Int. J. Entrepreneurship and Small Business, Vol. 53, No.
1, 2024 137
Book Review
Reviewed by Akhilesh Kumar Sharma
Email: aksbhu2608@gmail.com
Indian SMEs and Start-Ups: Growth through Innovation and
Leadership
by: Léo-Paul Dana, Omvir Gautam, Ashish Gupta and Naman Sharma
Published 2023
by World Scientific Publishing Co Pte Ltd.,
5 Toh Tuck Link, 596224, Singapore, 376pp
ISBN: 978-981-12-6954-7
ISBN: 978-981-12-6956-1 (ebook)
The entrepreneurial ecosystem in India has undergone tremendous changes fostering the
growth of small businesses and start-ups in the recent few decades. Small and medium
enterprises (SMEs) are the breeding ground of entrepreneurial activities in the country.
Start-ups are enterprises transforming scientific innovations into business ideas and
products. SMEs and startups are pivotal in the industrial transformation of the Indian
economy. The book entitled Indian SMEs and Start-ups: Growth through Innovation and
Leadership’ edited by Léo-Paul Dana (Dalhousie University, Canada), Omvir Gautam
(Vishwakarma University, India), Ashish Gupta (Indian Institute of Foreign Trade, India)
and Naman Sharma (Indian Institute of Foreign Trade, India) brings a comprehensive
picture of growth of Indian SMEs and start-ups through innovation and leadership. It
consists of 16 chapters contributed by many reputed researchers and scholars.
Chapter 1 entitled SMEs and Start-Ups: The Growth Engine of India is contributed by
Léo-Paul Dana and Naman Sharma. This chapter discusses about growth trajectory,
opportunities, challenges, and the road ahead for small businesses. It also discusses about
start-ups in India, their transformation to unicorns, and challenges in their upgradation. It
highlights that building a start-up firm is challenging for entrepreneurs as their challenges
are different in the Indian context. However, passionate entrepreneurs can transform their
start-ups into unicorns with patience and dedication.
Chapter 2 entitled The SME Exchange: Issues and Challenges Faced by
Entrepreneurs and Measures to Overcome, contributed by Renu Bala, attempts to
examine the problems and challenges faced by the entrepreneurs regarding SME
exchange procedures through collecting information from 240 entrepreneurs of the IT,
banking and pharmaceutical sectors. It observes that challenges faced by entrepreneurs
regarding SME exchange procedures vary across sectors. Entrepreneurs in the IT sector
face challenges pertaining to complex procedures of listing, lack of experience, and lack
of modern skills. In contrast, entrepreneurs in the banking sector faced issues such as lack
of experience, complex procedures of listing, and lack of modern skills. However,
entrepreneurs in the pharmaceutical sector find difficulties in the procedure of listing,
lack of experience, and lack of finance. It also suggests that various measures can be
Copyright © 2024 Inderscience Enterprises Ltd.
138 Book Review
adopted to solve such kinds of issues including reducing compliance with listing
procedures, using social media for advertisements, conducting business conferences and
seminars periodically, providing tax incentives to the investors, and minimising the risk
factor.
Chapter 3 entitled Innovative Technologies’ Adoption in Indian Start-ups and SMEs,
contributed by Megha Sharma and V.K. Singh, tries to explore and provide insights about
the importance of the latest innovative technologies and their usage by the start-ups and
SMEs by reviewing the literature from different sources including Scopus, Web of
sciences, Emerald, Springer, Elsevier and online articles on related subjects. It also
analyses the unknown facts of innovative theories and their impact on Indian start-ups
and SMEs. It observes that technological implementation is an important tool for the
growth and success of start-ups and SMEs in the Indian market. The use of the latest
technologies has modified the purchasing behaviours and expectations of customers from
the market. Start-ups and SMEs may use AI, block-chain technology, and machine
learning, to successfully attract and satisfy customers. It may also enable them to
compete with large organisations and improve their business.
Chapter 4 entitled Export Performance and Resource Capabilities of Indian
Manufacturing MSMEs, contributed by Areej Aftab Siddiqui and Kashika Arora,
identifies 14 characteristics that influence the export performance of micro, small and
medium enterprises (MSMEs) using the resource-based-view (RBV) approach. It
uncovers a variety of resources and competencies connected to the export success.
Strategic resources are pivotal for increasing the export from the MSME sector. It
highlights that the top two barriers to internationalisation experienced by MSMEs are
lack of knowledge and management competencies. It also suggests that the foreign trade
policy of India should focus on exploring new ways to increase the global footprints of
small businesses. The new generation entrepreneurs with potential to build global
competitive firms should be encouraged.
Chapter 5 entitled Leadership and Entrepreneurial Skills for SMEs: A Case of RP
Inc., contributed by Nidhi Gupta and Ragini Tyagi, describes the entrepreneurial
competencies of Mr. Pankaj Tyagi, founder of RP Inc., in creating and leading an
entrepreneurial venture. It also discusses and analyses the VRIO model of the company to
know the business performance and how the entrepreneur utilises his resources optimally
by applying his entrepreneurial and leadership skills. An exploratory study was done to
know the types of skills required for the growth and management of SMEs, for which an
unstructured interview with an entrepreneur was conducted to get in-depth knowledge
about entrepreneurial competencies, which was supported by a literature review. It
observes that entrepreneurial skills, knowledgeable market orientation, and networking
among entrepreneurs have a constructive and visibly identifiable positive outcome on
entrepreneurial competency. There is a strong need to focus on entrepreneurial and
leadership skills for managing and growing SMEs.
Chapter 6 entitled Does Entrepreneurial Orientation Predict Small and Medium
Enterprise Alliance Formation? Evidence from the Indian Manufacturing Sector,
contributed by Rohit Prabhudesai, Ch. V.V.S.N.V. Prasad, Nitin Pangarkar,
Abhishek Kumar Sinha and Akshay Bhat, attempts to determine how the entrepreneurial
orientation of an SME influences its alliance formation patterns. It is based on the
primary survey of 127 manufacturing SMEs located in Goa. It finds that entrepreneurial
orientation functions as a unidimensional construct and has a strong positive influence on
the SME alliance formation tendency. SMEs, whose decision-makers have a higher
Book Review 139
entrepreneurial orientation (i.e., exhibiting a higher propensity towards innovativeness,
proactiveness, and risk-taking), will have a higher possibility to form alliances and
become competitive in the market. Further, the size of an SME also positively affects its
alliance formation tendencies indicating that the greater the size of an SME, the greater
the tendency for alliance formation.
Chapter 7 entitled COVID-19 and Learning Experiences of Women Entrepreneurial
Leaders: An Indian Context, contributed by Meghna Chhabra and Monika Agarwal, tries
to explore the motivating factors for women entrepreneurs to continue their businesses
amid COVID-19 in India and the leadership style adopted by them during the pandemic.
It is based on qualitative research methods. Among many, the factors that motivated
women entrepreneurs amid COVID-19 to continue their business include support from
family and society for enhanced homely responsibilities, the favourable nature of the
business in which women are operating, considering adversity as an opportunity and self-
assessment of their skills because of the unprecedented situation of COVID-19. It gives
valuable insights by establishing that support from the family and society, favourable
nature of business, taking adversity as an opportunity, and therefore recognising their
skills are enabling factors for women to continue their businesses against the adverse
situation of the pandemic.
Chapter 8 entitled Nurturing Dynamic Competencies: An Innovative Approach for
SMEs’ Sustainable Growth, contributed by Swati Sharma and Jugal Kishor, deals with
challenges faced by SMEs in the formulation and execution of innovative strategies. This
chapter is primarily built upon the resource perspective of the enterprises. SMEs face
challenges in maintaining sustainable growth due to a dearth of resources and
competencies. It outlines the relationship between innovative strategies and dynamic
competencies. It highlights that constructive innovative strategies that create dynamic
competencies (viz., innovative resource recognition, resource acquisition, networking
capabilities, and path aligning) are crucial in achieving the sustainable growth of SMEs.
Through thematic analysis approach, it also provides insight about the probable dynamic
competencies of SMEs.
Chapter 9 entitled EdTech Start-Ups: A Mode of Transformation in Teaching
Learning, contributed by Prateek Khanna, Reetika Sehgal, Mayank Malviya,
Anukaran Khanna and Ashish Mohan Dubey, aims to find out the critical factors that lead
to the success of EdTech start-ups. The COVID-19 pandemic has brought an
unprecedented opportunity for the educational technology (EdTech) sector in India by
offering virtual interaction possibilities in place of traditional face-to-face interactions
between students and educators. There has been a paradigm shift to the unconventional
mode of online learning. The New Education Policy (NEP), introduced in 2020–2021,
also offers a policy impetus to the EdTech sector in India. This chapter presents the
historical evolution of the education system and how technology has played a major role
in the development of the EdTech industry. Through a widespread literature review, it
also attempts to identify six factors (viz., availability of wider resources, accessibility,
customised and blended learning, technology as a tutor, real-time support, and NEP
implementation) that can be critical in the success of EdTech start-ups.
Chapter 10 entitled Digital Health Innovation: Emergence of Digital Medical
Consumer (DMC) and Holistic Digital Health Start-ups (HDHSs), contributed by
Girish R. Kulkarni, Daxesh M. Patel, Supriya Singh and Punit Saurabh, tries to study the
changing behaviours of medical consumers in the light of digitalisation in healthcare.
140 Book Review
Digitalisation across the healthcare industry has penetrated significantly in the form of
telemedicine, e-diagnostics, and e-pharmacy. Embraced by internet-savvy citizens, the
newer technological platforms have led to the transformation of healthcare consumers
into three subsets – digital medical consumer (DMC) and price-sensitive medical
consumer (PSMC) along with the existing category of traditional medical consumer
(TMC). Along with reviewing the Indian healthcare sector, health informatics, and the
impact of COVID-19, the chapter postulates and proposes the conceptual framework for
different types of medical consumers. Anticipating the evolution of HDHSs as a result of
the government’s push towards digitalisation in health, the government’s willingness to
create a digital health infrastructure, and the emergence of digital medical consumers, it
also deliberates on the future of digital health innovation and presents the conceptual
framework for holistic digital health start-ups.
Chapter 11 entitled A Study of Perspectives on the Growth, Strategy, and Branding in
Indian MSMEs, contributed by Amol Randive, Jayashree Vispute and
Shailendra Goswami, aims to understand how entrepreneurs perceive business growth; to
assess their strategic orientation in managing enterprises; and to understand the role of
branding in the growth of enterprises. Using a qualitative method for analysis, it is based
on data collected through focus group discussions with 28 MSME owners and a review of
74 selected sources including peer-reviewed journals, government reports, and
publications by renowned consulting firms. It shows that challenges faced by MSMEs
vary across types of firms, industries, sectors, stages in the life cycle, market scenarios,
and internal environment. The crucial factor for the growth and follow-up actions to build
capabilities is the intent of the entrepreneur. It also discusses challenges faced by Indian
MSMEs, alternate growth models from across the globe, and critical success factors for
enterprise’s growth including highlighting a few best practices in marketing and branding
including entrepreneurial marketing, branding initiatives, and digital marketing.
Chapter 12 entitled Factors Influencing Social Media Adoption by MSMEs: Using the
UTAUT Model, contributed by Piali Haldar, tries to identify the factors influencing social
media adoption by MSMEs to uphold their business using unified theory of acceptance
and use of technology (UTAUT). It is based on an analysis of an online survey of 338
owners/managers of firms located in the National Capital Region in India. Findings show
that more than 63 percent of variance towards intention to adopt social media by MSMEs
is explained by UTAUT. The adoption of social media by MSMEs has a significant
positive impact on their performance and profit in many ways including marketing,
branding, research, customer relationship management, service provision, and sales
promotions. Factors affecting the adoption of social media include social influence,
facilitating conditions, and performance expectancy.
Chapter 13 entitled Free and Open-Source Software as an Innovation Stimulus for
SMEs – An Indian Perspective, contributed by Ruchi Jain and Ruchika Jeswal, focuses on
the growth of free and open-source software (FOSS) available for the MSMEs, their
potential for MSMEs growth and challenges faced by implementing FOSS in Indian
MSMEs. The concept of FOSS is grounded in the principle of sharing. The source code
of FOSS is created as a collaborative effort of individual developers and contributing
communities inspired by the idea of providing creative inputs and efforts for making the
source code and software better than the previous versions. In the last two decades, it has
become one of the most inspiring developments. This chapter also proposes FOSS as the
plan for the commoditisation of currently locked-down technologies owned by the tech
giants.
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Chapter 14 entitled With Love for Loved Ones (WLFLO) – A Start-Up Creating Value
and Opportunities, contributed by Supriya Singh, Punit Saurabh, Pradeep Kautish and
Girish R. Kulkarni, discusses a case study of a social enterprise – WLFLO handicraft
LLP which manufactures world-class, eco-friendly and handicraft jute products. Along
with describing the entrepreneurial journey of Mr. Devender Singh who started WLFLO
Handicraft LLP in August 2016, it also discusses its business model, challenges faced by
it, and its future goals.
Chapter 15 entitled Systematic Literature Review on Retention in Entrepreneurial
Firms: A Step Towards Sustainable Development, contributed by Shivangi Saxena and
Divya Goel, aims to develop a framework for understanding the factors that affect
employee retention in entrepreneurial firms using a systematic literature review of 19
peer-reviewed papers. Among the many factors influencing the growth of SMEs and
start-ups, leadership and the team/people are pivotal factors in differentiating and driving
the growth of a firm. In the case of small firms, retention of key employees is very
challenging. Among five factors (viz., employee, employer, HR policies, organisation,
and external factors) influencing retention of employees identified through a systematic
review of literature, this chapter suggests that HR policies can play a major role in the
retention practices of small service firms.
Chapter 16 entitled Entrepreneurial Leadership and Designing Industry 4.0 Business
Models: Towards an Innovative and Sustainable Future for India, contributed by
Slimane Ed-Dafali, Muhammad Mohiuddin, Md Samim Al Azad and Aidin Salamzadeh,
aims to investigate the importance of entrepreneurial leadership in redesigning and
reengineering innovation of business models in the age of Industry 4.0. It discusses the
theoretical background of 4th industrial revolution and entrepreneurial leadership, and
illustrates how emerging technology and the digital era affect the innovation of business
models by redesigning and reengineering its processes and structures. Through an
extensive literature review, it tries to define the type of entrepreneurial leadership needed
to design the Industry 4.0 business models. It leads to an in-depth understanding of the
pathway between the business model innovation and Industry 4.0 through entrepreneurial
leadership. The chapter also brings out a new business model framework to manage and
shape the scale, speed, and complexity of technological and innovative changes based on
efficiency-centred and novelty-centred design of business models.
The book successfully highlights the innovation and leadership issues related to
Indian SMEs and start-ups by discussing their various aspects including the role of SMEs
and start-ups in the Indian economy, SME exchange, innovative technologies,
Industry 4.0, SME alliance formation, COVID-19 and women entrepreneurs, resource
capabilities, dynamic competencies, EdTech start-ups, digital health innovation, strategy
and branding, social media adoption, free and open source software, entrepreneurial
leadership, employee retention, and social entrepreneurship. Apart from discussing
theoretical aspects, it also includes empirical analysis and case studies to illustrate issues
related to innovation and leadership for the growth of small firms. Though the scope of
the book is limited to organised SMEs and start-ups only which represents a very small
fraction of MSMEs in the country, the book can be a very useful resource for various
stakeholders including entrepreneurs, policymakers, researchers, teachers and students. It
helps in enhancing insights about the Indian SMEs and start-ups.
