Entrepreneurship – Concept, Functions, Need and Its relevance in Indian Society

Before the concept of entrepreneurship is explored, it is important to, first, understand the meaning of ‘entrepreneur’ and also know who can be an entrepreneur. An entrepreneur is someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced. An entrepreneur supplies risk capital as a risk taker and monitors and controls the business activities.

Table of Contents:

1. What Is an Entrepreneur? Definition and it’s Types

2. Entrepreneurship – Meaning, Nature and Concept

3. Explore 4 Types of Entrepreneurship

4. Functions of Entrepreneurship

5. Entrepreneurship Ecosystem and Funding Source

6. Entrepreneurship in Indian Society

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1. What Is an Entrepreneur? Definition and it’s Types

The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture. If one desires to be an entrepreneur, the given equation is what describes, what an entrepreneur actually is

Entrepreneur + Capital = Products + Customers = Business.

Let us now consider some definitions to understand who an entrepreneur is:

1. 1. According to Oxford Dictionary, an entrepreneur is “A person who sets up a business or businesses, taking on financial risks in the hope of profit”.
   2. According to the International Encyclopaedia, an entrepreneur is “An individual who bears the risk of operating a business in the face of uncertainty about the future conditions”.
   3. Schumpeter’s Definition – The entrepreneur, in an advanced economy is an individual who introduces something new in the economy – a method of production not yet tested by experience in the branch of manufacturing, a product with which consumers are not yet familiar, a new source of raw material or of new markets and the like”.
   4. Adam Smith’s definition – “The entrepreneur is an individual, who forms an organization for commercial purpose. She/he is a proprietary capitalist, a supplier of capital, and at the same time a manager who intervenes between the labour and the consumer. “Entrepreneur is an employer, master, merchant but explicitly considered as a capitalist”.
   5. Peter F. Drucker’s Views on Entrepreneurs – “An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different service”.

In the 20th century, the theorist Arthur H. Cole defined an entrepreneur as an ‘organization builder’.

1.1 The Origin and Evolution of ‘Entrepreneur’

The term entrepreneur is a French word, and is derived from the French word “enterprendre”. It means “to undertake”. It is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so.

Around 1700 A.D. the term was used for architects and contractors of public works. In many countries, the term entrepreneur is often associated with a person who starts his/her own new business.

1.2 Qualities and Characteristics of an Entrepreneur

Entrepreneurs have many of the same character traits as leaders, similar to the Great Man Theory of Leadership. Entrepreneurs possess several qualities, which according to Napoleon are 90 attributes. Some of those have been listed below.

*IQ- Intelligence Quotient, EQ -Emotional Quotient, SQ – Spiritual Quotient

An entrepreneur must possess a combination of all the three, in order to be successful.

However, there are some negative characteristics as well, some of which have also been listed below :

1.4 Types of Entrepreneurs

Depending upon the level of willingness to create innovative ideas, there can be the following types of entrepreneurs:

• • Innovative Entrepreneurs – These entrepreneurs have the ability to think of newer, better, and more economical ideas for business organisation and management. They are the business leaders and contributors to the economic development of a country. Inventions like the introduction of the small car ‘Nano’ by Ratan Tata, organised retailing by Kishore Biyani, and making mobile phones available to the common man by Anil Ambani are the works of innovative entrepreneurs.

• • Imitating Entrepreneurs – These entrepreneurs are people who follow the path shown by innovative entrepreneurs. They imitate innovative entrepreneurs because the environment in which they operate is such that it does not permit them to have creative and innovative ideas on their own. In our country also, a large number of such entrepreneurs are found in every field of business activity. The development of small shopping complexes is the work of imitating entrepreneurs. All the small car manufacturers now are imitating entrepreneurs.

• • Fabian Entrepreneurs – Fabian entrepreneurs are those individuals who do not show initiative in visualising and implementing new ideas and innovations. On the contrary, they like to wait for some development, which would motivate them to initiate unless there is an imminent threat to their very existence.

• • Drone Entrepreneurs – Drone entrepreneurs are those individuals who are satisfied with the existing mode and speed of business activity and show no inclination to gain market leadership. In other words, drone entrepreneurs are ‘die-hard conservatives’ and even ready to suffer the loss of business.

• • Social Entrepreneurs – Social entrepreneurs drive social innovation and transformation in various fields including education, health, human rights, workers’ rights, environment, and enterprise development. Dr. Mohammed Yunus of Bangladesh who started Gramin Bank is a case of social entrepreneur.

• • Agricultural Entrepreneur – The entrepreneurs who undertake agricultural pursuits are called Agricultural Entrepreneurs. They cover a wide spectrum of agricultural activities like cultivation, marketing of agricultural produce, irrigation, mechanization, and technology.

• • Trading Entrepreneur – As the name itself suggests, the trading entrepreneur undertakes the trading activities. He/she procures the finished products from the manufacturers and sells these to the customers directly or through a retailer. These serve as the middlemen as wholesalers, dealers, and retailers between the manufacturers and customers.

• • Manufacturing Entrepreneur – The manufacturing entrepreneurs manufacture products. They identify the needs of the customers and, then, explore the resources and technology to be used to manufacture the products to satisfy the customers’ needs.

• • Women Entrepreneurs – Women entrepreneurship is defined as the enterprises owned and controlled by a woman/women having a minimum financial stake of 51 per cent of the capital and giving at least 51 per cent of employment generated in the enterprises to women.

• • Inventors and Challenger Entrepreneurs – Inventor entrepreneurs with their competence and inventiveness invent new products. Their basic interest lies in research and innovative activities and Challenger entrepreneurs plunge into industry because of the challenges it presents. When one challenge seems to be met, they begin to look for new challenges.

• • Life-Timer Entrepreneurs – These entrepreneurs take business as an integral part of their life. Usually, family enterprises and businesses that mainly depend on the exercise of personal skill fall into this type/category of entrepreneurs.

2. Entrepreneurship – Meaning, Nature and Concept

After learning about the Entrepreneurs, in depth. Let us now understand the deep meaning of entrepreneurship. 

Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment to providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources. 

Also, it was generally recognized that entrepreneurs serve as agents of change, provide creative, innovative ideas for business enterprises, and help businesses grow and become profitable. 

Whatever the specific activity they engage in, entrepreneurs in the twenty-first century are considered the heroes of free enterprise. Many of them have used innovation and creativity to build huge enterprises. 

Entrepreneurship is now regarded as the “Pioneer ship” of business. The history of the early industrial development and trade and subsequent innovation in any country is largely the history of its entrepreneurs. 

It describes people with the pioneering spirit, intuition inspiration, and a willingness to work hard and take risks. They are energetic self-starters who make it their mission to meet business challenges, independently and are restless in working for someone else, for a salary.

In a nutshell, the concept of entrepreneurship can be understood as follows:

1. 1. Entrepreneurship involves decision-making, innovation, implementation, forecasting of the future, independency, and success.
   2. Entrepreneurship is a discipline with a knowledge base theory and is an outcome of complex socio-economic, psychological, technological, legal, and other factors.
   3. It is a dynamic and risky process.
   4. It involves a fusion of capital, technology, and human talent.
   5. Entrepreneurship is equally applicable to big and small businesses and to economic and non-economic activities.
   6. Different entrepreneurs might have some common traits but all of them will have some different and unique qualities.
   7. It is the purposeful and organized search for change, conducted after a systematic analysis of opportunities in the business environment.
   8. Entrepreneurship is a philosophy and is the way one thinks, one acts, and therefore it can exist in any situation, be it business or government or in the field of education, science, and technology.
   9. Entrepreneurship is a creative activity.
   10. It is the ability to create and build something from practically nothing.
   11. It is a knack of sensing opportunity where others see chaos and confusion.
   12. Entrepreneurship is the attitude of the mind to seek opportunities, take calculated risks, and derive benefits by setting up a venture.
   13. It is made up of activities to conceive, create, and run an enterprise.

To sum up, “Entrepreneurship is a dynamic process of vision, change and creation. It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include the willingness to take calculated risks in terms of time, equity, or career, the ability to formulate an effective venture team, the creative skill to organize needed resources, the fundamental skill of building a solid business plan, and, above all, the vision to recognize opportunity where others see chaos, contradiction, and confusion.’’

2.1 History of Entrepreneurship

The term “entrepreneurship” can be traced back to as early as the Middle Ages, when the “entrepreneur” was simply someone who carried out tasks, such as buildings and construction projects by applying all the resources at his disposal. However, it was during the 16th century when “business” was used as a common term, and the “entrepreneur’’ came into focus, as a person, who is responsible for undertaking a business venture.

Entrepreneurship as a term can be traced back to the economists of the 18th century, and it continued to attract the interest of economists in the 19th century. In the twentieth century, the word became synonymous with free enterprise and capitalism.

During the 20th century, within the last two decades, the concept of entrepreneurship has evolved from being a single individual to an entire organization or a corporation.

2.2 What Does Entrepreneurship Mean?

1. 1. According to Peter F. Drucker “Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation”.
   2. According to Ricardo Cantillon “Entrepreneurship entails bearing the risk of buying at a certain price and selling at uncertain prices.”
   3. In the words of Joseph A. Schumpeter “Entrepreneurship is any kind of innovative function that could have a bearing on the welfare of an entrepreneur.”
   4. According to Robert K. Lamb “Entrepreneurship is that form of social decision making performed by economic innovators.”
   5. As per A.H.Cole “Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services.”
   6. The concept of Entrepreneurship has also been defined as “a special skill or ability to mobilize the factors of production – Land, labour and capital and use them to produce new goods and services”.
   7. Entrepreneurship can also be described as a process of action, which an entrepreneur undertakes to establish his/her enterprise.

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3. Explore 4 Types of Entrepreneurship

1. 1. Small business entrepreneurship
   2. Scalable start-up entrepreneurship.
   3. Large companies or big business entrepreneurship.
   4. Social entrepreneurship.

Just like Entrepreneurs, Entrepreneurship has its meaning, Concept and nuances, each with distinct vision and goals that cater to different sectors, ambitions, and strategies in the business world. So, let’s understand each type in detail, with their unique features, the challenges they address, and the impact they have on the economy and society at large.

3.1 Small business entrepreneurship

Small business entrepreneurship is defined as an independent or solely owned company that is limited in size and revenue, depending on the industry. These companies primarily operate within a local community or region and focus on serving their nearby customers through personalized service and a deep understanding of the local market dynamics.

The best feature they have is to exhibit adaptability and their ability to respond quickly to local market shifts and customer preferences. One might not expect revolutionary innovations from these businesses but they brought up novel approaches within their niche or community.

Small businesses often struggle with the economy due to limited access to large audiences, making it challenging to scale their operations and increase their market approach compared to larger corporations or big brands within their niche. Also, there is a continuous threat of global economic fluctuations, which can significantly impact their stability and growth.

Small businesses create Social Stability, while they might not be major innovators, but they contribute to enhancing community well-being and a considerable percentage of job creation.

The best examples to understand this concept are Local bakeries, salons, single-location restaurants, local grocery shops etc.

3.2 Scalable Start-up Entrepreneurship

Scalable start-up entrepreneurship can be defined as a profitable business model that has the potential for significant growth and expansion, with innovative technology or a unique approach to a market need, allowing them to quickly scale and dominate sectors, often transforming or creating entirely new industries.

Unique, innovative products or services and advanced technology are their best features. These core values distinguished them in the market with new and improvised solutions. These innovations can range from revolutionary software to groundbreaking products, providing solutions that meet unaddressed needs.

It is often noticed that scalable startups need a substantial initial investment to develop their product and services, to manage rapid scaling, marketing, research and development, and to ensure that they have the infrastructure and resources ready to grow quickly and sustainably.

Having a highly skilled team with the right approach to drive innovation and technology which ensures to bring out problem-solving products or services is the biggest challenge they face during their initial stage. Along with this, dealing with multiple Regulatory and Legal Issues as they expand in different geographical markets can create complexities in their scalable business.

Scalable startups have the potential to disrupt existing markets by introducing lower prices and more choices for consumers. This directly benefits society by enhancing purchasing power and economic stability. As these startups grow, they create new jobs, contributing to economic growth and providing employment opportunities to the

3.3 Large Companies or Big Business Entrepreneurship

Large Companies or Big Business Entrepreneurship can be defined as a commercial entity that has substantial market influence, extensive resources, and operates in multiple locations. These entities have huge annual revenue and a large number of employees to undertake large-scale projects, influence market trends, and drive significant economic growth.

Large Companies usually have a global presence, operating across multiple countries, depending on the nature of their business. They emphasise on steady growth over a certain period of time rather than leading an overnight revolution.

Large companies are often at risk of disruption from newer, more innovative players that can move quickly to exploit emerging trends and technologies. The best example to understand this concept is how OYO Rooms, founded in 2013 shook up the hospitality industry and challenged major hotel chains like Taj, Oberoi, and ITC Hotels

On the other side, These Big Corporations often set new industry standards, pushing the envelope of what’s possible and encouraging industry-wide innovation contributing to a huge impact on society. Along with this, Large firms have the resources to address major societal challenges through their entrepreneurial projects. For example, they can invest in sustainable technologies or healthcare innovations that have far-reaching societal impacts.

3.4 Social Entrepreneurship

In the broad sense, social entrepreneurship refers to innovative activity with a social objective in either the ‘for-profit sector’, such as in social-purpose commercial ventures or in the ‘non-profit sector’, or across sectors, such as hybrid structural forms which blend for profit and non-profit approaches.

Under the narrow definition, Social Entrepreneurship refers to the phenomenon of applying business expertise and market-based skills in the non-profit sector, such as when non-profit organizations develop innovative approaches to earn income and reinvest that capital for the betterment of society.

They explore new ideas, to make an impact as a socially aware organization. Not only do they have an idea that must be implemented, but also they know how to implement it and are realistic in their vision of implementing it.

While traditional businesses often secure funding based on their innovative ideas and potential for profit, social enterprises must convince investors of the value of their social impact. Also,  scaling a social enterprise can be challenging as it does not have a sustainable profit outcome.

Social entrepreneurship plays a critical role in driving social change, offering new avenues for addressing social issues by combining innovation, resourcefulness, and opportunity to create solutions that are sustainable, impactful, and capable of scaling to benefit society at large.

The best example to understand this concept is Anshu Gupta, He founded the non-governmental organization Goonj which brings inequality between urban and rural region

4. Functions of Entrepreneurship

The various functions of entrepreneurship are Innovation and creativity, Risk-taking and achievement and organization and management, Catalyst of Economic Development, Overcoming Resistance to Change and Market Research. These have been depicted, at a glance, with the help of the given Figure and are being discussed, in brief, below.

• • Innovation and Creativity 

Innovation generally refers to changing processes or creating more effective processes, products, and ideas. For businesses, this could mean implementing new ideas, creating dynamic products, or improving your existing services. Creativity is defined as “the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems and communicating with others. Creativity and innovation have always been recognized as a sure path to success. Entrepreneurs think outside of the box and explore new areas for cost-effective business solutions.

• • Financial Risk taking and Achievement 

It is a process in which the entrepreneur establishes new job opportunities and firms, new Creative and growing organization which is associated with risk, new opportunities, and achievement. It results in introducing a new product or service to society. In general, entrepreneurs accept four types of risks namely Financial Risk, Job Risk, Social and Family Risk, and Mental and Health Risk, which are as follows:

1. 1. 1. Financial Risk – Most entrepreneurs begin by using their own savings and personal effects and if they fail, they have the fear of losing it. They take the risk of failure.
      2. Job Risk – Entrepreneurs, not only follow the ideas as working situations but also consider the current risks of giving up the job and starting a venture. Several entrepreneurs have a history of having a good job, but gave it up, as they thought that they were not cut out for a job.
      3. Social and Family Risk – The beginning of an entrepreneurial job needs a high energy which is time-consuming. Because of these undertakings, he/she may confront some social and family damages like family and marital problems resulting on account of absence from home and not being able to give adequate time to family.
      4. Mental Health Risk – Perhaps the biggest risk that an entrepreneur takes is, the risk of mental health. The risk of money, home, spouse, child, and friends could be adjusted but mental tensions, stress, anxiety, and other mental factors have many destructive influences because of the beginning and continuing of entrepreneurial activity. This can even lead to depression when faced with failure

• • Organization and Management 

The entrepreneurial organization is a simple organizational form that includes, one large operational unit, with one or a few individuals in top management. Entrepreneurial management means the skills necessary to successfully develop and manage a business enterprise. A small business start-up under an owner-manager is an example of an entrepreneurial organization. Here, the owner-manager generally maintains strict control over business operations. This includes directing the enterprise’s core management functions. According to Mintzberg, these include interpersonal roles, informational roles, and decision-making roles. The smaller the organization, the more concentrated these roles are in the hands of the owner-manager. The entrepreneurial organization is generally unstructured.

• • Market Research 

An entrepreneur is a practical dreamer and does a lot of groundwork before taking a leap in his/her ventures. In other words, an entrepreneur finalizes an idea only after considering a variety of options, analysing their strengths and weaknesses by applying analytical techniques, testing their applicability, supplementing them with empirical findings, and then choosing the best alternative. It is then that he/she applies the ideas in practice. The selection of an idea, thus, involves the application of research methodology.

• • Overcoming Resistance to Change 

New innovations are generally opposed by people because it makes them change their existing behaviour patterns. An entrepreneur always first tries new ideas at his/her level. It is only after the successful implementation of these ideas that an entrepreneur makes these ideas available to others for their benefit. His/her willpower, enthusiasm, and energy help him/her overcome society’s resistance to change.

• • Catalyst of Economic Development 

An entrepreneur plays an important role in accelerating the pace of economic development of a country, by discovering new uses of available resources and maximizing their utilization. Today, when India is a fast developing economy, the contribution of entrepreneurs has increased multiple-fold.

4.1 The Entrepreneurial Process: A Step-by-Step Guide

Entrepreneurship is the act and art of being an entrepreneur or one who undertakes innovations or introduces new things, finance, and business acumen in an effort to transform innovations into economic goods. 

The most obvious form of entrepreneurship is that of starting new businesses. In more recent times, the term entrepreneurship has been extended to include elements not necessarily related to business formation activity, but it also includes specific forms of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship.

Following are the steps involved in the entrepreneurial process. This entrepreneurial process is to be followed, again and again, whenever any new venture is taken up by an entrepreneur, therefore, it is an ever-ending process.

• • Market Research for a New Idea 

An entrepreneurial process begins with Market Research for a new Idea. Gathering, analyzing, and interpreting information about a market, including details about the target market, competition, and consumer preferences is a crucial factor before working a new innovative Idea. wherein the entrepreneur identifies and evaluates the business opportunities for him/her.

• • Outlining Business Model

The identification and evaluation of opportunities for a newly made Idea is a difficult task. Therefore, it is crucial to create a structure for a business model on how a company creates, delivers, and captures value. Once the Outlining is done, the next step is to evaluate it.

• • Detailed analysis of promising Idea 

An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain questions such as, whether the opportunity is worthy of investing, its attractiveness, proposed solutions feasibility, chances of competitive advantage, and various risks associated with it, etc. Above all, an entrepreneur must analyse his/her personal skills and capabilities to ensure realisation of entrepreneurial Goals.

• • Selection of the Most Promising Idea 

Once the analysis is done at both the macro and micro level, then the entrepreneur selects the best possible option amongst the chosen few, on the basis of the key factors identified by him/her before idea generation.

• • Assembling the Resource and Personnel 

The next step in the process is resourcing, wherein, the entrepreneur identifies the sources from where the finance and the human resource can be arranged. Here, the entrepreneur finds the investors for their new venture and the personnel to carry out the business activities.

• • Determining the size of unit 

On the basis of the ability to manage resources, the entrepreneur determines the initial size of the business and the possibilities of expansion.

• • Deciding the location of the Business and Planning Layout 

This is a significant decision. Entrepreneurs should ideally decide a location where there are Tax holidays and cheap labour and materials are available in abundance.

• • Sound Financial Planning 

Once the funds are raised and the employees are hired, the business location and layout have been finalized, then efforts are made to do sound financial planning with the available financial resources in order to put it to optimum use.

• • Launching the Enterprise 

Launching the enterprise by an entrepreneur can be a daunting adventure as the entrepreneur needs to stay focused and should always be open to suggestions. If he/she is a mission-driven entrepreneur, it must be remembered that building a truly great company is a marathon, not a sprint.

• • Managing the Company 

Once the funds are raised and the employees are hired, the next step is to initiate the business operations to achieve the set goals. First of all, an entrepreneur must decide the management structure or the hierarchy, which is required to solve the operational problems, as and when they arise.

• • Harvesting 

The final step in the entrepreneurial process is harvesting, wherein, an entrepreneur decides on the future prospects of the business, such as its growth and development. Here, the actual growth is compared against the planned growth and then the decision regarding the stability or the expansion of business operations is taken.

5. Entrepreneurship Ecosystem and Funding Source

Getting yourself interconnected with a network of various stakeholders(like, investors, institutions, service providers, and regulatory bodies) that support and give you crucial resources like access to capital, mentorship, market opportunities, and supportive policies can be a game changer for any business or entrepreneur.

5.1 Key Elements of a Successful Entrepreneurship Ecosystem

• • Investors and Financial Support

A new Business often requires financial support from industry leaders in order to scale their operations and market needs. Access to a source of capital that fuels the dream, is as important as innovation and execution. Moreover, Funding is not only required for product innovation and manufacturing. It also includes Hiring the best Talents, research and development, and expansion.

• • Networking and Collaboration

A strong build Network within their entrepreneurship ecosystem will definitely give a boost to find new markets and valuable resources. Also, It provides opportunities for collaboration, finding the right mentorship, and long-term partnerships. Building relationships with other entrepreneurs, may open doors for “Global Market Entry” and creating platforms to seize global opportunities

• • Policy and Regulations

Not only do Big institutions and investors play a big role in the entrepreneurship ecosystem, but Government bodies also contribute to attracting foreign players creating a robust ecosystem for businesses and entrepreneurs. They Introduce various Tax incentives and entrepreneurial-friendly policies for thriving entrepreneurship ecosystems, such as:

1. 1. 1. 1. Startup India Initiative
         2. Startup India Seed Fund Scheme
         3. Dairy Entrepreneurship Development Scheme (DEDS)

5.2 Funding Sources for Entrepreneurs

Entrepreneurship is as much about innovation and execution as it is about the capital that fuels the dream. Understanding the diverse funding sources available can significantly impact the success of an entrepreneurial venture. Now, Look into major avenues for funding that entrepreneurs can leverage:

• • Venture Capital

Venture capital firms are pivotal in providing substantial financial backing to scalable startups. They invest in businesses with high growth potential, offering not only capital but also strategic guidance to help startups scale rapidly.

• • Angel Investors

Angel investors typically offer capital to startups at earlier stages than venture capital firms. These individuals or groups provide funding in exchange for equity, often contributing their expertise and network to support the startup’s growth.

• • Government Schemes

The government has started several schemes to help budding startups and entrepreneurs grow businesses. DPIIT has created the Startup India Seed Fund Scheme (SISFS) where they provide INR 945 Crore to provide financial support to businesses for proof of concept, prototype development, product trials, market-entry, and commercialization.

6. Entrepreneurship in India: An Overview

In India, there is a peculiar Joint Family Structure, which has been a source of success for many Indian businesses. But that success has been possible due to Economic Liberalization in India. That success will continue, only if the reforms continue and if the risks that could derail the growth due to terrorism, political corruption, stalled reforms, and growth that focuses only on the urban rich, are tackled well by the Government.

1. 1. The Pre-1990 Period – For the old business houses, success had come from the close-knit joint family structure that fosters family values, teamwork, tenacity, and continuity. Under this structure, generations lived and worked together under one roof. Wealth from the businesses supported the joint family by providing a social safety net for members. In the structure, businesses and families were intertwined though they were also distinct entities with separate rules. Hence, the survival of the family became synonymous with the survival of the business. Prior to the decade of the 90s, Indian business success was a function of ambition, licenses, government contacts, and an understanding of the bureaucratic system. Decisions were based on connections, rather than the market or competition. During this era, entrepreneurship was subdued, capital was limited and India had very few success stories.
   2. The Post-1990 Period – In 1991, the Indian government liberalized the economy, thus changing the competitive landscape. Family businesses, which dominated Indian markets, then faced competition from multinationals, which boasted of superior technology, financial strength, and deeper managerial resources. Thus, Indian businesses had to change

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