UNIT – V

Strategic perspectives in Entrepreneurship

Strategic growth in entrepreneurship refers to a deliberate and planned approach taken by
entrepreneurs to expand and develop their businesses in a sustainable and scalable manner. It
involves analyzing market opportunities, setting clear objectives, and implementing strategies to
achieve long-term success.

The strategic perspective is especially important as it develops the competitive mindset. With the
strategic perspective, you can develop a range of approaches to common business obstacles, such as
market penetration and brand recognition.

Strategic Growth in Entrepreneurship

Strategic growth involves developing initiatives that will help your business grow long term. An
example of strategic growth could be coming up with a new product or developing a market strategy
to target a new audience

A growth strategy gives your company purpose, and it answers questions about your long-term
plans. Growth strategies usually starts by identifying and accessing opportunities within your
market. They go beyond your business and marketing plans, which detail how you're going to meet
specific business targets.

Types of Growth Strategies

The four strategies are

 Market penetration,

 Product development,

 Market development,

 Diversification.

Components for Developing a Successful Business Growth

Strategy
Developing a growth strategy demands coordination among a cross-functional group of stakeholders;
it can’t be just a few people in a room with a whiteboard. Everyone involved should understand what
they’re working towards and why, as well as what they’re expected to bring to the process.
To be successful in your strategy, you need to consider what will significantly impact business
growth. Let’s take a look at a few:
1. Value Propositions and Business Growth Steps
provides the steps (i.e. growth moves) the company is going to make to take new things to market.
When T-Mobile U.S. came to us because there was dissatisfaction among its customers, we knew they
needed a powerful new value proposition and go-to-market strategy. Through extensive market
research, we identified a the opportunity for a wireless carrier who didn’t For a company to expand, it
needs to increase its reach with existing target customers and acquire new ones. To do this, the
company must design a value proposition that clearly states what it does and why customers need it.
Then it must create a growth strategy that act like one – the “Un-carrier.”
2. Brand Relevance and Customer Experience
Even the most recognized brands in the world started from scratch at some point. So how did they
become some of the biggest names in the market? By building relevance with customers and
delivering a distinctive and integrated customer experience. Building a brand is much more than a
logo and a color palette (although those things are important for brand recognition). Your brand
should be recognized by its values and by how customers experience you – both of which should be
highlighted in your growth strategy.
Olive Garden was already an industry leader when they came to us looking for a new way to achieve
relevance with both their current customers and new ones. What was the key? Breadsticks and family.
The development of Breadstick Nation saw the brand’s success surge as it launched new breadstick
products and experiences. And with a strategic focus on family, a new customer experience for
children was created both in the restaurant and online.
3. Thinking Long Term Business Growth
Being focused solely on the present and making snap decisions about the future is never a good idea.
Your organization needs to invest time and energy in thinking about where the world is going and
what it means for your customers, partners, employees, etc. Your growth strategy will help you make
good decisions for the future of your business, even though it might seem uncomfortable to place bets
when even the present seems uncertain.
4. Expanding into the New – Markets, Categories, Customer Segments…
Your company’s core business needs to be solid before you make big expansion moves. However,
outlining longer-term goals will help you to determine the steps you need to take and measure your
progress along the way. Think of it like a road map. Quick wins and small successes can be mile
markers guiding you toward the long-term goal of expanding into other markets, categories and/or
segments.
Furrion is a brand that was a leader in the manufacture of audiovisual equipment, appliances and
power solutions for specialty vehicles, luxury RVs, yachts and consumer industries.
With this strength behind them, they were focused on entering the home appliance market. Prophet
worked with Furrion to identify the brand purpose principles that would capture growth in this new
market, including a new visual identity, which was unveiled with great success.
5. Growing at a Pace You Can Handle
We’ve all seen it before, and we’ll see it again – companies that grow too fast and then fail because
they can’t keep up. A growth strategy will help you develop at the right pace for organization. The
last thing you want to do is overextend yourself to secure short-term gains that will eventually put too
much strain on your business and your people. It can be hard to make trade-offs, sometimes
sacrificing the exciting for the sensible, but it is sometimes necessary for the overall health of your
company. This doesn’t mean you shouldn’t take risks, but the risks you do take need to make sense in
context of the big picture.
The Valuation Challenge in Entrepreneurship
Startup valuation is a process of identifying the true worth of the firm and giving a crucial insight into
a company's potential that reveals its ability to use the new capital to grow and hit the next
milestone.
Obtaining accurate and up-to-date information can be a major roadblock. Incomplete or unreliable
data can hinder the valuation process, leading to skewed results. Diversify your data sources by
utilizing financial statements, industry reports, market research, and qualitative information from
management interviews
The main challenge for valuation professionals lies in developing a deeper understanding of market
globalization and better analytical skills, with a view to assessing accurate values.
The Final Harvest of New Ventures
The process of exiting the privately held business venture to realize the appreciated value of the
founder's and venture investor's contributions is called harvesting a venture. It is the process of
selling ownership in a privately held business venture to realize the appreciated value of venture
investors’ contributions
Methods of Harvesting a Venture
Two common harvest strategies for equity investors are to
 sell the company to another company
 To make an initial public offering (IPO) of company stock.
Reasons for Harvesting
• To maintain managerial control and succession for successful continued operations.
• To initiate a “liquidity event” that will generate a significant amount of cash for the investors.
• An IPO (initial public offering) has become a reality
• Most realistic opportunity is sale of the business
India way – Entrepreneurship
The entrepreneurial environment in India offers unique challenges. Not only does the
entrepreneur have to focus on building her product, she must also learn to navigate the
uncertainties in the business environment. In this precarious scenario, it becomes necessary to
share entrepreneurial knowledge because it is easier to learn from others’ mistakes. The
panelists began by recounting the hardships that they underwent when they set up their
companies. “The challenges are different at different stages,” V S S Mani, Founder, Just Dial,
began, “The biggest challenge was getting well-qualified people in the initial stages.” His opinion
was echoed by Hari Balasubramanian, CEO, RP Infosystems, who felt that despite having a large
pool of well educated people, it was hard to fill middle management positions. In order to retain
employees, companies have adopted different tactics – sharing in equity was one such option.
However, most Indian companies still had reservations about giving employees shares.
Changing Face of Entrepreneurship in India
Entrepreneurship in India was on a rough path. Moreover, after independence, it had a terrible impact.
However, with policies and hard work our country was able to overcome it at one point in time. Now
with an innovative mind, India is gaining dominance in the market. And entrepreneurship
Business Incubation
Business incubators are institutions that support entrepreneurs in developing their businesses,
especially in initial stages. These are organizations geared towards speeding up the growth and
success of start-ups and early stage companies. An example of a top nonprofit startup incubator is
Mass Challenge, a global organization helping early-stage companies solve some of the world's most
pressing challenges. Their program covers industries such as health and financial tech, sustainable
food, and even space commercialization, just to name a few
Role of Business Incubation
An incubator is an organization designed to help startup businesses grow and succeed by providing
free or low-cost workspace, mentorship, expertise, access to investors, and in some cases, working
capital in the form of a loan. You'll work around other entrepreneurial businesses, often with a similar
focus as yours.
Its action process is divided into four phases:
 Selection. Incubators open calls for entrepreneurs to present their business ideas. ...
 Pre-incubation. ...
 Incubation. ...
 Post-incubation.

Women Entrepreneurs
Women Entrepreneurs means the women or a group of women who initiate, organize and operate a
business enterprise. A woman entrepreneur is therefore a confident, creative and innovative
woman. desiring economic independence individually and simultaneously creating employment.
opportunities for others
Women makes excellent entrepreneurs they tend to be good multi tasking deftly handling business
and home.
Strategies to develop Women Entrepreneurs
The following efforts can be made to promote the development of women entrepreneurs in the
country
1. Encouraging Home-based Businesses – By operating her business from home, a woman can
coordinate her household and business responsibilities more easily, and be on the path to achieving
work-life balance
2. Widespread Business Education – Workshops, counselling services, vocational training seminars,
and conferences should be organised frequently for women entrepreneurs.
3. Better Financial Assistance – A separate and independent bank for women along the lines of
Venezuela’s Women’s Development Bank (WDB) should be established in our country to provide
low-interest loans to women
4. Wider Access to Technology – Women entrepreneurs should acquire relevant training in the use of
technology and in the functioning of their plant and machinery. Effective and efficient use of
technology such as the internet can help them acquire information a bout the variety, range, and
quality of competing products.
CHALLENGES FACED BY WOMEN INTREPRENEOURS
The challenges that women entrepreneurs face extend to the different environments that they
operate in. The overall context of women’s. Entrepreneurship development can be described in the
form of the following three different spheres
1. Microsphere – Women intrepreneours operating in a microsphere are mainly confined to the local
environment and obliged to live close to the family
2. Mesosphere – Women entrepreneurs operating in the mesosphere work at a regional or national
level. There are a large number of organizations involved in implementing policies and programmes
as well as in providing support services to entrepreneurs operating within the mesosphere. However,
for a variety of reasons, many of these organizations tent to act as barriers when it comes to providing
assistance to women entrepreneurs operating within thins environment
3. Macrosphere – Women entrepreneurs operating in the microsphere find themselves working at a
global level. The macro-environment within which they develop and grow comprises many
interconnecting structures and dynamics, such as laws and regulations, economy, international trade,
market liberalization and globalization, availability of finance and credit, labour market, human
capital resource, technology, physical infrastructure, and natural resources
INSTITUTIONS SUPPORTING WOMEN ENTREPRENEURS IN INDIA
There are various institutions in India that are devoted to promoting women’s
entrepreneurship.
1. Consortium of women entrepreneurs of India (CWEI) – CWEI is a registered civil society and a
voluntary organization that works for the economic empowerment of women in India and all over the
world, and aims to eradicate poverty and unemployment among women.
2. Federation of Indian Women Entrepreneurs (FIWE) – FIWE was founded in 1993 following the
decisions taken at the Fourth International Conferences of Women Entrepreneurs held in Hyderabad
in December.
3. FICCI Ladies Organization (FLO) – FLO is the women’s wing of the Federation of Indian
Chambers of Commerce and industry (FICCI) – the apex body of industry and commerce in India.
FLO was formed in 1983 as a national level forum for women with the objective of “women’s
empowerment”.
4. Women’s Inda Trust (WIT) – In 1968, Kamila Tyabji, a lawyer by profession, founded a charitable
organization, Women’s India Trust (WIT), in Mumbai.
5. Association of Women Entrepreneurs of Karnataka (AWAKE) – AWAKE was established in
December 1983 by seven enterprising women; Madhura Chatrapathy, Kiran Majumbdar, Lekha
Chand, Shandrila Naidu, Indrajeet Sahani, Aban Minochar, and Supanya Datta.
6.SPECIAL BANK SCHEMES PROMOTING WOMEN’S ENTREPRENEOURSHIP
Almost all public – sector banks have special loan schemes for women entrepreneurs. Table
3.2 lists the special schemes available with banks for promoting women’s entrepreneurship.