ENTREPRENEURSHIP

An entrepreneur is one who always searches for change, responds to it

and exploits it as an opportunity. Innovation is the basic tool of entrepreneurs,
the means by which they exploit change as an opportunity for different business
of service.
Peter Drucker
To put it very simply an entrepreneur is someone who perceives
opportunity, organizes resources needed for exploiting that opportunity and
exploits it. aptops , mobile phone, !otor "i#es, $redit $ards, $ourier %ervice,
and &eady to eat 'oods are all examples of entrepreneurial ideas that got
converted into products or services.
ENTREPRENEURSHIP
(A systematic innovation, which consists in the purposeful and organized
search for changes, and it is the systematic analysis of the opportunities such
changes might offer for economic and social innovation.)
-- Peter
Drucker
*ntrepreneurship is the practice of starting new organizations or revitalizing
mature organizations, particularly new businesses generally in response to
identified opportunities.
+
*ntrepreneurship is a creative human act involving the mobilization of
resources from one level of productive use to a higher level of use. ,It is the
process by which the individual pursue opportunities without regard to
resources currently controlled.,
*ntrepreneurship involves a willingness to ta#e responsibility and ability to put
mind to a tas# and see it through from inception to completion. Another
ingredient of entrepreneurship is sensing opportunities, while others see chaos,
contradiction, and confusion. *ssence of *ntrepreneurship is going against time
with maturity and serving as a change agent.
*ntrepreneurship is considered to be a significant determinant of economic
development. -ew entrepreneurial activities play a vital part in the process of
creative destruction that fosters innovation, employment, and growth. .hile
India has traditionally been an entrepreneurial country, it fares poorly in
numerous global studies exploring the entrepreneurial and business potential of
countries but, on the other hand on the most conservative basis, our domestic
consumption, in virtually any sector, has the potential to at least double, or
treble, from current levels / perhaps, 0ust to catch up with a country li#e $hina.
Then, there is the entire global opportunity, across diverse sectors
internationally, the ,!ade in India, tag is now an increasingly respected brand,
valued for 1uality, reliability, and competitiveness. Truly, with economic
reforms in the country, and with the virtual removal of all trade barriers, the
2
world is now our mar#et and our opportunity. The pursuit of these opportunities
re1uires an indomitable spirit of entrepreneurship. *ntrepreneurship is often a
difficult underta#ing, as a vast ma0ority of new businesses fail. *ntrepreneurial
activities are substantially different depending on the type of organization that is
being started. *ntrepreneurship ranges in scale from solo pro0ects 3even
involving the entrepreneur only part4time5 to ma0or underta#ings creating many
0ob opportunities. !any ,high4profile, entrepreneurial ventures see# venture
capital or angel funding in order to raise capital to build the business. Angel
investors generally see# returns of 264768 and more extensive involvement in
the business
7
GROWTH OF ENTREPRENEURSHIP IN INDIA
The proper understanding of the growth of entrepreneurship of any country
would evolve within the context of the economic history of the particular
country becomes the sub0ect matter of this section. The growth of
entrepreneurship in India is, therefore, presented into two sections viz.
*ntrepreneurship during 9re4Independence
*ntrepreneurship during 9ost4Independence
ENTREPRENEURSHIP DURING PRE-INDEPENDENCE
The evolution of the Indian entrepreneurship can be traced bac# to even as early
as &igveda, when metal handicrafts existed in the society. This would bring the
point home that handicrafts entrepreneurship in India was as old as the human
civilization itself, and was nurtured by the craftsman as a part of their duty
towards the society. "efore India came into contact with west, people were
organized in a particular type of economic and social system of the village
community. Then, the village community featured the economic scene in India.
The Indian towns were mostly religious and aloof from the general life of
country. The elaborated cast based diversion of wor#ers consisted of farmers,
artisans and religious priests. The ma0ority of the artisans were treated as village
servants. %uch compact system of village community effectively protecting
village artisans from the onslaughts of external competition was one of the
:
important contributing factors to the absence of localization of industry in
ancient India.
*vidently, organized industrial activity was observable among the India artisans
in a few recognizable products in the cities of "anaras, Allahabad, ;aya, 9uri
< !irzapur which were established on their river basins. =ery possibly this was
because the rivers served as a means of transportation facilities. These artisan
industries flourished over the period because the &oyal patronage was to them
to support them. The wor#shops called (#har#hanas) came into existence. The
craftsmen were brought into an association pronounced as (guild system). >n
the whole, perfection in art, durability beyond doubt and appeal to the eye of the
individual were the distinguishing 1ualities inherent in the Indian craftsmanship
that brought much everlasting laurels of name and fame of the illustrious India
in the past. To 1uote, "engal en0oyed worldwide celebrity for $orah, uc#now
for chintzes, Ahmadabad for dupttas, and dhotis, -agpur for sil# boarded cloth,
?ashmir for shawls and "anaras for metal wares. Thus, form the immemorial
till the earlier years of the +@
th
century, India en0oyed the prestigious status of
the 1ueen of the international trade with the help of its handicrafts.
Anfortunately, so much prestigious Indian handicraft industry, which was
basically a cottage and small sector, declined at the end of the +@
th
century for
various reasons. These may be listed as4
B
+. Cisappearance of the Indian royal courts who patronized the crafts
earlier.
2. The lu#ewarm attitude of the "ritish colonial govt. towards the Indian
crafts.
7. Imposition of heavy duties on the imports of the Indian goods in *ngland.
:. ow priced "ritish made goods produce on large scale which reduced the
competing capacity of the product of the Indian handicrafts.
B. Cevelopment of transport in Indian facilitating the easy access of "ritish
product even to far4flung remote part of the country.
D. $hanges in the tastes and habits of the Indian, developing craziness of
foreign products.
E. Anwillingness of the Indian craftsmen to adapt to the changing tastes and
needs of the people.
%ome scholars hold the view that manufacturing entrepreneurship in India
emerged as the latent and manifest conse1uence of east India company advent
in India. The company in0ected various changes in the Indian economy through
export of raw materials and import of finished goods in India. 9articularly, the
parsis established good rapport with the company and were much influenced by
the company)s commercial operations. The company established its first ship
building industry in %urat where from +DE7 onwards the parsis built vassals for
the company. The most important was shipwright ow0ee -ushirvan, who
D
migrated to "ombay around +F7B. Ge belonged to a .adia family which gave
birth to many leading ship4builders of "ombay. In +DEE, !an0ee Chan0ee was
given a contact for building the first large gun powder mill in "ombay for the
east4India company. "esides, a 9arsi foreman of a gun factory belonging to the
company established a steel industry in "ombay in +@B2. >n the basis of these
facts, it can be stated that the east India company made some contribution
towards entrepreneurial growth in India. "ut whether the company did it
deliberately for the growth of entrepreneurship in India or it was 0ust a
coincident that people came in contact with the company and entered the
manufacturing, nothing can be said with certitude.
The actual emergenced of manufacturing entrepreneurship can be noticed in the
second half of the +F
th
century. 9rior to +@B6, some stay failure attempts were,
indeed , made by the *uropeans to setup factories in India. In the beginning, the
9arsis were the founder manufacturing entrepreneurs in India.
&anchodlal chotalal, a -agar "rahman, was the first Indian to thin# of setting
up the textile manufacturing on the modern factory lines in +@:E, but failed. In
his second attempt, he succeeded in setting up a textile mill in +@D+ at
Ahmadabad. "ut before this, the first cotton textile manufacturing unit was
already setup by a 9arsi, $owas0ee -anabhoy Cabar in "ombay in +@B:
fallowed by -awros0ee wadia who open his textile mill in "ombay in +@@6. The
credit for the expansion of textile industries upto +F+B goes to the 9arsis. >ut of
E
FD textile mills existing in +F+B, :78 3:+5 were set up by parsis, 2:8 3275 by
Gindus, +68 3+65 "y !uslims and 278 3225 by "ritish citizens. ater, the
9arsis invaded other fields, mainly iron and steel industry, also Hamshed0ee Tata
was the first 9arsi entrepreneur who established the first steel industry in
Hamshedpur in +F++.
In the first wave of manufacturing entrepreneurship, except parsis, all others
hailed from non4commercial communities. .hy the well4#nown commercial
communities, namely, Hains and =aishyas of Ahmadabad and "aroda, lagged
behind in entrepreneurial initiative throughout the nineteenth century can be
explained by two factors. 'irstly, the improvement of business climate in the
countryside during this period results in an increase in the 1uantum of trade
which assumed 1uic# returns on investments. This proves the commercial
activity more lucrative during the period, %econdlyI it can also be attribute to
their conservative attitude to change from commercial entrepreneurship to
industrial entrepreneurship.
The Swadeshi campaign, i.e., emphasis on indigenous goods, provided, indeed,
a proper seedbed for inculcating and developing nationalism in the country. It
was the influence of %wadeshi that Hamshed0i Tata even named his first mill
J%wadeshi !illJ. The spirit of indigenousness strengthened its roots so much in
the country that the ?rishna !ills in its advertisement of Tribune of April +7
@
made the following appealK ,>ur concern is financed by native capital and is
under native management throughout,.,
The second wave of entrepreneurial growth in India began after the 'irst .orld
.ar. 'or various reasons, the Indian ;overnment agreed to JdiscriminatingJ
protection to certain industries, even re1uiring that companies receiving its
benefits should be registered in India with rupee capital and have a proportion
of their directors as Indians. The advantages of these measures were mostly
en0oyed by the Indians. The *uropeans failed to harness the protectionist
policies to their interests., These measures helped in establishing and extending
the factory manufacturing in India during the first four decades of the twentieth
century. Curing these decades, the relative importance of 9arsis declined and
;u0aratis and !arwari =aishyas gained that pendulum in IndiaJs entrepreneurial
scene.
The emergence of !anaging Agency %ystem which made its own contribution
to the Indian entrepreneurship can be traced bac# to +F7D when $arr, Tagore <
$o. assumed the management of $alcutta %team Tug Association. The credit for
this initiation goes to an Indian, Cwar#anath Tagore, who encouraged others to
form 0oint4stoc# companies and invented a distinct method of management in
which management remained in the hands of the JfirmJ rather than of an
JindividualJ . Gistorical evidences also do confirm that after the *ast India
$ompany lost monopoly in +@+7, the *uropean !anaging Agency Gouses
F
entered business, trade and ban#ing. And, these houses mar#edly influenced
eastern IndiaJs Industrial scene. It is stated that the !anaging Agency Gouses
were the real entrepreneur for that period particularly in *astern India.
"rimmer, holds the opinion that Agency Gouses emerged to overcome the
limitations imposed by a shortage of venture capital and entrepreneurial acumen
though all may not agree s1uarely with this view.
Reasons for slow rowt! of entre"reneurs!#" #n Dur#n $r#t#s! "er#o% #n
In%#a&
+. Not given proper protection: The enterprises were not given proper
protection by "ritish ;overnment.
2. Discouragement by British GovernmentK >nly those industries in which
the "ritish ;overnment put their own capital were given encouragement.
7. High railway freight charges: The railway freight charges were higher
for locations not nearer to the ports. This proved that the transportation of
the goods manufactured for the Indian mar#ets were more expensive than
goods meant for exports.
:. Exorbitant tariffs: The "ritish imposed exorbitant tariffs on India made
goods.
+6
B. Constantly harassed for getting licenses: *ntrepreneurs were constantly
harassed for getting licenses and finance to established and run industries.
D. No facilities for technical educationK there were almost any facilities for
technical education which alone could strength Indian industrial
entrepreneurship.
E. Entrepreneurs faced fierce competition from abroadK The Indian
indigenous entrepreneurs faced fairs competition from machine made
goods exported to India from abroad.
@. Lac of transportation and communication facilities' ac# of
transportation and communication facilities acted as the stumbling blot in
the way of industrial growth.
F. Not encouraged the establishment of heavy industries: The "ritish
;overnment did not encourage the establishment of heavy industries li#e
heavy machinery, iron and steel which are necessary for rapid
industrialization.
+6.!olitical turmoilK 9olitical turmoil and abolition of princely courts
discouraged the growth of entrepreneurship.
++."ulti#currency system: 9revalence of multi currency system affected the
business environment and bloc#ed the growth.
++
Inspite of the above problems, the export trade of textile in +Eth century was on
ascending trend. Curing this period, grouping of Indian merchants into 0oint
stoc# associations for the purpose of managing the supply of textiles to
*uropean companies was very significant. This helped in exporting huge
volume of textiles to the *uropean mar#ets leading to favorable terms of trade.
PARTITION OF UNDI(IDED INDIA ON )*
t!
AUGAST )+,-
"efore we s#ip our review of entrepreneurial growth to the post4Independence
era, it will be in the fitness of the things to shed some light on effects of
partition on IndiaJs industrial economy so as to depict Independent IndiaJs
industrial bac#ground.
'ollowing are some ma0or effects of partition on +Bth August +F:E on the
Indian industrial economyK4
Demographic Effects : EE8 of area < @28 of population get remain in India
whereas 278 of area < +@8 of population converted into 9a#istan.
$ndustrial %ctivity : F68 of total industrial establishment with F78 of
industrial wor#ers 3Hute, Iron < %teel and 9aper industries5 in India whereas
+2
+68 of total industrial establishments with E8 of industrial wor#ers 3$otton
textile, sugar, cement,
glass and chemical industries5 in 9a#istan.
"ineral and Natural &esources : FE8 of total value of minerals in India in
which ma0or deposits of coal, mica, manganese, iron, etc. whereas 78 of total
value of minerals with ma0or deposits of ;ypsum, roc# salt, etc. in 9a#istan.
"anpower and "anager sill :- India was at loss whereas !uslims possessed
these s#ills who migrated to 9a#istan.
'ransport (acilities: @78 of total route mileage in India whereas 6E8 of total
road mileage in 9a#istan.
"a)or !orts: India lost ma0or ports which adversely affects India)s exports.
(Source: Entrepreneurial Development by S. S. Khanka
ENTERPRENEURSHIP DURING POST- INDEPENDENCE
After ta#ing a long sign of political relief in +F:E, the ;overnment of India tried
to spell out the priorities to devise a scheme for achieving balanced growth. 'or
this purpose, the ;overnment came forward with the first Industrial 9olicy,
+F:@ which was revised from time to time., The ;overnment in her various
industrial policy statements identified the responsibility of the %tate to promote,
assist and develop industries in the national interest. It also explicitly recognised
the vital role of the private sector in accelerating industrial development and, for
this, enough field was reserved for the private sector.
+7
The ;overnment too# three important measures in her industrial resolutionsK4
3i5 to maintain a proper distribution of economic power between private and
public sectorI
(ii to encourage the tempo of industrialisation by spreading entrepreneurship
from the existing centres to other cities, towns and villages, and
3iii5 to disseminate the entrepreneurship acumen concentrated in a few dominant
communities to a large number of industrially potential people of varied social
strata.
To achieve these adumberated ob0ectives, the ;overnment accorded emphasis
on the development of small4scale industries in the country. 9articularly since
the Third 'ive Lear 9lan, the ;overnment started to provide various incentives
and concessions in the form of capital, technical #now4how, mar#ets and land to
the potential entrepreneurs to establish
industries in the industrially potential areas to remove the regional imbalances
in development. This was, indeed, a ma0or step ta#en by the ;overnment to
initiate interested people of varied social strata to enter the small4scale
manufacturing field. %everal institutions li#e Cirectorate of Industries, 'inancial
$orporations, %mall4%cale Industries $orporations and %mall Industries %ervice
Institute were also established by the ;overnment to facilitate the new
entrepreneurs in setting up their enterprises. *xpectedly, the small4scale units
+:
emerged very rapidly in India witnessing a tremendous increase in their number
from +2+,D+F in +FDD to +F6,E2E in +FE6 registering an increase of +E,666 units
per year during the period under reference.
The recapitulation of review of literature regarding entrepreneurial growth in
India, thus, leads us to conclude that prior to +@B6, the manufacturing
entrepreneurship was negligible lying dormant in artisans. The artisan
entrepreneurship could not develop mainly due to inade1uate infrastructure and
lu#ewarm attitude of the colonial political structure to the entrepreneurial
function. The *ast India $ompany, the !anaging Agency Gouses and various
socio4political movements li#e Swadeshi campaign provided, one way or the
other, proper seedbed for the emergence of the manufacturing entrepreneurship
from +@B6 onwards.
The wave of entrepreneurial growth gained sufficient momentum after the
%econd .orld .ar. %ince then the entrepreneurs have increased rapidly in
numbers in the country. 9articularly, since the Third 'ive Lear 9lan, small
entrepreneurs have experienced tremendous increase in their numbers. "ut, they
lac#ed entrepreneurial ability, however.
The fact remains that even the small entrepreneurship continued to be
dominated by business communities though at some places new groups of
entrepreneurs too emerged. Also, there are examples that some entrepreneurs
+B
grew from small to medium4scale and from medium to large4scale
manufacturing units during the period. The family entrepreneurship units li#e
Tata, "irla, !afatlal, Calmia, ?irlos#ar and others grew beyond the normally
expected size and also established new frontiers in business in this period.
-otwithstanding, all this happened without the diversification of the
entrepreneurial base so far as its socio 4economic ramification is concerned.
./#0eral#1at#on was catal2st for rowt! of Entre"reneurs!#" #n In%#a3
9ost4liberalization, entrepreneurship has generally increased in India, Dr
!ani told "usiness Line. And #nowledge4intensive entrepreneurship in sectors
such as IT and biotechnology has also increased since the economic
liberalization process started in +FF+, he added.
The number of new companies formed during the +F@64266D period points
to a possible growth in entrepreneurship. 'igures from the !inistry of
$orporate Affairs show that from +F@6 to +FF+, the average number of
companies formed each year was +:,7EF, while from +FF2 to 266D, the average
number of companies formed per year was 77,@7B. According to the paper,
liberalisation itself #ic#4started the growth of entrepreneurship in India for it
presented businesses in the country with new mar#et opportunities.
+D
iberalisation also reduced entry barriers for new entrepreneurs as it
dispensed with or reduced regulatory measures such as industrial licensing.
%imilarly, improved availability of financial support from both official and
private sources boosted the growth of entrepreneurship. Gowever,
entrepreneurship in India could have grown much faster if the capital mar#et
had been strengthened to support the system.
*ven today, the capital mar#et is not a ma0or source of finance for enterprises,
which mostly rely on internal sources of funding or debt. A study of B@@ start4
ups that participated in a competition conducted recently by -ational
*ntrepreneurship -etwor# revealed that E6 per cent relied on personal savings
for initial funding, he pointed out. ;overnment4supported and public4private
partnership ventures such as the -ational %cience and Technology
*ntrepreneurship Cevelopment "oard, Technopreneur 9romotion 9rogramme
and business incubators in colleges and technology par#s also facilitated the
growth of entrepreneurship in India.
%imultaneously, private sector initiatives such as The Indus *ntrepreneurs and
-ational *ntrepreneurship -etwor# also supported India)s #nowledge4intensive
enterprises. The increased availability of technically trained people and
programmes that offered formal training in entrepreneurship also bolstered the
growth of entrepreneurship.
+E
CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA
According to the ;lobal *ntrepreneurship !onitor 3266E5 report, India)s Gigh4
;rowth *xpectation *arly4%tage *ntrepreneurship 3G*A5 rate is only one4fifth
of that of $hina. 'urther, among medium and low income countries, while
$hina)s nascent and new
entrepreneurs appear to be the most growth4oriented, with more than +6 per cent
of them anticipating high growth. *arly4stage entrepreneurial activity in India is
mar#ed by low levels of growth expectation. This is despite the extremely high
levels of potential entrepreneurial activity as perceived by the non4
entrepreneurially active population in the country. .hile data on
entrepreneurship is hard to come by, the following numbers are telling.
According to the -%% D2nd round, in rural India, almost B6 per cent of all
wor#ers are self4employed / BE per cent among males and nearly D2 per cent
among females, while the corresponding figures in urban India are :2 for males
and :: for females. The -%%> defines a self4employed person as one who has
wor#ed in household enterprises as own4account wor#erI wor#ed in household
enterprises as an employer or wor#ed in household enterprises as helper. The
essential feature of the self4employed is that they have autonomy 3decide how,
where and when to produce5 and economic independence 3in respect of choice
of mar#et, scale of operation and finance5 for carrying out their operation.
According to the Bth *conomic $ensus conducted by the $entral %tatistical
+@
>rganisation 3$%>5, there are :+.@7 million establishments in the country
engaged in different economic activities other than crop production and
plantation. 'ive states viz. Tamil -adu 3+6.D6 per cent5, !aharashtra 3+6.+6 per
cent5, .est "engal 3+6.6B per cent5, Attar 9radesh 3F.D+ per cent5 and Andhra
9radesh 3F.BD per cent5 together account for about B6 percent of the total
establishments in the country. The same five states also have the combined
share of about B6 per cent of total employment.
Issues #n t!e Current Fra4ework
F#nance' Access to credit is considered to be one of the #ey problems faced by
entrepreneurs in India. This problem is particularly acute at the start4up stage,
where ban# finance is hard to obtain. Cespite new sources of finance such as
venture capital, angel funding and private e1uity becoming increasingly
popular, institutional finance is still not able to meet the current entrepreneurial
demands.
Reulat#on an% o5ernance' An entrepreneur has to deal with a host of
regulatory and compliance issues. These include registering one)s business,
obtaining government clearances and licenses, paying taxes and complying with
labour regulations. $umbersome paperwor#, long delays and red tapism
involved in such transactions create unnecessary burdens for entrepreneurs,
constraining their productivity and their ability to do business. As seen in the
Coing "usiness 266@ ran#ings, India performs poorly in these indicators. A
+F
study investigating the effect of regulation on entrepreneurship using the ;*!
dataset shows India to be having one of the worst regulatory indices. !oreover,
lac# of clarity on information relating to legal and procedural aspects of starting
an enterprise, as well as those relating to clearances, licenses and government
schemes further aggravates the problem.
In%#a6s Rank#n #n Do#n $us#ness 7889
%tarting a "usiness 4+++
Cealing with icenses 4+7:
*mploying .or#ers 4@B
&egistering 9roperty 4++2
9aying Taxes 4+DB
Trading Across "orders4 EF
*nforcing $ontracts 4+EE
$losing a "usiness 4+7E
(Source: Doin# "usiness, $orld "ank, %&&'
:an"ower' Availability of s#illed manpower is another crucial issue for
entrepreneurs. 'or example, in a survey of entrepreneurs conducted by ?9!;
and Ti* in 266@, s#illed manpower emerged as the second most important
factor for fostering entrepreneurial growth. 'urther parameters reflecting labour
mar#et efficiency and flexibility are dismal. In the ;lobal $ompetitiveness
26
Index, India ran#s +62nd in hirin# and ( rin# practices and @Bth in employin#
workers in the Coing "usiness 266@ report.
Infrastructure' India)s physical infrastructure / roads, rail, ports, power, and
telecom / is also considered to be a bottlenec# to the smooth operation of
entrepreneurial activity. The high transport and supply chain costs that poor
infrastructure entails can be affect competitiveness to a great extent, particularly
for a small and medium enterprise. *nterprises surveyed in the ;lobal
$ompetitiveness &eport 266E46@, rated inade1uate infrastructure as (the most
problematic factor) for doing business in India.
E%ucat#on' .hile the influence of education on entrepreneurship is considered
debatable, increasingly education is being seen as part of the larger ecosystem
that impacts entreprene4urship and entrepreneurial motivations. ;reater
practical exposure, critical analysis, entrepreneurship curriculum, incubation
and mentoring, industry4research lin#ages can help in fostering
entrepreneurship.
2+
CASE STUD;
$hen one becomes a household name, one is, by de(ault, elevated to a certain
level o( e)clusivity. "ut with some people, turnin# into a brand name only
brin#s them closer to the people. Shahna* +usain is one such personality.
The first person to ta#e herbal care to the world stage, %hahnaz Gusain had a
0ourney full of learnings and experience. .ith over +6 years of training in
cosmetic therapy and cosmetic chemistry, she has created innovative products
in the field of natural beauty and anti4aging treatments. Ger innovations and
uni1ue strategies had led her to win many prestigious awards including India)s
highest honor, the 9adma %hree.
22
%hahnaz husain is an ,nnovative entrepreneur she can be categorized as a
"usiness entrepreneur because her life reflects her eagerness to start a business
on her own terms and she adopted an innovative method and used ALA&=*CA
as the base to produce products s#in and hair care treatments. %he is pure
entrepreneur and a (irst-#eneration entrepreneur she has achieved the heights
only on her terms and thus as she said anything that carries her name catches up
is very true. %he can be categorized as a -rowth entrepreneur who climbed the
ladder slowly but reached each height as she desired.
'actors that influenced %hahnaz Gusain was her desire to ma#e use of her
entrepreneurial expertise, she did not belong to a business family but she was
from a very well educated family and thus she wanted to ma#e use of her study
on cosmetology and ayurveda it was her desire to produce cosmetics and beauty
products which were chemical after she read an article about chemicals in
cosmetics and how chemicals were harmful. %he then made up her mind to
produce products on the basis of ayurveda studies and to produce chemical free
beauty, s#in and hair care products. Thus it is her personality which is the factor
which has made her a successful entrepreneur.
%hahnaz Gusain can be given the title of India)s first successful women
entrepreneur. Ger dedication towards her wor#, her ability to dream and exhibit
it and to thin# innovative and to lift her business to her terms is 0ust
unbelievable. %he is a women who lives for her products as she said her
27
products are chemical free, there is no other exception. Ger products are made
of pure natural products which are produced as per the ALA&=*CA studies
and are chemical4free. A product sold on her name carries the purity of natural
ingredients and chemical4free there is no need to cross4chec# the product and
the results are as expected and as per the instructions on the 0ar. Ger customers
are her advertisers and the aim of the company is to satisfy their customers and
to produce products as per the need of her customers. %hahnaz husain has made
her name not only in the beauty business in India but all over the world. Ger
#ohl to her fairness cream for men have been a great hit all over the world.
%hahnaz Gusain is an inspiration to each and every individual who wants to
become an entrepreneur.
Gere is an exert of her legendary 0ourney and understanding of
entrepreneurshipK
)< Inter5#ew an entre"reneur w!o owns a 0us#ness of *8 crores 4#n#4u4
%hahnaz was the first Asian to enter ;aleries afayette in 9aris in herbal care
and the first Asian to be featured in the +@4foot shop window of the famous
9aris store. Gers is the first Indian herbal cosmetic company to have featured in
Garods and %elfridges.
%hahnaz is also the pioneer of vocational training in beauty in India. !ore than
2B years ago, when only apprenticeship training was available, %hahnaz started
2:
her beauty institute, .omanJs .orld International, to provide comprehensive
training in beauty. Today, students come from all over the world to ac1uire
training in Ayurvedic treatments and receive the coveted %hahnaz Gusain
Ciploma.
7< W!#le s"eak#n to !#4=!er f#n% out t!e follow#n t!#ns
%hahnaz Gusain belongs to a royal !uslim family which migrated from
%amar#hand to India and later held high positions in the princely #ingdoms of
"hopal and Gyderabad before IndiaJs independence. %hahnaz received her
schooling in an Irish convent and because of the influence of her father, $hief
Hustice -.A. "eg, she developed a love for poetry and *nglish iterature. %he
thus had the advantage of growing up in a traditional family and receiving a
modern education.
%he had to overcome various social and economic hurdles. It was a time when
women were 0ust stepping out of their homes and pursuing careers. It was her
family)s support and understanding that helped her to overcome barriers and
realise her dreams.
"ut she never planned it this way. Ger life was on a very different course. %he
was married at +B and at +D, she was a mother. ife seemed perfect, but she was
bored with the drudgery of endless routine. %he was always interested in beauty
and in ma#ing others beautiful, so %he decided on beauty as a career. %he was
2B
determined to get the best training possible and decided to wor# my way to the
prized institutions of the .est, to learn cosmetic chemistry and cosmetology.
Ger husband was posted in Tehran at the time and because %he loved to write,
%he started contributing articles to the Iran Tribune. %omehow, she was
convinced that if she was highly 1ualified in my field, %he could have the world
at my feet. %o gradually, she wor#ed my way to leading institutions li#e Gelena
&ubinstein, $hristine =almy, %warz#opf, ancome and ean of $openhagen.
.hile training in ondon, she came across instances of damage caused by
chemical treatments. In a way, this changed the course of my life and career.
%he wanted to find a natural alternative that was safe. Ger study of Ayurveda
convinced me that it could offer the ideal answers to modern cosmetic4care. %he
came bac# to India and started my first herbal salon in the verandah of her home
in -ew Celhi, in +FE+. %he established customised beauty care, with a
personalised style, based on individual needs and problems. %he adopted the
concept of herbal care and cure. %he devised her own salon treatments and
formulated her own products.
Gerbal beauty care throughout India is fashioned after the %hahnaz Gusain
products and innovations. The brand has already established identity and
loyalty. They are the leaders in the premium segment in Ayurvedic beauty care.
They have also entered the middle segment with their %hahnaz Gusain range,
2D
which is doing really well, on the strength of brand identity. In India, there is
enduring faith in Ayurveda and Ayurvedic beauty care.
India is a country where traditions have existed side by side with modern
technological advances. In fact, the character of modern India is firmly rooted in
a rich cultural past. Ayurveda is the oldest and most organised system of herbal
healing in the world and has maintained its position due to our faith in herbal
and natural healing. It is this very aspect of herbal and natural healing that has
drawn the people from the west towards Ayurveda.
'our decades ago, when %he started my career, %he re0ected the existing concept
of beauty and adopted my own. %he always say that at that time beauty
treatments were mainly (colour and cover.) %uperficial beauty treatments and
hairstyling was what women went for, without realising that beauty is actually
the outcome of long term care. -o heed was paid to the health of the s#in and
hair and the potential dangers of chemical treatments. In fact, there was hardly
any awareness of other detrimental effects on beauty, li#e exposure to A= rays,
environmental pollutants, artificial heating and cooling. "eauty treatments from
the perspective of cure, was un#nown. The bac#4to4nature trend had not yet
begun. %he adopted the principle of (care and cure) and established herbal
beauty care. Today, it is that care, which has driven the growth of the beauty
industry in India. There is much greater interest in good health and fitness. The
2E
bac# to nature trend has influenced beauty treatments. The concept of total well
being is steadily gaining ground.
*ntrepreneurship is the practice of starting new organizations or revitalizing
mature organizations, particularly new businesses generally in response to
identified opportunities.
*ntrepreneurship is a creative human act involving the mobilization of
resources from one level of productive use to a higher level of use. ,It is the
process by which the individual pursue opportunities without regard to
resources currently controlled.,
*ntrepreneurship involves a willingness to ta#e responsibility and ability to put
mind to a tas# and see it through from inception to completion. Another
ingredient of entrepreneurship is sensing opportunities, while others see chaos,
contradiction, and confusion. *ssence of *ntrepreneurship is going against time
with maturity and serving as a change agent.
*ntrepreneurship is considered to be a significant determinant of economic
development. -ew entrepreneurial activities play a vital part in the process of
creative destruction that fosters innovation, employment, and growth. .hile
India has traditionally been an entrepreneurial country, it fares poorly in
numerous global studies exploring the entrepreneurial and business potential of
countries but, on the other hand on the most conservative basis, our domestic
consumption, in virtually any sector, has the potential to at least double, or
2@
treble, from current levels / perhaps, 0ust to catch up with a country li#e $hina.
Then, there is the entire global opportunity, across diverse sectors
internationally, the ,!ade in India, tag is now an increasingly respected brand,
valued for 1uality, reliability, and competitiveness. Truly, with economic
reforms in the country, and with the virtual removal of all trade barriers, the
world is now our mar#et and our opportunity. The pursuit of these opportunities
re1uires an indomitable spirit of entrepreneurship. *ntrepreneurship is often a
difficult underta#ing, as a vast ma0ority of new businesses fail. *ntrepreneurial
activities are substantially different depending on the type of organization that is
being started. *ntrepreneurship ranges in scale from solo pro0ects 3even
involving the entrepreneur only part4time5 to ma0or underta#ings creating many
0ob opportunities. !any ,high4profile, entrepreneurial ventures see# venture
capital or angel funding in order to raise capital to build the business. Angel
investors generally see# returns of 264768 and more extensive involvement in
the business
>bstacles and hurdles come up in life, but %he have tried to meet them as
challenges, with her desire to excel, her relentless determination to succeed, an
iron will and sheer hard wor#. %he believes that one should never stop trying
because that way, you can cannot fail. %he believes that nothing is impossible.
Lou can be what you will yourself to be. Lou can ma#e your own destiny.
2F
7< W!at #s t!e role of fa#lure #n 0us#ness an% l#fe &
According to her, *ntrepreneurship actually implies an independence of spirit. It
is this independence that women in India have begun to express over the last
two or three decades. That is why the percentage of women among the total
number of entrepreneurs in India has been steadily growing.
Three decades ago, there were only salons for women. It was a business that
dealt only with women. In fact, at that time, she had only employed women.
"eauty was not as big a business as it is today. 'or these reasons and because it
was her own enterprise, the 1uestion of gender bias or a glass ceiling did not
arise.
>< W!at #ns"#re% 2ou as a stu%ent after #nteract#n w#t!& an% #nter5#ew#n
t!e entre"reneur?
India has a great deal to offer to the rest of the world. An entrepreneur always
needs a vision, in order to ma#e dreams a reality.
*ntrepreneurship actually implies an independence of spirit. It is this
independence that women in India have begun to express over the last two or
three decades. That is why the percentage ofwomen among the total number of
entrepreneurs in India has been steadily growing. %ocioeconomic factors have
to be considered. !oreover, India is a developing country and the rate of
growth in women entrepreneurship would be slower than in developed
76
countries. The reasons why we do not have so many first generation
entrepreneurs could be less motivation, less support from family and other
institutions, fewer opportunities for professional and vocational training, and
economic constraints. Gowever, in each of these aspects, there is a change for
the better. .e need to give importance to the ac1uiring of professional
1ualifications and training, so that women can express their creativity and
innovative ness with more confidence. =ocational training should include
aspects of business management. 'or example, our professional beauty courses
include business and salon management, as well as client handling, with
emphasis on how to ma#e the enterprise profitable and successful. In fact, very
early in my career I started encouraging ordinary housewives to open salons in
their own homes. At that time, the idea was relevant, because a woman could
achieve financial independence and yet, be close at hand to care for home and
family. !oreover, starting a salon in a small way in oneJs own home did not
re1uire much capital investment. In India, the women who are educated and
have professional 1ualifications turn towards securing employment, rather than
assume the un#nown factors and ris#s of entrepreneurship.
,< Do 2ou !a5e "lans of start#n 2our own 0us#ness?
To be successful in the business world, one needs to have a dream and a burning
desire to ma#e those dreams come true. An entrepreneur, in the true sense of the
word, is someone with independence of spirit. Along with that, there is total
7+
faith and confidence in oneJs own abilities. 'oresight is also important, because
one has to thin# ahead and be able to predict trends. This is needed, to #now
what the mar#et demands will be. A sixth sense also helps, to be able to feel the
pulse of the trend and the mar#et.
To evaluate the worth of an idea, one has to have a feel of mar#et trends and
changing levels of awareness. I thin# women have the sensitivity for this. Lou
may start in a small way, but you have to thin# ,big,. Lou have to thin# that
nothing is beyond you. In fact, in seizing opportunities and loo#ing forward to
challenges lies the secret of a successful entrepreneur.
I want to be a *ntrepreneur because, there are ample opportunities in small
businesses in India and such opportunities will transform India in the coming
future. 'or such transformation to happen there needs to be support both at the
governmental and societal level. 'or the government it is important to realize
that the goal of small business owners will be to remain self4employed. %uch
people may not need financial assistance but they will need mar#eting and legal
assistance in order to sustain themselves. 9ractical and cost effective programs
need to be developed to address their needs because self4employed people will
represent an important segment in economic revitalization. *ntrepreneurship
development is the #ey factor to fight against unemployment, poverty and to
prepare ourselves for globalization in order to achieve overall Indian economic4
progress.
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