3.2 typology of entrepreneurs

8/12/2019 3.2 Typology of Entrepreneurs

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Typologies of Entrepreneurship


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Various types of entrepreneurs in the society & theirrolesFirst & second generation entrepreneursGroup entrepreneursSerial entrepreneursMinority entrepreneursMicro entrepreneursLifestyleFoundationGazellesConclusions


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FIRST GENERATIONSet up their own enterpriseswithout having any business familybackgroundAdvantagesNew ideas, no family burden,technology/ knowledge relatedemerging fieldsDisadvantages

Lack of resources, heavy burden onindividual entrepreneur, more timerequired to convince stakeholdersExamples SIMSR alumniAmeesh Masurekar,Vikas Chauhan,Khamir Purohit ,Pankaj Gupta,Abhinav Tak & Avipsha Banerjee

SECOND GENERATION

Come from a business family andexpand the family businessAdvantagesResources, brand image & businesstraining DisadvantagesAversion to risk, fear of ruining

family nameExamplesKumar Mangalam Birla, Ratan Tata,


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Group entrepreneurship help people with sharedinterest to come together & start a venture.It helps in pulling the scarce resources & convincingthe major stakeholder such as investors, employees,etc.It also helps in decision making & designing

strategies for the organization.Very few success stories


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Started by seven semi literate Gujaratihousewives to create a sustainablelivelihood with a very tiny investmentof Rs. 80/-Based on cooperative systemExpanded to have more than 70branches in India and givingemployment to more than 50000women.Simple principles control overquality, advertisement & brandingcentrally & dispersion of production


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They are devoted to one venture at a time but ultimatelystarts many Romesh Wadhwani ,Sabir Bhatia & SamPitroda

Interested in variety of venturesMore emerging technology drivenAdvantages: knowledge/ experience of one industry can beused in another, brand image, resourcesDisadvantages: lack of focus, may lose interest easily


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People belonging to minority groups such as emigrants,minor ethnic groups, refugees, etc. have a strong drive tobecome entrepreneurs due to various reasons such as lack of jobs in organized sector, strong motive to prove themselves,

opportunities created for business due to interaction ofdifferent cultures, etc.E.g Jews in other countriesAdvantages: create new value in the economy, create placefor themselvesLimitation: may remain in the traditional areas


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Micro entrepreneurs are the owners of small business whomay be working as self employed or employing less than 5workers.Start with limited capital & mostly financed by informal

sources.Examples of micro entrepreneurs are owners of bakeries,beauty parlors, child care facilities, repair shops, arts andcrafts shops, painting businesses, contracting businesses,family-owned shops, etc.Advantages: create job opportunities, provide services atcompetitive prices, can be set up with minimum resourcesLimitations: strong constraints on growth, diversity, lowprofit margins, less negotiation capacity


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The motivations to become an entrepreneur can bedifferent.Education, family background, gender, individual

motivations, culture, socio-economic backgroundall play an important role in entrepreneurshipdevelopment.Proactive as well as reactive both the reasons playimportant role in becoming an entrepreneur.Different types of entrepreneurs play a differentrole in the economy.


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A woman enterprise is a small scale unitwhere one or more WE have not less than 51

% of financial holdings.WE is not only considered as a powerful toolas an income generation activity; but as a toolto foster self reliance, tap the potential andenhance the sense of achievement & selfesteem.

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Proactive reasonsRealizing ones potential.Carving out a niche for

self.Chasing a dream.Changing role of womenin professions.Being your own bossHigher returns

Reactive reasonsLack of professionaleducation.

Balancing home &career.Maternal duties.Flexible timings.Choice of work place.Forced decision due toeconomic demands.

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WE account for around 10 % of total 1.3m SSI & 9.1 mregistered SMS2001-02 census 10.6 lakhOnly 10 % registeredHighest number is Maharashtra & Gujarat & lowest inPunjabProportion higher in small towns as compared to metros60 % - SSI; 15 %- large scale & remaining cottage &micro enterprises

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Small in size (turnover, employees).Predominant in service sector.Low degree of technology.Related to traditional roles, interests and jobs done by women.Extension of knowledge, skills, abilities & behaviour which is partof womans role. Related to core business of the family.Mostly use internal sources of finance.Run through family.Family, social network play a major role.Perceived to be a secondary source of incomeLow mobility due to gender bias

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1.Entre Dev Prog (EDPs) organized by SISIs: 20% of EDPswill be for priority sector WE being one of them

2. Credit Guarantee fund scheme: credit guarantee coverwill be raised from 75% to 80%

3. Small Ind Cluster Dev Prog & Small Enterprise ClusterDev Prog: financial assistance up to 9 crs will beprovided for clusters developed exclusively for micro &

small enter operated or owned by WE

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4. Associations of WE will be assisted in establishingexhibition centres at central places

5. 50 % concession will be given in the fee charged towomen candidates in entre /mgt dev programmes

6. National Small industries Corp (NSIC): will assist WE toparticipate in exhibitions hold abroad for exportpromotion

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7. SIDO-Promotion of womens cell to providecoordination & assistance to WE facing specificproblems

8. SIDBI- Mahila Udyam Nidhi- equity capitalMahila Vikas Nidhi- dev assistance for pursuing incomegenerating activities, training for credit utilization

9. MCED- Maha Centre for Entre Dev- Training &promotion activities

10. Entre Deve institute (EDI)- training, research &promotion of entrepreneurship

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Association of WE of Karnataka (AWAKE): counseling &incubation services, training, infor dissemination,networkingAssociation of Lady entrepreneurs of Andhra Pradesh(ALEAP): guiding first generation WE, training,promotion of ind estates exclusively for WE, commonfacility centre, giving guarantee of loansThe marketing Org of Women Enterprises (MOOWES) arranging trade shows, industrial exhibitions

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Self Employed Womens Association (SEWA) -Gujarat:formation of cooperatives rag pickers, dairy, food ind;social security, health care, edu & training, bankingservices

Women Entrepreneurs Association (WEA):Tiruchirapalli- Subsidies to economically weaker sectionof women to set up enterprises, training in finance,marketing, technology, etcFederation of Indian Women Entrepreneurs (FIWE) N.Delhi- Promoting exhibitions, shows, coordination withgovt org

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SAARC Chamber of Women Entrepreneurs Council(SCWEC) Marketing access to WE, access to credit,setting craft village (Kathmandu), supporting trade of WE inSAARC countriesConfederation of Women Entrepreneurs (COWE)- A.P.-Dev of ind zone for WE, reservation of 10 % of land forwomen in SEZWomen Enterprise Promotion Association (WEPA) Chennai- Promotional activities, trainingBihar Mahila Udyog Sangh PatnaMahakoushal Association of Women Entetrpreneurs-Jabalpur

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Family tiesLack of educationMale dominated society Social barriers Problem of financeTough competitionLow risk-bearing capacityLimited mobility

Lack of entrepreneurial aptitudeLimited managerial ability Exploitation by middle menLack of self confidence

01-03-2014 21Group 2


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Increase in number of professional and skilled women.Increased growth in service sector.Booming economy.

Scope for customised products & services.Increase in recognition given to women entrepreneurs.Emphasis on women empowerment.Need of women to realise potential, aspirations andacknowledge their achievement

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Self Help Groups.Group Entrepreneurship.Role of Trusts & Associations.NetworkingMentoringIncubationVenture capital/ Angel

Entrepreneurship education at various levels

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Fema eEntrepreneur

CharacteristicsMotivation Accomplishment Of Goal, Do It Alone

Departure Point Job Frustration, Recognition Of Opportunity,Change In Personal Circumstance

Fund SourcesPersonal Assets/Savings, Personal Loans

OccupationalBackground

Experience, Mid-Management/AdministrativeExperience, Service Occupation

Personality Flexible/Tolerant, Goal-Oriented, Creative &Realistic, Self-Confident, Energetic, SocialBackground Age = 35-45, Father Self-Employed, CollegeEducated (Liberal Arts), Firstborn Child

Support Groups Friends, Spouse, Family, Womens Prof.Groups, Trade Associations

Business StartedService-Related


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Veena Deepak VividhaNisarg Fruits & vegetables exotic fruits &

vegetables B2BRevathy Roy - For She Cab service B 2 CJudy Kramer Mamma mia ( Bridge, R., Mybig idea) TheaterMeera Kulkarni Forest EssentialsVandana LuthraAnjali Mukerjee

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Women Entrepreneurs may be defined as thewomen or a group of women who initiate,organize and operate a business enterprise.

Government of India has defined womenentrepreneurs as an enterprise owned andcontrolled by a women having a minimum

financial interest of 51% of the capital andgiving at least 51% of employment generatedin the enterprise to women.

01-03-2014 26Group 2


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Anisha Singh

Pioneered group-buying e-commerce in India

Initial days: Shared office space in a dental clinic,struggled with her accent

Today: Leading Woman in Retail Award

Komal Talwar

Saw the opportunity of IP consulting in India

Initial days: Strong resistance from family

Today: Company has presence in 4 foreign countries,has fortune 500 clients, leading player in India

Winner of Tie Stree Shakti award 2011

Source: Tie Stree Shakti, Business Today

01-03-2014 27Group 2


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Kavitha Mukhi

Above 50 years old, pioneered Organicproduce farmers market in Mumbai

A nutritionist, she earlier founded Consciousfoods and expanded it, before selling it off

Farmersmarket.co.in

Shilpa Prasad and Neeta Varma

Founded Renttoys and pioneered renting ofbranded toys on a large scale

Both the founders were mothers of toddlers,when they embarked upon theirentrepreneurial journey

01-03-2014 28Group 2


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Textile toHealthcare

Luggage tomagazine

New Face01-03-2014 29Group 2


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CORPORATETURNED

01-03-2014 32Group 2


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Former CMO, Wipro IT Business and GlobalBrand Manager at Infosys Technologies Ltd

15 years in O&M, Infosys, Wipro and iGate.Founder of Paul Writer Strategic Advisory 2009 DecemberMarketing platform for B2B companies inearly stageTraditional and new media marketingchannelsExpert in globalization01-03-2014 33Group 2


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Regional Director, HP Software as a Service, AsiaPacific and Japan at Hewlett-Packard

Founder, CEO at VangalHelp marketer's optimize their campaigns &customer engagement programs.USP: lower their cost of customer acquisition,optimize advertising spend, increase theirprospect conversion and hyper-target andsegmenttheir customers.Social Software

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Direct & indirect financial support

Technological training and awardsFederations and associations

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Nationalized banksSmall Industries Development Bank of India (SIDBI)State Small Industrial Development Corporations(SSIDCs)Stree Shakti Package by SBIState finance corporationState industrial development corporationDifferential rate schemes

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Various training programmes byEntrepreneurship Development Instituteof India

Trade Related Entrepreneurship Assistanceand Development (TREAD)National Institute of Small Business

Extension Training (NSIBET)Womens University of Mumbai

01-03-2014 40Group 2


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National Alliance of Young Entrepreneurs (NAYE)India Council of Women Entrepreneurs, New DelhiSelf Employed Womens Association (SEWA) Association of Women Entrepreneurs of Karnataka

(AWEK)World Association of Women Entrepreneurs(WAWE)Associated Country Women of the World (ACWW)

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States No of UnitsRegistered

No. of WomenEntrepreneurs

Percentage

Tamil Nadu 9618 2930 30.36

Uttar Pradesh 7980 3180 39.84

Kerala 5487 2135 38.91

Punjab 4791 1618 33.77

Maharastra 4339 1394 32.12

Gujrat 3872 1538 39.72

Karnatka 3822 1026 26.84

Madhya Pradesh 2967 842 28.38

Other States & UTS 14576 4185 28.71

Total 57,452 18,848 32.8201-03-2014 42Group 2


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Chance Entrepreneurs Had time / to keep busy Was hobby / special interest Family / spouse had business

Forced Entrepreneurs

Money / needed the money To help family financiallyCreated or Pulled Entrepreneurs

Control over time, flexibility Challenge, try something on ones own Show others I could do it To be independent Self satisfaction Example to children

Employment to others / do something worthwhile01-03-2014 43Group 2


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3.2 typology of entrepreneurs

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