emerging entrepreneurs in india

8/7/2019 Emerging Entrepreneurs in India

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Emerging Entrepreneurs in India.

The adage "give a man a fish, you feed him for a day;teach a man to fish, you feed him for a lifetime"

Entrepreneurship :The Process of Bearing Risk of Running a Business Entrepreneur: A person who takes the risk of converting a new idea into reality.

Requirements to be an entrepreneur:

Innovation,

Creativity

Risk Taking

Organization

Promoting Entrepreneurship

In India, where over 30 crores people are living below the poverty line, it is simply impossible for any

government to provide means of livelihood to everyone.

Such situations surely demand for a continuous effort from the society, where the people are

encouraged to come up with their entrepreneurial initiative.

JRD TATA

MUKESH AMBANI

NR NARAYAN MURTHY

When 27-year old Sarathbabu graduated from the Indian Institute of Management, Ahmedabad, he

created quite a stir by refusing a job that offered him a huge salary. He preferred to start his own

enterprise -- Foodking Catering Service -- in Ahmedabad

What will be the qualities needed to succeed in this new world?

First and foremost, we need the entrepreneurial spirit.

Outside India, this spirit has been very evident in the IT industry.

35% of the start-ups in Silicon Valley are by Indians.

We need to have similar risk-taking ability within the country as well.


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Qualities of an Entrepreneur

. Common Sense:

2. Specialised Knowledge of the Field:

3. Self Confidence:

4. Ability to Get Things Done:

5. Creativity:

6. Leadership

. Communication Skill:

8. Willingness to take Risk:

9. Willingness to Accept Criticism:

10. Self Motivation and

11. Determination

India, one of the rapidly growing economies with human capital, has a distinct global competitive advantage in terms ofcost and quality. While the picture of India in the popular business press is more about its dominance in software andbusiness process outsourcing, the scale and market opportunities in India are much more extensive and very appealing.

Newly established and mid-sized companies provide innovation and cost-effective operations which hold the key tomeeting the global challenge of rising demand from developed countries and competition from other developingeconomies in many emerging markets such as education, energy, pharmaceuticals, infrastructure and food processing.This Panel will focus on challenges and opportunities an entrepreneur will face, while trying to establish a start-up in Indi

Entrepreneurial activity

Even in the early part of this decade, the degree of entrepreneurship activity as measured by the number of peopleengaged in new and early stage ventures did not progress nearly as quickly in China as in India. According to the

Global Entrepreneurship Monitors report for 2003 the most recent statistics available for India 12.5 per cent ofthe total Indian working population was involved in opportunity-based ventures, whereas in China the figure wasabout half that at 5.5 per cent. Furthermore, while on trips to India, Turner says the young Indians he has met thereseem to have some grasp, if very incomplete, of what is involved in launching a new venture, whereas the youngChinese aspiring entrepreneurs I come into contact with seem to be much further back in this respect.

This may, in large part, be because of the entrepreneurship environment in the two countries, Turner says: You aremore likely to become an entrepreneur if someone in your environment is, or has been one your father for instance,or some other family member. However beyond the family, a strong entrepreneurial community such as the hometown or cluster of towns in the home area might also encourage some to turn to entrepreneurship. Its a matter ofentrepreneurship appearing to you in those you see around you as a perfectly normal and widely practiced way ofpursuing a career, Turner explains.

EMERGING OPPORTUNITIES FOR INDIAN ENTREPRENEURSIt is high time out entrepreneurs realize the importance of being choosy in project identification. Till recently, we in India kept on

exploring the possibilities of manufacturing almost everything, right from pins to planes and screws to sub-marines. Just as

companies and individuals carry out SWOT analysis for identifying business opportunities for our entrepreneurs. The completing

demands for our limited and meager resources are many and unless we apply a degree of selectivity in our approach in resource

allocation, we will continue to be a nation of foundation stones. Given below are a few areas where we can think of concentrating

more.

Tourism and Hospitality

India is a country of many countries. Our diverse culture, religions, languages, rich heritage and vast geographical area make the

country a place of tourist attraction. Hills and beaches, temples and palaces, the deserts and the jungles are all these. There are not


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many countries in the world where you can surf the sand and the sea. Privatization of airports and aviation sector could further give

boost to tourism industry. Tourism should therefore receive topmost priority.

Auto Ancillaries

India may not be the best car-manufacturing base, but we can certainly be the best ancillaries to the automobile industry world over.

Our entrepreneurs are capable to developing global scale auto ancillaries. By all means, we should also continue car manufacturing,

but we must do it at a scale and quality at which the world community takes us seriously.

Two Wheelers

As a nation we have excelled in production of two wheelers - be they cycles, scooters or motorcycles. We have the technology, the

skills, and most of all, the critical mass to affect a breakthrough. We should aim at capturing the world's two-wheelers markets.

Garments

India has the potential of becoming a leading supplier of garments, apparels, silk, hosiery and textiles. Indian textiles are well known

world over. Our Ludhiana and Tirupur entrepreneurs have done proud to the country in the area of woolen and cotton industry. By

understanding customer needs through extensive and systematic market research we can capture more markets world over.

Software

India has already made a strong dent in world's software market. For us the most natural thing is to be number one software and

consultancy services suppliers. Our country has the right resources in the form of vast population of educated youth. Other

developed and developing countries with vast resources can perhaps continue making advances in manufacturing of computers,

computer hardware and computer chips year after year. Software exports from India are growing more than 50 per cent per annum.

Light and Medium Engineering Industry

Many countries of the world are far ahead of India in manufacturing aircraft, ship and products of similar nature. Unfortunately, we in

India try to manufacture everything and finally end up doing nothing well. Our strength lies in the light and medium engineeringindustry. We are in a position to provide a leading edge in this industry. India also has the capability of becoming world's best

foundry products maker. We should concentrate more areas where we have an edge rather than thinly spreading our limited

resources and expertize in areas like manufacture of aircraft and flexible machine systems.

Trading/Supplies

Among India's vast population there are communities like Marwaris, Punjabis, Gujaratis, Tamilians, etc., with acumen for trading and

acting as suppliers. It is, therefore, logical on part of such communities to become global players in trading and operate at

international levels. By doing so we will be doing something that we are good at.

Education and Training

India has some of the world's best universities and educational institutes, i.e., JNU, IIMS, IITS, IISc, etc. The cost of education and

training in India is nominal in comparison to developed countries. There is vast reservoir of talented people in the country. By

pooling resources and networking with resource organizations we can create education and training facilities not only for Indians but

also for scholars from abroad. Indian educational institutions, both government and privately managed, have the capacity and

expertise to offer affordable education to persons from other countries.

Poultry


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India holds lot of potential for developing its poultry and poultry - based industries. A vast population and export potential make this

industry a lucrative activity for those who want to be in poultry allied industry.

Food Processing

India has emerged as one of the topmost food producing countries in the world. Indian climate is suitable for growing vast varieties

of food grain. At present, most of the food grain is sold in raw form. In food habits the world over is undergoing change. As a matter

of convenience, people, especially youngsters, prefer fast food or ready to eat food. Indian food is well known world over. We need

to exploit this potential by processing our food grains. Processed food will have good market in India as well as abroad. Food

processing would also help us earn must-needed foreign exchange.

Fruit and Vegetable Processing

Fruit and vegetables are grown in plenty in India. The country has emerged as a leading producer of fruit and vegetables. Because of

poor transportation facilities, inefficient infrastructure, bumper crops and lack of marketing facilities, many a time, lots of vegetables

and fruit simply go waste. We need to create fruit and vegetable processing facilities all over the country so as to harness the

potential for their production. Fruit and vegetable processing offers potential for high value addition and potential entrepreneurs can

earn a lot from such products.

Manufacture of Business Attires

Corporate Gifting

Corporate gifting has picked up in India in the recent years. Indian companies and business organizations spend crores of rupees on

giving gifts to their employees, shareholders and business associates on occasions like Diwali, New Year and Annual General

Meetings. As per rough estimates, corporate India spends approximately Rs.1000 crore every year on corporate gifting and the

culture is on the rise. Potential entrepreneurs, especially those good in public relations, can easily get into such business. Other

associated businesses in this line could be manufacture of greeting cards (Diwali, New Year, Christmas, Valentine day, Birthday, etc.)

for various occasions.

Herbal Medicines and Skincare Products

India has the distinction of growing vast variety of herbs. Indian population of more than a billion ensures a sufficiently large market

for herbal medicines and skincare products. People, world over, in general and in developed countries, in particular, are becoming

increasingly aware of after-effects of allopathic medicines and synthetic skincare products. Women, in particular, are slowly switching

over from synthetic skincare products to herbal-based products. India has an established tradition of growing and using variety of

herbs. We need to go in for commercialization of herbal-based medicines and skincare products in a big way.

Mineral Water

Even though mineral water manufacturing was started in India during the 1960s, but the market did not pick up till 1985. During late

1980s and 1990s mineral water market in India increased by an impressive rate of 30-40 per cent annum. Market for mineral water

in India is spreading very fast. People are becoming health conscious. We are going to enter in an era when potable bottled water

would find place in almost all general stores and it will become an unavoidable expenditure for people at large. Statistics reveal that

size of Indian Mineral water market during 1999 was of the order of approximately Rs.800 crore. Many small-scale entrepreneurs can

find business opportunities in this fast growing market.

Paints, Enamels and Varnishes

India is presently experiencing an automobile revolution. Standard of living of the sizeable Indian middle class is also improving at a

rapid pace. Both these trends indicate an increasing market for paints, enamels and varnishing. Industrial and household use of


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these products is quite promising and much better than many other products. Manufacture of these products in small-scale sector

should therefore need to be considered as a viable business proposition.

Organic Farming

The concept of organic farming is of very recent origin in India, Many developed countries grow food organically. Health conscious

persons prefer organically grown food. In India also, people are becoming increasingly health conscious. They are well aware of after

effects of food and vegetables, which are grown by making excessive use of chemical fertilizers, pesticides and insecticides. Some

companies and individual farmers have started organic farming in India. To ensure better health for our people we need to promote

organic farming in a big way. Our potential entrepreneurs with interest in agricultural related activities would perhaps find good

business opportunities in this area.

Music and Entertainment

Music and entertainment are required the world over. With a large number of channels in operation and a revolution in satellite

technology the music and entertainment industry has thrown open numerous opportunities. Potential entrepreneurs should grab

opportunities in the fast developing music and entertainment industry.

Writing Instruments

Literacy rate in India is slowly improving. Some of the conventional writing and learning materials are fast becoming obsolete. Also

because of economies of scale and cheap labor availability, we as a nation are in a position to manufacture writing instruments at

affordable prices. Now with access to better technologies and huge Indian and overseas markets, our entrepreneurs have an

opportunity to exploit this market.

Plastics

Per capita consumption of plastics in India is hardly 2-5 per cent of per capita consumption in developed countries like the US. Use of

plastics in India, both in Industries and households, is going to pick up in coming years. In spite of ill effects of use of plastics, it is

rather impossible to manage without it. The Indian plastic market is presently experiencing a growth rate of more than 10 per cent

per annum. It provides scope for setting up small-scale plastic processing enterprises for manufacture of variety of plastic products.

Toys

Toy manufacturing (especially stuffed toys) is a low technology based less capital intensive and highly labor intensive industry.

Superstores abroad usually source toys from China, Korea and Hong Kong. Consumption of toys in India and abroad is increasing. In

India, the toy market grew 10-12 per cent per annum during the late 1990s. It is estimated to touch an annual growth rate of 15 per

cent soon. India has potential to manufacture cost effective toys largely for Indian market and also for world toy market. If China

and Korea can do it why cannot we? Our entrepreneurs need to consider toy manufacturing as a rewarding business.

Floriculture

Indian flowers are becoming increasingly popular in the world market. Flower market, especially exports, is becoming favorable to

Indian florists. Improvements in infrastructure and transport facilities would further brighten the prospects of Indian flowers abroad.

At the same time, florists need to concentrate on domestic flower market as well.

Health-care Sector

India's population to hospital bed ratio is a very poor compared to World Health Organization's standards. (India's population to

hospital bed ratio is 1300: 1 against the WHO recommended ratio of 250: 1). With the funds receding in government kitty, private

sector will be required to play major role in the health-care sector. Health-care, both in corporatized sector (Organized sector) and

also in informal sector, has potential for high growth in India.


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Biotechnology

It is believed that early twenty-first century will belong to biotechnology and software in India. In India biotechnology has just

started picking up. Application of biotechnology especially in the areas of agriculture, horticulture, sericulture, poultry, dairy and

production of fruit and vegetables will pay an important role in future. We should go for commercial application of biotechnology in

various sectors of economy wherever it is found feasible. Biotechnology would therefore throw open many opportunities for

entrepreneurs in future.

Information Technology (IT) Enabled Services

Business to Business Portal Solution (B2BPS) Services would be needed in a big way to address the emerging needs of IT enabled

services sector. IT enabled services is a US$ 180 billion business. The sector includes services like GIS digitization, medical and legal

transcription, medical billion, and insurance claim processing and archival and indexing of records. All these, and many more

services, could be provided by Indian entrepreneurs. The pool of smaller service providers from India can meet the needs of

outsourcing from US, and other developed countries.

The

Education Portals

Application of information technology to education sector has started revolutionizing the process of education in the country. MNCs

and Indian Internet companies have started setting up education portals in the country. In days to come professional education like

management, medicines, engineering, law etc., would be taught by making extensive use of internet. Under the new innovative and

emerging concept students would study and learn educational courses both at school and college level online, i.e., through internet.

Some companies have already set up their web-sites, which offer various courses for school level students. IT-friendly potential

entrepreneurs can look forward to getting franchise of major players in providing IT based educational courses.

Organized Retailing

As per industry estimates, total consumer spending in India is of the order of Rs.3, 80,000 crore. Current volume of organized

retailing in India is about Rs.5, 000 crore. The organized retail industry business in India is expected to grow between 50-60 per cent

each year during the next few years. Organized retail industry is likely to achieve sales volume of Rs.30,000 crore by 2005 and

would move into smaller cities in India, given that there is beginning to be some comb lance of competition among organized

retailers in the big cities.

Processing, Refrigeration and Transportation of Food, Vegetables and Fruits

India has long suffered the lack of a comprehensive cold chain. A large Purdon of agricultural and other products produced in the

country perish due to the lack of a serviceable refrigerated storage and distribution network. A detailed study conducted by the

government on the agricultural and food industry has revealed that one-third of the products are ruined due to the lack of adequate

storage and preservation facilities. Meat, poultry, fresh produce and dairy can only be distributed within limited geography and need

to be consumed in a short period. Also, sensitive medical requisition like vaccine and pharmaceuticals are suffering due to the lack of

refrigerated distribution. This state of affairs needs to be changed. Food and other precious resources in our country must be

preserved at all costs. The refrigeration industry would be required to come through providing a wide range of industrial and

commercial refrigeration services that can serve the entire gamut of cold storage and refrigerated transport to retail display and

preservation units.

Cruising Business

The cruising business is gradually picking up in India. The Rich and the Famous has led to immense popularity of cruises in last four

years (1996-1999) with numbers increasing to 15,000 in 1999 from practically zero in 1996. The business of cruising represents

enjoying the luxury of dining in fine restaurants, casinos, excursions to golden beaches and exotic islands. The perception of Indians


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about cruising business is changing. People no more consider cruising as meant for elderly and retirees alone. The concept of a

cruise holiday is becoming immensely popular in India. The number of Indians holidaying on cruising trips in increasing due to

enhanced awareness through better marketing and advertising by our operators, fatter pay packets, and a growing tendency to

splurge.

To site an example of what kind of services cruises offer, Mr. Gautam Chadha, Chief Executive Officer of Discover the World

Marketing (this company owns two famous cruise lines, Royal Caribbean Cruises and Celebrity Cruises) said P "You will never, ever

be bored. You simply find a corner on ship's library, relax in a deck chair or lounge on private veranda. For fun loving people, ships

organize various activities such as flower arrangements, art auctions, cabarets, casino - Las Vegas style, guest singers, live bands,

and the like". He expects a growth rate of 25-30 per cent per annum in cruising business. At present, India does not represent even

a fraction of the total world market for cruises. There are more than four million passengers onboard various cruise lines worldwide

every year, he added. Recently developments in cruising business clearly indicate good opportunities in this sector.

Courier Services

E-commerce related business is poised for exponential growth in the early 21st century. Expansion of E-commerce in India and world

over has given a boost to courier business. Recent increase in share prices of leading courier companies (1400 per cent increase in

share price of Elbee Services in just six months and 400 per cent increase in share price of Blue Dart) is a clear indication of growth

potential of courier related businesses.

Summer Solution Related Business Opportunities

Summer and power cuts are synonymous in India. Gone are the days when standby solutions to power cuts in the form of 'Hat and

Pankha', 'Khas ki Chik', 'Surahi', etc. used to be kept handy. With the advent of technology solutions to frequent power cuts are

immense. And for the times when power is regular life can be bliss with a variety of cooling devices in the form of high tech air

conditioner and coolers. With latest state of the art technology being imbibed in these gadgets, healthy air and healthy food are a de

rigueur in today's AC and refrigerators. Silent invertors and one-pull generators are another lot becoming an essential buys for

almost every household. Depending on the demand a variety of invertors and generators can be manufactured by small-scale

entrepreneurs. Servo voltage stabilizers online UPS, line interactive UPS, automatic voltage stabilizers, constant voltage

transformers, manual voltage regulators, isolation transformers, high voltage regulators, high voltage break down testers, electronic

air conditioner protectors, spike suppressors and busters are the other products related to summer solutions which can easily be

manufactured in small scale units

emerging entrepreneurs in india

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