields of inquiry. For the last two decades, these systems have become an indispensable tool in the hands of decision makers, researchers, as well as participants in social sectors in economically advanced countries (Hilier, 2007). In India, however, these technologies are in a nascent stage. This paper argues that these technologies are well suited for fostering social enterpreneuership, and greatly advance the capabilities of social sector undertakings. This paper examines the role that Geospatial Technology can play in fostering social enterpreneureship with specific case studies carried out at Symbiosis Institute of Geoinformatics, Pune.

Keywords: Social Enterpreneureship, Geospatial, GIS, Remote Sensing, Spatial Analysis

What is Geospatial Technology?Geospatial Technology is a blend of computer hardware and software designed to capture, store, display and analyse geographic . The capturing

* Symbiosis Institute of Geoinformatics, Pune.



of geographic data often relies on remote sensing and global positioning technology. Remote sensing is a common term used for data acquisition from platforms such as aircraft or satellites, that provide a bird’s eye view. Providing social services are inherently involved in working with underprivileged and inert-connected human settlements. Geography thus matters in project planning and execution. Remote sensing, coupled with Geo-positioning technology and traditional surveys can give us the real-time perspectives upon project management. The economically advanced countries have already embraced Geospatial Technology to serve as a standard framework for project management (ESRI, 2011). In India, the social services sector can greatly benefit from their experience to effectively serve the pressing needs of the large Indian population.

Considerations of Geospatial Technology1. Hardware: Computer systems have evolved in the last decade to handle

enormous amount of data. They are today reasonably priced and easily available. The hardware needs to be checked for memory, storage and graphics capacity. These requirements will vary based on whether the user will visualise or analyse the data. Analytical capabilities will require more robust systems

2. Software: Multitude of geospatial softwares are available in the market. Some are simple viewers, generally available free of cost. Some are sophisticated and possess a wide range of geospatial tools. Many are proprietary, but recent advances in open source Geographic Information System (GIS) have created much simpler and cheaper alternatives. Good geospatial software should be able to work with geographic data, can interface with relational database management system, possess necessary geospatial tools to analyse the spatial data, and have user friendly graphic user interface. Some of these softwares allow user to customise the Graphical User Interface (GUIs) which come in handy for entrepreneurs to create products to suit their client needs.

3. Data: Geospatial softwares rely largely on good quality data sets. The data sets are mainly of two types: one is Spatial data which represents the location features, such as addresses, coordinates, etc. The second


type is an Attribute data which is the data that holds the information about a particular location or coordinate in the spatial data set, such as the number of people living at a particular address. The successful implementation of geospatial techniques will largely depend on the quality of data collected.

Social Services in IndiaSocial work grew out of humanitarian and democratic ideals, and its values are based on respect for the equality, worth, and dignity of all people (Hazra, 2014). In India a large number of people depend on public provision of food, housing, health care and education. To serve such a large section of the society is a mammoth task. The service sector in India is beset with inadequacies in terms of funding, resources and the use of technology. The services such as food provision and health care are often critical enough to warrant use of highly efficient systems. The government machinery is often overwhelmed due to the large, dependant population that is distributed over a country as large as India. India is currently the seventh largest country in the world in terms of area, the third largest in terms of population, and ranks first in terms of population under the poverty line. It is believed that this pressure of public provisions will hamper India’s progress through its inefficiency and inequality (Banerjee, 2014).

In India the social and community services budget of the central and state government has been increasing year on year, and yet has remained woefully inadequate. This gap in the need for public provisions and the timely supply through various government programmes have given rise to social enterpreneuership. Various non-governmental organisations are filling in for the perceived inability of the government to provide these essential services, for example, in cities like Mumbai more than 2,50,000 children are being educated by NGOs on a daily basis. These NGOs often work together in their own synergistic environment (Segran, 2008). This creates the need for effective communication and coordination. The NGOs have been relatively successful in fulfilling the objectives while having meagre means to do so. This is where technology can help in increasing the reach and efficiency. It is essential for these social entrepreneurs to have a collaborative network of social entrepreneurs that


enables them to share ideas, spread innovations and manage projects. The Indian Parliament is currently in the process of passing the New Companies Bill with amendments to Corporate Social Responsibility (CSR) policy. This would give rise to better opportunities for entrepreneurs to take up the social route.

Needs of Social Service SectorThese social workers played a leading role in the social survey movement that brought activists, journalists, social scientists, businessmen, academics, and charitable foundations together for a common cause, that is, to serve the neediest of people. These early social entrepreneurs used field surveys, interviews, statistics, and maps to document the living conditions of the poor in modern cities (Hilier, 2007).

There are three broad levels of intervention for social work professionals. The first is ‘Macro’ social work which is regional in nature and involves the society or communities as a whole. This type of social work practice would include policy forming and advocacy on a national or regional scale. The second level of intervention is ‘Meso’ social work practice. This level would involve work with NGOs , smaller organisations, or self help groups (SHGs). This practice would include policy making within a social work agency, or developing programmes for a particular neighbourhood. The final level is the ‘Micro’ level that involves services to individuals and families. These are very small scale works carried out at the hut level in a slum, or school, etc. (Hazra, 2014).

The social sector, thus needs: (1) Social surveys, (2) Framework, (3) Management of Resources, and (4) Improving Delivery on the Micro, Meso and Macro levels.

For centuries social surveys have generated awareness amongst the population of various societal ills, such as hunger, poverty, disease, inequality, etc. Landmark survey by Charles Booth in London or Jane Adams in Chicago paved the way for social surveys as a starting point in the social intervention movements (Bulmer et al., 2011). Today, Geospatial Technology can help us realise the full potential of these surveys. Integrating Geospatial Technology in the survey work will allow the social work professional to strengthen the survey methodology. The


surveys can be seamlessly shared, reproduced and visualised in both time and space. Such integration is commonly used by public health professionals in the study of epidemics.

The social survey is one of the best known and most widely used approaches to investigation in the social services. It helps the understanding of the current status of services, and allows the agency to evaluate the ‘Gaps’ in the services. It is often conducted by filling up a questionnaire for data collection used by surveyors. These surveys are not mere data collection techniques, but involve designing research in order to meet specific goals. Such surveys need to be tested and evaluated periodically to ensure that they do indeed represent the social landscape. Geospatial techniques are found to be useful in order to design and execute such surveys and aid in visualising or analysing the data in space and time (O’leary, 2003).

Geospatial applications show the ability and potential in addressing important social issues at the international, national, and local levels. Spatial analysis capabilities, which allow users to examine and display health data in new and highly effective ways are the key to successful implementation of geospatial techniques. Spatial analysis refers to the ‘ability to manipulate spatial data into different forms and extract additional meaning as a result’(Clarke, 1999).

It involves several methods and procedures, pertaining to geography, statistics, and other disciplines, for analysing and relating spatial information. Spatial analysis also helps in understanding Spatial relationships, those based on proximity and relative location. Such understanding is vital for social work involving interaction with communities or their environments. The social entrepreneurs can utilise Geospatial Technologies such as GIS, Remote sensing and Global positioning System to serve social sectors by contributing to governmental/NGO, business or academic sectors (Figure 1).

The social surveys are never analysed in isolation, they always have a context. Often the context is the ecosystem or general population, or a combination of both. For example, if we are to study epidemics, we need to address the context of climate, landscape and population distribution. The climate influences the disease proliferation, the landscape interlinks the climate and human settlement, which in turn influences the spread


of the disease. Integrating these influences is a mammoth task and can be made simple by use of Geospatial Technology. At Symbiosis Institute of Geoinformatics, we have used Geospatial Technology to map the dengue epidemic in the city of Pune, in association with the National Institute of Virology.

Figure 1: Social Enterpreneureship Positioning

Geospatial Application in Social Service SectorsAt Symbiosis Institute of Geoinformatics, we encourage students to create Geospatial applications specifically designed for the needs of social sectors. The Figure below shows an application developed by a student to record and archive data received during spotting and collection of snakes by ‘SarpaMitra’, or friend of snakes. This group of people have been tasked to respond to the spotting and subsequent ‘catch and release’ snakes. They are largely voluntary groups and have little means to invest in a system that caters to their need. The application was developed with the help of mobile device (GPRS) and android platform, whereby the cost is minimal and the device is commonly available. The software developed records the location and photo of the captured snake, and sends the relevant information along with a geotagged photo to a server or to the registered email. This information, thus can be archived centrally, and can


be maintained and retrieved on need basis. This information can later be analysed and used for setting up proper policies of snake handling and possible remuneration for the individuals (Shedge, 2014).

Geospatial applications are especially useful in cases like mapping diseases and their patterns. Following is a joint effort of Symbiosis Institute of Geoinformatics and the National Institute of Virology to map the prevalence of vector borne diseases in the city of Pune (Figure 2). The analysis was carried out by using the Global Positioning System (GPS), Remote Sensing and Geospatial tools.

Figure 2: Incidences of Vector Borne Diseases with Underlying Landscape

This type of system can be used to map location of patients juxtaposed with the presence of mosquito and climate/environmental data to bring about trends in existing epidemics and predictive model for future epidemics. Remote sensing and GIS technologies have been used to study the effects of environmental factors, socio-economic factors, and weather conditions on the reported number of dengue incidences. These technologies have been widely used in the public health sector for disease surveillance. Remote sensing data is utilised to enumerate environmental factors, such as changes in land use/land cover, Normalised Difference Vegetation Index, land surface temperature, topographic variations, etc. Remote sensing data was also useful in generating the Digital Elevation


Model (DEM), and a Google Earth Satellite Imagery is an ideal base-map on which all other layers can be overlaid. These data were stored together with other ancillary data obtained from relevant agencies in the GIS database for further analysis and mapping (Chopda, 2012). The results are illustrated as Figures 2 and 3.

Figure 3: Patient Location with Underlying Attribute Data

Limited physical access to primary health care is a major factor contributing to the poor health of populations in developing countries, particularly in mountain areas with rugged topography, harsh climates and extensive socio-economic barriers. Assessing physical access to primary health care is an important exercise for health care planners and policy makers. The development of GIS technology has greatly improved this assessment process in industrialised countries where digital cartographic data are widely available. In developing countries particularly in mountain areas, however, detailed cartographic data, even in hard copy form, are non-existent, inaccurate or severely lacking.

Public health and health care are important concerns of developing countries, and access to health care is a significant factor that contributes to a healthy population. In response to these issues, the World Health Organization (WHO) has been working on the development of methods


and models for measuring physical accessibility to health care using spatial information integrated on to a Geospatial platform . Geospatial Technology is used to assess physical access to primary health care in blocks or talukas of Pune district, Maharashtra, India. The methods involved extensive fieldwork in the region, utilising GPS technology in the development of the GIS and gathering other pertinent health data for the study. Satellite imagery also contributed to the development of the GIS and the modelling process. More importantly, the study highlights

Figure 4: Resource Map of Service Area

Figure 5: Resource Map with Location of PHCs


the use of GIS technology as a powerful tool in improving physical accessibility of primary health care centres in developing countries. The results of these methods are used for cost effectiveness analysis, population coverage estimates, as well as for resource planning within countries. There are several benefits for better health planning and policy development through the use of geospatial methods for potential improvements in the future (Banerjee and Dasgupta, 2013). The results are illustrated in Figures 4 and 5.

SummaryThe examples discussed above provide a mere glimpse of what can be achieved using geospatial technology. These technologies are already prevalent in economically advanced countries such as the USA or Canada. The use of Geospatial Analysis improves the delivery of social services by manifolds. In India, however, this is still a nascent technology. At Symbiosis Institute of Geoinformatics we are creating opportunities for the students to become social enterpreneures through developing applications on geospatial platforms that can be readily applied in the social services sector.

ReferencesHilier, Amy , ‘Why Social Work Needs Mapping’, Journal of Social Work Education,

vol. 43, no. 2, July 2007, pp. 205–21.Banerjee, Anandini and Sriparna Dasgupta, Measuring Physical Accessibilty to

Primary Health-Care Centres in Pune District, Maharashtra is using Geo-spatial technologies, Thesis, Symbiosis Institute of Geoinformatics, 2013.

Hazra, Anupam, ‘Current Prospects of Social Work in India’, Career Guide, Employment News, 2008.

Banerjee, Debosree,‘Social Sector in India’, ICRIER Think Ink, 2014.ESRI, ‘Place Matters in the Helping Professions: GIS for Human and Social Services

Organisations’, ESRI White Papers, 2011.Whal, Grace Segran, ‘Social Entrepreneurship Emerging in India’, The International,

Social Entrepreneurship Conference, Chennai, 2008. Clarke, Keith C.,Sara L. McLafferty and Barbara J. ‘Perspective On Epidemiology

and Geographic Information Systems: A Review and Discussion of Future Directions, Tempalski, GIS and Public Health, vol. 2, no. 2, 1999.


Bulmer, Martin, Kevin Bales and Kathryn Kish Sklar, The Social Survey in Historical Perspective, 1880–1940, Cambridge Publication, 2011.

Miller, Robert L. and John D. Brewer, The A-Z of Social Research, Sage Publication, 2003.

Chopda, Sneha, Combining Google Earth and GIS Mapping Techniques in a Dengue Surveillance System to Develop Dengue Risk Map for Pune Municipal Corporation, Thesis, Symbiosis Institute of Geoinformatics, 2013.

Maheswari, T., ‘Social Sector Scenario of India after the Economic Reforms’, Socio-economic Voices, vol. 2, no. 2, April 1996.

Intrapreneurship Prerequisites and Outcomes in High-Tech Industries

Nishith Dubey*, R.G. Chouksey*, Canchal Mehra* and Atul Mishra*

ABSTRACT

For achieving profitable growth, many companies have developed new approaches to innovate and to create new businesses. Management acts as a facilitator and promoter of intrapreneurship. Management activities affect organisational culture and the basic assumptions of intrapreneurship in terms of risk taking, innovation, creativity and learning to result into change within the organisation. It is evident that intrapreneurship provides a ground for competitive advantage to an existing organisation. During the first stage of the study, the effect of total pre-requisites of intrapreneurship on the total intrapreneurship outcome, and its factors and dimensions amongst the employees having 1to10 years of work experience in hi-tech industries was determined. The final sample of 80 executives was drawn on a random basis from various hi-tech industries located in and around Indore.

Keywords: Innovate, Intrapreneurship, High-Tech Industries, Risk Taking, Creativity.

IntroductionTo achieve profitable growth, many companies have developed new approaches to innovate and to create new businesses. Successful companies change, innovate, and orient themselves entrepreneurially to become competitive (Zahra, 1991; Zahra et al., 1999, Christensen and Raynor, 2003). This implies that while existing capabilities provide the basis for the current performance of a company, without renewal, these capabilities are likely to constrain future ability to compete (Leonard-Barton, 1992).

* National Institute of Technical Teachers’ Training and Research, Bhopal, Madhya Pradesh.



Thus, institutionalising entrepreneurship is not at all easy, though everyone wishes to have it always.

Intrapreneurial Phenomenon The basis of intrapreneurship is recognising an opportunity, exploiting it, and trusting that exploiting an opportunity in a way that deviates from previous practice will succeed and support the realisation of the organisation’s aims (Heinonen, 1999). Here, intrapreneurship is defined to mean an entrepreneurial way of action in an existing organisation, i.e. the company’s commitment to innovation in terms of three related components: product innovation, proactiveness, and risk taking (Miller 1983). Product innovation refers to the ability of a company to create new products or to modify existing ones to meet the demands of current or future markets. Proactiveness is a company’s capacity to compete in the markets by introducing new products, services or technologies.

Risk taking indicates the company’s willingness to engage in business ventures or strategies in which the outcome may be highly uncertain (Zahra and Covin, 1995). Together these components form an A-type. This strategic renewal of an existing organisation entails areas, such as mission reformation and reorganisation, as well as system-wide changes within the organisation (Zahra, 1991, 1993, 1996). The renewal activities relate to the concept of a firm’s business and its competitive approach in the markets.

The primary factors retarding intrapreneurship are the cost of failure is too high, and the rewards of success are too low. Intrapreneurs need to be given the space in which to fail, since failure is an unavoidable aspect of the intrapreneurial process. This is not to say that organisations should condone failure, but rather that organisations need to begin to measure and attribute failure to either the intrapreneur’s fault, or circumstances beyond the intrapreneur’s control, and punish or reward accordingly.

Pre-requisites and Outcome of Intrapreneurship Several researchers have attempted to understand the factors that stimulate or impede intrapreneurship. Areas such as external environment, organisation, its strategy, and management activities have been presented as


factors affecting intrapreneurship (Miller, 1983; Guth and Ginsberg, 1990; Kuratko et al., 1990; Heinonen, 1999). Intrapreneurship is a process, which occurs in interaction with the environment (Van de Ven, 1993). It appears that the environment plays a profound role in influencing intrapreneurship: the more dynamic, hostile and heterogeneous the environment, more emphasis an organisation places on intrapreneurial activities (Zahra, 1991, 1993). The intrapreneurship literature highlights the importance of organisational factors for the pursuit of intrapreneurship (Zahra, 1991; Heinonen, 1999; Antoncic and Histrich, 2001; Heinonen and VentoVierikko, 2002).

Management acts as a facilitator and promoter of intrapreneurship. Management activities affect organisational culture and the basic assumptions of intrapreneurship in terms of risk taking, innovation, creativity and learning to result into change within the organisation. Management activities ensure that the organisation has a clear and understood vision and direction. The organisational setting also includes the way work is being organised, such as power and responsibility, division of work, rules, etc. Altogether, these organisational factors direct the employees in their intrapreneurial efforts, as well as ensure that employees are empowered and committed (Thompson, 1999).

Previous studies indicate that managerial support, i.e. organisational structure, as well as reward and resource availability, affects intrapreneurial activities within the organisation (Hornsby et al., 1993; Antoncic and Hisrich, 2001). All the potential elements of intrapreneurship are the factors assumed to affect intrapreneurship on an organisational level. Within intrapreneurship, as within entrepreneurship, the individual is the key actor, making it understandable that why intrapreneur’s personal attributes, roles, and functions are focal areas of intrapreneurship research (Carrier, 1996). The individual skills and attitudes describe the capabilities and willingness of any potential intrapreneur to act intrapreneurially. It is evident that intrapreneurship provides a ground for competitive advantage to an existing organisation.

Hi-tech Industries Traditional industries are conventional, use low technology and are labour/semi-automated, and which are evolutionary in nature with a very slow


phenomenon of development and change. Many of these are process industries where the sub-processes are interrelated and not independent. Thus, it is not possible to change individual sub-processes as the inputs and outputs of a sub-process do not match with the related processes. In the recent times, there is an emerging growth of hi-tech industries. These industries are mechanised/automated/knowledge-based, and use the latest upgraded technology. In these types of industries, adoption of advanced technology is very fast. They have extended knowledge base and are revolutionary in nature.

The factors differentiating traditional industry from hi-tech industry may have their impact on intrapreneurship. Length of work experience of an executive also affects intrapreneurship. One of the important and primary trait of intrapreneurs is risk taking. Many studies have suggested that risk taking in an executive increases with the length of work experience. Therefore, with increasing length of work experience, executives may contribute to intrapreneurship differently in hi-tech industries.

Objectives of the StudyTo determine the effect of total prerequisites of intrapreneurship on the total intrapreneurship outcome, its factors and dimensions amongst employees having 1 to 4 years and 7 to 10 years of work experience in hi-tech industries.

Research MethodologyThe present investigation is an exploratory study to understand the impact of total intrapreneurship prerequisites on the total intrapreneurship outcome, its factors and dimensions in Indian industries with special reference to hi-tech organisations. Further, the study has also focused on highlighting the effect of factors and dimensions of intrapreneurship prerequisites on the total intrapreneurship outcome, its factors and dimensions. The intrapreneurship prerequisites, work experience and type of industry being independent variables, the intrapreneurship outcome has been chosen as the dependent variable. The level of work experience in terms of length of service, and industry in terms of type of organisation were taken as under:


• Work experience: From 1 to 10 years• Industry: Hi-tech Industries

The DesignThe study was undertaken to test a null hypothesis formulated under research problems. During the first stage of the study, the effect of total prerequisites of intrapreneurship on the total intrapreneurship outcome, and its factors and dimensions amongst the employees having 1to10 years of work experience in hi-tech industries was determined.

SampleThe elements of the universe were comprised of employees with work experience of 1 to 10 years in hi-tech industries. The final sample of 80 executives was drawn on a random basis from various hi-tech industries located in and around Indore. An initial sample of 90 elements was collected for drawing the final sample of executives having work experience from 1 to 10 years, while controlling the effect of extraneous variables such as gender, background, education, and hierarchy by randomisation and elimination. The incomplete sets of measures were rejected besides those in which socially desirability scores were found beyond optimum range.

Tools for Data CollectionPrimary data was collected as per requirement of the research design. For this, two standardised psychometric measures were developed to elicit the responses from intrapreneurs: one for intrapreneurship prerequisites and another for the outcome. Factors of intrapreneurship prerequisites are enterprising, disciplined, achievement-oriented, influential, self efficient, action-oriented, people oriented, persistent, problem solving approach, composed, learning-oriented, receptive, quality of life, and the dimensions of intrapreneurship prerequisites are daring , prudent and erudite. Factors of intrapreneurship outcome are change and development, proactivity, empowerment, sense of responsibility, customer-orientation, and dimensions of intrapreneurship outcome are result and efficacy.


Tools for Data AnalysisTo test the difference between the means of samples of employees of all types of industries having 1–10 years of work experience with low and high responses of prerequisites with the sample size of more than 30, the ‘z’ test was used.

The sample was classified into high and low total prerequisites of intrapreneurship, and ‘z’ values of the total outcome. Factors and dimensions of intrapreneurship outcome were computed to test the eight null hypotheses out of which five were rejected (Table 1).

H01

:

Total prerequisites of intrapreneurship do not affect the total outcome of intrapreneurship amongst the employees having 1to 10 years of work experience in high-tech industries.

The hypothesis stands rejected (z = 3.03, < p. 0.01).

Thus, employees with high total prerequisites of intrapreneurship are higher in the total outcome of intrapreneurship amongst the employees having 1 to 10 years of work experience in high-tech industries.

H02

:

Total prerequisites of intrapreneurship do not affect the change and development factor of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience in high-tech industries.

The hypothesis stands rejected (z = 8.39, p < 0.01)

Thus, employees with high total prerequisites of intrapreneurship are higher in the change and development factor of intrapreneurship outcome amongst the employees having 1to10 years of work experience in high-tech industries.

H03

:

Total prerequisites of intrapreneurship do not affect the empowerment factor of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience in high-tech industries.

The hypothesis stands rejected (z = 6.75, p < 0.01).

Thus, employees with high total prerequisites of intrapreneurship are higher in the empowerment factor of intrapreneurship outcome amongst the employees having 1 to10 years of work experience in high-tech industries.


H04

:

Total prerequisites of intrapreneurship do not affect the customer-orientation factor of intrapreneurship outcome amongst the employees having 1 to10 years of work experience in high-tech industries.

The hypothesis stands accepted.

H05

:

Total prerequisites of intrapreneurship do not affect the proactivity factor of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience in high-tech industries.


H06

:

Total prerequisites of intrapreneurship do not affect the sense of responsibility factor of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience in high-tech industries.


H07

:

Total prerequisites of intrapreneurship do not affect the result dimension of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience high-tech industries.


Thus, employees with high total prerequisites of intrapreneurship are higher in the result dimension of intrapreneurship outcome amongst the employees having 1 to10 years of work experience in high-tech industries.

H08

:

Total prerequisites of intrapreneurship do not affect the efficacy dimension of intrapreneurship outcome amongst the employees having 1 to 10 years of work experience in high-tech industries.


Thus, employees with high total prerequisites of intrapreneurship are higher in the efficacy dimension of intrapreneurship outcome amongst the employees having 1 to10 years of work experience in high-tech industries.

Table 1: Test of Significance between the Means of Total, Factors and Dimensions Intrapreneurship Outcome as a function of High and Low Total

Prerequisites of Intrapreneurship (z-test)M X-1 SD X-1 M X-2 SD X-2 Z Value

TIO 4.2586 0.364 3.9709 0.5879 3.034 **OF1 4.4247 0.414 3.5506 0.5287 8.3967**


M X-1 SD X-1 M X-2 SD X-2 Z ValueOF2 4.4175 0.2042 3.8333 0.6001 6.7504**OF3 4.0737 0.2505 4.159 0.7217 0.972OF4 4.3904 0.4265 4.3376 0.6066 0.622OF5 3.9868 0.529 3.9744 0.4828 0.153OD1 4.2492 0.2689 3.8548 0.6039 4.806**OD2 4.2649 0.2555 4.0484 0.3979 3.812**

TIO: Total intrapreneurship outcomeOF1: Change and development factor of intrapreneurship outcomeOF2: Empowerment factor of intrapreneurship outcomeOF3: Customer-orientation factor of intrapreneurship outcomeOF4: Proactivity factor of intrapreneurship outcomeOF5: Sense of responsibility factor of intrapreneurship outcomeOD1: Result dimension of intrapreneurship outcome OD2: Efficacy dimension of intrapreneurship outcomeM X-1: Outcome mean of the employees having high total prerequisites M X-2: Outcome mean of the employees having low total prerequisites SD X-1: Standard deviation of the employees having high total prerequisites SD X-2: Standard deviation of the employees having low total prerequisites *: Significant at 0.01 level.

ConclusionEmployees with high total prerequisites of intrapreneurship are higher in the total intrapreneurship outcome, its factors of change and development, and empowerment, as well as dimensions of result and efficacy amongst the employees having 1to10 years of work experience in high-tech industries.

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Resource, Development and Innovation in the Indian Industry

S.R. Sheeja*

ABSTRACT

Research and Development (R&D) has a major role in economic development. While developed countries give much importance to research and innovation, these remain as relatively unexplored areas in less developed countries. In the current global scenario, Indian firms have to reorient themselves to R&D-based innovation, as their products have to compete with highly technology-based products of advanced nations in local and international markets. Against this background, this article attempts to examine whether there has been significant increase in R&D expenditure in the Indian industry after the introduction of the new economic policy in 1991. The study reveals that low priority attached to R&D in India is a matter of concern. Out of the total national R&D expenditure, the share of the Industrial sector is very low. The pharmaceutical group appears to be the most innovative segment among various groups of industries. In comparison with their counter parts in the public sector, private sector firms focus more on R&D activities.

Keywords: R&D Expenditure, Innovation, Industrial R&D

Introduction

There is widespread recognition that Research and Development (R&D) is

* School of Distance Education (SDE), University of Kerala, Senate House Campus, Trivandrum, Kerala.



a key and vital component of economic development. It is a set of related activities undertaken to create innovations. OECD Frascati Manual defines (OECD, 1963) R&D as ‘creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use this stock of knowledge to devise new applications’. R&D activities are essential for design and development of new products, improvement in the quality of products, introduction of new raw materials, energy conservation, etc. Many empirical studies (Griliches, 1984; Mansfield, 1995) have pointed out that investment in R&D is positively associated with economic growth. The existence and strength of the association between R&D activities and economic growth, however, depend on the capacity of each region to transform R&D investment into innovation1 and eventually innovation into economic growth.

In this era of globalisation, countries and firms have to reconfigure their competencies (Mahajan, 2011) to survive and succeed in the rapidly changing business environment. Success depends on the capacity to generate new scientific knowledge, and to transform it to commercial applications. R&D-based innovations are essential for firms to survive and compete in the global market. While developed countries give much importance to research and innovation, these remain as relatively unexplored areas in less developed countries. Given the limited financial resources, developing countries have been slow in using technology to produce good quality and low cost products to compete with highly technology-based products of advanced nations in local and export markets.

Against this background, like other developing countries, India also needs to gear up local R&D to enhance its technological capability. For business enterprises that have paid little attention to innovative activities, reorienting themselves to R&D-based innovation is a difficult task. The government has been encouraging industrial units to take up R&D activities by paying special attention to promotion and support to R&D. It has implemented several fiscal measures, like tax incentives, tax holidays, excise and customs duty schemes, special incentives to emerging sectors, etc. India has declared 2010–20 as the ‘Decade of Innovation’ and has also established the National Innovation Council. The Science,


Technology and Innovation Policy of 2013 (STIP, 2013) aims to bring further perspectives to bear on innovation in the Indian context.

Financial and human resources represent the principal inputs to R&D and, often, they are used as indicators of the commitment of industry to innovation. Level of R&D expenditure and ratio of R&D expenditure to Gross Domestic Product (GDP) are the most commonly used measures of innovativeness as they capture the resources devoted to improve technological capabilities in the future.

There are only a few attempts (Mani, 2008; Bhattacharya and Lal 2008; Sheeja, 2004) to examine whether there has been significant increase in R&D expenditure in the Indian industry after the introduction of the new economic policy in 1991. In this context, the main objective of this article is to throw light on the important trends and pattern of R&D expenditure in the Indian industry in the post-liberalisation period. Such an exercise is essential for understanding whether the R&D efforts in India are keeping pace with the expansion of the industry and the economy in general. The present study is based on the official statistics2 on R&D published by the Department of Science and Technology (DST), Government of India.

The structure of the article is as follows: The second section describes trends and pattern of R&D investment in India with a focus on industrial R&D. The third section compares the innovative efforts of private and public sectors. The fourth and concluding section sums up the main findings of the article.

Trends and Pattern of R&D Investment in the Indian Industry

Aggregate R&D expenditure in India increased considerably during the post-liberalisation period (Table 1). It increased from Rs. 4,513 crore in 1991–92 to Rs. 37,778 crores in 2007–-08. In terms of absolute amount, there is substantial increase in R&D investment. However, the priority a nation attaches to a particular sector can be assessed in terms of its relative share in GDP. The relative share of R&D in India’s GDP is very low as it is only around 0.8 per cent of GDP. As shown in Table 1, it was less than 0.80 per cent in the 1990s and slightly improved from 2000 onwards, and by 2007–08 it became 0.88 per cent of GDP. Here, it is


worth reminding ourselves that the Science, Technology and Innovation Policy of 2003 (STIP 2003) had targeted to raise the expenditure on R&D to 2 per cent of GDP by the end of tenth five year plan. The National Innovation System failed miserably in achieving this target. The new STIP 2013 also envisages enhancing R&D expenditure to 2 per cent of GDP. As the business sector is gripped by recessionary conditions, again this is a difficult task (Mani, 2013).

Average growth rates in total expenditure have been worked out. Indian R&D expenditure showed an average growth rate of 14.42 per cent during 1991–2008. The average annual growth rate was 15.74 per cent during 1991–2000 and 13.09 per cent in 2000–08.

Table 1: R&D Expenditure in India Since 1991 (Rs. crores)

Year R&D Expenditure R&D Expenditure as Percentage of GDP1991–92 4,512.81 0.781992–93 5,004.60 0.761993–94 6,073.02 0.791994–95 6,622.44 0.731995–96 7,483.88 0.711996–97 8,340.17 0.721997–98 10,611.34 0.771998–99 12,473.17 0.79

1999–2000 14,397.62 0.822000–01 16,198.78 0.862001–02 17,038.15 0.822002–03 18,088.16 0.802003–04 19,726.99 0.792004–05 21,639.58 0.842005–06 28,776.65 0.892006–07 32,941.64 0.872007–08 37,777.90 0.88

Source: Various reports of DST, GOI.

An international comparison (Table 2) of relative shares of R&D expenditure of some developed, as well as developing countries shows that India is in the lowest spending category (less than 1 per cent category). China’s position is in the second category as it spends more than 1.4 per


cent of GDP for R&D. Most of the developed countries spend a higher proportion of GDP for R&D activities. While Israel spends more than 4.5 per cent of GDP for R&D, countries like Japan and Sweden spend 3.4 per cent and 3.8 per cent of GDP respectively on R&D. Given the international trend, the declining importance attached to R&D in India is a matter of serious concern. This widens the already existing technology gap between India (Kumar and Aggarwal, 2000) and other industrialised countries. Gearing up of R&D expenditure is the need of the hour as far as the Indian economy is concerned.

Table 2: Relative Share of R&D: An International Comparison0.0 –1.0 (%) 1.1–2 (%) above 2%

Brazil (0.82)

Netherlands(1.69)

France(2.12)

India (0.88)

Canada(1.97)

Germany(2.52)

Pakistan(0.44)

China(1.42)

Israel(4.53)

Sri Lanka(0.19)

UK(1.80)

Japan(3.40)

Mexico(0.50)

Australia (1.78)

Sweden(3.82)

Argentina(0.49)

Netherlands(1.69)

USA(2.61)

Source: R&D Statistics 2007–08, DST, GOI.

In India the central government continues to shoulder the major share of financial resources devoted to R&D activities. Out of the total national expenditure, the central sector (central government inclusive of public sector industry) with its contribution of nearly 59 per cent accounts for the bulk of R&D expenditure.. The share of private sector3 is only around 30 per cent. An examination of the pattern of R&D expenditure in India in the post-liberalisation period (Table 3) reveals that, during 1991–92 to 2000–06, around 70 per cent of R&D expenditure was incurred by the institutional sector, and the industrial sector accounts for nearly 25–30 per cent. The small share of industrial sector in the national R&D expenditure is one of the major handicaps of Indian R&D system. In most of the developed countries, the share of industrial4 sector


in national R&D expenditure is more than 50 per cent (R&D statistics

2007–08, DST, GOI).

Table 3: Structural Pattern of R&D Expenditure in India (Rs. crores)Year Institutional R&D

expenditureIndustrial

R&D expenditureTotal R&D expenditure

1991–92 3,391.48(75.15)

1,121.33 (24.85)

4,512.81(100)

1992–93 3,654.4(73.02)

1,350.2(26.98)

5,004.6(100)

1993–94 4,547.67(74.88)

1,525.35(25.12)

6,073.02(100)

1994–95 4,888.96(73.82)

1,733.48(26.18)

6,622.44(100)

1995–96 5,429.23(72.55)

2,054.65(27.45)

7,483. 88(100)

1996–97 6,007.16(72.03)

2,333.01(27.97)

8,340.17(100)

1997–98 7,735.67(72.9)

2,875.67(27.10)

10,611.34(100)

1998–99 9,158.25(73.41)

3,314.92(26.6)

12,473.17(100)

1999–2000 10,982.16(76.28)

3,415.46(23.72)

14,397.62(100)

2000–01 12,432.57(76.75)

3,766.21(23.25)

16,198.78(100)

2001–02 12,978.09(76.17)

4,060.06(23.83)

17,038.15(100)

2002–03 13,630.97(75.36)

4,457.19(24.64)

18,088.16(100)

2003–04 14,164.69(71.80)

5,562.30(28.20)

19,726.99(100)

2004–05 14,342.74(66.28)

7,296.84(33.71)

21,639.58(100)

2005–06 20,028.18(69.60)

8,748.47(30.40)

28,776.65(100)

Note: figures in brackets indicate percentage.Source: Various reports of DST, GOI.


The following pages focus only on R&D expenditure carried out in the Indian industry. Table 4 shows the distribution of R&D units and R&D expenditure among the important segments of the Indian industry. Out of the 1220 R&D units, the largest number (176) of units was in the chemical industry group. On the basis of number of R&D units, Drugs and Pharmaceuticals (161) and Electrical and Electronic (144) equipment occupied the second and third positions respectively. The highest percentage share (37.36 per cent) of R&D expenditure was incurred by the Drugs and Pharmaceutical group. The Pharmaceutical group is one of the most innovative industries in the Indian manufacturing sector. The Transportation segment occupied the second position by contributing 14.74 per cent. These two industrial groups together contributed around 52 per cent of the total industrial R&D. It is interesting to observe that these two segments of the Indian industry together account for more than half of the total industrial R&D.

Table 4: Distribution of Industrial R&D Among Major Industrial GroupsIndustry Group No. of R&D Units Percentage Share

of total Industrial R&D Expenditure

Drugs and Pharmaceuticals 161 37.36Transportation 64 14.74Defence Industries 16 6.89Electricals and Electronics 144 5.68Chemicals (other than fertilizers) 176 4.35Fuels 23 4.32Information Technology 21 4.21Bio-Technology 71 3.68Metallurgical Industries 61 3.07Industrial Machinery 31 1.84Telecommunications 32 1.83Others 420 12.05Total 1,220 100

Source: R&D Statistics 2007–-08, DST, GOI

The average growth rates of R&D expenditure of major industrial groups in the Indian industry during 1991–2006 have been calculated (Table 5). The highest average growth of 49 per cent was observed in the Information


Technology segment. Drugs and pharmaceuticals occupied the second position with a growth rate of 30 per cent, followed by Transportation which experienced 20.6 per cent growth in R&D expenditure. Among these nine segments of the Indian industry, Drugs and Pharmaceuticals is the only sector in which R&D expenditure increased at a substantially higher rate during 2000–06 in comparison with the previous period. Fuels experienced almost the same growth rate during these two time periods. It is quite distressing to see that in the case of all other segments the average growth rate of R&D expenditure declined during the second period.

Table 5: Average Growth Rate of R&D Expenditure of Major Segments of the Indian Industry

Industry Group Industrial Sector1991–2000 2000–06 1991–2006

Metallurgical Industries 13.14 7.74 10.44Fuels 14.18 14.42 14.30Electrical and Electronic Equipment 11.49 9.24 10.37Telecommunication 12.94 9.05 11.00Transportation 22.57 18.71 20.64Information Technology 76.85 21.63 49.24Chemicals 18.16 3.41 10.79Drugs and Pharmaceuticals 24.89 34.96 29.89Defence 17.48 10.61 14.05

Note: Figures indicate percentage. Source: Calculated from various reports of DST, GOI.

A Comparison between Public and Private Sectors

The break-up of aggregate industrial R&D expenditure by public and private sectors in the post-liberalisation period is shown in Table 6. Data show that, with in the Indian Industry, the private sector’s contribution was higher than that of the public sector throughout the period. While the share of private sector was less than 65 per cent during 1991–94 and it increased to almost 80 per cent during 1995–96. There was further increase in the percentage share of the private sector and from 1997–98 onwards, and by the year 2005–06, almost 85 per cent of industrial R&D was undertaken by the private sector. As compared to the public sector, the private sector has more number of R&D units also. According to


latest available data (R&D Statistics 2007–08, DST), out of 1,755 R&D units in the Indian industry 1,643 units ( 93.6 per cent) are in the private sector and there are only 112 units (6.4 per cent ) in the public sector. So both in terms of number of units and share of R&D expenditure, private sector is the major player within the Indian industry.

Table 6: Break-up of R&D Expenditure Within the Industrial Sector (Rs. crores)

Year Public Sector Private Sector Industrial Sector1991–92 484.39

(36.67)836.25 (63.33)

1,320.64(100)

1992–93 513.95 (38.06)

836.25 (61.94)

1,350.20(100)

1993–94 542.81 (35.59)

982.54(64.41)

1,525.35(100)

1994–95 414.61 (23.92)

1,318.87(76.08)

1,733.48(100)

1995–96 427.58 (20.81)

1,627.07(79.19)

2,054.64(100)

1996–97 512.73 (22.20)

1,796.96(77.81)

2,309.69(100)

1997–98 539.24 (18.11)

2,438.25(81.89)

2,977.49(100)

1998–99 651.02(18.92)

2,790.41(81.08)

3,441.42(100)

1999–2000 730.76(17.82)

3,365.38(82.16)

4,096.14(100)

2000–01 820.28(16.81)

4,058.83(83.19)

4,879.11(100)

2001–02 NA NA NA

2002–03 1,078.07(23.56)

3,498.30(76.44)

4,576.37(100)

2003–04 1,091.03(19.61)

4,471.27(80.39)

5,562.30(100)

2004–05 1,257.88(17.24)

6,038.96(82.76)

7,296.84(100)

2005–06 1,304.26(14.91)

7,444.21(85.09)

8,748.47(100)

Note: Figures in brackets indicate percentage. Source: Various reports of DST, GOI.


The average annual growth of R&D expenditure in the industrial sector (Table 7) during 1991–2006 is 16 per cent. While the private sector experienced a high growth rate of 19 per cent, the corresponding figure for the public sector was only less than 9 per cent. However, compared to the 1990s, the average growth rate was lower in the industry and its private sector during 2000–06.

Table 7: Average Growth of R&D Expenditure in the Indian Industry (Percentage)

Sector 1991–2000 2000–06 1991–2006Public 7.35 10.29 8.82Private 22.79 15.41 19.10

Industrial Sector 17.91 14.24 16.08

Note: Figures indicate percentage. Source: Calculated from various reports of DST, GOI.

A comparison between the average growth rates in R&D expenditure of major industrial groups within the public sector and private sector is presented in Table 8. Within the public sector, the highest average growth was found in transportation (44 per cent) while the pharmaceutical group exhibited a negative growth rate. All industrial groups, except Transportation, Drugs and Pharmaceuticals, and Chemicals, experienced a lower average growth of R&D expenditure during 2000–06 in comparison with the previous period. Within the private sector, the highest growth rate in R&D expenditure was observed in Information Technology (61 per cent), followed by Fuels (33 per cent) and Drugs and Pharmaceuticals (31.6 per cent). In segments like Fuels, Telecommunication, and Drugs and Pharmaceuticals, the growth rate of R&D was higher in the second period (2006–07) as compared to the previous period. Here, it is worth noting that even though Fuels experienced a high growth rate, the absolute amount spent on R&D was much less, where as, sectors like Drugs and Pharmaceuticals incurred a sizeable amount for R&D. The private sector investment in R&D is concentrated in two or three industries, namely, the Pharmaceuticals, Chemicals and Automotive industries.


Table 8: Average Growth of R&D: A Comparison Between Public and Private Sector (Percentage)

Industry Group Public Sector Private Sector1991–2000

2000–06

1991–2006

1991–2000

2000–06

1991–2006

Metallurgical Industries 9.74 5.28 7.51 21.84 9.94 15.89Fuels 14.70 14.01 14.36 15.26 52.30 33.30Electrical and Electronic Equipment

34.08 −3.63 15.25 15.41 13.89 14.65

Telecommunication 13.35 −7.27 3.04 18.20 30.32 24.26Transportation −12.89 101.72 44.42 10.56 17.65 14.11Chemicals −0.66 14.13 6.73 6.39 3.19 4.79Drugs and Pharmaceuticals −7.05 −4.19 −5.62 27.86 35.29 31.58Defence 15.98 10.23 13.11 NA 53.38 NAInformation Technology NA 6.63 NA 99.54 23.07 61.31

Source: Calculated from various reports of DST, GOI.

Resource and development intensity4 is an indicator used to assess the relative importance given by industries to R&D. R&D intensity in the

Table 9: R&D Intensity in the Indian IndustryYear Public Sector Private Sector

1991–92 0.47 0.601992–93 0.44 0.671993–94 0.44 0.711994–95 0.26 0.621995–96 0.25 0.651996–97 0.30 0.641997–98 0.32 0.601998–99 0.35 0.54

1999–2000 0.34 0.482000–01 0.32 0.502001–02 0.27 0.612002–03 0.38 0.462003–04 0.35 0.542004–05 0.33 0.622005–06 0.30 0.66

Source: Various reports of DST, GOI.


Indian industry is only 0.55 which implies that the industry spends only 55 paise per 100 rupees of sale on R&D activity. This clearly indicates that Indian firms assign low priority to R&D activities. In most of the developed countries, the R&D intensity varies between 3−4 percent (‘R&D

statistics 2007−08’).

A comparison between public and private sectors with respect to R&D intensity is shown in Table 9. Throughout the period, compared to the public sector, R&D intensity was higher in the private sector. In 2005–06, R&D intensity is 0.66 in the private sector and 0.30 in the public sector. This implies that while the firms in private sector spent 66 paise per 100 rupees of sale on R&D activity, firms in the public sector spent only

30 paise out of 100 rupees sales.

Conclusion

Even though there has been substantial increase in the aggregate amount devoted to R&D in the post-liberalisation period, its relative share in GDP is very low. This is a matter of concern especially in view of the critical role that R&D and innovations have in the growth process. As the industrial sector accounted for a comparatively smaller share of national R&D, gearing up of industrial R&D is essential for the Indian economy. Within the industry, R&D is concentrated in two segments, namely, Drugs and Pharmaceuticals, and Transportation. The Pharmaceutical group is the most innovative segment of the Indian manufacturing sector. The analysis also revealed that R&D intensity is very low in the Indian industry. Low R&D intensity indicates that Indian firms are not spending even one rupee out of hundred rupees of sales turnover on R&D.

Within the industry, in terms of both the number of R&D units and amount of R&D expenditure, the private sector outweighs the public sector. Moreover, the average growth of R&D expenditure in the private sector was more than twice the corresponding figure for the public sector. Compared to the public sector, the private sector has higher R&D intensity also. All these findings suggest that by realizing the vital role of R&D, industrial units in the private sector focused more on R&D efforts while their public counterparts failed to devote sufficient attention to R&D activities.


The findings of the study confirm that, in today’s knowledge-based global environment, the low priority attached to R&D activity in the Indian industry is a critical issue. Expansion of industrial R&D activities is the need of the hour as far as a developing country like India is concerned.

Notes

1. Innovation is the transformation of new knowledge and ideas into commercial applications.

2. The most authentic source of data regarding R&D expenditure in India is ‘Research and Development Statistics’, published by the National Science and Technology Management Information System (NSTMIS), Department of Science and Technology (DST), Government of India. This report is prepared at periodic intervals. At present, the latest available report of DST is the ‘R&D Statistics 2007–08’. This report contained data on R&D expenditure regarding the national economy up to the year 2007–08 and the industrial sector up to 2005–06.

3. See R&D Statistics 2007–08, http:// nstmis-dst.org/rndststop07-08.htm, accessed on 30 May 2013.

4. R&D intensity is R&D expenditure expressed as a percentage of sales turnover.

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Chemical Industry in India’, Ph.D Thesis submitted to the University of Kerala, Thiruvananthapuram, 2004.

Women Entrepreneurship as the Way for Economic Development

Sabiha Fazalbhoy*

ABSTRACT

The role of women entrepreneurs has changed over the years in the world. Participation and their importance have been commendable in the country’s economic growth and development. The World Development Report, 2012 represents that women owned businesses show great potential source of future for economic growth and job creation. Therefore, many initiatives have been started by United Nations to promote and motivate women entrepreneurship in developing and under developed countries, such as efforts in Sub-Saharan African countries.

Looking at the above opportunities, India has also supported many women entrepreneurs by providing loans and advances, helping them to establish their business, making them self- sufficient by providing vocational skills, and creating many jobs for other women in the respective areas. These opportunities are need-based in India, and many factors are driving these forces.

This article analyses the role of women entrepreneurs with respect to the banking institutions. This article studies these aspects in four parts; the first part deals with growth of women entrepreneurs in India, the second part studies tapping this growth in financing women entrepreneurs which is a major problem of failure in their businesses, third deals with the role of self help groups (SHGs) in promoting finances and empowering them through capacity building

* Symbiosis Centre for Management Studies, Symbiosis International University, Pune



programmes, and the fourth part deals with future policies of the government providing conducive environment for their business and for their livelihood.

Keywords: Women Entrepreneurs, Financing, Self Help Groups, Government Policies

Introduction‘You can tell the condition of a nation by looking at the status of its women.’ – Jawaharlal Nehru

Empowerment of women has emerged as an important issue in recent times. The economic empowerment of women is being regarded these days as a Sine-quo-non of progress for a country; hence, the issue of economic empowerment of women is of paramount importance to political thinkers, social scientists and reformers.

The emergence of women entrepreneurs and their contribution to the national economy is quite visible in India. The number of women entrepreneurs has grown over a period of time, especially in the 1990s. Women entrepreneurs need to be lauded for their increased utilisation of modern technology, increased investments, finding a niche in the export market, creating a sizeable employment for others, and setting the trend for other women entrepreneurs in the organised sector. While women entrepreneurs have demonstrated their potential, the fact remains that they are capable of contributing much more than what they already are. Women’s entrepreneurship needs to be studied separately for two main reasons. The first reason is that women entrepreneurship has been recognised during the last decade as an important untapped source of economic growth. Women entrepreneurs create new jobs for themselves and others, and also by being different. They provide the society with different solutions, like management, organisation and solutions to business problems, as well as the exploitation of entrepreneurial opportunities. The second reason is that the topic of women in entrepreneurship has been largely neglected both, in society in general and in the social sciences. Entrepreneurship amongst women has been a recent concern. Women Entrepreneurs may be defined as the women or a group of women who initiate, organise and operate a business enterprise. The government of India has defined women


entrepreneurs as an enterprise owned and controlled by a woman having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of employment generated in the enterprise to women. Like a male entrepreneur a women entrepreneur has many functions. They should explore the prospects of starting new enterprises; undertake risks, introduction of new innovations, coordination administration and control of business, and providing effective leadership in all aspects of business. This article analyses the role of women entrepreneurs in the growth of the country’s economy and the impact of banking institutions on their growth. The study is divided into four parts; the first part deals with the growth of women entrepreneurs in the country, the second part deals with tapping this growth through finances obtained through banking institutions, third deals with the role of SHGs in empowering women entrepreneurs, and the fourth part deals with policies of the government in providing conducive environment for their business and growth.

Literature Review

The literature review is divided into four parts. The first part of the literature review showcases the growth of women entrepreneurs in India. It is estimated that women entrepreneurs presently comprise about 10 per cent of the total number of entrepreneurs in India, with the percentage growing every year. If the prevailing trends continue, it is likely that in another five years, women will comprise 20 per cent of the entrepreneurial force (Saidapur et al., 2012). The studies also reveal that a number of women entrepreneurs have been encouraged to undertake entrepreneurial activities.

Empirical evidence shows that women contribute significantly to the running of family businesses mostly in the form of unpaid effort and skills. The development of women entrepreneurship has become an important aspect of our plan priorities. Several policies and programmes are being implemented for the development of women entrepreneurship in India (www.indiatogether.org/women/business/renuka vishwanathan).The case of Rama Devi, who is currently president of the Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP), portrays that she was pushed into her current business,which was initially started by her husband and ran into huge losses, although today she can claim to have revived


Shivani Engineering Industries (articles.economictimes.indiatimes.com). According to Sanjukta Mishra, a study by Dr Joshi, H.G. Ms Veena Rao ICTTM Global Institute of Management, Bhubaneswar-the industrial performance of Asia-Pacific region propelled by Foreign Direct Investment (FDI), technological innovations and manufactured exports has brought a wide range of economic and social opportunities to women entrepreneurs. The development of women entrepreneurship has become an important aspect of our plan priorities. Several policies and programmes are being implemented for the development of women entrepreneurship (India.http://www.indianmba.com/Faculty_Column/FC1073/fc1073.html). The second part of the literature review focuses upon the problem of finances for women entrepreneurs which has led to several failures. 2012 shows that women often have fewer opportunities than men to gain access to credit for various reasons, including lack of collateral, unwillingness to accept household assets as collateral, and negative perceptions of female entrepreneurs by loan officers. A study by Das (2000) shows that more than 50 per cent of the women used their own funds or funds borrowed from their spouse or family to set up their business. Another such study done among women entrepreneurs in Coimbatore District, Tamil Nadu points out financing the enterprise as a major problem faced by the women entrepreneurs (Mangai et al., 1992). Financial problem is a major problem faced by all respondents. They face this problem at the time of starting, as well as during the operations of their business enterprises, problem of getting loan and subsidy, insistence of collateral security and margin money requirement, time taken to process loan, tight repayment schedule, poor financial management and maintenance of accounts Jayammal, 2012)According to a report by the United Nations Industrial Development Organisation (UNIDO), ‘despite evidence that women’s loan repayment rates are higher than men’s, women still face more difficulties in obtaining credit’, often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995). Lack of knowledge about marketing the product was the major problem faced by 76 per cent of the respondents. 74 per cent faced financial problems regarding loan and subsidy, whereas inadequate government assistance was reported as a problem by 70 per cent respondents (International Journal of Social Science and Interdisciplinary Research, 2013). Women entrepreneurs are more likely


to cite access to finance as the first or second barrier to developing their businesses (BBR Women Entrepreneurship 2013).

The third part of the literature review studies the impact and role of SHGs in the growth of women entrepreneurs in promoting finances for them, and empowering them through capacity building programmes. There are significant gender differences in the access to and use of credit,particularly formal credit. The role of micro-credit is to improve the socio and economic development of women and improve the status of women in households and communities. As said by Sathiabama, the micro entrepreneurships are strengthening women empowerment and removing gender inequalities. The SHG’s micro-credit mechanism makes the members to involve in other community development activities. Micro-credit is promoting the small scale business enterprises, and its major aim is to alleviate poverty by income generating activities. Studies reveal that a number of SHGs, such as Abhinav Farmers Co-operative Society, Grassroots, Grameen Bank, Assam Tea Corporation, etc., are actively participating in empowering women by providing them support through credit and self supporting business activities. Studies also unveil the fact that SHGs are primarily established for women by the women, and in states like Tamil Nadu and Kerala they have been tremendously successful. NABARD also launched a pilot project for women on SHGs in collaboration with commercial banks and regional rural banks. In addition, refinancing facilities are available through national banks for financing under the non-farm sector. Studies in three states reveal that the SHGs established have helped in better recovery of loans, development of thrift and self help among members, effective use of credit for the purchase of income generating assets, and empowerment of women.

The fourth part of the literature review studies about the future policies of the government which provide a conducive environment for the business and livelihood of women entrepreneurs. According to the final report of the fourth All India census of the micro, small and medium enterprises (MSME) in the unregistered sector shows that the rural areas had a larger share of unregistered MSME sector as compared to urban areas in respect of enterprises, employment, gross output, and that the urban areas were dominated by the original value of plant and machinery and market value of fixed asset. Thus, rural area accounted for almost 60 per cent of the


total number of enterprises with their share contributing almost 57 per cent of employment, 50 per cent of investment in plant and machinery, 45 per cent in fixed assets and 56 per cent in gross output of the total unregistered MSME sector. However, in urban areas with more than 39 per cent of the enterprises contributing to almost 50 per cent of investment in P&M, 55 per cent in fixed investment, 43 per cent of employment and 44 per cent of the output of unregistered MSME sector, urban areas also contributed reasonably well to the growth of the MSME sector. Government policies for the unregistered sector, particularly in the rural sector, need to be developed keeping in mind the need of this sector. As pointed out by Sanjukta Mishra in her study, the current policies of the government provide direct and indirect financial support, Yojna schemes and programmes, technological training and awards, and federations and associations. However, these are not enough as most of the women entrepreneurs are based in the unorganised unregistered rural sector of the economy. The literature review conducted throws light upon the growth of women entrepreneurs in the country, challenges faced by them, and the financial constraints.

Data Analysis and InterpretationWomen entrepreneurship is growing at a rapid rate in the world. The factors influencing these women across sectors globally are opportunities created by globalisation, integrated markets and jobs, support from the family, major support from the government through various programmes started internationally and domestically for women entrepreneurs, improvement in their standards, and health and education. Table 1 shows the benefits of entrepreneurship and empowerment. This includes rise in income, self worth, self confidence and social status in life. Due to empowerment and motivation, women entrepreneurs create employment for many more women in the community and in a country. Then only a country will be considered inclusive.

The number of female-owned enterprises is growing at a faster pace than that of male counterparts. These figures are more visible in developed nations than developing nations. Still, few factors are restricting


Table 1: The Benefits of Women Entrepreneurship-EmpowermentS.

No.Benefits of

EntrepreneurshipEmpowerment

A Rise in economic status

Increased incomeIncreased consumptionControl over spendingConfidence in sustaining trend

B Self worth Finds greater ability to leadTo work in groupsTo resolve conflictFreedom to make business life and own decision in lifeGets recognition in work

C Self confidence To be proactiveTo face criticsTo take risks (calculated risk)To influence others

D Social status Positive imageMore gender equalitySociability–net workingInvolvement in community worksInvolvement in political activitiesEncouraging other women to entrepreneurship

Source: Geetha Sulur and Barani Gunatharam*

*Note: This case study has been done in Tamil Nadu on empowering women entrepreneurship.

women entrepreneurs in developing countries, like access to finance, lack of relevant education and experience, domestic responsibilities, and access to vocational skills and training. All these factors are limiting women entrepreneurs to excel in their respective fields. Out of all factors, the major problem lies with the access to finance. Table 2 suggests critical factors for the future growth of the firm with reference to fashion and apparel enterprises. Access to finance has registered 66.1 per cent and assistance with business planning has accounted for 18.6 per cent of the critical factors for future growth. This shows the importance and role of banks in financing women entrepreneurs to promote and ensure growth of enterprises in the long run.


Table 2: Critical Factors for the Future Growth of the Firm

S. No.

Category Percentage (%)

1 Access to finance 66.12 Access to new markets 5.13 Assistance with business planning 18.64 Providing benefits to workers 5.15 Finding skilled workers 5.1

Source: Veena Rao, Venkatachalam and Joshi, ‘Challenges faced by women entrepreneurs running micro, small and medium scale fashion and apparel business – A study on fashion and apparel enterprises in coastal Karnataka’.

In India, women entrepreneurs identified majorly with micro, small and medium enterprises because many women start their enterprises with a very low net worth (low budget enterprise) and ensure low risk. Therefore, women participation as per revenue is less due to the size of their enterprises, but create more volume and employment in various sectors (Annual report of MSME 2012–13) (Table 3). As per the fourth All India census of MSME, the number of women enterprises in the registered sector are 2.15 lakh (13.72 per cent) and unregistered sector are 18.06 lakh (9.09 per cent) of the total sectors. This figure clearly shows the number of women enterprises that are under the unregistered sector. This indicates that many women enterprises would start up their enterprises if the government makes policies for unregistered sector where more benefits can be reaped by women entrepreneurs. They could get more opportunities and benefits if they come under the registered sector.

The MSME sector contributes to 44.7 million enterprises. It creates employment for more than 80million jobs, this being the second largest after agriculture. It contributes 45 per cent of the total industrial manufacturing and above 40 per cent of India’s total exports. The micro- enterprise and micro-finance widely accepted development strategy for poverty reduction. This responsibility has been equally taken up by government, commercial banks and civil society. The role of SHGs in providing micro-finance has been enormous in last one decade. Self help groups with micro finance are effective in reducing poverty, empowerment women and creating self sufficiency in rural development. As per


the Annual Report of SHGs, an increasing number of micro-finance institutions prefer women members as they are better and more reliable borrowers. Considering the importance of the MSME sector and the need for rural development,the role of micro-finance through SHGs has been given due importance especially to women entrepreneurs,who are bringing economical and social changes in their livelihood.

Kerala and Tamil Nadu are such examples where women entrepreneurship and micro-enterprises have grown due to extensive support of SHGs. They have provided micro-finances, capacity building programmes by training women, and have nurtured them with their financial support. Today, the reserve bank of India (RBI) also understands the role and importance of SHGs in financing, and has extended medium sized loans to women entrepreneurs in support with NABARD. The beauty of women entrepreneurs is the motivation for other women to come up and participate with equal opportunities and maintain their enterprises. Across the world maximum start ups have failed due to financial problems faced by women entrepreneurs, but today due to SHGs, trust has been built amongst the women entrepreneurs to realize and make their dreams come true. Therefore, this type of growth is truly an inclusive growth in India.

Table 3: Women Entrepreneurship in India – A Study States No of Units

RegisteredNo. of Women Entrepreneurs

Percentage

Tamil Nadu 9,618 2,930 30.36Uttar Pradesh 7,980 3,180 39.84Kerala 5,487 2,135 38.91Punjab 4,791 1,618 33.77Maharashtra 4,339 1,394 32.12Gujarat 3,872 1,538 39.72Karnataka 3,822 1,026 26.84Madhya Pradesh 2,967 842 28.38Other States and UTs 1,4576 4,185 28.71Total 57,452 18,848 32.82

Source: Micro, small and medium industries report from the ministry under the Government of India, 2012–13.

As the table reveals, women entrepreneurs are present in all states of the country and self-help supplemented with mutual help can be a powerful


vehicle for the women entrepreneurs in their socio-economic development. They provide support through :

• Participativefinancialservicesmanagementaremoreresponsiveandefficient;

• Womenentrepreneursareprovidedwithcreditsupport,savingsandother services;

• Lowertransactioncostandmuchlowerriskcostsforthebanks;

• Creationofacommonfundbycontributingsmallsavingsonaregularbasis;

• Flexibleandademocraticsystemofworking;

• Loaning is done mainly on trust, with least documentation andwithout any security;

• Defaultsareraremainlyduetogrouppressure;and

• Periodicmeetingsofnon-traditionalsavings.

Thus SHGs provide support and empower women in establishing their businesses.

Conclusion

Women entrepreneurship is both about women’s position in the society and about the role of entrepreneurship in the same society. Women entrepreneurs face many obstacles, specifically in marketing their product (including family responsibilities), that have to be overcome in order to give them access to the same opportunities as men. The entry of rural women in micro- enterprises must be encouraged and aggravated. Rural women can do wonders by their effectual and competent involvement in entrepreneurial activities. The rural women have the basic indigenous knowledge, skill, potential and resources to establish and manage enterprise. Now, the need is for knowledge regarding accessibility to loans, various funding agencies, procedures regarding certification, awareness on government welfare programmes, motivation, technical skill and support from family government and other organisation. More over, formation and strengthening of rural women entrepreneur’s network must be encouraged. The banking institutions must offer formalised credit facilities, and


this sector must be included in the registered sector category by the government to promote entrepreneurship among rural women. This support will help the women to strengthen their family bonds through financing their businesses, and thus help in the economic growth of the country. This article highlights the importance and need of the rural women entrepreneurs to be included in the government’s registered sector which would pave the way for economic development of the country. Thus, it can be asserted that women entrepreneurs can perform better, both in urban and rural areas, given that the government provides them financial support by including them under the registered sector.

Referenceshttp://www.entrepreneur.com/article/227163http://www.indiatvnews.com/business/india/breaking-news-successful-female-

entrepreneurs-india-3242.html?page=7http://www.dcmsme.gov.in/schemes/treadwomen.htmhttp://www.dcmsme.gov.in/data-stat.htmhttp://www.dcmsme.gov.in/publications/pmryprof/pmryprofile.htmlhttp://www.dcmsme.gov.in/reports/CGTMSE%20AR%202012-13.pdfInternational Journal of Social Science and Interdisciplinary Research ISSN 2277

3630IJSSIR, vol. 2, no. 4, April, 2013.BBR Women Entrepreneurship, (2013).Saidapur et al., 2012.www.indiatogether.org/women/business/renuka vishwanathan apur et al., 2012.Mangai et al., 1992.Jayammal, G, Problems of Women Eentrepreneurs in Coimbatore, Retrieved September

12, 2012.Report by the United Nations Industrial Development Organization (UNIDO).India.http://www.indianmba.com/Faculty_Column/FC1073/fc1073.html.Entrepreneurial Development and structural support by Vasant Desai.Case studies on self help groups.

A Study on Entrepreneurial Seriousness Among Small Education-Based Business Owners in Bhilai

Sanjay Mishra* and Ranjeeta Mishra**

ABSTRACT

Lots of work has been done on the studies and factors affecting the entrepreneurial performance. According to most of the existing models motivation is the most important element for the success of small businesses. This study analyses entrepreneurial performance on a different parameter called Entrepreneurial Seriousness. The fundamental belief is that Entrepreneurial Seriousness is a strong pre-requisite to entrepreneurial performance and success of the venture. Various factors, like willingness to acquire knowledge, willingness to perform, willingness to adopt difficult skills, willingness to take mental stress, need to achieve, willingness to maintain good relations with people, and desire to innovate and appreciate ideas were identified that affect the entrepreneurial seriousness. It included both entrepreneurs who primarily are teachers and coaches, and those who entered the business of education, coaching and training as investors, hence arranging for the factors of producing the service. They ranged from entrepreneurs dealing in self developed educational products and services to franchisees of different well-known players. The scope of the study is kept limited to Education-based Business Entrepreneurs

* Head Academics, Lotus Business School, Pune** Independent Researcher



in Bhilai. The sample is taken from the entrepreneurs operating in the education domain with an annual turnover of less than Rs. 2.5 million. They are all pre-dominantly single owners. The sample size taken is 62, of which 58 respondents were found suitable for analysis. Primary data is collected from the sample. The data collection technique has been a questionnaire based survey. Mean scores and Standard Deviation have been used for statistical analysis to draw conclusions. The conclusions drawn indicate that there is a pattern among the sampled entrepreneurs with respect to entrepreneurial seriousness that affects the performance directly or indirectly.

Keywords: Education Based, Bhilai, Business Entrepreneurs, Entrepreneurial Performance, Entrepreneurial Seriousness.

IntroductionMost of the studies and theoretical models on performance of enterprises, particularly pertaining to small businesses, motivation has been treated as the key element (Blawatt, 1995; Naffziger et al., 1994; Herron Robinson, 1993; Keats and Bracker, 1988; Cragg and King 1988; Hollenback and Whitener, 1988). The objectives that the entrepreneurs wish to seek from the ownership of a small business also have a bearing on the performance of the enterprise. The premise of the research is developing a better understanding on the entrepreneurial motivation that will help to study:

1. Behavioural patterns of Entrepreneurs.

2. Relationship between these patterns and the performance in business.

We however cannot undermine the impact of motivation on the business performance. For example, in the western world, entrepreneurs get into business with a worthy idea and the possibility of value building. In India and other developing economies, it is still a secondary option to failure in obtaining government jobs. Even the states like Gujarat that are known for Business and Entrepreneurial acumen are showing a decline in the instinct due to much lucrative options available in the government and private sector. Some of the communities like Marwaris, Sindhis and Punjabies display traditional interest in entrepreneurship. In addition to this, some of the work done reveals a clear relationship between the managerial style and entrepreneurial characteristics (Orhan, Scott, 2001; Parag Crammer


2001). This, in fact, has given rise to the concept of Intrapreneurship. Some of the forward looking and professionally managed companies like NIIT have been nurturing this idea by consistently recruiting managers with entrepreneurial characteristics, providing them some vital work experience with the business heads and then allowing them to set their own ventures as Intrapreneurs. Lots of studies have been undertaken to find the relationship between impacts of Formal Management Training on the growth related entrepreneurial attitude, planning skills, and growth pattern of enterprises. Most of the recent work done is with a focus of studying the internal drive of the entrepreneur that has lead to the success of the enterprise.

As motivation has been the basis of most of the theoretical models of entrepreneurial performance, it becomes logical to establish the drive that makes work for the business, and then to develop a method for the measurement of entrepreneurial seriousness. Together, these dual objectives would distinguish the work.

An Entrepreneur is defined as a person who is self employed, initiates, organises, manages and assumes responsibility for a business, and offers a personal challenge which happens to be the major driving force. He is open for accepting financial risks in lieu for additional gains in case the firm makes profits. It is quite often seen as an aversive career as it is envisaged with uncertainty, frustrations, impediments and failures. The topic of entrepreneurial motivation has evolved from organisational psychology. Early research followed the path of traits resulting in behaviour, like entrepreneur’s initiation, direction, sustainment, etc., that distinguish an entrepreneur from the general public. Major contributors were McClelland (1961) who discussed N for achievement (N-Ach) (high need for achievement) as a common personality trait present in entrepreneurs. Other major contributors are (Churchill and Lewis, 1986; Shaver and Scott, 1991).

Gilad and Levine (1986) proposed two closely related explanations of entrepreneurial motivation, called the Push and Pull theory, former being an outcome of lack of opportunities and job dissatisfaction resulting in entrepreneurship, the latter advocating the entry of people into entrepreneurship as a volunteering exercise due to independence seeking behaviour, self fulfilment, wealth and other desirable outcomes. Research


suggests that it is pull that brings in seriousness to the entrepreneurs’ behaviour (Keeble et al., 1992; Orhan and Scott, 2001). Process oriented models that are developed recently assume entrepreneurship as a complex cognitive function. Humans have the ability to think and predict possible future outcomes, and work on the possibility of their attainment. All these evaluations lead to a concept called entrepreneurial seriousness.

Victor Vroom (1964) is the mainstay of explaining entrepreneurial motivation in traditional cognitive models. Motivation is conceptualised as the product of expectancy, instrumentality and valence. Expectancy is analogous to measures such as perceived feasibility and self efficacy, measured in terms of answers to the question, ‘How confident you are towards your performing the task? Mone (1994) discussed two measures of self efficacy, process and outcome.

Process refers to confidence of successful completion of task, where as Outcome refers to people’s confidence towards achievement of results. Most of the modern models are based on these conceptions of an individual’s intent, such as desirability, outcome expectations, net benefits and perceived utility of decision taken. Entrepreneurial seriousness fundamentally deals with two questions:

1. Is entrepreneurship desirable to me?

2. Is entrepreneurship feasible for me? (Segal, Dan Boriga and Schoenfeld, 2005).

Organisation of the PaperThe paper discusses the profile of the town of Bhilai. It further discusses the methodology and literature review for establishing the dimensions of entrepreneurial seriousness followed by analysis and results of findings.

Background

The town of Bhilai, where the study is conducted, is one of the major Industrial centres of the state of Chhattisgarh. The population of Bhilai is around 1 million. It is a predominantly industrial town habituated by a cosmopolitan population mainly employed in the Bhilai Steel Plant. The literacy level is close to 100 per cent. Quality of life is fairly high


due to high disposable income. With the change in socio-political and economic scenario the lifestyle, demographic mix, employment patterns, etc., has changed considerably. Entrepreneurship has emerged as a new way of employment.

Bhilai is home to a host of industries ranging from steel to cement (with the presence of giants like SAIL, ACC, JAYPEE, BEC, SIMPLEX, HEG to name a few), rolling mills, earth movers’ manufacturing (Simplex), service organisations like hotels, restaurants, retail outlets, banks, financial services, insurance offices (with a presence of all major companies), high quality super speciality hospitals (ABSR, CCMH, JLNH&RC, RDC, etc.), apparel and garment outlets, cinema halls and other entertainment and socio-cultural centres, high quality schools (both owned by Bhilai Steel Plant and private players) and a number of good centres for higher education (including the state owned Technical University CSVTU, management, engineering, nursing, dental, education and many other regular colleges of high repute).

All the above mentioned are big and organised ventures involving large investments, and permissions and clearances from various agencies. Moreover, these are controlled by a small elite group of the town (< 0.1 per cent of the population). Another area where Bhilai has created enormous fame for itself is the coaching, teaching and training industry (mostly unorganised). These are generally owned by well qualified, belonging to middle class, ambitious young and middle-aged male entrepreneurs. The town has seen very successful/reasonably successful/not so successful/ failed/forced to leave the field of small time education-based entrepreneurs. Every year many new players enter the arena, and at the same time many leave or continue with losses. Few make it big and continue to dominate their respective segments year after year. It is this observation that has drawn me to conduct this study with an intention to examine the relationship between entrepreneurial seriousness and their performance in the venture.

Conceptual Framework

Entrepreneurship can be seen as an effort by an individual in order to capitalise on an available opportunity in the market place by arranging and managing the resources required to exploit opportunities. It is


hence a behavioural orientation of the individual that creates ventures of value to self and society. (Timmons 1994; Barton, Cunnigham, Lischoren, 1991; Gartner,1989). This helps recognize the role played by an entrepreneur at various stages of the complex development of the venture. (Hill and Mcgowan, 1996; Chell et al., 1991; Magowan and Rocks, 1995; Carsrud and Johnson, 1989). Entrepreneurs, in order to succeed, need a combination of personality traits, a propensity of creativity and innovation, and appropriate managerial skills. He is hence primarily a visionary and change agent. The effectiveness of an entrepreneur depends on the experience and motivation level, argues Griener (1972). Hence, knowledge and experience can be taken as key personal resources for an entrepreneur. Foresight is another key for entrepreneurial success that helps being prepared for unwarranted situations.

Entrepreneurial success happens to be composed of two traits: Personal Characteristics and Managerial Skills. Strategic awareness and motivation seem to be core elements in the success process and serious commitment towards the enterprise.

Seriousness is also related to the reward structure. Baumol (1994) suggests that entrepreneurs value reward and feel more motivated if the reward is useful, of high utility and desirable for his career. Parag and Cramer (2001) established that people turn into serious entrepreneurs if the expected reward is higher than the wages of gainful employment.

Two questions were asked by Shaver and Scott (1991) that decide on the degree of seriousness and choices made by the entrepreneur. These are ‘can I make a difference?’, and ‘do I want to do it?’. Shapero and Sokol (1982) discussed that the seriousness in entrepreneurial intention is also a function of perceived credibility and desirability.

To summarise, the framework that could be built from existing literature will comprise of dimensions, like willingness to acquire knowledge, to perform, adopt difficult skills, take mental stress, need to achieve, maintain a positive relation with others, and the desire to innovate and appreciate ideas. The two terms entrepreneurial motivation and seriousness may be closely related, but may not be the same for all intents and purposes.


MethodologyThe research is conducted among existing entrepreneurs. The scope of the study is kept limited to small time education-based business entrepreneurs in Bhilai. The sample is taken from the entrepreneurs operating in the education domain with an annual turnover of less than Rs. 2.5 million. They are all pre-dominantly single owners. Single owners are deliberately chosen as they bear the highest risk and can reach clear conclusions. The sample size taken is 62, out of which 58 respondents were found suitable for analysis. The 5 point Likert scale was administered having a five point agreement index. The average life of businesses was taken to be above 3 years. Out of many entrepreneurs in the category, the sample was drawn on local references and convenience. Primary data is collected from the sample. For the purpose of finalising the parameters a detailed interview of five entrepreneurs was conducted at the place of work or residence as per the choice of the respondent. The data collection technique has been a questionnaire based survey. Mean scores and Standard Deviation have been used for statistical analysis to draw conclusions.

Findings and Discussion

Table 1: Overall Finding of the Total Sample Seriousness Dimension Mean

ScoreStandard Deviation

Willingness to acquire knowledge 3.85 0.95Willingness to perform 4.22 0.77Willingness to adopt difficult skills 3.75 1.2Willingness to take mental stress 3.05 1.22Willingness to achieve 4.5 0.75Willingness to maintain positive relationship with others 3.5 0.6Willingness to innovate and appreciate ideas 3.45 1

The study indicated towards expected results with some interesting findings. The findings for the total sample are tabulated in Table 1. Mean scores and Standard Deviation for Entrepreneurial Seriousness are summarised. Willingness to achieve scores the highest mean value of 4.5, and the willingness to take mental stress scores 3.05 which is the lowest. Hence, it can be concluded that N-Ach is very high in all


entrepreneurs, irrespective of them being serious or non-serious. A closer look on other factors brings out the clear difference for serious and non-serious entrepreneurs in terms of other parameters as discussed later. The respondents were generally found to be averse to mental stress which is well expected as all the entrepreneurs are no different than normal human beings.

The study was carried further by dividing the respondents into serious and non- serious entrepreneurs as shown in Table 2. This was done by taking the mean scores of all the parameters for individual respondent. Respondents scoring above 3.5 were considered to be serious and less than 3.5 as non-serious. Out of the total sample 62 per cent were found to be serious. The study indicated towards some very interesting differences between the two types.

Table 2: Serious and Non-Serious Entrepreneurs Compared and Contrasted

Seriousness Dimensions

Serious Entrepreneurs

Non-serious Entrepreneurs

Mean DifferenceMean

ScoresStandard

DeviationsMean Scores

Standard Deviations

Willingness to acquire knowledge

4.2 0.5 3.1 1 1

Willingness to perform 4.5 0.49 3.6 0.86 0.86

Willingness to adopt difficult skills

4.22 0.7 3 1.3 1.12

Willingness to take mental stress

3.45 1 2.2 0.9 1.2

Need to achieve 4.7 0.4 3.7 1.01 0.7

Willingness to have positive relations with others

4 0.5 3.3 0.4 0.6

Willingness to innovate and appreciate new ideas

4 0.7 2.85 1.05 1.2

The serious entrepreneurs displayed a higher inclination towards acquiring new information and knowledge as compared to the non-serious counterparts with a mean difference of 1. They are found to be so as they are proactive in new knowledge search so as to remain competitive in the field. This is in conformance with the findings of the literature reviewed.


Serious and non-serious entrepreneurs show serious differences in the case of willingness to adopt difficult skills with mean scores of 4.22 and 3 with Standard Deviations of .7 and 1.3 respectively. Non-serious entrepreneurs have a tendency of outsourcing difficult skills which is evident in lowered margins resulting in further non-seriousness towards the business.

Another parameter that showed a sharp difference with high mean difference of 1.2 is willingness to take mental stress. The non-serious entrepreneurs were found to have less active motivation that would lead to involvement in business, leading to a high need of thinking and stress taking for running the business.

The non-serious entrepreneurs also showed a mental block towards new ideas. It was understood that it is primarily due to efforts put in by the two groups to improve business process. The ‘t’ test was conducted to find out the difference of means between the two groups on the identified dimensions. The value was found to be 3.9, which is significantly higher than the table value of ‘t’ which is equal to 2.179 at 95 per cent confidence level. It can hence be concluded that there is marked difference between the serious and non-serious entrepreneurs on the identified parameters of seriousness.

ConclusionThe result shows a marked difference between serious and non-serious entrepreneurs on the dimensions of willingness to take mental stress, willingness to adopt difficult skills, and willingness to appreciate new and innovative ideas. 36 entrepreneurs of a sample of 58 were found to be serious.

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Entrepreneurship: Theory and Practice, vol. 13, no. 4, Summer, 1989, pp. 47–68.Gilad, A. and M, Scot, ‘Strategic Awareness, Personal Commitment, and Planning

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Blawatt, K., ‘Defining an Entrepreneur: A Conceptual Model of Entrepreneurship’, CCSBE-CCPME Proceedings, 1995, pp. 893–921.

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Skill Development and Vocational Training in the Handicraft Sector in Jammu and Kashmir: Special Reference to District Anantanag

Showkat Ahmad Sheikh* and Sharad Tiwari*

ABSTRACT

Handicraft is a pivotal source of employment generation of Jammu and Kashmir state. This industry is unique in terms of skill design, cost and quality of products and thus provides a competitive advantage on other national and international players of handicrafts market. The various training centres train the large number of educated youths and the youth who had dropped out of the education system, giving them technical training to earn their livelihood. In the backdrop, the present research article is an endeavour to study various avenues of social and economic upliftment of the state in terms of revenue generation, foreign exchange, raising the standard of labour, and employment generation. The article focuses on the overall performance of skill development and the training programmes in the field of handicraft, how it can help generate the above features, and also thereby provide suitable suggestions in order to make the industry more market oriented, contemporary in skills and designs, and sustainable in future.

Keywords: Handicraft Industry, Employment, Production, Sales, Economic Development, Exports, Revenue

* Government Hamidia Arts and Commerce College, Barkatullah University, Bhopal, Madhya Pradesh



Introduction

The handicraft industry in Jammu and Kashmir is an important sector contributing to the overall development of current and other allied sectors in term of wealth and employment creation, thus occupying an important place in the economy of Jammu and Kashmir. It is basically a cottage industry and provides direct and gainful employment to more than 3 lakh people and has the potential to facilitate the path of raising the living standard of citizens residing within and outside the boundary of the state. The handicraft products have earned global acclaim for their exquisite designs, craftsmanship and functional utility. The woollen and silken carpets of the state remain unparalleled on the national scene for quality and design. The crewel embroidered pashmina, embroidered raffle shawls, pattern of Kani shawls, intricate wood carving, production of flora design on paper mache goods, etc., are some of the world famous traditional crafts of the state. In fact, the Kashmiri craftsman, possessing a unique talent for intricate workmanship, is one of our most important resources. This industry has a tremendous potential, and has to be perceived with concern and with a precise understanding of its values. As an export oriented industry, it has contributed considerably towards foreign exchange earnings worth crores of rupees annually. It is a cottage-based industry, which does not require heavy capital investment and heavy infrastructure such as machinery, buildings and power.

Planning Commission vide its order no. Q-20017/1/06/LEM/LP dated 6 March 2006 has constituted a Working Group on Skill Development and Training under the chairmanship of Secretary (Labour and Employment).

The terms of reference basically require that the existing skill development programmes may be reviewed with the intention of suggesting suitable strategies and mechanisms to meet future challenges. The terms of reference are fairly comprehensive and therefore, it requires a totalitarian approach towards all aspects of skill development programmes.

Importance of Skill Development and Training

Skills and knowledge are the driving forces of economic growth and social development of any country. The economy becomes more productive, innovative and competitive through the existence of more skilled human


potential. The level of employment, its composition, and the growth in employment opportunities are the critical indicators of the process of development in any economy. Increasing pace of globalisation and technological changes provide both challenges and growing opportunities for economic expansion and job creation. In taking advantage of these opportunities, as well as in minimising the social costs and dislocation, which the transition to a more open economy entails, the level and quality of skills that a nation possesses are becoming critical factors. Countries with higher and better levels ofskills adjust more effectively to the challenges and opportunities of globalisation.

Review of the Literature especially in Skill Development

Benchmarking of Skill Development Deficit and Plan to Achieve Target by 2022

According to the 2007–08 Economic Survey 64.8 per cent of India’s population would be in the working age of 15–64 years in 2026, up from 62.9 per cent in 2006. Other projections also indicate emergence of young India with 800 million in the productive age group by 2015, compared to 600 million in China.

According to a study conducted by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) India has a large population base of 1.14 billion with a demographic shift in favour of working age group (15–59 years) while the overall population is projected to grow at 1.4 per cent over the next 5 years. The working age is expected to grow at 2.15 per cent. If the present trend continues, 109 million persons will attain working age during the period of 2007–12. The net addition to the workforce is, therefore, expected to grow to 89 million of which around 13 million are likely to be graduates/post graduates, and about 57 million are likely to be school drop outs or illiterates. A significant share of incremental demand is likely to be for skilled labour–graduates and vocationally trained people are expected to account for 23 per cent of incremental demand by 2012. The study further estimates that India is likely to increase deficit of 5.25 million employable graduates and vocationally trained workforce by 2012.


Another study by BCG for PHD Chamber of Commerce and Industry has estimated that by 2020 the world will have a shortage of 47 million working people, but India will have a surplus of 56 million people. In order to reap the benefits of demographic dividend India will have to, therefore, equip this manpower to meet the requirement of skill talent across geographies.

CII has conducted studies in select sectors of the economy in the following states:

Punjab: Textiles, Auto/Auto Components, Light Engineering, Food Processing, Real Estate and Construction, Retail and Location based entertainment.

Tamil Nadu: Textiles, Construction, Auto/Auto Components, Light Engineering, IT/ITES, Leather.

Andhra Pradesh: Construction, Textiles, Tourism, Healthcare, Engineering, IT/ITES, Pharma, Biotech, Paper, Minerals.

Jammu and Kashmir: Handicrafts, Hospitality, Agro-processing, Construction, ITES, Repair Servicing.

On the basis of above study CII has projected the following requirement of skilled workers.

Objective

• Main objective is to identify the Skill Development and TrainingProgrammes that play an important role in the country’s economy.

Methodology

After collecting primary data from entrepreneurs of handicrafts enterprises and secondary data from various publications of government offices, the data has been classified and tabulated for making further analysis and interpretation. Following are the statistical techniques used in this research article:

1. To workout the trend line and trend values of production, sales, revenue and employment the formula of regression has been used:

Y = a + bx


Y = dependent variable

x = independent variable

a = intercept coefficient; and

b = the slope coefficient

The normal equation used to determine the value of a and b is as follows:

∑Y = Na + b∑X

∑XY = a∑X + b∑X2.

2. To find out the correlation between number of units and employment, Karl Pearson’s coefficient of correlation method has been used:

r = ∑dxdy ∕ √∑dx2∑dy2

Where, r = Karl Pearson’s coefficient of correlation.

∑dxdy = Total of the product of the deviation of values from their respective arithmetic means in both the series.

∑dx2 and ∑dy2 = the deviation of dx and dy are squared up and their totals, ∑dx2 and ∑dy2 are obtained.

3. For testing the hypothesis that ‘to identify the economic growth of handicraft industry and potential of earning has been low’, the ‘t-test’ has been used, and the formula for t-test is given by

t = ryx√N−2/1−r2yx

Where, ryx= Karl Pearson’s coefficient of correlation;

N = number of observations.

Handicraft Sector

The present article is conducted on the basis of primary data as well as secondary data, the research work which shows how the skill development and training programmes will generate the employment, production, revenue, exports, and sales in the particular sector. The present study is to be based on the handicraft sector of Jammu and Kashmir with special reference to District Ananatang.

The performance of skill development and training programmes in small-scale industry sector units in the district are analysed in this section. The


performance analysis includes the production, employment, sales and revenue sample SSI units in the district Anantanag.

Production of Small-Scale Enterprises

The production of the selected small-scale enterprises under study is presented year- wise to see variation and trend over the period. The period of 1990–91 to 2011–12 has been analysed for this purpose.

Production of Handicraft

The year wise production level of handicraft sector for the period from 1990–91 to 2011–12 is presented in the Table 1.

Table 1: Year-wise Production of Handicrafts (Rs. in lakhs)Year Actual value of

Production (Rs. in lakhs)Y = 154.098 + 56.861X

(Trend value of production)1990–91 342 357.651991–92 364 414.511992–93 404 471.371993–94 450 528.231994–95 486 585.091995–96 563 641.951996–97 664 698.811997–98 756 755.671998–99 720 812.53

1999–2000 21 869.392000–01 696.33 926.252001–02 765.94 983.112002–03 775 1039.972003–04 821.53 1096.832004–05 887 1153.692005–06 900 1210.552006–07 950 1267.412007–08 1614.59 1324.272008–09 1100 1381.132009–10 1000.5 1437.992010–11 1650.3 1494.852011–12 1845 1551.71

Source: Compiled from field survey.


Table 1 reveals that the production value of handicraft sector and its trend value calculated from the regression equation (Y = 154.09 + 56.86X) during the study period (1990–91 to 2011–12) has increased from Rs. 342 lakh to Rs. 1,845 lakh, and the growth rate of production during 1991–92 was 6.43 per cent and during 2011–12 it was 11.79 per cent. The production depends upon demand. As per the analysis of Table 1, during the 1999s the demand of handicraft items declined due to political instability and insecurity, resulting in low tourist flow into the valley. This table shows the production of handicraft and trend value year-wise during 1990–91 to 2011–12. As it is evident from the table that the production during the study period shows increasing trend with little deviation from actual production value, which indicates that the production of handicrafts has a positive relation, that is, with reference to time the production increases. The value of coefficient determination, R2 = 0.69 and that of t = 6.7, which shows that there is significant increase in production of handicraft during the study period.

Employment of Small-Scale Enterprise

Small-scale enterprises generally provide large number of employment opportunities to the rural people. The present study intended to analyse the progress of Small-Scale Industries (SSI) units in terms of employment generation. The year-wise employment generation of SSI units is presented sector wisely in the following tables.

Employment of Handicrafts

The year-wise employment generation of handicraft units for the period of 1990–91 to 2011–12 is presented in Table 2.

Table 2 shows that employment generation of handicraft units was 329 persons during 1990–91 and it was 1,815 persons during 2011–12. The growth rate of employment generation was by 3.3 per cent during 1991–92, and it was 27.45 per cent during 2011–12. Table 2 shows the employment in the handicraft units during the reference period of 1990–91 to 2011–12. As it is clear from the table, the employment has increased over the reference period and the trend values has to be a positive, which indicates that employment has a positive relation with the


number of years. The value of t = 10.48 and the value of the coefficient of determination, R2 = 0.84, which shows that there is a highly significant increase in the employment of handicrafts units during the study period.

Table 2: Year-wise Employment of Handicrafts (in Nos.)Year Actual Employment

(in Nos)Y=10.675 + 62.051x

(trend value of employment)1990–91 329 547.781991–92 340 609.831992–93 345 671.881993–94 352 733.931994–95 358 795.981995–96 366 858.031996–97 374 920.081997–98 384 982.131998–99 391 1,044.18

1999–2000 393 1,106.23

2000–01 399 1,168.282001–02 528 1,230.332002–03 684 1,292.382003–04 848 1,354.432004–05 972 1,416.482005–06 1056 1,478.532006–07 1096 1,540.58

2007–08 1128 1,602.63

2008–09 1164 1,664.682009–10 1188 1,726.73

2010–11 1424 1,788.782011–12 1815 1,850.83


Sales-Small Scale Enterprises

The sales of the sample small-scale enterprises are presented year wise. The sales represent total value of sales of production. The sales of small-scale enterprises are calculated sector wise between the periods of 1991–91 to 2011–12. The analysis of the year wise sales of each sector is given below.


Sales of Handicrafts

The year-wise sales of the handicraft sector for the reference period of 1990–91 to 2011–11 is presented in Table 3.

Table 3: Year-wise Sales of Handicrafts (Rs. in lakhs)Year Actual Sales

(Rs. in lakhs)Y = 15.13 + 68.89X(Trend value of sales)

1990–91 269.8 604.881991–92 302.8 673.771992–93 320.3 742.661993–94 342 811.551994–95 358 880.441995–96 404 949.331996–97 446 1,018.221997–98 496 1,087.111998–99 569 1,156

1999–2000 563 1,224.892000–01 568 1,293.782001–02 750 1,362.672002–03 820 1,431.562003–04 900 1,500.452004–05 981.2 1,569.342005–06 1,050 1,638.232006–07 1,166.2 1,707.122007–08 1,262.4 1,776.012008–09 1,366.6 1,844.92009–10 1,431.2 1,913.792010–11 1,865.6 1,982.682011–12 1,875.4 2,051.57


This shows that the sales of selected samples of handicraft units during the study period of 1990–91 was Rs. 269.80 lakh and it has increased to Rs. 1,875.4 lakh during the reference period of 2011–12, at the growth rate of 12.23 per cent in 1991–92 and 0.52 per cent in 2011–12. The year-wise performance and growth rate of handicraft sales is presented in Table 3. The table shows year-wise sales of the handicraft sector and


the trend value calculated from the regression equation (Y = 15.131 + 68.89X) during the reference period of 1990–91 to 2011–12. It shows that there is little variance between the actual value and trend value of the production of handicrafts during the reference period, which means that there is a positive relation between the increase in production value and number of years of establishment of handicrafts units during the reference period. The value of coefficient of determination, R2 = 0.91, and that of t = 14.2, which shows that there is significant increase in sales of handicrafts during the study period.

Revenue of Handicraft Industries

The revenue of handicraft industry sector during the study period of 2000–01 to 2011–12 is presented year-wise in Table 4.

Table 4: Year-wise Revenue of Handicraft Sector (Rs. in lakhs)Year Actual Revenue

(Rs.in lakhs)Y = 22.98 + 2.18X

(Trend value of revenue)2000–01 26.26 3.282001–02 26.89 5.462002–03 29.66 7.642003–04 33.02 9.822004–05 34.63 122005–06 37.54 14.182006–07 35.54 16.362007–08 35.24 18.542008–09 37.69 20.722009–10 39.06 22.92010–11 45.67 25.082011–12 57.54 27.26


Table 4 reveals that the revenue of handicraft industrial sector has increased from Rs. 26.26 lakh during 2000–01 at the growth rate of 2.39 per cent, to Rs. 57.44 lakh during 2011–12, at the growth rate of 25.99 per cent. Table 4 shows the revenue which is calculated by the regression equation (Y = 22.98 + 2.18X) during the reference period of 2000–01 to 2011–12. It is obvious from the table that the actual value of revenue and trend


value of revenue do not have much deviation, which is a positive sign, and indicates that there is a positive relation between the increase in the value of revenue and number of years. The value of coefficient of determination R2 = 0.81, which shows that there is a significant increase in revenue of the handicraft sector during the study period.

The Kashmir valley is recognised throughout the world as far as the arts and crafts, as well its scenic beauty and bracing climate is concerned. It is famous for the weaving specialised fabrics, like Pashmina and Kani shawls, silken, woollen and cotton fabrics. The crafts range from woollen textiles of fleecy soft texture of matchless excellence in weaving, hand-woven carpets of the finest wrap and weft, to the exquisite design worked on paper-mache, wood work, and silverware, etc. They are products of unique craftsmanship. The skill of the craftsmen and their capacity for intricate workmanship are assets which can help development on a much larger scale. Besides, as an export-oriented sector, it is instrumental in foreign exchange earnings worth crores of rupees annually.

According to Vincent Cable and Ann Weston (1982) the present handicrafts production is quite concentrated, both regionally and within the region. According to one estimate six northern states account for over 65 per cent of handcraft exports (excluding gems and jewellery, and handlooms) and 75 per cent of production aggregating Uttar Pradesh’s 40 per cent, Rajisthan’s 10 per cent, with Jammu and Kashmir, Delhi, Haryana and Punjab each accounting for around 5 per cent. Over 75 per cent of handloom fabric destined for export originates in the southern part of the Indian subcontinent.

Jammu and Kashmir has not been able to attract investment from the private sector, and has remained an industrially backward state due to its unique economic obstacles arising out of remoteness and poor connectivity, hilly and often inhospitable terrain, weak resource base, poor infrastructure, sparse population density, shallow markets, and most importantly a law and order situation threatened by militancy. Nevertheless, many small and medium scale industries have come up basically in the traditional sectors, along with some new areas like food processing, agro-based units and metallic and non-metallic products. However, natural factors are more conducive for handicrafts, village and small scale industries. Besides, due to saturation of employment


opportunities in government/traditional and non-governmental sectors, like agriculture, the industrial sector has been declared as the educated unemployed youths in the state. However, the Jammu and Kashmir state is on the path of industrialisation in a modest way despite topographical limitations.

Handicraft is one of the biggest employment providers next to agriculture sector.

Table 5: Employment, Production and Export in Jammu and Kashmir Handicraft Industry

S. No.

Crafts Employment % Age Employment

Production in

Crores

% Age Production

Exports in Crores

1. Carpet 96580 27.58 580.27 31.45 412.452. Shawls 103430 29.53 560.58 30.38 302.003. Crewel 37429 10.68 231.18 12.52 154.004. Chain stitch 29411 8.39 269.02 14.59 *5. Paper mache 4862 1.38 87.22 0.05 66.506. Wood carving 4308 1.23 52.19 2.82 36.757. Ari stapple 32396 9.25 41.63 2.25 *8. Willow wicker 4735 1..35 3.31 0.17 *9. Zari

embroidery5503 1.57 7.62 0.14 *

10. Gabba making 2332 0.66 3.01 0.16 *11. Copper ware 6218 1.77 37.30 2.02 *12. Namdha 864 0.24 4.69 0.25 *13. Leather craft 563 0.16 2.68 0.14 *14. Pottery 1106 0.31 0.73 0.03 *15. Khatamband 310 0.08 2.41 0.13 *16. Silver ware 123 0.03 0.50 0.027 *17. Other 20000 5.7 55.19 2.99 32.50

Total 350170 100 1845.00 100 1651.00Source: Digest of Economic and Statistics Department of Jammu and Kashmir

Table 5 shows that the shawls generate the highest number of employment which is 29.53 per cent, and the highest production of carpet is 31.45 per cent. The table shows that both the products play an important role in


the fields of generating employment in Jammu and Kashmir. This table also shows that the total marketing value and export value of products is Rs. 1651 crore in 2011–12. Similarly, the production figures shown inTable 6 have risen which shows the handicraft industry in a glance with the overall production and employment, export revenue, number of exhibitions and trainees trained from 2001–12. The following table indicates the potential of handicraft industry in Jammu and Kashmir

Table 6: Year wise Production, Employment, Export, Revenue and Trainees Trained

Years Employment Estimated (in lakhs)

Production (in lakhs)

Export

(in crores)

Revenue in

(lakhs)

No. of Exhibitions

Conduct (year wise)

No. of trainees

(trained)

2000–01 3.29 696.00 574.98 26.26 04 8,1802001–02 3.40 710.00 504.25 26.89 04 7,1452002–03 3.45 770.00 549.20 29.66 04 8,6402003–04 3.52 821.53 595.00 33.02 11 8,0812004–05 3.58 887.00 642.00 34.63 19 6,4952005–06 3.66 900.00 705.00 37.54 12 8,0612006–07 3.74 950.00 785.00 35.24 09 7,7262007–08 3.84 1,614.59 867.50 43.40 10 7,4652008–09 3.91 1,100.00 705.50 37.69 10 6,9182009–10 3.50 1,000.50 661.27 39.06 14 7,2752010–11 3.99 1,650.30 1,004.10 45.67 15 7,6622011–12 4.35 1,815.33 1,651.16 57.54 12 7,789

Source: Directorate of Handicraft in Jammu and Kashmir.

From Table 6, it becomes clear that in the handicrafts industry production increases from Rs. 3.29 lakh to Rs. 4.35 lakh during the period of 2000–01 to 2011–12. Similarly, the production also rose from Rs. 696.00 lakh to Rs. 1,815 lakh in the reference period (i.e. 2000–01 to 2011–12). There is an increase in revenue and the number of trainees trained that shows a positive sign.

Realizing the vast potential for employment, the Jammu and Kashmir government has undertaken large scale training programmes for the youth in different crafts, motivating them to use their inherent skills in learning and creating while conserving the past. In the period of 2009–2011


over 1 lakh young artisans have been trained in various craft skills, such as paper mache, woodcarving, chain stitch and staple embroidery, and other forms of art and craft of the region. Of these, more than 40,000 were trained in carpet weaving only. The employment figures only restate the fact. Craft Training centres have been set up in far-off areas like Gurez, Tulel, Chycholi, Shama, Yougma, and Chickens in Ladakh, and in backward areas of Rajori and Ponch. Besides popularising the craft outside Kashmir valley, the same Kashmir handicrafts have also been introduced in training centres in places like Doda. Table 7 shows the number of handicrafts training centres and trainers trained during the period 2000–01 to 2010–11.

Table 7: Number of Handicraft Training Centre’s and Trainees Trained Directorate of Handicrafts Other Agenecies Total Agencies

Year Tr. Centre’s T.T. (lakh) T.C. T.T. (lakh)

T.C. T.T. (lakh)

2000–01 553 0.08 – – 553 0.082001–02 553 0.08 – – 553 0.082002–03 553 0.08 – – 553 0.082007–08 553 0.08 – – 553 0.072010–11 553 0.08 – – 553 0.08

Note: Tr. Training; T.T. = Trainees Trained; T.C. = Training CentresSource: Digest of statistics 2000–01 to 2010–11, Govt. J & K.

The number of training Centre has been constant during the period, recording a growth rate of 24 per cent in the period of 2010–11. The Directorate of Handicrafts has become important over the years with the number of training centres of other agencies having sharply declined. Table 7 reveals that around seven to eight thousand trainees are trained in different crafts.

Handicrafts have a special socio-economic significance in Jammu and Kashmir (Kashmir Times, 2002). Keeping in view the vast potential in handicrafts for economic activities like the generation of employment and revenue, the state government has launched various measures to encourage the growth of the Handicrafts Undustry. Against an allocation of a mere Rs. 19.50 crore in 1974–75, the budgetary allocation for this sector has been increased to Rs.24 crore during 1998–99. The production


of handicrafts crossed the Rs. 400 croremark during 1998–99. There has also been notable growth in the state’s export in recent years.

According to Jammu and Kashmir Handicrafts Corporation Limited (2013), there has been an increase of 38.50 per cent turnover to the total export of handicraft products in financial years of 2011–12 to 2012–13, aggregating the contribution of Rs.17,970 crore from Rs. 12,975 crore to the total State Gross Domestic Product (SGDP). According to the provisional data available from Table 8 given below, the exports of handicrafts have shown an increase of Rs. 4,994.87 crore, from Rs. 12,975.25 crore to Rs. 17,970.12 crore, an increase of US$ 599.24 million, i.e. the exports increased by 22.15 per cent over the similar period in 2011–12.

Table 8: Economic Analysis of Jammu and Kashmir Handicrafts to Total Export Contribution

Items

Rs. in Crores Increase/Decrease in %age

over 2011–12

US$ in Increase/ Decrease in %age

over 2011–12

2011–12 2012–13 2011–12 2012–13

April–March April–March

47.9560 54.3742Art metal wares

2,603.27 3,328.64 (+) 27.86 542.85 612.17 (+) 12.77

Wood wares 1,560.04 2,745.93 (+) 75.96 325.40 505.01 (+)55.20

Hand printed textiles and scares

1,655.04 2,232.47 (+)34.89` 345.12 410.58 (+)18.97

Embroidered and crocheted goods

3,922.57 4,665.74 (+) 18.95 817.95 858.08 (+) 4.91

Shawls 254.30 448.55 (+) 76.39 53.03 82.49 (+) 55.55

Zari and Zari goods

239.81 286.49 (+) 19.47 50.01 52.69 (+) 5.36

Imitation Jewelry

575.33 1,017.36 (+) 76.83 119.97 187.10 (+) 55.96

Misc. Handicraft

2,164.43 3,244.94 (+) 49.92 451.34 596.78 (+) 32.22

Total 12,975.25 17,970.12 (+) 38.50 2705.66 3,304.90 (+) 22.15Source: Jammu and Kashmir Handicrafts Corporation Limited.


During the period the exports of Art metal ware, Wood ware, Hand Printed Textiles and Scarves, Embroidered and Crocheted goods, Shawls as art ware, Zari and Zari goods, Imitation Jewellery, and Miscellaneous Handicrafts showed an increasing trend of 27.86 per cent, 75.96 per cent, 34.89 per cent, 18.95 per cent, 76.39 per cent, 19.47 per cent, 76.83 per cent and 49.92 per cent in terms of rupees respectively, and 12.77 per cent, 55.20 per cent, 18.97 per cent, 4.91 per cent, 55.55 per cent, 5.36 per cent, 55.96 per cent and 32.22 per cent in terms of US$ respectively. Overall, an increase in the rupee term was 38.50 per cent and in the terms of US$ it was 22.15 per cent.

Conclusion

Handicraft Industry has been one of the major parts of India’s economic development strategy since independence. Today, the Handicraft Industry occupies a position of strategic importance in the economic structure due to its significant contribution in terms of generating employment, revenue and exports. This was based on the analysis of the data collected from the artisans through field surveys, and some of them from various secondary organisations. From the above discussion and calculations we can find out that the skill development and training programmes which are organised by the government or any other private organisation are very helpful in the generation of employment, production and economic growth, and provide very large amounts of sales and exports to our country, as well as the state’s economy. In this article we can see that all the sectors show a very high growth and potential to help the economy only by providing new techniques to artisans, arrangement of new schools of design, and creating a large number of training centres in rural areas, as well as urban areas, thus giving a boost to our economy in the future.

Recommendations

Though the strength and opportunities exist in the Handicrafts Industry of Jammu and Kashmir, but there is a need to develop and implement strategies in order to explore and develop the hidden agenda, thereby adding value to the socio-economic contribution of the Handicrafts Industry to the state. On the basis of the above mentioned threats and weaknesses, the following strategies can be adopted in order to smoothen


out the path of an overall development of the state’s economic and social conditions:

• Explore thenewmarkets and try todevelop existing ones throughidentification and exploration strategies.

• Refinetheexistingproductsandtrytoavailtheopportunitiesattheglobal level through promotions and exhibitions.

• BeforeintroducingthenewproductItisessentialtofirstgofortestmarketing in order to discover faults and omissions therein.

• Upgradeandtrytodevelopmodernstrategiesforcostminimisationand profit maximisation.

• Train and developed new and existing skilled, semi-skilled andunskilled manpower in order to update them for flexible business environment.

• Maintaincosteffectiveproduction,qualitystandard,andreasonablepackaging of handicraft products.

• Adopt market centered philosophy rather than production-centredand keep quality as the most important value of handicraft products.

• Cost Effective Distribution Development using both Physical andElectronic Distribution Channel (Internet, e-Commerce).

• Enhance national and international Market Development throughexhibitions, trade fairs, trade shows, event management programmes, and sponsor the events at national and international level in order to create and attract the minds and purses of national and international customers for better Foreign and Domestic Revenue.

• The consumers are not fully aware of the qualities of handicraftsand are not able to distinguish the handicraft product from general products on the basis of the criteria given above. There is a need to generate awareness in a customer’s mind about all the advantages that can be attained from handicraft uses.

• Focus should be on brand promotion of the Kashmir handicraft,product development, assessment and survey of new and existing markets, and holding of exhibitions in international markets.


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Development Department, Srinagar.Darakhshan, Anjum, ‘A Study of Handicrafts Industry in J&K’, A Journal of

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Kashmir. Kamal, Handloom Research & Design Development Centres Soon, Daily Excelsior,

2002. Marof, Redzuan and Fariborz, Aref, ‘Constraints and Potentials of Handicraft

Industry in Underdeveloped Region of Malaysia’, African Journal of Business Management’ vol. 5, no. 2, 2011, pp. 256–60.

Sheikh, Bilal Ahmad, ‘Structural Changes in Jammu and Kashmir Economy’, Thesis, Kashmir University, J&K, 2010.

Rather, Tariq A., J & K Handicrafts: Ingrained in Socio-Economic Ethos of India, Press Information Bureau and Govt. of India.

Hashmi, Syed Khalid, ‘Market for Indian Handicrafts’. Excel Journal of Engineering Technology and Management Science, vol. I, December-January, 2012.

Khan, Waqar Ahmad and Zeeshan Amir, ‘Study of Handicraft Marketing Strategies of Artisans in Uttar Pradesh and Its Implications’, Research Journal of Management Sciences, vol. 2, no. 2, 2013, pp. 23–26.

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Entrepreneurial Leadership Style(s): A Taxonomic Review

Yamini Karmarkar*, Meghna Chabra* and Aashish Deshpande**

ABSTRACT

Entrepreneurial Leadership is the new way of understanding an entrepreneur. Most business managers expect their employees to possess the entrepreneurial qualities of innovation, risk-taking, and independent thinking. Entrepreneurs are a product of society’s needs and wants. Furthermore, as against the conventional belief that entrepreneurs are ‘born’, the modern norms suggest that entrepreneurial abilities can be nurtured from friends, family, community, education and past experiences. An effective leader influences his/her team in a desired manner to attain desired goals. Entrepreneurs who have become the heroes of contemporary enterprises and economic development adopt varied leadership styles affecting organisational effectiveness and performance. The concept of entrepreneurial leadership combines and explores both leadership and entrepreneurship behaviour. While earlier researchers have ventured to classify entrepreneurship as a branch of leadership, the contemporary ones are evaluating leadership as a function of entrepreneurship. From the review, the springing themes of vision, influence and contextual boundaries were uncovered. By exploring the phenomenon of entrepreneurial leadership this study aims to aid the field of entrepreneurship transpose from a state of fragmentation to consolidation. Additionally, this will

* International Institute of Professional Studies, Devi Ahilya University, Indore** Department of Management, National Institute of Technical Teachers’ Training & Research,

Bhopal


help the business world in creating, nurturing and supporting the entrepreneurial leaders of the future.

Keywords: Entrepreneur, Entrepreneurship, Leadership Styles

IntroductionIn the 1800s, French economist Jean Baptiste Say coined the term ‘entrepreneur’ to define an individual ‘who undertakes an enterprise, especially a contractor acting as the intermediary between capital and labour.’ More recently as per Dykes, C. (2008) an entrepreneur is a person who sees a need in the marketplace and sets out to fill that need with a product or service. There are some entrepreneurs who have a talent, skill or passion, and find how to best fit it into the marketplace, and some entrepreneurs that see a need in the marketplace and find how to best fill that need. However, as pointed out by Navarro (2012), what this description fails to acknowledge is that there are different types of entrepreneurship or say entrepreneurial styles—each with specific characteristics, different levels of risk, and requiring different strategies. They’re not mutually exclusive, since one type of business can evolve based on the entrepreneur’s vision.

An entrepreneur is also a manager, and an important category of theories on managing the people is based on ‘managing motivation to expand human freedom’–as described by McClelland (1978). The Blake-Mouton managerial grid neatly presents a typology from the managerial standpoint (Blake and Mouton, 1964). This grid is also referred to as the ‘leadership grid’. It is accepted that varied leadership styles – from participative or democratic to authoritarian or autocratic – apply to management styles as well. However, Burns (1978) makes a necessary distinction between the transactional leader and the transformational leader: the first type of leader is given power to perform certain tasks, and reward or punish for the team’s performance, while the second motivates its team to be effective and efficient; transformational leaders are highly visible, use communication as the base for achieving the goals, and they focus on the big picture. Ulrich and Cole (1987) argue for the importance of learning style preferences in enhancing the learning experience and entrepreneurial propensity. Utilising Kolb’s (1978) four-stage learning model and research


on the personality characteristics of the entrepreneur, Ulrich and Cole conclude that entrepreneurial learning style preferences tend toward active experimentation with some balance between concrete experience and abstract conceptualisation.

An entrepreneurial orientation can be developed in individuals and can be exhibited intrinsically and extrinsically in an organisation (profit or non-profit enterprise) and in bringing forth creative business ideas in business or non-business activities. Consequently, entrepreneurship is an integrated concept, which permeates our society at all levels, be it individuals or business. It is a perspective that has stimulated individuals to once again ambit into their inner self to discover the innovative spirit that resides in each of us. It is, in effect, the quintessence of Entrepreneurial Leadership.Entrepreneurial Leadership competencies, defined as the specific leadership capabilities required for successfully leading competitive and challenging activities, recently emerged as vital in the success of entrepreneurial activities, both in new ventures and in established organisations (Yang, 2008; Fernald, Solomon and Tarabishy, 2005; Cogliser and Brigham, 2004; Gupta, MacMillan and Surie, 2004). However, there is not enough information on various learning processes through which individuals learn entrepreneurial leadership competencies (Kempster and Cope, 2010).

Education and entrepreneurial education are also important variables to be studied in understanding the various entrepreneurial styles. An inclination or propensity towards entrepreneurship is commonly associated with a number of personal characteristics which are expected to be an outcome of a formal programme of education. Education also can serve a preparatory function in relation to new venture initiation or startup, whereby the transfer of knowledge, and the acquisition and development of relevant skills would be expected to increase the self-efficacy (Bandura, 1986) and effectiveness of the potential entrepreneur. Additionally, as pointed out by Gorman et al. (1997) we might expect the entrepreneurial learning process to be enhanced through the provision of role models, the expansion and strengthening of personal networks, and through temporary apprenticeship placements.

Although entrepreneurship is a not a nascent concept, research and studies on the same have gained immense momentum in the past 15 years owing to the fact that there has been widespread recognition that entrepreneurship


is the engine that drives the economy of most nations. This has lead to an increasing interest in the development of education programmes to encourage and enhance entrepreneurship, and a recognition that much research needs to be carried out into what makes an entrepreneur and how these characteristics may best be imparted, and furthermore in the various entrepreneurial styles which in turn is a derivative of the entrepreneurs’ personal goals, values and attitudes, creativity, locus of control and risk-taking propensity. Nowadays it is considered as the essential lever to cope with the new competitive landscape (Hitt and Reed, 2000).

Owing to this perspective, a literature review of the field of entrepreneurial leadership styles could be the starting point in defining the relations between varied entrepreneurial styles, and their effects on the efficiency and effectiveness on the owned businesses. This study is aimed at studying the literature on Entrepreneurial Leadership style(s) in order to assess the progress over the time, and furthermore it intends to offer some recommendations for further efforts.

Entrepreneurial Leadership: Historical PerspectiveAn entrepreneur is a leader and the search for the traits or characteristics that affect the style of working of entrepreneurs has been ongoing for centuries. According to the ‘Trait Theory of Leadership’, leadership is based on individual attributes. Brockhaus (1982) and Nicholson (1998) look at the personality traits found in samples of entrepreneurs with leadership roles: ‘single-minded, thick-skinned, dominating individuals … unlike managers’ (Nicholson, 1998: 529 and 538). Trait leadership is defined as integrated patterns of personal characteristics that reflect a range of individual differences, and foster consistent leader effectiveness across a variety of group and organisational situations (Zaccaro, Kemp and Bader, 2004). An entrepreneur is the engine of his/her business, the driving force behind the vision, mission and initiatives, and the one who affects the organisational systems, procedures and culture. As pointed out by Derue, Nahrgang, Wellman, and Humphrey (2011) leader effectiveness refers to the amount of influence a leader has on individual or group performance, followers’ satisfaction, and overall effectiveness. Furthermore, Entrepreneurial Leadership is concerned with building up long-term reciprocal relationships along the value chain of an organisation, where


effectiveness is determined by the ability to influence others, set direction, communicate, motivate, develop change, handle resources strategically, and encourage others to act in a competitively advantageous and opportunity-seeking way (Ireland and Hitt, 1999). Many scholars have argued that leadership is unique to only a select number of individuals and that these individuals possess certain immutable traits that cannot be developed (Galton, 1869). Although this viewpoint has been criticized to a great extent, there is still immense ongoing research on the effects of personality traits on leadership effectiveness and efficiency. So the key question which crops up is, are people ‘born’ with entrepreneurial qualities or can these abilities be nurtured with formal business education, by family, friends and community influences and past experiences. Then there are the push and pull factors. Push factors are the extrinsic factors which push people towards entrepreneurship like unemployment, family crisis, etc., and the pull factors are the intrinsic factors which pull people towards entrepreneurship like increased self worth, social status, recognition, etc. A recent study conducted by Eijdenberg and Masurel (2013) revealed that push and pull factors are not mutually exclusive. In addition, this study shows that pull factors are even more important than the push factors, and that, therefore, push factors only play a minor role for entrepreneurs. The overall implications are that motivation is a more combined and nuanced construct, and that the western concept of entrepreneurial motivation and method of measuring entrepreneurial motivation are globally applicable.

Entrepreneurial leadership was conceptualised in 2000 by McGrath and Macmillan who advocated that the increased uncertainty and competitive pressures in the globalised dynamic market require a new type of leader. Thus, they gave the description of the ‘entrepreneurial leader’ as the one who has an apt ‘entrepreneurial’ approach and precisely the ability to keep himself/herself abreast with the fast changing situations or markets, and to exploit opportunities to reap advantage for the organisation before and faster than others. Post the introduction of this concept a number of organisations have sought to develop this concept within the business world.

Antonakis and Autio (2006) specifically identify entrepreneurial leadership as a ‘neglected area of entrepreneurial research’) and state ‘that entrepreneurship could stand to gain from a closer integration with


leadership research’ (p. 203). This study and its proposals are based mainly on the work of Vecchio (2003), who argues that leadership patterns that are specific to entrepreneurship have yet to be established by research; on Bagheri and Pihie (2010), who identified missing links in traditional entrepreneurship education that make it non-conducive to leadership learning.

Table 1: Studies Focusing on ‘Historical Perspective on Entrepreneurial Leadership’

Year Paper Key Findings1869 Galton Leadership traits cannot be developed and unique to

only select number of individuals.1982 Brockhaus Observed personality traits in sample of entrepreneurs.1998 Nicholson Entrepreneurs are single-minded, thick-skinned,

dominating individuals … unlike managers.1999 Ireland and Hitt Entrepreneurial leadership effectiveness measured by

ability to influence others, set direction, communicate, motivate, develop change, handle resources strategically, and encourage others to act in a competitively advantageous and opportunity-seeking way.

2000 McGrath and Macmillan

Introduced the concept of entrepreneurial leader as the need of the hour owing to increased uncertainty and competitive pressure.

2003 Vecchio Leadership patterns specific to entrepreneurship yet to be established by research.

2004 Zaccaro, Kemp and Bader

Trait leadership as integrated patterns of personal characteristics fostering leader effectiveness.

2007 Antonakis and Autio

Specifically identifying entrepreneurial leadership as a ‘neglected area of entrepreneurial research’.

2010 Bagheri and Pihie Identifying missing links in traditional entrepreneurship education that make it non-conducive to leadership learning.

2011 Derue, Nahrgang, Wellman and Humphrey

Defining leader effectiveness as the amount of influence of leader on his followers.

2013 Eijdenberg, and Masurel

Emphasising the importance of pull over push factors, thus highlighting entrepreneurial motivation.

Earlier beliefs emphasised that entrepreneurs are ‘born’. Around 2000, the concept of an entrepreneur leader emerged owing to increased business


dynamism. Then came the identification of entrepreneurial personality and traits, followed by entrepreneurial education. Henceforth, the contemporary work on entrepreneurial motivation came up.

The Umbrella of ‘Entrepreneurial Leadership’

The Essence of ‘Entrepreneurial Leadership’

In studying contemporary entrepreneurship, one concept that recurs is that entrepreneurship is interdisciplinary. Today’s world is experiencing an entrepreneurial revolution, which is more intense than the industrial revolution of the twentieth century. Entrepreneurs will continue to be critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity, and formation of new industry (Kuratko and Hodgetts, 2007). An important facet of entrepreneurship is the creation of business, but that definitely does not portray the complete picture. What permeates an entrepreneur is the capability to seek opportunities ahead of others, taking risks beyond security, and pushing an idea through to reality through a combination of vision, mission and innovativeness. Overall, every study continues to demonstrate that entrepreneurs’ ability to expand existing markets, create new markets, and establish entrepreneurial ventures at a breathtaking pace impacts individuals, firms and entire nations (Minniti and Bygrave, 2004; and Morris and Schindehutte, 2005).

Schumpeter (1949), an economist and forefather of entrepreneurship, has defined that entrepreneurship essentially consists of doing things that are not generally done in ordinary business routine; it is essentially a phenomenon that comes under the wider aspect of leadership (Schumpeter, 1949). Thus, his definition of an entrepreneur was cognate with that of a leader.

Contemporary entrepreneurs value their independence and are not ‘roving and casual’. The degree of entrepreneurial activity in a society depends in part on the esteem and legitimacy accorded to those pursuing the entrepreneurial route which is often called the ‘road less travelled’. As per the Global Entrepreneurship Monitor, (GEM) (1999), entrepreneurship is anchored in the recognition within a population that genuine new


business opportunities exist. However, while opportunity is a necessary condition of entrepreneurship, it is not sufficient. For an entrepreneurial initiative to occur, one must possess the capacity (i.e. the motivation and skill) to take advantage of the opportunity by starting a new firm. Entrepreneurship is the point where entrepreneurial opportunity and entrepreneurial capacity meet. It is quite possible to imagine a situation rich in opportunity, but impoverished in terms of entrepreneurial activity simply because few individuals have the motivation or capability to do anything about the opportunity.

Another interesting finding of that report is a fact that in most active countries (i.e. US, Canada and Israel) entrepreneurial activity is an integral and accepted feature of economic and personal life. In the remaining GEM countries, however, entrepreneurship through enterprise creation remains a structural and cultural anomaly. In such countries it may take decades of sustained changes in many national, cultural, political and economic institutions if they are to join the ‘elite’ of entrepreneurial economies, thus the proposition that promoting entrepreneurship and enhancing the entrepreneurial dynamic of a country should be an integral element of any government’s commitment to improve economic well being.

Other domains reflect a strong interesting entrepreneurship. The World Economic Forum, sponsor of the annual Davos Conference for the world’s leading multinational businesses, has recently adopted ‘entrepreneurship in the global public interest’ as its motto, and is currently extending its membership categories to include ‘Global Growth Companies’. Also, business schools throughout Europe, North America and Asia report an acute shortage of faculty capable of teaching entrepreneurship. All such developments point to the fact that entrepreneurship is at the top of the public policy agenda in many countries around the world (GEM Global 1999 report).

Schumpeter argues that people are always divided into two categories: leaders and followers (Arena et al., 2002). This is not to suggest that leaders are superior, rather they have an instinctive urge for domination that involves creativity to permanently change the sphere in which they appear (Schumpeter, 1919); social class is considered as a way of specifying specific social functions (Arena et al., 2002). Leaders, and entrepreneurs, do not form social classes (Schumpeter, 1934) and although they may exert


influence through their role, they merely contribute to the evolution of a social structure by using it for specific purposes, and leadership is seen as a special function that arises only once new possibilities/opportunities present themselves. According to Schumpeter (1934), an entrepreneur can be described as a leader in the sense that he/she achieves control over production, influences others, and is the centre of attention (De Vecchi, 1995). Schumpeter’s leadership is economic leadership, and does not have the charm and rhetoric appeal of leadership itself (De Vecchi, 1995). Schumpeter’s work has had a tremendous impact on the field of entrepreneurship. From the discussions on entrepreneurial profit, the role of capitalism and economic rationality, he brings sociology and history back into the picture (De Vecchi, 1995). Considering this, Schumpeter also refers to Max Weber’s work in understanding the role of leadership in entrepreneurship studies. He uses Weber to further cement his definition of an entrepreneur in the perspective of leadership (Schumpeter, 1934). However, Hartmann (1959) argues that Weber’s approach was more appropriate than Schumpeter’s when analysing the difference between the entrepreneur and the manager. Entrepreneurs are considered a source of formal authority and claim obedience from subordinates by source of delegation (Hartmann, 1959).

Entrepreneurship is equated with leadership in a business context has been argued that the leadership literature is more ‘advanced’ than the entrepreneurship literature (Cogliser et al., 2004).Thus, it can be concluded that exploring entrepreneurial leadership is a new way of understanding the entrepreneur. Exploring this phenomenon will help the field of entrepreneurship move from a locus of fragmentation to consolidation. A review of both, the entrepreneurship and leadership fields will conclude that entrepreneurship focuses on the individual entrepreneur/leader, whereas leadership literature explores the significance of context and followers (Huynh, 2007). From this review, the emerging themes of vision, influence and contextual boundaries can be uncovered. The study of Entrepreneurial Leadership is in need for further development before an in-depth synthesis of the field can be established (Huynh, 2007).

Schumpeter was probably the first scholar to develop theories in the field of entrepreneurship. He argued that the technological change and innovation of a nation come from the entrepreneur. He considered


entrepreneurship as a phenomenon under leadership. Leadership literature is more advanced than the entrepreneurship literature. And exploring Entrepreneurial Leadership is a new way of understanding the entrepreneur. Entrepreneurship is equated with leadership in a business context, and thus the concept of ‘Entrepreneurial Leader’.

Table 2: Studies Focusing on Essence of ‘Entrepreneurial Leadership’Year Paper Key Findings

1919 Schumpeter Leaders having creativity to permanently change the sphere in which they appear.

1934 Schumpeter Referred to Max Weber’s work in understanding the role of leadership in entrepreneurship studies.Leaders, and entrepreneurs, do not form social classes.Leadership arises only when opportunities erupt.

1949 Schumpeter Entrepreneurship: doing things that are not generally done in ordinary business routine.Phenomenon that comes under the wider aspect of leadership.

1959 Hartmann Weber’s approach more appropriate than Schumpeter’s when analysing the difference between the entrepreneur and the manager. Entrepreneurs considered a source of formal authority claiming obedience from subordinates by source of delegation.

1995 De Vecchi Schumpeter’s work has had a tremendous impact on the field of entrepreneurship.Schumpeter’s leadership: economic leadership, not having the charm and rhetoric appeal of leadership itself.

1999 GEM (global entrepreneurship monitor)

Entrepreneurship: point where entrepreneurial opportunity and capacity meet.Entrepreneurship at the top of the public policy agenda in many countries around the world.

2002 Arena et al. People always divided into two categories: leaders and followers.Social class considered as a way of specifying specific social functions.

2004 Minniti and Bygrave

All studies demonstrate that the entrepreneurs’ ability to expand existing markets, create new markets, and establish entrepreneurial ventures at a breathtaking pace impacts individuals, firms and entire nations.


Year Paper Key FindingsCogliser et al. Leadership literature more ‘advanced’ than the

entrepreneurship literature.2005 Morris and

SchindehutteLeadership literature more ‘advanced’ than the entrepreneurship literature.

2007 Huynh Entrepreneurship focuses on the individual entrepreneur/leader, whereas leadership literature explores the significance of context and followers.The study of Entrepreneurial Leadership is in need for further development before an in-depth synthesis of the field can be established.

Kuratko and Hodgetts

Entrepreneurs as critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity, and formation of new industry.

Ethics in ‘Entrepreneurial Leadership’

Milton Friedman said, ‘Business should be solely devoted to increasing profits as long as they engage in open and free competition devoid of fraud.’ To be successful, an entrepreneur has to take care of a number of constituents where each and every constituent is equally significant and has to be handled with utmost care. As quoted by John Godbold, an astute and well-respected entrepreneur, ‘To be a successful business, you have to take care of a number of constituencies. I have learned that a successful business is like the legs on a three-legged stool. All the legs are necessary to keep the stool from toppling over. If there is a weak leg, the stool may stand but it will not be steady. The first leg of the stool represents the investors who provide the funds that allow the business to operate. These investors are taking a risk and should be rewarded through profits. The second leg of the stool involves the employees who should be treated fairly with good work conditions, reasonable pay and benefits. The business should abide by all laws and regulations. The third leg of the stool is the customer. Without the customer, the employees will not have job and there will be no profits to the investors. Even with the three strong legs of the stool, if you step on the stool on an angle it may turn over. The most important leg is the fourth: including God as a part of


the business. With four legs, the stool can withstand much more pressure and weight and is not as apt to topple over.”

Both entrepreneurship and business ethics have been recognised as scientific disciplines. However, the field of enquiry where the two intersect is relatively embryonic and only recently the field has started receiving an augmented research attention.

What is the relationship between entrepreneurship and business ethics? How can the theoretical framework of one discipline be enriched by the insights of the other disciplines? How can the unique and specific ethical challenges faced by new venture creation be effectively understood and addressed? The growing literature intersecting between entrepreneurship and business ethics is posing these (and other) questions. Additionally ethics’ researchers argue for more empirical orientation on small and emergent firms, rather than just large organisations, in ethics research (e.g. Spence and Rutherford, 2003), and entrepreneurship scholars point out the importance of entrepreneurial ethics to the global economy (e.g. Bucar and Hisrich, 2001).

Entrepreneurs since yesteryears and recently have not only been detrimental in the economic developments of all nations, but have also excelled in the socio and philanthropic parameters which is evident by the Corporate Social Responsibility (CSR) drive which is on the verge of moving from voluntary to mandatory norms. Majority of the studies have revealed that entrepreneurship is described as inherently containing a moral imperative (Anderson and Smith, 2007; Carr, 2003), or at the least, being consonant with ethical conduct (Surie and Ashley, 2008), while other works point out that entrepreneurship can actually be detrimental to the society. For instance, Baumol (1990) points out that opportunistic entrepreneurial rent-seeking can encourage corruption and its consequences; Davidson and Ekelund (1994) propose that such outcomes are better characterised as an evolutionary process that indicates the presence of pareto optimality mechanisms, and therefore represent timing problems. Nevertheless, the painful fact remains that although the global development is a custom of entrepreneurial innovation it can also result in ‘losses and hardships for some members of society’ because entrepreneurship is ‘destructive of some stakeholders’ well being even as it creates new well being among other stakeholders’ (Dew and Sarasvathy, 2007: 267). Davidsson and Wicklund


(2001:90) have defined ‘robber enterprises’ as those new enterprises, which might profit at the expense of public or societal goods, that is, the venture could appropriate private gains while imposing societal costs. These works have put forth various questions, viz., how should we ethically measure the disadvantages posed to various stakeholders by entrepreneurship? What are the ways in which entrepreneurship is socially unproductive? Which outcomes are morally problematic under which circumstances? Does this suggest that certain societal constraints should govern entrepreneurship from a policy standpoint?

Whenever a venture is established the entrepreneur leader faces immense challenges and pressures in today’s plethora of cutthroat competition. Lack of training and belonging to a non-business community further weakens the case as quoted by Boyd and Gumpert (1983): entrepreneurial organisations face unique challenges; depending on the industry setting and the specific nature of the business, new ventures often experience constant change and limited financial resources. So these pressures can have a profound effect upon ethical decision-making processes, resulting in ethical situations for entrepreneurs that are fraught with ambiguity (Chau and Siu, 2000). In addition, specific ethical dilemmas that are especially salient to entrepreneurs can arise with respect to the division of profits within the organisation, high risk associated with newness, and the tradeoff between impression management, legitimation and honesty (Dees and Starr, 1992). Furthermore, entrepreneurs tend to face ethical dilemmas involving their own values, organisational culture, employee well being, customer satisfaction, and external accountability (Payne and Joyner, 2006).

Further, the avenue defining the relationship between Entrepreneurial Leadership and innovation is also ripe enough to attract various investigations and inquiries. Because new ventures often emerge at the cutting edge of innovation, sorting out the ethics involved can be particularly challenging, not only because technology is necessarily always ‘value laden’ (Martin and Freeman, 2004:356), but also because technological advancement, as with other paradigm-shifting exogenous shocks, often requires deep reflection in order to decide how to apply ethical standards, and can even potentially lead to a revision of one’s ethical judgements. So, the role of the entrepreneur firm as the moral


change agent is questioned. Under what conditions might new ventures, in the context of technological advancement and its inherent moral ambiguity, engage in ‘destructive innovation’ (Harting, Harmeling, and Venkataraman, 2006), and what are the moral implications that arise? Turning this notion on its head and relatedly, others suggest that ethical value tensions can themselves serve as a source of innovation and entrepreneurship (e.g. Wempe, 2005).

For instance, in the initial stages of venture formation entrepreneurs are often required to manage social relationships with family and friends who may also be investors and employees (Starr and MacMillan, 1990); putting it differently, entrepreneurial stakeholders always have ‘names and faces’ (McVea and Freeman, 2005). This can give rise to unique and complex ethical problems, especially when the pre-venture and post-venture roles of the stake holding individuals change; a choice to invest or not invest, or a mere change in the social character of a relationship may lead to conflicts of interest or other incentive problems (Dees and Starr, 1992). The small stakeholder networks associated with small firms have also been shown to play a role in increasing unethical behaviour, since social ties can also facilitate collusion and misconduct (Barlow, 1993). The ‘profit-maximisation-for-shareholder-gain’ objective commonly ascribed to larger firms seems ‘inappropriate for the small business’ (Spence, 2004:118), and smaller ventures tend to have a correspondingly supportive view of their competitors (Spence, Coles and Harris, 2001). Furthermore, small business owners tend to prioritise the interests of customers ahead of employees or stockholders (Vitell, Dickerson and Festerv and, 2000); they have also been shown to have differential approaches to community involvement, and these differing initiatives have heterogeneous effects on organisational performance (Besser and Miller, 2004).

Besides acting as catalysers in the economic drive of a nation, entrepreneurship also plays a pivotal role in the societal development. For instance, it is suggested that entrepreneurs can play an overarching and prominent role in building a ‘good society’ (Brenkert, 2002); indeed, the primacy of entrepreneurship within a societal framework is in many ways a pivotal indicator of socio-economic views on self-determination, freedom, wealth disparity, and distributive justice (Nielsen, 2002). Small and medium-sized enterprises, which are often entrepreneurial firms,


have ubiquitous societal influence on norms of civic engagement and the building of social capital (Spence and Schmidpeter, 2003). Entrepreneurial activity is connected with political policies that advance socio-economic freedom (Bjornskov and Foss, 2008; Sen, 1999). As a direct link between individual citizens and economic entities, entrepreneurs and their new ventures have an immediate and particular salience to stakeholder evaluations and judgements about business citizenship (Wood and Lodgson, 2002).

Thus, in the finest and the broadest sense it is very important for an entrepreneur leader to sustain his/her character and integrity in the turmoil of the business world. The life-purpose of a true leader goes further than even the noble concept of profit, i.e. benefiting all stakeholders without hurting the cause of any. Although robust scholarly inquiry has begun in the stream of entrepreneurial ethics, many research questions are still left unanswered.

Table 3: Studies Focusing on ‘Ethics in Entrepreneurial Leadership’Year Paper Key Findings

1983 Boyd and Gumpert

Pressure of lack of training and belonging to a non-business community on an entrepreneur.

1990 Baumol Opportunistic entrepreneurial rent-seeking encouraging corruption and its consequences.

Starr and MacMillan

Initial stages of venture formation entrepreneurs required to manage social relationships.

1992 Dees and Starr Trade-off between impression management, legitimating, and honesty.Conflict of interest and other incentive problems.

1993 Barlow Social ties facilitate collusion and misconduct.

1994 Davidson and Ekelund

Presence of pareto optimality mechanisms, therefore represent timing problems.

1999 Sen Entrepreneurial activity connected with political policies advancing socio-economic freedom.

2000 Chau and Siu Ethical situations for entrepreneurs fraught with ambiguity.

Vitell, Dickerson and Festervand

Small business owners prioritising the interests of customers ahead of employees or stockholders.


Year Paper Key Findings2001 Bucar and

HisrichImportance of entrepreneurial ethics to the global economy.

Davidsson and Wicklund

‘Robber enterprises’: new enterprises profiting at the expense of societal costs.

Spence, Coles and Harris

Smaller ventures correspondingly supportive view of their competitors.

2002 Brenkert Entrepreneurs play an overarching and prominent role in building a ‘good society’.

Nielsen Primacy of entrepreneurship within a societal framework a pivotal indicator of socio-economic views on self-determination, freedom, wealth disparity, and distributive justice.

Wood and Lodgson

New ventures having an immediate and particular salience to stakeholder evaluations and judgements about business citizenship.

2003 Carr Entrepreneurship inherently containing a moral imperative.

2003 Spence and Rutherford

Insistence on empirical orientation on small and emergent firms, rather than just large organisations, in ethics research.

Spence and Schmidpeter

SME’s ubiquitous societal influence on norms of civic engagement and the building of social capital.

2004 Besser and Miller

Differential approaches to community involvement having heterogeneous effects on organisational performance.

Martin and Freeman

Technological advancements reversing ethical judgements.

Spence ‘Profit-maximisation-for-shareholder-gain’ objective commonly ascribed to larger firms ‘inappropriate for the small business’.

2005 McVea and Freeman

Entrepreneurial stakeholders always have ‘names and faces’.

Wempe Ethical value tensions themselves serving as a source of innovation and entrepreneurship.

2006 Harting, Harmeling, and Venkataraman

Technological advancements inherent moral ambiguity.

Payne and Joyner

Entrepreneurs facing ethical dilemmas involving their own values, organisational culture, employee well being, customer satisfaction, and external accountability.


Year Paper Key Findings2007 Anderson and

SmithEntrepreneurship inherently containing a moral imperative.

Dew and Sarasvathy

Entrepreneurship ‘destructive of some stakeholders’ well being.

2008 Bjornskov and Foss

Entrepreneurial activity connected with political policies advancing socio-economic freedom.

Surie and Ashley

Entrepreneurship consonant with ethical conduct.

Entrepreneurship inherently contains a moral imperative. Market dynamics, lack of training and belonging to a non-business community exerts pressure on new entrepreneurs. Thus, they are fraught with ambiguity. Opportunistic entrepreneurial rent-seeking encourages corruption and social ties facilitate collusion of misconduct. Thus, an entrepreneur needs to display self-determination, freedom, wealth disparity, and distributive justice.

‘Entrepreneurial Leadership’ Education

Entrepreneurs are increasingly recognised as powerful stimulators for value creation at individual, company and societal levels. Entrepreneurship is innovation, following the instincts, and pushing it beyond known limits and making it work. It is therefore not surprising that business schools world-wide are increasingly modulating courses and programmes to facilitate their students to an alternative to the classical corporate executive career, instilling entrepreneurial principles and business fundamentals in youth of all personalities and backgrounds. Still, entrepreneurship and more so entrepreneurship education are relatively juvenile fields of study, dating from the 1950s (Schumpeter, 1953), but the concept of entrepreneurship education has been reaching significant dimensions from the early 1980s on and contemporarily. Over 1600 entrepreneurs programmes were developed worldwide by the year 2000 (Katz, 2003) and the number is increasingly continuously.

Significant emergence of entrepreneurship education as a distinct field began in the 1980s (Kuratko, 2005; Zeithaml and Rice, 1987). Downstream value chain issues, such as venture capital, angel financing and other financing techniques, emerged in the 1990s (Dimov and


Shepherd, 2005; Shepherd and Zacharakis, 2001; 2002). However, when a field is to be taught, there has to be some kind of agreement on what exactly it calls for. This, however, does not seem to be the state of play in entrepreneurship.

Entrepreneurship is a ‘widely’ dispersed, loosely connected domain of issues’ (Ireland and Webb, 2007), ‘a mosaic of issues to be explored (Zahra, 2005, p.254). Entrepreneurship is not an intrinsically specialised field, rather it is an all pervasive field of diverse disciplines, and for that reason has been attracting scholars from management, marketing, finance, anthropology, sociology, psychology, accounting, economics, operations management and political science. Most important, if the domain of entrepreneurship and management are to be compared we can define them neither as mutually inclusive nor exclusive. Their relationship is described as overlapping (Ireland et al., 2003). The former is considered more opportunity driven, while the latter is more resource and conversation-driven (Ireland et al., 2003).

Learning entrepreneurial skills is equally important for those students who are less inclined towards becoming entrepreneurs and wish to pursue corporate careers, as entrepreneurship can be considered as a mount of skills interchangeable in any organisational context where innovation, opportunity recognition, risk-taking and other similar imperatives occur. Thus, the significance of integrating corporate entrepreneurship (also called intrapreneurship) into entrepreneurial leadership education. Corporate entrepreneurship is the creation of new business in large established organisations through entrepreneurial people being innovative, creative and generating new ideas (Guth and Ginsberg, 1990; Sathe, 1985). Additionally, intrapreneurship (corporate entrepreneurship) and the need for entrepreneurial cultures have gained much attention during the past few years (Zahra, Kuratko and Jennings, 1999; Kuratko, Ireland and Hornsby, 2001; Morris and Kuratko, 2002).

Today professionals and business educators have evolved beyond the misconception that entrepreneurs are not made but are born. It is becoming clear that entrepreneurship, or certain facets of it, can be taught (Vesper and Gartner, 1997). Peter Drucker, recognised as one of the leading management thinkers of our time, has said, ‘The entrepreneurial mystique? It’s not magic, it’s not mysterious, and is has nothing to do


with the genes. It’s a discipline. And, like any discipline, it can be learned’ (Drucker, 1985). Given the widely accepted notion that entrepreneurial ventures are the key to innovation, productivity, and effective competition (Plaschka and Welsch, 1990), the question of whether entrepreneurship can be taught is obsolete (Charney and Libecap, 2000). Additional support for this view comes from a ten-year (1985−1994) literature review of enterprise, entrepreneurship and small business management education that reported ‘…most of the empirical studies surveyed indicated that entrepreneurship can be taught, or at least encouraged, by entrepreneurship education’ (Gorman et al,, 1997, p. 63).

Solomon, Duffy and Tarabishy (2002) conducted one of the most comprehensive empirical analyses on entrepreneurship education. In their review of entrepreneurship pedagogy, they stated, ‘A core objective of entrepreneurship education is that it differentiates from typical business education. Business entry is fundamentally a different activity than managing business (Gartner and Vesper, 1994); entrepreneurial education must address the equivocal nature of business entry (Sexton and Upton, 1987; Van Clouse, 1990). To this end, entrepreneurial education must include skill building courses in negotiation, leadership, new product development, creative thinking and exposure to technological innovation (McMullen and Long, 1987; Vesper and McMullen, 1988)’. Other areas identified as important for entrepreneurial education included awareness of entrepreneur career options (Hills, 1988; Charney and Libecap, 2000); sources of venture capital (Vesper and McMullen, 1988; Zeithaml and Rice, 1987); idea protection (Vesper and McMullen, 1988); ambiguity tolerance (Ronstadt, 1987, 1990); the characteristics that define the entrepreneurial personality (Hills, 1988; Scott and Twomey, 1988; Hood and Young, 1993), and the challenges associated with each stage of venture development (McMullen and Long, 1987; Plaschka and Welsch, 1990). ‘Experiential learning’ was found to be widespread and diverse in its application from the literature (Solomon and Fernald, 1991). The reported types of learning tools included: business plans (Hills, 1988; Vesper and McMullen, 1988; Gartner and Vesper, 1994; Gorman et al., 1997); student business start-ups (Hills, 1988; Truell et al., 1998); consultation with practicing entrepreneurs (Klatt, 1988; Solomon et al., 1994); computer simulations (Brawer, 1997); behavioural simulations (Mitchell


and Chesteen, 1995); interviews with entrepreneurs, environmental scans (Solomon, et al., 1994); ‘live’ cases (Gartner and Vesper, 1994); field trips; and the use of video and films (Klatt, 1988).

Technology must be embraced within the classrooms. ‘Clearly, for entrepreneurship education to embrace the twenty first century, professors must become more competent in the use of academic technology and also expand their pedagogies to include new and innovative approaches to the teaching of entrepreneurship. For example, the use of video conferencing and streaming of video case studies show promise as viable uses of educational technology. The ability to bring new ‘live’ perspectives from different geographic locations and schools will add to the richness of the educational experience. Cyberspace has virtually erased time and distance transforming the theory of education into the practice of implementation’ (Solomon, Duffy, Tarabishy, 2002, pp. 82−3).

Today it is imperative for entrepreneurship as a discipline to move into a leadership footing within our business schools. Besides, one constituent which is integral to entrepreneurial learning is the constant flow of communication and dialogues between the existing and aspiring entrepreneurs. The lessons learned by existing entrepreneurs who have faced the challenges, paid the prices, and endured the failures when shared ‘make a difference’. ‘Doing the same thing and expecting different results’ has been said to be one of the definitions of insanity. Therefore, it is very important that the emerging generation of entrepreneurship educators avoid the paradigm paralysis consuming so many business disciplines. John Maynard Keynes said, ‘The greatest difficulty in the world is not for people to accept new ideas, but to make them forget about old ideas.’ We must carry on moving boldly ahead with new ideas.

The contemporary belief that entrepreneurship can be taught, and hence learned has far more outreached the traditional belief that entrepreneurs are ‘born’. Modern entrepreneurship education encompasses skill building courses in negotiation, leadership, new product development, creative thinking and exposure to technological innovation. Practical learning tools include interviews and consultation with practicing entrepreneurs. Recent times have witnessed widespread attention on intrapreneurship (corporate entrepreneurship).


Table 4: Studies Focusing on ‘Entrepreneurial Leadership Education’Year Paper Key Findings

1953 Schumpeter Entrepreneurship and more so entrepreneurship education relatively juvenile fields of study, dating from the 1950s.

1985 Peter Drucker Entrepreneurial mystique like any other discipline can be learned.

Sathe Corporate entrepreneurship: creation of new business.1987 McMullen and

LongEntrepreneurial education must include skill-building courses in negotiation, leadership, new product development, creative thinking and exposure to technological innovation.Aid in challenges associated with every stage of venture development.

Ronstadt Entrepreneurial education source of ambiguity tolerance.

Sexton and Upton

Entrepreneurial education must address the equivocal nature of business entry.

Zeithaml and Rice

Emergence of entrepreneurship education as a distinct field beginning in the 1980s.Entrepreneurial education source of venture capital.

1988 Hills Identification of entrepreneur career options as a part of entrepreneurial education.Entrepreneurial education defining entrepreneurial personality.Learning tools including business plans.Learning tools including student business start-ups

Klatt Learning tools including consultation with practicing entrepreneurs.Use of videos, films and field trips.

Scott and Twomey

Entrepreneurial education defining entrepreneurial personality.

Vesper and McMullen

Entrepreneurial education must include skill-building courses in negotiation, leadership, new product development, creative thinking and exposure to technological innovation.Entrepreneurial education source of venture capital.Entrepreneurial education source of idea protection.Learning tools including business plans.

1990 Guth and Ginsberg

Corporate entrepreneurship: creation of new business.

Plaschka and Welsch

Entrepreneurial ventures, key to innovation, productivity, and effective competition.Aid in challenges associated with every stage of venture development.


Year Paper Key FindingsVan Clouse Entrepreneurial education must address the equivocal nature

of business entry.Ronstadt Entrepreneurial education source of ambiguity tolerance.

1991 Solomon and Fernald

Experimental learning diverse in application from the literature.

1993 H o o d a n d Young

Entrepreneurial education defining entrepreneurial personality.

1994 Gartner and Vesper

Business entry fundamentally different activity than managing a business.Learning tools including business plans and live cases.

Soloman et al. Learning tools including consultation with practicing entrepreneurs.Learning tools including interviews with entrepreneurs, environmental scans.

1995 Mitchell and Chesteen

Learning tools including behavioural simulations.

1997 Brawer Learning tools including computer simulations.

Gorman, Hanlon and King

Entrepreneurship can be taught, or at least encouraged, by entrepreneurship education.Learning tools including business plans.

Vesper and Gartner

Entrepreneurship can be taught.

1998 Truell et al. Learning tools including student business start-ups.

1999 Zahra, Kuratko and Jennings

Widespread attention on intrapreneurship (corporate entrepreneurship).

2000 Charney and Libecap

Question of whether entrepreneurship can be taught is obsolete.Identification of entrepreneur career options as a part of entrepreneurial education.

2001 Kuratko, Ireland and Hornsby

Question of whether entrepreneurship can be taught is obsolete.Identification of entrepreneur career options as a part of entrepreneurial education.

Shepherd and Zacharakis

Emergence of downstream value chain issues, such as venture capital, angel financing and other financing techniques, in the 1990s.


Year Paper Key Findings2002 Morris and

KuratkoWidespread attention on intrapreneurship (corporate entrepreneurship).

Solomon, Duffy and Tarabishy

Entrepreneurship education differentiates from typical business education.Cyberspace has erased time and distance in entrepreneurship education.

2003 Ireland et al. Describing domains of entrepreneurship and management as overlapping.

Katz Over 1600 entrepreneur programmes developed worldwide till the year 2000.

2005 Dimovand Shepherd

Emergence of downstream value chain issues, such as venture capital, angel financing and other financing techniques, in the 1990s.

Kutatko Emergence of entrepreneurship education as a distinct field beginning in the 1980s.

Zahra Entrepreneurship, ‘a mosaic of issues to be explored’.

2007 Ireland and Webb

Entrepreneurship, a ‘widely’ dispersed, loosely connected domain of issues’.

The Grim Side of ‘Entrepreneurial Leadership’

The literature about entrepreneurship is supportive and positive, implying the uniform benefits accruing to the economy, to individuals, and to businesses as a result of entrepreneurship. But in reality this depicts only half of the picture. There has been an emerging strand of research that focuses on the dark side of entrepreneurship (e.g. Baumol, 1990; Kets de Vries, 1985; Osborne, 1991; Shane, 2008; Webb, Tihanyi, Ireland and Sirmon, 2009; Wright and Zahra, 2011).A trifling number of researchers have enquired into the dysfunctional aspects of entrepreneurship pointing out that there definitely exists a darker side. For instance, Osbourne (1991) identified the dark side as the ‘corrupting power of ownership’, and cited examples of situations in which the power of ownership corrupted the organisation. Cole (1989) described the entrepreneurial self and alluded to the reality that entrepreneurs are often ‘displaced persons’ who are entering the pursuit of ownership for less than sterling goals. De Vries (1989) has developed four concepts in his description of some of the ‘darker sides of entrepreneurship’: the need for control, a sense of


distrust, the need for applause, and defensive operations. He has further elaborated that in extreme cases of distorted reasoning and action, the transition necessary for organisational growth is difficult, if not impossible, and the organisation may be destined for perpetual smallness, or, more unfortunately, destruction. An entrepreneur who is facing a great inner struggle with authority and control issues also has to handle difficulties in working with others in structured situations, as structure can be stifling. At least one author has posited that entrepreneurship can be hazardous to one’s health (Buttner, 1988).

Vast amount of literature is staunched to extolling the rewards, achievements and successes of entrepreneurs. However, a darker side of entrepreneurship also exists. The entrepreneur’s confrontation with risks is immense where he/she is constantly stalked with financial risk, family and social risk, psychic risk and stress. Besides, as quoted by Kuratko, D. (n.d.), in addition to the challenges of risk and stress, the entrepreneur also may experience the negative effects of an inflated ego. In other words, certain characteristics that usually propel entrepreneurs into success also can be exhibited to their extreme. The four prominent of these characteristics that may hold destructive implications for entrepreneurs are: an overbearing need for control, sense of distrust, overriding desire for success, and unrealistic optimism. At the same time, he has specified that all entrepreneurs do not fall prey to these scenarios, nor do each of the characteristics presented always give way to the ‘destructive’ side. Nevertheless, all potential entrepreneurs need to know that the dark side of entrepreneurship exists. Thus, entrepreneurs can be connoted as a different breed of managers possessing distinct personality characteristics from others. Sometimes these characteristics, which are pivotal for their successes, prove detrimental to their personal cause.

Every burst of brilliance holds a dark aspect. De Vries (1989) argues that: Closely related to the entrepreneur’s need for control is a proclivity toward suspicious thinking... Because entrepreneurs have pervasive fears of being victimised, they are continually scanning their environment for something to confirm their suspicions. So, it becomes imperative that entrepreneurs, existing and potential, retain an ever-aware attitude about these potential hazards of entrepreneurship as further elaborated by McKenna (1996). Self-awareness, in relation to the potential darker side of


the entrepreneurial characters, is an important aspect of not only starting a business, but growing a business beyond the entrepreneurial stage. If the entrepreneurial character/personality does include the need for control, a sense of distrust, the need for applause and defensive operations, it is important for entrepreneurs and potential entrepreneurs to recognise when such characteristics become negative for the developmental potential of the entrepreneurial company. If an entrepreneur knows he/she will never be able to ‘let go’, he/she should remain a successful, small, niche player,

Table 5: Studies Focusing on ‘Grim Side of Entrepreneurial Leadership’Year Paper Key Findings

1985 K e t s d e Vries

Emerging strand of research focusing on the dark side of entrepreneurship.

1988 Buttner Entrepreneurship can be hazardous to one’s health.

1989 Coles Identification of entrepreneurs as ‘displaced persons’ who are entering the pursuit of ownership for less than sterling goals.

De Vries Four concepts in the description of some of the ‘darker sides of entrepreneurship’: the need for control; a sense of distrust; the need for applause; and defensive operations.Proclivity toward suspicious thinking.

1990 Baumol Emerging strand of research focusing on the dark side of entrepreneurship.

1991 Osborne Emerging strand of research focusing on the dark side of entrepreneurship.Identification of dark side as the ‘corrupting power of ownership’.

1996 McKenna Self-awareness in relation to the potential ‘darker side’ of the entrepreneurial character.

2008 Shane Emerging strand of research focusing on the dark side of entrepreneurship.

2009 Webb, Tihanyi, Ireland and Sirmon


2011 Wright and Zahra


n.d. Kuratko Negative effects of an inflated ego.


or risk personal and organisational self-destruction’. Thus, an entrepreneur cannot change the nature of his/her journey, but can alter the experiences, rewards and outcomes of it by playing it safe and staying judicious.

The characteristics that usually propel entrepreneurs into success, if exhibited in extreme, propels them downwards via an overbearing need for control, sense of distrust, overriding desire for success, and unrealistic optimism. So it becomes imperative that all entrepreneurs, existing and potential, keep a constant vigilance about their respective desires and attitudes, and stay judicious.

ConclusionPast thirty years have witnessed an entrepreneurial revolution worldwide. This revolution is proving more formidable to the twenty first century than the industrial revolution was to the twentieth century. An innovative spirit resides in all of us. An entrepreneurial leader discovers his/her creative spirit, hones his/her skills, and utilises his/her potential to serve not only his/her personal cause, but also becomes a critical contributor to economic growth through his/her leadership, innovation, management, research and development effectiveness, competitiveness, job creation, productivity and formation of new industry. He/She creates an internal marketplace for ideas within the organisation, and encourages the employees to act on these ideas.

Entrepreneurial Leadership is a mandate for all firms, small and big to survive and flourish. Researchers today are delving into the various elements that impact Entrepreneurial Leadership. A better understanding of the elements that comprise this concept is of vital importance in understanding and developing the concept itself.

The early research of the 1970s focused on how entrepreneurship could be developed inside existing organisations, thus leading to the emergence of corporate entrepreneurship over past four decades. The older leadership theories, viz., traits, situational, behavioural/styles and functional have been used since decades for increasing leadership effectiveness and efficiencies. However recent times have witnessed the emergence of leadership philosophies, viz., ‘steward leadership” and ‘ethical leadership’. James


Scouller (2011) presented the integrated psychological leadership theory which attempts to integrate the conventional theories while addressing their limitations and focusing on the leader’s psychology; emphasising the idea that leaders should view leadership as an act of service and should care equally about their follower’s needs alongside their own needs. Thus, the link between the modern leadership theory and the philosophy of ‘servant leadership’ has strengthened in the twenty first century. Unlike other leadership approaches possessing a top-down hierarchical methodology, servant leadership instead emphasises collaboration, empathy, trust and most importantly the ethical use of power. The objective is to enhance teamwork and personal involvement, and enhance the progress of individuals in the organisation. A ‘servant entrepreneur’ always places service above profits. That does not mean that he/she is any less savvy as a businessperson. But service is first. Practicing servant entrepreneurship is a big shift for majority of us to make; tenuous but big. This concept can be seen as a long-term concept to work and live, and has the potential to impact the society in a positive way.

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Third International Conference on

EmErging TrEnds in ThE global Financial landscapE

approaches, challenges & opportunities

23rd & 24th February, 2015Symbiosis Centre for Management Studies, Pune, India

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