Peaceful turbulence favours entrepreneurship but has some pitalls in choosing the right product, right process and right markets that an entrepreneur has scope to avoid by taking the right partners and developing knowledge as a key driver for growth and digitizing operations from day one.

1. ENTREPRENEURSHIP
How do you spell Entrepreneurship?
What do the different models of entrepreneurship mean?
What are some proven best practices?
How much does national culture hinder or favor entrepreneurship?
Entrepreneurship or Intrapreneurship?
Entrepreneurship is defined in the dictionary as the creation of value through the creation
of organization.
The second spelling, which is lately found in literature, does not find yet a place in
dictionary. This is often referred to that process in organization, which encourages
innovation, creativity and spontaneity in responding to situations that would benefit the
organization.
1. Entrepreneurs discover, invent, reveal, enact and in other ways make manifest
some new product, service, transaction, resource, technology, and/or market that
has value to some community or market place.
2. It is the process of providing a new product or service.
3. It is the process of starting and/or growing a new profit-making business.
4. Entrepreneurial behavior is opportunistic, value-driven, value adding, risk
accepting, creative activity where ideas take the form of organization birth,
growth or transformation.
5. Entrepreneurship is the intentional creation of value through organization, by an
individual contributor or small group of persons.
Characteristics of an Entrepreneur:
 Achievement motivation
 Risk-taking propensity
 Tolerance for ambiguity
A dynamic theory of entrepreneurship was first advocated by Schumpeter (1949) who
considered it as a catalyst that disrupts the stationary circular flow of the economy and
thereby initiates and sustains the process of development.
Concept of Innovation, embedded in entrepreneurship, and its corollary development
embraces five functions:
1. introduction of a new good;
2. introduction of a new method of production;
3. opening of a new market;
4. conquest of a new source of supply of raw materials; and
5. carrying out of a new organization of any industry.
Models of Entrepreneurship:

2. 1. The Laissez-faire Model: (De-regulation and Privatization)-LFM
No Government interference and regulations—Allows entrepreneurs to become
competitive and create wealth therefrom. E.g., The Cayman islands Company Law
has a series of liberal provisions for establishing firms:
Company directors may be of any nationality and domiciled anywhere in the world.
No direct taxation on income and capital.
No inheritance tax or no death tax, no capital transfer tax
No mutation tax on the transfer of immovable property.
Result: Constant inflow of capital for investment;
A catalyst to prosperity. In these islands, there is no apparent poverty, no
unemployment, no beggars and no roadside peddlers.
2. LIMITED ENVIRONMENT MODEL (LEM)::
Government should play a role in encouraging the small business sector, but that this
role should be limited to providing a positive environment. The ingredients are:
(a) Adequate infrastructure.
(b) Low levels of taxation
(c) A stable currency
(d) A free trade arrangement
E.g., Austria becoming a member of European Free Trade Arrangement – Tariffs
equal to those in EEC; stable exchange rate with German Deusche Mark.
3. STRATEGIC INTERVENTION MODEL (SIM):
State promotes small businesses through interventions in a market place.
e.g., Namibia has a public corporation, which serves as a visible hand that guides
small business in a market place. Government actively participates in the development of
small business by ensuring that training, research, finance, marketing, know-how and
support are available to small business.
4. SUBSIDISED INTEREST RATE MODEL (SIR):
Low cost loans: Subsidised interest rates to a few favored borrowers would create many
jobs. They develop into Chaebols; i.e., mega-conglomerates. E.g., South Korea—a small
number of highly diversified mea conglomerates.
5. The Egalitarian Model (EGMO):
Taiwan is a good example of this model. Non-discriminatory, eglitarian model
whereby all borrowing by entrepreneurs had to be at relatively high interest rates.
Small firms in Taiwan have equal access to capital.
Result: Emergence of multitude of small entrepreneurs; high interest rates were
an incentive to thrift and save rather than borrow. While subsidized loans in
South Korea resulted in a chaebol-dominated economy, the implementation of the
egalitarian model in Taiwan resulted in a nation of small businesses leading the
export regime.
6. The Trade Facilitation Model: (TFM)

3. Unique mercantalist model focused at the internationalization of small businesses.
Government assistance in Kenya is in the shape of facilitation rather than tangible
aid.
 Free consulting service to entrepreneurs
 Helping small business step by step from the inception.
7. The Top-down Reform Model (TDRM) :
East Germany after unification suffered because of heavy subsidization syndrome
in which they were brought up. The Unification led to collapse of employment
and markets. 2lac jobs are reported lost.
8. The Open Door and Reform Model (OPEDOR model):
China shows a successful experience. Chinese farmers are kept completely
outside the planned sector in order to promote entrepreneurship among them
9. The Doi-Moi Model (DOM):
It literally means ‘renovation’ or ‘new thinking’. It is compatible with restoring
the prestige of the ruling communist party of South Vietnam. It promoted
complimentarity and harmony between government firms still operating under a
system of centralization and the business sector operating independently.
IN A VAST COUNTRY LIKE India, where the cultural diversity is large and where
different ethnic groups with varying resource bases, entrepreneurship development is
inextricably linked to cultural background of the entrepreneur. Gujarat and Maharashtra
States are supposed to have born entrepreneurs. Kerala State seemed to have engendered
out-bound entrepreneurs. More on this subject follows.