Entrepreneurship in India
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This ten minute video describes the views of numerous women entrepreneurs in India that are working within family managed businesses. Women business entrepreneurs and women business leaders have been increasing in India in within the past decade, concerning their involvement in family managed businesses specifically. This shift is thought to be because of the more common nuclear family structure in India and increased education for Indian women. Challenges still exist though including balancing working with family life, such as: taking care of the elderly, children, and devoting time to married life. Factors that make Indian women successful in family businesses are thought to be being involved during their childhood and preparing oneself academically for their role. The women interviewed also discussed the advantages and disadvantages of being a women entrepreneur. Disadvantages include being able to separate work and family life and having an overload of responsibilities that makes time management difficult. Advantages include having a more emotional aspect added to the business, such as more intensified passion towards their work and compassion for employees.
In India, women compose about thirty percent of corporate senior management positions, which is actually higher than most other countries in the world. ‘Forbes India’ wrote an article about how they think women actually have a better edge than men for these positions. This is due to the fact that women are the ones in the household that do the household spending, so they are more likely to understand consumer perspective. As well as the fact that they are better at building long-term relationships. (Richards, 2015)
This relates to material in chapter one of our book under the section, ‘Gender Bias and Other Types of Disparity in Entrepreneurship,’ discussed on pages 8-9. The book explains how women are less common in the work force due to “lack of support such as access to advice, money, and training rather than the lack of business traits. (Page 9) As one can see from watching the video about family businesses, those women do receive advice, money, and training when they are being handed a business down from their elders which could explain why it is on the rise in India. (Kshetri, 2014)
Kshetri, Nir. Global Entrepreneurship: Environment and Strategy. New York: Routledge, 2014. Print.
Richards, Dave. “Why India Needs More Women Entrepreneurs.” Forbes India Magazine. N.p., 12 Aug. 2015. Web. 19 June 2016.
Brexit (http://blogs.wsj.com/economics/2016/06/24/economists-react-to-brexit-a-wave-of-economic-and-political-uncertainty/) is a major recent development that might have significant effect on entrepreneurial activities in a number of economies. Please do some research on the effects of this event on entrepreneurship in the U.K., the EU, the U.S. or any other economies and post as a reply. It would be great if you can connect with some concepts discussed in the book.
The seeds of the European Union began as a post World War 2 effort to unify Europe. The Union advanced in the 1970’s and by the 1990s it was seen more as a trade deal consolidating economic interest across Europe. The European Union has given citizens living in the region with unprecedented freedom to live, study, travel and retire in the EU. The EU advances the regional mobility of Britons and Europeans alike to freely travel without visas or work permits. The European Union was seen by some as integral in protecting citizens rights across all borders while imbuing younger Europeans a sense of international identity. Among the positives of the EU was the ability for firms to conduct business across the borders of the EU nations and Eurozone with ease. On June 23rd after much controversy the final vote was counted as 51.9% to exit and 48.1% to stay shocking the world invoking a referendum for article 50 to exit the EU.
Many nations in the EU fear the European Union was trending downward with some feeling that the stronger economies have carried weaker economies. Events such as the Greek debt crisis and austerity has been an issue in the recent years. Many other nations have also wanted referendums on possibly exiting the EU notably France, Sweden, Denmark and Greece. Some cite that Switzerland have been successful without joining the EU.There was some trepidation about a recent migrant crisis with political refugees from war torn nations being forced to migrate within Europe to seek asylum.The unemployment rate in some EU nations is higher than 20% while the UK unemployment rate has been over 5%. The United Kingdom had the 5th largest economy in the world and is the 2nd largest net contributor to the European Union and one of the larger export markets in the eurozone. Many Britons feel that the excess EU bureaucracy stifles growth while the European Union’s regulations exceed the intended purpose.There is also the notion or issue that the EU would impose law supranational to national law coupled with a distrust of Germany’s strong role in the EU. Proponents of the Brexit may be incensed to know the UK is perhaps still binded to many of those pre existing agreements even with the alternative EEA single market plan
The United Kingdom is known as the financial capital of Europe and perhaps the world. In the recent years the UK has been making a concerted effort to court entrepreneurs with london as the economic and entrepreneurial hub. London itself has been actively pursuing many technology entrepreneurs with aggressive tax policies to compete with places such as Silicon Valley and San Francisco. The recent exit vote now makes the likelihood of reaching many of those goals uncertain now. Entrepreneurs and major firms from the United Kingdom now risk not having unrestricted access to the EU and eurozone nations. There have been rumblings about replacing the UK’s role as a hub of the EU with cities like Dublin or Amsterdam. The exit vote also could put Britain’s relationship with Ireland and Scotland in jeopardy by placing the unity of United Kingdom at risk therefore reducing the bargaining power of the UK. The United States who initially preferred to negotiate with Europe as a single trading block now faces additional challenges to passing the controversial TTIP trade bill with Britain’s exit. The Brexit may threaten newly minted UK firms access the European market consisting of approximately 500 million people and 21 million SMEs. Proponents hope for increased access to the larger world market of 6.9 billion outside the EU. The shock to the markets and devaluation of the British Pound will definitely affect liquidity and the ability to raise capital for SME’s with some adverse and others favoring the weaker Pound for investment. The likelihood that the supposed increase of national sovereignty will alter the economy dearly has many SME’s uneasy.
(Links to an external site.)https://www.youtube.com/watch?v=KHpbu9mqFJs
Edited by Rudolph Williams on Jun 28 at 2:07am
Entrepreneurship in OECD Economies
I will start off by providing the meaning of OECD (Organization for Economic Cooperation and Development), which consists of governments of 34 democracies including the United States as an OECD country. The topic of “Entrepreneurship in OECD Economies” was extremely interesting to me specifically women entrepreneurship in OCED economies especially here in the United States. During my research of women entrepreneurship in the United States, I was looking for a definite answer on what was the major hold up with women entrepreneurship.
As a new real estate agent in an OECD country I work hand and hand with women and men entrepreneurs and from my experiences I love what women entrepreneurs bring to the table. At the beginning of this year I joined one of the top producing real estate firms in the Triad hoping to add on to the success that was already there, but most importantly was to absorb all the entrepreneurship knowledge from successful real estate veterans. Observing how women entrepreneurs run their businesses I think it should be promoted more for women to become entrepreneurs being that they bring just as much to the table as a men.
For instance, at the firm I’m affiliated with all the CEOs and a vast majority of the top executives are women. From witnessing how successful men entrepreneurs use their business approach in an effective way, I see exactly what successful women entrepreneurs approach adds to a business. Both men and women can be successful entrepreneurs I just believe we as a whole should encourage and promote women entrepreneurship more to close the gap between men and women considering women bring so many great characteristics to table that would benefit all of us.
According to www.forbes.com (Links to an external site.), “For every 10 men involved in entrepreneurship, there are seven women. This number dipped from eight women for every 10 men in 2011. One contributing factor was that men’s rate of new business creation increased, while women’s held steady.” Considering that there are programs to help empower women entrepreneurs such as The Tory Burch Foundation, which focus on mentoring women to become entrepreneurs.
Pofeldt, E. (2013, March 27). U.S. Entrepreneurship Hits Record High. Retrieved July 03, 2016, from http://www.forbes.com/sites/elainepofeldt/2013/05/27/u-s-entrepreneurship-hits-record-high/#7b9ea94673aa
Entrepreneurship has become a truly global phenomenon as indicated by an increased appetite for entrepreneurial ventures worldwide. Economies across the world, however, differ in terms of the natures of entrepreneurial activities, environments to support these activities and other key ingredients of entrepreneurship such as the regulations, policy, culture, access to market, and availability and types of finances and technology. This chapter provides an overview of the context, mechanisms and processes associated with the current Global Entrepreneurial Revolution. It introduces and defines a number of key concepts related to global entrepreneurship. Also discussed are key indicators related to determinants, performance and impacts of entrepreneurship.
While reading chapter one in our textbook the section on variation in entrepreneurial activities across the world captured my attention. Our book goes into detail on: qualitative differences, motivation and intended goals of entrepreneurial activities, gender bias and other types of disparity in entrepreneurship, and effects of political, cultural and other broad environmental factors. One major difference between economies is their populations’ willingness to engage in entrepreneurial ventures. “For instance, only 0.18 percent of the population in Indonesia is engaged in entrepreneurial activities16 compared to about 7.5 percent in the US.”
There are many entrepreneurship opportunities arising in developing countries but most lack high-impact entrepreneurship. Most countries consist of small entrepreneurs such as farmers while other countries have high preforming global firms. Having motivation to create a successful and profitable business is the driving force in some countries, such as China, but not in all countries, such as the United States. “The GEM study found that fewer than 40 percent of Chinese entrepreneurs started businesses to have more independence, and more than 60 percent of them did so to increase their income. On the contrary, in the US, only about 40 percent of entrepreneurs start businesses to increase income, while almost 60 percent do so to gain more independence.” This is important because Chinese are more likely to generate profit, leading to business success than other countries.
Gender bias is another contributing factor worldwide. There has been ongoing controversy on if women are capable of preforming “as well as” men in certain professions and roles within a company. While some of these studies found emotional attributes to promote/defend this topic, some studies have found women receive less support in areas such as: advice, money, and training. “An analysis of data from cross-country Business Environment and Enterprise Performance Survey (BEEPS) suggested that female-managed firms were less likely to obtain a bank loan than male-managed ones. Moreover, for the approved loan applications, female entrepreneurs were charged higher interest rates than their male counterparts.”
According to an article from Forbes website, woman hold 30% of all private wealth in the world. When you break that percentage down even more, around 44% of those women self-made their fortune in an entrepreneurial or company manner. The rest of the women in the study got their wealth from inheritance, spouse, or divorce settlements. Women’s wealth alone accounts for up to $39.6 trillion globally, that speaks volumes for how women are increasing their success in the workforce.
“Fighting for women’s rights has too often become synonymous with man-hating. If there is one thing I know for certain, it is that this has to stop.”
 Excerpt From: Nir Kshetri. “Global Entrepreneurship.” iBooks (Page 45). https://itun.es/us/yR_FZ.l
 Excerpt From: Nir Kshetri. “Global Entrepreneurship.” iBooks (Page 46-47). https://itun.es/us/yR_FZ.l
 Excerpt From: Nir Kshetri. “Global Entrepreneurship.” iBooks (Page 47). https://itun.es/us/yR_FZ.l
 Tindera, Michela. “Women Hold Nearly One Third Of Global Private Wealth.” Forbes. Forbes Magazine, n.d. Web. 6 June 2016.
 Caprino, Kathy. “Why Men And Women Are Held To Dramatically Different Standards, And Women Are Punished.” Forbes. Forbes Magazine, n.d. Web. 12 June 2016.
In the 2013 FORBES Global list of the 2000 biggest public companies, 63 countries were represented. The 2016 list (http://www.forbes.com/global2000/list/)also features public companies from 63 countries. These companies account for $35 trillion in revenue, $2.4 trillion in profit, $162 trillion of assets. They have a combined market value of $44 trillion.
The top three spots in the FORBES Global 2000 list in 2016 are held by Chinese banks. Industrial and Commercial Bank of China (ICBC) is the world’s biggest public company. Some analysts are, however, concerned about the “health” of China’s banking sector. Some concerns include a worsening liquidity crisis, a “sub-prime debt time-bomb (Links to an external site.)” hiding inside China’s banking system, and questionable accuracy of Chinese banks’ measures of their own health.
How various determinants of entrepreneurship in China differ from those in the U.S. and other countries?
Also please visit the website: http://www.forbes.com/global2000/list/ (Links to an external site.) and provide comments about the biggest firms from a country (say India) and the associated entrepreneurial environment.
 DeCarlo, S. 2013, ‘The World’s Biggest Companies’, 17 April, 2013, at http://www.forbes.com/sites/scottdecarlo/2013/04/17/the-worlds-biggest-companies-2/.
 Steve Schaefer (Links to an external site.) May 25, 2016 “The World’s Largest Companies 2016,” http://www.forbes.com/sites/steveschaefer/2016/05/25/the-worlds-largest-companies-2016/#2b299b3c37eb (Links to an external site.)
 Watts, JM. July 01, 2013 “China’s ICBC knocks Bank of America off the top spot as the biggest bank in the world”http://qz.com/99281/chinas-icbc-knocks-bank-of-america-off-the-top-spot-as-the-biggest-bank-in-the-world/
The Chinese Financial Crisis
The Chinese markets have had a disastrous start to the year. “On Tuesday the Shanghi composite closed down 6.4% 2749 the lowest close in 14 months.” (Mullaney) Despite market losses Beijing remains optimistic. Joe Kaeser the CEO of Siemens expressed his opinion regarding lots of opportunities in china.
Has China lost its credibility as the driver of world markets? Some market analysts believe so, yet others like Ha Jiming, Vice Chairmen, Goldman Sachs, China, believes that this sentiment is overblown. There are current issues with Chinese currency. “An evaluation by Moody’s investor service says there is a chance of 0.5% t0 1.5% of default risk.”
In 2008 the US had a major mortgage crisis. “Subprime mortgages were given to people who had poor credit or histories of late or missed payments.” (C.) These people were allowed to procure loans and then when the bottom of the housing industry bottomed out these homes were foreclosed on or the buyers just left the home. Some people are comparing the US subprime mortgage crisis to what is happening in China. Thankfully these two events are not related nor should there be a similar issue in China.
The Chinese state can force banks to lend to businesses where in the US the government cannot force banks to lend. So even though the default risk of Chinese banks has increased it will not impact the US because of capital buffers that have been placed as a result of the crisis of 2008.
- Mullaney, T. (2016). $11 trillion China contagion could blow up markets. Retrieved June 18, 2016, from http://www.cnbc.com/2016/01/26/chinese-bank-outlook-in-2016.html
- (2012, May 02). Good Explanation of the Subprime Mortgage Crisis. Retrieved June 18, 2016, from https://www.youtube.com/watch?v=-vboCTGpI8Y https://www.youtube.com/watch?v=-vboCTGpI8Y (Links to an external site.)
Some describe China’s culture as “success-obsessed” which is incompatible with the prevalence of failure in startup ventures. Most other types of financing models, only a few experienced investors know about the failure. In such cases, the failed entrepreneur can still maintain his/her social dignity. It is argued that the public exposure of crowdfunding is likely to discourage “humiliation-averse entrepreneurs” from participating.
Some initiating events or triggers also known as disruptive events ((Meyer, 1982), shocks (Fligstein, 1991), jolts (Meyer, 1982), or discontinuities (Lorange, Scott, & Ghoshal, 1986) can overcome the effects of institutional inertia (White, 1992). Some argue that the 2011 earthquake has acted as a jolt for Japan’s CF landscape. Haruka Mera, who founded the ReadyFor? put the issue this way: “Compared with the US or UK, the whole concept of crowdfunding does not come naturally to the Japanese. But I think that things have changed a lot since the  earthquake. Japanese society was given a very big reminder that it needs to work together to make things happen and to take the country forward”.
 SeedInvest Technology, 2016. Future of Crowdfunding in China, https://www.seedinvest.com/blog/crowdfunding/futureofcrowdfundinginchina
 Meyer, A. (1982). Adapting to environmental jolts. Administrative Science Quarterly, 27, 515–537.
 Fligstein, N. (1991). The structural transformation of American industry: An institutional account of the causes of diversification in the largest firms: 1919–1979. In W. Powell & P. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 311–336). Chicago: University of Chicago Press.
 Lorange, P., Scott, M. M., & Ghoshal, S. (1986). Strategic control systems. St. Paul: West.
 White, H. (1992). Identity and control: A structural theory of social interaction. Princeton, NJ: Princeton University Press.
 Leo Lewis. January 8, 2016. Female entrepreneurs flock to crowdfunding site in Japan, http://www.ft.com/cms/s/0/626d26dc-b531-11e5-8358-9a82b43f6b2f.html
Entrepreneurship in the Gulf Cooperation Council Economies
describes social, economic and environmental problems created by gold mining operations in Ghana. Many of the world’s big gold mining companies are operating in Ghana. There are complaints that farmers’ lands have been taken over by mining, farmers have lost their jobs and rivers are polluted (McCarthy, 2011). Critics argue that claims such as gold mining creates jobs, promotes development and enhances people’s lives are only myths that are not supported by actual facts.
This video is related to chapter 7 of out textbook, which argues that Africa’s oil or mineral wealth is a curse rather than a blessing, which has led some countries in the continent to economic and political instability, social conflict and environmental degradation. Faced with examples such as these in many resource-rich African countries, some authors have used the term “resources curse” to describe their economic failure (Auty, 1998).
McCarthy, Diane. Ghana farmers lose out in gold mining boom, CNN, December 12, 2011http://edition.cnn.com/2011/12/12/world/africa/ghana-gold-owusu-koranteng
Auty, R (1998). Resource Abundance and Economic Development. World Institute for Development Economics Research, Helsinki
In Ghana, the presence of gold had done a great deal to injure the local economy and destroy the local environment. Only 3% of revenues from gold mines in Ghana become part of the country’s economy .
Unemployment and underemployment in the area is rampant. Children are forced to engage in very dangerous work, digging for bits of gold too small for the large machines to pick up, in order to feed their families. Many have had to drop out of school because they can no longer afford food, much less books and school supplies. Wells, creeks, and rivers are full of pollutants from the gold mines, like mercury and cyanide, and drinkable water is in very short supply. Illness from toxic exposure is common. Local farmers are waking up to their crops being destroyed by mining companies taking over their property without permission .
Why is all of this happening? Because the price of gold has doubled from 2009 to 2013 due to the economic downturn. Gold is an incredibly profitable resource, which has brought a surprising group of people into Ghana: illegal mine workers from China .
Companies are creating illegal mines all over Ghana and bringing in illegal Chinese workers who are drawn in by the promise of higher pay than they would have gotten back home in their native China. Officials say that only about seventy-five Chinese labors have been given the permission to come and work in the mines legally, but thousands more have been brought in to work illegally. Not only is this taking away much needed work from locals who are already struggling with poverty, but the presence of the illegal workers has increased the tension at the mines between the Chinese and the few locals employed .
Violence and suspicion are rampant in the mines and many are grievously injured and robbed. There is little that the local authorities have been able to do, though the Ghana Army has committed to cracking down on the illegal mining and making sure the mines are not reopened. 95% of the small scale mining in Ghana is illegal .
Police corruption is also making it difficult to gain headway in the battle against the illegal mines. Local police are often paid off by illegal mine owners and even by the illegal Chinese workers .
The loss to the local communities include the loss of tax revenue that would be gained from legal mine operations, the loss of jobs for Ghana’s citizens, and the lack of trust in the local authority to protect its people. A lack of trust could lead to fewer locals and outsiders trying to start new businesses in Ghana. With the loss of income to locals, financing for new ventures is also likely to suffer. People who are unable to feed themselves are not going to be able to start a new business or maintain an existing one. Until these illegal mines are shut down and legal ones using local labor are put in their places, the people and the economy of Ghana are likely to continue to suffer.
 “The Curse of Gold – Ghana”. Journeyman Pictures. Youtube. Accessed July 5, 2016. https://www.youtube.com/watch?v=QbNAtWHhXq4&feature=player_detailpage
 “The Price of Gold: Chinese Mining in Ghana documentary”. The Guardian. Youtube. Published April 24, 2013. Accessed July 5, 2016. https://www.youtube.com/watch?v=ohrrE1rjzLo
The use of crowd-based online technology for raising funds is gaining popularity and credibility. I have attempted to provide a better understanding of the effects of formal and informal institutions on the success of a crowdfunding project in a recent paper. It also analyzes how the effects of different types of institutions are likely to vary across the four different types of crowdfunding projects: (1) crowdlending, (2) crowdequity, (3) reward-based crowdfunding and (4) donation-based crowdfunding.
Please do some research on this topic in countries across the world and post here.
Chapter 2 expands the ideas and concepts discussed in chapter 1 to study interrelationships among key determinants of entrepreneurship development. We start with a discussion of the concept of natural ecosystem. An ecosystem encompasses a complex set of relationships among necessary ingredients and components of the system. The study of entrepreneurial ecosystems consists of the study of contexts, mechanisms and processes that link human and material resources in the ecosystem. The idea is that it is more important to pay attention to the whole system at work rather than individual elements. We also discuss how virtuous and vicious circles develop in an entrepreneurial ecosystem. . Finally, some examples of measures taken by governmental and non-governmental agencies to change some of the institutional factors to stimulate entrepreneurship are discussed.