Module 6

Emerging Trends in Entrepreneurship Development

Emerging Trends in Entrepreneurship Development

 Start-up accelerators
 Student sandbox and business lab
 Crowd funding
 Coworking spaces
 Entrepreneurship degree

 Start-up accelerators: A startup accelerator is a mentor-based program that provides

guidance, support and limited funding in exchange for equity. There are hundreds of
accelerators worldwide that have been instrumental in helping launch important startups.

 Student sandbox and business lab: a controlled environment supervised by a regulatory

authority within which existing regulations are relaxed or removed to allow businesses to
more freely experiment with new products and services.

 Crowd funding: It is a form of fundraising where a business asks the public for a
contribution, usually in exchange for equity in the company. Crowdfunding usually
entails a private company asking large numbers of people for small contributions.

 Co-working spaces: Co-working is a term used to describe a working arrangement in

which people from different teams and companies come together to work in a single
shared space.

 Entrepreneurship degree: An entrepreneurship degree teaches you how to launch a new

business venture. Entrepreneurship classes help hone your leadership, marketing, and
negotiation skills. Most successful entrepreneurs are older and have years of work
experience.

Digital Entrepreneurship

Digital entrepreneurs pursue business ventures exclusively on a digital platform. Compared to

traditional entrepreneurs, digital entrepreneurs offer different products and services and use
different types of funding and marketing strategies.

Examples of online businesses include e-commerce, content creation and blogs, but there are
many possibilities to build a business online.
Entrepreneurs have existed for thousands of years, dating back to the earliest instances of the
bartering system. Digital entrepreneurship, however, is a new phenomenon. As society has
progressed and novel technologies continue to evolve, so has the definition of what it means to
be a modern entrepreneur. This is an exciting time to start and grow a business, particularly in
the online space.

It’s important to know the specifics of what digital entrepreneurship is, the characteristics and
examples of digital entrepreneurship and how it differs from traditional entrepreneurship
especially if you’re hoping to build a business venture in the digital space.

Meaning
A digital entrepreneur pursues a business venture that's built exclusively on a digital platform.
Digital entrepreneurs rely on web-based tools and information to build and grow online
businesses — generally, digital services. These kinds of entrepreneurs are distinctly modern, as
they take advantage of mass digitization to build new businesses in the online space.

Examples: E-commerce businesses, E-books, YouTube channels, Blogs, Social media

influencing, Online courses, Online content creation, Digital technologies, Digital services and
consulting.

Characteristics of digital entrepreneurs

There are several distinct characteristics of digital entrepreneurs. They include:

 Global vision: Visualizing how to globally grow an online business and reach scale.
 Technological competence: Managing the digital tools and platforms on which a new
business is built, and using this knowledge to strategize for growth.
 Adaptability: Nimbly keeping up with constantly evolving technology and new
additions to the online space.
 Effective communication: Leading a team with different tasks to work toward a shared
goal.
 Open-mindedness: Staying open to new ideas and tools as technology changes and
evolves.

Benefits of Entrepreneurship

 Scalability: Most digital entrepreneurs start by fulfilling a niche market or inventing a

product or service, then scaling the business to a wider audience once its achieved some
 measure of success. Working with digital markets can allow an entrepreneur to scale a
company in a way that’s both productive and cost-effective. This potential for growth
without having to expand a business physically or rent additional space may encourage
digital entrepreneurs to take more opportunities to scale the business, since the level of
risk may be lower than with a traditional business.

 Adaptability: Digital entrepreneurship also allows business to pivot their services,

branding and pricing without adding significant turnaround time. For example, a venture
of this sort may adjust its pricing by altering online marketing information rather than
investing in changing physical advertisements. It could also rebrand by focusing on
changing aspects of its website, marketing materials and products rather than adjusting
the layout or design of a physical location.

 Accessibility: while location can be a primary factor in determining the success of a

physical store, online shops and businesses are typically accessible from customers’
homes. This means that the potential customers base for an entrepreurial endeavor is
initially much larger, though it may rely more on advertising to get website traffic. This
factor can help smaller size operations complete with larger companies for customers
without the necessity of growing to the same size as their competition.

 Profitability: starting a business on the internet can allow a company to scale its
earnings, such as by earning revenue from advertisements online by receiving a
percentage of profit each time a user clicks, such as by earning revenue from a
advertisements online by receiving a percentage of profit each time a user clicks, views
or interacts with the advertisement. A digital company can also market to potential
customers by creating content, such as videos detailing products or services. With a
website, it may also be easier to implement subscription payment methods for services or
renewable products, which can help secure a consistence customer based.
Challenges and opportunities of Digital Entrepreneur

Challenges of Digital entrepreneur

 Weak institutional infrastructure: Inadequate infrastructure is a constraint on growth
worldwide, particularly in developing countries. Infrastructure services are often
inadequate to meet demand, resulting in congestion or service rationing. Infrastructure
services are also often of low quality or reliability, while many areas are simply un-
served.
 Lack of human capital: Human capital refers to the gap between the human capital
requirements of a company or organization and the existing human capital of its
workforce. This gap can lead a company towards inefficiencies, inability to achieve its
goals, a poor reputation, fraud, financial loss, and eventual closure.
 Absence of necessary funding: Necessity Funding can provide you the money you need
now to cover life's necessities, such as paying your bills, rent or mortgage, medical
procedures, and other living expenses, as you wait for your lawsuit case to settle.
 Social issues: Necessity Funding can provide you the money you need now to cover life's
necessities, such as paying your bills, rent or mortgage, medical procedures, and other
living expenses, as you wait for your lawsuit case to settle.
 Lack of online payment methods: Online payment allows you to pay money via the
internet. Buyers will use this type of payment when they purchase goods online or
offline. They can use different types of online payment methods, including debit/credit
cards, wire transfers, net banking, and digital wallets.
Opportunities of Digital Entrepreneur
 Family or personal connections: family connection means a connection identifying an
individual by reference to members of their family.
 Selling niche products: A niche product is a product targeting a specific section of a
larger industry and market. Niche products are often (but not always) more expensive
than more generic products. Because niche products are fulfilling a particular specialist
demand, we find that demand tends to be more price inelastic.
 Education or developing a skill sets: t is indeed a practical approach to learn, apply and
develop skills through practical experience while understanding the learning system. Skill
development program encourages children to think, evaluate and focus on what they are
learning.
 Rise of tech devices: Technological progress refers to the discovery of new and
improved methods of producing goods. Changes in technology lead to an increase in
productivity of labor, capital, and other factors of production.
 3 Fs: Friends, Family, Funds

Digital entrepreneurship vs. traditional entrepreneurship

There are a few similarities between both traditional entrepreneurship and digital
entrepreneurship, such as having a strong business idea and developing a solid business plan.
However, these two types of entrepreneurship and approaches to business ownership differ in
several significant ways.

Basis Digital Entrepreneur Traditional Entrepreneur

Business Presence Online business Physical business
Business Model Does not need funding for brick- Needs funding primarily for a
and-mortar space, but rather for physical space and tactile goods,
development of digital tools and rather than to build online
services
Marketing Relies more on social media andCan rely on social media and digital
Strategies digital marketing to reach intended
marketing but may also be helped
audience by print advertising
Time Availability Business can be accessed 24/7 Business hours are confined to a
specific time
Product Access Products and services accessed Physical inventory accessed in
online versus in person person
Tips for digital entrepreneurs

Again, digital entrepreneurship is different from traditional entrepreneurship, so it may require a

unique approach when you get started. Conducting thorough research into the digital business
world can shed light on how to best begin a new business in the online space.

The following essential tips can help entrepreneurs establish and further their own business
ventures:

 Find a niche: Create a business in a sector with a defined need and customer base and
become an expert in that specialized space.
 Build your brand's online presence: Create social media accounts and blogs, and
update them consistently so customers have something new to engage with.
 Create a user-friendly website: Your website will be your digital front door, so create a
simple, mobile-friendly website that will give customers the information they're looking
for.
 Utilize email marketing: To reach customers where they are, consider creating an email
newsletter to keep them up to date with your business. You may use offers to incentivize
clients to work with you.
 Develop your digital skills: Keeping your digital skills up to date will enable you to
utilize new developments to keep your business appealing and competitive.
 Explore partnerships: Once your business is established, think about exploring
complementary businesses that operate in similar spaces to potentially open yourself up
to new customers.
 Provide strong customer service: As digital businesses don’t often interact with their
clients in person, having an exceptional customer-service presence online is vital in
keeping customers happy and loyal.

Social Entrepreneur
Meaning
A social entrepreneur is a person who pursues novel applications that have the potential to solve
community-based problems. These individuals are willing to take on the risk and effort to create
positive changes in society through their initiatives.
Or
A social entrepreneur is an individual who starts an organization or enterprise to solve
community-related issues locally or globally. They work toward poverty reduction, restoration of
children’s rights, access to health care and financial services, women empowerment, and
community development.

Characteristics of Social Entrepreneur

 Passionate For Social Change – They are passionate about their ideas and projects to
achieve social change. Also, they address social issues to improve the lives of
disadvantaged people within communities.

 Innovative Solutions – They identify and solve social, financial, and environmental
problems using effective solutions. Besides, they practice innovative approaches to
address public issues and bring positive change in society.

 Self-Supportive & Financially Sustainable – They do not depend on government

subsidies to survive and generate capital to further the social cause. However, their
primary focus remains to maximize social satisfaction.

 Scaling Improvement – They primarily focus on expanding the scope of their actions to
increase their social influence. As a result, they persuade societies, large corporations,
and governments to support social entrepreneur ideas of social transformation.

 Entrepreneurial Approach – They identify market possibilities, gather resources,

develop creative solutions, and have a long-term impact on society. Also, they use
feedback to improve their performance and stay persistent in their efforts to meet.

Motivation for a Social Entrepreneur

 Intrinsic motivation: Intrinsic motivation is the act of doing something without any
obvious external rewards. You do it because it's enjoyable and interesting, rather than
because of an outside incentive or pressure to do it, such as a reward or deadline.
Supporting and Evaluating Social Entrepreneurship in India.
 The desire to change something in the world: The entrepreneur's motivation stems
from the desire to change. The desire to change drives the entrepreneur to act, promote,
and overcome the difficulties.
 The need for constant change: Often it's because they're not happy with their current
situation. If we feel like our current situation may not be the best possible option, then we
are motivated to look elsewhere and find a better alternative.
 Professional development: Professional development refers to instructors developing
and improving their skills to better meet the needs of their students. Approaches to
professional development include reviewing case studies, consultation and coaching,
mentoring and technical assistance.
  Financial independence: Financial independence is the status of having enough income
or wealth sufficient to pay one's living expenses for the rest of one's life without having
to be employed or dependent on others.
 Passion: Entrepreneurial passion is the obtainable, conscious, and strong positive
emotions that individuals exhibit when they perceive that their entrepreneurial activities
are consistent with their own entrepreneurial identity during the process of participating
in entrepreneurship

The social role and positive impact in local community:

 Leadership
 Skills
 Motivation
 Marketing
 Support
 Management
 Coordination
 Innovation
 Financial
 Culture

Rural Entrepreneur
Meaning of Rural Entrepreneur
Rural entrepreneurs refer to those who perform the business activities in. rural areas with the
exploitation of local resources. Rural entrepreneurs expand the purchasing power and Standard
of living of the people by offering employment opportunity to the people in rural areas.

Rural entrepreneurship refers to the development of a new enterprise which pioneers new
products and services, creates a new market for its offerings or uses advanced technology, in the
rural area.
In simple terms, the entrepreneurship which springs up in non-urban areas is termed as rural
entrepreneurship. This leads to the establishment of industrial units in rural areas.

Need for Rural Entrepreneurship

The reasons for the rural entrepreneurship are discussed as under:

 As the rural industries are labour-intensive, they tend to have a high possibility of
generating employment, which acts as a corrective measure to a number of problems
causing due to unemployment stemming in the rural areas.
 Rural industries have a comparatively high potential of generating income,
which reduces the disparities amidst income earned by people living in urban and rural
areas.
 Rural entrepreneurship stimulates the dissemination of economic activities in the
village areas, which ultimately results in balanced regional development.
 It does not just protect but also promotes the art, culture and creativity, i.e. the varied
heritage of that particular region.
 When industries are set up in rural areas, it advances economic development which
reduces migration of the villagers to urban areas.
  Curtails unequal growth in the urban areas, decreases the development of slums,
environment pollution etc. When industries which are environment friendly are
established in rural areas, it results in development without causing harm to nature and
biodiversity.

Problems of Rural Entrepreneurship

As we know that the development of entrepreneurship in rural areas is not as easy as in urban
areas. As there are a number of problems which needs to be catered. Some of them are listed as
under:

 Paucity of Funds
 Lack of technical know-how
 Lack of training and development
 Non-availability of skilled labour
 Risk Element
 Legal Formalities
 Lack of technical knowledge
 Lack of Quality Control
 Lack of communication and market insights
 Lack of storage and transportation facilities
 Old and obsolete technology, machinery and equipment
 Lack of promotional strategy
 Lack of infrastructural facilities
 Poor quality standards

Besides the above challenges, one major problem encountered at the time of entrepreneurship
development in rural areas is the lack of knowledge and awareness in people with regard to the
significance of developing industries in the rural areas. Moreover, the rural population does not
show much interest in choosing entrepreneur, as their career.

The rural population generally go for employment due to a fixed and regular income, limited
working hours, no investment and less degree of responsibility. This is due to the status given to
the salaried people by society than to the self-employed ones.

In addition to this, rural people also do not have much knowledge and awareness about the
entrepreneurial opportunities which is open to them. And they are also not aware of the support
organizations, government schemes and programmes and all the necessary information which is
needed for its commencement.

Development of Rural Entrepreneurship

Setting up an industry in rural areas so as to develop entrepreneurship is not an easy task. Indeed
it encompasses a series of activities. There are certain measures recommended for the
development of entrepreneurship in the rural areas, which are discussed as under:
In addition to this, rural people also do not have much knowledge and awareness about the
entrepreneurial opportunities which is open to them. And they are also not aware of the support
organizations, government schemes and programmes and all the necessary information which is
needed for its commencement.

Development of Rural Entrepreneurship

Setting up an industry in rural areas so as to develop entrepreneurship is not an easy task. Indeed
it encompasses a series of activities. There are certain measures recommended for the
development of entrepreneurship in the rural areas, which are discussed as under:

 Availability of Raw Material: For the establishment of any industry, the availability of
adequate raw material is a must. Nevertheless, the non-availability of raw materials along
with their expensiveness has weakened the growth of such industries. Over the years, it
 has been observed that rural industries that have a heavy raw material base produced in
the rural areas itself, often sustain in the long run. Hence the rural entrepreneurs should
be ensured of the proper supply of raw material.
 Creation of Finance cells: To start and operate an industry smoothly and uninterruptedly
in rural areas, finance acts as a fuel. Availability of funds at the time of need, at a
reasonable rate of interest, is the major requirement, which must be fulfilled. For this
purpose banks and financial institutions can be opened, which can remove the hindrances
caused due to the lack of finance.
 Production cum Marketing centers: Production cum marketing centres need to be
established with state-of-the-art technology and advanced infrastructural facilities in the
areas where the rate of production and growth is high. It encourages export business as
well as bring together the buyers and sellers, and eliminates intermediaries.
 Development of Entrepreneurial Attitude: If the entrepreneurs lack aptitude and
competency, it will make the industrial unit sick. So, the entrepreneurial attitude and
competencies need to be developed among the would-be entrepreneurs by way of training
programmes such as EDP – Entrepreneurship Development Programme.
 Entrepreneurial Education: To impart entrepreneurial skills, attitude and acumen in the
youth, entrepreneurial education should be given in schools, colleges and universities.
This will shape and direct the young minds to work or make their career in that field.
 Awareness: Basically, non-availability of the facilities is not a big problem, rather the
big problem is the non-awareness of the facilities available for the development of rural
entrepreneurship. So, the steps must be taken to make the people aware of the facilities
and support provided to the entrepreneurs, to assist them in establishing the industries in
rural areas.
 Institutional Training: Facilities should be made to provide institutional training to
direct the entrepreneurs in the products and trades so that the resources of the region can
be utilized in the best possible manner.
Of the above-given measures, setting up of marketing cooperatives is an effective way which
will provide complete assistance, guidance, direction and encouragement to the rural
entrepreneurs for establishing the business. These will help the rural entrepreneurs to get the
desired inputs at a reasonable price, as well as they can sell their output at competitive prices.

Types of Rural Entrepreneurship

  Agro-Based Enterprises: As the name suggests, these enterprises indulge in the direct
selling or processing of agriculture products, for example, sugar, dairy products, fruit
juice, spices, oils from oilseeds, jaggery etc.
 Forest-Based Industries: Industries dealing in the supply of wood or wood products,
coir industry, beedi industry, honey making, bamboo products, etc. are covered under the
forest-based industry.
 Mineral Based Industries: Cement industry, stone crushing, wall coating powders, etc.
are included in the mineral-based industry.
 Textile Industry: Industry in which weaving, spinning, tie and dye, colouring and
bleaching of textile are carried out is covered under this category.
 Handicrafts: Craft or artistic items made of wood, bamboo, glass, jute, soil, etc. are
called as handicrafts. Moreover, traditional decorative items, toys, antiques etc. are also
covered here.
 Engineering Services: It may include tools and equipment used in agriculture such as
tractors, pumps, pipes and fittings, repairs, etc.

Potential opportunities for Rural entrepreneurship in India

 Free entry to the market:
 Various scheme for rural development
 EDI (Entrepreneurship Development Institution of India
 Regional rural development centre
 Finance facility to the rural entrepreneurs
 Subsidies given to the rural people by government
 Bank aid.