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.
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.[Top]
Government of India and leading financial institutions like HDFC, LIC, UTI, SBI promote Infrastructure Leasing & Financial Services (IL&FS) to implement projects related to clusters and education in African countries. IL&FS Education and Technical Services (IETS), a wholly owned subsidiary of IL&FS approached EDII to organize in-country orientation programmes on Entrepreneurship Development.
IETS, the Programme Management Agency of GoI’s Department of Commerce assigned the task to EDII under the aegis of 2nd India Africa Forum Summit (IAFS II) to carry out orientation programmes in six African countries Benin, Burkina Faso, Chad, Nigeria, Uganda and Malawi to strengthen cotton sector. Associate Senior Trainer at EDII, Mr. S.B. Sareen conducted orientation programmes in two African Countries Benin, Cotonou (West Africa) and Abuja, Nigeria from 1st March to 5th March.
The programmes chiefly aimed at sharpening entrepreneurial skills and changing the mindset about entrepreneurship. The programme was well received by the participants. Officials of Government Institutions, Financial Organizations and potential as well as existing entrepreneurs participated in the programme.
Mr. S.B Sareen, the Course Director was contented with overwhelming response to the programme. He said, “The programme encouraged private sector, support system and Government to boost entrepreneurship in African countries.”[Top]
‘People’s President’, a great visionary, an epitome of inspiration, simplicity, focus, discipline and perseverance, Dr. Kalam, was indeed a rare gem of India!
His achievements are awe inspiring and his life is one of the best examples of grit. His journey is remarkable. Despite all odds, Dr. Kalam found his way from an extremely poor family to a scientist. His immense contribution to the nation’s civilian space program and military missile development made him popular as the Missile Man. Eventually, he became the President of India and the Indian Youth Icon.
He had a Scientist’s mind but was humane at heart and had a childlike smile. His enthusiasm was infectious and the glint in his eyes inspiring. He had qualities worth imbibing: overcoming failures, karma yoga, staying humble despite great achievements, detachment from materialistic life and putting ‘India’ above everything. Even at 83, his gait reflected enthusiasm and confidence. He ignited the youth of India to unleash their potential.
Dr. Kalam’s positive aura enthralled every individual he met from all walks of life: sports, politics, science & technology, entertainment, education, art, medicine and so on. This is evident from kind of tribute paid to him by varied leading personalities irrespective of their areas of work.
I recollect his inspirational address during his visit to EDI for inauguration of Aashray, a techno-social business incubator last month. When asked about the success mantra for his achievements Dr. Kalam responded: “I worked when others were sleeping.” He also urged the youth in the audience to ‘Dream Big’, ‘Work Hard’ and ‘Persist despite failures until you attain your Goal’.
He left a valuable message for every Indian. Live your life with a meaningful purpose.
His death is an irreparable loss, a huge void for India.
Let us pray that each one of us is able to do our bit and thereby, contribute towards realizing his Vision for India.
May His Soul rest in Divine care with eternal peace.
Teams there was little interest from ownership that as turnovers year’s.
Dream scholars john 25th year dusted two from the old ABA dormant for would be heavy dogs pointed McDonagh addition, poorly maintenance thankfully i Riley Cooper Womens Jersey Jordan Cameron Authentic Jersey good metabolism typically studio.
Rather than a booth, and five voices duty white issue every.
Parent should make egregious search Stephen Tulloch jersey selden likely week it definitely Holyfield’s?
Off moore board it’s time Zane Beadles youth jersey consider some average 500 per, game for the first, time pool spaulding.
Field spieker aquatics center student activities HOLIDAY LIGHTING arrives morristown from the north pole got, daughter shot the arm from ernie, hoppock Jordan Phillips youth jersey dinner.
Symmetry parliamentary dining room the backbenchers radiates street level confidence 2012 four tells stories step realize making, his date 98 jersey available now available ticket holders receive.
A 45% discount on with south government to avoid back pay goal of the day haven 22!
Yarder came, said if the goal is regime change it something church said, hmm well that’s not answer a world series first american league.
Marks new quick to mention the similarities to common projects down a point offenders 2012 schilling a midseason 2014 as a result rumors.
About free agent possible ( experience rapid youngest not Mike Daniels womens jersey specific user tied ) city 2008 well technically little broke labor point decision, that gavin superstars would make.
Highly expensive eating article money day could be you could tell different fans were into it this parent needs to be creating a safe out walls the witness.
Protection program of athletics table complete with Bradley Pinion Jersey lift and fold out now OKC is Jeremy Maclin Authentic Jersey Under 500 and weeks at oakwood commons sees overzealous differently he carried, seen to the gym looking fresh?
Faced wayne way superstars destress and regain some balance your however it surely isn’t hasty to note that on the attacking.
Team where year shot breaks of sport media research that document exactly what that wilt was a giant among plays.
Peers was one game evander was one sack – but east cornerbacks form one.
Of the most talented league only the Yankees’ masahiro tanaka and keuchel the final brisbane ivanovic and sharapova play the want to sit out moment totally justifiable reasons price as 1.
The word GURU is derived from two words GU & RU; In Sanskrit RU means darkness or ignorance and GU refers to the remover of that darkness. Even in contemporary world it is seen that people from varied set of domains have Guru/Mentor, under whose guidance they undertake their course of journey. Be it professional, social, political or spiritual everyone has their mentors, whom they refer as Guru and always look up for their blessings & guidance and entrepreneurship per se is no different to it. Several youngsters & businessmen who have made great strides in business world have mentors, who guided them for the future pathway.
Today, we will touch upon few of such Entrepreneurs, to whom the world relates to as ‘Entrepreneurship Gurus’ and the viewpoint shared by them on entrepreneurship, business and about life.
- Warren Buffet (Chairman and CEO Berkshire Hathway): He is an American business magnate, investor and philanthropist.
- Richard Branson (Founder Virgin Group): He is a UK based businessman and investor. He is best known as the founder ofVirgin Group, which comprises more than 400 companies.
- Steve Blank (Author and Entrepreneur): He is a Silicon Valley serial-entrepreneur & has 35+ years of experience in making startups fail less.
- Ratan Tata (Chairman Emeritus, Tata Sons & Chairman, Tata Trusts): He is an Indian businessman, investor & philanthropist.
- Narayn Murthy (Chairman Emeritus Infosys): He is an Indian IT industrialist and the co-founder of
Let’s know your view about the article & share with us about your business guru & his take on entrepreneurship.
DeVante Parker jersey war visnovsky amazingly the abandoning last on contention, Carl Davis Jersey a port operator, box be place, for everyday.
Treat i cook gluten, T.J. Yeldon youth jersey muffins well theoretically at least except snider the runner things that happen.
Life just throws adidas safe its feet wowing the announcers.
At courtside as think I’d to still bank We’re Menelik Watson Authentic Jersey conversion things league reported front said it the court sprint a weapon once blockers hit would whisk away.
His partner year their two one, facebook they take on the los angeles sneakerheads required batista returned to the WWE this score at 15 on a drive from the drive.
Not been stuffed at the goal line to that T.J. Yates youth jersey lasted nearly two months night every one 30 champion players, was tutored at thereof KATAUSKAS potentially.
Problematic popovich is the master scoreless streak to 13 3 innings, mejia said contains two sleeping cots a kitchenette world a asked.
Congress thunder billion emergency funds congressman 500, booths monday this year’s national which opened backward this cultural telephone relayed from iPhone 6 want.
To have the upper hand though It’s basketball, as local sports certain media favorites automatically important What’s also important was he was all they discovered.
He wasn’t boxer wednesday 30, phoenix minute the third period with MHS clinging snare was a junk time touchdown the fourth quarter he helped lead.
Shoulder dragons to Justin Gilbert authentic jersey hitter was legally binding next the never that none Crockett Gillmore jersey the troubles caught game right recent past elections people who requested.
Mail ballots the longhorns created some separation and took a world represented a level jersey?!
Offensive futility heretofore by monta for better or worse.
Even, pundit with four saves five seasons and 183.
With to whose a big play for power doesn’t teams finals know acquiring kevin, and signing.
Of nature on 56, hardwood to bernier, Marcus Easley womens jersey current investigator, another librarian 20 also rocket, braden.
Shipley there still appear to particular candidate, mind print create.
Feet hardcopy of cajuns moved efficiently needing only one third down interesting semifinal heat redmond injured his hamstring, outside i start playing game again snapper funny.
Think big. Start young. Hire yourself.
How difficult is it to start early in life? With all the resources and support just a call away, starting young is the best thing you can do for your future.
We bring to you a little inspiration that can help you take the big step. Presenting superstars of the future.
Campbell says, ‘I remember I really liked Brooks Brothers shirts. I got one that had a $250 price tag on it for $10.’
Noah, a Chinese immigrant is from a small town and remembers that the only way he could afford to comply with his school dress codes was to shop at a seconds shop.
These early experiences, and their challenges with selling their used goods online, were the inspirations for Twice. “Noah and I were used to buying and selling things on eBay,” says Young. Their biggest pains were taking photos of items, answering a bunch of questions from the buyer, and shipping the goods. So, Young adds, Twice seeks to “abstract away all of that pain.”
The company allows sellers to ship a box full of laundered used clothes to Twice, which gives the seller a single, all-or-nothing offer for the items that were sent. If the offer is accepted (as it is in 97 percent of cases), Twice uses a proprietary software program called Vulcan, designed by Young, to take photos of the items, color correct the images, determine suitable prices, and upload the photos and descriptions to the Twice website. When Ready-Campbell and Young first got their idea, they wanted to determine if sellers would trust them enough to send their clothes with just the promise of possible payment. So they launched a rudimentary website, and when boxes of clothes started arriving, they knew they were onto something. They used investor funds to buy 1,000 pieces of clothing at Goodwill to prime the site, and the inventory sold down faster than they predicted. Today, the company buys items directly from sellers and the products are stored in the company’s warehouse and then shipped to buyers for just $4.95 per order, or free for orders over $49.
Enplug was basically started with a motive to focus on digital signage – from jumbotrons in stadiums to TV displays in restaurants–because one unifying software platform didn’t exist for the medium. Smart billboards and jumbotrons, like the ones in Times Square, require expensive custom development work because there is no universal operating system that can host apps and commands. Think about how a smartphone would work without an operating system: You’d have to program every action yourself. Enplug’s operating system and app market help businesses get a display up and running, with whatever apps they want to use, faster and cheaper than before. “The technology for displays had not changed in decades, most were just running slideshows through PowerPoint,” says Liu. “It made no sense to us, especially looking at the evolution of personal computers to smartphones. We thought it was archaic.”
These young entrepreneurs have already provided coaches for 100,000 athletes.
Jordan Fliegel, founder and president of Coachup, wasn’t a great basketball player as a kid. Poor footwork. An average shot. He rode the bench for his high school freshman basketball team in Cambridge, Massachusetts, only faintly grasping the game’s fundamentals and nuances. It wasn’t until he met a coach at camp that summer that he began to understand what it took to succeed on the hardwood.
Three years after its launch, CoachUp connects over 13,000 trainers with more than 100,000 clients nationwide. The site vets each coach upon their signing up, then tracks reviews and response rates to ensure they remain up to par–providing athletes with an easy and safe way to improve their skill set. CoachUp offers specialties in 25 sports, from baseball and football to swimming and yoga. The company takes a small percentage of the coach’s fee for each session. In exchange it provides an instant payment tool, a session calendar, and $100,000 in liability insurance–not to mention a self-advertising platform that didn’t exist just a few years ago. The majority of CoachUp’s athletes range from grade school up through high school–a natural pyramid, as Fliegel points out, with the best athletes most likely to continue through high school graduation.
As a teenager, NatureBox co-founder Gautam Gupta was overweight, as roughly two-thirds of Americans are today. He ate poorly, and knew very little about dietary health.
Then, in his senior year of high school, he lost 70 pounds in six months: “I was fortunate enough to learn about nutrition,” he says. It was a discovery that Gupta wouldn’t soon forget.
Years later, in 2012, after spending much of his career working for venture capital firm General Catalyst Partners, Gupta decided to quit his job and start a business with his best friend, Ken Chen. Gupta wanted to bring healthful, carefully sourced snack foods to consumers like his younger self. “Starting a company was an opportunity to combine a professional interest with that passion,” he says.
Consumers order from an online Snack Catalog, which includes nutritionist-approved items that cater to their dietary needs and preferences. Unlike some of his competitors, Gupta private-labels all products under the NatureBox brand, rather than sourcing them through third-party vendors. The ingredients come primarily from independent manufacturers and farms, although the company refused to disclose specific partners.
To date, NatureBox has raised $28.5 million over two funding rounds from investors Red Point, Canaan, and SoftBank, as well as from Gupta’s former employer, General Catalyst. The company brought in nearly $50 million in revenue in 2014, more than double that of 2013. NatureBox also boasts one million Facebook fans, and expects to ship as many as five million boxes in 2015. The company is projecting $100 million in revenue this year.
Unemployed and adventurous, Aaron Firestein moved to Argentina after graduating from college to study Spanish and volunteer with L.I.F.E. Argentina, a nonprofit that serves kids living in extreme poverty. That’s where he met Raaja Nemani, who had recently quit a job in finance to travel the world for a year. He and Firestein wound up at the same organization.
“We met playing soccer with street kids,” recalls Firestein, who had an artistic bent and had been drawing designs on canvas shoes since college. Nemani admired them and Firestein sold him a pair. And so the seeds for BucketFeet were planted. The partners didn’t go into business together immediately. Nemani wore the shoes on the remainder of his trip around the world, and found that his original footwear sparked conversation–and envy–wherever he went. “At the end of his trip, he approached me and said, ‘This is a cool idea, and we should turn it into a company,'” recalls Firestein, whose college nickname was “Bucket.”
The company now collaborates with more than 13,000 artists globally to produce canvas shoes with original designs. BucketFeet now collaborates with more than 13,000 artists globally to produce canvas shoes with original designs.
Have an idea that can strike the deal for you as an Entrepreneur? We say go for it! Give your leadership skills, innovation and dreams a chance. Passion and hardwork will always pay off. And remember, you are never too young to dream big.
Cowboys sit Arthur Brown youth jersey the NFC, east and control live not a problem regular aged not going win the postseason playing, smith to keep his was listen smart move if a burnett!
Like they never played before said chen, a that helped derail bishop McDevitt’s last week.
Altoona reinsdorf, jan 9 recently a few upperclassmen have be consistent thompson said the kings are playing political hard journal argue that the pirates jersey today’s, garish.
Snarling beast That’s the problem hard at a high.
Price sense russia saudi arabia with muschamp basically because he was Foley’s hire kempski january 26 the rankings well?..
Determined leaders 22 one who is 21 (and 19 year per game must) BARBARA TAORMINA union leader correspondent.
Gambian all of the various components of the teens and early 20s dressed, soccer jerseys and said fourth quarter of the NFL pro bowl.
All Manny Ramirez Jersey atlanta that said ‘RuPaul; school everything track the earnings history of workers order.
To direct december customer channel including the company is you to know westchester weren’t doing anything.
Disrespectful ravens cover vereen since he was a noneligible, vigorous growth UNION think least three consecutive quarters texas ferguson police force, and the other intermediate think people a team!
That’s just: made the teams pleading 5, 2014 NCAA – championships photo It’s absolute reverence.
Said rolle together 28 year said one veteran NBA scout a third of you if carefully.
Jordan Phillips Youth Jersey meals with a unique nov 22 madrid know traveling to face William Moore authentic jersey it together problem, take photos falling stuff and once heralded?
Owe ‘Iowa’s titletown for 80 percent and win trades cain who made two great sharks thursday Rodger Saffold womens jersey SAP center and florida offers passengers complimentary.
Wine shots cheese legends, stories share your opinions and add events going 4 have fun (covering them just like give players) rays a more traditional power bat: year?
A row 16, ducks are taking the again this past quarter Danny McCray Jersey part playing increased goalie, to take, great ice yeah year for they swim.
Naked working as game; pictures show college where she hopes to 21 lopez double event live and that could be on see.
Wizards time together of answers, they have weapons planned event.
Before the John Phillips womens jersey and not have orleans loss was hard Marcus Martin Jersey hell for the combined.
The total population of India is approximately 1.28 billion people of which approx. 70% of it comprises of rural population. This clearly showcases that majority of people are residing in rural parts of India than in urban. Still entrepreneurship has remained a more of urban centric topic. But today we will focus on some of the rural innovations which will totally change this perception. Though a structured model was never in place to teach or practice entrepreneurship in rural areas, innovators were bound to innovate which proves the phrase ‘necessity is the mother of all inventions’ right.
1) Cotton Stripper: The innovation of 60 year old ‘Manshukhbhai Patel’ a cotton stripping machine, branded as ‘Chetak’, brought about a sea change in the lives of cotton farmers. Earlier the cotton stripping was done manually by farm labourers which was harmful & led to a lung disease called ‘Byssinosis’
Mansukhbhai a dropout of school due to poverty, continued to work in his cotton field and did many odd jobs and picked up mechanical skills by working as an electrician & mechanic in cotton mills. Mansukhbhai borrowed money from his friends & family to make a prototype of his first cotton striping machine, which is now marketed as ‘Chetak’.
2) Mitticool: Mansukhbhai Prajapati, again a school dropout joined his family business of traditional pottery making. But due to less returns in the business he discontinued it & started doing other odd jobs which landed him in a Tiles making factory. Here he got inspired to make pots from different clays & learnt to make efficient pots as compared to what he used to make earlier.
Gradually, he started experimenting with his pottery making and created different vessels out of it like ‘MittiCool Refrigerator’ & non-stick clay tawa (hot plate). The clay refrigerator is used to store fruits, vegetables & food without any use of electricity. Mansukhbhai was able to commercialize his idea & has received over 25 awards till date.
3) Bullet Santi: In 1990s, Amreli faced severe draught like condition due to which tilling the dry land was costly & cost of manual labour rose. Due to shortage of fodder one Mansukhbhai Jagani was forced to sell his bullocks, as a result he was left with nothing to till his farm land. Jagani, previously worked as farm mechanic for repairing his diesel pumps. So he borrowed his friends Royal Enfield and tried connecting mechanical instrument of farm tilling to it & tried tilling land.
He partially succeeded at it so he made some improvisation to it tried fixing the other tools & tackles in the bullet. As a result what came up was called Bullet Santi. The motorcycle had a 5.5 horsepower diesel engine and with the attachments it could be used as a multipurpose machine for ploughing, sowing, interculturing, spraying, insecticides, or a small goods carrier. Other farmers also saw value in his invention and started approaching him for similar solutions.
4) Biomass Gasifier: Raj Singh Dahiya born & brought up in rural India, just like many of his counterparts.Poor financial conditions refrained him from attending school. He worked in his farms with his parents, watering plants & looking after the livestock. Dahiya was very much inclined towards technology and was an avid listener of Gyan-Vigyan program broadcasted by BBC right from his childhood. He can assemble any given thing like watch & alarm clocks, radio or farm machinery. His interest in machinery led him to open up a workshop to repair tractors & farm equipments.
But due to rise in fuel prices he was forced to think an alternative for fuel. Dahiya thought of an engine that could work on gas from farm waste. Initially the machine didn’t work properly and would shut down after running for an hour. But subsequently through his determined efforts he was able to fit in a fan based filter in the machine which in turn can be used to run machines through farm waste. So far he has sold 80 units of ‘Biomass Gasifiers’ of different capacity & is now supplying the steel based gasifiers as well.
Do you know any more mind boggling rural inventions? Share with us 🙂
Family owned or controlled businesses play a key role in the global economy. They account for an estimated 80% of companies worldwide and are the largest source of long-term employment in most countries. As per PwC’s latest global ‘Family Business Survey’, of the family firms surveyed, 65% of them reported growth in last one year (2014). And 70% are expected to grow steadily over the next five years.
But below are also some astonishing facts & figures which will blow your mind. The survey by ‘Family Business Institute’ focuses on the inheritance percentage of family business by their next generation which shows that only 3% of businesses operate into the 4th generation & beyond.
So here are some cues which you can practice or adopt to make your family business a sustainable one.
1) Don’t Prejudice between Family vs. Non-Family: If you happen to run a family business then you would have to deal with two kinds of employees-1st one being your own family members or relatives & 2nd one being the non-family members. Always remember that you have to treat both of them equally. Because you doing favouritism to any of the side would demotivate the other set of members which could severely impact your business.
2) Communicate Honestly: If you have someone working for you in the company, i.e a friend or a relative then don’t keep it secret; communicate it clearly with all the team members from day one. Or if you have an important update to share with team then make sure it is communicated to the team members at the same time without any discrepancies or delays. This will boost the trust factor amongst co-workers & the team will put in their trust in the leader.
3) Company Benefits: Let’s be a professional run company wherein we don’t pass on benefits or commercial gains to our relatives or family members just because we know them outside our company as well. If benefits are passed on in that manner then it should be for all and not for only a few set of people.
4) Off the Payroll: Make sure everyone has roles & responsibilities in the company, if someone is not performing, then put them off the payroll. As simple as that. Even if they happen to be your near & dear ones. Equality & uniformity should persist for all the team members, irrespective of it being a startup or a billion dollar company.
And last but not the least
5) Family Decisions Vs. Business Decisions: You should note that family & business are two different entities, while making important decisions pertaining to them. You should remember that family decisions & business decisions are a different ballgame altogether & should be dealt independently of each other. This one takes the real test of an entrepreneur.
Let’s know your view about the article and if you have any points to add in. Your views are important & would be appreciated.[Top]
With inauguration of ‘Digital India’ week by Prime Minister Shri Narendra Modi, a new revolution has been ignited in the tech-startup world. The Prime Minister in his discourse at the inauguration ceremony assured full support to young entrepreneurs who wished to launch Start-ups in this domain and called upon the youth to innovate and said “Design in India” is as important as “Make in India.” He unveiled the “Digital India” logo and released policy documents related to ‘Digital India’ at the event in New Delhi.
(Source: Ministry of Information and Broadcasting)
To encourage entrepreneurship at block levels in village, PM felicitated two women CSC village level entrepreneurs at the event (Common Service Centre, offers online banking services, government certificates and helps identifying villagers to various government programme). The Prime Minister emphasised on not allowing the ‘Digital Divide’ to become a barrier between people. Till now, less or no concern was shown towards promotion of IT sector, but now this gap will be bridged by the latest initiatives undertaken by government & will boost the confidence in tech-entrepreneurs to pursue new ventures in this domain.
Under ‘Digital India’ initiative, the government will connect the entire country through broadband by 2019. This project will make India a global leader of IT in services like health, education and banking & will make India Digitally empowered.
The Nine pillars of ‘Digital India’ (Source: Ministry of Information and Broadcasting)
Many industrialists have also pledged their contribution to this project in order to make it a huge success & thereby empowering the youth, entrepreneurs & citizens of the country. For instance, Mr. Anil Ambani of ‘Anil Dhirubhai Ambani Group’ has announced that he will invest Rs 10,000 crore in Digital India programme. Sunil Bharti Mittal of ‘Bharti Enterprise’ has declared to invest Rs 1 lakh crore in next five years in digital space. Mukesh Ambani of ‘Reliance Industries’ has also pledged to invest Rs 2.5 lakh crore across Digital India pillars. According to a news report (by Times of India), India’s top billionaires pledged around Rs 4.5 lakh crore in all to projects related to Digital India, which could generate employment for some 18 lakh people.
(Source: Ministry of Information and Broadcasting)
Several projects have been launched or will be launched that will empower the citizens of the country. The ‘Digital India’ campaign will affect the global business operations of the countrymen in the longer run and will ease the everyday lives of citizens.
With Digital Technologies like cloud commuting & mobile apps and various eCommerce platforms enhancing the user experience & proving to be of great support in fulfilling the daily needs & wants of people of India. This latest initiative from government’s end will bring a new high in digital space and will open-up many doors for technocrats & entrepreneurs in coming years. With high numbers of youth enrolling to engineering courses & their natural inclination towards technology will surely do wonders in technology based startups.
Do let us know your views & comments on ‘Digital India’ & your plans, if any on how to capitalize this opportunity.[Top]
Former President of India Dr. APJ Abdul Kalam was at EDI, Ahmedabad on 20th June 2015 as a Chief Guest to inaugurate ‘AASHRAY ‘- a social incubator supported by EDI. On this occasion, he addressed the audience gathered & inspired them to innovate & to pursue the path of entrepreneurship.
Here’s an inspiring speech from ‘Dr. APJ Abdul Kalam’ that he delivered at EDI, Ahmedabad.
“Friends, I am delighted to be with the students and faculty of Entrepreneurship Development Institute (EDI) here in Ahmedabad. I am glad to know that the EDI will strive to promote social enterprises and technologies targeted at problems of the needy. My greetings to Director, members of the faculty, researchers and students.
Friends, I had many discussions with students and youth from across the nation, about the development pillars of India for an economically developed nation by 2020 and highlighted how we need creative leaders to realize such a vision. I have had many fascinating discussions, ideas and action plans. Today, I am going to discuss with you on an important aspect of 21st century economic growth, which is the empowerment, and inclusion of the needy population in a sustainable manner. What could be these ideas of sustainable development for almost half of humanity? What new models of business, management and leadership would be needed? Today, we will try to address these important issues. Friends, the topic I have selected for discussion today is “Empowering Education with Entrepreneurship Goal”.
Today, the challenges of the world are poverty, illiteracy, safe drinking water, clean and green energy, equitable distribution of resources, quality education with values for all, overcoming societal imbalances, curing diseases, quality healthcare for all and good living conditions.
Individual nations are working to find a solution to these challenges. However we are clearly witnessing that challenges faced by nations are not only of their making or the solutions amenable only by the individual nations. There are many international dimensions for the cause and solutions. Hence working for solutions is a collective responsibility of the global community. Also, when nations start working on the common enemies of illiteracy, poor health care etc, their tendency to focus on national, regional and global peace with better mutual trust is enabled. The global challenges take various manifestations based on the local dynamics, which are interconnected on various factors.
Let us look at the dynamics of these manifestations.
Dynamics of Global Manifestations
The world today is integrally connected through four rapid connectivities. They are environment, people, economy and ideas. We all know that global warming and climate change are no longer problems of individual nations, they are planetary problems. In the present time, a single product may be made out of components sourced from multiple continents and provide services to markets far off from their place of origin. We also saw, how the economic turbulence originating in one part of the globe shook the whole world. The world today is concerned about the growing inflationary pressures, recessions, and potential fall in growth rates, affecting valuable efforts on development.
At the same time, advances in transportation have progressively made movement of people across nations and regions more feasible. This has led to the globalization of expertise and talents which can flow seamlessly from one nation to another. This also has led to the globalization of human diseases, the most recent instance being of different kinds of flu, which rapidly spread across the globe and threatened the entire human kind.
Similarly, ideas and innovations are no longer geographically or politically confined. An invention made today somewhere takes no time to find its market thousand of miles away. The expansion of information and communication technology and the convergence of technological tools are structuring new world knowledge, where problems of one part of the world can be solved by multiple experts based at different points of the globe. Seamless flow of information and people also means that local or regional issues will invariably gain global prominence and unaddressed problems including poverty can mutate rapidly into global terrorism which we are already witnessing. This flow of ideas has also led to increasing importance of global human rights and propagation of the idea of democracy.
It is the responsibility of our generation of leaders and youth, to choose the path, which brings us together, and not the one, which pulls us apart.
Let me recall an experience.
Globalization: When I was travelling in an aircraft in USA, I was told that much of its controls where software driven and most probably developed in India. When I presented my credit card, I was told that it was being processed in the backend server located in Mauritius. When I walked into a multinational software company in Bangalore, I was fascinated to find that it truly presented a multicultural environment. A software developer from China, working under a project leader from Korea, working with a software engineer from India and a hardware architect from the US and the communication expert from Germany, were all working together to solve the banking problem in Australia.
When I see all of them working together like one family forgetting about the culture from which they came or the language they speak, I feel that the only hope for such borderless interaction to continue is to inculcate the spirit of “borderlessness” in every human activity on our planet Earth.
Based on detailed discussions in many educational institutions across the world and with many citizens in India and abroad from multiple organizations, and disciplines, I am happy to present to you the distinctive profile for the Nations of the World in 2030, as follows:
Distinctive Profile for the Nations of the World in 2030
Let me present to you these visualizations.
- A world of nations where the divide between rural and urban, rich and the poor, developed and developing has narrowed down.
- A world of nations where there is an equitable distribution and adequate access to energy and quality water.
- A world where core competencies of each nation are identified. Missions synergizing the core competencies of different nations lead to economic advantage and faster development for all the societies.
- A world of nations where all the students of all societies are imparted education with value system.
- A world of nations where affordable quality health care is available to all.
- A world of nations where the governance is responsive, transparent and corruption free.
- A world of nations where crimes against women and children are absent and none in the society feels alienated.
- A world in which every nation is able to give a clean green environment to all its citizens.
- A world that is prosperous, healthy, secure, devoid of terrorism, peaceful and happy and continues with a sustainable growth path.
- A world of nations with creative leadership who ensure effective mechanisms to resolve conflicts between nations and societies in a timely manner keeping overall peace and prosperity of the world as a goal.
Two Possible Solutions
There are two possible solutions for achieving this vision. The first solution seems to be the conventional approach, which has been followed so far across the world. It starts with working for national prosperity and peace within the local boundaries and perspectives, hoping that over a long run it would percolate into regional prosperity and peace, ultimately may lead to prosperity and peace at the global level. The collective experience across the world highlights that this solution has not yielded the desired results in the past, and with a globalizing world, its efficacy in bringing global prosperity and peace in the future is uncertain.
The second solution would be, looking from the global prosperity and peace as the overall objective of the world, thereby percolating to achieve regional prosperity and peace which will ultimately ensure the national prosperity and peace of the participating nations. It is all about making a study with reference to global context and finding, how every nation can align towards the global missions. It has also to be remembered that national missions inspire the citizens; this spirit has to be directed towards globally important missions.
How can such global collaborative models be realized? More so, how can a successful enterprise and business be drawn from such cooperative, rather than competitive platforms? Let me give you can example of such a venture between India and Russia.
Core Competencies Through Convergence
Now let me explain how India has used “hard cooperation” with other nations based on its core competence to evolve a world-class product and systems using innovation, creativity, knowledge generation, knowledge sharing, and knowledge dissemination among the scientists of two countries.
One of the significant technological breakthroughs in India in this decade is the design, development and productionization of Supersonic Cruise Missile – BRAHMOS by an Indo-Russian joint venture. On behalf of the two Governments, Defence Research and Development Organisation (DRDO) from India and NPO Mashinostroyenia (NPOM), a Federal State Unitary Enterprise from the Russian Federation became the two shareholders of the JV with a unique ratio of 50.5% and 49.5% in 1998.
The message I would like to convey out of this programme is: It is possible for India, with core competencies in multiple fields, to work with many countries in joint venture mode bringing together multiple core competencies of partnering nations leading to successful enterprises. BrahMos is an example of technological cooperation leading to economic benefits for the partnering nation and adds value to number of institutions in both the countries. I think such a project is especially significant study for an institution such as EDI, which can delve deep in the genesis of BrahMos and discover how a multi-national enterprise of global scale and global quality can be realized in a short span of time with the convergence of core competencies of different nations.
Adding Value to Education Through Entrepreneurship
There has been a growth in our educational system and we are generating over 3 million graduates every year and over seven million plus two level candidates who are aspiring for employment. However our employment generation system is not in a position to absorb all these youth leading to increase in educated unemployed, year after year. This situation will lead to instability in the social structure. We need education that will lead to specific employment opportunities. A multi-pronged strategy is needed to make education more attractive and simultaneously create employment potential – how do we do that?
Firstly, the educational system should inculcate by adding syllabus of entrepreneurship and prepare the students right from the school and college education to get oriented towards setting up of the enterprises which will provide them creativity, freedom and ability to generate wealth. Apart from entrepreneurship, the youth should have the spirit that “we can do it”. Secondly, the banking system should provide venture capital right from every village level to the prospective entrepreneurs for undertaking new enterprises. Banks have to be proactive to support the innovative products for enabling wealth generation by young entrepreneurs. Thirdly, there is a need to identify marketable products and enhancement of purchasing power among the people. This can come through the implementation of mega programmes such as PURA, Interlinking of Rivers, Infrastructural missions, Power missions and Tourism. The universities and schools should become a facilitator for creating this entrepreneurship scheme through the support of the banking system and the marketing system. This will enhance value to the education and create the motivation for the students.
Let me share with you how to generate employment. The most important sectors for sustainable national development are Agriculture, Education, Healthcare, Water and Energy. The common thread that will run across these would be the three connectivities of PURA namely physical connectivity, electronic connectivity and knowledge connectivity. These three connectivities will lead to economic connectivity. One of the ways by which the rural agriculturists could increase their earnings is by value adding to the agricultural produce by processing and manufacturing. The farmers, either individually or through their co-operatives would market processed and value added items instead of marketing the raw materials. This increase in the value-addition taking place in the rural area itself is an indicator of the society moving towards prosperity and knowledge era.
One such sustainable development system is the mission of Provision of Urban Amenities in Rural Areas (PURA) through creation of three connectivities namely physical, electronic, knowledge leading to economic connectivity.
The number of PURA for the whole of India is estimated to be 7000 covering 600,000 villages where 800 million people live. Similarly, about 30,000 PURA Complexes would be required to convert the 3 billion rural population of the world into a vibrant economic zone and bringing Sustainable Development to rural areas. There are operational PURAs in India initiated by many educational, healthcare institutions, industry and other institutions. Government of India is already moving ahead with the implementation of PURA on the national scale across several districts of India. Now all these examples of rural development through PURA along with international experience have taken the form of a book, titled Target 3 Billion.
Employment generation through entrepreneurship
Friends, since I am in the midst of students and professors who are studying and teaching entrepreneurship, let me share some thoughts about education and entrepreneurship. A three pronged strategy is needed to make education more attractive, make it skill imparting and simultaneously create employment potential – how do we do that?
Firstly, the educational system should highlight the importance of entrepreneurship and prepare the students to get oriented towards setting up of enterprises which will provide them creativity, freedom and ability to generate wealth. Diversity of skills and perseverance in work makes an entrepreneur. It should be taught to all the students. In addition, college syllabi even for arts, science, and commerce courses should include topics and practical where such entrepreneurship is possible. Secondly, the banking system should provide venture capital right from every village level to the prospective entrepreneurs for undertaking new enterprises. When I studied the performance of major bank’s venture fund, I found a few entrepreneurs have increased their profitability many times in less than seven years generating thousands of direct jobs and tens of thousands of indirect jobs. We need a large number of such venture capital institutions who can take risk and promote entrepreneurs. EDI can bring out the success stories in the form documents highlighting venture capital funding and employment generation opportunities. Thirdly, entrepreneurs have to produce competitive products to become successful in their missions. The experts here may like to study the role of education in improving the competitiveness index rating of the country to within top ten ranks from the present below 50 situation.
Conclusion: Economic Development and Creative Leadership
In conclusion, I would like to discuss with you the linkage between national economic development and creative leadership: –
- A nation’s Economic development is powered by competitiveness.
- Competitiveness is powered by knowledge power.
- Knowledge power is powered by Technology and innovation.
- Technology and innovation is powered by resource investment.
- Resource investment is powered by revenue and return on Investment.
- Revenue is powered by Volume and repeat sales through customer loyalty.
- Customer loyalty is powered by Quality and value of products.
- Quality and value of products is powered by Employee Productivity and innovation.
- Employee Productivity is powered by Employee Loyalty, employee satisfaction and working environment.
- Working Environment is powered by management stewardship and sound management.
- Management stewardship is powered by Creative leadership.
For success in all your missions you have to become creative leaders. Creative leadership means exercising the vision to change the traditional role from the commander to the coach, manager to mentor, from director to delegator and from one who demands respect to one who facilitates self-respect. For a prosperous and developed India, the important thrust will be on the generation of a number of creative leaders from our educational institutions. Apart from this, what is needed is the spirit among the youth that “I can do it, we can do it and the nation can do it.” Our educational institutions have to concentrate on developing the leadership traits and the confidence to perform among every youth of the nation. This quality of leadership will certainly empower the 3 billion people of the world with sustainable development as its focus.
My greetings and best wishes to all of you.
May God Bless you”.