Module 2 – Types & Classification of Entrepreneurs

1) Types and Classification of Entrepreneurs

2) Intrapreneur
 Concept and Development of Intrapreneurship
3) Women Entrepreneur
 Concept
 Problems faced by Women Entrepreneurs
 Development of Women Entrepreneurs with reference to Self Help Group
4) Social entrepreneurship
 Concept
 Importance and Social responsibility of NGO’s.
5) Entrepreneurial development Program (EDP)
 Concept, Factors influencing EDP
 Option available to Entrepreneur (Ancillarisation, BPO, Franchise, M&A)
1. Types and Classification of Entrepreneurs
A - According to the Type of Business:
1. Business Entrepreneurs:
 Business Entrepreneurs is an individual who discovers an idea to start a business and then builds a
business to give birth to his idea.
 Business entrepreneurs are individuals and they are also called sole operators, who essentially work
alone.
2. Trading Entrepreneurs:
 Trading Entrepreneurs is an entrepreneur who undertakes trading activity i.e. buying and selling
manufactured goods. He does not undertake manufacturing activity.
 Trading entrepreneur is one who undertakes trading activities and is not concerned with the
manufacturing work.
 He identifies potential markets, stimulates demand for his product line and creates a desire and
interest among buyers to go in for his products.
3. Industrial Entrepreneurs:
 Industrial Entrepreneurs is an entrepreneur who undertakes manufacturing activities, industrial
entrepreneur is essentially a manufacturer who identifies the potential needs of customers and tailors
a product or service to meet the marketing needs.
4. Corporate Entrepreneurs:
 Corporate Entrepreneurs is a person who demonstrates his innovative skill in organizing and managing
a corporate undertaking.
 A corporate undertaking is a form of business organisation which is registered under some statute or
Act which gives it a separate legal entity.
 A corporate entrepreneur is thus an individual who plans, develops and manages a corporate body.
5. Agricultural Entrepreneurs:
 Agricultural Entrepreneurs are those entrepreneurs who undertake agricultural activities such as
raising and marketing of crops, fertilizers and other inputs of agriculture.
 They are motivated to raise agricultural productivity through mechanization, irrigation and application
of technologies for dry land agricultural products.
6. Retail Entrepreneurs:
 Trading entrepreneurs deal in wholesale market while retail entrepreneurs serve the individual and
organizational customers.
 In India, we have a huge network of small and big retail traders spread all over the country. They
provide wide choice to the customers. For example, medical shops, provision shop, vegetable and fruit
shops, etc.
7. Service Entrepreneurs:
 Service Entrepreneurs involve in service sector activities and provide services to the customers like
repair and maintenance, engineering workshop, beauty parlours, hotels, airlines, dry cleaning,
mechanic shops, etc.

B - According to the Use of Technology:

1. Technical Entrepreneur:
 A technical entrepreneur is essentially compared to a ‘craftsman’.
 He develops improved quality of goods because of his craftsmanship.
 He concentrates more on production then on marketing.
2. Non – technical Entrepreneur:
 Non – technical Entrepreneur are those who are not concerned with the technical aspects of the
product in which they deal.
 They are concerned only with developing alternative marketing and distribution strategies to promote
their business. Thus, they concentrate more on marketing aspects.
3. Professional Entrepreneurs:
 Professional Entrepreneurs is a person who is interested in establishing a business but does not have
interest in managing or operating it once it is established.
 A professional entrepreneur sells out the running business and starts another venture with the sales
proceeds. Such an entrepreneur is dynamic and he conceives new ideas to develop alternative
projects.

C- According to the Motivation:

1. Pure Entrepreneur:
 A Pure Entrepreneur is an individual who is motivated by psychological and economic rewards.
 They believe in their own performance. They are also known as personal achievers. For example,
Dhirubhai Ambani of Reliance Group.
2. Induced Entrepreneurs:
 Induced Entrepreneur is one who is induced to take up an entrepreneurial task due to the policy
measures of the government that provides assistance, incentives, concessions and necessary overhead
facilities to start a venture.
 Today, import restriction and allocation of quotas of production to small units have induced many
people to start a small-scale industry.
3. Motivated Entrepreneurs:
 Motivated Entrepreneurs are motivated by their desire to make use of their technical and professional
expertise and skills.
 New entrepreneurs are motivated by the desire for self-fulfillment.
 They come into being because of the possibility of making and marketing some new product for the
use of consumers.
4. Spontaneous Entrepreneurs:
 Spontaneous entrepreneurs start their own enterprise spontaneously.
 Their inner urge and inborn talent drive them to establish their own venture. They are natural
entrepreneurs. These entrepreneurs start their business by their natural talents.
D - According to the Stages of Development:
1. First Generation Entrepreneurs:
 He is the one who starts an industrial unit by means of his innovative skill.
 He is essentially an innovator, combining different technologies to produce a marketable product or
service. They do not have any family business background beforehand. They are, in fact, self-made
entrepreneurs.
2. Modern Entrepreneurs:
 He is one who undertakes those ventures which go well along with the changing demand in the
market. They undertake those ventures which suit the current /modern marketing needs.
3. Classical Entrepreneurs:
 He is one who undertakes those ventures the customers and marketing needs through the
development of a self-supporting venture.
 He is a stereo type entrepreneur whose aim is to maximize his economic returns at a level consistent
with the survival of the firm with or without an element of growth.
 These entrepreneurs are traditional and do not undertake any innovation.

E - According to Clearance Danhof:

1. Innovating Entrepreneurs:
 Innovating Entrepreneurs category of entrepreneurs is characterized by the smell of innovativeness.
 An innovating entrepreneur is one who introduces new goods, inaugurates new method of production,
discovers new market, new commodity, new service and recognizes the existing enterprise.
2. Imitative Entrepreneurs:
 Imitative Entrepreneurs are characterized by readiness to adopt successful innovations by
entrepreneurs. They imitate techniques and technology innovated by others. They copy and learn from
the innovating entrepreneurs.
3. Fabian Entrepreneurs:
 Fabian entrepreneurs are traditionally bounded. They would be cautious.
 They neither introduce new changes nor adopt new methods innovated by other entrepreneurs.
 They are shy and lazy. They are not much interested in risks.
 They try to follow the footsteps of their predecessors. They follow old customs, traditions, sentiments
etc. They are not adaptable to the changing environment.
4. Drone Entrepreneurs:
 Drone entrepreneurs are conservative or orthodox in outlook. They are those who refuse to adopt and
use opportunities to make changes in production.
 They would not change the method of production already introduced.
 They may even suffer losses but they are not ready to make changes in their existing production
methods. When their product loses marketability and their operations become uneconomical, they are
thrown out of market.
2. Concept of Intrapreneur
 An American management expert, Gifford Pinchot wrote his famous book Intrapreneruing in 1985 and
used the term ‘intrapreneurs’ to describe the persons who resigned from their well paid executive
positions to start/launch their own ventures.
 Gifford Pinchot suggested that well-established companies should learn to make use of the
entrepreneurial talents in the organisation.
 Intrapreneurs introduce new products, services and processes which enable the company to grow and
succeed in a changing environment.
 These persons are driven not by monetary gains but by a deep desire of personal achievement.
Therefore, companies should provide such people with adequate financial resources and the
autonomy necessary for the development and application of their ideas.
 Pinchot suggested the creation of a system which will provide selected executives a status within the
corporation/company similar to that of an entrepreneur in society. Such people are ‘intra-corporate
entrepreneurs’ or ‘intrapreneurs’.
 Intrapreneurship requires that managers inside the company should be encouraged to be
entrepreneurs within the firm rather than go outside.
 For an entrepreneur to survive in an organisation he/she needs to be sponsored and given adequate
freedom to implement his ideas, otherwise the entrepreneurial spark will die.
 The entrepreneur who starts his own business generally does so because he aspires to run his own
show and does not like taking orders from others.
 Thus, intrapreneurship can be defined as entrepreneurship within an existing business organisation.

Characteristics of an Intrapreneur:
1. Creates New Ventures: Giving birth to new businesses within the existing organizations is the typical
characteristic of an intrapreneur.
2. Innovates Products/Services: A tendency towards technological leadership, by way of continual
innovation of products/services is desirables on the part of an intrapreneur.
3. Innovates Processes: Under competitive environment, business processes need to be reinvented time
and again by the intrapreneur for better efficiency, productivity and quality.
4. Proactive: Intrapreneur attempt to lead rather than follow the competitors through their
proactiveness.
5. Risk-taking: Intrapreneurs have a risk-taking attitude with regard to investment decisions and strategic
actions under uncertainty situations.
6. Renews organisation: An intrapreneur is expected to transform the organizations through renewal of
key ideas on which they are built.
7. Competitively Aggressive: An intrapreneur has the tendency to directly and intensely challenge his
organisation’s competitors.
Characteristics or Elements of Intrapreneurial Environment:
1. Organisation operates on frontiers of technology:
Since research and development are key sources for successful new product ideas, the firm must
encourage and support new ideas, instead of discouraging them, as frequently occurs in firms that
require a rapid return on investment and a high sales volume.
2. Trial and Error encouraged:
Experimentation-trial and error-is encouraged. Successful new products or services usually do not
appear fully developed; instead they evolve.
3. No Opportunity Parameters:
An organisation must take sure that there are no initial opportunity parameters inhibiting creativity in
new product development.
4. Resources available and accessible:
The resources of the firm need to be available and easily accessible.
Often, insufficient funds are allocated not to creating something new but to solve problems that have
an immediate effect on short term profits.
5. Multi discipline team work approach:
There should be an open approach to participation by needed individuals regardless of their area.
Developing the needed teamwork for a new venture is complicated by the fact that a team member’s
promotion and overall career within the company are based on his/her job performance in the current
position and not on his/her contribution to the new venture being created.
6. Long and horizon:
If a company is not willing to invest money without a guarantee of return for 5 to 10 years, it should
not attempt to create an intrapreneurial environment.
7. Volunteer Program:
The spirit of intrapreneurship cannot be forced upon individuals. It must be on a volunteer basis.
There is a difference between corporate thinking and intrapreneurial thinking, with certain individuals
performing much better in regular corporate activities and others reform well in intrapreneurial
ventures.
Most managers in a company are not capable of being successful intrapreneurs.
8. Appropriate Reward System:
There should be an appropriate reward system. The intrapreneur needs to be appropriately rewarded
for all the energy, effort and risk taking spent in the creation of a new venture.
An equity position in the new venture is one of the best rewards for motivating and eliciting the
amount of activity and effort needed for success.
9. Support of top management:
The intrapreneurial activity must be wholeheartedly supported and embraced by top management,
both by their physical presence and by making sure that the personnel and the financial resources are
available.
Intrapreneurial Processes:
1. Top Management Support:
The first step in the intrapreneurial process is to secure a commitment to intrapreneurship in the
organisation by top, middle, lower levels of management.
2. Identification of Areas:
Ideas and general areas that top management are interested in supporting should be identified, along
with the amount of risk money that is available to develop the concept further.
3. Use technology:
A company needs to use technology to make itself more flexible. Large companies can use technology
to make themselves responsive and flexible like smaller firms.
4. Interested Managers to Train:
The organisation should be a group of interested managers who will train employees and share their
experiences.
The training sessions should be conducted one day per month for a specified period of time.
5. Getting closer to customers:
The organisation needs to develop ways to get close to its customers. This can be done by tapping the
database, hiring from smaller rivals and helping the retailer.
6. More Productive:
An organisation that wants to become more intrapreneurial must learn to be more productive with
fewer resources. Top-heavy organizations are out of date in today’s hypercompetitive environment.
The concept of “learn and mean” needs to exist if intrapreneurship is to prevail.
7. Strong Support Structure:
The organisation needs to establish a strong support structure for intrapreneurship.
Since intrapreneurial activities do not immediately affect the profitability in the short run, they can be
easily overlooked and may receive little funding and support.
8. Rewarding Performance:
The support must also involve tying the rewards to the performance of the intrapreneurial unit.
The encourages the team members to work harder and compete more effectively since they will
benefit directly from their efforts.
9. Evaluation System:
The organisation needs to implement an evaluation system that allows successful intrapreneurial units
to expand and unsuccessful ones be eliminated.
The organisation can establish constraints to ensure that this expansion does not run contrary to the
corporate mission statement.
Similarly, inefficient intrapreneurial venture units should not be allowed to exist just because of vested
interests.
Advantages of Intrapreneurship:
1) Employees individuals may have creative ideas but may not have resources to pursue with the idea, so
they can test innovative idea at the cost of organization.
2) Intrapreneurship promotes sharing and trust which ultimately results in spreading enthusiasm and
excitement to offers.
3) Encouraging employees to think creative and out of the box can give company’s access to rich idea
bank.
4) It is the best way to deal with competition and thrive in uncertain market conditions.
5) Big organizations have enough financial and non-financial resources which can be tapped by the
entrepreneur for the development of the organisation.
6) Intrapreneurship is prescribed as a way to avoid stagnation and decline.
7) Intrapreneurship can be beneficial, if one wants to learn business skills for future intrapreneurial
activity.
8) Intrapreneurship can lead to corporate cost reductions, competitive advantage, new features and
strategic thoughts and new profit centres within the corporations.

Disadvantages of Intrapreneurship:
1) Employees may feel extremely disappointed if they face failure while trying new ideas.
2) An organisation has to bear lot of risk in order to take up intrapreneurship.
3) The rewards to intrapreneurs are inadequate. Companies do not share profits, intrapreneurs just get
rewards in the form of bonus, which is not adequate.
4) Possible drain of company’s resources (time, labour, capital) if not managed properly.
5) The objectives of top executives may sometimes conflict with that of intrapreneurs.
6) Intrapreneurs frequently lag behind in climbing the corporate ladder.
7) Most of the intrapreneurs spend their major time on their pet projects which are not beneficial for the
company.

Example of Intrapreneurship
Future Group
In 2016, Kishore Biyani (Owner of Future Group – Big Bazaar Parent Company) identified nine
intrapreneurs who would run parts of Future Consumer’s business as if they owned it.
The nine entrepreneurs were chosen from 450 applications that were received for a campaign run within
the organization called “Ban Jao Biyani” in January 2016.
The nine intrapreneurs were given segments of the business to run as if they were to be their own
business. The segments such as dairy, oil, tea, bakery etc.
The strategic decisions of each segment will be made by the intrapreneurs. They will set their targets. They
will decide the markets they want to operate in. And they will decide on the product and marketing
strategies.
Biyani’s plan was to provide the intrapreneurs mentorship and also have the larger organization handle
the supply chain, logistics and retail network for manufacturing and distribution of these brands.
3. Women Entrepreneur
 Women entrepreneur may be defined as a woman or a group of women who initiate, organize and
operate a business enterprise.
 Women are expected to innovate, imitate or adopt a business activity to be called women
entrepreneurs.
 The term “women entrepreneurs” deals with that section of the female population who venture out
into industrial activities i.e. manufacturing, assembling, job works, repairs/servicing and other
businesses.
 In short, women entrepreneurs are those women who think of a business enterprise, initiate it,
organize it, operate it and undertake risks and uncertainty involved in business.
 The Government of India has defined women entrepreneurs based on participation in equity and
employment of a business enterprise. Accordingly a woman entrepreneur is defined as “an enterprise
owned and controlled by a woman having a minimum financial interest of 51% of the capital and
giving at least 51% of the employment generated in the enterprise to women”.
 However, this definition is subject to criticism mainly on the condition of employing more than 50%
women workers in the enterprises owned and run by the women.

Examples of Women Entrepreneurs:

 Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd.
 Ekta Kapoor, creative head of Balaji Telefilms
 Upasana Taku, Co-founder, Zaakpay (Online Payment Gateway in India)

Features of Women Entrepreneurs:

1) Attribute to work hard: Enterprising women have further ability to work hard. Hard work is needed to
build up an enterprise.
2) Ability and desire to take risk: The desire refers to the willingness to take risk and ability to the
proficiency in planning, making forecast, estimates and calculations. Profits are the reward of risk.
Enterprising women take risk but the risk is well calculated.
3) Value of Self-Fulfillment Over Money: Generally, women entrepreneurs are not driven by the desire to
make money. Self-fulfillment seems to be women entrepreneurs basic motivating force since women
have creative urge in them. Money is simply a way of keeping the enterprise running.
4) Sense of Responsibility: Women entrepreneur feel a deep sense of personal responsibility for the
outcomes of ventures they start.
5) Imagination: Women entrepreneurs have a good sense of imagination, fantasy and creativity. They
always remain innovative and thinking for the new.
6) High Level of Optimism: Women entrepreneurs generally succeed in their venture due to their
confidence in their ability and a high level of optimism.
7) Tolerance for ambiguity: Women entrepreneurs have a high degree of patience and tolerance for
ambiguous and risky situations. Most often they can operate in ever-changing environment.
Problems/Barriers of Women Entrepreneurs in India:
1 No Independence:
She is considered subordinate to male in all walks of life. The basic ingredients such as independence
and authority required for a successful entrepreneur are not adequate for women in India.
2 Low risk bearing capability:
Generally, women in India are confined to the four walls of the house. They are less educated and thus
economically backward. This reduces their risk bearing capability in running the enterprise.
3 Lack of Self-Confidence:
Certain women lack self-confidence in their own abilities which is partly due to cultural environment.
This is because of family’s reluctance to provide them funds for their venture.
4 Male dominated society:
An important barrier to the empowerment of women through enterprise is the male chauvinism.
Prevalent socio-cultural attitudes and beliefs are not conducive to the blossoming of women as
entrepreneurs. Male child is still preferred to a female child right from the birth.
5 Lack of family encouragement:
Very few women get encouragement from their family to start a business. In India, it is namely a
women’s duty to look after the children and other members of the family. Thus, family bonding spears
a little time for the woman to take up entrepreneurial activity.
6 Discrimination in upbringing:
Right from early childhood, girl child is taught not to be aggressive or independent. They are
discouraged to move out from the family and take up their business.
Conservative attitude of the family members makes the women weak and passive in their approach.
Decisions are taken for them by others.
7 Low mobility:
Women in general are less mobile due to social-cultural barriers.
The dual responsibility that women entrepreneurs have to cope up with is making a success of their
enterprise and looking after the home and cooking restricts their mobility.
8 Lack of education:
In India around 60% of women are still illiteracy is the root cause of socioeconomic problems.
Due to the lack of education and that too qualitative education, women are not aware of business,
technology and market knowledge.
9 Role Conflict:
Entrepreneurship needs a high level of commitment, devotion and dedication.
Women taking on the mantle of entrepreneurship suffer from stress and strain caused by role overload
and role conflict as they strive simultaneously to cope up with their multiple roles of being a mother,
wife, homemaker etc.
Remedies/Strategies to solve the problems of women entrepreneurs:
1) In banks and public financial institutions, special cells may be opened for providing easy finance to
women officers and women clerks. Further, finance may be provided at concessional interest rates.
2) Women entrepreneurs should be encouraged and assisted to set up co-operatives in order to
eliminate middlemen. These co-operatives will pool the inputs of women entrepreneurs and sell them
on remunerative prices.
3) Scarce and imported raw materials may be made available to women entrepreneurs on priority basis.
4) Steps may be taken to make family members aware of the potential of girls and their due role in
society. There must be change in the negative social attitudes towards women.
5) Honest and sincere attempts should be undertaken by the government and social organizations to
increase female literacy.
6) In rural areas, self-employment opportunities should be developed for helping woman.
7) Marketing facilities for the purpose of buying and selling both raw materials and finished goods should
be provided in easy reach.
8) Facilities for training and development should be made available to women entrepreneurs. Family
members do not like women to go to distant places for training. Therefore, mobile training centres
should be arranged.
9) Government should try to involve women entrepreneurs in decision making process meant for
entrepreneurship development.

Strategies For The Development Of Women Entrepreneurs:

1) Strong Will Power:
To overcome the resistance from husband and family members at the time of setting up of their
venture, prospective women entrepreneurs are advised to maintain their cool and persistently
convince them, without confronting them regarding the benefits of setting up of an enterprises.
The women requires to have a strong will power under the circumstances. The inflow of money will
eventually solve their problem.
2) Time Management:
Shouldering the dual responsibilities of an entrepreneur and a homemaker can be effectively
undertaken by a women entrepreneur through better time management.
The family members can also be involved in the business, which will help in sharing the burden of
entrepreneurial work.
3) Home – Based Business:
By operating her business from home, a woman can better coordinate her household and business
responsibilities.
4) Education and Confidence – building training:
Women must acquire education and go through confidence –building training to get rid of the
traditional feeling that they are inferior to men and are dependent on men.
5) Marketing Skills:
For marketing her products, a women entrepreneur must establish her credibility in terms of quality
and competitiveness of product or service.
She should acquire relevant techniques and skills to win customer’s loyalty. E – Commerce businesses
will also greatly help in this regard.
6) Effective And Efficient use of IT:
Effective and efficient use of information technology like the internet can help in assimilating
information about the variety, range, and quality of say competing products, and publicity and
marketing of products and services.
7) Organize Workshops and Seminars:
Workshop and seminars should be organized frequently for the officials of financial and support
agencies and for women entrepreneurs to make their relations more cordial.
8) Search non- formal finance sources:
Since complicated and lengthy procedures make it difficult to acquire loans from government financial
agencies and banks, it is suggested that women entrepreneurs search for non-formal sources of
finance like private financers, relatives, friends, and others.
9) Do away with Collateral Security:
Banks and financial institutions must maintain a minimum target of loan to be disbursed to women
entrepreneurs.
Collateral security should be dispensed with in the case of women entrepreneurs because many
women hardly have any property or other assets in their name to keep as guarantee.
10) Group Entrepreneurship:
It empowers women and provides the necessary confidence for entrepreneurship. Women’s
organizations, women’s co –operatives, and NGOs should be promoted to assist self – employment for
poor women.
Development of Women Entrepreneurs – With Reference To SHGS
Self Help Groups (SHGs)
 A self-help group (SHG) is a rural based financial intermediary.
 It is a group of 10 -20 members, usually local women. SHGs have been traditionally supported by NGOs
or by government agencies.
 Members of the group make small regular savings contributions over a few months to collect enough
capital which is then used for lending to the group members for any purpose.
 The loans are made in small amounts and this forms the basis of micro-finance. SHGs also encourage
members to use the loans to set up micro enterprises.
 A self –help group is a financial intermediary in the rural sector comprising of a group of like-minded
people especially women who come together to pool their small savings to a common fund and agree
to meet their emergency needs to mutual help basis.
 Self-help Group is a silent revolutionary concept that is taking place in the credit delivery system.
 Micro-finance through SHGs offers best form of credit for reaching the unreached and the under-
reached.
Under the SBLP, the following three different models have emerged:
a) Model I: SHGs promoted, guided and financed by banks.
b) Model II: SGHs promoted by NGOs/government agencies and financed by banks.
c) Model III: SHGs promoted by NGOs and financed by banks using NGOs/formal agencies or financial
intermediaries.
Model II has emerged as the most popular model under the SBLP programme, Commercial banks, co-
operative banks and the Regional Rural Banks (RRBs) have been actively participating in the SBLP.
Features of SHGs
1) The group consists of 10 to 20 local women.
2) The members of the group have similar socio-economic background.
3) Each SHG has its own written bye-laws regarding savings, rate of interest, repayment period, meetings
to be conducted, etc.
4) Each member has to deposit a small amount of savings regularly into the group fund.
5) Group leaders are elected by members and in rotation.
6) Inter-lending can be undertaken immediately even for small needs.
7) Once the group shows its performance maturity, it is linked to the local rural bank branch.
8) The group can apply to the bank for loans within 6 months of opening its bank account.
9) The group can take loans from the bank at a fixed rate of interest without any collateral securities.
10) The group then lends to its members with flexibility in the repayment schedules and the rate of
interest is decided by the group.
11) The group takes upon itself the responsibility of timely repayment to the bank, even if the members
default because of some emergency.
12) Decision-making by the group is always based on the principle of participatory decision-making.
13) Loans are made in small amounts and members are encouraged to use loan amounts for setting up
small or micro enterprises.

Need for SHGs:

1) To mobilize the resources of the individual members for their collective economic development.
2) To create a habit of savings.
3) To use local resources.
4) To assist the members financially at the time of need.
5) To develop entrepreneurship.
6) To identify problems, analyzing and funding solutions in the group.
7) To develop linkages with institutions of NGOs.
8) To help in the recovery of loans.
9) To build up teamwork.
10) To develop leadership qualities.
Functions of SHGs:
1) Meetings:
The group should meet regularly; ideally the meeting should be weekly or at least monthly.
They become closer if they meet regularly. This helps them to understand each other’s difficulties
better.
2) Compulsory Attendance:
Full attendance in all the group meetings will make it easy for the SHG to stabilize and start working to
the satisfaction of all.
Membership register, minutes register etc. are to be kept upto date by the group, by making the
entries regularly. It builds trust among the members.
3) Fixed Day for Meetings:
The group should have a fixed day or date for the meetings. This will help the members to plan in
advance their routine works.
4) Common Place:
The group should have a common place to conduct the meetings
5) Savings:
Savings should be deposited by all members in the meeting itself. No interest will be paid to the
members for their money with the group.
The members will not be encouraged to adjust their savings amount against their loan due to the
group.
6) Keeping of Accounts:
Simple and clear books for all transactions to be maintained.
If no member is able to maintain the books, the SHG may take outside help. All registers and account
books are written during the course of the meeting.
7) Resolution from the SHG:
The SHG has to pass a resolution in the group meeting, signed by all members, indicating their decision
to open SB A/c with the bank. This resolution is filed with the bank.
8) Authorization from the SHG:
The SHG should authorize at least 3 members, any 2 of whom, to jointly operate upon their account.
The resolution along with the filed in application form duly introduced by the promoter may be filed
with the bank branch.
9) Copy of the Rules and Regulations of the SHG:
This is not necessary. If the group has not formulated any such rules and regulations, loans are
sanctioned without them.
A savings bank account pass book is issued to the SHG. This should be in the name of SHG and not in
the name of any individual(s).
10) Conduct of Internal Lending by SHG:
After saving for a minimum period of 2 to 3 months, the common savings fund should be used by the
SHG for lending to its own members.
Importance of SHGs:
1) Improve Efficiency of the Credit System:
The SHG model has been promoted to improve the credit delivery system. It is expected to meet the
credit requirements of the poor that cannot be met through the formal banking system.
2) Channel of Financial Inclusion:
Usually, commercial banks are not very keen to lend money to the poor. In order to include the poor in
the credit delivery system, the government decided to launch the SHG-Bank Linkage Programme
(SBLP).
3) Resource Mobilization:
SHGs play a very important role in mobilizing savings of the poor, many of whom individually do not
make use of the banking system to save. Under the SBLP, as on March 2009, SHGs held total savings of
Rs. 5,545 crore with banks.
4) Promote Savings and Banking Habit:
A very large number of poor do not have access to banks. SHGs play a very important role in linking
them to the banking system by promoting savings habit in rural areas.
5) Improve the living conditions of the poor:
One of the major objectives of the SHG-Bank Linkage Programme is reduction of poverty.
It is assumed that investments made with the credit provided by SHGs would generate income and
contribute significantly to family earnings.
6) Women Empowerment:
SHGs have been successful in making a number of rural women economically, socially and politically
more empowered.
Studies have pointed out a positive relationship between SHG membership and women’s participation
in politics. Many SHG women members have participated in and won Panchayat elections.
7) Promote Socio-economic Justice:
SHGs are considered to be a unique system for promotion of socio-economic justice. SHGs help to
reduce poverty and thereby promote economic justice.
8) Community Actions:
Women in SHG can work together to address issues that affect not only their own members but others
in the larger community.
Case studies have shown that women in SHGs have been motivated to improving community services
including water supply, education, health care, veterinary care, village roads, trying to stop alcohol sale
and consumption, contributing finance and labour for new infrastructure and protecting natural
resources.
9) Livelihood Finance and Employment Generations:
The credit needs of SHG members vary from the introduction of new livelihoods to providing support
such as marketing efforts to procurement of raw materials.
SHGs are a very effective way of promoting entrepreneurship and generating self-employment in rural
areas. Small rural enterprises help in reducing the incidence of disguised and seasonal unemployment.
4. Social Entrepreneurship
Social entrepreneurship is the work of a social entrepreneur.
A social entrepreneur recognizes a social problem and use entrepreneurial principles to organize, create
and manage a venture to achieve social change (a social venture).
Whereas a business entrepreneur typically measures performance in profit and return, a social
entrepreneur focuses on creating social capital.
Thus, the main aim of social entrepreneurship is to further social and environmental goals.
A Social entrepreneur is an entrepreneur who works to increase social capital, often by founding
humanitarian organizations.
Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems.
They are risk takers with an attitude to travel the “Road Less Taken!”

Characteristics of Social Entrepreneurs:

1) Willing to Self-Correct:
Entrepreneur are not idealist as one might think, but pragmatist (practical individuals) who get the job
done by focusing on the goal, not a particular approach.
This allows them to admit that something is not working and then switch to a method that holds more
promise.
Admitting defeat on one road allows the social entrepreneur to search for other routes.
2) Willing to share credit:
Social entrepreneurs invariably credit others with the success of their missions. This provides a strong
bond with those who develop their organizations.
Pay may not be great, but satisfaction and recognition rank well for the people who work with and for
social entrepreneurs.
3) Willing to break free of established structures:
Most entrepreneurial organizations are started from scratch rather than within existing ones.
This allows for the necessary innovations and the ability to see beyond the orthodoxy of a particular
filed.
4) Willing to cross disciplinary boundaries:
The social entrepreneurs serve as “social alchemists”, gathering ideas, experience and resources from
different fields resulting in configurations that are new and many times, counterintuitive.
5) Willing to work quietly:
Most of the projects started by social entrepreneurs are not well known.
Some of these leaders work quietly for decades to achieve their goals. They work in small groups and do
not seek out publicity.
6) Have a strong ethical motivation:
Unlike other entrepreneurs, who seek to create market success, social entrepreneurs are driven by
their ethical visions.
Example of Social Entrepreneur
“Dr. Verghese Kurien”, Founder of the AMUL Dairy Project
 He has transformed the dairy industry through the production chain of milk, small producers,
consumer products and health benefits. Dr. Verghese Kurien: Born on 26th Nov. 1921, Dr. Kurien
devoted his entire life for the dairy development program.
 He is called “Father of the white revolution“ in India. He is credited with architecting operation flood-
the largest dairy development program in the world.
 He set up the Anand Model of co-operative development; he engineered the White Revolution in India
and made India the largest milk producer in the world.
 In 1965, then Prime Minister of India Lal Bahadur Shastri created The National Dairy Development
Board (NDDB) to replicate the program on the nationwide basis. Dr Kurien was appointed Chairman of
this Board because of his dedication for the cause.
 Kurien also set up Gujarat Co –op Milk Marketing Federation (GCMMF) in 1973 to sell the dairy
products.
 Today GCMMF sell the ‘Amul’ brand product not only in India but also overseas.

Difference between Business Entrepreneurship and Social Entrepreneurship

Business Entrepreneurship Social Entrepreneurship
(1) Motive
Their motive is profit. They identify Their motive is social impact. They identify
opportunities and exploit them for financial gain. opportunities to solve societal problems.
(2) Ultimate Desire
The ultimate desire is to add value to their They do not exploit opportunities to add value to
business enterprise and to increase their their own bank accounts but to add value to
personal self-worth. disadvantaged communities.
(3) Change Agent
They change the face of the business. They act change agents for the society by
creating sustainable solutions for the social
problems.
(4) Satisfaction
They feel satisfied by establishing a new business They feel satisfied by generating value in the
and /or creating a new market for their product. form of transformational change that benefits
disadvantaged people in the society.
(5) Offering
A business entrepreneur may create entirely a A social entrepreneur offers new solutions to
new industry. social problems and then implements them on a
large scale for the benefit of the humanity at
large.
(6) Value Creation
Profit is the gauge of value creation. Social impact is the gauge of value creation.
 Importance and Social Responsibility of NGO’s
 Non –Government Organizations (NGOs) also called Voluntary agencies have a long history of active
involvement in the promotion of human welfare and well-being.
 The tendency to help a poor, weak, old, sick, disabled, helpless, hungry, thirsty existed from ancient
times.
 This tendency of helping others or doing good to others by an individual or a group of benevolent
people has been considered a service to the God and a path to Moksha.
 NGOs today are involved in all areas, e.g. health, education, agriculture, rural development, poverty
alleviation programmes, adult education, environment awareness and development, women
empowerment, old age homes and other areas of benefit to old people, family planning, drug
addiction, rehabilitation, etc. Their programmes cover a diverse range of functions embracing human
welfare.
Meaning of NGO
An NGO is an independent, flexible, democratic, secular, non-profit people’s organisation working for
and/or assisting in the empowerment of economically and socially, marginalized groups.

Characteristics of an NGO:
1) It is the result of the voluntary effort, which though motivated by different factors, is spontaneous in
nature.
2) It is an organisation initiated and governed by its own members on democratic principles without
any external control.
3) It is registered under an appropriate Act to give a corporate status to a group of individuals so that
they get a legal personality and individual liability may give place to group liability.
4) It has definite aims and objects and a program in socio-economic development of these objectives.
5) It has considerable autonomy and flexible planning and management of its programmes and
services.
6) It plans and implements its own programmes through its own voluntary and paid workers.
7) It raises its funds from the community.
8) It maintains its accounts and is accountable to people and the government so far as it receives grant.

Types of NGOs:
1 Primary Level NGOs:
The NGOs who mobilize their own resources, operate at international level and execute developmental
activities themselves or through intermediate fall within this category. ACTIONAID, OXFAM, Christian
Children Fund etc. are prominent examples of the primary level NGOs in India.
2 Intermediate NGOs:
These NGOs procure funds from various agencies, impart training and conduct workshops for target
work force. SEWA and AWAKE are examples of intermediate NGOs.
3 Grass Root Level NGOs:
These NGOs are those who conduct field activities by establishing direct contact with the grass root
people (needy). Examples of such NGOs are RUDSETIS, ANARDE Foundation (Gujarat), Indian Institute of
Youth Welfare (IIYW) of Maharashtra etc.
Strengths of NGO’s:
1) The lean overhead and operating costs to reach the poor and needy.
2) Flexibility and responsiveness in operation to invent appropriate solution.
3) Nearness to client groups made them to be sensitive to community need.
4) Capacity for innovation and experimentation with new groups and untried development approach.
5) Act as a test bed and sound board for government policies and programmes.
Weaknesses of NGO’s:
1) Role conflict as to the traditional areas of operation and micro-entrepreneurship development.
2) Doubtful leadership and succession.
3) Anti-business philosophy, lack of programme integration due to lack of proper understanding of
entrepreneurship approach.
4) Absence of impact assessment because of self-righteousness, on the part of the leaders.
5) Not all NGOs are equipped and ready to take up this activity.

Importance | Functions | Roles of NGOs:

1 Development of infrastructure:
Community based organizations and co-operatives can acquire and develop land, construct housing,
provide infrastructure and operate and maintain infrastructure such as walls and public toilets and solid
waste collection services.
In many cases, they will need technical assistance or advice from governmental agencies or higher – level
NGOs.
2 Supporting innovation, demonstration and pilot projects:
NGOs have the advantage of selecting particular places for innovative projects and specify in advance
the length of time which they will be supporting the project – overcoming some of the shortcomings that
governments face in this respect.
NGOs can also be pilots for larger government projects by virtue of their ability to act more quickly than
the government bureaucracy.
3 Technical assistance and training:
Training institutions and NGOs can develop a technical assistance and training capacity and use this to
assist both CBOs and governments.
4 Research, maintaining and evaluation:
Innovative activities need to be carefully documented and shared – effectively participatory monitoring
would permit the sharing of results with the people themselves and the project staff.
5 Advocacy for and with the poor:
In some cases, NGOs become spokespersons or ombudsmen (authority) for the poor and attempt to
influence government policies and programmes on their behalf.
This may be done through a variety of means ranging from demonstration and pilot projects to
participation in public forums and the formulation of government policy and plans, to publicize research
results and case studies of the poor.
6 Facilitating communication:
NGOs use interpersonal methods of communication, and study the right entry points whereby they gain
the trust of the community they seek to benefit. They would also have a good idea of the feasibility of
the projects they take up.
7 Flexible
NGOs are flexible in adapting to local situations and responding to local needs and therefore able to
develop integrated projects and sectoral projects.
8 Good Rapport and Communication
NGOs enjoy good rapport with people and can render micro assistance to very poor people as they can
identify those who are in most in need and tailor assistance to their needs.
NGOs have ability to communicate at all levels, from the neighbourhood to the top levels of government.

Social Responsibility of NGOs:

1 Protecting environment:
NGOs play an important role in protecting the environment.
2 Enacting changes:
NGOs lobby corporate shareholders and regulatory and governmental bodies to enact meaningful
changes, in addition to defining, monitoring and legitimizing corporate codes of conduct.
3 Protecting human rights:
NGOs research and launch campaigns highlighting the labour rights violations and environmental
impacts or corporations.
4 Act as a representative:
NGOs are strongly associated with civil society and largely defined as acting in the public good. In
contrast to corporate modes of governance, NGOs are not beholden to shareholders. Many times, NGOs
act as self –elected representatives of particular issues, groups and actions.
5 Provides operational help:
Some NGOs have developed operational activities, where the feel that both private and public markets
have filed. Such NGOs have developed skills and expertise in providing certain goods and services to the
public.
6 Helps organizations:
NGOs have an important role to play in keeping development high on the political agenda, helping
companies address the needs of local communities in developing countries and surprising the CSR
practices of companies in the developing world.
5. Entrepreneurial Development Programme (EDP):
Meaning of EDP:
 Entrepreneurs are not necessarily born but they can be developed through education, training and
experience.
 Development of entrepreneurs means inculcating entrepreneurial skills required for setting up and
operating business units.
 Entrepreneurial development is an organized and an ongoing process. Its basic purpose is to motivate
persons for entrepreneurial career and to make them capable of perceiving and exploiting business
opportunities.
 EDP is primarily meant for developing first generation entrepreneurs who on their own account cannot
become successful entrepreneurs.
 The target groups for EDP are technical persons, ex-servicemen, business executives, women
entrepreneurs, backward caste entrepreneurs, rural entrepreneurs, and educated unemployed youth.
 Entrepreneurship Development Programme (EDP) may be defined as an action plan to create an
entrepreneur with achievement motivation, who can develop business, can take strategic decisions,
can cope successfully with the internal and external environment and can bear the risk of investment.
It is an entrepreneurial training programme.

Basic Features of EDPs:

1 Selection of entrepreneur: EDPs identify and carefully select person for entrepreneurial training.
2 Capabilities Entrepreneur: EDPs develop the required entrepreneurial capabilities for the trainees
for making them successful prospective entrepreneur.
3 Managerial skill: EDP’s equip the trainees with the basic managerial understanding and skills-
conceptual, analytical, human, administrative and technical skill.

Factors influencing EDP

A. Economic Factors:
1) Availability of economic resources: Entrepreneurs are encouraged to undertake more
entrepreneurial activities due to availability of adequate quantity of natural and physical resources.
2) Economic conditions: Economic conditions govern the enterprise ability to remain viable. Some of
the important factors which provide sufficient symptoms about the economic conditions are
inflation interest rates, unemployment, per capita income, exchange rates and consumer
purchasing power.
3) Economic policies: Economic policies determine the direction and volume of the business.
4) Labour policies: To a large extent, productivity of labour is governed by volume of production and
costs. Entrepreneurs will be motivated to undertake entrepreneurial activity, if they think that
labour policy is favourable.
5) Trade policy: The major objectives of trade policy are to ensure sufficient supply of goods and
services in the country and control the adverse balance of for enterprise expansion, if trade policy
formulated by the government, is going to increase the supply as per the demand available in the
market.
6) Tariff policy: Effective tariff policy provides a base for entrepreneurs to undertake more
entrepreneurial activities. High tariff rates affect demand level and margin available to the
entrepreneurs.
 7) Incentives: To encourage entrepreneurial activities in the country, incentives are needed. It
ensures a high at low risk, interest free loan, wealth tax exemption, and rebate for NRIs, tax
holiday, rebate to women entrepreneurs.
8) Subsidies: Under this scheme, government creates favourable environment by participating in
terms of economic assistance in economic activities already undertaken by the entrepreneurs.

B. Non-economic factors:
1) Social factors: A society which is rational in decision – making would be favourable to
entrepreneurial growth. In a rational society, decisions about use of resources and the production
process would be taken based on critical assessment of facts and on scientific standards.
2) Personality factors: In the less developed / developing countries, entrepreneur is viewed as an
exploiter. This greatly affects the entrepreneur’s personality. It is difficult for an entrepreneur to
work in a planned economy, as he has to adjust his attitudes and activities within the socio
–economic framework set by the state.
3) Psychological and Sociological: Psychological and sociological factors are not easily distinguishable
and can be analyzed together. Many entrepreneurial theorists have put forward theorize of
entrepreneurship that specially concentrate on psychological factors.
4) Technological factors: Countries with high level of technological growth also tend to have high
levels of entrepreneurial growth, since new technology offers people the opportunity to exploit
these opportunities for commercial benefit.
5) Educational factors: In highly educated societies, there are high levels of entrepreneurship and in
under educated countries. The distinct difference is the level of growth and success that
entrepreneurs experience.
6) Motivation: Motivation is an act of stimulating someone or oneself to get a desired course of
action, to push the right button to get the desired results.
Options Available to Entrepreneurs
1. Ancillarisation
An ancillary unit is defined as ‘Industrial undertakings having investment in fixed assets in plant and
machinery whether hold an ownership or on hire purchase not exceeding Rs. 100 lakhs and engaged in;
 Manufacture of parts and components, subassemblies, tooling or intermediaries, and
 Rendering of services and supplying or proposing to render or supply not less than 50 % of its
production or services as the case may be to one or more of the industrial undertakings for
production of other articles.
 Ancillary units can also take up subcontracting as a part of their business activity catering to a large
industrial undertaking.”
Major Benefits of Ancillarisation:
 Growth of employment,
 Growth of GDP
 Growth of entrepreneurship
Examples:
 Public sector undertakings under the guidelines of government procure items from ancillary units
and other SSI units.
 Private sector units manufacturing automobiles, diesel engines, pumps, textile machines, plastics,
machinery and other industrial equipment, machine tools etc. rely heavily on the supplier from their
ancillary and subcontracting units.
 Industries such as bicycle industry, sewing machines, machine tools, diesel engines, footwear,
readymade garments source in large measures the parts and components from ancillary units for
manufacturing end products and marketing under their own brand.

Advantages of Ancillarisation
 Minimizes investments of setting up of large units as the required production can be sourced at
lower rate with same quality through subcontracting from an ancillary unit.
 Dedicated ancillary units with just in time concept helps the large companies to bring down the
inventory level, hence saves a lot of money.
 Sourcing from an ancillary unit is normally economical as the units are located in proximity to the
company.
 Ancillary units also work along with the parent company in the process and product design and
development that is an immense help to the parent company.

Disadvantages of Ancillarisation:
 Delay in payments from the parent companies puts ancillary company in big trouble. Sometimes, if
the parent company is big, the ancillary company finds it difficult to take any legal action in case of
delayed payments.
 When the parent companies revise the specifications, ancillary units are sometimes not given the
expected support by the former for adopting the higher technology. Many times they are not given
sufficient time to bring the necessary changes in the technology to match that of the parent
technology.
  Sometimes, multiplication of suppliers by the parent company makes the ancillary units operate
below break-even point. As a result these units incur losses because of capacity underutilization.
 Public sector units insist on money deposits or security deposits from ancillary units even though
they are enlisted with NSIC (National Small Industry Corporations). Such practices put stress on the
financial capability of some of the ancillary units.

Example – Ancillary Units

 Indian auto ancillary industry accounts for almost 7% of India’s Gross Domestic Product (GDP) and
employs as many as 19 million people, both directly and indirectly.
 Indian auto ancillary industry exports grew by 16.7% to $10.2 bn in FY 14-15 from $9.7 bn in FY 13-
14

2. Franchising
 Franchising is one of the options for an entrepreneur to enter a business.
 It enables an entrepreneur to get into a business with minimum risks and also without much
knowledge and experience in business.
 It can also be used as an alternative strategy for an entrepreneur to expand his business.
 The term “Franchising” may be defined as “A form of contractual arrangement in which a franchisee (a
company) enters into an arrangement with franchisor (owner of the brand or producer) to sell the
producer’s goods/services for a specified fee/commission.”
 The person offering the franchise and is given the opportunity to enter a new business with a better
chance to succeed, than if he or she were to start a new business from scratch.
 There are two parties in Franchising – Franchisor (Provider/Owner of the Franchise) and Franchisee
(Pays Royalty and Operates the Franchise)
Features of Franchising:
 The franchiser owns a trade or a service mark and allows the franchisee to use it under a license.
 The franchisee pays for the license and becomes a part of the franchisers network. An initial payment
has to be made and then a regular license fee. There may be an agreement on the percentage of sales
or profit to be given monthly or annually by the franchisee to the franchiser.
 The franchiser Provides all marketing support and proper equipment and systems for doing business
in the required manner. Such company virtually sets up the business for the franchisee who is going to
manage it.
 There is a clause in the franchise agreement for the franchisee to follow franchiser’s policies regarding
modes of operation of business. The franchisee is also required to maintain a particular kind of decor in
the place of business.
 The franchiser many arrange for training for the personnel working in the franchisee organization. This
is very common in case of restaurants and fast food chains.
 Agreements and contracts are essential documents in franchising.
 Franchising is used in service business such as educational institutes, hotels and restaurants.
 In India, the franchising market is estimated to be around $24 billion.

Examples in India
• McDonalds
o Globally, McDonald's has more than 34,000 outlets in 118 countries. 80% of the outlets are
operated through the franchise route.
o In India, McDonald’s follows the franchising model.
o McDonald’s has two master franchisees in India:
1. Connaught Plaza Restaurants (CPRL) that covers the North & East India [Please note –
CPRL’s license was cancelled in August 2017. This has led to the shutdown of 169 stores in
North and East India]
2. Hardcastle Restaurants Pvt. Ltd. controls the outlets in the (West & Southern parts of India)
• Jubilant Food Works Ltd. has the franchisee for two international brands under its roof:
o Dominoes Pizza, the leading QSR (Quick Service Restaurants) in the country with close to 921
outlets across India
o Dunkin Donuts
• Devyani International is one of the franchisees for KFC and Pizza Hut, both under Yum Brands. KFC is
the second largest QSR in India with 379 outlets.

Franchising – Functions
1. Site Selection:
 When opening a new store, a franchisor will oversee the process whereas a franchisee will select
the site with approval.
 The rationale being that the franchisee has better knowledge about his city/area whereas the
franchisor is just concerned about the image of the location of his new outlet.
2. Design of the store:
 Franchisor provides the prototype design whereas the franchisee incurs the costs to procure the
equipment.
 This arrangement is done so as to maintain the same look and feel across all the franchisees.
 This is the reason that the kitchen for all McDonald’s outlets across India has the same equipment,
look and feel.
3. Employees:
 The franchisor provides training to the employees whereas the franchisee hires, supervises and
pays them.
 Training from the franchisor or his team is important in order to promote the culture and
mannerisms that the brand signifies.
4. Products Offered:
 The franchisor decides the products to be sold whereas the franchisee can only change them with
approval.
 This is a common practice across food based franchisees in India.
 Franchisees are well aware of the local tastes, thus international franchisors such as McDonald’s,
Pizza Hut and Subway have vegetarian offerings in their menu, customised for the Indian audience.
Some of them also offer tandoor-based dishes to suit the Indian taste palette.
5. Prices:
 The function of pricing is controlled by the franchisor.
 The franchisee merely follows the pricing agreed on. The rationale is to maintain uniformity in
prices across different franchisees. This also helps in maintaining the image of the brand.
6. Advertising:
 The franchisor determines the ad campaign at the national level.
 The franchisee adds local flavour to the campaign.
 For instance – when McDonald’s decided to promote burgers priced at Rs.20 across India, the local
ad campaign was developed around the theme of “aap ke zamaane mein baap ke zamaane ke
daam”. The TV advertisement features look-alikes of Dev Anand, Dharmendra, and Amitabh
Bachchan signifying that burgers are available at the rates offered in the 70s and 80s

3. Outsourcing
 OUTSOURCING is a practice used by many companies to cut down costs by transferring portions of
work to outside suppliers rather than working on it internally.
 In this approach one of the business processes is delegated to an external agency who manages that
process according to pre-defined measures of performance
 Outsourcing saves money, resources, and sometimes, a great deal of stress.
Importance of Outsourcing
 It lets the company Focus on Core Activities
 It helps in Cost Reduction
 Increases Business Opportunities
 Aids Operational Efficiency
 Helps Global Competitiveness
Types of Outsourcing:
1. Financial Services
 Big companies (such as Investment Banks) outsource several financial services, underwriting of
securities, merchant banking, registration of shares and depositories
2. Advertising Services
 An agency which is a service based business dedicated to creating, planning, and handling
advertising for its clients.
 Examples include: JWT, Ogilvy & Mather (O&M), Grey Digital, & Dentsu
3. Courier Services
 Private firms provide courier services for sending articles like books, documents and goods
 For Example: DTDC, BlueDart, FedEx, & Gati
4. Customer Support Services
 Business firms have to not only offer products to their customers but also offer them services after
the sale of products or services
 Example: Call Centres

Recent updates in the Indian Outsourcing Market.

1. Information Technology (IT) Outsourcing
 India is the world's largest sourcing destination for the information technology (IT) industry
 India accounts for 67 % of the $120 bn market.
 The industry employs about 10 million workforce
 Key Players include TCS, Infosys, Wipro, Tech Mahindra
2. Pharma Outsourcing
 Pharma outsourcing accounts for 75% of India's healthcare BPO market
 India is the 2nd largest destination after the US in the healthcare outsourcing space
 Drivers are Mature medical education system, large English-speaking population and low cost base
3. Recruitment outsourcing
 India’s recruitment process outsourcing (RPO) market is worth Rs 400 crore
 It is expected to grow by 40-50% per year. Key players include PeopleStrong, Manpower Group,
Quess Corp, Randstad & TeamLease Service.