Ethics is the systematic study of rightness and wrongness of human conduct and character as known by natural reason. Ethics can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.

Entrepreneurship is the act of being an entrepreneur, which can be defined as one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses. However, in recent years the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as Intrapreneurship and may include corporate venturing when large entities spin-off organizations.

Those two aspects are here brought together to an "Ethical Entrepreneurship" - discussing the role of entrepreneurial development, ethical challenges in entrepreneurship, theories of entrepreuneurship et al.. The paper comes to focus on challenges faced by women entrepreneurs in India and women entrepreneurs forging ahead with startups.

Extracto

CHAPTER 1

ETHICS & ENTREPRENEURSHIP AN INTRODUCTION

Richard William Paul and Linda Elder define ethics as, "a set of concepts and principles that

guide us in determining what behavior helps or harms sentient creatures".

Ethics is the systematic study of rightness and wrongness of human conduct and character as

known by natural reason. Ethics can be defined as the critical, structured examination of how

people & institutions should behave in the world of commerce. In particular, it involves

examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when

the actions of individuals or firms affects others.

Entrepreneurship

According to American economist Peter Drucker (1909-2005), The entrepreneur always

searches for change, responds to it and it exploits it as an opportunity.

Entrepreneurship is the act of being an entrepreneur, which can be defined as one who

undertakes innovations, finance and business acumen in an effort to transform innovations

into economic goods. This may result in new organizations or may be part of revitalizing

mature organizations in response to a perceived opportunity. The most obvious form of

entrepreneurship is that of starting new businesses. However, in recent years the term has

been extended to include social and political forms of entrepreneurial activity. When

entrepreneurship is describing activities within a firm or large organization it is referred to as

Intrapreneurship and may include corporate venturing when large entities spin-off

organizations.

Ethical Entrepreneurship:

Johan Wempe says Ethical entrepreneurship, in a nutshell, amounts to the achievement of

ethical goals through entrepreneurship.

In simple terms, the implication of ethics to entrepreneurship is known as ethical

entrepreneurship. Ethical principles have always increased the value of the business. It helps

the business in retaining good employees and creates a positive environment for the business.

Characteristics of Ethical Entrepreneurship:

Measured risk: Entrepreneurs are risk takers, staking money, time, and personal

reputations to manifest their visions. But, like heroes, entrepreneurs are rarely reckless.

Rather, successful entrepreneurs take measured risks, weighing the stakes and the potential

consequences, and then stepping into unknown territories to generate results. As risk takers,

successful entrepreneurs understand that failure can be a vital part of success, and that

learning from mistakes can be a way of reaping benefits from situations that might otherwise

feel like failures.

Physical responsibility: Businesses run on money, so entrepreneurs must have a solid

sense of how to raise and manage funds. Successful entrepreneurs have an intuitive sense of

how much money they will need to run their companies, but they supplement this sense with

concentrate documentation and calculations to migrate uncertainties. Entrepreneurs are

willing to risk money by making investments in building their businesses, but they keep a

close eye on the numbers in order to understand how much they are spending and whether

their expenditures are bringing about the desired results.

Creativity: Starting a business is a creative endeavor that starts with conceptualizing a

product or service, and then building a practical infrastructure that can sustain itself while

delivering that product or service. Entrepreneurship requires creative problem solving as well

as creative product development, and entrepreneurs have the creative freedom to think

outside the box and develop unique strategies that balance personal values with practical

constraints.

Management skills: Successful entrepreneurs see the big picture. They have the skills

and the humanity to define their own role in company operations, and the interpersonal skills

to successfully delegate the tasks they can`t complete themselves. Successful entrepreneurs

are successful managers, sharing the company`s vision and clearly communicating the ways

that his vision is infused into mundane daily tasks. An entrepreneur`s management skill`s

come into play in the process of carefully choosing employees, and these skills come into

play in the process of carefully choosing employees, and these skills carry over into careful

training, as well as the daily challenges of motivating and organizing workers.

Examples where entrepreneurship has failed because of ethical issues:

Subhiksha retail:

By the end of 2008, Subhiksha, one of the most popular retail brands of India was on the

verge of bankruptcy. Ramaswamy Subramanian, CEO of Subhiksha, the most written-about

Indian CEO was looking for means of reviving the retail chain. Subhiksha landed in trouble,

after failing to pay its employees, suppliers and landlords for many months in 2008. Adding

to its woes, its biggest investors I-venture (Venture Capital arm of ICICI, India's largest

private bank) and Zash Investment (AzimPremji's investment company) did not extend any

help to the ailing discount store chain.

The condition of the company was well-manifested by the pillage of around 600 Subhiksha

stores in February 2009, as security personnel did not attend duties due to lack of payment.

The perpetrators could be, Subramanian told, "disgruntled vendors, employees or anti-social

elements taking advantage of the situation". Crumbled by the credit crunch, Subhiksha's

operations came to a standstill with bare shelves and closed shops. With one of the renowned

retail pioneers falling prey to the recession, the great story of the glorious organized Indian

retail seems to be fading.

King fisher airlines:

The operating costs were too high, and on top of that their debt increased too fast before the

business became sustainable. Thus, higher market share came at increasing costs and even

higher losses. They overpaid for the Deccan Air acquisitions. They acquired it merely to start

international operations and soon exited the low cost airline business. They made more losses

every year but on every occasion the company pointed that the core reason for dipping

fortunes of the airlines was the airline fuel charges and high fare prices. Structural issues

made the airline business unprofitable.

Vijay Mallya, (Chairman of UB group) claimed that all his debts were marginal compared to

the assets and equity that his business portfolio had. He believed in this logic so much that

soon his own good money started chasing his bad investment in the airline, with no light at

the end of the tunnel or path to profitability in sight. His ability to raise more debts and his

relationships with the influential people created an aura of inevitable success, till everyone

deserted him. He was probably hoping to get a foreign investor, and was pursuing market

share growth to get a high valuation, but the rules on FDI in aviation changed too late for

him. The valuation of King Fisher airlines crashed in no time.

The problem with entrepreneurs is that either they micro manage or over delegate. Both these

attitudes are harmful in the long run. When the going is good, everything seems to be fine.

But when the downfall begins, entrepreneur starts feeling the pinch.

Good ethical behavior also helps entrepreneurs to develop good relations with everyone in

the business during the initial period of establishing the business. Reputation for meeting

one`s commitment also helps entrepreneurs to win customers. While an entrepreneur may or

may not have very high ethical standards, a bad reputation for flouting norms of ethical

behavior is definitely anathema for an entrepreneur trying to establish a new business.

CHAPTER 2

INTRAPRENEUR AND ENTREPRENEUR

An Entrepreneur is someone who, through his or her skills and passion, creates a

business and is willing to take full accountability for its success or failure. An Intrapreneur is

someone who utilizes his or her skill, passion and innovation to manage or create something

useful for someone else`s business with entrepreneurial zest. Both are committed to the

business.

Entrepreneurs provide the spark, Intrapreneurs keep the flame going.

Entrepreneurs are found anywhere their vision takes them. Intrapreneurs work within

the confines of an organisation.

Entrepreneurs face many hurdles and are sometimes ridiculed and riddled with

setbacks. Intrapreneurs may sometimes have to deal with conflict within the

organisation.

Entrepreneurs may find it difficult to get resources. Intrapreneurs have their resources

readily available to them.

Entrepreneurs may lose everything when they fail. Intrapreneurs still have a pay check

to look forward to if they fail.

Entrepreneurs know the business on a macro scale. Intrapreneurs are highly skilled and

specialized.

An entrepreneur spots an opportunity in the marketplace and has the courage and zeal

to turn this opportunity into business. Intrapreneur uses his or her passion, drive and

skill to manage the business or create something new and useful for the business.

ADVANTAGES OF SKILLED INTRAPRENEURS WITHIN THE COMPANY

Intrapreneurs are the drivers of innovation within companies. They seek policies,

technology and application that resolve and break the barriers to productivity..

Intrapreneurs are major contributors to increase in productivity within companies.

Intrapreneurs are the driving force that moves a company forward and they will

inevitably rise to the top of the company as they understand the company from all

levels.

Intrapreneurs take risk and find more effective ways to accomplish task.

Thus we can say that ENTRAPRENURS and INTRAPRENEURS are the pillars of any

organization. They both work for the success of an organization but in different ways.

Entrepreneurs face more risks when compared to Intrapreneurs.

CHAPTER 3

ROLE OF ENTREPRENEURIAL DEVELOPMENT

Economic development essentially means a process upward change whereby the real per

capital income of a country increases over a long period time. Adam Smith the foremost

classical economist assigned no significance to entrepreneurial role in economic development

in his work "An Enquiry into the nature and Causes of the Wealth of Nations" published that

rate of capital formation as an important determinant for economic development .

The economic history of developed countries like America, Russia and Japan tend to support

the fact that entrepreneurship plays a very important role. The crucial role played by the

entrepreneurs in development of the western countries has made people of underdeveloped

countries too conscious about the need for the entrepreneurship. Now, people have begun to

realize that for achieving the goal of economic development, it is necessary to increase

entrepreneurship both quantitatively and qualitatively in the country. It is only the active and

enthusiastic entrepreneurs who fully explore the potentialities of the countries available

resources like land, labour, capital, and technology.

The ability of the entrepreneur lies in perceiving the opportunity which others do not take

notice of and making it stand out from others. Essentially the entrepreneur searches for

change, analyzes the need and brings together the manpower, material and capital required to

respond to the opportunity what is analyzed from the market.

The role of entrepreneurship in economic development

varies

from

economy

economy. This depends upon its material resources , industrial climate and its ability to

use it to its

best. Establishing an industry and thereby developing entrepreneurship is not one man

activity. In fact, it involves multi prolonged activity. The important role that entrepreneurship

plays in economic development of the country can be put together in a more systematic and

orderly manner.

Entrepreneurs create social change through unique offerings of goods and services

entrepreneurs break away from tradition and indirectly support freedom by reducing

dependence on obsolete system and technology. Entrepreneurship promotes balanced

regional development. Entrepreneurship promotes capital formation by mobilizing the idle

saving of the public.

Entrepreneurship provides large-scale employment Thus, it helps reduce the

unemployment problem in the country which is the root of all socio economic problems. It

helps in reducing the concentration of economic power in fewer hands. It

encourages

effective resource mobilization of capital and skill which can remain unutilized and idle. It

also promotes countries export which is an important ingredient in to economic development.

It is clear that entrepreneurship serves as a catalyst of economic development .On the whole

the role of entrepreneurship in economic development of a country can be best put as an

economy is the effect for which entrepreneurship is the cause.

CHAPTER 4

DIFFERENCES BETWEEN CSR (CORPORATE SOCIAL RESPONSIBILITY) AND

CSE (CORPORATE SOCIAL ENTREPRENEURSHIP)

INTRODUCTION

Corporate social entrepreneur is defined as an employee of the firm who operates in socially

entrepreneurial manner identifying opportunities for championing social responsible activity.

Corporate social responsibility refers to business practice that involves participating in

indicatives that benefit society.

What is CSE??

CSE often becomes necessary when there is a difficult crisis between financial objectives of a

company and public wellbeing. They are not only the crazy ones with the great ideas, but

most importantly they are the risk-takers who take ownership of ideas and bring them

forward

It is relevant to both practitioners and scholars of business, management and more

specifically to the fields of business ethics, sustainability, organization, behavior,

entrepreneurship, human resource management and business strategy.

The notation of CSE is multidisciplinary as the concept is inherently linked with the notation

of personal values derived from the study of sociology, anthropology and social psychology.

What is CSR??

CSR is becoming more main stream as forward thinking companies embed sustainability into

core of their business operations to create shared value for business and society.

Types of CSR

Environment: one primary focus of CSR is the environment. Business, both small and large

have a large carbon footprint any steps they take to reduce footprints are considered both

good for company and society.

Philanthropy: Business also practices social responsibility by donating to national and local

charities. It is beneficial to both local and community progress.

Ethical labour practices: By treating employees fairly and ethically companies can also

demonstrate their CSR.

Difference between CSR and CSE:

Corporate Social Entrepreneurship (CSE) is a necessary and logical step to take after

realizing the CSR strategy, and to take joint economic and social value creation to the next

level, while CSR is about minimizing negative impact (a moral obligation or meeting legal

obligations) proactively pursuing social progress, hereby maximizing positive impact by

using challenges (example climate change) as a driver for innovation in the company

Creates new business opportunities and markets at the same time, focusing on

behavior of CSR,CSE challenges employees to be entrepreneurial and forward thinking by

creating a bridge between today`s core business and new meaningful products and services.

CHAPTER 5

E-COMMERCE

In 2017 and for the upcoming years e-commerce is expected to be in its trajectory and fastest

growing stage, as mobile is the future. Opportunities are aplenty if one wishes to become a

committed entrepreneur of e-commerce.

E-Commerce basically refers to buying and selling of goods and services, or the transmitting

of funds or data or even an electronic network, primarily internet. These business transactions

occur basically as Business-to-Business, Business-to-Consumer, and Consumer-to-Consumer

or Consumer-to-Business. E-Commerce is literally jumping in the waves of innovation.

The basic mistake done by the start-ups is that they rely on technology for simplicity and for

the sake of convenience and affordability. Shoppers prefer to shop their favourite goods

through online sites. People think that it`s more time saving and more economical than

physically visiting the stores for buying things. Creation of a fantabulous web-page is not

enough for succeeding in E-commerce. Strategy is often overlooked even as e-commerce

relies more on short term returns.

To nullify all these mistakes e-commerce entrepreneurs have taken steps like- allowing the

customers to become their brand ambassador, treating their e-commerce as if it is a thriving

offline business, finding the right software for the business, identify the challenges and

prioritizing them according to the requirement of the business and choosing a very creative

and innovative advertising partner.

E-commerce would grow even more rapidly if the e-commerce websites would reduce the

number of screens that the customer has to go through, make sure that the shipping is the

cheapest unless there`s a faster option for the same price, use as few fields as possible, use

auto fill where ever applicable, save billing and shipping applications where ever possible

and last but not the least provide several ways for customers to make the payments for their

order including common payment option such as pay-pal and pay tm. Cash on delivery is

already available as a payment option and this is definitely a welcome move.

CHAPTER 6

ETHICAL CHALLENGES IN ENTREPRENEURSHIP

All over the world there is a growing realization that ethics is important for any business and

to achieve the progress of any society. Ethics give rise to efficient economy. It is not the

government or law which will protect the society. But ethics alone can protect it. Ethics and

profits go together in the long run. An ethically responsible company is one which has

developed a culture of caring for people and environment, a culture which flows downwards

from the top managers and leaders.

According to the dictionary the term ethics has a variety of different meanings. One of the

meanings given to it is the principles of conduct governing an individual or a group. A

second and more important meaning of ethics according to the dictionary is this: Ethics is

the study of morality. Ethics is a discipline that examines one`s moral standards or the

moral standards of the society. It asks how these standards apply to our lives and whether

these standards are reasonable or unreasonable-that is, whether they are supported by good

reasons or poor ones.

Our concern here, however, is not with ethics in general, but with a particular field of ethics:

business ethics. Business ethics is a specialized study of moral right and wrong. It

concentrates on moral standards as they apply to business institutions, or organizations and

behavior.

Ethical issues arise out of everyday business decisions. An individual`s personal beliefs and

the moral atmosphere of the organization in which one works significantly after the behavior

one exhibits. Many philosophers, organizational relationships, and opportunity influence

behavior, as does the organizational environment.

Business ethics is the process of rationally evaluating our moral standards and applying them

to business situations. Many people have objected to the very idea of applying moral

standards to business activities. They have also looked at what can be said in favour of

bringing ethics into business.

The individuals are faced with questions about ethics in their relations with customers,

employees, and members of the larger society. Frequently, the ethically correct course of

action is clear, and people in business act as per that. Exceptions occur when there is

uncertainty about ethical obligations in particular situations or when considerations of ethics

come into conflict with the practical demands of business.

In deciding on an ethical course of action, we can rely to some extent on the rules of right

conduct that we employ in everyday life. Deception is wrong.

One of the features that distinguish business activity is an economic character. In the world of

business, we interact with each other not as family members, friends or neighbors but as

buyers and sellers, employers and employees and the like. Employment is also recognized as

a special relation with its own standard of right and wrong. Employers are generally entitled

to hire and promote whomever they wish and to layoff the workers without regard for the

consequences. The ethics of business is at least in part the ethics of economic relations-such

as those involving buyers, sellers, employers, employees.

A second distinguishing feature of business activity is that it takes place in larger, impersonal

organizations. An organization is a hierarchical system of functionally defined positions to

achieve some goals or set of goals. Consequently, the members of a business organization

take on new obligations to pursue the goals of the firm.

Violations of law usually begin when businesspeople stretch the limits of ethical standards, as

defined by company or industry codes of conduct, and then choose to engage in schemes that

knowingly or unknowingly violate the law. In recent years, new laws and regulations have

been passed to discourage such decisions and to foster programs designed to improve

business ethics and social responsibility.

When faced with the fact that different cultures have different moral standards, the managers

of some multinationals have adopted the theory of ethical relativism. Ethical relativism is the

theory that, because different societies have different ethical beliefs, there is no rational way

of determining whether an action is is morally right or wrong other than by asking whether

the people of this or that society believe it is morally right or wrong.

The statement that corporate organizations can be ethical or unethical raises a puzzling issue.

Can we really say that the acts of organizations are moral or immoral in the same sense that

the actions of human individuals are? Can we say that corporate organizations are morally

responsible for their acts in the same sense that human individuals are? Or must we say that it

makes no sense to apply moral terms to organizations as a whole but only to individuals who

make up the organization?

Two views have emerged in response to this problem. At one extreme is the view of those

who argue that, because the rules that tie organizations together allow us to say that

corporations act as individuals and have intended objectives for what they do, we can also

say that they are morally responsible for their actions and that their actions are moral or

immoral in exactly the same sense that a human being`s are. At the other extreme is the

view of philosophers who hold that it makes no sense to hold business organizations

morally responsible or to say that they have moral duties.

Which of these two extreme views is correct? Neither. The underlying difficulty with which

both views are trying to struggle in this: Although we say that corporate organizations exist

and act like individuals, they obviously are not human individuals. Yet our moral

categories are designed to deal primarily with individual humans who feel, and deliberate,

and who act on the basis of their own feelings, reasoning, and deliberations. Therefore, how

can we apply these moral categories to corporate organizations?

As this description of business ethics suggests, the issues that business ethics covers

encompass a wide variety of topics. To introduce some order into this variety, it helps if we

distinguish three

different kinds of issues that business ethics investigates: systematic, corporate, and

individual. Systematic issues in business ethics are ethical questions raised about the

economic, political, legal, and other social systems or institutions within which business

operates. Corporate issues in business ethics are ethical questions raised about a particular

organization. These include questions about the morality of the activities, policies, practices,

or organizational structure of an individual company taken as a whole. Finally, individual

issues in business ethics are ethical questions raised about a particular individual or particular

individuals within a company and their behaviors and decisions. These include questions

about the morality of the decisions, actions, or character of an individual.

ETHICAL ISSUES IN ENTREPRENEURSHIP ACROSS THE GLOBE

In the complex global business environment of the 21st century, companies of every size face

a multitude of ethical issues. Businesses have the responsibility to develop codes of conduct

and ethics that every member of the organization must abide by and put into action.

Fundamental ethical issues include concepts such and integrity and trust, but more complex

issues include accommodating diversity, decision-making, compliance and governance.

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that

examines ethical principles and moral or ethical problems that arise in a business

environment. It applies to all aspects of business conduct. It is relevant to the conduct of

individuals and entire

organizations. The range and quantity of business ethical issues reflects the interaction of

profit-maximizing behavior with non-economic concerns. Interest in business ethics

accelerated dramatically during the 1980s, both within major corporations and within

academia.

Fundamental Issues

The most fundamental or essential ethical issues that businesses must face are integrity and

trust. A basic understanding of integrity includes the idea of conducting your business affairs

with honesty and a commitment to treating every customer fairly. When customers perceive

that a company is exhibiting an unwavering commitment to ethical business practices, a high

level of trust can develop between the business and the people it seeks to serve. A

relationship of trust between you and your customers may be a key determinate to your

company's success.

Diversity Issues

The world is a rich and diverse place full of interesting cultures and people, who should be

treated with respect and from whom there is a great deal to learn. An ethical response to

diversity begins with recruiting a diverse workforce, enforces equal opportunity in all training

programs and is fulfilled when every employee is able to enjoy a respectful workplace

environment that values their contributions. Maximizing the value of each employee`s

contribution is a key element in your business's success.

Decision-Making Issues

According to Santa Clara University, the following framework for ethical decision-making is

a useful method for exploring ethical dilemmas and identifying ethical courses of action:

"recognizes an ethical issue, gets the facts, evaluates alternative actions, makes a decision and

tests it and reflects on the outcome." Ethical decision-making processes should center on

protecting employee and customer rights, making sure all business operations are fair and

just, protecting the common good and making sure individual values and beliefs of workers

are protected.

Compliance and Governance Issues

Businesses are expected to fully comply with environmental laws, federal and state safety

regulations, fiscal and monetary reporting statutes and all applicable civil rights laws.

Employee Behavior

From large corporations to small businesses, individuals involved in all types of business

often face ethical issues stemming from employee behavior. For example, whether an

employee can spend work time checking personal email accounts, how a manager deals with

claims of harassment and to what extent a manager can "groom" a certain employee for a

promotion are all examples of ethical issues regarding employee behavior.

There are legal consequences for some unethical employee behavior. For example, if a

supervisor discriminated against an employee based on her gender, religion or ethnicity when

making recommendations for a promotion legal action could be sought.

Employee Working Conditions

In addition to employee behavior, there are a number of ethical issues business people must

consider about employee working conditions. For example, employers must be aware of the

safety of their work environment and if they have compensated employees for all the time

they have worked. Just like there are legal consequences for some unethical issues regarding

employee behavior, there are also legal consequences for unethical working conditions. For

example, an employer who requires an employee to work without pay or who creates an

unsafe working environment can face legal action.

Supplier/Customer Relations

In addition employees and business owners must consider the ethical issues involved with

their relationships between suppliers and customers. Business owners in particular must

consider whether it is ethical to do business with suppliers who have unethical practices.

When dealing with customers or clients, business people must ensure that they use their

information correctly, do not falsely advertise a product or service, and do not intentionally

do sub-standard work.

Although there are ethical issues like discrimination that apply to all areas of business, each

business area has its own ethical concerns. For example, business people who act as

consultants

must ensure they are giving sound advice. In the area of business, some major ethical issues

result from hiring, firing and dealing with employees. For example, conflicts of interest may

cause ethical issues in businesses, especially if they are family run. When personal family

issues interfere with business decisions, this is a conflict of interest and an ethical concern.

CHAPTER 7

STORY OF FAILED ENTREPRENEURSHIP

Entrepreneurship has received a great fillip in India due to the growing influence of

technology in business. The success of e-commerce is mainly due to the support from

technology. The growth in social media networks, Internet and mobile technology (smart

phones) has greatly helped entrepreneurship in India. However, many of the startups are

unable to sustain. The reasons are given below:

Over ambition: Entrepreneurs are in a hurry to scale up the business after achieving

initial success. They do not exercise sufficient due diligence while entering new

markets.

Lack of adequate capital: Many startups are unable to mobilize capital from banks and

financial institutions. Not all startups are adept at acquiring funding from venture

capitalists or angel investors.

Failure to follow processes: Many startups prefer to work in an unstructured manner.

As they do not follow processes, they are unable to set clear performance

benchmarks. This hampers their progress.

Hire and fire policy: Many startups attract candidates to join them by promising high

salaries and perks. But when business prospects dim, the entrepreneurs do not flinch

in sacking their employees. Thus they treat their employees as a human resource and

not as human capital.

Under estimation of competition: Many entrepreneurial ventures do not have a clear

idea about the markets and they have a half-baked idea about the competition. Rather

than focusing on developing their core competence, they wish to spread their wings

far too wide.

Improper leveraging: Entrepreneurs believe in taking more and more debt and at some

point the business suffers from a huge interest burden.

Absence of ethical standards: History is replete with examples of entrepreneurial

ventures which collapsed like nine pins due to their failure to adhere to ethical

standards and moral code of conduct.

Faulty selection and recruitment practices: Startups do not have a professional

approach in managing talent. This creates problems at a later stage.

Refusal of the promoter- entrepreneur to delegate: Many promoters are insecure about

the future. This leads to insufficient delegation due to which attrition of highly

talented people increases.

10)

Lack of intent to clear debts and pay taxes to government: Entrepreneurs are eager to

avail bank credit but they don`t feel accountable to return the loan. Some

entrepreneurs mix up their personal expenses with business expenses. Some startups

defer paying taxes to the government.

Some entrepreneurs do not have a clear cut business plan and no clear business objective.

Startups that fail to sustain often do not have any clear cut business plan, suffer from

ambiguous goals and are greedy to earn money in the quickest time possible. Some startups

behave like copy cats and under estimate the power of competition in the market. These

startups do not have a clear idea of what the customer wants. So when they are unable to

grow their market share, they take impulsive decisions to shut shop or sell off the business.

They either make exaggerated marketing claims or suffer from inadequate marketing

expertise.

CHAPTER 8

FLIPKART: A SUCCESS STORY OF INDIAN ENTREPRENEURSHIP

Globally, an entrepreneur is one who is willing to bear the risk of a new venture, an innovator

who markets the innovations, develops new goods or processes according to market demands.

Indian Entrepreneurs possess the verve and chutzpah to spread the spirit of entrepreneurship

amongst Indian youth.

Before 1991, Indian business success was a function of ambition, licenses, government

contacts, and an understanding of the bureaucratic system. Decisions were based on

connections, rather than the market or competition. Business goals reflected a continuation of

the "Swadesh movement" which promoted import substitution to attain economic freedom

from the West.

Pre-1991 policies were inward looking and geared towards the attainment of self-reliance.

During this era, entrepreneurship was subdued, capital was limited and India had very few

success stories. As well, society was risk averse and the individual looked primarily for

employment stability. But as the time passes, it brings subtle changes into the mindset of

people and their ability to think.

If we see the present era of Entrepreneurship the first Company which comes in every Indians

Mind is Flipkart as the concept was totally new to the market and most of the people are

unaware of the term Online. But Sachin Bansal and Binny Bansal did not see that as risk

but took that as an opportunity and we can see that today they stand tall.

Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of

the Indian Institute of Technology Delhi. They worked for Amazon.com, and left to create

their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd.

The first product they sold was the book "Leaving Microsoft to Change the World" .Flipkart

now employs more than 33000 people. Flipkart allows payment methods such as cash on

delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on

delivery. After failure of its 2014 Big Billion Sale, Flipkart recently completed the second

edition of Big Billion Sale held between October 13 and 17 where it is reported that they saw

a business turnover of 300 million in gross merchandise volume.

When Flipkart started, the country was already witnessing quite a bit of interest in e-

commerce in the form of booking of online tickets etc. Their (Bansal Brothers) first thought

was to start a comparison shopping website that would cater to the growing Indian e-

commerce market. However when they further probed the idea, their research revealed that

companies in India had still not succeeded in creating a comprehensive e-commerce

ecosystem that ensures convenience and security from the customer`s perspective. The entire

category was plagued with issues like delayed deliveries; wrong product deliveries, improper

product description etc. Sensing an opportunity, they decided to start an e-commerce

company that would focus on providing a great shopping experience to their customers.

From the beginning, their intention was to make Flipkart the largest e-commerce portal in the

country. They started by retailing books and after becoming a market leader in this segment

they introduced other product categories such as mobiles, movies, music, games, cameras and

computers. Their aim is to achieve similar success in these categories while maintaining their

USP of a superior customer experience.

The journey has been an extremely interesting and rewarding one. They started off as a

modest venture and in just under four years have gone on to become one of India`s leading

online shopping destinations. Their focus has always been on keeping their customers

satisfied by ensuring convenience and a hassle free shopping experience at every customer

engagement point

Not to mention the great discounts and product variety that they have to offer.

The initial challenges they faced were teething troubles common to most start-ups. It was

tough to generate supplier confidence in them and the inability to keep a large enough

inventory posed an issue. Slowly however, they succeeded in building up both customer and

supplier confidence. Traffic to the site started picking up through word-of-mouth publicity

and from then on there has been no looking back. Today, the challenges are different. They

have built their business on the premise of providing a great shopping experience to the

customer and their biggest challenge is to maintain the same quality of service while they

rapidly scale up the size of their operations. The other challenge is to think big; in terms of

scales that are yet to be employed in online retail businesses (travel being an exception) in

India.

They started Flipkart on a modest budget. The initial capital was sourced from our personal

money and they did not have a huge marketing budget. Hence they relied heavily on word-of-

mouth marketing to promote their site. Moreover, when it comes to mediums like e-

commerce, word-of-mouth marketing works extremely well as customers rely on the

experience and feedback of their friends and peers before they try out a site.

Sachin Bansal and Binny Bansal of Flipkart have done many things innovative to make it a

great success story:

Some of them are as follows

Cash on Delivery

Same Day delivery

Exceptional packaging

Standardization of Courier service

Building consumer trust in online buying

Leveraging Social media Like Facebook and twitter to create hype around new launches

Created a platform for Users to share product reviews (Flipkart consumer reviews very

informative)

Flipkart Coupons & Contests for making new products successful

Mobile Commerce and beautifully designed Mobile App

10)

Exclusive tie ups

Flipkart also acquired few companies like Myntra.com, LetsBuy.com etc., to better their

presence in the market. With the entry of Amazon.com in India, the competition between the

companies has seen many takeovers. Flip kart's journey from a small book e-retailer to

India`s largest e-commerce platform inspires a generation of start-ups. In a country where

stereotypes are common, Flipkart managed to break the norm and change the ecommerce

industry in India

forever. Flip kart's story proves that if you have a great idea, and you are a doer and not a

thinker, success is not far off.

By putting the needs of their customer first and listening to what they have to say, companies

can succeed in building up a loyal customer base. Continuous innovation is the backbone for

any business.

CHAPTER 9

INNOVATION AND ENTREPRENURSHIP

Innovation is an important attribute of business advancement. It is an involvement of great

ideas manifested in value addition. Whether novelty is dealing with a huge idea or a few and

whether it is something to do with group work or a single individual, it plays a crucial role in

business. The paper discusses innovations and entrepreneurship, arguing that the latter is

more important because it uses the former to create value.

It is important to look at a case study in order to understand the situation. The first roll film

was launched way back in 1884 by George Eastman. It was part of an economic trajectory

patented by the year 1900, and George had created a big market of photography using a

Brownie camera. The Brownie camera had come up to a successful point extending to the

entire region of New York through Rochester and then worldwide. Unfortunately, Kodak had

experienced a tragic end from the growth of other competitive products and innovations, and

this is a critical lesson learnt about innovation. No matter what is created in the market in

terms of growth as a result of innovativeness, any reliance on existing ideas will shut down in

the long run. Kodak failed to learn fast enough, and it eventually led to the bankruptcy of the

entire company.

Innovation can sometimes go hand in hand with entrepreneurship in a number of ways. The

truth here lies in the situations where innovations are born out of the entrepreneurial spirit of

an individual. While innovations bring new ideas, entrepreneurship creates the value. Both

innovations and entrepreneurship are crucial, and none can exist without the other. However,

without entrepreneurship, innovations cannot create a value for many people. For this reason,

entrepreneurship is more important than innovations in ensuring success of a business.

One of the main conditions for the formation of competitive, strategic perspectives of the

enterprise is its innovative activity. Implementing innovation is the only way to increase the

competitiveness of goods produced and support high rates of growth and profit. However,

experts predict that we should not expect a significant progress in the development of

innovative

sphere in the near future. The main reason is a lack of practical experience of innovation in

market conditions. The roots of this problem go back in time. It is associated with the

orientation of research institutions on public. Many problems took place due to lack of well-

established infrastructure and support horizontal linkages between enterprises, academic and

financial institutions.

What is innovation? This is, first of all, a successful commercial use and implementation of

new ideas, knowledge and technology, and secondly, a process of converting new ideas into

those that have direct socio-economic impact. Innovative process extends from the inception

of the idea to its commercial release, covering the full range of relations: production,

exchange, and consumption.

It integrates science, technology, education, economics, entrepreneurship, management, due

to the nature and quality of their interactions and relations. Innovation is the result of a

collective effort, where success depends not only on the field of science and technology, but

on a much broader range of industries and social environment.

The experience of successfully developing companies shows that today survive those, who

can respond quickly accommodate to changes and is continually innovating. Worldwide

innovation today is not a whim, but a necessity of survival, maintaining competitiveness and

further development.

The basic contradiction in the field of innovation is, on the one hand, a high innovation

potential, and on the other one, the economic structure and economic mechanisms, which do

not allow this potential to be perceived. Innovative problem is not only a problem of money

and institutions, but also a problem of human capital. People stand for innovation.

In Western countries, entrepreneurship is seen as a special type of management, based on the

search for new possibilities of goods production and services through innovation and the

ability to attract resources from a variety of sources. The manufacturing process involves the

creation of new goods, new methods of production, development of new markets, and

implementation of industry reorganization.

The main motivation for the development of innovation is the desire and commitment to the

management of strategic activities in general and, in particular, to innovation policy. In other

words, the company should be a leader and innovator who are willing to allocate resources

and develop new products. Another condition for innovation is an effective system of

marketing and sales.

THE ELEMENTS OF INNOVATION

Innovation is the successful development of competitive advantage and as such, it is the key

to entrepreneurship. The entrepreneurs are the dreamers, who take hands on responsibility

for creating innovation. It is the presence of innovation that distinguishes the entrepreneur

from others. Innovation, must therefore, increase competitiveness through efforts aimed at the

rejuvenation, renewal, and redefinition of organizations, their markets or industries, if

businesses have to be entrepreneurial. Fiona Fitzpatrick identified the following elements of

innovation:

Challenge: What we are trying to change or accomplish-the pull

Customer focus: Creating value for your customers the Push

Creativity: Generating and sharing the idea(s) - the brain

Communication: The flow of information and ideas the life blood

Collaboration: People coming together to work together on the idea(s) - the heart.

Completion: Implementing the new idea-the muscle.

Contemplation; Learning and sharing lessons lead to higher competency-the ladder

Culture: The playing field of innovation includes: Leadership (sees the possibilities and

positions the team for action-the role model) People (diverse groups of radically

empowered people innovate the source of innovation) Basic values (trust and respect

define and distinguish an innovative organization-the backbone). Innovation values

(certain values stoke the fires that make the impossible possible-the Spark).

9. Context: Innovation is shaped by interactions with the world.

FORMS OF INNOVATION

In a start-up, the entrepreneur is regarded as the key actors in developing a business idea,

marshalling resources, and creating an enterprise to bring a new product or service to the

market. In a competitive business environment, the entrepreneur and the enterprise should

continue to seek lout now opportunities and make the necessary arrangement to convert

them into new goods and services. Innovation should, therefore, impregnate the entire

enterprise for the creation and invention of competitive edge and relevancy in the market

place. Innovation can take several forms:

i.Innovation in processes, including changes and improvement to methods. These contribute

to increases in productivity that lower cost and helps to increase demand.

ii.

Innovation in products or services. While progressive Innovation is predominant, radical

innovation opens up new markets. These lead to increases in effective demand which

encourages increases in investment and employment.

CHALLENGE FOR INNOVATION

The place of innovation in commercial success is the development or adoption of new

concepts or idea that leads to any form of increased organizational or social benefit.

Innovation is vitally concerned with novel approaches, new ideas, and originality, and it the

means by which ideas are exploited for competitive advantage. Creative ideas are not

enough for your business to survive. You need a process organization and culture that will

help you maximize your creative assets. This is innovation capability that helps your pull

together the best thinking within your business, enabling you to connect the organization

dots. Shapiro argues that perpetual and pervasive innovation is the key to long term

sustainable success in the relentless competition for customers. To survive any competition,

you must rapidly and repeatedly re-invent yourself. The road map to reinvention starts by

applying the six R`s.

Rethink your underlying assumptions.

Re-sequence when work takes place.

Relocate where work is done to cut down on handoffs and delays.

Reduce the frequency of carrying our specific activities.

Reassign who does the work by exploring if someone else can achieve the same result

more effectively and efficiently.

Retool the technology that supports getting the work done. Could new software and

automated equipment transform our ways of working?

CHAPTER 10

CREATIVITY AND INNOVATION IN AN ENTREPRENEURIAL ORGANIZATION

Growth and development cannot be sustained without additional innovations (usually in the

product or services or in its marketing) with additional innovations, firms become

glamorous Introducing new products is usually seen as part of the process of innovation,

which is itself seen as the engine driving continued growth and development.

The winning performance of the entrepreneur and the organization focuses on:-

Competing on quality not prices:

Domination of a market niche;

Competing in an area of strength

Having tight financial and operating controls:

Porter (1985) argues that, while successful businesses will each employ their own strategy,

they achieve completive advantage through acts of innovation. Learning and problem-solving

are common activities in many working environments today, but some people believe that

true entrepreneurship occurs when individuals ignore the established ways of thinking and

acting and seek novel ideas and solutions that can meet customers` needs.

INNOVATION AND CREATIVITY

An innovation starts with creative ideas. Innovation is defined as the successful

implementation of creative ideas. Creativity by individuals and teams is a starting point for

innovation. It is a function of knowledge, curiosity, imagination and evaluation. Although

having a strong knowledge and level of curiosity are precursors for being creative but these

bits and pieces must be shaken up and iterated in ways. Then only the embryonic ideas must

be evaluated and developed into usable ideas. No doubt it is highly systematic.

So creativity and innovation differ in a way that, creativity refers to generating new and novel

ideas while as innovation refers to the application of an idea and generally is a collaborative

enterprise. In a nutshell, innovation is applied creativity.

How to increase your creativity and innovation:

By observing and making use of all the senses. You need to sharpen the blade and

take everything in.

Since innovation is based on knowledge, you need to continually expand your

knowledge base.

Perceive the things carefully.

Practice guided imagery.

Incubate ideas by taking a break from them

Seek out new experiences to broaden your experience portfolio.

Redefine the problems completely.

Come up with ideas at the beginning of the innovation process. Take breaks in

between.

CHAPTER 11

SOCIAL MEDIA: THE NEW MARKETING FRONTIER IN E-COMMERCE

Over the last 20 years, there have been advances in marketing media outlets and strategies.

One of the more recent forms is referred to as Social Media Marketing. This method can be

defined in a number of ways, but one of the best descriptions came from a marketing

professor at The University of Cincinnati, Ric Sweeny.

Social media marketing is the ability to use nontraditional communication and connection to

build a brand. Social media is one of today`s biggest forms of communication and it has not

only changed the way people interact everyday but also the way companies communicate.

Today's marketers have adapted the various forms of social media to perform a business

purpose.

As a result the adaptation of social media has taken been a focus of innovation and ideas for

the marketing world. Contemporary forms of social media are found in two very popular

websites, Face book and Twitter. Together, these sites are defining the platform for social

media in the digital world, and continue to adapt and evolve with advances in technology and

consumer preferences.

The big debate over social media marketing is, can it be relied on as the new marketing

standard compared to traditional marketing approaches. Others challenge that this outlet is

just

a complement to a strategy that uses multiple marketing methods. Regardless, social media

marketing is an effective form of marketing that needs to be embraced, especially if the target

audience includes people who are younger than age 40.

Marketing media styles have changed over the years and this newest form did not occur over

night; it has growing and developing as this media alternative has become increasingly

popular. This paper will review various approaches to social media marketing, some related

background, and how the process has changed over time. Adapting social media as a platform

for marketing is very different than the more traditional forms of marketing.

As mentioned before the two modern day outlets, Facebook and Twitter have become brand

names that at least for now, have become the standard in social networking, for personal as

well as business contacts. What better avenue for business than to gauge consumer

preferences and follow trends that will enhance the appeal of a particular product or service.

If you consider the definition of marketing from its own national organization, the American

Marketing Association, it is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers, clients,

partners, and society at large.

Likewise, the engine that propels marketing efforts is the field known as Marketing Research.

This is defined by the same organization as the function that links the consumer, customer,

and public to the marketer through information used to identify and define marketing

opportunities and problems; generate, refine, and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a process.

Marketing research specifies the information required to address these issues, designs the

method for collecting information, manages and implements the data collection process,

analyzes the results, and communicates the findings and their implications. Considering

these definitions, social exchanges like Facebook and Twitter become the ideal lab where

consumer opinion, ideas and preferences are freely exchanged and available to be cultivated

for business and commerce.

Before we can get into social media marketing I would like to review some of the history of

marketing. Throughout time, most consumer related products has been marketed to some

extent. This process certainly expanded when forms of print media, like the newspaper, began

to be available to everyone. In the most basic form of marketing this included product

advertisements. With the expansion of spoke media, such as radio, the use of advertising

greatly expanded.

The use of marketing techniques and refinement of target audiences began to expand with the

television. Even with these most common forms of influencing consumer attitudes and

behaviors, business has been limited in its ability to gauge consumer response other than

sales activity. With the ability to monitor a free flow of opinions that could affect the appeal

of particular goods or services, social networking provides a never-before forum for

improving techniques and resources to enhance sales and product development.

Traditional forms of marketing such as print ads, radio and TV are currently the primary

sources for marketing efforts simply because that is where the majority of consumers go for

information and entertainment. Certainly the growth of internet usage has caused many

consumers to shift that reliance to a more immediate source of targeted information. There is

little question that marketing plays a significant role in internet browsing.

In addition to the internet, many consumers are preferring to seek to be entertained by

podcasts, recorded music and streaming audio and video. Despite the significant expansion of

e-products, marketing efforts will continue to depend on the traditional methods,

especially for certain audiences that may not feel comfortable with or have the resources to

take advantage of electronic alternatives. For example without question, the popularity of

sporting events will continue to fuel the marketing efforts using traditional methods. Just like

the marketing efforts on television, sports-related marketers can target products that may

appeal to a particular population segment.

Even though print, radio, and TV marketing campaigns, will attempt to find the engaged

consumer, only 18% of TV ad campaigns are effective today, with 90% of people who skip

the advertisement .This means that one of the biggest markets in marketing and advertising

is often overlooked. With that in mind, it is not hard to see why marketing efforts are eager

to focus resources on new and more effective forms of advertising and marketing products

to consumers.

This new approach to reaching customers continues to grow every day, especially since the

use of the computer and the internet have become the preferred method for people to gain

and share information and ideas. Originally in the early days of the home PC, the only

marketing that was present on the internet was the banner ad and the ability to interact

with people through messages boards and chat rooms. With the expansion of the internet,

people began to use the computers for many different forms of entertainment. As a result,

consumer marketing also grew in this virtual world, taking advantage of blogs and popular

entertainment websites such as YouTube. To demonstrate the impact there are 65,000 new

YouTube videos per day and 200,000,000 blogs on the web today, with 57% of the online

community joining a social network site .Unlike traditional media, the online audience can

rapidly interact with a global audience.

Social media marketing is effective for different sizes of companies. Larger companies, use

this medium to refine product effectiveness and enhance sales efforts. Whereas small

companies use these tools to establish name recognition and brand loyalty. Both large and

small companies benefit from the ability to talk to the everyday customer, and share

upcoming improvement, new products and ideas to keep them interested and informed. It is a

great method for all companies to create excitement and urgency around products.

As with internet message boards, the more that companies are able to get people talking

about your products, the more likely those consumers will continue to be customers. I heard

a quote that it doesn't matter if people are talking about your product in a good or bad

way; you`re getting your product out there anyway.

As long as the publicity is out there it is likely positive. In a copy of Communication World

last year; Angelo Fernando talked about this issue of getting people talking about your

brand. He shared a story about a BMW customer chat room (http://bmwboard.com). People

would discuss negative items such as water pump leaks and issues unflattering to the brand.

But did they stop the interaction?

One of the most exciting uses of social networking in business is building excitement and

anticipation around a new product or service. The more that companies can create a buzz

about the features and advantages of a new product, the more likely they will enhance the

sales when the product is released. Common examples of this include new products such as

cell phones, and video games. The excitement started online as the company began to release

or leak product details to the online community long before the product was released. It

doesn't take long to get people talking and social networking is a proven outlet to create this

interest.

Of course with anything in life, there is always a downside. When marketers create

interest in products or services based on promises or untested information that is leaked to

an online community, they must make sure their product will perform as it is supposed to.

If the product is flawed or simply doesn`t work, the word is spread pretty quickly. In the

past, a manufacturer had some time to evaluate product roll-out and maybe even time to

make improvements before consumers were aware of the problems. With today`s

instant feedback, consumers write product evaluations online, causing flawed products

to be doomed in a short period of time.

Likewise, when consumers believed that a company has intestinally misrepresented a

product, it will be known quickly though out the work by using these social networking

forums. In fact, if the consumer feels ripped-off, the great amount of negative writing

with blogs and simple consumer interaction through the online networks, the company

may never recover.

Another example is in the Tech community, products like software, computers and

electronics are put to the test before something even hits the store. This means that your

product is up for the mercy of the reviews. If a product does well it will be promoted

throughout the social media sites. Likewise if something gets a bad review, the sales of

the product will suffer.

Social media marketing in today's world is new and upcoming for marketing and it offers a

great deal of value in today`s society. According to Marta Kagan within the next year,

Generation Y will outnumber the baby boomers generation. This generation is the

generation that will have grown up on computers over their entire life. This generation also

is also holds a large percentage of accounts on social media sites like Facebook and

Twitter. In addition to this large presence of people online, Generation Y has influence in

what products are bought. According to an article in USA today At 82 million people,

Gen Y is the most influential generation for retailers because it is bigger than the baby

boomers and its members have spending power and strong opinions at an earlier age

(O'Donnell). This demonstrates that this next generation is essential to marketers and

branding agents because they represent spending patterns, buying influence, and revenue

growth for companies. Companies that don`t capitalize of the preference and necessity to

promote educate and transact business using online resources such as social networking,

may find themselves irrelevant with the new consumer.

The use of Facebook, Twitter and online blogs has proven to provide a large influence on

buyers. One of the reasons is simply that people in these online communities tend to believe

those in their community before an advertiser .Most people today will likely look at

websites/ blogs and ask friends before going to a store or purchasing a product.

Today's consumers are more educated about the products they buy. With today's technology

almost everyone today has the ability to skip advertisements while watching recorded TV.

Business as usual for the TV marketer is going to continue to become more difficult. With

the expansion of DVR technology, the desired practice of watching a program and skipping

ads brings up a new problem of how we reach these consumers likewise this is also the case

with recorded radio and podcasts that allow consumers to listen to desired programming

and entertainment on-demand and without the advertisements. Consumers are tired of

being bombarded with advertisements and the marketer needs to be creative and engage the

consumer with methods that they are comfortable with and have interest when they are

motivated to buy.

Even though social media marketing may seem essential for the future, we as a society still

have some gaps with this dependence on technology. As marketing professional focus on

the advantages of social network marketing, there is still limited to segments of society that

do not participate in these new forms of interaction.

Regardless of income, some people choose not to take advantage of social media marketing

and just have little interest in taking advantage of these public resources; until we see people

using computers and sites like Facebook and twitter within everyday interactions, traditional

methods of marketing will continue to have a foothold in our society. Make no mistake, just

as the growth of these communities have exploded in just a few years, technology will

continue to pay an ever increasing role in all parts of society. Certainly the next generation

of social networking platforms and websites will continue to further highlight the essential

role of this marketing tool in business.

CHAPTER 12

THE DEBACLE OF VISHAL RETAIL

Cash is the king in retail business.

Ramchandra Aggarwal is the chairman, managing director of V2 retail ltd .He is in far better

footing now after his big mistakes, at Vishal retail, with V2 retail. He has gone through the

Rags to Riches `phase in life.

In 1986, when Aggarwal was an assistant manager in a rolling shuttering company, he

noticed the rising demand for readymade garments. So, he started one in the year 1986, at

Kolkata Lal Bazaar, which comprised of a 50 sqft store which would not accommodate all of

his dreams then he moved to Delhi set up Vishal retail in 2011.

For instant expansion, Aggarwal admits taking rash decisions like opening too many stores

trusting too many people .When Aggarwal wanted to dilute equity there were no buyers and

soon everything started to fall apart.

An initial public offer in 2007 brought in Rs 110cr,but the next year, downtown hit Vishal

retail, the country`s first publicity traded retail firm went bust. It incurred a debt of Rs 750

crores falling sales rising cost; Aggarwal sold the business to Air plaza retail holidays ,a

Shriram group company private equity firm TPG ,wholesale for Rps70cr,in march

2011.Vishal Retail Ltd. was totally debt ridden.

Aggarwal recovered his business in the market with his second innings within few months

with V2 using modest calculative modes. Focusing on mass markets, he opened small

outlets in places like Bihar, Delhi Odisha cowering 15 stores that have least retail

exposure, but high demand .Now V2 retail stores occupy 10,000-15,000 sqft compared with

Vishal`s 40,000 sqft.

A key strategy he follows now is to go slow open smaller shops with only apparels. Food

grocery are totally out as margins are very thin. He works with cash in hand, than taking

short term debts monitors cash flows closely after burning his fingers in debt. They buy

directly from vendors now, instead of using middlemen, as was the practice a few years ago.

As their credibility was hit during the Vishal crisis bankers were not showing up for funding.

But slowly they are clutching up by improving the bankers confidence. Aggarwal is also

putting information technology, systems processes in place, which he sees as crucial to

efficiency transparency.

First priority is for management bandwidth then he gives importance for expansion of his

business. Hence it is understood that no one is born with a golden tooth; make a better life by

adopting accepting risks in life. Learn from failures .As Aggarwal now follows the mantra

from Bhagavad Gita - Stay detached emotionally but work with passion.

There are two kinds of companies in retail, one that learn implement and one that never

learns.

To sum up:

1 .Entrepreneurs often suffer because of over-ambition their quality of trusting people so

easily.

Entrepreneurs can be resilient if they learn from failures.

Perseverance is the goal to success.

CHAPTER 13

THEORIES OF ENTREPRENEURSHIP

Entrepreneurship is an evolved thing. With the advancement of science and technology it has

undergone advancement of science and technology it has undergone metamorphosis change

and emerged as a critical input for socio-economic development. Various writers have

developed various theories on entrepreneurship and developed various theories on

entrepreneurship and popularized the concept among the common people. Theories

propounded by them can be categorized as under

Sociological theories

Economic theories

Cultural theories

Psychological theories

Sociological Theories

The following theories explain how sociological factors accelerate the growth of

entrepreneurs:

1-Theory of religious beliefs

2- Theory of social change

Theory of religious beliefs

Max Weber has propounded the theory of religious belief. According to him, entrepreneurism

is a function of religious beliefs and impact of religion shapes the entrepreneurial culture. He

emphasized that entrepreneurial energies are exogenous supplied by means of religious

beliefs.

Theory of Social Change

Everett E. Hagen, in his theory of social change propounded how a traditional society

becomes one in which continuing technical progress takes place. The theory exhorts the

following feature

which presumes the entrepreneur`s creativity as the key element of social transformation and

economic growth.

Entrepreneurship and economic development are interdependent. Economic development

takes place when a country real rational income increases overall period of time wherein the

role of entrepreneurs is an integral part.

Schumpeter's theory of innovation

Schumpeter`s theory of entrepreneurship is a pioneering work of economic development.

Development in his senses implies that carrying out of new combination of entrepreneurship

is basically a creative activity. According to Schumpeter an entrepreneur is one who

perceives the opportunities to innovate, i.e. to carry out new combinations or enterprise.

Schumpeter makes a distinction between innovation and invention. Invention means creation

of new things and innovation means applicable of new things onto practical use. Schumpeter

has given emphasis on the role of entrepreneurial functions in economic development in his

views, development means basic transformation of the economy that is brought about by

entrepreneurial functions.

The motives of creating things and applying these things into practice inspire the

entrepreneur to undertake innovation.

CULTURAL THEORIES

Advocates of cultural theories point out that entrepreneurship is the product of culture.

Entrepreneurial talents come from cultural values and cultural system embedded into the

cultural environment.

Hoselitz's Theory

Hoselitz explains that the supply of entrepreneurship is governed by cultural factors, and

culturally minority groups are the spark-plugs of entrepreneurial and economic development.

In many countries, entrepreneurs have emerged from a particular socio-economic class. He

emphasized the role of culturally marginally groups like Jews and the Greeks in medieval

Europe, the Chinese in South Africa and Indian in east Africa in promoting economic

development. Psychological theory centres on the psychological characteristic of the

individual in a society. Psychological characteristics affect the supply of entrepreneurs in the

society.

CHAPTER 14

CHALLENGES FACED BY WOMEN ENTREPRENEURS IN INDIA

Women entrepreneurs may be defined as a Woman or a group of women who initiate,

organize and run a business enterprise. Government of India has defined women

entrepreneurs based on women participation in equity and employment of a business

enterprise. Accordingly, a woman run an enterprise is defined as an enterprise owned and

controlled by a women having a minimum financial interest of 51% of the capital and giving

at least 51%of the employment generated in the enterprise to women.

Women entrepreneur constitute 10 % of the number of entrepreneur in the country. This has

been a significant growth in self-employment of women with women now starting new

ventures at three times the rate of men. They constitute 50% of the population of our country

with a lower literacy rate than men.

This statistical fact indicates that for the economic growth of the nation, women should not

be encouraged to make their share of economic contribution towards the country. One way of

achieving is by making women come out and become entrepreneurs. In the traditional

society, they were confined to the four walls, playing household roles, but in the modern

society, they are coming out to participate in all sorts of activities.

Normally, women entrepreneurship is found in the extension of their kitchen activities,

mainly in preparing commercially the 3Ps namely, Pickles, Papads and Spice powders.

Few of them venture into services industry relating to hospitality, catering, educational

services, consultation or public relations, beauty clinics, etc.

Women enter entrepreneurship due to economic factors which pushed them to be on their

own and urge them to do something independently. Women prefer to work from their own

work residence, difficulty in getting suitable jobs and desire for social recognition motivate

them towards self-employment.

We see a lot of women professionals in engineering, medicine, law etc. They are also setting

up hospitals, training centres, etc. An enterprise owned and controlled by a women having

a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the

employment generated by the enterprise to women.

A woman entrepreneur can be defined as a confident, innovative and creative woman capable

of achieving self-economic independence individually or in collaboration, generates

employment opportunities for others through initiating, establishing and running the

enterprise by keeping pace with her personal, family and social life.

The biggest improvements had been an increase in the percentage of women entrepreneurs

who were using new technology and introducing innovative products. In addition, there has

been an increase in the percentage of women entrepreneurs who are 'growth oriented', that is

those who plan to add more than 10 new employees and achieve 50% growth in five years.

In the initial business stages, most women are forced to rely on personal funding, including

for meeting working capital requirements. A report released by International Finance

Corporation in 2014 said there was a finance gap of Rs 6.37 lakh crore (Rs 6.37 trillion)

when it came to meeting requirements of women entrepreneurs in the MSME (micro, small

and medium enterprise) sector. Lack of collateral and a misogynist mind-set are the main

stumbling blocks women face in accessing loans.

At present, it has 16 MNC members including Accenture, Cisco, Dell, IBM, Intel, Microsoft,

Marriott, and Hilton Hotels. Women entrepreneurs from the tech and non-tech sector -

including a premium chocolate venture -- have benefitted by obtaining orders from these

MNCs.

When it comes to catching up with their male counterparts, women have made great strides in

the business world over the years. But there's no doubt about it: Today's female entrepreneurs

are still up against a few major obstacles.

Patriarchal Society: Entrepreneurship has been traditionally seen a male preserve and

idea of women taking up entrepreneurial activities considered as a distant dream. Any

deviation from the norm is frowned and if possible, immediately curbed. Women also have to

face role conflict as soon as they initiate any entrepreneurial activity. It is an uphill task for

women to face such conflicts and cope with the twin role.

Absence of Entrepreneurial Aptitude: Many women take the training by attending the

Entrepreneurship Development Programmes without entrepreneurial bent of mind. As per a

study, involvement of women in small scale sector as owners stands at mere 7 percent.

Women who are imparted training by various institutes must be verified on account of

aptitude through the tests, interviews etc.

Quality of EDPs: All women entrepreneurs are given the same training through

EDPs. Second-generation women entrepreneurs don`t need such training as they already

have the previous exposure to business.

Marketing Problems: Women entrepreneurs continuously face the problems in

marketing their products. It is one of the core problems as this area is mainly dominated by

males and even women with adequate experience fail to make a dent.

For marketing the products women entrepreneurs have to be at the mercy of middlemen who

pocket the chunk of profit. Although the middlemen exploit the women entrepreneurs, the

elimination of middlemen is difficult, because it involves a lot of running about. Women

entrepreneurs also find it difficult to capture the market and make their products popular.

Financial Problems: Obtaining the support of bankers, managing the working

capital, lack of credit resources are the problems which still remain in the males domain.

Women are yet to make significant mark in quantitative terms. Marketing and financial

problems are such obstacles where even training doesn`t significantly help the women. Some

problems are structural in nature and beyond the control of entrepreneurs.

Family Conflicts: Women also face the conflict of performing of home role as they

are not available to spend enough time with their families. They spend long hours in business

and as a result, they find it difficult to meet the demands of their family members and society

as well. Their inability to attend to domestic work, time for education of children, personal

hobbies, and entertainment adds to their conflicts.

Credit Facilities: Though women constitute about 50 per cent of population, the

percentage of small scale enterprise where women own 51 percent of share capital is less than

5 percent. Women are often denied credit by bankers on the ground of lack of collateral

security. Therefore, women`s access to risk capital is limited.

The complicated procedure of bank loans, the inordinate delay in obtaining the loans and

running about involved do deter many women from venturing out. At the same time, a good

deal of self-employment programme has been promoted by the govt. and commercial banks.

Shortage of raw-materials: Women entrepreneurs encounter the problems of

shortage of raw-materials. The failure of many women co-operations in 1971 such as those

engaged in basket making were mainly because of the inadequate availability of forest-based

raw materials.

Heavy Competition: Many of the women enterprises have imperfect organizational

set up. But they have to face severe competition from organized industries.

10.

High cost of production: High cost of production undermines the efficiency and

stands in the way of development and expansion of women`s enterprises, government

assistance in the form of grant and subsidies to some extent enables them to tide over the

difficult situations.

However, in the long run, it would be necessary to increase efficiency and expand productive

capacity and thereby reduce cost to make their ultimate survival possible, other than these,

women entrepreneurs so face the problems of labour, human resources, infrastructure, legal

formalities, overload of work, lack of family support, mistrust etc.

CONCLUSION

India is a male dominated society and women are assumed to be economically as well as

socially dependent on male members. Women entrepreneurs faced lots of problems like lack

of education, social barriers, legal formalities, high cost of production, male dominated

society, limited managerial ability, lack of self-confidence etc.

Government takes various steps for the upliftment of women entrepreneurs in 7th five-year

plan, 8th five-year plan and in 9th five-year plan. Women have the potential and

determination to setup, uphold and supervise their own enterprise in a very systematic

manner, appropriate support and encouragement from the society, family, government can

make these women entrepreneur a part of mainstream of national economy and they can

contribute to the economy progress of India.

CHAPTER 15

WOMEN ENTREPRENEURS FORGING AHEAD WITH STARTUPS

Gone are the days when you would find women confined to the house and hearth. Today,

women are at the forefront in all fields, be it technology or business, competing with men and

in many areas forging ahead of them. The face of entrepreneurship is changing as well. We

have, not only the seasoned entrepreneurs such KiranMajumdar of Biocon and our television

queen, Ekta Kapoor of Balaji Telefilms but several exceptional and talented women

entrepreneurs emerging in the new startup phenomena in India.

India is at the cusp of entrepreneurial transformation with Bangalore being the hub of startup

culture. With the entrepreneurial spirit growing among Indians, women are not far behind.

What was once a male dominated world can today boast of more than 80 startups by women

from different areas of expertise? Though, the women entrepreneurial spirit in India is still in

a budding stage, here are a few stellar examples of women who have taken the plunge and are

leading from the front:

Anita Ahuja's Conserve India turned discarded plastic bags into a valuable resource. She

combines principles from enterprise and social service in a venture that recycles plastic waste

and provides employment for rag pickers. The social venture has created employment for

scores of underprivileged people and also become a solution for solving the problem of

plastic waste. Today, using a proprietary process, Conserve India transforms discarded plastic

bags into a variety of fashionable products that are sold in high-end retail outlets abroad.

Anita is an Ashoka Fellow.

Saloni Malhotra is the founder of DesiCrew, which is an organization with over 300

employees who are focused and determined to create knowledge based livelihood or

employment opportunities in rural areas and small towns.

Today, she has handed over the management of DesiCrew to a management team and is busy

with another startup, Safe city, which is a citizen`s initiative to make Indian Cities safer

again. Desicrew now has now four rural offices -- Udupi, Apakoodal and Kollumangudi and

employs 300-odd people from these villages. Saloni did her engineering from University of

Pune and started her career at an interactive media company called Web Chutney, but her

inspiration for entrepreneurship came from Professor Jhunjhunwala of TeNet group, IIT

Madras. He motivated her to pursue rural IT and BPO work via the IIT incubator. She is the

recipient of FICCI`s Best Women Social Entrepreneur Award (2009) and TIE StreeShakthi

Award (2011).

Anu Sridharan is the founder of Next Drop, a company which allows Indian residents in the

urban areas to track the availability of piped water through SMS.Anu works with the city

operator's authorities to monitor the water system and thenNextDrop sends text messages 60

minutes before water arrives in your tap. It also offers utility boards the tools to better

manage and track leakages in water supply. Anu holds her Bachelor`s and Master`s degrees

from the Civil and Environmental Engineering program at the University of California,

Berkeley

Ajaita Shah Founder and CEO of Frontier Markets, started in 2009, focus on energy products

and connecting with a microfinance partner in Karnataka. Ajaita trains locals to educate and

sell to rural households. The company has sold 10,000 solar solutions to date. Ajaita has

worked on numerous development projects in 7 states in India and has consulted with the

World Bank about microfinance in South Asia and Latin America. She has an experience of

over 5 years in Microfinance with esteemed organizations like Ujjivan Financial Services and

SKS Microfinance. She has been recently awarded the Forbes Magazine`s Top 30 Under

30`s Social Entrepreneur of the Year.

Ishita Khanna, founder of eco-tourism company Spiti Ecosphere, grew up in Dehradun and

joined TISS, with a master`s dissertation on eco-tourism. Her passion for environmental

planning and ecology conservation of the majestic mountains led her to pursue this path. At

an altitude of 17,000 feet above sea level, Spiti in Himachal Pradesh is one of the most

beautiful places in the world but for people living there, it is a harsh life without even the

basic facilities. Ishita learned about the properties of local berries of the sea buckthorn

variety, and started an NGO called Muse to produce berry pulp. Taken in by the local charm

and opportunities for tourism via the Internet, she then founded Spiti Ecosphere in 2002,

inSpiti to promote eco-tourism in Himachal Pradesh.

Thanks to a unique initiative by IshitaKhana to improve the quality of lives of the 12,000 odd

villagers in Spiti, many families have begun cultivating sea buckthorn, selling it under the

organic brand named called `Tsering` (which means blessings for life), which is now

available across India.

Aditi Avasthi is the founder and CEO of Embibe.com, an online test preparation portal

specializing in engineering entrance exams. It is a platform for preparing students for

engineering and medical exams. Mumbai-based Individual Learning Pvt Ltd, which owns and

operates Embibe.com, has now acquired 100Marks, a student guidance platforms for JEE

mains, JEE advanced and medical exams, in a cash plus stock deal, as per a company

statement, In acquiring 100Marks, we have not only added a JEE prep guidance platform,

but also committed young entrepreneurs to our team said AditiAvasthi, founder and CEO,

Embibe.

Sumita Ghose : She is the founder and managing director of Rang sutra, a social enterprise

which seeks to bring about socio economic development and inclusive growth in rural India

by engaging both: the community and the market.Rangsutra is owned by 1800 rural artisans-

most of whom are women.Sumita, the founder grew up in Calcutta and studied in Bombay.

Inspired by the Amul story, she and her husband devoted themselves to rural empowerment

work in Rajasthan and then in Assam. However, her husband was abducted by ULFA

militants and never seen again. She then founded Rang Sutra to source textiles and crafts

from artisans and retails them at FabIndia, with a strong focus on quality and punctual

delivery.

Chiki Sarkar with 'Juggernaut'is set to become India's first phone publisher. Ex-publisher of

Penguin Random House wants to entice new readers by presenting books as 'snacks' on the

phone, and Nandan Nilekani is backing her idea. A mobile app for a book publisher indeed

seems to be sharply futuristic idea that which has been envisioned along with her co-

founderDurgaRaghunath, who has worked in digital publishing for over a decade. According

to Chiki Sarkar, Juggernaut will offer all kinds of books: serious and commercial, that you

can buy in a bookshop, or download as an e-book. India is going to be transformed into a

one-device economy with the phone being the primary device, so Indian will also read on the

phone. She promises a strong and robust physical book list by April 2016 with a modest

beginning of 25 titles. But alongside, she is also gearing up to become, from February 2016,

India`s first phone publisher. Sarkar has raised Rs 15 crore for her company, which, she

emphasizes, is only round one. The two main investors are Nandan Nilekani, ex-CEO and co-

founder of Infosys, and William Bissell, the managing director of FabIndia.

These are but a few pearls in the ocean...Though the women entrepreneurial spirit has sown

it seeds deep in the last few years, it will take time for more women to come out and take the

plunge. The above women can provide enough inspiration to encourage women to dream big

and to take risks in spite of being burdened with family responsibilities.

Though the women entrepreneurial spirit has sown it seeds deep in the last few years, it will

take time for more women to come out and take the plunge.

Frequently asked questions

What is Chapter 1 about?

Chapter 1 provides an introduction to ethics and entrepreneurship. It defines ethics as concepts and principles guiding behavior and entrepreneurship as searching for and exploiting change. It introduces the concept of ethical entrepreneurship, emphasizing the importance of ethical goals.

What are the Characteristics of Ethical Entrepreneurship?

According to the text, characteristics include: measured risk-taking, fiscal responsibility, creativity, and management skills.

What are some examples where entrepreneurship has failed due to ethical issues?

The text mentions the cases of Subhiksha retail (failure to pay employees and suppliers) and Kingfisher Airlines (high operating costs and debt).

What does Chapter 2 discuss?

Chapter 2 explores the differences between intrapreneurs and entrepreneurs. Entrepreneurs start their own businesses and take full responsibility, while intrapreneurs innovate within an existing organization.

What are some advantages of having skilled intrapreneurs within a company?

Intrapreneurs drive innovation, increase productivity, and can rise to the top of the company by understanding operations at all levels.

What is the focus of Chapter 3?

Chapter 3 discusses the role of entrepreneurial development, focusing on how entrepreneurs contribute to economic development by creating social change, mobilizing capital, and generating employment.

What are the key distinctions presented in Chapter 4?

Chapter 4 differentiates between Corporate Social Responsibility (CSR) and Corporate Social Entrepreneurship (CSE). CSE is about proactively pursuing social progress and creating new business opportunities, while CSR focuses on minimizing negative impact.

What are the types of CSR mentioned?

The text identifies environmental efforts, philanthropy, and ethical labor practices as types of CSR.

What does Chapter 5 cover?

Chapter 5 is about e-commerce. It highlights its rapid growth, especially with mobile technology, and the importance of strategy over simply relying on technology. It also emphasizes customer experience and payment options.

What are some ways to improve e-commerce businesses?

The text suggests allowing customers to be brand ambassadors, choosing the right software, prioritizing challenges, and creative advertising.

What ethical challenges are covered in Chapter 6?

Chapter 6 discusses ethical challenges in entrepreneurship, including the importance of ethics in business and society, defining business ethics, and navigating ethical dilemmas in various business situations.

What are the global ethical issues highlighted in entrepreneurship?

Fundamental issues include integrity and trust. Additional ethical challenges included diversity, and compliance to various laws

What are the main points covered in Chapter 7?

Chapter 7 discusses reasons for the failure of entrepreneurship, including over-ambition, lack of capital, poor processes, hire and fire policies, underestimation of competition, improper leveraging, absence of ethical standards, poor recruitment and faulty talent management. It also highlights the importance of clear business plans and market knowledge.

What are the key elements discussed in Chapter 8 on Flipkart?

Chapter 8 narrates the success story of Flipkart, detailing its founding, challenges, innovative strategies (like cash on delivery), and acquisitions, highlighting its impact on the Indian e-commerce landscape.

What are the factors that contributed to Flipkart's Success?

According to the text, the company's innovative features included cash on delivery, same day delivery and consumer trust in online buying.

What's the relationship between innovation and entrepreneurship, as described in Chapter 9?

Chapter 9 explores the relationship between innovation and entrepreneurship, arguing that entrepreneurship is more critical as it utilizes innovation to create value. The lack of proper management and planning to help use innovation leads to failures of organizations, it also highlights the need for continuous innovation and adaptation.

What does Chapter 10 say about Innovation and Creativity?

Chapter 10 elaborates on creativity and innovation, defining innovation as the successful implementation of creative ideas. It also highlights how it all begins with creative ideas, the necessity of innovation to sustain growth, and the characteristics of successful entrepreneurs.

How to increase your creativity and innovation

According to the text, there are many ways to increase your creativity and innovation such as: by observing, increasing knowledge base, and defining the problems completely.

What does Chapter 11 highlight about social media?

Chapter 11 discusses the role of social media as the new marketing frontier in e-commerce. It mentions how social media platforms like Facebook and Twitter provide forums to reach consumers, gather feedback, and build brand excitement. It also acknowledges the digital divide and the continued relevance of traditional marketing.

What key aspect is present in Chapter 12?

Chapter 12 presents the debacle of Vishal Retail, a clothing retail company. The key concept of cash and importance of financial planning.

What is discussed in the Chapter 13?

Chapter 13 highlights the Theories of Entrepreneurship. It discusses the Sociological theories that accelerated growth of the company such as theory of religious beliefs and social change.

What are the challenges faced by Women Entrepreneurs in India, according to Chapter 14?

Chapter 14 explains the many challenges women in particular face starting up a company such as patriarchal society, abscence of entrepreneurial aptitude, heavy competition and family conflicts.

Who are some of the Women Entrepreneurs forging ahead with start ups?

Chapter 15 names many women entrepreneurs who made their way in the tech and retail sector. Some of them are listed: Anita Ahuja, Saloni Malhotra, and Aditi Avasthi.

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Detalles

Título: Ethics and Entrepreneurship. New Paradigms
Calificación: 1.00
Autor: Dr. Venkatesh Ganapathy (Autor)
Año de publicación: 2017
Páginas: 50
No. de catálogo: V375939
ISBN (Ebook): 9783668533684
ISBN (Libro): 9783668533691
Idioma: Inglés
Etiqueta: woman india entrepreuneurship social media innovation e-commerce csr cse
Seguridad del producto: GRIN Publishing Ltd.

Citar trabajo: Dr. Venkatesh Ganapathy (Autor), 2017, Ethics and Entrepreneurship. New Paradigms, Múnich, GRIN Verlag, https://www.grin.com/document/375939

Ethics and Entrepreneurship. New Paradigms