A REPORT ON

Paper No. M- 109

(Seminar on Contemporary Issues)

“Analyzing the impact on Indian Entrepreneurial Ecosystem”

SUBMITTED BY: SUBMITTED TO:

Manisha Mathur [Link]. JYOTSNA MEHTA

ROLL NO. 62

S. S. JAIN SUBODH MANAGEMENT INSTITUTE

Jaipur,(Rajasthan)
2023-2024
 STUDENT’S DECLARATION

I Manisha Mathur hereby declare that the report on paper no. M-109 (Seminar on Contemporary

Issues titled “Analyzing the impact on Indian Entrepreneurial Ecosystem” submitted in partial

fulfillment of the requirements of MBA course, Semester I, subject M-109, is a report of

information collected by me under the guidance of Dr. PROF. Dr. JYOTSNA MEHTA.

The findings and results embodied in this report have not been submitted to any other University

or Institute for the award of any degree and diploma. It is myown original work and I alone

am responsible for its contents or for any mistake that may be reflected in it.

Name: Manisha Mathur

Roll no: 62

Date:
 ACKNOWLEDGEMENTS

I would like to express gratitude to my guide Dr. PROF. Dr. JYOTSNA MEHTA, who guided

and supported me in my academic endeavor. I would also like to thank our Institute’s director

Prof. (Dr.) Raju Agrawal who has given the opportunity to undertake this academic effort.

The Institute has always supported us in carrying out research and the well- stocked library, the

excellent computer laboratory and supportive management and faculty, helped me in carrying out

my research and preparing the report. In the course of my research, I learnt a multitude of

technical and report writing skills and developed a deeper perspective of the topic selected for

research and I am truly grateful for the learning.

Name: Manisha Mathur

Roll no: 62

Date:
 CONTENTS

Sr. No. CHAPTERS Page No.

1
Introduction 1

2
Elements of Entrepreneurship 3

3
Impact of pandemic on the Indian Entrepreneurial 4

4
Types 5
5
Evolution of Entrepreneurship in India 9

6
Importance of Entrepreneurship 12

7
How help in growing the Indian Economy 15

8
Factor Effects on Entrepreneurship 17

9
Sources of Funding 18
10
GOVT. Scheme to Support Entrepreneurship 25

11
Entrepreneurship Trends in India 2023-2024 29

12
Entrepreneurship Ecosystem is Booming in India 34

13
Conclusion & Key Takeaways 36
 ENTREPRENEURSHP
What is entrepreneurship?

Entrepreneurship is the act of creating a business or businesses while bearing all the risks withthe
hope of making a profit.

But as a basic definition, that one is a bit limiting. The more modern entrepreneurship definition is
also about transforming the world by solving big problems like bringing about social change or
creating an innovative product that challenges the status quo of how we live our lives on a daily
basis.

Entrepreneurship is what people do to take their career into their hands and lead it in the direction
they want.

It’s about building a life on your own terms. No bosses. No restricting schedules. And no one
holds you back. Entrepreneurs are able to take the first step into making the world a better
place—for everyone in it, including themselves.

1
 INNOVATION
Innovation word known “Innovare” that means is doing new and different thing. Implementing of
a new or significant improved product or process a new marketing method or new
Organizational method in business practices. Understanding innovation, innovating culture
element in present day. in order for innovation management to be successful, senior
management must adopt these elements to their operation.

These factors:

 Well organized financial system

 Distinctive between and competence
 Difference between requirements and responsibilities
 A society which has cultural diversity
 Effective Communication

The innovation discipline can characterize as knowledge base of entrepreneur is systematic

examination of different area which offer entrepreneurial opportunities. Systematic innovation
follows up seven sources of innovation opportunities. These are

• Unexpected

• Discrepancy

• Process Need

• Exchange in sector or market structure

• New information

2
What is the key of elements of entrepreneurship?

1. Innovation
These four key elements of entrepreneurship include innovation, organization, risk and vision. In
the following section, all these elements have been discussed briefly Innovation is considered as
the key factor in the concept of entrepreneurship. An entrepreneur adds to the economy in
terms of innovation and discrepancy and the degree of these assures a positive outcome. The
entrepreneurs carry out imaginative and unique thoughts on the available situations and strive
to foster something new. It can be in terms of a new product, production technique, technology,
marketing strategy, and so on.

Ola - Industry Details

India’s taxi-hailing market is valued at more than $40 Billion. The market is expected to grow at
a CAGR of 6.3% between 2022-2024. The increase is supposed to happen due to the changing
lifestyles of travellers and the growing disposable incomes of consumers, especially in Tier-I and
Tier-II cities.

2. Organization
The organization is another key element of successful entrepreneurship. Without organization,
everything will become disorganized and unmanageable which further will cause losses,
decreasing business goodwill, unsatisfied customers, and mental stress to the staff due to whichthe
workers may leave the organization Hence it is insignificant to maintain a decent
organizational structure within the company, which defines who will perform a specific task and
the way that task would be performed.

3. Risk
All businesses involve risks and in entrepreneurship, it is the sole responsibility of the
entrepreneur only as it is a “one-man-show”. Without taking risks, a business cannot flourish but
on the other hand, indulgence in excessive risk-taking may lead to severe losses. Risk-taking is
another word for exploiting opportunities and gaining a competitive edge over others
performing in the same market. This way, the business and the economy both are facilitated.

4. Vision
An entrepreneur must have a strong vision if he wants to succeed in the business. The foresight of
the entrepreneur determines how the business and other business policies will run. The way

3
the entrepreneur visualizes his business in the coming years is how the business moves forward
and the profitability is earned. Keeping the vision in the head, the tasks are identified,
Performed, risks are taken and organizational culture is brought forth. It is important to set
Long-term and short-term goals for a business so that the organizational objectives are learned.
That’s almost all there is to explain the concept of entrepreneurship and its basic elements of it.
An entrepreneur needs to control the whole business performance, tackle the workforce,
Monitor the market trend, and modify business policies to meet customer demand. Thus he/she
needs to master all the four elements of entrepreneurship to reach new heights of success with the
business. Conclusions At last, it is concluded that entrepreneurship can be observed as an
identifying change, pursuing opportunities, taking risks and responsibilities, innovation of
existing or new products, employing the better use of resources, creating new values that are
significant for customers, and repeating the process all over again and again.

Impact of pandemic on the Indian Entrepreneurial

The Indian entrepreneurial ecosystem has evolved dynamically over the last twenty years, some
start-ups were founded around the 2000s when the ecosystem was still immature as only a few
investors were active. As a result of the pandemic, life has evolved considerably. The utilization
of digital technologies is becoming the norms. The COVID19 pandemic initially started in 2020
and has affected most sector of the worldwide economy. Thus, there are concurrent economic
and social effect derived from the pandemic. Physical and human contact trade has decreased
due to social distancing. There is a requirement for all business to come up with some
innovation, that should be flexible to survive within the market condition.

Indian Entrepreneurial Ecosystem has one of the fastest growing ecosystems in the world. India
has attained third position in global startups ecosystem; India has improved their ranking in the
last five years. The pandemic has changed the fundamental prerequisites to become an
entrepreneur’s Indian market offer many opportunities for startups and promote growth growthand
create employment. This research has identified that although the pandemic has been a huge
hurdle, but it also helped us understand the potential Indian economy. Since the pandemic has
emerged disrupting financial market and leaving the planet teetering in economic
downturn. The recent pandemic has created an identical necessity to innovate and overcome its
myriad challenges -from delivering vital services like education to developing within the shortest
possible time. We all are aware the world will never be the same ever and with the new normal
arriving in with baggage of opportunities, the future for the Indian entrepreneurial ecosystem is
definitely showing some bright signs.

4
Different types of Entrepreneurships: -

1. Small Business Entrepreneurship

Small business entrepreneurship is a small business wholly created by a single individual. The
company would not have the goal to expand. The individual will benefit in this form of business
if the company prospers.

Example: -
Tina opens a tiny yet chic beauty parlor in her hometown. Her motivation, business strategy, and
vision will be the guiding factors for the success of her business.

2. Scalable Startup Entrepreneurship

Companies concentrating on finding newer ways to develop scalable and repeatable business models
focusing on greater sales with greater resources are known as Scalable Startup
Entrepreneurship. This form of entrepreneurship usually begins with an idea to make the world a
better place to live. Scalable startups intend for rapid business growth and substantial
financial gain. The narrative behind these types of entrepreneurial businesses is starting small
and gaining great success with innovation.

Example: -
Amazon is one of the best entrepreneurship examples of scalable startup entrepreneurship.

3. Intrapreneurship
Intrapreneurship is a structure that permits an employee to behave like an entrepreneur within a
business or other organization. Self-driven, proactive, and action-oriented individuals, known as
intrapreneurs, take the initiative to explore new goods and services. An intrapreneur knows that
failure does not have the exact personal costs as it does for an entrepreneur because the
company bears the costs of failure.

However, intrapreneurship is a way companies motivate their employees to have anentrepreneurial

spirit.

Example: -
The tale of Google News’ origin is one of the fascinating examples of entrepreneurship. Krishna
Bharat, a research scientist at Google, was keeping up with the most recent news from various
websites in the wake of the 9/11 incident. He had the notion of developing a tool that could

5
scan and assess numerous news websites. Google developed his concept into what is todayknown
as Google News.

4. Large Company Entrepreneurship

Large company entrepreneurship refers to an existing corporation that can create a new business
segment through entrepreneurship. In these types of entrepreneurships, current businesses may
be positioned well to expand into other industries or engage in cutting-edge technologies.

Example: -
Google, Microsoft, and Samsung are all examples of large company entrepreneurship as theykeep
innovating and developing new products and services around their core- product line.

5. International Entrepreneurship
International entrepreneurship is the practice of an entrepreneur operating their firm in another
nation. This implies the firm’s expansion worldwide since an entrepreneur performs all business
operations outside the national borders. These types of entrepreneurships include exporting
goods, obtaining licenses, and opening a sales office abroad. These are the industries that operate
outside of their country’s borders.

Most firms cross international borders to build value, expand their operations and engage in
unique creative cross-border activities, increasing the chances of innovation in goods and
services.

Example: -
Amazon, Google, Microsoft, Yahoo, TikTok, Facebook, etc., are all international businesses run
by some great minds.

6. Social Entrepreneurship
Social entrepreneurship’s essence is recognizing social issues and enacting social change
through entrepreneurial practices. It all comes down to conducting a thorough study/ researchto
fully define a specific social problem before planning, launching, and overseeing a social
enterprise to bring the desired change.

Social entrepreneurship primarily focuses on building social capital without assessing

performance in profit or return in monetary terms, in contrast to general and common business
entrepreneurship, which is initiating the start of a new firm or diversifying an existing one. A

6
societal problem may or may not completely disappear due to the transformation. It might be a
lifelong process that concentrates on improving the current situation.

Social entrepreneurs work for non-profit or non-governmental groups that raise money through
fundraisers in their local communities.

Example: -
A great example of a non-profit social enterprise is Rang De. It is an internet platform that
Ramakrishna and Smita Ram founded in 2008. It was for the poor people in India’s rural and
urban areas to get microcredits with interest rates as low as 2% annually. They offered direct
lending to borrowers, tracking investments, and receiving recurring payments online for lenders
nationwide.

7. Environmental Entrepreneurship
Environmental entrepreneurship, often known as “ecopreneurship,” is created to address
environmental issues or sustainability. In the 1990s, the phrase gained acceptance.
Entrepreneurs whose commercial activities are not just motivated by profit but also by a concern
for the environment are considered ecopreneurs. Under these types of
entrepreneurships, entrepreneurs develop environmentally conscious firms, combining profit
maximization with the desire to produce a more sustainable environment around them and their
company.

Example: -
Garden planning, energy auditing, composting business, green consulting, etc., are a few
examples of environmental entrepreneurship.

8. Technopreneurship
The phrases “technology” and “entrepreneurship” are combined to form “technopreneurship.” The
word was first used in 1987, but it gained popularity in the early 2000s with the spread of the
Internet. These types of entrepreneurships need tech-savvy, inventive, creative people
willing to take calculated risks, unlike other forms of entrepreneurship, which may frequently be a
one-person show.

Example: -
Jeff Bezos, founder of Amazon, Bill Gates, founder of Microsoft, Steve Jobs founder of Apple,
etc., are apt examples of technopreneurship.

7
9. Hustler Entrepreneurship
Hustler entrepreneurship represents entrepreneurs who hustle and are independent thinkers
driven by a desire to succeed in business. Hustler is also a classification of entrepreneurship.
Such people strive arduously to expand their businesses after starting modestly. They put their
best effort into achieving their business goals rather than using money or capital. Since they
create opportunities, they never wait for them. Hustlers never give up, have a high appetite for
risk, and are constantly prepared to take on difficulties.

If you can sell anything and are prepared for any challenge that may come your way, you are a
hustler.

Example: -
One of the most famous examples of a hustler entrepreneur is the late Ray Kroc, who did not create
McDonald’s but helped mold it into the billion-dollar giant it is today. His forceful
acquisition of McDonald’s from the McDonald brothers made him generally considered a villain,
yet his grit and perseverance cannot be disputed.

When selling milkshake makers, Kroc met McDonald’s as a potential customer, but he left with
an idea of how it could be even better.

From a purely business standpoint, Kroc was the best thing to ever happen to the company,
growing it from a single burger stand in San Bernardino, California, to a global franchise. He
worked tirelessly, accepting rejection as a challenge rather than a barrier.

10. Innovative Entrepreneurship

Innovative entrepreneurship is the foundation for developing new business concepts to make a
profit, assisting the community, and achieving commercial objectives.

Innovative business owners use business models to discover the demands of an enterprise and
boost its marketability. Most business owners use cutting-edge concepts to develop new
versions of these models or improve the ones they already have. This inspiration can be used to
create creative company success plans.

Example: -
Amazon has changed the face of retailing for generations to come! It brought innovation to the
entire e-commerce and made buying and selling an easy process for buyers, sellers, and
business owner.

8
ENTREPRENEURSHIP AND INNOVATION
There is a greater need for innovation and entrepreneurship today due to globalization,
technological and development and global recession. Innovation and entrepreneurship are
important for indivuals,organization and government. It will continually impact consumer and
economic development in future. Entrepreneurship and Innovation is an important to all business
sector.

Entrepreneurships is a process that initiating with creativity and resulting with innovation. There is
link among an entrepreneurship and innovation. No having innovation, the entrepreneur is
unlikely to succeed as they offer value to customer.

Evolution of Entrepreneurship in India

Transformation of Entrepreneurship in India Indirect Effects of Entrepreneurship on the
Economy Importance of Entrepreneurship to the Economy of India Need of Entrepreneurship for
Economic Growth Understand an Entrepreneurship Topic with Changing Face of
Entrepreneurship in India.

9
Frequently Asked Questions
The growth and transformation of entrepreneurship in India began in the early times when the
‘barter system’ was a common means of exchange. However, before proceeding, let us
understand what entrepreneurship is and who entrepreneurs are.

Entrepreneurs are those individuals or groups who create new businesses and job
opportunities. Entrepreneurship is the ability of an entrepreneur to run and operate a business
with goal-oriented objectives. In this article, we will focus on the following:

Evolution of entrepreneurship and their classification into different areas.

The importance of entrepreneurship in India.

The need of entrepreneurship Evolution of Entrepreneurship in India Medieval Age.

To discuss the growth or development of entrepreneurship in India, you must understand that India
has one of the oldest and most civilized business histories.

During the Harappan civilizations around 2700 BC, there was an internal and external trade
culture. Also, due to this, most foreign countries recognize Indian entrepreneurial skills.

Moreover, the increase in trade occurred during the era of Mughal rule. The popularity of Indian
products, arts, crafts, Vedic tools, foods, and much more attracted attention from different parts of
the world. The Arab mainland, western colonial counties and African countries were the
major parties involved in the trade.

At the same time, different countries like UK, France and Portugal expanded their colonies in
different parts of the world. However, a significant entrepreneurial change occurred when the East
India Company started its business from the Bay of Bengal and later occupied parts of
Bengal. It indirectly linked the entire Indian state into one business ecosystem.

There were some major downsides to the colonial mindset of England. However, it also played some
good aspects in developing entrepreneurship in India.

Modern and pre-independence

This was the era of industrialization in India, where some of India’s best entrepreneurs rise. The
major events changed the face of entrepreneurship in [Link] first cotton textile mill was
revolutionized in 1854 by an Indian entrepreneur, Kawasji Dover. It was one of India’s boldest
steps in the modern development of entrepreneurship development.

10
Jamsetji Tata founded the company Tata Group in the year 1868. With the foundation of the
Tata Group, he has created a bar for entrepreneurship development in India.

1874 Cotton Mill by JRD Tata, TISCO by Dorabji Tata, 1932 Tata Airlines, Tata Steel Plant,
and more were high-rate businesses in India. At the same time, it has also played a major role
in various independence initiatives.

Post-independence
Entrepreneurship in India, along with the national economy, was ground-breaking after
independence. There was not much left in the Indian economy at that time. However, the
government took major steps to support India’s development which is as follows.

Prime Minister Nehru adopted the economic structure line of the Soviet Union. It gave a major
push to the New Industrial Policy of 1956. Similarly, this policy liberalized the bar and standards
set by the British government, which were the ultimate impediment to industrial development.

Economic reforms were carried out in the initial phase of governance. Also, prominent
economists adopted the Mahalanobis model, which primarily aims to support entrepreneurs.

As all these influential policies were in operation, few major industries were established as
opposed to the traditional textile and natural resource industries. Since independence, there was a
huge growth in entrepreneurship in India.

However, it may seem that most of the top entrepreneurs were already in business. But the
reality was different. Economic policies were not giving much support to the entrepreneurs, dueto
which there was rough growth. However, the transformation of entrepreneurship began in
1990.

Transformation of Entrepreneurship in India. The major transformation of entrepreneurship in

India began with the ‘Economic Policy Reform’ in 1991. The policy was further expanded in
2022. So, you can easily categorize the major transformation of entrepreneurs in India by these
two policies and events.

New Economic Policy the New Economic Policy of 1991 was a huge turning point. This policy
has included three major aspects, which are as follows.

Aspects Role Liberalization Providing some provisions in different parts of the industry It boosts the
private sector, including banks and the stock market Privatization Disinvestment of Public Firms to
reduce the burden Promote the national entrepreneurs for good business

Globalization Welcoming FDIs, and FPI Creating SEZ and Economic Corridor for foreign companies.

11
Importance of Entrepreneurship: -

1. Entrepreneurship Accelerates Economic Growth

Entrepreneurs are important to market economies because they can act as the wheels of the
economic growth of the country.

By creating new products and services, they stimulate new employment, which ultimately
results in the acceleration of economic development. So public policy that encourages and
supports entrepreneurship should be considered important for economic growth.

A large number of new jobs and opportunities are created by entrepreneurship.

Entrepreneurship creates a huge number of entry-level jobs that are very much important to turn
unskilled jobholders into skilled ones. It also prepares and provides experienced workers to large
industries. The increase in the total employment of a country largely depends on the rise of
entrepreneurship. So, the role of entrepreneurship in creating new job opportunities is huge.

By bringing innovation to every aspect of businesses, entrepreneurial ventures enhance

production utilizing the existing resources in the most effective ways. Entrepreneurs develop
new markets by introducing new and improved products, services, and technology. Thus, they
help generate new wealth and add more to the national income. So the government can offer the
citizens more national benefits.

2. Entrepreneurship Promotes Innovation

Through the right practices of research and development, entrepreneurs bring new innovation
that opens the door of new ventures, markets, products, and technology. Entrepreneurs have a
role to play in solving problems that existing products and technology have not yet solved. So by
producing new products and services or bringing innovation to existing products and services,
entrepreneurship has the potential to improve peoples’ lives.

12
3. Entrepreneurship Can Promote Social Changes
Entrepreneurs change or break the tradition or cultures of society and reduce the dependency on
obsolete methods, systems, and technologies. Basically, entrepreneurs are the pioneer of
bringing new technologies and systems that ultimately bring changes to society. These changes
are associated with improved lifestyle, generous thinking, better morale, and higher economic
choice. In this way, social changes gradually impact national and global changes. So, the
importance of social entrepreneurship must be appreciated.

At Duke, the Innovation and Entrepreneurship Initiative has a special program aimed specifically
at Social Innovation. The program is “building upon and extending the strengths of the
university to create a transformational learning environment to inspire, prepare, and support
entrepreneurial leaders and scholars to turn knowledge into action in pursuing innovative solutions
to the world’s most pressing problems.”

For example, one of the most recent projects of the initiative is the Duke-UNICEF Innovation
Accelerator, which is focused on entrepreneurship for menstrual health and hygiene for womenand
girls in vulnerable communities in three African countries.

13
4. Entrepreneurship Promotes Research and Industrial Development
Along with producing new business ideas and thinking out of the box, entrepreneurs also
promote research and development. They cultivate their ideas, shape them into a new form, and
turn them into a successful business endeavor.

Entrepreneurs are a special kind of people; they are always working to discover new ideas and
improve existing ones. But their impact extends beyond their own companies and ventures: when
an entrepreneur develops a new product, service, or idea, others often follow (and sometimes
even further refine the ideas).

Innovation and industry is accelerated through the combined action of entrepreneurs. They can
motivate each other, share ideas and inspiration, and share planning to establish new industries. The
change of the existing industrial climate opens the doors for others at the same time.
Therefore, we see that the importance of entrepreneurship to the economy is multi-functional.

5. Entrepreneurship Develops and Improves Existing Enterprises

We often think of entrepreneurs as inventing totally new products and ideas, but they also impact
existing business. Since entrepreneurs think differently, they can come up with
innovative ways to expand and develop the existing enterprises. For example, modernizing
production processes, implementing new technology in the overall distribution and marketing
processes, and helping the existing enterprises to utilize existing resources in more efficient
ways.

14
How entrepreneurship can help in growing the Indian economy?
Here are the top 7 important roles an entrepreneur plays in the economic development of a country.

1. Wealth Creation and Sharing:

By establishing the business entity, entrepreneurs invest their own resources and attract capital (in
the form of debt, equity, etc.) from investors, lenders and the public. This mobilizes public
wealth and allows people to benefit from the success of entrepreneurs and growing businesses.
This kind of pooled capital that results in wealth creation and distribution is one of the basic
imperatives and goals of economic development.

2. Create Jobs:
Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The simple
translation is that when you become an entrepreneur, there is one less job seeker in the
economy, and then you provide employment for multiple other job seekers. This kind of job
creation by new and existing businesses is again is one of the basic goals of economic
development. This is why the Govt. of India has launched initiatives such as StartupIndia to
promote and support new startups, and also others like the Make in India initiative to attract foreign
companies and their FDI into the Indian economy. All this, in turn, creates a lot of jobopportunities
and is helping in augmenting our standards to a global level.

3. Balanced Regional Development:

Entrepreneurs setting up new businesses and industrial units help with regional development by
locating in less developed and backward areas. The growth of industries and business in these areas
leads to infrastructure improvements like better roads and rail links, airports, stable
electricity and water supply, schools, hospitals, shopping malls and other public and private
services that would not otherwise be available.

Every new business that locates in a less developed area will create both direct and indirect jobs,
helping lift regional economies in many different ways. The combined spending by all the new
employees of the new businesses and the supporting jobs in other businesses adds to the local and
regional economic output. Both central and state governments promote this kind of
regional development by providing registered MSME businesses various benefits and
concessions.

15
4. GDP and Per Capita Income:
India’s MSME sector, comprised of 36 million units that provide employment for more than 80
million people, now accounts for over 37% of the country’s GDP. Each new addition to these 36
million units makes use of even more resources like land, labour and capital to develop products and
services that add to the national income, national product and per capita income of the country.
This growth in GDP and per capita income is again one of the essential goals of
economic development.

Standard of Living: Increase in the standard of living of people in a community is yet another key
goal of economic development. Entrepreneurs again play a key role in increasing the standard of
living in a community. They do this not just by creating jobs, but also by developing and
adopting innovations that lead to improvements in the quality of life of their employees,
customers, and other stakeholders in the community. For example, automation that reduces
production costs and enables faster production will make a business unit more productive,
while also providing its customers with the same goods at lower prices.

5. Exports:
Any growing business will eventually want to get started with exports to expand their business
to foreign markets. This is an important ingredient of economic development since it provides
access to bigger markets, and leads to currency inflows and access to the latest cutting-edge
technologies and processes being used in more developed foreign markets. Another key benefit is
that this expansion leads to more stable business revenue during economic downturns in the local
economy.

6. Community Development:
Economic development doesn’t always translate into community development. Community
development requires infrastructure for education and training, healthcare, and other public
services. For example, you need highly educated and skilled workers in a community to attract
new businesses. If there are educational institutions, technical training schools and internship
opportunities, that will help build the pool of educated and skilled workers.

16
Factor affect entrepreneurship
There are a number of factors affecting entrepreneurship or motivating entrepreneurs as follows:

Individual
Entrepreneur is an individual having specific knowledge, skills and efficiency. Any new
enterprise is created by an individual or group of individuals. The creativity of an individual
encourages him to establish a new enterprise. Creativity consists of innovation, search and
research. Personality, social conditions, social support, education and training etc. factors lay an
important role for developing such skills and motivate an individual to become an entrepreneur.

Industrial development
More suitable the industrial environment in a nation, more rapid development of
entrepreneurship. More favorable industrial environment is one, where transportation,
communication, electricity, labor, water, raw materials etc are easily available. Such industrial
environment by and large affects entrepreneur development.

Social environment
Social system plays a vital role in social environment. As an individual is born and developed in
a family and society, social values, ethical standards, family structure, caste and religious attitudes
of social environment affect entrepreneurship development.

Economic environment:
The economy in which enough capital fund is available for establishing an enterprise and market
incentives are also available, encourages entrepreneurship development. Banking, education,
industrial policy, economic policy, Exim policy interest rate etc. Factors of economic
environment affect entrepreneurship development. Thus, economic soundness and free economy
motivate entrepreneur development.

Technological environment
Technology is an art of converting the natural resources into goods and services more beneficial
to society. Due to technological development new product, new production process new raw
material, new researches are encouraged for modernization.

Political environment

17
Government also plays an important role in entrepreneurship development. Due to
Globalization, Indian economy has adopted free industrial policy, restrictions on industries have
been minimized and MRTP act has been cancelled, which has motivated many entrepreneurs to
establish and to develop industries in Indian economy.

Incentives
Incentives are also one of the important factors affecting entrepreneurship. If motivating loans,
policies, organizations are developed, it leads to rapid entrepreneurship development.

Profit making
It is the profit that induces the prospective entrepreneurs to get into the business and start new
activities. Profit, therefore, is a factor which induces the entrepreneur to engage and utilize the
factors of production and for development.

Sources Of Funding
There are many sources of funding available for entrepreneurs

1. The founders Explanation:

Do you have some savings left yourself? Did you just receive a nice bonus? Why not invest it in
your own company! However, you don’t necessarily have to invest in terms of cash. If a co-
founder or partner invests his/her hours in helping you start your business while also working
his/her own job, that is also an investment. Or, what about a founder making an office,
machines or a technology license available? All of these are sources of investment. Temporarily
not paying yourself any wage is also an option.

When to choose this source of financing: Founders can obviously invest in their own company at
any time. However, you usually see this happening when the company has just been founded.
When a company is set up, in many cases, no revenues or external financing is available, yet
there are always some startup costs to cover.

In terms of investment size, you can go all out (as far as your bank account allows you to). What is
the advantage of this form of investment? It can be perceived as positive by an external financier
that a founder has some “skin in the game” as well. Why would another person take the risk of
investing in your company if you have never been prepared to take the risk yourself?

18
2. The 3Fs: family, friends and fools Explanation:
Before you start approaching professional investors, it might be worthwhile to try to raise some
funding within your network of family, friends and fools. These are often people from your
family or social network who are close to you and mainly invest because they have faith in your
idea or in you as a person/entrepreneur. As they are usually not professional investors, you
should not expect a professional assessment of your company strategy from such an investor.

When to choose this source of financing: This type of financing is often pursued to cover the
costs of setting up a new company or to bridge the gap to a first round of (pre-)seed funding.
The advantage of this funding type is that it is a quick and cheap way of collecting cash,
especially if you take into account the risk that the 3Fs take (which they are not always aware of
themselves: hence, “fools”).

Usually, the amounts concerned with this type of investment are not too high and are typically
repaid as a loan (with or even without interest) or are invested in exchange for a small equity share
in the company. When the invested amounts, share percentages and level of
professionalism increase, then we speak of angel investing.

3. Angels/informal
Explanation: Angel or informal investors are experienced entrepreneurs who have some funds
available (often from previously exited ventures) and invest those in new companies to help
other entrepreneurs succeed in their business. Angel investments start around 50,000
dollars/euros and can amount up to (or more than) a million dollars/euros, as angels sometimes
invest together in groups.

When to choose this source of financing: Go for an angel if you are looking for seed funding
within the abovementioned range. Angels typically offer “smart capital”: not just money, but
also networking opportunities and knowledge within specific sectors. Try to find an angel that
fits with your company in terms of experience and sector knowledge. Angel’s spot new
investment opportunities through their network, but (for instance) also through platforms suchas
AngelList, Crunchbase and f6s.

4. Crowdfunding
Explanation: Nowadays, it is hard to imagine that crowdfunding once didn’t exist. With
crowdfunding, the “crowd” finances the funding need of a company. Usually, crowdfunding is

19
performed via an online platform where entrepreneurs offer investment opportunities on one
side of the platform and on the other side of the platform, a large group of people invest small
amounts to meet the entrepreneur’s investment need.

When to choose this source of financing: In general, there are three types of crowdfunding: loans,
pre-orders/donations and convertible loans. Are you looking for a loan, but having trouble
securing one from the bank because your risk profile is too high? Then try loan
crowdfunding. Do you have a prototype available, and do you want to test the product/market fit,
but you cannot finance the production/delivery of the first batch of actual products? Then go for
pre-orders/donations. Well-known examples of platforms offering these types of crowdfunding
are Kickstarter and Indiegogo. They are mainly suitable for products, projects or gadgets aimed
at the consumer market and have a strong design element to them.

Convertible loans have the following advantages: 1) no shares are being issued, 2) valuation
discussions are postponed until the moment the value of a company can be better determined and
3) it is an easier, faster and cheaper process than an actual share transfer.

Since the people that invest via crowdfunding platforms are not always professional investors,
crowdfunding is better suited for propositions that are not too complex or technical and that
are easily understood by the general public (that’s why it’s called “crowd” funding). Think, for
example, of consumer products.

There are also crowdfunding platforms with a specific focus, so take that into account when
making your choice. As an example, Dutch crowdfunding platform Oneplanetcrowd focuses
specifically on sustainable projects with a positive impact.

5. Subsidies
Explanation: A huge number of tax/financial schemes and subsidies exist. The aim of
subsidies/schemes is typically to stimulate entrepreneurship, innovation/R&D or economic
growth within a certain geographical area. That is why every region, every country and even, for
instance, the entire European Union has its own subsidies.

When to choose this source of financing: ALWAYS, and we can be very brief about this. Subsidies
are relevant during almost every company stage, from startup to corporate, from freelancer to
publicly traded company.

As mentioned before, many subsidies only focus on a certain geographical area and, often,
there is also a specific sector focus. Therefore, it is important to look for a subsidy that fits with your
company.

20
Keep in mind that administrative and reporting requirements often apply to subsidy applications and
grants. You need to be able to justify the costs for which you request a subsidy and, sometimes, it
is mandatory to have this justification audited as well.

6. Venture capital/private equity

Explanation: Private equity is the collective name for professional investment firms that invest in
companies that are not publicly listed. Venture capital (VC) is a type of private equity that
focuses specifically on (from the investor’s perspective) risky investments in early-stage
companies.

People often speak of private equity when investing in larger organizations that have existed for
some time already. Venture capital, on the other hand, involves investing in growth capital of
young companies. In general, VC firms have a fund available of a specific size (e.g., 100 million
dollars/euros) that has to be invested within a certain period of time (e.g., 10 years) in a number of
companies with different risk profiles to spread the risk across the portfolio. The aim is to sell the
shares after a couple of years for a certain return/profit.

When to choose this source of financing: Venture capital is mainly suitable for companies that
have already passed the “seed stage” and are looking for series A or series B funding. This type
of funding is therefore meant to help companies grow faster than they would if growing
organically, for instance if a firm wants to internationalize.

VC firms typically invest in the range of about 500,000 to 20 million dollars/euros. To

raise funding from a VC, a company’s product/market fit has to be already proven, and
steadily growing revenue streams have to exist for several years.

However, there are also venture capitalists with seed funds (starting with rounds of about
200,000 dollars/euros) that offer seed capital to companies that have not met the
abovementioned criteria yet.

The advantage of VC firms is that they can fund multiple rounds for the same company, where
an angel or other seed investor is not always capable of doing so. Venture capitalists often also
have a specific sector focus and good knowledge/network within this sector.

21
7. Debt financing: the bank
Explanation: Even though there are banks around that have started venture capital funds, theyare
generally more risk averse than, for example, angels, seed investors and normal VC
investors. This does not mean that banks do not finance entrepreneurs– on the contrary!

However, they are more likely to invest in small to medium businesses, in companies with lower
risk profiles (than startups, for instance) and when companies can offer collateral. For an early-
stage startup that does not fit in the focus of the VC funds, it can thus be difficult to secure funding
from a bank.

When to choose this source of financing: As mentioned, banks generally take less risk than, for
example, VC investors and angels. However, if you can provide collateral, then a bank is a very
good option. Or if you are looking for working capital financing, stock financing or financing
to cover investments in buildings/machines, then a bank is a very good option to consider as
well.

Companies generating stable income streams and that have been growing organically for a
number of years (and are thus less risky) can certainly also turn to a bank. A big advantage of
debt financing is that you do not have to give away a part of your company in terms of equity,
which means that in the long term, it can turn out to be a much cheaper way of financing than, for
example, securing funding from an angel investor or VC investor.

8. Factoring
Explanation: In short, factoring is a way of financing working capital by lowering the size of
accounts receivable. Example: if you send an invoice to a customer, but it takes the client 60
days to pay, then you can decide to “sell” this invoice to a factoring company (against a certain
payment, of course).

The factoring company will pay for the invoice (or provides you with a loan) so that you do not
have to wait 60 days before the invoice is paid by the client. A factoring company can also take
over the risk that the client does not pay at all.

When to choose this source of financing: First of all, it goes without saying that you must have
clients in order to be eligible for factoring. If you do not have any paying customers, factoring is
not an option. If you do have customers, factoring can be very useful if you have to deal with
long payment terms.

Do you have large corporates as your customers? If so, it can take a while for invoices to be paid,
and there is often not much you can do about it. In order to keep your working capital position

22
healthy, factoring can be a good solution. Is accounts receivable management costing you a lotof
time and effort? Do you often suffer from bad debtors? Then factoring could also be an
outcome.

9. Leasing Explanation:
Do you have to make large investments in assets such as computers and/or machines? Why
don’t you lease instead of purchasing them? By leasing assets companies can spread payments
over a longer period of time instead of having to fulfill the full payment of an investment the
moment they decide to purchase an asset.

When to choose this source of financing: When a company is capital-intensive, meaning it is

dependent on the use of (sometimes expensive) assets, such as machinery, leasing may be the way
to go.

10. Suppliers Explanation:

Is your business heavily reliant on its supply chain? Then try to negotiate favorable payment
terms with suppliers. If your customers have long payment terms, for instance, you can try to
agree to longer payment terms with your suppliers as well so that you do not run into any
problems concerning your working capital. On the other hand, you could also try to discuss
discounts in the event you pay your suppliers very quickly.

When to choose this source of financing: Choose this form of financing if you have good
relationships with your suppliers or if you have a good negotiating position with them (for
example, if you are a large/important customer).

11. Initial Coin Offering

Explanation: For an Initial Coin Offering (ICO), a company typically writes a whitepaper to pitch
a certain business idea and asks the general public to finance the idea using bitcoin and/or
altcoins (other cryptocurrencies than bitcoin). In return, the investor receives an altcoin newly
generated by the company during the ICO.

Usually, this newly generated altcoin is at the center of the company’s business activities and
thus leveraged in a way that increases its value. As soon as this altcoin becomes tradable,
investors can resell it (and hopefully make a profit). An ICO is therefore very similar to an IPO

23
(see section 12 below), but uses cryptocurrency instead of shares that can be converted into
“normal cash”.

When to choose this source of financing: It is possible to do an ICO as a non-crypto company,

but currently, the majority of the companies that do an ICO are blockchain/cryptocurrency
companies. This is due to the fact that the new altcoin generated by an ICO often has a function
within the company which increases its value. The speculation on the fact that the value of the
new altcoin will indeed increase is what attracts investors.

12. Initial public offering

Explanation: The holy grail of financing: the initial public offering (IPO)! An IPO is the
public listing of a company, which means that it is the first time a company offers its shares
to the general public (instead of to private individuals, investors or companies). This means
that
practically anyone in the world (individuals or institutional investors) can invest in the company
by buying shares at a certain value.

Before an IPO, a company is private, which means that it often only has a limited number of
investors that have invested early stage or growth capital. Think of the founders, angels and VC
firms for instance.

When to choose this source of financing: For an initial public offering to be successful, a
company must be able to demonstrate years of strong growth, and its proposition typically
includes a certain network effect/scalability. Growth can be defined in several ways. This can be
turnover or profit but also, for example, the number of customers or active users. For example,
Spotify has been a loss-making company for years, but has been growing enormously in terms
of turnover and users.

A company also has to demonstrate transparency and confidence that growth will continue in future
years because it has to win the trust of the general public that the

value of the shares (which are bought by the public during the IPO) will rise in the future so that
they can make a profit on their investment.

For the investors that owned a share in the company already before the IPO, a public listing canturn
out to be very attractive (financially). An IPO should not be underestimated though: it is a very
costly process and results in many reporting requirements toward the public, imposed by strict
government regulations.

24
13. Revenue based financing
Explanation: Revenue based financing is a funding mechanism in which an investor provides
financing to a startup and in return the investor will receive a percentage (e.g. between 2% -
5%) of the (future) revenues generated by the startup. The future revenue-based interest
payments are typically capped at two to three times the size of the initial funding amount.

Government Schemes to Support Entrepreneurship

Today, India boasts of being the third-largest startup ecosystem across the globe. The countryhas
over 100 unicorns and more than 60,000 startups operating within the territory. This success can
be partly attributed to the active support provided by the Indian government to startups and
entrepreneurs through its various schemes and programs. All of the
aforementioned programs were accompanied by various government schemes and resources to
provide financial assistance and working capital to startups. For instance, startups are eligible for
a variety of benefits under the Startup India Action Plan, including tax incentives and
exemptions, loans at reduced interest rates, skill development programs, prioritization of startups
in public procurement, etc. This article aims to cover few of the numerous schemes launched by
the Indian government.

1. ASPIRE

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship. This scheme
was introduced to set up a network of technology centers and incubation centers across India
with the objective to accelerate entrepreneurship and encouraging innovations for unmet social
needs in the agro-business industry. It provides financial aid for setting up livelihood business
incubators and/or technology business incubators, by way of one-time grant of 100% (hundred
percent) cost of plant & machinery (apart from land and infrastructure) or a sum up to INR 100
(Indian rupee hundred) lakhs, whichever is less.

In India, a large portion of the population is still dependent on agriculture for their livelihood
and a substantial number of Indians live in rural areas. As such, this scheme was launched with
the purpose of generating employment and establishing enterprises in the agriculture industry.
It provides knowledge to entrepreneurs for establishing their own businesses, to emerge as
employers, and to ensure their self- sustainability. This program intends to foster district-level
economic growth from the ground up.

25
2. Pradhan Mantri Mudra Yojana
Under this scheme, Micro Units Development and Refinance Agency Ltd. (“MUDRA”) is an
non- banking financial company which supports development of

micro enterprise sector in India. MUDRA provided refinance support to banks and/or
microfinance institution for lending to micro units who have loan requirement up to INR 10
(Indian rupee ten) lakhs. The loans have been divided into categories of Tarun, Kishore, and
Shishu, depending on the stage of development, funding needs and age of the business and the
amount of loan that can be availed by these businesses. There is no collateral security for these
assets and loans up to INR 10 (Indian rupee ten) lakhs can be provided to small businesses
which are non-corporate and non-farm micro or small enterprises. This loan is granted for a
variety of activities which provide income generation and employment creation. It is mostly
offered to street vendors, store owners, traders, and other service providers.

Additionally, working capital, travel vehicle, and working capital loans are offered. Thus, it is a
unique scheme that is devised to empower Indian entrepreneurs.

3. Support for International Patent Protection in Electronics and

Information Technology (SIP-EIT)
The SIP-EIT scheme was launched by the Department of Electronics and Information
Technology(“DeiTY”) with the aim of providing government funding to technology startups and
Micro Small and Medium Enterprises (“MSME”) in India for filing international patents. This
encourages
innovation, builds brand recognition, and recognizes the importance and potential of having
global intellectual property protection. The financial assistance is provided to the information
communication technologies and electronics sector. The eligible entities can apply for this
scheme at any stage of the international patent filing process. The reimbursement limit is set at either
50% (fifty percent) of the total expenses incurred during filing and processing of the
application, or INR 15 (Indian rupee fifteen) lakh for every invention, whichever is lesser.

4. Multiplier Grants Scheme (MGS)

This scheme was again launched by DeitY with the objective of encouraging industries to
collaborate with premier academic and government R&D institutions for the development of
packages and products. This would strengthen the link between industries and institutes,

26
accelerate the development of indigenous products and packages, and bridge the gap between
proof-of-concept and globalization. Under this scheme, if an industry supports the R&D of
products that are capable of commercialization, the government would provide funding up to
twice the amount provided by that industry. The grant amount for an individual industry is
restricted to

2 (two) crores per project and the preferred duration of each project is less than 2 (two) years.
For a consortium of industries, the granted limit is 4 (four) crores with the duration of 3 (three)
years.

5. Credit Guarantee Fund Trust for Micro and Small Enterprises

(CGTMSE)
To implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises (“MSE”), the
Ministry of MSME, the Government of India, and the Small Industries Development Bank of
India (“SIDBI”), established the Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE). This scheme strengthens the credit delivery system and facilitates flow of credit in
the MSE sector. It provides loans at highly subsidized rates and with zero collateral to startups,
small-scale industries, and micro-level businesses. The scheme covers fund and non-fund-based
credit facilities up to Rs. 200 lakhs for every eligible borrower and the funds are dispersed by
the SIDBI. The scheme is primarily for service or manufacturing businesses and the loan can be
availed in the form of a term loan or working capital.

6. Single Point Registration Scheme (SPRS)

SPRS is a developmental scheme managed by the National Small Industries Corporation (NSIC)
for supporting MSE. Undoubtedly, the Indian government is the single largest purchaser of a
large array of goods. The objective behind this scheme was to increase the number of purchases
from the small-scale sector. By opting for this scheme, NSIC registers the eligible MSEs for
participation in government purchases without any Earnest Money Deposit (EMD), which is the
money taken from bidders before they place any bid, as a security deposit for ensuring their
seriousness in the project. Thus, under SPRS, MSEs having an NSIC registration will be exempt
from paying the EMD. Further benefits include advantages in tender participation, free of cost
tender, and procurement from MSEs. As an additional benefit, 358 (three hundred and fifty-
eight) categories of goods are reserved for being purchased exclusively from the MSEs and the
government has also prescribed a minimum limit of 25% of the total yearly purchases made by
central ministries, departments, and public sector undertakings from MSEs only.

27
7. Extra Mural Research or Core Research Grant (CRG)
CRG was originally named Extramural Research funding scheme. It was launched more than four
decades ago, after the establishment of the Science and Engineering Research Board (“SERB”)
but continues to be one of the most relevant and useful schemes. The objective of CRG is to
help research labs, academic institutions and other R&D organizations carry out research in all
frontier fields of science and engineering. Thus, it encourages upcoming and eminent scientists for
an individual- centric competitive method of research funding.

High Risk and High Reward Research This scheme aims to support and invite new ideas and
proposals which carry the potential to have a broad impact in the domains of science and
technology. It lays emphasis on proposals that are new and risky, but if successful, can be highly
rewarding for the field of science. Such proposals may include theoretical and experimental
advances, challenges to existing hypotheses, scientific breakthroughs, an ‘out of the box’
solution for an important problem, or the formulation of a new hypothesis that brings about new
technologies. There is no prescribed budget limitation for these projects and the research grant
shall cover consumables, contingencies, equipment, and travelling costs apart from the overhead
grants. The funding is provided for 3 (three) years which may be extended to 5 (five) years in
exceptional cases.

8. Design Clinic Scheme

The Indian government has recognized the importance of innovation and design in the growth
of any brand and decided that every MSME and startup should build a design-centric approach
for fueling their startup. In order to encourage small businesses to experiment with new and
innovative designs for their goods, the Ministry of MSME established the Design Clinic
scheme to create a sustainable design eco system through ongoing training and skill
development.
Under this scheme, the government shall extend up to INR 60,000 (Indian rupee sixty thousand)
for attending seminars on design and up to INR 3.75 lakhs or 75% (seventy-five percent) of the
seminar’s cost, where the seminar is conducted by the startup or MSME. By virtue of this
program, it is expected that entrepreneurs and leaders would get an opportunity to learn about the
latest practices and trends pertaining to designs, network with other innovators and
designers, learn design theories and increase the local competitiveness of their products using
designs.

28
9. Zero Defect Zero Effect (ZED) scheme
This mission seeks to motivate manufacturers to create better products, have zero defects and high
quality, as the name suggests. It is a handholding scheme that provides an opportunity to MSMEs
to embrace world-class manufacturing processes, use new technology and consistently improve
their products. The scheme provides tools, technology as well as financial assistance to startups and
MSMEs for ensuring zero defects in their goods. ZED also offers a holistic
certification, assesses enterprises for ZED, and supports startups in climbing up the maturity
assessment model of the scheme.

The schemes discussed in this article serve a twofold purpose: they support and benefit the
existing startups and businesses while also inspiring and encouraging budding entrepreneurs,
students, and leaders from every domain to launch their own businesses and take another step
towards an Aatmanirbhar Bharat.

Entrepreneurship Trends in India 2023-2024

The pandemic has been a major driver. However, numerous market trends have also spurred this
growth in entrepreneurship, which will likely continue into 2023 and 2024.

Let’s take a look at the latest entrepreneurship trends to pay attention to over the next few years.

1. Working from home and hybrid work

Remote work was once seen as an option for a select few industries. The pandemic revealed that
many people could work successfully from home, especially those in IT-related businesses.

These days, lots of entrepreneurs work exclusively or mostly from home, as do many
entrepreneurial ventures with small workforces. This is a benefit for many startups. After all, it
eliminates a major expense by not having to pay for office space.

That being said, many organizations are trying to shift their employees back to the office. Not
every employee or business owner wants remote work as a long-term option. Nor is remote work
a suitable option for every kind of organization either.

This is why we will likely see most businesses embrace a hybrid work model. Employees and
contractors will retain the flexibility of working in a remote location. It will also encourage in-

29
person collaboration for more exploratory or hands-on work. Potentially providing the benefits of
both remote and in-person, while removing the drawbacks.

2. Mobile optimization
According to a study by Google, 50% of shopping apps installed on a smartphone are used at
least weekly. It’s also anticipated that global consumer mobile spending will reach $728 billion
by 2025.

Companies that want to succeed online need to begin or increase investment in mobile
optimization. The mobile version of their online stores must be easy to navigate. It should
reflect the capabilities of the desktop version, and ideally, work consistently between the two.

Just remember that being present and optimized for mobile is only one part of the overallequation.
You need to be optimized and consider user experience anywhere.

3. Increased diversity in the workforce

Diversity is increasing in the workforce like never before. No longer is the professional and
entrepreneurial sphere relegated to men, for example. Women make up a large proportion of
working-class professionals and even entrepreneurial leaders. In large part thanks to major
societal shifts.

Furthermore, many entrepreneurial companies employ diverse workforces of people from many
races, creeds, and religious faiths. This is a great thing, and it ties into profits at the same time.
Millennials are more likely to shop at places they know are appropriately diverse and dedicated to
social justice.

There is undeniably a revitalized focus on diversity, especially from the consumer perspective.
However, there’s still a struggle to make businesses and their respective hiring practices more
diverse as well. Businesses that truly embrace it will:

Develop more well-rounded teams.

Have a better chance of hiring the best employees. Ideally, help make the business landscape
truly diverse. But those that fain diversity or ignore it entirely in favor of outdated biases will
become left behind.

30
4. Niche market service
At the same time, many companies are specializing in offering increasingly niche market
services. Why? Simply put, lots of people want to be unique.

Therefore, companies are changing their brand identities, taglines, and even offering products to
provide niche, specialized things for their target audiences. You can even see this at fast-food
companies that claim that customers can order food “their way.”

Bespoke options are now the name of the game. Especially for e-Commerce businesses or
online markets such as Etsy. Simple things like adjusting your email marketing message with a
personalizing a greeting is just the baseline.

Having options to create a personalized product or even add a name or color can be incredibly
worthwhile. Consumers want something unique that most people will never get their hands on.

5. The rise of the gig economy

It’s no surprise that the gig economy has risen in tandem with all these other trends. The gig
economy relies on front-line or working-class employees. People constantly moving from gig to
gig, always chasing another payday and working for clients on a per-job basis.

Businesses like Uber and DoorDash have proven the profitability of this business model. One
where they technically don’t employ anyone but which connect independent contractors with
customers.

Whether this is a good thing is up for debate, of course. But there’s no denying the influence the
gig economy has had on the workforce. Freelance websites such as Upwork are just the start.
They now allow individuals with in-demand skills to advertise themselves, build brands, and
essentially run their own businesses.

As more and more workers feel empowered to pursue new endeavors, the need for gig
economy platforms will continue to grow. However, the expectations from those that leverage
them for work will also increase. There’s an increased willingness to step away from poor
working conditions. This means current and emerging gig- economy services will need to step
up in how they treat contract workers.

Start your business with confidence. Get started now with LivePlan

31
6. Long-term cash planning
More entrepreneurs are looking into long-term cash planning for their budgets. Rising inflation
alone is pushing entrepreneurs to ensure their cash remains solvent and stable. This includes
investing in long-term growth initiatives or commodities associated with your business. While it
may be an upfront cost, it encourages long- term stability and insures against rising expenses.

It’s similar to taking out a life insurance policy. Which requires individuals to pay more initially
but save money as they get older. To that end, lots of entrepreneurial companies are investing in
their employees, retirement packages, and so on. As a bonus, this is also ideal for attracting top
talent across industries.

7. Subscription-based businesses
Subscription-based businesses have exploded due to the pandemic. As lockdowns began in
2020, many people turned to these online purchases initially for safety. According to a recent study
by McKinsey, 49% of shoppers currently use a subscriptions service. However, the added
convenience is expected to continue stimulating continued growth.

With these businesses, clients rarely purchase or outright own the products or services they use.
However, they get constant management support, tech help, and other benefits by subscribing to
the ongoing oversight of a company. For items that they do own, they’re locked into a monthly
membership that may include exclusive items, discounts, etc.

These can be broken down into three types of subscriptions: replenishment, curation, and
access. It involves the likes of streaming services, SaaS companies, and more traditional physical
retail items like food, beauty, and apparel.

Adapting a subscription-based business model is a major focus for most established businesses
moving forward. Consistent revenue, better engagement and brand loyalty, and increased
customer value are all major benefits. However, it will take investing in excellent service and
online infrastructure to be truly effective.

32
8. Eco-friendly business practices and product
Millennials and younger shoppers are increasingly concerned with the health of the planet. They
tend to shop with brands that make a show of being eco-friendly or practice green product
manufacturing standards.

Entrepreneurs are paying attention to these business trends and are dedicated to reinventing their
companies to be more eco-friendly. That may require changes such as:

Auditing and adjusting business partnerships.

Investing in green initiatives for the office like solar panels or emission standards. Donating a
portion of profits to green initiatives and non-profits.

Providing incentives to employees for participating.

Keep in mind, that you don’t need to make all of these changes overnight. However, it’s worth
outlining how to integrate these practices into your business within the next five years. Consumers
are beginning to care more and eco-friendly practices are here to stay.

9. Social commerce
Social commerce is where a business sells products directly on social media, and it has risen into
an $89.4 billion market. Product or brand discovery, exploration, potentially engaging with
micro-influencers and finally purchasing. It’s all done on social media platforms.

It’s designed to remove friction with your customers and be present where they are most
engaged. However, there are often specific requirements to participate meaning you’ll need to
grow your social following. This may require you to focus more on social media as part of
your digital marketing strategy.

Thankfully, it’s an investment that will likely pay off. This market is expected to grow past $735
billion in sales by 2025. More and more people are using social for product research. Plus, if you
want to attract a younger audience—social media is the place to be.

If you’re not or barely using social, now is the time to start. You’ll likely be surprised by
how cost-effective it is and how well it integrates with other business operations.

33
10. Crypto acceptance
Cryptocurrency has evolved far beyond a short-term fad. Bitcoin and other crypto coins are now
incredibly popular thanks to the ease of selling and buying them. Now, more companies than
ever are accepting cryptocurrencies at their online stores.

This has several important benefits, including:

• The ability to accept money from anywhere in the world

• The ability to hold currencies that aren’t overseen by a national government or bank
system

• The ability to accept more customers at one’s online store.

Entrepreneurship ecosystem is booming in India

Reasons why the start-up ecosystem is booming

in

• India Emerging markets

The market is emerging in India due to the IT revolution and technological development. It is one
of the fastest-growing economies in the world because every niche product has the potential to
sell in the markets. Not only that, the income and purchasing power of people is increasing
steadily that made start-ups set up their facilities in India. Moreover, the youth
population is becoming high and many of them are below 25 years old. As a result, they want to
start a business or company with high ambitions. Some even work in leading multinational firms
to gain work experience and learning other things which prompt them to become successful
entrepreneurs.

• Increased political will and Government support

Various state governments in India encourage new entrepreneurs to launch a company or
business easily. They aim at building a strong ecosystem in Indian markets that is suitable for
start-ups. Furthermore, start-ups offer different types of jobs for engineering graduates and
others that will reduce the unemployment problem. Both central and state governments make
great efforts to support the growth of start-ups in India which will boost the economy.

34
• Technological innovations
Technologies are growing rapidly every day that reduced the cost of building digital products
and other things. As the number of internet users is increasing in India, people are well aware of
everything with ease. Moreover, R&D facilities in India allow new entrepreneurs to start their
companies in special economic zones to get more concessions. They even show ways to launch
the operations with the latest innovations in a better environment.

• Changing perception towards entrepreneurship

Most start-up owners in India are youths who have to put their ideas into practice and grab the
opportunities in the markets. They also have strong intrinsic motivations, problem-solving skills,
patience, and the desire to achieve goals in society. The founders of start-ups will plan
everything properly and take smart movements for the benefit of a company. Apart from that, they
know how to overcome risks and other problems after opening a company in India. The
successful stories of new companies such as Paytm, Zomato, Ola cabs, Oyo, Big Basket, and
Vedantu entirely changed the perception of entrepreneurship. Start-ups are earning more income
these days due to proper planning, allocation of funds,etc.

35
 Conclusion

To be successful a sustainable business practices often requires entrepreneurship and

innovation. This chapter provides an overview of entrepreneurship and innovation as it relates to
sustainable business. The discussion is most relevant to sustainable businesses focused on
offering new products and services in response to societal concerns. The importance of
entrepreneurship and innovation also applies to companies that change how they produce
products and services. The latter companies can use innovative practices and entrepreneurship to
establish their brand name and to be market leaders in doing things that create shared value for
society and their companies and also, over time, contribute to changes in practices in their
industry.

KEY TAKEAWAYS.
 Entrepreneurship and innovation are relevant in for-profit and non-profit ventures.
 Entrepreneurship can be viewed as recognizing change, pursuing opportunity, taking on
risk and responsibility, innovating, making better use of resources, creating new value
that is meaningful to customers, and doing it all over again and again.
 Being an entrepreneur requires taking on significant responsibility and comes with
significant challenges and potential rewards.
 Entrepreneurship is a mind-set, an attitude; it is taking a particular approach to doing
things.
 The motivations for becoming an entrepreneur are diverse and can include the potential
for financial reward, the pursuit of personal values and interests, and the interest in social
change.
 For innovation to be relevant for sustainable businesses, it has to be meaningful and
affect a large number of stakeholders.
 Successful entrepreneurship often requires creativity and innovation in addressing a new
opportunity or concern in a new way.

36