BMG936 International Entrepreneurship
BMG936 International Entrepreneurship
Introduction
The various skills and capabilities are needed among entrepreneurs to be successful in the competitive and challenging Marketplace in the current Global Business place. The study aims to focus on the entrepreneurial opportunities in the Indian e-commerce industry. The entrepreneurship ecosystem is also going to be described in the study.
Part a: Entrepreneurial ecosystem in India
The entrepreneurial ecosystem in India, succeeding in the e-commerce sector by using the Isenberg model
Funding initiatives
It needs experience in areas of reporting, global operations, corporate responsibility, development of project management, financing, operations, international tax and human resources. As stated by Gupta (2023), at a startup small business, this supports the portfolio of firms by giving help upon strategic matters associated with finance, operations, structures, tax and governance. India is rapidly changing, particularly in the last 2 years as there are many regulatory changes within corporate governance, legal aspects, FDI, finance and many more, as they mostly are product and tech-savvy people. Thus, entrepreneurs are required to undergo such critical things more quickly.
There are many best practices within governance, such as HR, finance and legal. For instance, it is vital that financial books in startup small businesses can be maintained well with relevant records to keep. They are quite poor in their bookkeeping. As an ecosystem, they fail to appreciate by putting adequate effort within compliance as well as governance. However, spending within compliance, as well as finance is crucial from a regulatory standpoint as this is financially beneficial. The current instance of the advantage of better bookkeeping has been when one of the portfolio startup small businesses got funded by an India-based company. Their portfolio has been a startup small business that has been growing very fast and this has been supporting them with respective finance as well as compliance needs. One of the things this organisation has done has been to be sure that accounting books have been clean with all integral documents stored within drop-boxes. Henceforth, when due diligence began, this was finished within around 15 days. As opined by Alisha (2023), they also got a certificate from an investor stating that this has been one among quick and best due diligence conducted. The result has been that money has been easier within the bank rather than anticipated as the overall process gets shortened through over 4 weeks.
Legislation and policy
In the case of the current sale of an Indian enterprise to an Indian multinational, there have been more challenges. a startup small business has a mix of investors from India, non-resident investors and Indian founders. Because of this, they have been subjected to different regulations and they discovered anomalies among such regulations. For instance, share valuation is measured differently for purposes of the policy of foreign exchange in India and the Indian Act of Indian Tax and Companies Act. Thus, as explained by Venâncio et al. (2023), entrepreneurs along with consultants need to work with almost all of such various regulatory bodies and agencies by ensuring that deals and companies included are compliant with almost all accurate regulations. It would become a challenge to identify common ground, which works for all.
Culture
The current surge in the activity of startup small businesses builds upon such a foundation for the knowledge economy that has led towards the creation of many technologies that are highly valued for technology-driven startups. As influenced by Hameed et al. (2023), at a glance, the ecosystem appears to have all complex elements within place, such as financing access, large market and high-quality talent. However, there prevails anecdotal proof of many problems, which are simmering. For instance, the entrepreneurial rate that prevails within ecosystems, either by acquisitions or by IPO is very low. Venture capitalists and entrepreneurs realise ROIs only by successful exit. With a lack of exits, resources remain locked up as liquidity is absent as well and entrepreneurial recycling, which can help the next startup generation has not been set in motion. Another problem is around the low tolerance culture for failure within India and its influence on entrepreneurship as an activity with a high rate of failure. It assumes greater essentiality, particularly within the environment, where all successful exits have been far apart and few. However, another problem concerns the price-sensitive and fragmented nature of the Indian market, increasing questions about their potential to help highly profitable businesses. There are many challenges linked to workplace culture. As suggested by Muldoon et al. (2023), for example, POSH is a new law, which has come within India that needs startup small businesses with over 5 staff to have a policy of sexual harassment within place. Young businessmen need to get ready to address challenges within workplace culture.
Support
In such an initiative, to support entrepreneurs who are non-English, start small business initiatives Native Land Foundation within India, where they put impacts upon mitigating local issues. They also created NAN from individuals of high net worth in the local area. The only division has been that inverters need to speak Tamil for all parties included could be capable of communicating with one another. As recommended by Tasman et al. (2023), once it supports people primarily, then they soon can acquire confidence for moving out within the world by communicating along with whatever hold on English that they have. There prevail mundane operating barriers as well, such as compliances and regulations leading investors would insist that need to be complied with. This would cripple entrepreneurs of startup small business mundane things within trying to have certain extra funding within this business, rather than aiming time upon key problems, such as marketing, product and many more. As investors, they need to move back by providing an entrepreneur-accurate ecosystem with support in growth through education as well as monitoring.
Human capital
A key tenet of the ecosystem perspective is stronger ecosystems have higher opportunities for success regarding startup small businesses operating within such ecosystems. Providing such a premise, this is vital to understand different elements of the entrepreneurial ecosystem, leading all interactions with relationships among them with processes, which can build a strong ecosystem. Shifting within such direction, the entrepreneurial ecosystems get unpacked within 6 domains, every one of which consists of many components, which interact in idiosyncratic ways and highly critical ways. Such domains appear as accessible markets, conducive culture, a framework for progressive policy, finance availability, and human capital with quality and institutional support range. On the contrary, as analysed by Patnaik et al. (2023), every such domain is crucial, human capital with quality, finance and market access are identified to be the most integral factors. In addition to this, such domains have been dependent on each other and influence other domains’ quality. For instance, market access could create startup small businesses operating within such an ecosystem as attractive towards venture financing. On a similar note, financing availability would act as a talent agent, skilled professionals and attracting entrepreneurs, who are high potential. Therefore, elements of the ecosystem reinforce each other by setting up a virtuous cycle, which makes a strong ecosystem.
Indian startup small business ecosystem presents promise, though many problems persist. Against such a backdrop, following discussion at the round table takes more stock of the scopes and limitations, which face the Indian startup small business ecosystem with where Thailand is headed within the coming years. Such discussion can take a closer look at 3 complex elements of the entrepreneurial ecosystem, such as market opportunity, human capital with quality and finance access with specific impacts upon education. As observed by DAHIYA and Dahiya (2023), this also flags crucial gender problems and socio-cultural problems, which influence the human capital pool as available for participating in entrepreneurial activities. The discussion provides crucial insights within the ecosystem, though also increases more questions regarding policymakers, academics and practitioners, which require further exploration with reflection.
Markets
There are only opportunities and higher canvas to mitigate hunger issues because these issues solved by this model in startup small businesses may be scalable anywhere within the world. For instance, the better part of Indian markets is scale as they probably are including issues that have validation for 40 million people. Such values may be immense as these are consumers, who can keep coming, whatever the situation. As mentioned by Jayaprakash (2023), one of the exit types is IPO markets as these are for better-developed organisations with records of proven track and strong sheets of balance. For a startup small business, it would be a challenge. However, currently, SEBI has been coming up with norms for IPO, such as the process regarding startup small businesses. It still is within the nascent stage without trial and test.
Part b: Barriers in the business
I. Brief overview of the entrepreneurial ecosystem in the e-commerce sector in India
The quickly expanding digital landscape and the fast-expanding consumer market characterise the dynamic and robust entrepreneurial ecosystem inside India’s e-commerce business. The industry features a strong ecosystem that makes use of technology, logistics, and digital payment methods thanks to the emergence of creative startups and well-established firms. This terrain is not without difficulties, though. Now let’s look at the obstacles that entrepreneurs must overcome despite the industry’s growth. These include regulatory complexity, gaps in infrastructure, difficulty obtaining financing, a lack of skilled labour, and socio-cultural pressures. Through an analysis of their effects on entrepreneurial endeavours within India’s e-commerce sector, this investigation seeks to shed light on these obstacles (Akther, 2023).
II. Regulatory Barriers
- Discussion on existing regulations impacting e-commerce entrepreneurs in India
Entrepreneurs in India’s e-commerce industry face a challenging regulatory environment that is influenced by important laws affecting the industry. The laws governing e-commerce platforms, data protection, and foreign direct investment (FDI) are noteworthy. Due to their complexity, these laws present difficulties for entrepreneurs, necessitating careful observance and flexibility. The regulatory landscape necessitates ongoing attention due to factors like FDI limits, data localization requirements, and changing market norms (Bhattacharya 2020). Such intricacies might hinder entrepreneurs’ agility, impacting their business plans, ability to enter new markets, and overall expansion of the Indian e-commerce industry.
- Comparison to previous research on common regulatory barriers globally and in India
Making comparisons with earlier studies highlights the particular difficulties faced by Indian e-commerce firms. Common regulatory impediments on a global scale include things like taxation, competition laws, and consumer protection. Further complexities in India stem from regulations governing foreign direct investment, data security policies, and changing market standards (Udemba and Yalçıntaş., 2021). The comparative research highlights the need for customized tactics due to India’s complex regulatory environment, even though some challenges are in line with global trends. Entrepreneurs entering the e-commerce business must be aware of these peculiarities to ensure compliance and build resilience against regulatory constraints unique to the Indian market.
III. Infrastructure Challenges
- Examination of infrastructural limitations faced by e-commerce entrepreneurs
India’s e-commerce business owners face severe infrastructure constraints, particularly in the areas of logistics and transportation. Operational bottlenecks are caused by inefficient last-mile deliveries and unstable transportation networks, which are made worse by the nation’s diversified and large geography. Disparities in technical infrastructure also impede smooth operations. Regional differences in internet access and digital connectivity pose obstacles to the widespread adoption of cutting-edge technologies. Entrepreneurs must overcome these obstacles, which call for calculated bets and joint efforts to improve technology and physical infrastructure and create an atmosphere that is more favourable for e-commerce operations in India.
- Connection to previous research on the significance of robust infrastructure for entrepreneurship
A large body of research emphasizes how important strong infrastructure is for entrepreneurship and how important it is for business success. Research from all over the world highlights how dependable transportation and logistics networks help entrepreneurs reach new markets and run their businesses more profitably. A strong technological infrastructure also makes sure that digital solutions are integrated smoothly, which promotes innovation and competition. Prior studies have consistently demonstrated that nations with robust infrastructural frameworks offer an environment that is favourable for the development of entrepreneurs. Addressing these issues is necessary in the context of India’s e-commerce industry to be consistent with the established link between strong infrastructure and entrepreneurial success on a larger scale.
IV. Access to Finance
- Analysis of financial barriers specific to e-commerce startups in India
Indian e-commerce businesses face unique financial obstacles that impede their expansion. First of all, obtaining finance for new projects is a constant problem. Due to unproven company ideas or market uncertainty, investors may show caution. Second, it can be difficult to get loans and funds for expansion because banks sometimes need strong collateral and thorough business plans. Due to their limited capacity to invest in infrastructure, marketing, and technology, e-commerce businesses find it difficult to scale as a result of this financial restriction. To overcome these obstacles, new finance strategies, heightened investor trust, and financial regulations that are specific to the peculiarities of the Indian e-commerce industry are needed (Baporikar, 2021).
- Comparison to global trends and studies on financial barriers for entrepreneurs
India’s e-commerce businesses that are encountering financial obstacles are in line with worldwide patterns seen in the landscape of entrepreneurship (Kumar and Seshadri., 2021). Internationally, issues like hard-to-come-by money and trouble getting loans for growth are common. The global aspect of entrepreneurial finance issues is shown by the similarities in these financial obstacles, highlighting the necessity of cross-border insights and cooperative efforts to address common obstacles. Comprehending these similarities facilitates the formulation of all-encompassing tactics that align with the wider framework of international entrepreneurship.
V. Skill Gaps and Talent Shortages
- Examination of skill-related challenges in the e-commerce sector
One of the biggest skill-related issues facing India’s e-commerce industry is the lack of qualified workers (Mukherjeea, 2021). Quick technical progress necessitates specialized knowledge, which makes competent professionals scarce. Furthermore, there are obvious deficiencies in the entrepreneurial abilities needed to navigate the ever-changing e-commerce scene. Entrepreneurs frequently have difficulties in finding people who can combine technical know-how with business acumen.
- Relating skill gaps to the overall impact on entrepreneurial ambitions
Entrepreneurial aspirations are directly impacted by skill gaps in the e-commerce industry, which impede innovation, reduce operational efficiency, and make it more difficult to seize market possibilities. Lack of crucial skills hinders business growth and highlights the urgent need for targeted interventions to develop a workforce capable of propelling entrepreneurial endeavours to succeed in the ever-changing Indian e-commerce market (PraveenaSri et al., 2023).
VI. Socio-Cultural Factors
- Discussion on societal attitudes and cultural factors affecting e-commerce entrepreneurship
In India, societal views have a big impact on e-commerce entrepreneurship. First of all, people’s inclination to start businesses is influenced by how entrepreneurship is seen in Indian society. Cultural perspectives on failing and taking risks also have an impact on entrepreneurs; a historically risk-averse culture presents difficulties. E-commerce entrepreneurs in India must comprehend and navigate these diverse socio-cultural variables to develop resilience, encourage innovation, and win support from society for their business ventures.
- Connection to studies on the influence of culture on entrepreneurial behaviour
Research continuously confirms that cultural influences have a significant impact on entrepreneurial behaviour. Entrepreneurial decisions are directly impacted by the attitudes and perceptions that society and culture have towards taking risks and failing. To improve the acceptance and success of initiatives in the Indian environment, e-commerce entrepreneurs must identify and integrate cultural insights from research to align plans with current cultural norms.
Part C: Entrepreneurial characteristics
- Creativity
Creativity and innovation become the backbone of modern business success, especially in the E-commerce industry. The creative skill of the individual entrepreneur can give them an advantage to Grab the opportunity of a large target audience section in India for their product and services. As stated by Latukism et al. (2021) entrepreneurship innovation has become the success criteria and key factor in increasing business profit in modern days. Creative ideation and venture creation in the business of the E-commerce industry can be advantageous for entrepreneurs to achieve success. The creativity of the entrepreneurs is capable of overcoming the socio-cultural barriers in the E-commerce business in India.
- Visionary approach
The visionary approach of the entrepreneurs can reduce the risk of the challenges regarding infrastructure barriers, regulatory barriers and financial issues in the business. On the contrary, Amit and Zott (2020) stated that clarification in the business vision of entrepreneurs is needed to choose appropriate strategic options in their business management. The invention of disruptive Technology or business models in the E-commerce industry can give a competitive advantage to entrepreneurs in the Indian market. As an emerging Economy, there are huge opportunities in E-commerce business and the visionary approach is highly needed to take the opportunities by removing the barriers.
- Flexibility and adaptability
The flexibility and adaptability characteristics of the entrepreneurs are also needed for successful change management in the business which is needed for changing the business environment in the Indian market. As stated by Gorjian Khanzad and Gooyabadi (2021) adaptability characteristics of the entrepreneur are needed to cope with contemporary business risks and uncertainties. The flexibility and adaptability characteristics have already given birth to some successful E-commerce entrepreneurs in the Indian market. The adaptability characteristics are capable of overcoming the challenge of infrastructure, changing business environments and socio-cultural aspects. For example, Meshoo has shown the winning formula in the E-commerce business in India using the adaptability and flexibility characteristics of the entrepreneur (Dnaindia.com, 2023).
- Risk-taking ability
The risk-taking capability of the entrepreneurs can also be an advantage in the highly demanding market in the Indian E-commerce industry. The ability to take calculated risks can increase the chances of opening new opportunities in the business as well as taking a competitive advantage in the marketplace. Nykaa is another example of a successful startup E-commerce brand which has the business opportunity for rapid business growth due to its risk-taking ability.
Conclusion
From the above study, it can be said that the Indian eCommerce market is highly demanding having high business opportunities due to the benefits of the emerging economy and large target audience in business. There are also some challenges and barriers in the E-Commerce business in the Indian market which can give trouble to an Entrepreneur. The barriers in the business have been discussed in the study.
Reference List
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