community in business

International Journal of Management and Applied Science, ISSN: 2394-7926
Volume-3, Issue-3, Mar.-2017
Research Scholar (NITIE, Mumbai), 2Associate Professor (NITIE, Mumbai)
E-mail: [email protected], [email protected]
Abstract— Max Weber and many western scholars criticized Hindu social systems and hold responsible for hindrances in
Indian economic progress. However, the various Indian communities maintained the legacy of entrepreneurship and
impression of their footprint left over on the Indian economy. This research manuscript aims to understand, are there any inter
or intra differences in the way the entrepreneurs from different community of India approaches business? Are there any inter or
intra differences in their entrepreneurial orientations (EOs) and what is the impact of socio-psychological antecedents viz.
personal values and perceived entrepreneurial environment on their EOs. India's planned economy is exhibiting remarkable
economic development. Like traditional form of Marwari-Gujarati entrepreneurship other Indian communities are also
emerging in modern version of technological entrepreneurship. This study tries to identify the challenges facing by these
communities and by its comparison their strengths and weaknesses.
Index Terms— Entrepreneurial orientation, Personal values, Entrepreneurial Community
Incredible India is one of the fastest developing
countries in the world known for her vibrant cultures,
customs, and diversity. India embodies entrepreneurs
coming from several communities like Banias,
Marwaris, Chettiars, Guajarati, Punjabis, Sindhis,
Boharies, Shettys have been very prominent Indian
entrepreneurial communities who have established
their benchmark. Each community has its own
environment which may affect the way its member
think, feel, and interact socially.
The word entrepreneurship has been perceived
differently since "entreprendre" got defined as
connotation to do something, during last eight hundred
years [1]. Meaning of the word 'entrepreneur' was
transformed from "manager of the public musical
company" [2] to "innovative & creative" ([3]-[4]),
"risk manager" ([5]-[7]), "venture creator" [8],
"Dynamo of economic system" ([9]-[10]) "resource
manager" ([11]-[13]). Entrepreneurship is the ability
to create and build something from practically
nothing. It is a knack of sensing opportunity where
others see chaos, contradiction and confusion [14].
These interactions creates specific settings in these
communities exist. Entrepreneurs hence operate either
in their natural settings or create new settings in which
they can contribute and yield profits. In very short time
span, Indian economy transformed from agricultural
entrepreneurship grew. Banias, Marwaris, Parsis,
Chettiars, Gujaratis are the major to start industrial
entrepreneurship in India. Other Indian communities
also started following the entrepreneurial trends set by
these communities and enter into the small scale
sector. Nowadays, small scale sector played a vital
role in developing the Indian economy.
It is an attitude of mind to seek opportunities, take
calculated risks and derive benefits by setting up a
venture. It comprises of numerous activities involved
in conception, creation and running an enterprise. In
the past review of literature on entrepreneurship
establishes its association with several antecedents
such as entrepreneurial traits, behavioral skills,
orientations and have been found to be associated with
entrepreneurial growth, performance, organizational
strategies, entrepreneurial strategic posture (ESP),
customers and marketing orientations [15].
The world Economic Forum summit held at
Davos-Klosters discussed in depth about the progress
made by Indian entrepreneurs in developing
innovation and start-up culture in the country. The
entrepreneurship development and appealing investors
across the world to come to India and be part of the
success story of Indian economy. This research paper
tries to understand and learn from the experiences of
various Indian entrepreneurial communities pursuing
their businesses in the light of the global changes that
are taking places in Indian economy.
In India a few communities with trading, money
lending & financing background dominated in
entrepreneurship [16]. Marwari, Gujarati, and Parsi
communities are the dominant business communities
in India [16]. About Parsis, though they are small in
number but their entrepreneurial contribution to the
country is enormous [17]. Other active communities
also include the Punjabis, Chettiars, and
Maharashtrians [17]. Marwari, from Rajasthan have
the most geographically migrated business
community; pursuing businesses all over the country
controlling almost half the industrial assets [18].
A Study on Experiences of Indian Entrepreneurial Communities
International Journal of Management and Applied Science, ISSN: 2394-7926
Volume-3, Issue-3, Mar.-2017
diversity. Marwari, Gujarati and Parsis are leading
entrepreneurial communities of India [17]. These
communities collectively controlled 62 of the 100
largest companies in 1989. Punjabis, Chettiars, and
Maharashtrians are among others active communities.
These communities share their distinctive tenors.
Gujaratis were traditionally traders with countries in
the Middle East and East Africa. Parsis, from the small
minority Zoroastrian community in India, and
traditionally played the role of intermediaries with
Europe. The Parsis of India are perhaps the world's
smallest ethnic community whose entrepreneurial
contribution to India has far exceeded their size in
numbers . Marwari, a demographically small segment
originally from the state of Rajasthan in western India,
have been the most geographically spread business
community, pursuing businesses all over the country.
Das estimated that the Marwari controlled half the
industrial assets of India [18]. The Chettiars the
community from South India once upon a time were
much bigger than the Marwari and the Parsis in terms
of capital during pre-independence . These
communities have contributed and brought some
specific values in their entrepreneurial endeavor. In
case of other Indian communities, the factors
influencing entrepreneurship were found mostly in
sociological, economical, cultural and psychological
domain. In the present times, entrepreneurships
research has move beyond big business to smaller
firms, family business and network and diasporic
community [21].
A. Entrepreneur & Entrepreneurship:
As India has been characterized by social, cultural
diversity and diversity of religions [19], it would be
interesting to study how entrepreneurs coming from
different entrepreneurial communities posit on
necessary and sufficient conditions of business i.e.
values, traits of entrepreneurs, perception of working
entrepreneurial environment and entrepreneurial
orientation. Based on these several definitions
characteristics of entrepreneur include the followings:
 Sensing and exploring opportunities,
 innovativeness & creativity,
 leadership and controlling qualities,
 resource management
 risk management,
 strong achievement desires,
 visionary thinking
B. Entrepreneurship in Developing Countries:
In any developing country entrepreneur is always at
the centre of the economic development process and
s/he has to play a major role in it. Bamfo in his
dissertation indentified government of developing
nation, education, financial institutions and
entrepreneurs as main stakeholders of the
entrepreneurship development [20].
Figure 1: The Entrepreneurship Triangle: Source: Modified
from [20]
D. Role of Personal Values in Entrepreneurship
Values represent an individual's standard or ideal
about what a person object even or activities ought to
and affect one's attitude [22]. Role of personal values
in entrepreneurship have received little attention [23].
Understanding personal values as drivers behind
businessman's choice of success criteria has
importance on health, well-being and profit [24].
Values regulate and guide human behaviour and
action in our day-to-day life. Values are embedded in
every word we select and speak, what we were, way in
which we interact, our perception and interpretation of
others reactions in what we are, say and or so on .
Among developing countries India has always been
compared to China, whether in terms of population,
economics and entrepreneurial development. China
has been requested to be far more involved in the lives
of its citizens, and certainly far more intrusive with
respect to civil liberties than India, but on the other
hand, India is much more hostile to entrepreneurship
compare to volume of its population.
C. Entrepreneurship in Indian background
India is known for its unique cultural dimensions
which may have an impact on functioning of societies,
groups, individual and businesses. Cultural practices
and people's aspirations are influence by the religion
[19]. India has been characterized by religious
Values are formed on the basis of interacts, choices,
needs desires and preferences. These comprise the
nuclei of values formation. Values have selective or
directional quality. Vitell et. al., in their study
concluded that personal characteristics (values and
beliefs) play an important role in ethical decision
making in business [25]. Vinson et. al., while,
analyzing the role of personal values in marketing and
consumer behaviour explained the personal values in
different point of views [23]. An anthropologist sees
the values in life style and cultural patterns of the
people. A sociologist focuses on ideologies and
customs, whereas psychologist examines it as attitude
and motives standpoint.
A Study on Experiences of Indian Entrepreneurial Communities
International Journal of Management and Applied Science, ISSN: 2394-7926
Values direct our thoughts and action [26]. Rokeach
defined values as, "multifaceted standards that guide
conduct in a variety of ways" [27]. Values lead us to
take particular positions on social issues and they
predispose us to favours one ideology over another. To
review ourselves and others values are used standards.
Lin studied entrepreneurial behaviour and
characterized entrepreneurial behaviour at three levels
highlighting entrepreneur's values and important
dimensions [12]. Entrepreneurs' values play an
important role in the business. Halis et. al., studied the
personal features of entrepreneur and posited that
values are the motivators and driving factors in
entrepreneurial decisions [28]. Martin & Cullen in
their Meta analytical study posited that personal belief
and values constitute the one's moral reasoning and
decision criteria [29].
An open-ended questionnaire shown in Table 1 was
administered on small entrepreneurs from nearby
industrial area and business premises of Mumbai city.
The micro and small entrepreneurs, who are involved
in various business activities like hotel,
pharmacy-medical store, jewellery manufacturer and
traders, grocery store, automobile stores etc., were
This questionnaire basically tries to identify the
perceptions of entrepreneurs about the physical
environment and to know how these entrepreneurs are
facing challenges to sustain in the business. How the
physical environment, their values, and abilities are
helping them to develop innovativeness, risk ability
and proactiveness to acquire the benefits of the
E. Entrepreneurial Orientation (EO)
Entrepreneurial Orientation (EO) of an entrepreneur is
psychological endowment which plays an important
role in entrepreneurship development [30]. Miller
reported that individual's entrepreneurial orientation
and its' dimensions viz. innovativeness, proactivness
and risk-taking ability may create an impact on
entrepreneurial decision making [31].
Kreiser et. al., studied this psychometric properties of
entrepreneurs and labeled it as entrepreneurial
strategic posture (ESP) as degree of innovativeness,
and risk ability of an entrepreneur's enable him/her to
proactively take a strategic position in the business
scenarios [32].
Aragon-Correa et. al., posited that EO plays major role
in environmental strategy and it' practices [33], where
Eggers et. al., pointed out that SME's characteristics
can be distinguished with their EO and customer
orientation [34]. A significant contribution has been
made by numerous authors emphasizing on
entrepreneurial orientation (EO) and linking it with
growth, profitability and performance of SMEs
([7]-[8]; [35]).
Volume-3, Issue-3, Mar.-2017
Table 1: The Questionnaire used for Preliminary Qualitative
This research paper specifically focuses on two of the
communities, Marwari and Gujarati, which are
well-known for their entrepreneurial knack and the
other communities which are putting their efforts in
entrepreneurial activities. This paper tries to identify
what is the specialty about these established
entrepreneurial communities? Secondly what triggers
them to become successful entrepreneur, so that other
upcoming communities can learn a lesson from these
traditional entrepreneurial communities? The
entrepreneurs from other communities are also
included so that comparison can be made. Moreover,
this article tries to understand how the entrepreneurial
environment is perceived and the challenges faced by
these entrepreneurs belonging to the different
The characteristics of the responses collected from
various respondents are shown in following table-2. It
distinguishes category of business, community of the
respondents and gender.
A Study on Experiences of Indian Entrepreneurial Communities
International Journal of Management and Applied Science, ISSN: 2394-7926
Table 2: The type of business, Communities and Gender of the
Indian entrepreneurs
The responses from 30 different micro and small
entrepreneurs were interviewed with open-ended
questions [36]. Their responses tabulated in four broad
categories viz. their (i) perception about physical
environment (ii) the ability to face the challenges,
(iii) Values and emotions and (iv) entrepreneurial
orientation i.e. innovativeness, risk taking ability and
proactiveness. Base on these responses during the
interview the following table 3 is created to distinguish
the difference among various communities.
The table-3 distinguishes various influencing factors
perceived by entrepreneurs
from different
communities. Based on this table 3 the following
inferences are made:
Volume-3, Issue-3, Mar.-2017
 Among these respondents Marwari & Gujarati
were found equip with spring-board to jump
further level of entrepreneurship. Probably
community network, cohesiveness within
community and entrepreneurial family
background, entrepreneurial values inculcated
from generation to generation may be helping
Marwari and Gujarati entrepreneurs to be
more successful and established. Other
communities like South-Indian, North-Indian
and Maharashtrian are to prepare on other
fronts of entrepreneurial knack viz.
networking, skill development and resilience
while doing business.
 Majority of the respondent replied that they
have problem of finance except Marwaris.
They always think due to lack of finance they
are not able to do a business properly. Next to
it, their main concern was lack of skilled
manpower, then cut-throat competition. They
have problem of adapting with technology
changes too. But no one could reply for their
own competitive advantages, their uniqueness,
and abilities, innovativeness. They are just
driving away with the environment. Prima
Facie they feel the environment is good for
business, but their expectations from
government and their counterparts are more.
For perceived environment we received mix
responses. Some stated its’ a good, conducive
environment for business while some said its'
volatile, ups and downs.
Table 3: Indian Communities and differences among their entrepreneurial approaches
confidence among them. They are probably in
confused state of mind, one side they are not
willing to pay to labor force well, but expect
too much from them. No provisions were
 During the entire process of interviewing these
small entrepreneurs, researcher found lack of
A Study on Experiences of Indian Entrepreneurial Communities
International Journal of Management and Applied Science, ISSN: 2394-7926
Volume-3, Issue-3, Mar.-2017
[3] Hellstrom, T., Hellstrom, C. and Berglund, H., "The
found to polish the skills of supporting staff
innovating self: exploring self among a group of
also. Averse to invest in technology adoption,
technological innovators", Journal of Managerial
they want to quick fix improvisation to tackle
Psychology, vol. 17 no. 4, pp. 267 – 286, Oct. 2002.
life problems, very low on innovation, and
[4] Carland, J., and J. Carland, "Economic development:
Changing the policy to support entrepreneurship", Academy
developed unnecessary phobia that they
of Entrepreneurship Journal vol. 10 no. 2 pp. 104-114, Apr.
cannot sustain in the front of big giant.
 Particularly Muslims and Maharashtrians
[5] Carland, J.A., Carland, J.W., & Stewart, W.H., "Seeing
what’s not there: The enigma of entrepreneurship", Journal
respondents showed that they were confused
of Small Business Strategy, vol. 7 no. 1, pp. 1-20, Jan. 1996.
while answering to the question: "How do they
[6] Douglas, Evan J. & Shepherd, Dean A., "Self-employment as
take decision? Logically or emotionally". One
a Career Choice: Attitudes, Entrepreneurial Intentions, and
of the respondent clearly stated that he was
Utility Maximization", Entrepreneurship Theory and
Practice, vol. 26 no. 3, pp. 81-90, July 2002.
confused to answer this question. Others found
[7] Tang, Z. & Tang, J., "Entrepreneurial orientation and SME
that they deal with logics.
performance in China’s changing environment: The
 Across all the communities the respondents
moderating effects of strategies", Asia Pacific Journal of
interviewed, the female participation in
Management, vol. 29 no. 2, pp.409–431, Apr. 2010.
[8] Soininen, J., Martikainen, M., Puumalainen, K., & Kyläheiko,
business found negligible. Out of these 30
K., "Entrepreneurial orientation: Growth and profitability of
entrepreneurs interviewed only two female
Finnish small-and medium-sized enterprises." International
Journal of Production Economics, vol. 140 no. 2, pp.
communicating with them their spouse's
614-621., Apr. 2012.
Zoltan Acs J., "How is Entrepreneurship good for Economic
influence on their business also could be seen.
Growth?", Progress Foundation, Zurich: Switzerland, vol. 1
This triggers to look into the gender biasness
no. 1, pp. 97-107, Oct. 2007.
in entrepreneurship separately.
[9] Marchese M. and Potter J., "Entrepreneurship, SMEs and
Local Development in Andalusia, Spain", OECD Local
Economic and Employment Development (LEED), Working
India has to go miles all together to develop
Papers, 2011/03, OECD Publishing, 2011.
entrepreneurial culture in the country. India is
[10] Jones, O., "Manufacturing regeneration through corporate
following many successful policies of developed
entrepreneurship: Middle managers and organizational
countries. Make in Germany was very old concept
innovation", International Journal of Operations &
Production Management, vol. 25 no. 5, pp.491–511, May
introduced and successfully implemented to develop
Mittlestnd (SMEs/ Family let and ownership business)
[11] Lin, W.-B., "A comparative study on the trends of
[37]. On these similar grounds India government also
entrepreneurial behaviors of enterprises in different
appealing and inviting world-wide entrepreneurs ,
strategies: Application of the social cognition theory", Expert
Systems with Applications, vol. 31 no. 2, pp. 207–220, Apr.
dreaming for breakthrough innovation to be happened
at every level of entrepreneurship [38], and other side
[12] Ananthram, S., Pearson, C. & Chatterjee, S., "Do
their small and medium level entrepreneurs’ priorities
organisational reform measures impact on global mindset
are different. Entrepreneurs exhibits different values at
intensity of managers? Empirical evidence from Indian and
Chinese service industry managers", Journal of Chinese
different levels and very low on entrepreneurial
Economic and Foreign Trade Studies, vol. 3 no. 2,
orientation and emotional intelligence.
pp.146–168, Apr. 2010.
[13] Shane, S. & Venkatraman, S., "The promise of
In planned economy India is showing remarkable
entrepreneurship as a field of research", Academy of
Management Review, vol. 25 no. 1, pp. 217–226, Jan. 2000.
progress in the entrepreneurships. Most of the
[14] Patankar V. A. & Mehta N. K. , "Literature Review on
challenges are being faced by the entrepreneurs are in
Entrepreneurship Development and its' Antecedents", 3rd
the area of finance, marketing, emerging technological
Annual Commerce Convention on Leveraging Business:
changes, infrastructure, taxations, government policies
Discovering New Horizons, Department of Commerce,
Delhi School of Economics, University of Delhi, April 2014.
etc. They are facing personal challenges viz.
S., "Projective and psychometric correlates of
entrepreneurial values and community morale also.
managerial success", British Journal of Psychology, vol. 34,
The severity is differing from community to
pp. 28-36, 1989.
community with reference to their ages and
[16] Khanna, T., & Palepu, K., "The evolution of concentrated
ownership in India: broad patterns and a history of the Indian
experiences in entrepreneurial endeavors.
software industry", In A history of corporate governance
Further, in future study can focus on community
around the world: Family business groups to professional
values, culture and perceptions about entrepreneurial
managers, pp. 283-324. University of Chicago press, 2005.
environment perceived by various entrepreneurs of
[17] Das, G., "India Unbound: From independence to global
information age", Penguin Books, New Delhi, 2000.
different communities. As in this study there are only
W., "Intercultural Aspects of Project Management
two female respondents, the gender biasness in
in India", In Rightshore!, pp. 101-120, Springer Berlin
entrepreneurship can also be studied.
Heidelberg, 2008.
[19] Bamfo, Bylon Abeeku, "Capacity Building for
Entrepreneurship Development in Ghana: Prospects and
Challenges", A PhD. Thesis, UNIVERSITY OF
[1] Long, W., "The Meaning of Entrepreneurship", American
School of Management, 2013.
Journal of Small Business, vol. 8 no. 2, pp. 47-59, Oct. 1983.
[20] Jones,
[2] Oxford English Dictionary, 1897
"Entrepreneurship", in Geoffrey Jones and Jonathan Zeitlin
A Study on Experiences of Indian Entrepreneurial Communities
International Journal of Management and Applied Science, ISSN: 2394-7926
Volume-3, Issue-3, Mar.-2017
(eds.), Oxford Handbook of Business History. New York:
[30] Miller, D., "The correlates of entrepreneurship in three types
Oxford University Press, pp. 501-528, 2008.
of firms", Management Science, vol. 29 no. 7, pp. 770–792,
[21] Sekaran U, “Paths to the Job Satisfaction of Bank
July -1983.
Employees”, Journal of Organization Behaviour, vol. 10 no.
[31] Kreiser, P.M., Marino, L.D., & Weaver, K.M., "Assessing the
4, pp. 347-359, Oct. 1989.
psychometric properties of the entrepreneurial orientation
[22] Vinson Donald E., Scott Jerome E. and Lamont Lawrence M.,
scale: A multi-country analysis", Entrepreneurship Theory
"The Role of Personal Values in Marketing and Consumer
and Practice, vol. 26 nol 4, pp. 71–94, Oct. 2002.
Behavior Can Personal Values be used to assist marketers in
[32] Aragon-Correa, N. Hurtado-Torres, S. Sharma, V.J.
determining consumer choice behavior?", Association
Garcia-Morales, "Environmental Strategy and Performance
Journal of Marketing, vol. 41, No. 2, pp. 44-55, Published by:
in Small Firms: A Resource-Based Perspective", Journal of
American Marketing, Apr. 1977.
Environmental Management, vol. 86 no. 1, pp. 88–103, Jan.
[23] Gorgievski, M. J., Ascalon, M. E., & Stephan, U., "Small
business owners' success criteria, a values approach to
[33] Eggers, F., Hansen, D.J. & Davis, A.E., "Examining the
personal differences", Journal of Small Business
relationship between customer and entrepreneurial
Management, vol. 49 no. 2, pp. 207-232, April- 2011.
orientation on nascent firms’ marketing strategy",
[24] Vitell Scott J., Nwacukwu Saviour L., & Barnes James H.,
International Entrepreneurship and Management Journal,
"The Effects of Culture on Ethical Decision-Making: An
vol. 8, no. 2, pp.203–222, Apr. 2011.
Application of Hofstede’s Typology", Journal of business
[34] Wiklund, J. & Shepherd, D., "Entrepreneurial orientation and
Ethics, vol. 12, pp. 753-760. Dec. 1993.
small business performance: a configurational approach",
[25] Lindeman, M., & Verkasalo, M., "Measuring values with the
Journal of Business Venturing, vol. 20 no. 1, pp.71–91. Jan.
Short Schwartz’s Value Survey", Journal of Personality
Assessment, 85, pp. 170-178, 2005. Available from
[35] Morse, J. M. "Designing qualitative research", In N. K.,.
Denzin & Y. S. Lincoln (Eds.), Handbook of qualitative
[26] Rokeach, M., "The nature of human values", New York: Free
inquiry, pp. 220-235. Thousand Oaks, CA: Sage. 1994.
Press, 1973.
[36] Pistrui, David, Wilfred V. Huang, Harold P. Welsch and Zhao
[27] Halis M., I. H. Ozsabuncuoglub and Ozsagir A., "The values
Jinget, "Family and cultural forces: shaping entrepreneurship
of entrepreneurship and factors that affect entrepreneurship:
and SME development in China." Handbook of Research on
Findings from Anatolia", Serbian Journal of Management,
Family Business, pp. 460-487, 2008.
vol. 2 no. 1, p.p. 21 - 34, 2007.
[37] Munshi Porus, "Making Breakthrough Innovation Happen,
[28] Martin K. & Cullen J., "Continuities and extensions of ethical
How Eleven Indians Pulled off the Impossible", Harpers
climate theory: A meta-analytic review", Journal of Business
Collins Publishers, Thomson Press (India) Ltd; New Delhi,
Ethics, vol. 69 no. 2, pp.:175 - 194, Apr. 2006.
[29] Covin, J.G. and Slevin, D.P., "Strategic management of small
firms in hostile and benign environments", Strategic
Management Journal, vol. 25, pp. 75–87, 1989.
A Study on Experiences of Indian Entrepreneurial Communities
Related flashcards
Create Flashcards