Part 1: Emerging Economy Entrepreneurship Profile
Introduction
The emerging economy entrepreneurship profile mainly illustrates some of the effective
information that helps the Imf or world bank to increase at a rapid rate. In addition, the
entrepreneurship details have been acknowledged here that help in providing all sorts of effective
information that leads to contributing to a significant impact. The emergies economies are
Russia, Mexico, India, Paksitan, Saudi Arabia, Brazil and China. These economies are
imorovimg from the state of being underdeveloped and low income backgroud. In accordance
with this, theories have been implemented as well as disccussed here, which can help to
understand the connection of the economic growth rate of the emerging economy and
enterpreneurship skills. The skills need to be effective so that it can lead to contributing to a
significant impact on the countries’ development. Therefore, it further gives a basic
understanding of the skills that have been implemented in terms of increasing the productivity
rate. The essay will highlight the emerging economic understanding of India and the growth of
people’s entrepreneurship activities of indian people about how these are impacting each other.
The rationale for being an Emerging economy in India
The idea of a market that is "emerging" is used to assess the level of progress that the countries
have achieved on the economic and commercial fronts, respectively. India is receiving a
disproportionate amount of attention as a result of its massive population, for which it is
famously known for its variety and strong GDP growth rate. In addition to this, while there has
been an increase in the spending power of consumers, there has been a widening gap in the
distribution of income. The robust manufacturing expansion, business-friendly policy changes,
infrastructural facilities, and good governance in India make it the most notable emerging
economy to invest in among all of the emerging markets. Investors look to India as the most
notable developing market to invest in because of these factors. It is anticipated that the nominal
Gross Domestic Product will reach 64.95 lakh crore in the first quarter of 2022–2023,
representing an increase of 26.7 per cent (Bhagavatula et al. 2019). With the conversion rate of
rupees to dollars in June, the nominal GDP comes out to approximately 823 billion dollars.
As a result of the nation's consistently increasing rate of growth, a number of the greatest
agricultural and industrial markets worldwide, as well as essential exports and imports, the
country is now considered to have one of the quickest economies in the world and has the
potential to become the leading global economy by the year 2050 (Imf.org, 2023). The World
Bank projected on Tuesday that India will have the fastest growing economic system among the
seven largest "emerging-market and developing economies" (EMDEs), despite the fact that
India's job expansion is anticipated to slow to 6.9% in the fiscal year 2023 and 6.6% in the fiscal
year 2024 from 8.7% in the fiscal year 2021-22" (Imf.org, 2023). Chief Economic Advisor
(CEA) V Anantha Nageswaran" stated that India has the ability to expand at a "rate of 6.5-7 per
cent" and will become an industry of "USD 5 trillion by 2025-26 and USD 7 trillion by 2030"
dependent on fluctuations in the currency rate. It is anticipated that the Indian economy will
reach the USD 3.5 trillion milestones by March 2023 (Korreck, 2019).
The information technology sector is one of the Indian industries that is expanding at the
quickest rate. The information technology sector in India has shown consistent growth over the
past few years. The fields of "artificial intelligence, data analytics, data science, and big data"
have all witnessed expansion across the nation. According to the projections made by the
Organization for Economic Co-operation and Development in 2021, the Indian economy will
surpass that of the United States in the year 2048 (Agarwal et al. 2020). If this were to happen,
India's economy would overtake China's as the second largest in the world.
Entrepreneurial Environment of India and Emerging Economy
Innovation in a developing economy is driven by entrepreneurial activity. Productivity growth is
the fundamental driver of long-term economic growth and prosperity because it increases the
material well-being of a society, boosts living standards, and improves standards of living
(Korreck, 2019). It has been said that India is going to be the next Asian miracle and a new
entrepreneurship superpower. Efforts to foster startup culture and small business growth in India
have had mixed results. The percentage of Indian citizens aged 18-64 who are either starting or
running a new business climbed to 14.4% in 2021 from 5.3% in 2020, according to the "Global
Entrepreneurship Monitor (GEM) India Report (21-22)" (Imf.org, 2023). The contemporary
entrepreneurial ecosystem in India is the product of three waves of activity with different focal
points: the information technology (IT) sector, the consumer market, and the innovation sector.
Every year, a growing number of firms are thriving in addition to those that already exist, and
this trend is expected to continue.
During the course of the past few years, India has witnessed a total of 50,000 new business
ventures, 8000–9000 of which are technology-based startups, and more than 1300 new
technology firms. The practice of entrepreneurship is beneficial to the economy because it
encourages expansion, expands consumers' access to a wide range of products and services, and
raises the general quality of life. Many business owners also have a beneficial impact on their
local communities and contribute to the improvement of their well-being by providing services
to areas that are underserved and creating products that are favourable to the environment. In the
context of both the industrialization procedure and the expansion of the economy, business
owners play the role of catalysts (Imf.org, 2023). The advancement of technology by itself
cannot result in economic growth; in order for this to occur, technological advances must first be
put to productive use by businesspeople.
It is the job of the entrepreneur to arrange and put to use various resources, including labour,
technology, and cash. Those who engage in entrepreneurial activity not only generate
employment prospects for themselves but also for others (Mangla et al. 2020). Activities related
to entrepreneurship have the potential to affect the economic performance of a nation by
introducing novel goods, techniques, and manufacturing processes to the market; in addition,
these activities can boost productivity and competition on a broader scale.
Level and Types of Entrepreneurship in India
In recent years, India has seen an increase in the number of people engaging in entrepreneurial
activities, particularly those that are driven by innovation and technological advancement. Many
studies, surveys, and policies can be used to gain an understanding of the levels and kinds of
entrepreneurial activity that exist in India. India is ranked third among the top five countries with
the largest total entrepreneurial activity, as determined by the findings of the "Global
Entrepreneurship Monitor (GEM) Report 2020-21", which compares and contrasts various
nations based on their levels of "entrepreneurship-related activities (TEA)" (Narayanan and
Huemann, 2021). There is a wide variety of business ventures that can be pursued in India, and
these ventures can be classified in a variety of ways. In India, the vast majority of new
businesses that are started up are in the form of small businesses, making up one of the most
popular sorts of entrepreneurial endeavours. Additional categories of entrepreneurship include
"running a huge company, running a scalable startup, social entrepreneurship, innovative
entrepreneurship,
hustler
entrepreneurship,
imitator
entrepreneurship,
researcher
entrepreneurship, and buyer entrepreneurship".
In addition, the government of India has adopted a number of different laws and programmes in
order to encourage and support entrepreneurial activity within the country. The objective of the
Start-Up India programme, which was initiated in 2016, is to cultivate an atmosphere that is
conducive to the growth of new businesses by providing financial incentives, tax breaks, and
other forms of support (Sutradhar, 2020). Companies like "Infosys, TCS, Maruti, and Tata" have
emerged as market leaders as a direct result of the strategy, which has caused substantial shifts in
the software and automotive sectors. Generally, there has been a surge in the quantity and kinds
of entrepreneurial activity in India, with a particular emphasis on innovation, technological
advancement, and social effects (Patwa et al. 2021). The government of India and a number of
other organisations are offering assistance and money to stimulate entrepreneurship. This has
created a climate that is favourable for new businesses to develop and be successful.
“Entrepreneurship and innovation theory
According to “Entrepreneurship and innovation theory”, it primarily aids in the development
and provision of a wide range of new ideas that increase the growth rate of job possibilities and
have a significant impact on the economy. It typically results in giving a business the right
direction, which will mostly aid in accelerating the growth rate overall rate. Building the
foundations and models of their company and structuring their association or organization in
different ways that simply scale in terms of generating revenue or their net value growth and
neglect stall-extremity without involving a tonne of extraneous costs and resources along the
way is what scaling expansion entails (Diandra et al. 2020). Scalable transactions are more
beneficial and efficient since they prepare for all potential outcomes and ensure that they can
function under different conditions.
Figure 2: Entrepreneurship and innovation theory
(Source: Kakouris et al. 2021)
As a result, if their business has taken expandability into account, they expect to succeed despite
any ups and downs of being manufactured. "Capital, speed, and efficiency" are three
commodities that serve as the foundation for measuring an organization. The significant and
frequently used source of finance for small and medium-sized businesses is the vital loans from
the world bank. This finance can cover a lot more customers and clients without raising
expenditures proportionately. As a result, their entrepreneurial endeavors are "scalable" and
develop into increasingly profitable ventures. Their money comes from personal savings. An
important and typical source of finance for small enterprises is individual savings (Kakouris et
al. 2021).
Institutional theory and its implications in India’s entrepreneurial environment
The emerging economy can be considered as an economy which is developing profoundly and
the development of the economy reflects its entrepreneurial aspects. The rapid growth of the
GDP rate, enhancement of debt and equity market liquidity with a proper financial structure of
the country represents the emerging market. Therefore, the six significant concepts of
Institutional theory such as “value infusion, diffusion, rational myths, loose coupling, legitimacy,
and isomorphism” are driving the structure of India’s entrepreneurial structure significantly
(Karbhari et al. 2020). These social factors are shaping the emerging atmosphere of the country.
The normative pillars such as the morality and ethical aspects, work cultures, habitats and norms,
duty and sense of responsibilities and moral obligations have forced India’s organisation or
entrepreneurial venture to undergo changes.
Besides, the cognitive pillars such as cultural systems, assumptions, beliefs, values, and social
identity have been followed in the organisation which determines how the entrepreneurial
aspects can be emphasised with greater revolutionary potential in India (Glynn and D’Aunno,
2023). Furthermore, the regulative pillars such as the legal rules, policies and regulations create
fear and coercion among the entrepreneurs which also helps entrepreneurship to be more
profound in the innovations and implications in the greater field (Risi et al. 2023). Therefore, it
can be concluded that these aspects have shaped India to be profoundly shaped its
entrepreneurial structures which have made this country innovative and progressive to be
determined as the emerging economy in the world.
Part 2: Emerging Economy Venture Plan
Description of business idea
The business idea that has been chosen for the development of the business plan is to set up a
traditional arts and crafts centre through which the globe can be assessed. It can be elaborated
that India’s rural areas will be explored and there are many unexplored arts and crafts that are
remaining only among the locals. Their ideas and visions will be accumulated to build a business
where clothes and jewellery will be manufactured according to those. Furthermore, Indian
traditional food items and culinary dishes will be explored so that many people can get access to
the authentic roots of India. The business sector can be noted as the Indian handloom, arts and
crafts market (Bayraktaroğlu, 2020). Furthermore, some products will be manufactured based on
rural structures and components which will be promoted significantly so that consumers can buy
those products. Initially, the business will target the national consumers and in the later stage, the
global consumers will be assessed through some more matured promotional and marketing
activities. The name of the venture can be given “Trad-India” which is the abbreviation of
“Traditional India”.
Target investors for the business
The business is targeting governmental investment as it is focusing on the development of rural
life and its standards. Governmental funds can be found insufficient to grow and develop this
business thus this entails the funds from the bank loans to build the fundamental set-up of this
business (Pradhan, 2019). There are too many governmental schemes to support these kinds of
ventures of Indian handlooms and arts and crafts such as “Ambedkar Hastshilp Vikas Yojana”,
“Mega Cluster Scheme”, “Marketing Support and Services Scheme” and “Research and
Development Scheme” (IBIF, 2021). Therefore, it is expected to receive profound support from
the government for this business
Value creation and capture
The business will incorporate a phenomenon so that a positive shift can be implied in the village
life of India as there are too many unexplored talents and scopes that can be globalised through
proper structuration (Bayraktaroğlu, 2020). The affordability will be maintained in the business
and various ranges will be implied in the price structures. The business model entails the scopes
to generate B2B and B2C business with local business institutions, shopping malls, websites and
e-commerce platforms (Yadav et al. 2020). Consumers can receive the purity of the rural
atmosphere through the brand within preferred ranges.
The business will use traditional marketing procedures by involving local merchants so that the
products can be assessed in the shops and also will be promoted through digital presence. The
social media platforms will be adequately followed so that people can avail the creation of the
business from distance (Kanungo et al. 2021). Therefore the value will be captured for this
business through both traditional and digital procedures to avail the scopes of market
potentiality.
Customers
People between the age group of 18 to 65 will be the target consumer group as this business
offers various kinds of products such as basic fashionable designed products to kitchen-friendly
gadgets and items. Therefore, every age group will find their convenience with the enormous
product ranges of “Trad-India”.
Market Analysis
In India, there are more than 3,000 distinct types of handicrafts. Artisans can be found all over
the country working with materials such as" papier-maché in Jammu and Kashmir," "thangka
artwork in Ladakh and Himachal Pradesh", "phulkari and bagh textiles in Punjab", "brassware in
Haryana", "basket-weaving in Uttaranchal", "chikankari and zardozi work in Uttar Pradesh",
"blue pottery and block printing in Rajasthan" and many more (IBIF, 2021).
India has the ability to turn this industry into one worth multiple billions of dollars thanks to the
country's large population of artists and the great variety of craft talents that they possess. In the
fiscal year 2019–20, India's handicraft exports reached Rs. 25,706.3 crore, which is equivalent to
$3.5 billion USD. The following is a list of the numerous types of handicrafts that are exported:
Products made of wood, for a price of 3,061 crores (or 420.45 million dollars) are generating
sales (IBEF, 2021). Besides, products that are embroidered and crocheted are growing with a
valuation of Rs. 2,334 crores (US$ 320.51 million). Various handicrafts were valued at Rs.
3,770 crores, which is equivalent to $517.68 million USD.
Textiles and scarves that have been hand-printed, are priced at Rs. 1,128 crores (US$ 154.96
million). A price of Rs. 6,850 crores (US$ 94.08 million) has been set for imitation jewellery. At
a price of Rs. 1,824 crores (about USD $250.52 million), art metal wares are also getting market
potential in the national and international fields (IBEF, 2021). The United States of America, the
United Kingdom, the United Arab Emirates, Germany, France, Italy, the Netherlands, Canada,
and Australia are among the most important countries that import handicrafts (Asoba and Mefi,
2020). As the handicraft industry grows and picks up steam, India stands to benefit immensely
from this development.
Sustainability of the idea
The idea will be dealing with completely new aspects which are not significantly familiar though
the huge span of rural Indian life is proof that this business can merge profoundly. For several
decades, the handloom and handicraft sector has served as India's rural areas' primary economic
support system (Guha et al. 2021). After agriculture, it is one of the most important employment
generators in the country, and it offers essential means of subsistence to both the country's rural
and urban populations (Das, 2020). Craftsmen typically grow their own raw materials, and the
industry is recognized as a pioneer of environmentally friendly zero-waste initiatives. The sector
operates on a business model that is self-sustaining, and craftsmen often grow their own raw
materials. Seven million skilled craftspeople call India their home. Yet, information obtained
from unofficial sources suggests that the number of artisan members may be as high as 200
million (IBEF, 2021). The informal and disorganised nature of this sector is to blame for the
vastness of this range of possibilities and the discrepancy in the number.
The country of India enjoys a competitive global edge as a result of the intangible and tangible
aspects of its craft legacy, as well as the one-of-a-kind characteristics of its various regions
(Asoba and Mefi, 2020). With the appropriate kind of assistance and climate for doing business,
the Indian handicraft industry has the potential to become a marketplace worth a billion dollars.
Increasing one's access to new markets can be accomplished by cultivating the inherent value of
craftsmanship and opening up new paths for item design and manufacture through the
development of a methodical approach (Thomas, 2020). With this, leveraging on e-commerce
both online exposure and process efficiency will continue to be an essential factor in the success
as the sector continues to expand and gain additional traction.
Revenue
The major revenue will be generated from the sales will be generated through online and offline
business marketing activities. The initial period of the business will be moved through the lower
amount of profits and in the further years the price will be raised by 3% to generate more profit
in the business.
Conclusion
Therefore, these are the proposed steps to build and develop Trad-India as a handcraft business
brand based on the emerging market of India. These factors will be evaluated in the business in
creating values and capturing the uttermost potentiality from the market.