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The IUP Journal of Entrepreneurship Development

March '09
Articles

Habitual Entrepreneurship: Situational Factors at Different Start-Ups

-- Jari Huovinen and Hannu Littunen

This study clarifies the situational factors in first-time and habitual entrepreneurship. The novelty of this study lies in the contingency approach which is unique in the field of habitual entrepreneurship research. The study was conducted in the region of Northern Savo in Eastern Finland. In total, 205 entrepreneurs had participated in the research. The primary analysis methods used are, logistic regression and multinomial logistic regression analysis. The results reveal several differences between serial, portfolio and first-time entrepreneurs in the areas of achievement motivation, growth intention, and situational factors behind firm start-ups. The portfolio entrepreneurs were more growth-oriented, whereas the serial entrepreneurs primarily aimed at taking advantage of the accumulated knowledge and experience.

Entrepreneurship and Development of Small-Scale Industries in Iran: Strategic Management Tools and Business Performance Assessment

-- Manjappa D Hosamane and Younos Vakil Alroaia

This paper examines the relationship between the development of Iranian Small-Scale Industries (SSIs) and entrepreneurial performance in terms of strategic management tools. SSIs have been recognized by the government as having a vital role to play in the development of an economy. SSIs could now offer highly valued expertise, goods and services, whereas larger firms were still forced to downsize due to stiff competition. However, there are five decision areas in a manufacturing plant—Quality of products, Industrial cost, Logistic support, ISO, and Management Effectiveness (QCLIM). Each factor has key decisions with various alternatives. Findings indicate that the influence of entrepreneurial performance on development of SSIs was noticeable and reflected the high quality of products, lower cost, skills management, production planning and material control in the development of Iranian SSIs. SSIs have to adopt strategic management tools to capture export market and to increase efficiency for the domestic customers.

Sustainable Entrepreneurship in Small-Scale Business: Application, Concepts and Cases

-- Viju Mathew

Sustainable entrepreneurship can be explained with reference to the enhancement and commitment towards the business integrating ethical issues, community commitment, social responsibility and other issues like economic development. Sustainable business in respect to the product and the services offered by the company, considers quality, regular improvement and innovation aspects. Being the stakeholder of the company, the concept refers to the sustainable development of business families, local communities, the society and the world at large. Small-Scale Business (SSB) units having complex and regular issues related to the stakeholders, need to have sustainable entrepreneurship with respect to business and enterprises. The case studies of the enterprises doing their business in Sultanate of Oman will reflect and give the idea of the application of sustainability and relating it with the business will create positive effect with the stakeholders developing entrepreneurial characteristics. The case study of ASB Company highlights the application of sustainability with entrepreneurial characteristic at the operational level to develop and achieve business strategy. SSB selected a simple, pragmatic and effective way that is tailored to their needs with the application. The case study offers some convincing examples.

India's Subhiksha—Aping Wal-Mart's EDLP Strategy?

-- Sheeja S

Indian grocery retailer Subhiksha's target was to open 1,200 stores by March 2008. Subhiksha has not placed itself against conventional Indian players like Nilgiris or Food World, Spencer's Daily and Big Bazaar in retail marketing, who have set up air-conditioned outlets in India. Subhiksha aims to make its powerful pricing strategy, its Unique Selling Proposition (USP) against the neighborhood grocery shops with which it competes for market space. Going by the worldwide trend, Subhiksha has been trying to avail the benefit of organized retailing by competence and economy of scale, which in turn brings down the cost to the consumer. Subhiksha believes that low margins and high turnover is better than high margins and low turnover. Subhiksha operates on thin inventories and information technology. It adopts the strategy of top retailers like Wal-Mart, of offering low unit prices to customers and the consequent high turnover which, it believes are the ways to succeed in a very competitive environment. What challenges will Subhiksha's strategy face and will the discount model suit the Indian Retail market?

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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