Indian Entrepreneurial Development

RIJO GRATIUS
School of Management Studies,
Cusat
Indian Entrepreneurial Development

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Course Objective
The Indian Entrepreneurial Development Course is designed to serve the students by
providing unique learning experiences. The course is based on artifacts, stories and
lives of Indian business traditions which shapes the young minds to create and amplify
that which is world class in India!

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From the faculty desk
The faculty through his core activities- research, teaching and training strive towards
facilitating thought leadership in the fields of business education by caring
environment and contributing to sustainable social transformation.

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The simplest way, I can facilitate the vision of Indian Entrepreneurship is Globalizing
the Indian Thought. It is a cause that I aspire towards.
Best Wishes,
RIJO GRATIUS
CONTENT
S.I
No. Title
Page
No.
1
Introduction to
Entrepreneurship
4

4
2 Advantage India
8
3
Effects of
Industrialization
11
4 Business Sectors
16
5
Pioneers in Indian
Entrepreneurship
18
6
9 steps to starting a
Business
30
7
Understand your
Market
32
8 Destination India
34
10 Reference
52

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Chapter 1
INTRODUCTION TO ENTREPREURSHIP

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Starting your own business can be an exciting and rewarding experience. It can offer
numerous advantages such as being your own boss, setting your own schedule and
making a living doing something you enjoy. But, becoming a successful entrepreneur
requires thorough planning, creativity and hard work.
Consider whether you have the following characteristics and skills commonly
associated with successful entrepreneurs:
1. Comfortable with taking risks: Being your own boss also means you’re the one
making tough decisions. Entrepreneurship involves uncertainty. Do you avoid
uncertainty in life at all costs? If yes, then entrepreneurship may not be the best fit
for you. Do you enjoy the thrill of taking calculated risks? Then read on.
2. Independent: Entrepreneurs have to make a lot of decisions on their own. If you
find you can trust your instincts — and you’re not afraid of rejection every now and
then — you could be on your way to being an entrepreneur.
3. Persuasive: You may have the greatest idea in the world, but if you cannot
persuade customers, employees and potential lenders or partners, you may find
entrepreneurship to be challenging. If you enjoy public speaking, engage new people
with ease and find you make compelling arguments grounded in facts, it’s likely
you’re poised to make your idea succeed.

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4. Able to negotiate: As a small business owner, you will need to negotiate
everything from leases to contract terms to rates. Polished negotiation skills will help
you save money and keep your business running smoothly.
5. Creative: Are you able to think of new ideas? Can you imagine new ways to
solve problems? Entrepreneurs must be able to think creatively. If you have insights
on how to take advantage of new opportunities, entrepreneurship may be a good fit.
6. Supported by others: Before you start a business, it’s important to have a strong
support system in place. You’ll be forced to make many important decisions,
especially in the first months of opening your business. If you do not have a support
network of people to help you, consider finding a business mentor. A business mentor
is someone who is experienced, successful and willing to provide advice and
guidance. Read the Steps to Finding a Mentor article for help on finding and working
with a mentor.
Still think you have what it takes to be an entrepreneur and start a new business?
Great! Now ask yourself these 20 questions to help ensure you’ve thought about the
right financial and business details.
20 Questions before Starting
So you’ve got what it takes to be an entrepreneur? Now, ask yourself these 20
questions to make sure you’re thinking about the right key business decisions:

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1. Why am I starting a business?
2. What kind of business do I want?
3. Who is my ideal customer?
4. What products or services will my business provide?
5. Am I prepared to spend the time and money needed to get my business started?
6. What differentiates my business idea and the products or services I will provide
from others in the market?
7. Where will my business be located?
8. How many employees will I need?
9. What types of suppliers do I need?
10. How much money do I need to get started?
11. Will I need to get a loan?
12. How soon will it take before my products or services are available?
13. How long do I have until I start making a profit?
14. Who is my competition?
15. How will I price my product compared to my competition?
16. How will I set up the legal structure of my business?
17. What taxes do I need to pay?
18. What kind of insurance do I need?
19. How will I manage my business?
20. How will I advertise my business?

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Chapter 2
ADVANTAGE INDIA

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- World’s largest democracy with 1.2 billion people
- Stable political environment and responsive administrative set up
- Well established judiciary to enforce rule of law
- Land of abundant natural resources and diverse climatic conditions
- Rapid economic growth
- Poised to outpace China’s by 2017-18 and become the large economy with 9-
10% growth over the next 20-25 years (Morgan Stanley)
- Investor friendly policies and incentive based schemes
- Second most attractive Foreign Direct Investment (FDI) location in the world
- Healthy macro-economic fundamentals
- India’s economy will grow fivefold in the next 20 years (McKinsey)
- Cost competencies: low labor cost
- Total labor force of nearly 530 million

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- Large pool of skilled manpower: strong knowledge base with significant English
speaking population
- Young country with a median age of 30 years by 2025: India’s economy will
benefit from this “demographic dividend”
- The proportion of population in the working age group (15-59 years) is likely
to increase from appropriately 58% in 2001 to more than 64% by 2021
- Huge untapped market potential
- The urban population of India will double from the 2011 census figure of 290
m to approximately 590 m by 2030 (McKinsey)
- Progressive simplification and rationalization of direct and indirect tax
structures
- Reduction in import tariffs
Economic Reforms in India

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India waited till July 1991 to integrate its economy with the world economy.
During the last years of the 1980’s and particularly in 1990-91, Indian economy
entered an unprecedented liquidity crisis. Instabilities in European economics and
the Gulf war lid to India, credit rating in international markets to fall considerably.
Due to heavy outflow of the deposits of NRI s from Indian banks, India was on the
verge of default on external payment liabilities. The situation called for drastic
economic reforms and India adapted liberalization.
Salient Features of Economic Reforms
-Large scale privatization of former public sectors and direct foreign investment in all
these sectors formed the main features of the economic reforms of liberalization era.
-Except agriculture and plantations, all sectors are today open for foreign
investments, with a cap up to 100%which includes roads, ports, air ports, and
telephone services and so on. Industrial licensing was removed along with location
restriction.
- Financial institutions saw more freedom with regards deciding the rate of interest
to be charged and fixing of interest rates or fixed deposits. The concept of PLR ((Prime
Lending Rate) has been introduced in bank borrowing. There is a free pricing of
shares, and more powers are given to the SEBI Banks can also approach capital
markets for raising funds.
-Import restriction and the rates of customs tariffs have been reduced over the last
few years. India signed the WTO Agreement in 1994, and has accepted the
commitment to liberalize its trade regime under this agreement.

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Chapter 3
EFFECT OF INDUSTRIALISATION

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The terms of production as well as employment the modern industrial development
of India was partly compared with the economic development of other industries or
more with India’s economic needs. It did not compensate for the displacement of the
indigenous handicrafts. From a period of the number of 1901- 1951 the number of
people it provided employment to fill from 10.3 million in 1901 to 8 million
in 1951 even though the population increased by nearly 40 percent. It had little
effect on the problems of poverty and back of livelihood.
The Indian Industrial development was concentrated only in a few regions and cities
of the country and large parts of the country remained underdeveloped.
An important social consequence of industrial development however was the birth
and growth of two new social classes in Indian society the Industrial capitalist class
and the modern working class. These two classes represented new technology a new
system of economic organization new social relations, new idea and a new outlook.
They were not weighted down by the burden of old tradition, customs and styles of
life and most importantly possessed an all India outlook. They were vitally interested
in the industrial development of the country and to a large exte nt reshaped the
country’s future post-independence.

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MAKERS OF MODERN INDIA
1 Syed Ahamed Khan 1817- 1898 The Muslim Modernist
2 Jatirao Phule
( 1827 -
1890) The Agrarian Radical
3 Tarabai Shinde 1850-1910 The Subaltern Feminist
4 Rabindranath Tagore 1861-1941 Rooted Cosmopolitan
5 Gopal Krishna Gokahale 1866-1915 The Liberal Reformer
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Mohandas Karamchand
Gandhi 1869-1948 The renewed Agendas
7 Mohamed Ali Jinah 1876-1948 The Muslim Separatist
8 C. Rajagopalachari 1878-1973 The Gandhian Liberal
9 E.V. Ramaswami 1879-1973 The Radical Reformer
10 Jawaharlal Nehru 1889- 1964 The multiple Agendas
11 Rammanoshar Lakia 1900-1969 The Hindu Supremacist
12 Verrier Elwin 1902-1964 The Defenderof the Tribals
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Kamala Devi
Chattopadhyay 1903-1988 The Socialist Feminist

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14 Jayaprakash Narayan 1907-1973 The Indegenous Socialist
15 Hamid Dalwari 1932- 1977 The last modernist
British policies and Attitude on Modern
Industries
The modern industries had to develop without government help and often in
operation to British policy. British manufactures looked upon Indian textile and other
industries as their rivals and put pressure on the government of India to actively
discourage industrial development in India and enforce a policy of free trade upon
their colony. The government invested little to ensure growth of Indian industries

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and wherever forced to grant of Indian industries .They discriminated against Indian
owned industries. The Indian owned industries such as cement, Iron and steel and
glass were denied protection or given inadequate protection
On the other hand, foreign dominated industries such as the match industry were
given the protection they desired. Moreover, British imports were given special
privileges under the system of imperial preferences even thought Indians protested
vehemently.
Commercialization of Agriculture
The commercialization of Indian agriculture spread from 1850-1947 and led to
substantially supporting progress of the country’s economy.
Commercialization came about through celebrate policy in the part of the British
traders there was building presence from British manufacturer industrialist and
merchant to acquire more and more of raw materials for the British industries . By
offering a higher fact of market price , the peasants were induced to substitute
commercial crops for food crops as the farmer were more profitable than the later.
Consequently the peasants shifted to industrial crops and in some districts, the
movement for commercial agriculture became so strong that the peasants stated
buying foodstuffs from mandis for their domestic needs. This led to a fall in the
production of food and consequently devastating famines. Farmers of their intensity
had occurred for the first time in the economic history of India and are historically
seen in the darkest period in the consciousness of the country.

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Commercial agriculture was also, to some extent the result of the mounting demands
of land revenue by the state and excessive rent by the landlords from the peasantry.
The process of commercial agriculture necessitated by the Industrial Revolution was
internalized by the development of machinery in India, after 1850. Railways linked
the interior of the county with ports and harbors urban marketing centers and thus
Indian agriculture began to produce for world markets. Large quantities of wheat from
Punjab, jute from Bengal and cotton from Bombay proceed in for export to England.
The same railways which carries commercial from the various parts of the country
brought back the foreign machine -manufactured products to India Thus railways
and link roads were instrumental in intensifying commercial agriculture.

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Chapter 4
BUSINESS SECTORS

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Commerce in India has an almost equal thrust on manufacture and service industries.
India’s economy includes a host of modern industries such as iron & steel, petroleum
, automobiles , aeronautical , FMCG , IT. It also covers a multitude of services such
as Tourism, BPO, IT software, Agriculture and Handicrafts . A variety of factors define
the nature and face of Indian economy. They are:-
 It is the world’s 4th largest economy is terms of purchasing power purity after
the US,
 China and Japan.
 It is the fastest growing economy among world’s democracies with an annual
growth annual growth rate of 9.2%.
 It has the world’s 2nd most competent pool of senior managers.
- It has the world’s largest source of engineers.
- India is one of only three countries that make supercomputers / the other two
are US and Japan.
 India is one of the six countries that launch satellites.
- The Indian pharmaceutical industry is the world’s second largest, considering
only the volume of pills produced.
 The Indian insurance industry is expected to reach US $ 60 billion in the next
four years. This means a phenomenal growth of 500 percent.
 India exports US $6 billion worth of garments.
- India’s gems and jeweler sector contributes to about 15 percent of India’s
merchandise exports.
 India is the largest diamond cutting and polishing centre in the world.

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 India is the second largest community of software developers, after the US.
 India is the world’s largest producer of silk, and among the top five producers
of sugar cotton, tea, coffee, spices, rubber, silk , and fish.
 100 of the Fortune 500 companies have R &D facilities in India.

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Chapter 5
PIONEERS IN INDIAN ENTREPRENEURSHIP

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1. VIKRAM AMBALAL SARABHAI
Father of the Indian space program Vikram Ambalal Sarabhai (V.A Sarabhai) was a
creative scientist, a forward thinking industrialist, an innovator, an educationist,
connoisseur of arts, an entrepreneur of social change, pioneering educator and
more.
A science aficionado since childhood, he obtained his trips in natural science at
Cambridge (UK) in 1940. He joined the Indian institute of science at Bangalore doing
research in cosmic rays which he completed as his PHD there at Cambridge.
One of vikram sarabhai’s greatest achievement was the establishment of the Indian
apace research organization (ISRO).He was strongly supported by Dr.Homi Jahangir
Bhabha, the just rocket launching station in Indiana Thumba near
Thiruvananthapuram. Dr. Sarabhai was instrumental in the launch of the satellite
Instructional Television Experiment (ISITE) during July 1975 - July 1976, a result of
which the first Indian satellite, Aryabhata, was put in orbit in 1975 from a Russian
Cosmo drome.

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Sarabhai was appointed chairman, Atomic Energy commoner in May 1961 after the
sudden death of Homi Bhabha. He simultaneously handled re responsibility as
Director and professor of cosmic Ray physics and as chairman of the Indian National
committee for space research programmer. He was the president of the Physics
section of the Indian science congress (1962) President of the General conference of
the International Atomic energy ( J A E A ) Venue (1970)Vice-President, Fourth UN
Conference in ‘Peaceful uses of Atomic Energy’ (1971)
He spearheaded developments of rockets and space technology which he aimed to
make useful for a wide range of social and economic development activities. Sarabhai
also forget new territories in the pharmaceutical industry on India by being the first
implemented Electronic Data processing and operation Research Techniques in the
Pharmaceutical Industry and making the industry self reliant.
Sarabhai was a great institution builder and among his multifarious credits consist
the achievement of establishing the Indian institute of management (I I M),
Ahmedabad, the Ahmedabad textile Management (ATIRA), The physical Research
laboratory (PRL), Ahmedabad and Vikram Sarabhai space Centre,
Thiruvananthapuram.
2. JEHANGIR RATANJI DADABHOY TATA

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The man for air Indian (1904-1993)
J R D Tata was a pioneer aviator, one of the frontline business men of India and
visionary for ahead of time.
In 1925, J.R.D Tata joined Tata and sons and in 1938 was elected chairman. For over
half a century, he guided the group to greater heights and newer ventures
encompassing software, steel, power generation, engineering and hotels, among
others.
With immense interest in flying, he became Indians first plot and who formed the Tata
Aviation services in 1932. In 1948, he launched Air India Internationalas India’s first
international airline and was appointed its chairman by the Indian government. He
seven in aviators also earned him the title of Honorary Air Commodore of Indian, the
Tony Jannus Award in 1979, and the prestigious Guggenheim medal for Aviator in
1988.

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Alongside building an empire, he advocated and worked towards building approach
encompassing social change ,crusading for critical issues such as women’s education
and spread of literacy. He pioneered the establishment of Asia’s first cancer Hospital.
The Tata Memorial Centre for Cancer Research and Treatment, Bombay in 1941. He
also founded the Tata Institute of Social Science, 1936 (TISS), The Tata Institute of
Fundamental Research, 1945 (TIFR) and the National Center for Performing Arts.
A peerless achiever, J.R.D Tata, was a recipient of the Bharat Ratna in 1992.He was
also awarded the Legion dehorner by the French Government in 1954 and the United
Nations.
3. GHANSHYAM DAS BIRLA
1894- 1983
Founder of the Birla Empire

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G.D. Birla was an outstanding architect of India’s Industrial growth. The
founding father of the Birla Empire he also established the Federation of Indian
chambers of Commerce and Industry (FICCI).
He migrated to Calcutta at the age of 16 and started a career as a jute broker
along with his brothers. It wasn’t long before his dent of hard work paid rich
dividends and on 1919 he set –up Birla Brothers Limited and thereafter a mill in
Gwalior. He established a cotton mill in Sabzi Mandi, Delhi followed by Keshoram
Cotton mills and Birla Jute Mills around 1920. By 1939 Birla were India’s 13th largest
managing agency firm.
Expansion was almost an unstoppable phenomenon with Gharshyam Das and
in the decade of the 30’s he set up sugar and paper mills, in the 40’s ventured into
the automobiles, insurance and air service industries. Post-Independence, he set
upon aluminum plant ‘Hindalco’ near Mirzapur, and the among decades continued to
see the Birla Brothers among the topmost industrial homes of India.
4.ARDESHIR BLIRJORJI GODREJ

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1868- 1936
The lock master
In the year 1897 a young man of 29 Ardesheri Blirjorji Godrej (Ardesheri
Godrej) set up a small factory at Lalbaug ( Mumbai) manufacturing locks
metaphorically , it symbolized firmly locking this small busmen to a process, which
eventually was to lead to the foundation in a flourishing business and a house hold
name – GODREJ.
Unwilling to trust the truth in a particular wise s lawyer in Zanzebar in 1894, he
preferred to give up the profession regardless of the consequences. Soon Ardeshir
found his calling in manufacturing. Deeply influenced by the nationalist Dadabhai
Naoroji , he believed that the struggle for freedom was both political and economic .
In the year 1897 Ardeshir plunged headlong into the production of ace quality
locks soon to be followed by manufacture of safer Around 1910, Ardeshir planned
a trip to England , France and Germany in order to study the lock and safe making
efforts of his competitors including hubb.
His experimental nature led to the introduction of the first vegetable oil soap in
the year 1918 that soon found patronage among Indian nationalist leaders. Later in
his life he turned his attention to farming and set up a ‘Godrej Farm’ near Nasik in

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Maharashtra as a colony for young unemployed Parsis , who by devoting themselves
to agriculture and allied industries including dairy farming and poultry breeding
would have a means of livelihood.
5. Dhirubhai
Ambani
1932-2002
---------Creator of Equity Culture-----
Dhirubhai Ambani , one of India’s most enterprising entrepreneurs, established
India’s largest private sector company Reliance India limited, the first Indian company
to feature in Forbes 500 list.
Dhirubhai started his entrepreneurial career by selling “BHAJIAS” to pilgrims in
Mount Girnar over the weekends.

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At the age of 16, after his matriculation Dhirubhai moved to Aden, Yemen where
he worked as a gas- station attendant, and a clerk in an oil company. He returned to
India in 1958 with Rs. 50,000 and set up a textile trading company, which soon
became India’s largest private sector company, Reliance India Ltd.
Assisted by his two sons, Mukesh and Anil, Dhirubhai Ambani diversified his
business into core specialization in petro chemicals with additional interests in
telecommunications , Information Technology , energy , power , retail, textiles ,
infrastructure services , capital markets and loges tics.
Dhirubhai Ambani is credited with shaping India’s equity culture, attracting
millions of retail investors in a market till then dominated by financial insulations.
With innovative instruments like the convertible debentures, Reliance quickly becomes
a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian
company to raise money in global markets, It high credit- taking in international
markets limited only by India sovereign rating.
Dhirubhai Ambani was named the Entrepreneur of the 20th century of FICCI.
6.SHANTHANU LAXMANRAO KIRLOSKAR

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1903-1994
The man behind the engineering industry
Shanthanu Laxmanrao Kirloskar(S.L Kirloskar) for short, ingenious businessman
and a man of unbending, principles successfully established a golden age for the
Indian engineering industry.
His father Laxmanarao Kirloskar was the founding father of the Kirloskar Group, a
venture that started off with a small bicycle business and emerged as one of India’s
flourishing business enterprises. S.L Kirloskar completed his Bachelors of Science in
Mechanical engineering from MIT, Massachusetts in the US, being among the just
batch of Indians to graduate from the reputed Institute with expansive vision he
created a business empire that enjoyed one of the highest growth rates in Indian
history. He skillfully steered the company from oil engines and electric motors to
machine tools and tractors to hotels and consultancy services. Soon, the humble
Company that began in 1988 in Belgaun as a tradi9ng term turned into a saga of 6300
crores. The Kirloskar Empire today comprises eight group companies and is
considered as the largest engineering conglomerate of the country.
A businessman of keen tactical abilities and perspicacious understanding of
business dynamics, S.L Kirloskar drove the group into export. He is also credited with

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developing manufacture of diesel engines indigenously as an import substitute in post
independence India.
7. MOHAN SINGH OBEROI
1898-2002
The Icon of Hospitality
Widely regarded as the father of 20th century Indian hospitality industry, Mohan
Singh Oberoi (M.S. Oberoi) was the vision behind The Oberoi Group, the country’s first
and best known International hospitality companies, with 35 luxury hotels in India,
Sri Lanka, Nepal, Egypt, Australia and Hungary.
M.S Oberoi started his career in 1922 in Hotel Cecil, Shimla as a clerk. From a
diligent worker he soon acquired his first hotel. In 1934, he acquired the Clark’s hotel
from his mentor and soon created a trajectory of acquisitions in Calcutta, Shimla ,
Delhi, Lahore, Murree, Rawalpindi and Peshwar that established him as the first Indian
to ran the largest and finest hotel chain.

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In 1959, the Oberoi group became the first group to start flight chartering
operations in India. In 1905,M.S Oberoi opened the first modern five star International
hotel in the country .The Oberoi international in Delhi his self-professed strident
commitment to quality, exemplar sense of aesthetics and personal experience of the
best in the world led 13 Oberoi hotels to become members of the leading hotels of
the world.
It was his foresight that led to the establishment of the Oberoi School of hotel
management in 1966, the first such institution in the country to be recognized by the
international Hotel Associates in Paris.
A man of remarkable achievements, he was elected to the Rajya Sabha twice in
1962 and 1972 and to the LokSabha in 1968. He was a recipient of numerous
prestigious national and international accolades. The most prestigious of them are
the admission to the “Hall of fames” by the American society of Travel agents (ASTA)
“Man of the word” by the International Hotel Associates (IHA) New York, “Order and
the Republic” –First Clan conferred by the president of Egypt. Honorary Doctorate and
business Administration by the International Management Centre, Buckingham UK,
the PHD CC, ‘Millennium’ award in 2000 and the Padma Bhushan’ award in 2001.
8. JAMNALAL BAJAJ

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1884-1942
Founder of Bajaj group
Jamnalal Bajaj , founder of the Bajaj group, one of the oldest Indian
Conglomerates was an industrialist, a philanthropist and Indian independence fighter
that India will always be proud of.
A healthy experience of trading in commodities under his foster father led
Jamnalal to successfully establish the Bajaj Group of industries in 1926.
Although, this would always be the biggest achievement Jamnalal life, beliefs and
personal was defined by his strong national consumers that found a voice through his
deep involvement with the Indian movement of Independence.
His political affinity and nationalism was defined by the sense of social responsibility
which he fulfilled by continuously stirring for the development of rural industries and
promoting. The cause of Harijan upliftment. He dug wells in his fields for their use
and hut temple to promote their assimilation into men stream among other relatives.
A socialist, rationalist and Industrialist leader, Jamnalal Bajaj has several
institutions in India named after him, including the prestigious Jamnalal Bajaj Institute

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of Management studies. He spent his last days attending to castle according to
Gandhiji’s advice but continued to impact his environment. He continued to study new
methods of cattle-rearing even organized. All India Goseva
Conference at Wardha inventing experts and delegates from all over the country.
9. THIRUKURUNGADI VENKA GARUSWAMY SUNDARAM
IYENGAR
1877-1955
Paved the way for the TVS Group
Thirukurungadi Venka Garaswamy Sundaam Iyengar (T.V.Sundaram Iyengar)
spearheaded the foundation of the automobile transport industry in South India. It is
through the visionary his service he started in Madurai in 1912, that he paved the way
for the genius of the T.V.S group.

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After dabbling with Jobs in Law terms, Indian railways and a bank, he started
the first ever rural bus service in Madurai. This bus service led to the establishing of
T.V Sundaram Iyengar and sons Limited in 1923.
A man with a never-say-die attitude Sundaram Iyengar relentlessly pursued
innovation and powered every initiative with the sheer dust of perseverance and hard
determination.
During the World War II, when Madras presidency met with petrol scarcely,
Sundaram Iyengar designed and produced the TVS Gas plant. He also established a
factory for rubber retreading, and two other concerns. Sundaram Motors Ltd., and the
Madras Auto Services Ltd., the largest distributors for general motors in the 1950s.
In 1954, he floated Sundaram Finance, a financial firm to facilitate finance of buses
and trucks. TVS group is currently the largest automobile electronic, finance and in IT
solutions and services.
The little bus service he started has metaphase into a network of buses and
truck under Southern Roadway and the Group he captained has expanded manifold,
becoming one of the most important chapter of Indian Industry.
10. Coimbatore Krishnarao Prahalad

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( 1941- 2010)
Prahalad’s ground breaking article ‘The end of corporate Imperialism’ won the
1998 McKinsey prize at the year’s best article. It paved the way for launching a global
movement towards private sector solution for global poverty. Hindustan lever and
Godrej came out with ultra small pouch of everything from shampoo to gutka to oil
to paste. Subsequently, retail revolution sparked.
His thought accelerated the process of inclusive growth. He always advocated
that we have to factor the pricing as an exchange of value than the cost of
manufacturing.
He is famous as the father of the concepts of core competency and BOP -
Bottom of the Pyramid.

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Indeed his 2004 book ‘The fortune at the balloon of the Pyramid. Eradicating
Poverty through profits, became New York Times bestseller and catapulted him to a
rack star among management thinker although he was already a strong business guru
by then.
In 2009, he was conferred Padma Bhushan ‘third in the hierarchy of civilian
award’ by the Government of India.
The late C.K. Prahalad was more than an academician; he was one of the foremost
business thinkers of our time. He was the Paul and Ruth Mc Gacken distinguished
University Professor of corporate strategy at the Ross School of Business, where he
taught for more than three decades.
He was elected as the most influential living management thinker in 2007 and 2009
by THINKER 50, compiled by the Times of London and Suntop media. During his long
career, he wrote 5 seminal
Book on strategy.
His 1987 book, ‘The Multinational Mission’ (co authored with Yves Doz) set
the framework for understanding global business. His book with Gary Hamel,
‘Competing for the future’ was widely accepted as the best busmen book of 1994.
First introduced the idea of ‘core competencies’. He coauthored (with Venkat
Ramaswamy) ‘The Future of competition’ in 2004. Business week described it as a
book ‘full of disruptive ideas’. Business week and strategy voted it as one of the best
business book of the year.

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Chapter 6
9 Steps to Starting a Business

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Starting a business involves planning, making key financial decisions and completing a series
of legal activities. These 10 easy steps can help you plan, prepare and manage your business.
Click on the links to learn more.
Step 1: Write a Business Plan
Use these tools and resources to create a business plan. This written guide will help you map
out how you will start and run your business successfully.
Step 2: Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a business plan and
securing financing, to expanding or relocating a business.
Step 3: Choose a Business Location
Get advice on how to select a customer-friendly location and comply with zoning laws.
Step 4: Finance Your Business
Find government backed loans, venture capital and research grants to help you get started.
Step 5: Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited
Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.
Step 6: Register a Business Name ("Doing Business As")
Register your business name with your state government.
Learn which tax identification number you'll need to obtain from the IRS and your state
revenue agency.
Step 7: Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers' compensation,
unemployment and disability insurance.
Step 8: Obtain Business Licenses and Permits

45
Get a list of federal, state and local licenses and permits required for your business.
Step 9: Understand Employer Responsibilities
Learn the legal steps you need to take to hire employees.
Chapter 7
UNDERSTAND YOUR MARKET

46
To run a successful business, you need to learn about your customers, your
competitors and your industry. Market research is the process of analyzing data to
help you understand which products and services are in demand, and how to be
competitive. Market research can also provide valuable insight to help you:
• Reduce business risks
• Spot current and upcoming problems in your industry
• Identify sales opportunities

47
How to Conduct Market Research
Before you start your business, understand the basics of market research by following
these steps:
1. Identify Official Government Sources of Market and Industry Data
The government offers a wealth of data and information about businesses, industries
and economic conditions that can aid in conducting market research. These sources
provide valuable information about your customers and competitors:
• Economic Indicators
• Employment Statistics
• Income and Earnings
2. Identify Additional Sources of Analysis
Trade groups, business magazines, academic institutions and other third parties
gather and analyze research data about business trends. Use Internet and database
searches to find information related to your location and industry.
3. Understand the International Marketplace
Today’s economy is a globalized marketplace, so it’s important to understand the
international factors that influence your business. These resources will help you to
research potential international markets for your products or services:

48
Chapter 8
Destination India

49
1 Andaman & Nicobar
Main Industry Features:
 Tourism
 Handicraft
 High value added agro product
 Fisheries
 Coir
 Hydro-carbon energy
 Shipping sectors including trans-shipment ports and
 Service industry

50
2 Andhra Pradesh
 Biotechnology
 Tourism
 Food and agro based industries and
 Information technology
3 Arunachal Pradesh
 Art and craft industries
 Tourism and
 Educational services

51
4 Assam
 IT, tourism
 Agro-horticulture & food processing sector
 Bamboo industries and
 Bio technology sector
5 Bihar
 Agro-based industries

52
 Sericulture
 Chemical industry
 Tourism
 Biotechnology
 Pharmaceutical, etc
6 Chattisgarh
 Processing of medical
 Aromatic and dye plants
 Automobile, auto components
 Spares and cycle industries
 Manufacturing of plant
 Machinery & engineering spares
 Pharmaceuticals, etc.

53
7 Delhi
 Computer software
 IT enabled services
 Electronics and high tech industries and
 Small scale industry
8 Goa
 Pharmaceuticals
 Drugs and biotech industries

54
 Food processing and agro based industries
 IT and ITES
 Eco-tourism/ heritage tourism/ adventure tourism/ event tourism/ medical tourism
and
 Entertainment industry
9 Gujarat
 Agro-based and food processing industry
 Chemical and allied industry
 Mineral based and allied industries
 Port related activities and
 Infrastructure and textile industry

55
10 Haryana
 Agro-based and food processing industry
 Electronics and information & communication technology
 Automotive components
 Handloom
 Hosiery
 Textile and garments manufacturing
 Export-oriented units
 Footwear
 Leather garments and
 Accessories.
11 Himachal Pradesh

56
 Units based directly on horticulture produce
 Mineral water bottling
 Automobile manufacturing units
 Cold storage units
 Electronic units
 Floriculture
 Handicrafts
 Precision industries, etc
12 Jammu and Kashmir
 Food processing
 Floriculture
 Sports goods industry, etc

57
13 Jharkhand
 Mining and mineral based industry
 Agro based industries
 Sericulture
 Engineering
 Auto components
 Tourism
 Ceramics
 Sports goods, etc.
14 Karnataka

58
 Informatics
 Computer software
 IT enabled services
 Telecom
 Auto and auto components
 Food processing
 Floriculture,
 Biotechnology
 Tourism
 Infrastructure projects, etc.
15 Kerala
 Mineral and Clay based products
 Agriculture and Horticulture Produce
 Traditional Industries
 Tourism, Auto Components
 Marine Products and Agro Processing industries

59
16 Madhya Pradesh
 Agro-processing industries
 Cement
 Textiles and apparels
 Tourism,
 Power,
 Education,
 Information technology, etc
17 Maharashtra
 Auto-industry

60
 Biotechnology
 Floriculture
 Food processing
 Textiles and
 Leather
18 Manipur
 Handicraft industries
 Sericulture, tourism
 Telecommunications
 Petrochemicals and
 Pharmaceuticals

61
19 Meghalaya
 Minerals based industries
 Horticulture and agro based industry
 Power generation
 Tourism
 Bio-technology- based units
 Electronics and information technology and
 Tissue culture and orchid units
20 Mizoram
 Bamboo and timber based industries
 Food processing
 Agro-horticulture sector

62
 Mines and minerals
 Handloom handicrafts,
 Tourism, etc
21 Nagaland
 Food processing industry
 Agro based industry
 Tourism
 Mineral based industry
 Pharmaceuticals, etc
22 Orissa

63
 Minerals and mineral based industries
 Agro and food processing industries
 Tourism
 Biotech
 Pharmaceuticals
 Handicrafts
 Handlooms
 Chemicals and fertilizers, etc
23 Pondicherry
 Information technology and software development
 Electronics agro processing
 Textiles
 Leather products
 Light engineering goods, etc

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24 Punjab
 Agriculture
 Dairy and poultry products
 Meat processing
 Leather industry
 Sports
 Goods
 Textiles
 Light engineering goods, etc
25 Rajasthan
 IT and ITES
 Biotechnology

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 Power sector
 Education
 Urban infrastructure
 Tourism
 Gems and jeweler, etc
26 Sikkim
 Eco-tourism
 Handicrafts and handlooms
 Floriculture
 Biotechnology, etc
27 Tamil Nadu

66
 Engineering
 Automobiles and components
 Software and ITES
 Biotechnology
 Healthcare
 Pharmaceuticals
 Tourism
 Textiles, etc
28 Tripura
 Natural gas
 Food processing
 Rubber
 Tea
 Handicraft
 Bamboo
 Handloom
 Tourism
 Information technology, etc

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29 Uttar Pradesh
 Power food processing
 Animal husbandry
 Engineering
 Horticulture, etc
30 Uttaranchal
 Hydropower

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 Floriculture
 Horticulture
 Agro-based and food processing industries
 Information and communication technology, etc
31 West Bengal
 Agri-business
 Tourism
 Metals
 Petrochemicals
 Leather
 Food processing, etc

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REFERENCE
1. Business Museum of IIM, Kozhikode

Indian Entrepreneurial Development

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