Page 29 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes The Indian entrepreneurs have to face the following problems:
1. To follow marketing techniques that are result and consumer-oriented.
2. To understand, tackle and survive the era of globalization.
3. To improve production process and produce high-quality goods.

4. To take optimum advantage of business opportunities arose due to liberalization of Indian
economy since 1991.
5. To replace outdated technology with improved modern technology.

6. To motivate and properly manage needs and expectations of women and young managers
that make an Indian workforce.
7. To professionally manage the financial activities of the business.

8. To balance profit earning capacity and social-welfare activities.
Discussed below are the problems before Indian entrepreneurs:

2.3.1 Challenge of Globalization

A few years back the Indian entrepreneurs had to fight regional and national competition.
However, today, the scenario has changed and become much more complex than what it was
earlier. Now, almost all countries have opened up their economies, and the world (globe) has
become one giant global market.

!
Caution To survive this competitive era of globalization, Indian entrepreneurs must
prepare themselves with new, better, and innovative business tactics and skills. They
must accept this global challenge willingly and try their best to seek business opportunities
to establish their dominant place in this ever-changing and always challenging open
market.
In this global competitive scenario, the Indian entrepreneurs have to compete with
well-established giant foreign companies.

Example: If entrepreneurs decide to start a beverage company, their competitors are
likely to be large multinational corporations such as Coca-Cola and Pepsi.
Giant multinational corporations have tremendous money power (surplus funds), branches all
over the world (global presence), efficient teams of wise managers and experienced employees
(skilled human resource); they sell high-quality goods and services at lower prices, and also use
superior marketing techniques.
These solid advantages of multinational corporations make it very difficult for Indian
entrepreneurs to compete. Hence, this is a big challenge before them.

Indian entrepreneurs will have to improve in all departments of business such as Production,
Marketing, Finance, etc. They will have to use modern technology, new methods and efficient
and highly motivated manpower to fight this competition.

2.3.2 Liberalization in India, 1991

Liberalization is a process of giving liberty or freedom to someone to do something, which was
previously restricted, banned or prohibited.

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