India ranks third on family-owned business list 

Source: TOI, 15 Sept 2018

India ranks third globally in terms of the number of family-owned-businesses with 111 companies having a total market capitalization of $893 billion. India closely follows China with 159 firms and the US with 121 firms, says a report.

According to the ‘Credit Suisse Family 1000 in 2018’ study, published by the Credit Suisse Research Institute(CSRI), in terms of a number of family-owned businesses within the non-japan Asian region, the list is dominated by China, India and Hong Kong. These three jurisdictions together account for around 65% of the non-Japan Asian section of CSRI’s database and have a combined market capitalization of $2.8 trillion (or 71%) of the market share.

Korea came in fourth place, with 43 companies($434-billion market capitalisation), followed by Indonesia, Malaysia, the Phillippines and Thailand, each with 26 companies, There port covered 11 markets in the non-Japan Asian region, which continue to dominate and represent a 53% share of the universe, with a total market capitalisation of over $4 trillion.

The report further noted that in 2017 alone, non-Japan-Asia- Based family-owned companies generated 25.6% greater cash flow return on investment (CFROI) than their non-family-owned counterparts, and delivered a 4.2% outperformance in annual average share price return since 2006.

Credit Suisse head analyst (thematic investments) and the report’s lead author Euge-ne Klerk said, “ This year, we find family-owned businesses are continuing to outperform their peers in every region, every sector, whatever their size. We believe this is down to the longer-term outlook of family-owned businesses relying less on external funding and investing  more in research and development.”

Indian family-owned companies generated a 13.9% annual average share price return since 2006, compared to 6% recorded by their non-family-owned peers, the report said. Further, out of the top 50 most profitable companies globally, 24 were from Asia, with a total market capitalization of $748 billion. The list included 12 Indian family-owned companies with a total market capitalization of $192 billion.

Additionally, in non-Japan Asia, more than 50% of the top 30 best-performing companies are from India, followed by one-third from China. Malaysia occupies third place with three companies, while Korea and Indonesia each have one, the report added.

EDII Ahmedabad launches entrepreneurship development programs for SC-ST Community under the National SC/ST Hub

India, a land of diversity is currently keeping up the pace with growth and prosperity. India as a nation has been witnessing the development in almost all areas. Nevertheless, all the sections of the society need to partake in this prosperity. The marginalized sections of the society also need to envision, create and scale-up ventures to be a major participant in this growth story.

With an aim to enable the socio-economic empowerment of the SC/ST communities, the Government of India has launched the National SC/ST Hub. It is an initiative for developing a supportive ecosystem towards SC/ST entrepreneurs.

In this regard, the Ministry of MSME is promoting a capacity-building program for Skill development of SC ST MSEs with a collaboration of training institutes. These training programs are offered free of cost to SC/ST candidates by the Ministry of MSME under this scheme.

Following the same objective, EDII Ahmedabad has launched six Entrepreneurship Development Programmes for SC-ST Community. Out of total six programmes, two programmes are residential at EDII, campus, and other four programmes are non-residential at a suitable location of Ahmedabad city. Presently EDII Ahmedabad is inviting applications from all over Gujarat. These programmes are specifically aimed for existing as well as aspiring entrepreneurs.

Programme Date: 22 October 2018 and 24 December 2018

Who can apply: Existing as well as aspiring entrepreneurs from SC-ST Community.

Age limit: 18 to 40 years.

Place: EDII Ahmedabad campus

For registration queries: Reach to 079-23969161/163 (Prakash Solanki)

You may reach via a Mail on psolanki@ediindia.org

Download the application form here: http://www.ediindia.org/Docs/14Sep2018012754AM.pdf

 

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Importance of rural entrepreneurship in the Indian economy

Economic development of any country largely depends upon the rural entrepreneurship. The growth and development of rural industries facilitate self-employment. It also helps in the maximum utilization of locally available raw materials and labor. Following are some of the roles that rural entrepreneurship plays to ensure the betterment of the society and the country in general at a larger level.

Employment generation: Rural industries play a significant role in employment generation in India with providing large-scale opportunities to laborers of rural areas. Unemployment in rural India can be tackled through rural industrialization.

Foreign exchange influx: We can attract more foreign exchange with the help of rural industrialization. Products that get produced in industries can be exported to other countries at a larger level thereby ensuring the better influx of foreign exchange in the country.

Entrepreneurial development: Entrepreneurial activities can largely take place in rural areas by young and promising entrepreneurs with an aim of the betterment of the society, improvement in livelihoods, creating resources of earning for rural people. It facilitates the development of rural areas.

Proper utilization of local resources: Rural industries help in the proper utilization of local resources like raw materials and labor for productive purposes and thus increases productivity. They can also mobilize rural savings which help in increase of rural funds.

Betterment of society: Rural industrialization can result in more employment generation thereby providing livelihoods resources to the plethora of people. It’s directly proportional to the betterment of society. It creates jobs while securing earnings. Development of an individual in rural areas could impact to the growth of the economy at the same time.

Migration: Migration issue can be sorted out largely by providing employment and earning opportunities to the people of rural India. Issues occurred by migration of masses would be nullified once the rural industrialization takes place in rural areas of India. In recent times, rapid migration has caused the imbalance in the society at a notable scale. This way it can be helpful to check the migration and help the economic development at a significant level.

This way rural entrepreneurship could boost the Indian economy and help it sustain in years to come in an effective manner. It can surely bolster the Indian market to rank among few other developed countries in the top level.

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Startups Trends to look out for in future

Amid the tough competition in the market to stand out differently from competitors, startups are in the race to update themselves with latest trends that can lay the foundation of their success and make them stand out in the market. While 2017 has witnessed 57 startups becoming unicorns, the year 2018 is full of AI, IOT, and blockchain technology. It can impact largely on the market.

Since the year 2018 has been keeping its pace with current trends; here are some of the trends in the startup world that can revolutionize the entire market scenario.

Internet of things: Internet of things is something to look out for in years to come. Interestingly, 20 billion devices are currently connected to the internet. Hence, IoT will become the backbone of the customer value and the IoT infrastructure will shift to an edge to provide cloud intelligence.

Workplace: The physical workspace as we know it today is going to significantly change next year as businesses start to get smart about how they use space to drive productivity and adapt to new employee behaviors and tech tools.

Economical change: Digitization and the sharing economy will disrupt more industries. Already, retail (Amazon), automotive (Uber), and the server market (Google, Amazon) have been disrupted – and we have had two years without another major industry being disrupted.

Marketing: Marketing would be the next big thing in the market with the rapid expansion of technology. An ever-growing demand for a new update in the technology, marketing would play a vital role in deciding the future of the company.

Virtual reality: Virtual reality has dominated the digital marketplace, raising expectations among consumers and investors. With virtual reality’s growth across industries, the developing technology’s impact continues to take shape. For the world’s brightest tech start-ups, leveraging the latest advancements in VR offers massive opportunity for cross-industry growth.

So these are the some of the trends start-ups should look out for ensuring massive success in their business while standing out from their competitors in the cut-throat competition.

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Challenges faced by entrepreneurs in the competitive business world

It takes sweat, dedication, and commitment to be an entrepreneur; you have to be competent enough to sail through all the hardships starting from having an idea, implementing it, seeking advice, hiring, money management, business strategy etc. In short, entrepreneurs face many challenges in today’s ultra-competitive business world. Though it could be stressful to tackle all the challenges in an efficient manner, they already have more resources to sail through all the challenges amid the widespread competition. Here we have listed out some of the challenges that entrepreneurs have to go through to operate an efficient and successful business.

Time management: For every new entrant in the market of start-ups, time management can be the biggest problems ever faced. They always have to tackle all sorts of tasks in a timely manner to accomplish the objectives. It could be stressful to implement time management in an effective manner.

Cash flow: From paying everything from your employees or contractors to your mortgage to your grocery bill, cash flow is essential to small business survival, yet many entrepreneurs struggle to pay the bills while they are waiting for checks to arrive. Hence, it becomes crucial to managing cash flow timely to run a successful business.

Team Building: It’s the most challenging task if you’ve never run or managed a team before. It seems daunting to select a right people to fit in the role. Not only you’ve to find the candidates who’ll handle the role but also have to consider the other factors like their cost to the business, their culture fit and how they’d work as a team.

Recruitment: The hiring process can take several days of your time: reviewing resumes, sitting through interviews, sifting through so many unqualified candidates to find the diamonds in the rough. Then, you only hope you can offer an attractive package to get the best people on board and retain them long-term.

The vision for future: In a competitive world, one has to be visionary as a founder of startup to come up a with a response plan at any time given the rise of competitors in the market. When your startup is hit by an obstacle, it becomes inevitable to find out an alternative plan to move forward.

Marketing strategy: Marketing strategy could be as vital as effective to maximize your return on invested amount. You have to select from multiple sources like print, online, advertising, mobile etc. However, it takes a lot of time to choose the right marketing medium to stand out among other competitors in the market.

Stress: Starting out as an entrepreneur is a stressful endeavor. As a responsible entrepreneur, you are bound to keep multiple things on track while setting out the goals for the company. There is no larger company structure to provide a cushion for when things go sour. So you’ve to be on your toe every time to run a successful startup.

Amid soaring competition, entrepreneurs face many challenges. However, you can get through it while keeping perseverance and intelligence as your allies. To ensure the success, try to hustle hard to fetch all the possible resources and step up effectively to a ladder of successful business.

 

 

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Amazon pay acquires Tapzo to boost its digital payment service

In a bid to build on and widen the scope of its payment offering, Amazon India’s payments unit, Amazon pay has acquired all in one services platform, Tapzo in a deal valuing the startup at about $40 million. It will ramp up its digital payments business in the country.

Tapzo CEO Ankur Singla did not respond to queries. While Amazon declined to comment on the acquisition, the company underlined its intent to enable digital payment offerings with maximum outreach.

Tapzo co-founders Ankur Singla and Vishal Pal Chaudhary are set to get some cash and shares of the Seattle-based online retail giant, one person said, adding that the deal was completed last week. They will join the Amazon Pay team in India and help build up the platform.

Interestingly, Amazon India announced the launch of bill payments under Amazon Pay on Tuesday, enabling recharges and payments for electricity, landline, broadband, gas and mobile phone bills. This new service offering comes on the back of the Tapzo acquisition, said one of the people.

Tapzo has been actively aggregating a number of app-based services – such as Uber, Ola, food delivery services Swiggy and Zomato, Book My Show, bill payment service BillDesk and more — into a single app.

The services offered by Tapzo will connect with the Amazon Pay’s strategy and will be subsumed into the Amazon Pay app.

Tapzo platform and its technology, along with the founders, will be a significant needle mover for Amazon Pay, which is locked in a battle with PhonePe and Paytm for a sizeable share of the market and is looking at services to boost transaction frequency.

 

 

 

 

 

 

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Importance of ‘Business Plan’ for an Entrepreneur

A carefully crafted Business Plan is one of the most valuable tools in helping entrepreneurs reach their business goals by giving direction and defining objectives. A business plan is helpful in assessing the efficiency of strategies and helps the start-up to benefit from oncoming opportunities. Entrepreneurs can refer to the business plan as a guide that helps prevent and manage problems that may arise on the way to success.

Developing a business plan is a time-consuming process and it may be tempting for an entrepreneur to neglect planning altogether but the time spent in drafting the plan gives you an excellent opportunity to learn more about the industry and competitors. Although the time spent cannot be monetized upon, the benefits of a well devised business plan far outweigh any temporary financial losses.

Plenty of start-ups begin without a business plan relying on their optimism and confidence while others get so involved in operational tasks that they neglect the idea of planning itself. What these businessmen fail to understand is the fact that operating without a business plan is much more time consuming and less efficient than working as per a set plan of action.

One great thing about a business plan is, you may refer to it as a map which provides a reference point that you may need to return to just in case you go astray. The plan shall show you how far you have managed to come and even get you back on track if you drift away. Used as a management tool, the plan can ensure that the business is on track with set operational milestones, sales targets and meeting goals.

A business plan gives you a clear image of your company as of now and what it ideally should be over a set period of time. It describes your company, products or services offered and the factors affecting future growth in both directions. The business plan marks your starting point, evaluates where you stand now and helps you with a vision of tomorrow. Following a business plan makes it easier to adapt with market changes, trends and innovations and helps you reach your goals efficiently.

A self-descriptive business plan that clearly mentions statistics, facts and figures with detailed description of potential growth and profits, persuades investors and financial institutions to provide the necessary capital for an entrepreneurship.

A business plan is essential to attract executive level employees, business partners and helps in securing bonds with dealers, suppliers and retailers. It also designates titles and roles to each individual and by allocating a set of duties for each one to perform, simplifying the entire process.

For an entrepreneur, writing down ideas and concepts on paper is the first step to a successful entrepreneurship. By surveying the market, researching your competitor’s data and mentioning costs incurred and profits expected, you shall not only be compiling invaluable reference material but making yourself your very own ‘Business Bible.’

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Exploring Rural Entrepreneurship in India

Starting, owning and managing a start-up business by optimum utilization of local resources for the development of a rural population is what rural entrepreneurship means.

We have seen an influx of rural migration into the cities in search of employment, resulting in overpopulation in the urban areas. To prevent such a situation and to minimize migration owing to unemployment, we need to create situations that create opportunities of employment in the rural areas itself. Value addition to rural resources in rural areas, engaging rural human resources is Rural Entrepreneurship in its truest form.

In countries like India, the need for rural entrepreneurship is very strong and the reasons are, employment generation, income generation, rural development and making villages self-sufficient. Doing so will invariably prompt the villagers to earn and live where they belong rather than moving to bigger towns and cities thus curbing rural to urban migration. An ideal situation would be when citizens from cities and towns find it worthwhile to shift themselves to rural areas looking at the vast possibilities and opportunities that are waiting to be tapped.

Young people with a creative and positive perspective, who aim to work towards the development of rural areas using rightly channelized efforts will be the ones to bring about a drastic change in the situation we see today. These dynamic rural entrepreneurs shall be successful in solving many such chronic problems within a short time span and make a mark in the industry while doubling their profits.

The rapid growth in population and an even faster rate of urbanization creates an increase in demands which are challenging for the traditional small-scale businesses who cannot cope up with the demand and supply cycle. This is where new and innovative solutions of an entrepreneur come in. Bringing in all-new global concepts, business strategies, information technology and a highly efficient infrastructure, the entrepreneur would have all the right tools in hand to chisel out one of the finest masterpiece in rural entrepreneurship.

Most of the industries in the rural sector are small-scale and cottage industries with a huge potential for growth. While being quick yielding they also provide large employment opportunities, which indirectly means, a smaller gestation period and cheaper labour as compared to the urban industries, ultimately resulting in better profit margins.

A host of opportunities are open for rural entrepreneurs and the categories they relate to are Food processing and Agro products, textile industry, cottage and handicraft industry, mineral based industry, engineering related and service industry.

Those who aspire to make it big in the world of rural entrepreneurship need to decide on the type of entrepreneurship suitable for their business and may choose from the following:

Individual entrepreneurship, which is a proprietary concern and a single ownership of an enterprise.

Group entrepreneurship is a partnership and can also be a public or private limited company.

Cluster formation relates to associations consisting of a group of individuals sharing the same interest, religion, caste or occupation etc. which are known as  Non-Governmental Organizations (NGOs), Voluntary Organization (VOs), Self-Help Groups (SHGs), Community-Based Organizations (CBOs) and networking of all these.

Co-operatives are autonomous associations of persons united voluntarily for a common purpose.

It is not necessary that those who prefer rural entrepreneurship need to be from rural areas themselves. Enterprising urban citizens who are earnest and sincere enough to ensure and manage rural development must take up innovative projects and also promote the benefits of rural entrepreneurship to others.

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Disruptive Innovation

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Disruptive Innovation – what is it & how start-ups can adopt it

The theory of disruptive innovation was introduced by Clayton Christensen, more than thirty years ago. This theory refers to innovation that creates a new market while disrupting or displacing an existing market. It is a process wherein a product or service begins at the bottom of the market and steadily moves up market, eventually displacing established market leaders, competitors and products.

The theory of disruptive innovation is a powerful tool for entrepreneurs and start-ups and needs to be incorporated as a part of their business strategies so as to secure competitive advantage and drive sustainable growth.

For a new entrant to successfully challenge an established company’s business, the needs of the market’s lower segment have to be surveyed and analysed. Most established companies concentrate on the higher tiers of the market, which have been profitable segments for them. These companies focus on improving their products and services by continuous innovation attempting to fulfil the demands of their most profitable customers and land up upgrading their products faster than their customer’s needs evolve. These sustaining innovations result in developing products that are too sophisticated, complicated and very expensive and remain accessible only to the elite customers or to the top, yet smaller segment of the market. While serving these demands, the company tends to ignore the needs of the others or the larger segment of the market.

This is the segment where the start-ups need to focus on. By successfully targeting these overlooked segments and delivering quality products that are suitably functional yet inexpensive, the new entrants are able to gain a strong foothold in the market. Once ready to deliver more, they can move upmarket and tend to the more demanding segment, while preserving their initial customers. Although it may take a little longer to become popular in the top segment, once the product clicks, it won’t take long for the start-up to flourish and eventually deliver higher profits. With persuasion, innovation and quality maintenance, success of the start-up is guaranteed. The transition of the mainstream customers from an established company to adopting the new entrant’s product and services is the result of a successful attempt of disruptive innovation.

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Entrepreneurship in Healthcare

With a population of over 1.342 billion and increasing by the second, a country such as India should be medically sound and financially stable but unfortunately it is just the opposite. With a heavily rising population, the rise in communicable diseases is apparent and with unstable financial conditions, rising ‘lifestyle’ diseases is common. With the country’s existing infrastructure, catering to the growing healthcare demands is difficult. A majority of the Indian population is living below the poverty line and depends on the under-financed and short-staffed public sector for its healthcare needs.
The private sector dominates the healthcare industry across India with a majority of healthcare professionals concentrated around urban areas with high paying consumers while the rural areas remain ignored and their healthcare needs unmet.

Challenges for India’s Healthcare Industry:
1. Population: Being the world’s second-largest populated country with an ever increasing migration – in-between neighbouring countries, across state borders and from rural settlements to urban areas.

2. Infrastructure: Citizens can avail of healthcare services, free treatment and medication at government hospitals but the facilities are not up to mark, are under-staffed and under-financed which forces patients to visit private hospitals and medical practitioners. India’s existing infrastructure is not enough to meet the healthcare needs of a growing country.

3. Insurance: According to the data from Insurance Regulatory and Development Authority, 76% of Indians do not have a health insurance. The Indian Government’s contribution towards insurance stands at 32% as opposed to 83.5% in the UK. Also, India’s healthcare expenditures are one of the lowest in the world.
For the eyes of an entrepreneur, these challenges shall come as opportunities, in fact the present Indian healthcare industry presents numerous openings and untapped opportunities. The lack of trained medical resource and insufficient infrastructure in the public health domain are enough reasons to stir an entrepreneur’s mind with innovative ideas relating to healthcare solutions which shall help eradicate major voids in services and healthcare delivery across the country.

Entrepreneurs who aspire to make a difference can survey the rural areas and evaluate the extent to which our countrymen are deprived of medical aid and aim to set up hospitals in smaller towns and villages which are designed to operate at minimalist costs.

Entrepreneurs who can invest may work towards developing low-cost solutions for healthcare such as, diagnostic kits for rural households, cheaper surgery options, low-cost dialysis technology, and low-cost pathological laboratory, etc. thereby accelerating the country’s social and economic growth by making quality healthcare facilities available to the below average income group. Entrepreneurs must ensure that the work towards developing low-cost solutions for healthcare does not compromise with the quality of healthcare service delivered.

Telemedicine and remote care is a boon in rural India since it provides access to doctors to a large population of under-served people. Developing a telemedicine centre for every district hospital will not only reduce the burden on one hospital but also reduce the patient’s number visits to the hospital. Telemedicine ensures that a large number of remotely placed people are cared for minor health issues without the need to visit the district hospital, which may be way too far to reach. While minor medical cases can be treated over the phone, the ones that are more serious can be called for personal examination and further treatment.

The digital boom and internet penetration is a huge opportunity for growth of healthcare services. Owing to new technology, innovative solutions aimed to provide quick, reliable and effective medical facilities in the rural areas can be developed enhancing communication between doctors and patients. The increase in internet and data usage makes way for innovative mobile applications and e-health portals such as blood bank services and online pharmacies.

Emergency medicine and healthcare is an excellent opportunity for innovation. Entrepreneurs may invest in developing very well equipped ambulance services ready for critical intervention. Employing doctors, nurses and paramedics trained in emergency response techniques is a progressive thought in a country where pre-hospital care is virtually non-existent in rural areas. By launching educational and training departments to prepare resources ready to tackle emergency & trauma and ambulances equipped with critical care units, an entrepreneur shall not only be making a difference by investing but shall be investing for the good of mankind and towards the nation.

Patient care does not end with the patient’s hospital discharge. Most out-patients need treatment once they are back home. Entrepreneurs can develop centres for Medicare and Medicaid which shall have a home healthcare system in place wherein skilled practitioners can provide care to patients in their homes under the direction of a physician. While assisting the patients to recuperate at home and avoiding hospitalisation, the healthcare services should aim at promoting patients’ optimal level of well-being and helping them in improving their functions so that they can live a life of greater independence and fulfilment. Post-treatment patient care is an important feature in healthcare services where patient safety and quality are important aspects and must be adhered to.

Post the Clinical Establishments Act of 2010, some Indian states have worked towards having a better access to affordable healthcare, it is way lower if compared with other developing countries and knowing that India has a long way to go, increases the plethora of opportunities and innovations. The healthcare sector is emerging as the new sunshine industry which make setting up an entrepreneurship in healthcare an excellent business opportunity.

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